LEGAL ETHICS &

PRACTICAL EXERCISES
(2012) 4. What is the duration of MCLE Compliance
Period?

a. Twelve (12) months;

1. Atty. Galing is a Bar topnotcher. He has
been teaching major subjects in a law b. Twenty four (24) months;
school for eight (8) years and has c. Thirty six (36) months;
mastered the subjects he is handling. Is
he exempt from the MCLE requirement? d. Eighteen (18) months.

a. No, eight (8) years experience is 5. When does compliance period begin?
not enough.
a. When the lawyer actually begins
b. Yes, since he has mastered what
law practice;
he is handling.
c. Yes, professors of law are b. Upon admission/readmission to
exempted. the Bar;
d. No, since he is not yet a Bar
reviewer. c. 01 October 2009;

d. 01 October 2006.
2. Atty. Rey has been a professor in the
Legal Management Department of Y 6. Does the MCLE requirement apply at once
University for thirty (30) years. He teaches to a newly-admitted lawyer?
Constitution, Obligation and Contracts,
a. Yes, if admitted to the Bar and
Insurance, Introduction to Law. Is he
there are four (4) more months
exempted from the MCLE requirement?
remaining of the compliance
a. Yes, because his teaching period.
experience is already more than
b. No, wait for the next compliance
ten (10) years.
period.
b. No, because he is not teaching in
c. Yes, if he will start law practice
the College of Law.
immediately.
c. Yes, because of his field of
d. Yes, if more than one (1) year
knowledge and experience.
remains of the compliance
d. No, because Y University is not period.
accredited.
7. What is the purpose of MCLE?

