IBP ISABELA CHAPTER

THE LEGAL CLASH

Season 02
October 01, 2022, 1:30 PM
Isabela Convention Center (ICON),
Cauayan City, Isabela

PART I QUESTIONS (2 PTS EACH)

This refers to a special contract whose nature, consequences, and incidents

are governed by law and generally not subject to stipulation except on
property relations.

(Ans: Marriage. Article 1, Family Code)

II

Grave abuse of discretion is characterized by the following EXCEPT:

a. The capricious or whimsical exercise of judgment as is equivalent

to lack of jurisdiction.

b. An arbitrary exercise of power due to passion, prejudice, or

personal hostility.

c. An error of judgment.

d. A gross abuse of discretion that amounts to an evasion of a

positive duty.

e. None of the above.

Ans: C.

As held in Toh vs. CA, G.R. No. 140274, November 15, 2000 , “we have set
a clear demarcation line between error of judgment and error of

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jurisdiction. An error of judgment is one which the court may commit in the
exercise of its jurisdiction, and which error is reviewable only by an appeal,
while an error of jurisdiction is one where the act complained of was issued
by the court officer or a quasi-judicial body without or in excess of
jurisdiction, or with grave abuse of discretion which is tantamount to lack
or in excess of jurisdiction, and which error is correctable only by the
extraordinary writ of certiorari.”

Grave abuse of discretion implies such capricious and whimsical

exercise of judgment as is equivalent to lack of jurisdiction, or in other
words, where the power is exercised in an arbitrary manner by reason of
passion or personal hostility, and it must be so patent or gross as to
amount to an evasion of positive duty or to a virtual refusal to perform
the duty enjoined or to act at all in contemplation of law (Nicolas De Baron
vs. CA, G.R. No. 140719, October 26, 2001).

An error of judgment committed by a court in the exercise of its

legitimate jurisdiction is not the same as "grave abuse of discretion"
(Palma vs. Q&S Inc., G.R. No. L-20366, May 19, 1966).

III

This is defined under Article 134 – A of the Revised Penal Code as a swift
attack accompanied by violence, intimidation, threat, strategy, or stealth
directed against duly constituted authorities of the Republic of the
Philippines, or any military camp or installation, communication networks,
public utilities or other facilities needed for the exercise and continued
possession of power, singly or simultaneously carried out anywhere in the
Philippines by any person or persons , belonging to the military or police or
holding any public office or employment, with or without civilian support or
participation, for the purpose of seizing or diminishing state power.

Ans: coup d’ etat (Article 134 – A, RPC)

IV

Which of the following statements best describes the Archipelagic Doctrine

under the 1987 Constitution?

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a. The waters around, between, and connecting the islands of the
Philippines form part of its territorial sea.
b. The waters around, between, and connecting the islands of the
Philippines form part of its internal waters.
c. The waters around, between, and connecting the islands of the
Philippines form part of its exclusive economic zone.
d. The waters around, between, and connecting the islands of the
Philippines form part of its submarine areas.

Ans: B.

The Archipelagic Doctrine provides that the waters around, between, and
connecting the islands of the archipelago, regardless of their breadth and
dimensions, form part of the internal waters of the Philippines as found
in Article I, 1987 Constitution of the Philippines.

The archipelagic doctrine is embodied in Article I of the 1987

Constitution which provides:

The national territory comprises the Philippine archipelago, with all

the islands and waters embraced therein, and all other territories
over which the Philippines has sovereignty or jurisdiction, consisting
of its terrestrial, fluvial, and aerial domains, including its territorial
sea, the seabed, the subsoil, the insular shelves, and other
submarine areas. The waters around, between, and connecting the
islands of the archipelago, regardless of their breadth and
dimensions, form part of the internal waters of the Philippines.

(Republic vs. Provincial Government of Palawan, G.R. No. 170867,

December 04, 2018)

Under the Revised Corporation Code of the Philippines (RA No. 11232), a
corporation may exist for how many number of years?
A. 50 years
B. 50 years and could extend further for not exceeding 50 years
C. perpetual existence
D. perpetual existence unless its articles of incorporation provides
otherwise.

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Ans: D.

REPUBLIC ACT NO. 11232

AN ACT PROVIDING FOR THE REVISED CORPORATION CODE OF
THE PHILIPPINES
(Revised Corporation Code of the Philippines)

SEC. 11. Corporate Term. – A corporation shall have perpetual existence

unless its articles of incorporation provides otherwise.
Corporations with certificates of incorporation issued prior to the effectivity
of this Code, and which continue to exist, shall have perpetual existence,
unless the corporation, upon a vote of its stockholders representing a
majority of its outstanding capital stock, notifies the Commission that it
elects to retain its specific corporate term pursuant to its articles of
incorporation: Provided, That any change in the corporate term under this
section is without prejudice to the appraisal right of dissenting stockholders
in accordance with the provisions of this Code.
A corporate term for a specific period may be extended or shortened by
amending the articles of incorporation: Provided, That no extension may be
made earlier than three (3) years prior to the original or subsequent expiry
date(s) unless there are justifiable reasons for an earlier extension as may
be determined by the Commission: Provided, further, That such extension
of the corporate term shall take effect only on the day following the
original or subsequent expiry date(s).
A corporation whose term has expired may apply for a revival of its
corporate existence, together with all the rights and privileges under its
certificate of incorporation and subject to all of its duties, debts and
liabilities existing prior to its revival. Upon approval by the Commission, the
corporation shall be deemed revived and a certificate of revival of
corporate existence shall be issued, giving it perpetual existence, unless its
application for revival provides otherwise.
No application for revival of certificate of incorporation of banks, banking
and quasi-banking institutions, preneed, insurance and trust companies,
non-stock savings and loan associations (NSSLAs), pawnshops,
corporations engaged in money service business, and other financial
intermediaries shall be approved by the Commission unless accompanied
by a favorable recommendation of the appropriate government agency.

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R.A. 11232 or the Revised Corporation Code of the Philippines, which took
effect on February 23, 2019, now grants all corporations perpetual
existence, unless its articles of incorporation otherwise provides
(First Philippine Holdings Corp. vs. SEC, G.R. No. 206673, July 28, 2020).

VI

In probate proceedings, this is the authority to be issued by the court when

a will issued by a decedent has been proved and allowed and that the
executor named therein is competent, accepts the trusts, and gives the
bond as required by the Rules of Court.

a. Letters of Administration c. Letters Testamentary

b. Letters of Management d. Letters Probate

Ans: C. (When a will has been proved and allowed, the court shall issue
letters testamentary thereon to the person named as executor therein,
if he is competent, accepts the trust, and gives bond as required by these
Rules. Section 4, Rule 78, Rules of Court) (2 pts.)

VII

Atty. AAA is the lawyer of BBB in a pending civil case entitled “BBB vs.
CCC.” Later, Atty. AAA accepted and represented CCC as his client in
another pending but totally unrelated administrative case entitled “CCC vs.
BBB.” Did Atty. AAA represent conflicting interest?

a. Yes, Atty. AAA is duty-bound to fight for an issue or claim on behalf of

one client and, at the same time, to oppose that claim for the other
client.

b. Yes, Atty. AAA would be called upon in the new relation to use against a
former client any confidential information acquired through their
connection or previous employment.

c. Yes, Atty. AAA’s acceptance of the new relation would prevent the full
discharge of the lawyer's duty of undivided fidelity and loyalty to the
client.

d. No, the cases are totally unrelated to each other.