a. To conform with the

3. The term of Dean Rex of X College of Law requirements of international
expired in the first year of the third law.
compliance period. Does his exemption
b. To provide a venue to improve
extend to the full extent of said
fraternal relations among
compliance period?
lawyers.
a. No, he must comply with all the
c. To keep abreast with law and
unit requirements.
jurisprudence and to maintain
b. Yes, to the full extent. the ethical standards of the
profession.
c. No, but comply proportionately.
d. To supplement legal knowledge
d. Yes, but he must apply for due to substandard law schools.
exemption
8. Atty. Aga was appointed as Treasurer by
the IBP President with the approval of the
Board of Governors for a term
coterminous with that of the President. A
year thereafter, Atty. Aga ran as Barangay
Chairman of their place, and took a leave
of absence for two (2) weeks to
campaign. May Atty. Aga re-assume as
Treasurer after his leave of absence?
a. Yes, since he lost in the election.
b. No, because he was deemed
resigned upon filing of his
certificate of candidacy.
c. Yes, because his position as
Treasurer is coterminous with
the President of the I BP.
d. No, because he should first seek
the approval of the IBP Board of
Governors before running as
Brgy. Chairman.
9. Atty. Magtanggol of the PAO was assigned
to defend X who is accused of Slight
Physical Injury before the MTC of a far-
flung town. During the trial, P02 Tulco
appeared in court on behalf of the
complainant. Atty. Magtanggol objected
to his appearance since the policeman is
not a member of the Bar.
11. RTC Judge Bell was so infuriated by the
a. The objection is valid. It should
be the public prosecutor who
should prosecute the criminal
action.
b. Atty. Magtanggol is just afraid
that his client may be convicted
through the efforts of a non-
lawyer.
c. In the courts of a municipality, a
party may conduct his litigation
in person or with the aid of an
agent or friend.
d. If a public prosecutor is not
available, at least a private
prosecutor who must be a
lawyer should be designated.
10. Bong Tupak, a second year law student,
was charged in the RTC for Forcible
Abduction with Rape. Having knowledge
of criminal law and procedure, he
dismissed the counsel de oficio assigned
and appeared for himself. He asserted
that there was lack of force. Eventually,
the RTC found him guilty of Consented
Abduction and imposed the penalty. Bong
Tupak now assails the decision, saying
that there was a violation of due process
because he was allowed to appear by
himself and he did not know that
Consented Abduction is a crime. Decide.
a. An accused before the RTC may
opt to defend himself in person
and he cannot fault others for his
decision.
b. The RTC should have appointed a
counsel de oficio to assist the
accused even if not sought or
requested by the accused.
c. There was violation of due
process. There is disparity
between the expertise of a public
prosecutor and the inexperience
of a 2nd year law student.
d. A 2nd year law student has
sufficient knowledge of criminal
law and procedure, hence, he is
competent to defend himself.
conduct of Atty. X who conveniently
absents himself when his clients do not
pay his appearance fee in advance. Atty. X
also uses disrespectful and obscene
language in his pleadings . . At one point,
when his case was called for hearing, Atty.
X did not appear for his client although he
was just outside the door of the court
room. Judge Bell directed the client to
summon Atty. X, but the latter refused.
Judge Bell then issued an Order directing
Atty. X to explain why no disciplinary
action shall be imposed on him for this
misconduct but he refused the directive.
Decide.
a. RTC Judge Bell can suspend Atty.
X from the practice of law before
his sala.
 b. The case of Atty. X can be
dismissed due to non-
appearance of counsel even
though the party was present.
c. The hearing of the case should
be rescheduled in the interest of
justice.
d. The court can admonish the
client for the unprofessional
conduct of his lawyer and ask
him to change his lawyer.
12. Debbie, topnotcher of their class, is now
on her 4th year law studies and has
enrolled in the legal aid clinic of the law
school. She was assigned to handle a
domestic violence and support case filed
by their client against her husband.
During the hearing, the clinic's supervising
attorney introduced Debbie to the Branch