Answer: C.

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The representation of opposing clients in both cases, though unrelated,
obviously constitutes conflict of interest or, at the least, invites suspicion of
double-dealing. The proscription against representation of conflicting
interests applies to a situation where the opposing parties are present
clients in the same action or in an unrelated action. It is of no moment that
the lawyer would not be called upon to contend for one client that which
the lawyer has to oppose for the other client, or that there would be no
occasion to use the confidential information acquired from one to the
disadvantage of the other as the two actions are wholly unrelated. It is
enough that the opposing parties in one case, one of whom would lose the
suit, are present clients and the nature or conditions of the lawyer's
respective retainers with each of them would affect the performance of the
duty of undivided fidelity to both clients (Quiambao vs. Atty. Bamba, A.C.
No. 6708, August 25, 2005).

VIII

In examination of witnesses during trial, this refers to a question which

assumes as true a fact not yet established to by the witness, or contrary to
that which he has previously stated.

(Ans: Misleading Question. Rule 132, Section 10, 2019 Amendments

to the 1989 Revised Rules on Evidence).

IX

The following are core international human rights treaties, EXCEPT one:

A. International Covenant on Civil and Political Rights (“ICCPR”);

B. Declaration on the Elimination of Violence against Women (“DEVW”);
C. International Covenant on Economic, Social, and Cultural Rights
(“ICESR”);
D. Convention against Torture and Other Cruel, Inhuman, or Degrading
Treatment or Punishment (“CAT”)

Answer: B (The core treaty is the Convention on the Elimination of All

Forms of Discrimination Against Women or “CEDAW”, not the Declaration
on the Elimination of Violence against Women or “DEVW”) (source:
https://www.unfpa.org/resources/core-international-human-rights-
instruments#:~:text=Treaty%20bodies&text=Committee%20on
%20Economic%2C%20Social%20and,Committee%20Against%20Torture

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%20(CAT) ; also, https://unimelb.libguides.com/c.php?
g=472270&p=3230658#s-lg-box-wrapper-11918280

Where the Supreme Court en banc is equally divided in opinion or the

majority vote required by the Constitution for annulling any treaty,
international or executive agreement, law, presidential decree,
proclamation order, instruction, ordinance, or regulation cannot be had, the
Court is bound to deliberate on the case anew. If after such deliberation
still no decision is reached, the Court shall:

a. Deny the challenge to the constitutionality of the act.

b. Grant the challenge to the constitutionality of the act.
c. Deliberate on the case anew until the required vote is reached.
d. Call the case again and deliberate on the same after six months.
e. None of the above.

Ans: A.

Where the Court en banc is equally divided in opinion or the majority vote
required by the Constitution for annulling any treaty, international or
executive agreement, law, presidential decree, proclamation, order,
instruction, ordinance, or regulation cannot be had, the Court shall
deliberate on the case anew. If after such deliberation still no decision is
reached, the Court shall deny the challenge to the constitutionality
of the act (Rule 12, Sec. 2, par. d, of A.M. No. 10-4-20-SC (Revised),
March 12, 2013, or the Internal Rules of the Supreme Court).

XI

In Bayot vs. Court of Appeals (G.R No. 155635 dated 07 November

2008), the following legal premises in the recognition of foreign divorce in
the Philippines were enunciated, EXCEPT:

a.) A divorce obtained by an alien married to a Philippine national may be

recognized in the Philippines, provided the decree of divorce is valid
according to the national law of the foreigner;
b.) The reckoning point is not the citizenship of the divorcing parties at
birth or at the time of marriage, but their citizenship at the time a
valid divorce is obtained abroad.

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c.) A divorce thereafter validly obtained abroad by alien spouse
capacitating him or her to marry is to avoid absurd situation where the
Filipino spouse remains married to the alien spouse who is no longer
considered the spouse of the Filipino after the divorce.
d.) An absolute divorce secured by a Filipino married to another Filipino is
contrary to our concept of public policy and morality and shall not be
recognized in this jurisdiction.

Ans: C.

Three legal premises need to be underscored at the outset. First, a divorce

obtained abroad by an alien married to a Philippine national may be
recognized in the Philippines, provided the decree of divorce is valid
according to the national law of the foreigner.[31] Second, the reckoning
point is not the citizenship of the divorcing parties at birth or at the time of
marriage, but their citizenship at the time a valid divorce is obtained
abroad. And third, an absolute divorce secured by a Filipino married to
another Filipino is contrary to our concept of public policy and morality and
shall not be recognized in this jurisdiction.

Records of the proceedings of the Family Code deliberations showed that

the intent of Paragraph 2 of Article 26, according to Judge Alicia Sempio-
Diy, a member of the Civil Code Revision Committee, is to avoid the absurd
situation where the Filipino spouse remains married to the alien spouse
who, after obtaining a divorce, is no longer married to the Filipino spouse
(G.R. NO. 154380, October 05, 2005, REPUBLIC OF THE PHILIPPINES,
PETITIONER, VS. CIPRIANO ORBECIDO III; G.R. No. 221029, April 24,
2018
REPUBLIC OF THE PHILIPPINES, PETITIONER, V. MARELYN TANEDO
MANALO).

XII

Possession of dangerous drugs is defined and penalized under what section

of RA 9165 as further amended by RA 1064s0?

Ans : Section 11

XIII

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Question: Under the Philippine Mining Act and current environmental laws
and regulations, a foreign corporation (i.e., more than 50% foreign equity)
is deemed qualified to hold these, EXCEPT one:
A. Mineral Production Sharing Agreement (“MPSA”);
B. Exploration Permit (“EP”);
C. Financial or Technical Assistance Agreement (“FTAA”);
D. Mineral Processing Permit (“MPP”)

Answer: A (Mineral Production Sharing Agreements and Mineral

Agreements are restricted to Filipino individuals, or companies at least 60%
of the outstanding capital stock of which is owned by Filipinos or Philippine
companies. A foreign company cannot hold an MPSA.)

A legally organized foreign-owned corporation shall be deemed a

qualified person for purposes of granting an exploration permit,
financial or technical assistance agreement, or mineral processing
permit (RA 7942, Sec. 3, par. aq). MPSA is not included.

XIV

This is defined under Calalang vs. Williams, G.R. No. 47800, December 2,
1940 as neither communism, nor despotism, nor atomism, nor anarchy,
but the humanization of laws and the equalization of social and economic
forces by the State so that justice in its rational and objectively secular
conception may at least be approximated.
Ans: Social Justice

XV

As found in Section 3, Rule 1 of the 2019 Amendments to the 1997 Rules

of Civil Procedure, this refers to a remedy by which a party seeks to
establish a status, a right, or a particular fact.

Ans: Special Proceeding

PART II QUESTIONS (3 pts each)

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Which of the following is NOT considered as an Abuse of Dominant
Position under Section 15 of the Philippine Competition Act (RA
10667)?

a. Price Fixing
b. Predatory Pricing
c. Imposing Barriers to Entry
d. Discriminatory Pricing
ANSWER: A

Price Fixing is considered an Anticompetitive Agreement under Section 14

of the PCA (Fixing price at an auction or in any form of bidding including
cover bidding, bid suppression, bid rotation and market allocation and
other analogous practices of bid manipulation).
Predatory pricing is selling goods or services below cost with the object of
driving competition out of the relevant market. It is an act of abuse of
dominant position.
Imposing barriers to entry or committing acts that prevent competitors
from growing within the market in an anti-competitive manner is an act of
abuse of dominant position.
Setting prices or other terms or conditions that discriminate unreasonably
between customers or sellers of the same goods or services, where such
customers or sellers are contemporaneously trading on similar terms and
conditions, where the effect may be to lessen competition substantially is
an act of abuse of dominant position.

II

At present, the National President and the Executive Vice President (EVP)
of the Integrated Bar of the Philippines (IBP) are determined in what
manner?

a. The IBP President is elected by the Board of Governors-IBP, while the

automatic succession rule determines who will serve as EVP-IBP.

b. The IBP President is elected by the Board of Governors-IBP, while the

rotation rule determines who will serve as EVP-IBP.
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c. The automatic succession rule determines who will serve as the
President and the EVP of the IBP.

d. The EVP-IBP is elected by the Board of Governors-IBP, while the

automatic succession rule determines who will serve as IBP President.

e. Both the President and the EVP of the IBP are elected by the Board of
Governors-IBP.

Answer: D. (3 pts.)

Stress should be placed on the automatic succession of the EVP to

the position of the president. Surprisingly, the automatic succession
does not appear in present Section 47, as ordered amended by the Court in
the December 14, 2010 Resolution. It should be restored. Accordingly,
Section 47 and Section 49, Article VII, are recommended to read as
follows:

Sec. 47, IBP-By laws: Election of National President Executive Vice

President. – The Integrated Bar of the Philippines shall have a
President, an Executive Vice President, and nine (9) regional
Governors. The Governors shall be ex-officio Vice President for their
respective regions.

The Board of Governors shall elect the President and Executive

Vice President from among themselves each by a vote of at least
five (5) Governors. Upon expiration of the term of the
President, the Executive Vice-President shall automatically
succeed as President.

Each region, as enumerated under Section 3, Rule 139-A of the Rules

of Court, shall have the opportunity to have its representative
elected as Executive Vice-President, provided that, the election
for the position of Executive Vice President shall be on a strict
rotation by exclusion basis. A region, whose representative has just
been elected as Executive Vice President, can no longer have its
representative elected for the same position in subsequent elections
until after all regions have had the opportunity to be elected as such.
At the end of the rotational cycle, all regions, except the region
whose representative has just served the immediately preceding
term, may be elected for another term as Executive Vice-President in
the new rotational cycle. The region whose representative served last
in the previous rotational cycle may be elected Executive Vice-

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 President only after the first term of the new rotational cycle ends,
subject once more to the rule on exclusion.

The order of rotation by exclusion shall be without prejudice to the

regions entering into a consensus to adopt any pre-ordained
sequence in the new rotation cycle provided each region will have its
turn in the rotation.

A violation of the rotation rule in any election shall be penalized by

annulment of the election and disqualification of the offender from
election or appointment to any office in the IBP.

(A.M. No. 09-5-2-SC, April 11, 2013)

n.b. The rotation rule in the national level applies in the position of EVP-
IBP. It means that the election for the position of EVP-IBP shall be on a
strict rotation by exclusion basis to the effect that all the nine (9) IBP
regions should be able to have an EVP-IBP per rotation cycle. The rotation
rule in the position of IBP President is just an offshoot of the automatic
succession rule – the EVP-IBP automatically succeeds the presidency after
expiration of the incumbent president’s term. Thus, the rotation rule
actually operates in the position of EVP-IBP, not in the position of IBP
presidency.

III

Julienne, the guardian of Jeanine, sold the latter’s property without her
consent in the amount of 700k instead of 1M. Thus, the ward suffered
lesion by more than ¼ of the value of the property. What is the status of
the contract?

a.) Unenforceable
b.) Rescissible
c.) Voidable
d.) Void

Ans: A. (3 pts.)

Art. 1403, Civil Code of the Philippines (CCP) provides:

The following contracts are unenforceable, unless they are ratified:

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 (1) Those entered into in the name of another person by one who
has been given no authority or legal representation, or who has
acted beyond his powers.

The sale was without the consent of the ward.

(i.e., ART. 1381. The following
Thus, it is not Art. 1381, CCP on rescissible contracts
contracts are rescissible: (1) Those which are entered into by guardians whenever the wards whom they represent suffer lesion

by more than one-fourth of the value of the things which are the object thereof; x x x)
which applies.

It is not Art. 1390, CCP on voidable contracts, which presupposes that one
of the contracting parties gave consent but is incapable of giving so or that
consent was given but it was vitiated, which applies.

It is not Art. 1409, CCP on void contracts which applies as the subject
contract does not appear as one of the void contracts enumerated in the
said article.

The selling of the property of the ward is an act of ownership which is

beyond the power of a guardian, thus unenforceable under Art 1403 (1).
What contracts covered by Art. 1381 (1) are contracts entered into by the
guardian exercising acts of administration only.

IV

In a plea bargaining for drug cases allowed under A.M. No. 18 – 03 – 16 –

SC, what is the first step that the trial court should do if the prosecution
objects to the plea bargaining proposal of the accused and the objection is
due to the accused having undergone rehabilitation but had a relapse?

a. Deny the plea bargaining proposal and order the continuation of the
criminal proceedings.

b. Overrule the objection of the prosecution on the ground that the plea
bargaining is allowed under the guidelines of the Supreme Court even if
it is inconsistent under an internal rule of the Department of Justice.

c. Overrule the objection of the prosecution on the ground that the plea
bargaining is a matter addressed entirely to the sound discretion of the
court.

d. Calendar the hearing on the prosecution’s objection and rule on the

merits thereof.

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 (Ans: D. The court shall not allow plea bargaining if the objection to the
plea bargaining is valid and supported by evidence to the effect that the
offender xxx has undergone rehabilitation but has a relapse. If the
prosecution objects to the accused’s plea bargaining due to the xxx
above circumstance xxx, the trial court is mandated to hear the
prosecution’s objection and rule on the merits thereof. If the
trial court finds the objection meritorious, it shall order the continuation
of the criminal proceedings. People v. Montierro, (G.R No.
254564), Baldadera v. People (G.R. No. 254564); and Re: Letter of the
Philippine Judges Association Expressing its Concern over the
Ramifications of the Decisions in G.R. No. 247575 and G.R. No.
250295  (A.M. No. 21-07-16-SC) as found in the Media Release issued by
the Supreme Court on July 28 2022 entitled “SC Provides Clarificatory
Guidelines on Plea-Bargaining in Drug Cases) (3 pts.)

Source: https://sc.judiciary.gov.ph/28879/

Holding that plea bargaining in the prosecution of drugs cases goes into
the very matters of fundamental constitutional rights, the Court resolved to
clarify the guidelines it earlier issued in A.M. No. 18-03-16-SC, dated April
10, 2018. Hence, while the Supreme Court takes judicial notice of the
DOJ’s efforts to amend DOJ Circular No. 27 to conform with the Plea
Bargaining Framework in Drugs Cases, the Court nevertheless issues the
following guidelines for the guidance of both the Bench and the Bar:

1. Offers for plea bargaining must be initiated in writing by way of a formal

written motion filed by the accused in court.