Clerk of Court and then left to oversee
another intern. In the midst of the
proceedings, opposing counsel objected
to the appearance of Debbie because she
is not yet a lawyer. Decide.
14. Mr. Joseph, owner of an investment
a. Debbie can proceed because the
law student practice rule allows a
student who has finished 3rd
year of the regular course to
appear without compensation
before a trial court.
b. Debbie can proceed since she is
appearing only during the trial
and did not sign the pleadings.
c. Debbie cannot proceed without
the presence of their clinic's
supervising attorney.
d. Debbie has proven her capability
to handle the case and opposing
counsel is objecting only now
because he might lose to a law
student.
13. Atty. Quiso was the retained counsel for
Alfa Security Agency and handled all the
cases involving the company. Adam, the
Assistant Manager of the agency, hired
Atty. Quiso when he was sued in an
ejectment case. Later, Adam was fired
from the agency. Adam did not return a
vehicle and so, Atty. Quiso - as counsel for
the security agency - filed a replevin suit
Adam moved for Atty. Quiso's
disqualification considering that the
ejectment case is still pending. Is there
conflict of interest?
a. No, the cases are totally
unrelated and there is no
occasion to unduly use
confidential information
acquired from one case in the
other.
b. No, Atty. Quiso is duty bound to
handle a !I cases of his client,
including the replevin case
against Adam.
c. Yes, proscription is against
representation of opposing
parties who are present clients
or in an unrelated action.
d. Yes, Atty. Quiso must withdraw
as counsel for Adam, otherwise
he will lose his retainer
house, consulted a friend , Atty. Miro,
about a potential criminal act1on against
him because he cannot pay investors due
to temporary liquidity problems. Atty.
Miro asked Mr. Joseph to transfer to him
all assets of the firm and he will take
charge of settling the claims and getting
quitclaims. A month later, Mr. Joseph was
surprised to receive a demand letter from
Atty. Miro , as counsel for all the
claimants , for the pay back of their
investments. After a while, Mr. Joseph
received releases and quitclaims from the
investors, with desistance from filing
criminal action against him. Atty. Miro
later told Mr. Joseph that he sent the
demand letter so he can claim attorney's
fee. Was there a conflict of interest?
a. No, there was no formal
engagement of Atty. Miro as
counsel for Mr. Joseph.
b. Yes, by giving legal advice to Mr.
Joseph, the latter became a
client of Atty. Miro.
 c. No, there is no attorney-client
relationship between Mr. Joseph
and Atty.· Miro as no attorney's
fee was charged nor paid to the
latter.
d. Yes, because Atty. Miro was
representing Mr. Joseph when
he disposed the assets to pay off
the claims.
15. Atty. Gelly passed the Bar 1n 1975. After
taking his oath, he did not enlist in any
IBP chapter because he went to the USA
to pursue a Master's Degree. Eventually,
he passed the state bar and specialized in
lmmigration law. In 2005. he returned to
the Philippines and was but the IBP is
charging him from 1975 up to the present
and threatening him with expulsion if he
does not comply. Is the IBP correct?
a. Atty. Gelly cannot be compelled
to pay the IBP dues because he
was not engaged in the practice
of law from 1975-2005.
b. Atty. Gelly is exempt from 1975-
2005 because he was out of the
country.
c. Atty. Gelly should pay the dues
from 1975 to the present since
membership in the IBP is
compulsary.
d. Atty. Gelly should not pay
because the rule on bar
integration is unconstitutional
for compelling a lawyer to join an
association.
16. Mr. Joey owns a 5-hectare parcel of land
which is being expropriated as market
site. The government is offering only Php
15 per sqm while Mr. Joey deserves Php
20 per sqm. Atty. AI agreed to represent
Mr. Joey in the expropriation case on
contingent basis in that his attorney's fees
shall be the excess of Php 20 per sqm.
Due to expert handling, the expropriation
court awarded Mr. Joey the fair market
value of Php 35 per sqm. Mr. Joey
complained to the court that the
attorney's fee being charged is excessive
as it amounts to about 63°/o of the
award. Decide.
a. A retainer's agreement, as a
contract, has the force of law
between the parties and must be
complied with in good faith.
b. It was the excellent handling of
the case that resulted in a bigger