2. The lesser offense which the accused proposes to plead guilty to must
necessarily be included in the offense charged.

3. Upon receipt of the proposal for plea bargaining that is compliant with
the provisions of the Court’s Plea Bargaining Framework in Drugs Cases,
the judge shall order that a drug dependency assessment be
administered. If the accused admits drug use, or denies it but is found
positive after a drug dependency test, then he/she shall undergo
treatment and rehabilitation for a period of not less than six (6) months.
Said period shall be credited to his/her penalty and the period of his/her
after-care and follow-up program if the penalty is still unserved. If the
accused is found negative for drug use/dependency, then he/she will be
released on time served, otherwise, he/she will serve his/her sentence
in jail minus the counselling period at the rehabilitation center.

4. As a rule, plea bargaining requires the mutual agreement of the parties

and remains subject to the approval of the court. Regardless of the
mutual agreement of the parties, the acceptance of the offer to plead

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 guilty to a lesser offense is not demandable by the accused as a matter
of right but is a matter addressed entirely to the sound discretion of the
court.

Though the prosecution and the defense may agree to enter into a plea
bargain, it does not follow that the courts will automatically approve the
proposal. Judges must still exercise sound discretion in granting or
denying plea bargaining, taking into account the relevant circumstances,
including the character of the accused.

5. The court shall not allow plea bargaining if the objection to the plea
bargaining is valid and supported by evidence to the effect that:

a. the offender is a recidivist, habitual offender, known in the

community as a drug addict and a troublemaker, has undergone
rehabilitation but had a relapse, or has been charged many times; or
b. when the evidence of guilt is strong.

2. Plea bargaining in drugs cases shall not be allowed when the proposed
plea bargain does not conform to the Court-issued Plea Bargaining
Framework in Drugs Cases.

3. Judges may overrule the objection of the prosecution if it is based solely

on the ground that the accused’s plea bargaining proposal is
inconsistent with the acceptable plea bargain under any internal rules or
guidelines of the DOJ, though in accordance with the plea bargaining
framework issued by the Court, if any.

4. If the prosecution objects to the accused’s plea bargaining

proposal due to the circumstances enumerated in item no. 5,
the trial court is mandated to hear the prosecution’s objection
and rule on the merits thereof. If the trial court finds the objection
meritorious, it shall order the continuation of the criminal proceedings.

5. If an accused applies for probation in offenses punishable under RA No.

9165, other than for illegal drug trafficking or pushing under Section 5 in
relation to Section 24 thereof, then the law on probation shall apply.

In labor law, which of the following factors in determining the

appropriate collective bargaining unit presents the Globe
doctrine?

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a. Similarity of employment status.
b. Prior collective bargaining history.
c. Affinity and unity of employees' interest.
d. The will of the employees.

Answer: D. The will of the employees (Democratic Labor Association vs.

Cebu Stevedoring Co., G.R. No. L-10321, February 28, 1958).

VI

6. Under Republic Act No. 11057 (PPSA), the following collaterals for loans
shall be registered in a centralized notice registry, EXCEPT:

a.) Aircraft vehicles

b.) Motor vehicles
c.) Intellectual property rights
d.) Equipment

Ans: A. (3 pts.)

RA 11057 shall apply to all transactions of any form that secure an

obligation with movable collateral, except interests in aircrafts subject
to Republic Act No. 9497, or the "Civil Aviation Authority Act of
2008", and interests in ships subject to Presidential Decree No. 1521, or
the "Ship Mortgage Decree of 1978" (RA 11057, Sec. 4). It is the Civil
Aviation Authority which has the sole authority to register aircraft and
liens, mortgages, or other interests in aircraft or aircraft engines (RA 9497,
Sec. 43).

VII

The insurer issued a comprehensive commercial vehicle policy to the

insured’s vehicle. The insured prepared the check for the payment of
premium and other charges on the policies. However, the insurer was not
able to pick up the check on the agreed date. Later on, at night, the said
vehicle was stolen. The following day, the insurer’s agent picked up the
check and issued an official receipt. The insured filed a claim but insurer
denied the claim on the ground that there was no insurance contract. Is
the insurer liable?

A. Yes, the payment of the premium has been made to the agent of the
insurer.

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 B. No, the check has not been cleared yet. Tender or payment not been
made.
C. Yes, there is no stipulation in the contract that check payment is not
accepted.
D. No, the insurance policy, unless the premium is paid, is not valid and
binding.

Ans: D. ( 3pts.)
Jaime T. Gaisano vs. Development Insurance, GR No. 190702,
February 27, 2017
Here, there is no dispute that the check was delivered to and was accepted
by respondent's agent, Trans-Pacific, only on September 28, 1996. No
payment of premium had thus been made at the time of the loss of the
vehicle on September 27, 1996.
While petitioner claims that Trans-Pacific was informed that the check was
ready for pick-up on September 27, 1996, the notice of the availability of
the check, by itself, does not produce the effect of payment of the
premium.
Trans-Pacific could not be considered in delay in accepting the check
because when it informed petitioner that it will only be able to pick-up the
check the next day, petitioner did not protest to this, but instead allowed
Trans-Pacific to do so. Thus, at the time of loss, there was no payment of
premium yet to make the insurance policy effective.

xxx
In UCPB General Insurance Co., Inc., we summarized the exceptions as
follows: (1) in case of life or industrial life policy, whenever the grace
period provision applies, as expressly provided by Section 77 itself; (2)
where the insurer acknowledged in the policy or contract of insurance itself
the receipt of premium, even if premium has not been actually paid, as
expressly provided by Section 78 itself; (3) where the parties agreed that
premium payment shall be in installments and partial payment has been
made at the time of loss, as held in Makati Tuscany Condominium Corp. v.
Court of Appeals;[53] (4) where the insurer granted the insured a credit
term for the payment of the premium, and loss occurs before the
expiration of the term, as held in Makati Tuscany Condominium Corp.; and
(5) where the insurer is in estoppel as when it has consistently granted a
60 to 90-day credit term for the payment of premiums.

The insurance policy in question does not fall under the first to third
exceptions laid out in UCPB General Insurance Co., Inc.: (1) the policy is
not a life or industrial life policy; (2) the policy does not contain an
17
acknowledgment of the receipt of premium but merely a statement of
account on its face;[54] and (3) no payment of an installment was made at
the time of loss on September 27.

Petitioner argues that his case falls under the fourth and fifth exceptions
because the parties intended the contract of insurance to be immediately
effective upon issuance, despite non-payment of the premium. This waiver
to a pre-payment in full of the premium places respondent in estoppel.

We do not agree with petitioner.

The fourth and fifth exceptions to Section 77 operate under the facts
obtaining in Makati Tuscany Condominium Corp. and UCPB General
Insurance Co., Inc. Both contemplate situations where the insurers have
consistently granted the insured a credit extension or term for the payment
of the premium. Here, however, petitioner failed to establish the fact of a
grant by respondent of a credit term in his favor, or that the grant has
been consistent. While there was mention of a credit agreement between
Trans-Pacific and respondent, such arrangement was not proven and was
internal between agent and principal.[55] Under the principle of relativity
of contracts, contracts bind the parties who entered into it. It cannot favor
or prejudice a third person, even if he is aware of the contract and has
acted with knowledge.[56]

Thus, we find that petitioner is not entitled to the insurance

proceeds because no insurance policy became effective for lack of
premium payment.