award; hence, it is fair that Atty.
AI should be rewarded with the
excess.
c. Mr. Joey got the desired
valuation for his land. So, he
must honor his contract with
Atty. AI.
d. Attorney's fees is always subject
to court supervision and may be
reduced by the court based on
quantum meruit.
17. Atty. Atras was the counsel for Mr.
Abante. Soon after the case was
submitted for decision, Mr. Abante got
the files and informed Atty. Atras that he
was hiring another lawyer. On that same
day, a copy of the decision was received
by Atty. Atras but he did not do anything
anymore. He also' failed to file his
withdrawal, and no appearance was
made by the new counsel. When Mr.
Abante found out about the adverse
decision, the period to appeal had lapsed.
Was service to Atty. Atras effective?
a. Yes, Atty. Atras is still considered
the counsel of record until his
withdrawal of appearance has
been actually filed and granted.
b. Service should be done on Mr.
Abante because he had already
severed lawyer-client
relationship with Atty. Atras.
c. Service should be done on the
new counsel as soon as he enters
his appearance.
d. Service upon Atty. Atras is not
effective because his services
have already been terminated by
the client.
18. Atty. Utang borrowed from Y Php
300,000.00 secured by a post dated
check. When presented, the check was
dishonored. Y filed a BP 22 case in court,
and a disbarment complaint with the IBP.
In the latter case, Atty. Utang moved for
dismissal as the act has nothing to do with
his being. a lawyer and that it is
premature because the case is pending
and he is entitled to presumption of
innocence. Should the disbarment
complaint be dismissed?
a. No, because lawyers may be
disciplined for all acts, whether
professional or private.
b. Yes, there is no conviction yet.
c. Yes, BP 22 does not involve
moral turpitude.
d. No, unless he pays the amount of
the check to the satisfaction of Y.
19. Atty. Juan Cruz of the Cruz, Cruz and Cruz
Law Office personally handled a damage
case of Mr. Gonzalo which resulted in an
award of Php 500,000.00. The writ of
execution was served by Sheriff Onoy, but
resulted in recovery of only Php
70,000.00. Mr. Gonzalo was unsatisfied
and filed an administrative complaint.
When informed, Sheriff Onoy berated and
threatened Mr. Gonzalo; and for this, the
Sheriff was charged with Grave Threat.
Atty. Pedro Cruz of the same Cruz, Ci·uz
and Cruz Law Office appeared as defense
counsel pro bono. Mr. Gonzalo seeks his
disqualification. Decide.
a. No conflict of interest. The Grave
Threat case arose out of a
different factual scenario.
b. There is conflict of interest
because both Atty. Juan Cruz and
Atty. Pedro Cruz belong to one
law office.
c. No conflict of interest since the
court case was wholly handled
by Atty. Juan Cruz. The law office
did not participate in any way.
d. No conflict of interest. No
likelihood that information in the
civil case can be used in the
criminal case.
20. Atty. Lorna, a legal officer of a
government agency, and Chona, a nurse
in the medical department, were best
friends. At one time, Chona consulted
Atty. Lorna about a legal matter, revealing
that she is living with a married man and
that she has a child out of wedlock
fathered by another man. Later, the
relation between Atty. Lorna and Chona
soured. When Chona applied for
promotion, Atty. Lorna filed immorality
charges against Chona utilizing solely the
disclosure by the latter of her private life.
Chona objected and invoked
confidentiality of information from
attorney-client relationship. Decide.
a. There is no attorney-client
relationship because, being in
the government, Atty. Lorna is
disallowed from practicing her
profession.
b. No lawyer-client relationship
privilege because the
information was given as a
friend, and not as a lawyer.
c. Personal secrets revealed to
Atty. Lorna for the purpose of
seeking legal. advice is covered
by attorney-client privilege.
d. There is no attorney-client
relationship because no
attorney's fee was paid to Atty.
Lorna.
21. Atty. Nelson recently passed the Bar and
wanted to specialize in marine labor law.
He gave out calling cards with his name,
address and telephone number in front,
and the following words at the back: "We
provide legal assistance to overseas
seamen who are repatriated due to
accident, illness, injury, or death. We also
offer FINANCIAL ASSISTANCE." Does this
constitute ethical misconduct?
 a. No, clients have freedom in the