VIII

On July 1, 2022, the plaintiff filed a case of unlawful detainer against the
defendant before the Municipal Trial Court of XXX, Isabela. Summons was
received by the defendant on July 15, 2022 giving him thirty calendar days
to file his Answer. The period given to the defendant to file Answer has
lapsed without him filing his Answer or any motion for extension. On
September 16, 2022, the Municipal Trial Court of XXX, Isabela immediately
rendered judgment against the defendant by granting the reliefs prayed for
the plaintiff. Is the Municipal Trial Court correct?

18
 a. Yes, the court may motu proprio render a judgment in a case covered
by Rules on Summary Procedure if the defendant fails to timely file an
Answer.

b. No, the plaintiff should have first filed a motion for rendition of
judgment on the ground that the defendant fails to timely file an
Answer.

c. No, the plaintiff should have first filed a motion to declare the
defendant on default and allow the plaintiff to present evidence ex-
parte.

d. Yes, but the defendant may question the rendition of the judgment
via a petition for certiorari under Rule 65 of the Rules of Court.

e. No, the court should have calendared the case for preliminary
conference considering that there is no default in cases covered by the
Rules on Summary Procedure,

Ans: A. (3 pts.)

Should the defendant fail to answer the complaint within the period
given, the court, on its own initiative, or upon manifestation of the
plaintiff that the period for filing answer has already lapsed, shall render
judgment as may be warranted by the facts alleged in the complaint
and its attachments, limited to what is prayed for therein. A.M. No. 08 –
8 – 7 – SC, Rules on Expedited Procedures in the First Level Courts
which took effect on 11 April 2022).

IX

This doctrine provides that the employees cannot revoke the validly
executed collective bargaining contract with their employer by the simple
expedient of changing their bargaining agent.

a. Surface bargaining
b. Successor-employer doctrine
c. Principle of codetermination
d. Runaway shop
e. Substitutionary doctrine

Answer: E. Substitutionary doctrine (Benguet Consolidated vs. BCI

Employees, G.R. No. L-24711, April 30, 1968).

19
Surface bargaining is defined as “going through the motions of negotiating”
without any legal intent to reach an agreement. The resolution of surface
bargaining allegations never presents an easy issue. The determination of
whether a party has engaged in unlawful surface bargaining is usually a
difficult one because it involves, at bottom, a question of the intent of the
party in question, and usually such intent can only be inferred from the
totality of the challenged party’s conduct both at and away from the
bargaining table. It involves the question of whether an employer’s conduct
demonstrates an unwillingness to bargain in good faith or is merely hard
bargaining (Standard Chartered Bank Employees vs. Nieves Confesor,
114974, June 16, 2004).

Successor-employer doctrine involves a transfer of ownership of the

business to a new employer. Where the change of ownership is in bad faith
or is used to defeat the rights of labor, the successor-employer is deemed
to have absorbed the employees and is held liable for the transgressions of
his or her predecessor (PAL vs. NLRC, 125792, November 09, 1998).

The principle of codetermination grants to the workers the right to

participate in policy and decision-making processes affecting their rights
and benefits (Art. 255, Labor Code).

Runaway shop is defined as an industrial plant moved by its owners from

one location to another to escape union labor regulations or state laws, but
the term is also used to describe a plant removed to a new location in
order to discriminate against employees at the old plant because of their
union activities. It is one wherein the employer moves its business to
another location or it temporarily closes its business for anti-union
purposes. A “runaway shop” in this sense, is a relocation motivated by anti-
union animus rather than for business reasons (Complex Electronics vs.
NLRC, G.R. No. 121315, July 19, 1999).

When is the “one-year bar rule” reckoned in impeachment cases filed

before the House of Representatives?

a. Filing of a complaint before the House of Representatives.

b. Filing of a complaint before the House of Representatives and the
referral of the same to the proper committee.
c. Transmittal of the Articles of Impeachment by the House of
Representatives to the Senate.
d. Referral of the proper committee to the plenary.

20
Ans: B. The case of Gutierrez vs. House of Representatives Committee on
Justice, G.R. No. 193459, February 15, 2011 (citing Francisco, Jr. vs. House
of Representatives, G.R. No. 160261, November 10, 2003) provides that:

“The proceeding is initiated or begins when a verified

complaint is filed and referred to the Committee on Justice
for action. This is the initiating step which triggers the series of
steps that follow.

xxx

From the records of the Constitutional Commission, to the amicus

curiae briefs of two former Constitutional Commissioners, it is without
a doubt that the term "to initiate" refers to the filing of the
impeachment complaint coupled with Congress' taking initial
action of said complaint.

xxx

Once an impeachment has been initiated, another impeachment

complaint may not be filed against the same official within a one year
period.”

XI

A natural person who will serve as rehabilitation receiver should have the
following minimum qualifications, EXCEPT:

A. A citizen of the Philippines or a resident of the Philippines in the six (6)

months immediately preceding his nomination;

B. It is duly authorized to do business in the Philippines for at least six (6)

years prior to appointment and of good standing as certified by the
appropriate regulatory agency/ies;

C. Of good moral character and with acknowledged integrity, impartiality,

and independence

D. Has the requisite knowledge of insolvency and other relevant

commercial laws, rules and procedures, as well as the relevant training
and/or experience that may be necessary to enable him to properly
discharge the duties and obligations of a rehabilitation receiver

21
E. Has no conflict of interest, provided, that such conflict of interest may
be waived, expressly or impliedly, by a party who may be prejudiced
thereby.

Ans: B.

REPUBLIC ACT No. 10142

AN ACT PROVIDING FOR THE REHABILITATION OR LIQUIDATION
OF FINANCIALLY DISTRESSED ENTERPRISES AND INDIVIDUALS
(Financial Rehabilitation and Insolvency Act (FRIA) of 2010)

Section 29.Qualifications of a Rehabilitation Receiver.  - The rehabilitation

receiver shall have the following minimum qualifications:

(a)A citizen of the Philippines or a resident of the Philippines in the

six (6) months immediately preceding his nomination;

(b)Of good moral character and with acknowledged integrity,

impartiality and independence;

(c)Has the requisite knowledge of insolvency and other relevant

commercial laws, rules and procedures, as well as the relevant
training and/or experience that may be necessary to enable him to
properly discharge the duties and obligations of a rehabilitation
receiver; and

(d)Has no conflict of interest: Provided, That such conflict of interest

may be waived, expressly or impliedly, by a party who may be
prejudiced thereby.

Other qualifications and disqualification’s of the rehabilitation receiver shall

be set forth in procedural rules, taking into consideration the nature of the
business of the debtor and the need to protect the interest of all
stakeholders concerned.

FRIA Rules –

SEC. 21. QUALIFICATIONS OF A REHABILITATION RECEIVER.

(A) The rehabilitation receiver who is a natural person must comply with
the following minimum qualifications and requirements:

(1) He is a citizen of the Philippines or a resident of the Philippines for at

least six (6) months immediately preceding his nomination;

22
(2) He is of good moral character and with acknowledged integrity,
impartiality and independence;

(3) As far as practicable, he has expertise and acumen to manage and

operate a business similar in size and complexity to that of the debtor;

(4) He has an operating knowledge in management, finance and

rehabilitation of distressed companies;

(5) He has a general familiarity with the rights of creditors subject to

suspension of payments or rehabilitation and a general understanding of
the duties and obligations of a rehabilitation receiver;

( 6) He has not been earlier dismissed as a rehabilitation receiver pursuant

to Section 27 of this Rule;

(7) He has no conflict of interest as defined in this Rule; and

(8) He is willing and able to file a bond in such amount as may be

determined by the court.