selection of their counsel.
b. No, use of a professional card is a
lawful way of announcing his
services as a professional.
c. Yes, because the offer of
financial assistance is an
undignified way of luring clients.
d. Yes, because the offer of
assistance is stated at the back.
22. Which of these does not constitute
competent evidence of identity?
a. Passport;
b. SSS card;
c. Community Tax Certificate;
d. Senior Citizen Card.
23. A recovery of ownership complaint was
filed by the Dedo and Dedo Law Firm,
through Atty. Jose Dedo as counsel.
During all the phases of trial, it was Atty.
Jose Dedo who appeared. Unfortunately,
Atty. Jose Dedo died before completion of
trial. Notices and orders sent to the Dedo
and Dedo Law Firm were returned to the
court with the manifestation that Atty.
Dedo already died and requesting the
court to directly send the matters to the
client. Is this proper?
a. No, the law firm- through
another lawyer - should continue
to appear for the client.
b. Yes, because the death of the
handling lawyer terminates the
attorney-client relationship.
c. Yes, because attorney's fees was
not paid to the law firm.
d. No, it will be unjust for the client
to pay another lawyer.
24. Which of these is not a ground for
disbarment?
a. Conviction of a crime involving
moral turpitude.
b. Belligerent disobedience to a
lawful order of a trial court.
c. Malpractice or other gross
misconduct in office.
d. Grossly immoral conduct.
25. (unread text)
Supreme Court are handled by:
a. Clerk of Court of the Supreme
Court
b. Ombudsman
c. Presiding Justice of the Court of
Appeals
d. Office of the Court Administrator
26. Atty. Aimee was convicted by final
judgment of Estafa Thru Falsification of a
Commercial Document, a crime involving
moral turpitude. What is the appropriate
penalty?
a. Disbarment ·
b. Indefinite suspension
c. Suspension for three (3) years
d. Admonition
27. During the IBP Chapter elections, the
candidates for President were Atty. EJ, a
labor arbiter of the NLRC, Fiscal RJ of the
DOJ and Atty. Gani of the PAO. After
canvass, Fiscal RJ garnered the highest
number of votes, followed by Arbiter EJ
and by Atty. Gani. The winning Vice-
President moved for the annulment of the
election for President because all the
candidates for President are government
officials and are disqualified. Decide.
a. The election for presidency is
invalid, and the elected Vice-
President shall assume the
Presidency by succession.
b. The election is a failure, and new
elections should be held.
c. Fiscal RJ and Arbiter EJ are
disqualified. Atty. Gani should be
declared winner.
 d. All the candidates who are a. up to the 6th degree;
government officials are deemed
b. up to the 5th degree;
resigned upon their acceptance
of nomination; and so, Fiscal RJ is c. up to the 4th degree;
winner.
d. up to the 3rd degree.
28. Atty. Edad is an 85 year old lawyer. He
does not practice law anymore. However, 32. A judge or judicial .officer should inhibit
his IBP Chapter continues to send him himself from hearing a case before him
notices to pay his IBP dues of more than where the counsel for either party is a
ten (1 0) years with warning that failure relative by consanguinity or affinity -
to comply will result in the removal of his
a. up to the 3rd degree;
name. Piqued by this, Atty. Edad filed with
the IBP Secretary a sworn letter notifying b. up to the 4th degree;
that he is voluntarily terminating his
membership with the IBP. Should he be c. up to the 5th degree;
allowed? d. up to the 6th degree.
a. No, because membership in IBP 33. Victor has been legally separated from his
is compulsory for all lawyers. wife, Belen for fifteen (15) years. He has
b. Yes, an erstwhile IBP member found true love and happiness with Amor
may terminate his membership and they lived together as husband and
for good reasons. wife. Amor convinced Victor to study law
and gave him financial support. Recently,
c. No, that is only a ploy to evade Victor passed the 2011 Bar Examinations.
payment of IBP dues. Upon knowing this, Belen filed a
complaint against Victor for immorality.
d. Yes, it will violate his right not to
Should Victor be allowed to take oath as
join an association.
an attorney?
29. Who elects the members of the Board of
a. Yes, his relationship with Amor is
Governors of the IBP?
imbued with genuine love and
a. The Presidents of all IBP cannot be considered immoral
Chapters; and indecent.

b. The members at large of the IBP; b. Yes, legal separation does not
allow the spouses to remarry.
c. The House of Delegates;
c. No, because legal separation
d. The Past Presidents of all IBP does not dissolve the marriage
chapters. and, therefore, Victor's
relationship with Amor is still
30. Who elects the President and Vice-
considered illicit.
President of the IBP?
d. Yes, it is totally unfair for Belen
a. The President of all IBP Chapters;
to complain since they have lived
b. The IBP members voting at large; separate lives.

c. The Board of Governors; 34. Judge Nacy personally witnessed a

vehicular accident near his house. Later,
d. The outgoing IBP officers.
the Reckless Imprudence case was raffled
31. A judge or judicial officer is disqualified to to his sala. Is there a valid ground for his
hear a case before him wherein a party is inhibition?
related to him by consanguinity or affinity
-
 a. No. he is not acquainted nor
related with any of the parties or
lawyer.
b. No, his personal knowledge of
what actually happened will even
ensure that he will decide the
case justly on the basis of the
true facts.
c. Yes, because a judge should
decide a case on the basis of the
37. Atty. Fred is a law practitioner and
evidence presented before him
and not on extraneous matters.
d. No, because there is no ground
for disqualification and no
motion for inhibition.
35. Judge Ramon obtained a two (2) year car
loan from a financing company. He never
paid a single amortization. After the lapse
of two (2) years, the financing company
filed an administrative complaint against
the judge for willful failure to pay a just
debt. Is the judge administratively liable?
a. No, since the loan is not
connected with his judicial
function.
b. Yes, because a judge should
avoid impropriety or the
appearance of impropriety even
in his private dealings.
c. No, the financing company
should have availed of the
remedy of foreclosure.
d. No, because the administrative
charge is only meant to force the
judge to pay.
36. Bong, son of Judge Rey, is a fourth year
law student. He helped his friend prepare
an affidavit-complaint for Violation of
Batas Pambansa Big. 22. After drafting,
they showed it to Judge Rey who made
some corrections. Later, the BP 22 case
was raffled to Judge Rey who tried and
38. Vice-Mayor Ron is a well-loved law
convicted the accused. Was there
impropriety?
a. Yes, since Judge Rey was not a
fair and impartial judge.
b. No, the evidence for the
prosecution was strong and
sufficient to prove guilt beyond
reasonable doubt.
c. No, because any other judge
would also have convicted the
accused.
d. No, those matters were not
known to the accused.
headed a law firm bearing his name and
those of his partners. When Atty. Fred
was elected as Congressman, his client's
needs were handled by the other
partners. Later, A, a newly proclaimed
congressman-friend , faced an election
protest before the HRET, and sought the
help of Congressman Fred who
immediately directed his law firm to
appear for A. 8, the protestant, sought
the disqualification of Congressman
Fred's law firm from appearing before the
HRET because Congressman Fred is
prohibited from practicing his profession.
Decide.
a. Yes, Congressman Fred's law firm
is disqualified because
Congressman Fred may exercise
undue influence on his peers
who are members of HRET.
b. No, the law firm is not
disqualified because it is another
partner, and not Congressman
Fred who is appearing.
c. No, the prohibition is on
Congressman Fred from
personally appearing, and not to
his partners.
d. Yes, the spirit of the prohibition
is clearly to avoid influence and
cannot be indirectly
circumvented.
practitioner because he assists his
constituents, especially the indigents. Ed,
one of his friends who is employed as
Cashier in the Register of Deeds, sought
his assistance because he was charged
 with Malversation in court. Can Vice- prohibited of government
Mayor Ron appear as counsel of Ed? employees.