(B) The rehabilitation receiver, which is a juridical person, must comply

with the following qualifications and requirements:

a. It is duly authorized to do business in the Philippines for at

least six (6) years prior to its appointment;

b. It is of good standing as certified by the appropriate regulatory

agency/ies;

xxx

(Rule 2, Sec. 21, pars. A & B, of A.M. No. 12-12-11-SC, or the Financial
Rehabilitation Rules of Procedure).

XII

Joel had a wife named Jena and two legitimate children - Jojo and Julio. In
2018, he made a will instituting his wife and Jojo as his heirs. Two years
thereafter, spouses Joel and Jena migrated in California, USA and obtained
citizenship. In 2021, Joel died and left an estate of 100M consisting of a
property located in the Philippines. During the probate of the said will, Julio
challenged the validity thereof on the ground of preterition under the
Philippine law. Meanwhile, in California law, it does not recognize the
institution of compulsory heirs. Is the objection of Julio correct?

23
a.) Yes, since the will was executed in the Philippines, the institution of
compulsory heirs is recognized in accordance with the principle of lex
loci celebrationis.
b.) No, since the California law does not recognize the institution of
compulsory heirs in consonance with the principle of nationality.
c.) Yes, since the property involved is located in the Philippines, the
institution of compulsory heirs is recognized following the principle of
lex res sitae.
d.) No, since the decedent domiciled in California, the latter’s law will
prevail which does not recognize institution of compulsory heirs
pursuant to domiciliary theory.

Ans: B.

In intestate and testamentary successions, both with respect to the order

of succession and to the amount of successional rights and to the intrinsic
validity of testamentary provisions, such shall be regulated by the
national law of the person whose succession is under consideration,
whatever may be the nature of the property and regardless of the country
wherein said property may be found. (Article 16, Civil Code of the
Philippines)

XIII

Jorena - 17 years old, Jasmine - 18 years old, and Joaquin - 19 years old,
obligated themselves to pay jointly and severally the amount of
Php15,000.00 to Althea. Jorena obligated herself to pay on July 1, 2022;
Jasmine upon passing the 2023 Civil Service Examination; and Joaquin on
January 1, 2023. On December 31, 2022, Althea demanded payment from
Jorena. How much will Althea recover from Jorena?

a.) 5k
b.) 10k
c.) 15k
d.) None

Ans: D. Minority is a complete defense in the performance of an obligation

which can be raised by the minor. Moreover, under Article 1399 of the Civil
Code, when the defect of a contract consists in the incapacity of one of the
parties, the incapacitated person (such as a minor) is not obliged to make
any restitution except insofar as he has been benefitted by the thing or

24
price received by him. In the question above, there is no showing that the
minor has received a thing or price that benefited her.

PART III QUESTIONS (5 pts each)

In taxation, this is a test applied in the realization of income and expense

by an accrual-basis taxpayer. This test requires: (1.) fixing of a right to
income or liability to pay; and (2.) the availability of the reasonable
accurate determination of such income or liability.

Answer: All-events test (CIR vs. Isabela Cultural Corp., 172231, February
12, 2007).

II

In the landmark case of Aquino vs. Aquino (G.R. Nos. 208912 and 209018;
7 December 2021), the Supreme Court, speaking through Senior Associate
Justice Marvic Leonen, revisited the iron curtain rule as applied to family
law issues. When referring to children, what was the new term that
replaced the term “illegitimate”?

Answer: Non-marital or nonmarital (5 pts.)

Whenever practicable and not required by direct reference to statute and

jurisprudence, the term "nonmarital child" is used in place of "illegitimate
child" to refer to the status of a child whose parents who are not married
to each other (footnote 2).

Note. The word “nonmarital” was already used in an earlier case . To

obviate the derogatory connotations of the term "illegitimate", the word
"nonmarital'' is used in substitution, unless required by direct reference to
statute, jurisprudence, and the parties' pleading (Footnote 4 in Gocolay vs.
Gocolay, 220606, Jan. 11, 2021).

III

25
What is the term used for the movement of an employee from one agency
to another without the issuance of an appointment and shall be allowed,
only for a limited period in the case of employees occupying professional,
technical, and scientific positions?

A. Transfer C. Reassignment
B. Detail D. Office-In-Charge
ANSWER: B (A.M. No. (2170-MC) P-1356, November 21, 1979 ] HON.
REMIGIO E. ZARI, COMPLAINANT, VS. DIOSDADO S. FLORES). (5 pts).
Transfer is defined in the Resolution as “any personnel movement
from one government agency to another or from one department,
division, geographical unit or subdivision of a government agency to
another with or without the issuance of an appointment.
Reassignment.--An employee may be reassigned from one
organizational unit to another in the same agency which does not
require the issuance of an appointment

Office-In-Charge refers to a situation in which an employee is

temporarily holding an office pending the filling out of said position.

IV

Which of the following statements is correct as regards acquisition of lands

registered under the Torrens system?

a. Lands registered under Torrens system can be acquired through

acquisitive prescription and also by reason of laches.

b. Lands registered under Torrens system can be acquired through

acquisitive prescription but not by reason of laches.

c. Lands registered under Torrens system cannot be acquired through

acquisitive prescription but can be acquired by reason of laches.

d. Lands registered under Torrens system can neither be acquired

through acquisitive prescription nor by reason of laches.

26
 (Ans : C. In Lorenzo vs. Eustaquio, G.R. 209435, August 10, 2022, the
Supreme Court held that although acquisitive prescription is inapplicable
in case of a registered land as found in Section 47 of Act No. 496
(1902), Section 47 of PD 1529 (1978), and Bishop vs. CA, it nonetheless
ruled that a peaceful, uninterrupted, and adverse possession xxx
of a land for 50 years had ripened into ownership by reason of
laches. True, the subject land is registered under the Torrens
system. Nevertheless, an ownership of registered land may be
lost through laches)

It is defined under the Cybercrime Prevention law as an intentional

alteration or reckless hindering or interference with the functioning of a
computer or computer network by inputting, transmitting, damaging,
deleting, deteriorating, altering, or suppressing computer data or program,
electronic document, or electronic data message, without right or authority,
including the introduction or transmission of viruses.

A. Cyber-squatting
B. System Interference
C. Misuse of Devices
D. Illegal Interception

Ans: B.

REPUBLIC ACT NO. 10175

AN ACT DEFINING CYBERCRIME, PROVIDING FOR THE
PREVENTION, INVESTIGATION, SUPPRESSION AND THE
IMPOSITION OF PENALTIES THEREFOR AND FOR OTHER
PURPOSES
(Cybercrime Prevention Act of 2012)

Section 4. Cybercrime Offenses. — The following acts constitute the

offense of cybercrime punishable under this Act:

(a) Offenses against the confidentiality, integrity and availability of

computer data and systems:

(1) Illegal Access. – The access to the whole or any part of a

computer system without right.

27
(2) Illegal Interception. – The interception made by technical
means without right of any non-public transmission of
computer data to, from, or within a computer system including
electromagnetic emissions from a computer system carrying
such computer data.