a. Yes, members of the Sanggunian b. No, it is only giving of advices,

are allowed to practice their and not court appearance.
profession.
c. Yes, because Atty. Dude accepts
b. No, because Ed is charged with gifts.
an offense in relation to his
d. No, since Atty. Dude does not
office.
accept money.
c. Yes, since the position of Ed does
41. A notary public is required to record
not pertain to the local
chronologically the notarial acts that he
government.
performs in the:
d. No, because all criminal cases are
a. Notarial Book;
against the government.
b. Roll of Documents Notarized;
39. Atty. Noe was elected Vice-Governor and
continued with his law practice. Later, the c. Notarial Register;
governor went on sick leave for one (1)
year and Atty. Noe was designated as d. Notarial Loose Leafs Sheets.
Acting Governor. Since hearings have
42. A party to a contract does not know how
already been set, can Atty. Noe continue
to write. Neither can he affix his
appearing as counsel in the cases handled
thumbmark because both hands were
by him?
amputated. How will that person execute
a. Yes, because his election is only the contract?
as Vice-Governor, and his
a. Ask the party to affix a mark
delegation as Governor is only
using the toe of his foot in the
temporary.
presence of the notary public
b. Yes, but only for the hearings and two (2) disinterested and
that have already been set. unaffected witnesses to the
instrument.
c. Yes, provided Atty. Noe seeks the
permission of DILG. b. Ask the party to hold the pen
with his teeth and affix a + mark
d. No, all governors- even under to be followed by the signature
acting capacity- are prohibited of one friend.
from exercising their profession.
c. The party may ask the notary
40. Atty. Dude is the COMELEC Officer in a public to sign in his behalf.
very distant municipality. He is. the only
lawyer in that area. When election period d. None of the above.
is over, he has much spare time. Many
43. The reports of a Notary Public are
people go to him for counseling, legal
submitted to the:
advice, preparation of documents of Sale,
Mortgage and the like. He does not a. Executive Judge;
charge a fee in money, but he receives
gifts which are offered. Is there b. Court Administrator;
impropriety? c. Notarial Archives;
a. Yes, giving legal advice and d. Clerk of Court.
preparing legal documents, even
if free, constitutes private 44. Atty. Tony is a 25 year old Filipino lawyer.
practice of law, which is He has been a resident in Paranaque City
 for about ten (1 0) years and holds office b. The right of the lawyer to be
in his residence. He filed a petition for retained as counsel for a party
appointment as Notary Public in until the entire case is finished.
Paranaque and has clearance from the I
c. The right of a lawyer who is
BP and the Bar Confidant. However, it
discharged or withdrawn to keep
appears that while still a college student,
the records and property of the
he was convicted by a Laguna Court for
client in his possession until his
Reckless Imprudence Resulting in Damage
lawful services have been paid.
to Property. During the summary hearing
of his petition, the offended party therein d. The prerogative of a client's
strongly objected on that ground. Can retainer to recover out-of-pocket
Atty. Tony be appointed? expenses.
a. No, because he has a previous 48. For grave misconduct, a lawyer was
criminal record. suspended from the practice of law
indefinitely. Is he still obliged to pay his
b. No, because of the opposition.
IBP dues during his suspension?
c. Yes, the offense of Reckless
a. Yes, as he continues to be a
Imprudence does not involve
lawyer and a member of the IBP.
moral turpitude.
b. No, because indefinite
d. Yes, since the Reckless
suspension is practically
Imprudence case did not happen
disbarment.
in the jurisdiction where Atty.
Tony is applying. c. No need to pay IBP dues because
he cannot practice anyway.
45. What is the effect when the parties to a
document acknowledged before a notary d. Pay only after the lifting of the
public did not present competent suspension, if it comes.
evidence of identity?
49. Because of his political beliefs, Atty.
a. Voidable; Guerra joined a rebel group. Later, he was
apprehended and charged with Rebellion
b. Valid;
in court. A disbarment case was also filed
c. Invalid Notarization; against him. While the case was pending,
the government approved a general
d. Unenforceable.
amnesty program and Atty. Guerra
46. The petition for appointment as a notary applied for and was granted amnesty.
public should be filed with: Should the disbarment case be also
dismissed automatically?
a. The Office of the Court
Administrator; a. Yes, because amnesty obliterates
the criminal act.
b. The Clerk of Court;
b. No, disciplinary action on lawyers
c. The MeTC Executive Judge; are sui generis and general penal
principles do not strictly apply.
d. The RTC Executive Judge.
c. No, a lawyer has the duty to
47. What is a retaining lien?
maintain allegiance to the
a. The lawyer who handled the case Republic of the Philippines and
during the trial stage should to support the Constitution and
continue to be retained up to the obey the laws of the Philippines.
appeal.
 d. Yes, if the Secretary of Justice
approves the dismissal.
50. Soon after Atty. Cesar passed the
Philippine Bar in 1975, he also took the
New York State Bar and passed the same.
He practiced law for 25 years in the USA,
but he was disbarred therein for
insurance fraud. He returned to the
Philippines and started to practice law. X,
who knew about his New York
disbarment, filed a disbarment complaint
with the IBP. Decide.
a. The factual basis for the New
York disbarment which is
deceitalso constitutes a ground
for disbarment in the Philippines.
b. The acts complained of
happened in a foreign country
and cannot be penalized here.
c. Norms of ethical behavior of
lawyers are the same worldwide.
d. A lawyer's fitness to become a
lawyer must be maintained
wherever he may be.
You are presented with a hypothetical case trial
scenario plus research materials (provisions of law
and jurisprudence) that you may want to use in
your work. These materials are designed to
provide sufficient basis for your Memorandum. But
you are free to include such laws, rules and
principles not provided that you feel will enhance
your work. Some of these materials may be
irrelevant. Consequently, use your judgment in
writing only what is relevant to the position you
take.
You are given three things: (a) the case trial
scenario, (b) a Draft Pad and (c) Answer Pad. You
are free to jot notes or place helpful markings like
underlines on the case trial scenario and the
enclosed materials. Use the Draft Pad for making a
draft of your Memorandum as this will permit you
to freely edit and rewrite your work. Editing and
rewriting are essential to sound Memorandum
Writing.
You may prefer to skip the preparation of a draft
and write your Memorandum directly on your
Answer Pad. That is allowed.
Quality of writing, not length, is desired.
Corrections even on your final Memorandum on
the Answer Pad are allowed and will not result in
any deduction. Still, it is advised that you write
clearly, legibly and in an orderly manner.
You will not be graded for a technically right or
wrong Memorandum but for the quality of your
legal advocacy.
The test is intended to measure your skills in:
1. communicating in English - 20%;
2. sorting out and extracting the relevant facts -
15%;
3. identifying the issue or issues presented- 15%;
and
4. constructing your arguments in support of your
point of view - 50%.
Mr. Henry Chao is charged before the
Metropolitan Trial Court (MeTC) Manila with five
(5) counts of Violation of Batas Pambansa Big. 22
(B.P. 22). Consider the factual scenario from the
testimonies of complainant Mr. Ben Que and
accused Mr. Henry Chao.
Assume to be the Defense Counsel and prepare a
MEMORANDUM FOR THE ACCUSED for your
client, Mr. Henry Chao.
Testimony of Mr. Ben Que
(After the cases were called for joint trial)
P. Prosecutor   :   Good Morning, Your Honor.
Appearing for the prosecution. Ready.
D. Counsel   :   Good Morning, Your Honor.
Appearing as counsel for the accused. Ready.
P. Prosecutor   :   We are calling to the witness
stand, the complainant, Mr. Ben Que, who will
prove the commission of the offense.
Court Staff   :   Mr. Ben Que, do you swear to tell P. Prosecutor   :   When and where did the accused
the truth, the whole truth and nothing but the execute and hand over to you these five (5)
truth in this proceeding? instruments?