(3) Data Interference. — The intentional or reckless alteration,

damaging, deletion or deterioration of computer data,
electronic document, or electronic data message, without right,
including the introduction or transmission of viruses.

(4) System Interference. — The intentional alteration or

reckless hindering or interference with the functioning
of a computer or computer network by inputting,
transmitting, damaging, deleting, deteriorating, altering
or suppressing computer data or program, electronic
document, or electronic data message, without right or
authority, including the introduction or transmission of
viruses.

(5) Misuse of Devices.

(i) The use, production, sale, procurement, importation,

distribution, or otherwise making available, without right,
of:

(aa) A device, including a computer program,

designed or adapted primarily for the purpose of
committing any of the offenses under this Act; or

(bb) A computer password, access code, or similar

data by which the whole or any part of a computer
system is capable of being accessed with intent that
it be used for the purpose of committing any of the
offenses under this Act.

(ii) The possession of an item referred to in paragraphs

5(i)(aa) or (bb) above with intent to use said devices for
the purpose of committing any of the offenses under this
section.

(6) Cyber-squatting. – The acquisition of a domain name over

the internet in bad faith to profit, mislead, destroy reputation,
and deprive others from registering the same, if such a domain
name is:

28
 (i) Similar, identical, or confusingly similar to an existing
trademark registered with the appropriate government
agency at the time of the domain name registration:

(ii) Identical or in any way similar with the name of a

person other than the registrant, in case of a personal
name; and

(iii) Acquired without right or with intellectual property

interests in it.

VI

Who among the following individuals is REQUIRED to file an income tax

return?

a. Any alien individual engaged in business or practice of profession within

the Philippines whose gross income does NOT exceed Php250,000.00.

b. A minimum wage earner as defined in the NIRC.

c. A Filipino citizen residing outside of the Philippines on his income from

sources outside the Philippines.

d. An individual whose sole income has been subjected to final

withholding tax as provided in the NIRC.

e. A resident alien on income derived from sources outside of the

Philippines.

Answer: a. (5 pts.)

The following individuals shall NOT be required to file an income tax

return:

(a) An individual whose taxable income does not exceed Two hundred
fifty thousand pesos (P250,000) under Section 24(A)(2)(a): Provided,
That a citizen of the Philippines and any alien individual engaged
in business or practice of profession within the Philippines
shall file an income tax return, regardless of the amount of
gross income (RA 10963, or the TRAIN law) (a.);

(b) An individual with respect to pure compensation income, as defined

in Section 32(A)(1), derived from such sources within the Philippines,
the income tax on which has been correctly withheld under the

29
 provisions of Section 79 of this Code: Provided, that an individual
deriving compensation concurrently from two or more employers at
any time during the taxable year shall file an income tax return (RA
9504);

(c) An individual whose sole income has been subjected to final

withholding tax (d.) pursuant to Section 57(A) of this Code (RA
8424); and

(d) A minimum wage earner (b.) as defined in Section 22(HH) of this

Code or an individual who is exempt from income tax pursuant to the
provisions of this Code and other laws, general or special (RA 9504).

The following individuals are required to file an income tax return (RA
8424):

(a) Every Filipino citizen residing in the Philippines;

(b) Every Filipino citizen residing outside the Philippines, on his income
from sources within the Philippines (c.);

(c) Every alien residing in the Philippines, on income derived from

sources within the Philippines (e.); and

(d) Every nonresident alien engaged in trade or business or in the

exercise of profession in the Philippines.

VII

This is defined as “unrealistic and unreasonable demands in negotiations

by either or both labor and management, where neither concedes anything
and demands the impossible.” It actually is not collective bargaining at all.

Answer: Blue-sky bargaining (Standard Chartered Bank Employees vs.

Nieves Confesor, 114974, June 16, 2004). (5 pts.)

VIII

Question: Developed by the Federal Constitutional Court of Germany, this

international law doctrine states that a court or arbitral tribunal may be
given the competence or jurisdiction to rule on the extent of its own
competence or jurisdiction on issues before it. What is this doctrine?

30
Answer: Doctrine of kompetenz-kompetenz (competence-
competence) (5 pts.)

IX

In the case of Marbury vs. Madison, the Supreme Court of the United
States ruled:

i. Marbury has a right to the commission;

ii. The law does not grant a remedy;
iii. The Supreme Court has the authority to review the acts of Congress;
iv. Congress cannot expand the scope of the Supreme Court’s original
jurisdiction beyond what is specified in the Constitution;
v. The Supreme Court does not have original jurisdiction to issue writs of
mandamus.

Which of the foregoing are correct?

a. i, iii, iv, and v.

b. ii, iii, iv, and v.
c. i, ii, iii, iv, and v.
d. ii, iii, and v.

Ans: A.

It is, then, the opinion of the Court [that Marbury has a] right to the
commission (i); a refusal to deliver which is a plain violation of that right,
for which the laws of his country afford him a remedy (ii). (source:
https://www.britannica.com/event/Marbury-v-Madison )

Marshall’s opinion established that the Supreme Court has the authority,
under the Supremacy Clause and Article III, § 2 of the Constitution, to
review legislative or executive acts and find them unconstitutional, i.e., the
power of judicial review (iii). (source:
https://www.law.cornell.edu/wex/marbury_v_madison_(1803) )

If congress remains at liberty to give this court appellate jurisdiction, where

the constitution has declared their jurisdiction shall be original; and original
jurisdiction where the constitution has declared it shall be appellate; the
distribution of jurisdiction, made in the constitution, is form without
substance (iv). (source:
https://www.archives.gov/milestone-documents/marbury-v-

31
madison#:~:text=With%20his%20decision%20in
%20Marbury,Government%20from%20becoming%20too%20powerful. )

Although he could have held that the proper remedy was a writ of
mandamus from the Supreme Court—because the law that had granted the
court the power of mandamus in original (rather than appellate)
jurisdiction, the Judiciary Act of 1789, was still in effect—he instead
declared that the court had no power to issue such a writ, because
the relevant provision of the act was unconstitutional (v). Section
13 of the act, he argued, was inconsistent with Article III, Section 2 of the
Constitution, which states in part that “the supreme Court shall have
original Jurisdiction” in “all Cases affecting Ambassadors, other public
Ministers and Consuls, and those in which a State shall be Party,” and that
“in all the other Cases before mentioned, the supreme Court shall have
appellate Jurisdiction.” (source:
https://www.britannica.com/event/Marbury-v-Madison )

The provision in the 1789 Act granting the Supreme Court the power to
issue a writ of mandamus was unconstitutional (v) (source:
https://www.law.cornell.edu/wex/marbury_v_madison_(1803)#:~:text=Ma
rbury%20sued%20Madison%20in%20the,writ%20of%20mandamus
%20was%20unconstitutional. )

Republic Act 11659 of 2022 amending the Public Service Act (“PSA”), in
relation to the Foreign Investments Act, its Implementing Rules and
Regulations, and the 12th Foreign Investments Negative List amended the
definition of “public utility,” listing what it covers, and therefore, allowed
higher foreign equity in areas not included in the list. In the areas of
telecommunications, domestic shipping, railways and subways, airlines,
expressways, tollways, and transport network vehicles services, up to what
percent (%) of foreign ownership is now allowed?
A. 40%;
B. 60%;
C. 75%;
D. 100%

Answer: D (The amendment of the PSA explicitly defines “public utility”

as public service that operates, manages or controls for public use any of
the following services: [i.] distribution of electricity; [ii.] transmission of
electricity; [iii.] petroleum and petroleum products pipeline transmission
systems; [iv.] water pipelines distribution systems and wastewater pipeline
32
systems; [v.] seaports; and [vi.] public utility vehicles. Limiting the
definition of a public utility is significant because the 1987 Constitution
provides that foreign ownership of public utilities shall be limited to 40% of
the shares of a company. Thus, full foreign ownership is welcome in public
utilities not included in the list. For instance, full foreign ownership is now
allowed in the areas of telecommunications, domestic shipping, railways
and subways, airlines, expressways, tollways, and transport network
vehicles services or “TNVS”.) (source:
https://www.zicolaw.com/resources/alerts/philippines-issues-12th-foreign-
investment-negative-list/ )

XI

CRIMINAL LAW

c/o Judge NBSO

CLINCHER ROUND

Under the rule on replevin, which of the following is CORRECT?

a. The applicant must file a bond executed to the adverse party in

double the value of the property.
b. The property has been distrained or taken for a tax assessment or
a fine pursuant to law.
c. The remedy now includes the recovery of possession of both
personal and real property.
d. The plaintiff may apply for the writ at any time before judgment.

ANSWER: A
The property has not been distrained or taken for a tax assessment
or a fine pursuant to law; The remedy only involves personal
property; The plaintiff may apply for the writ at any time before
answer (Rule 60 of the Rules of Court).

II
This is the test on patent infringement for the purpose of determining
whether there is exact identity of all the material elements.

33
A. Literal Infringement Test
B. Idem Sonans Test
C. Dominancy Test
D. Holistic Test

Letter A is a test on patents, while B, C, and D are tests on trademarks

whether marks are confusingly similar. (3 pts.)

The question now arises: Did petitioner’s product infringe upon the patent
of private respondent?

Tests have been established to determine infringement. These are (a)

literal infringement; and (b) the doctrine of equivalents. In using literal
infringement as a test, “x x x resort must be had, in the first instance,
to the words of the claim. If accused matter clearly falls within the claim,
infringement is made out and that is the end of it.” To determine whether
the particular item falls within the literal meaning of the patent claims, the
Court must juxtapose the claims of the patent and the accused product
within the overall context of the claims and specifications, to determine
whether there is exact identity of all material elements (Godines
vs. CA, G.R. No. 97343, September 13, 1993).

In Emerald Garment vs. CA, G.R. No. 100098, December 29, 1995, this
was provided:

As its title implies, the test of dominancy focuses on the similarity

of the prevalent features of the competing trademarks which might
cause confusion or deception and thus constitutes infringement.

xxx xxx
xxx.

…. If the competing trademark contains the main or essential or

dominant features of another, and confusion and deception is likely
to result, infringement takes place. Duplication or imitation is not
necessary; nor it is necessary that the infringing label should suggest
an effort to imitate. [C. Neilman Brewing Co. v. Independent Brewing
Co., 191 F., 489, 495, citing Eagle White Lead Co., vs. Pflugh (CC)
180 Fed. 579]. The question at issue in cases of infringement of
trademarks is whether the use of the marks involved would be likely
to cause confusion or mistakes in the mind of the public or deceive
purchasers. (Auburn Rubber Corporation vs. Honover Rubber Co.,
107 F. 2d 588; xxx.)[32]

34
 xxx xxx
xxx.

On the other side of the spectrum, the holistic test mandates that
the entirety of the marks in question must be considered in
determining confusing similarity.

xxx xxx
xxx.

In determining whether the trademarks are confusingly similar, a

comparison of the words is not the only determinant factor. The
trademarks in their entirety as they appear in their respective labels
or hang tags must also be considered in relation to the goods to
which they are attached. The discerning eye of the observer must
focus not only on the predominant words but also on the other
features appearing in both labels in order that he may draw his
conclusion whether one is confusingly similar to the other.

Idem sonans rule relates to the aural effects of the words and letters
contained in the marks in determining the issue of confusing similarity (Mc
Donalds vs. L.C. Big Mak Burger, G.R. No. 143993, August 18, 2004).

III

In taxation, this test is applied to determine the "reasonable

needs" of the business in order to justify an accumulation of
earnings. This test construes the words "reasonable needs of the
business" to mean the immediate needs of the business, and it
was generally held that if the corporation did not prove an
immediate need for the accumulation of the earnings and profits,
the accumulation was not for the reasonable needs of the
business, and the penalty tax would apply..

Answer: Immediacy test (Manila Wine Merchants vs. CIR, L-26145,

February 20, 1984). (5 pts.)

IV

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As defined under Article 9 of the Revised Penal Code as amended by RA
10951, light felonies are those infractions of law or the commission of
which the penalty of arresto menor or a fine not exceeding ____________
or both is provided.

Answer : Php 40,000.00

Which of the following statements is correct as regards cancellation of a

duly registered notice of lis pendens?

a. The cancellation of a duly registered notice of lis pendens may only

be done once the judgment on the merits of the main action attained its
finality and can only be ordered cancelled by the court to which the
main action was filed.

b. The cancellation of a duly registered notice of lis pendens may be

done even while the trial on the merits of the main action is on-going
provided that it can only be ordered cancelled by the court where the
main action was filed.

c. The cancellation of a duly registered notice of lis pendens may only

be done once the judgment on the merits of the main action attained its
finality and as a separate petition for cancellation of notice of lis
pendens before any court having jurisdiction on the petition for
cancellation and not necessarily the court that has jurisdiction over the
main action.

d. The cancellation of a duly registered notice of lis pendens may be

done even while the trial on the merits of the main action is on-going by
filing a separate petition for cancellation of notice of lis pendens before
any court having jurisdiction on the petition for cancellation and not
necessarily the court that has jurisdiction over the main action.

Ans: B. (3 pts.)

A necessary incident of registering a notice of lis pendens is that the

property covered thereby is effectively placed, until the litigation attains
finality, under the power and control of the court having jurisdiction
over the case to which the notice relates… The notice of lis
pendens may be cancelled at any time by the court having
jurisdiction over the main action inasmuch as the same is
merely an incident to the said action (Republic vs. Heirs of Sps.
Molinyawe, G.R. 217120, April 18, 2016)

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 VI

Based on jurisprudence, it is an extraordinary provisional remedy whereby

money or other property is placed in custodia legis to ensure restitution to
whichever party is declared entitled thereto after court proceedings.
a. Extraordinary Garnishment
b. Special Attachment Order
c. Deposit Order
d. Constructive Trust Relation

ANSWER: C – Deposit Order. (5 pts.)

“Based on jurisprudence, a deposit order is an extraordinary
provisional remedy whereby money or other property is placed in
custodia legis to ensure restitution to whichever party is declared
entitled thereto after court proceedings. It is extraordinary because
its basis is not found in Rules 57 to 61 of the Rules of Court on
Provisional Remedies but rather, under Sections 5(g) and 6 of Rule
135 of the same Rules pertaining to the inherent power of every
court “to amend and control its process and orders so as to make
them conformable to law and justice,” as well as to issue “all auxiliary
writs, processes and other means necessary” to carry its jurisdiction
into effect.” (Lorenzo Shipping Corporation vs. Florencio O. Villarin et
al, G.R. No. 175727, March 6, 2019) (5 pts.)

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