Witness   :   Yes, sir. Witness   :   On June 01, 2011, at my house in
Mandaluyong City, after I gave him in cash
Court Staff   :   State your name, age, status and the P 50,000.00 that he loaned.
other personal circumstances.
P. Prosecutor   :   And where are these instruments
Witness   :   I am Ben Que, 60 years old, married, now?
and a resident of 123 Tridalo Street, Mandaluyong
City Witness   :   Here sir. (Witness handling them to
the prosecutor.)
P. Prosecutor   :   Mr. Que, do you know Mr. Henry
Chao who is the accused in this case and, if so, P. Prosecutor   :   May I manifest for the record the
under what circumstances? observation that the instruments are of the same
size and material as the normal checks and have
Witness   :   Yes, sir. He is the Manager of Atlas these check-like features:
Parts. Last June 01, 2011, accused borrowed from
me the amount of P 50,000.00, with 5°/o monthly
NOW Account
interest, payable in five (5) equal monthly No. 0001
No. 123456
installments of P 12,500.00. He said that the
money will be used to pay for their stocks. Date: July 1,
Atlas Parts
2011
P. Prosecutor   :   Did you execute a document to PAY TO: Mr.
P 12,500.00
evidence your transaction? Ben Que
PESOS: Twelve
Thousand Five  
Witness   :   As per our agreement, he issued and
Hundred Pesos
delivered to me five ( 5) checks.
Sgd. Henry
 
Chao
D. Counsel   :   Your Honor, please. For the record, I
take exception to the statement of the witness Alloy Bank
that he received checks from the accused. If we Pasong Tamo
 
closely examine these instruments, it will show Branch
that they are NOW slips, that is , Negotiable Order Makati
of Withdrawal slips. These are not bills of
exchange within the meaning of the Negotiable P. Prosecutor   :   Do you know whose signature is
Instruments Law, and therefore, cannot be that appearing on the lower right side of this
considered as checks. instrument and all the four (4) others, as well?

P. Prosecutor   :   Your Honor, they are still bank
instruments. Complainant Mr. Que specifically
required the issuance of checks to facilitate and
ensure the payment of the obligation, and the
accused issued and delivered them for that
purpose. Violation of the Bouncing Checks Law is
malum prohibitum. The law was enacted to
maintain faith in bank instruments for utilization in
commercial transactions. We have to apply the
spirit of the law.
COURT   :   Observation noted.
Witness   :   Those are the signatures of the
accused Henry Chao. I personally saw him sign
them and thereafter, handed the five (5)
instruments to me.
P. Prosecutor   :   May I request that No. 0001
dated July 1, 2011 in the amount of P 12,500.00 be
marked as Exhibit A for the prosecution; No. 0002
dated August 1, 2011 also in the same amount as
Exhibit B; No. 0003 dated September 2, 2011 as
Exhibit C; No. 0004 dated October 1, 2011 as
Exhibit D; and No. 0005 dated November 1, 2011
as Exhibit E.

COURT   :   Mark them as requested.

P. Prosecutor   :   What did you do with these
instruments which represented the installment
payments of accused for his loan obligation?
Witness   :   On their respective due dates, I
deposited each of them to my Savings Account at
BOD Bank, Manila City Hall Branch in Manila, but
all of them were dishonored by the drawee, Alloy
Bank, for the reason "Account Closed."
P. Prosecutor   :   What proof do you have that
these instruments were dishonored?
Witness   :   I received several debit advices from
BOD Bank together with the returned slips with a
stamp at the back stating as follows:
DISHONORED/RETURNED
Reason: Account Closed
Officer: Mr. M Witness   :   I assumed that he had received it
P. Prosecutor   :   May I request that the stamps of
dishonor and the reason "Account Closed"
appearing at the back of each instrument be
correspondingly marked as Exhibits A-1 to E-1,
respectively.
COURT   :   Mark them accordingly.
D. Counsel   :   I move to strike out this particular
testimony for being hearsay. This witness is not
competent to testify on these matters pertaining
to bank records.
COURT   :   Does the defense deny that all five (5)
instruments were dishonored and returned to the
witness?
D. Counsel   :   No, Your Honor. But these matters
should be testified on by the bank personnel.
COURT   :   Motion to strike is denied.
P. Prosecutor   :   What action did you take?
Witness   :   After each dishonor, I personally went
to Mr. Chao and demanded that he make good his
commitment, but he merely ignored my demands.
P. Prosecutor   :   What did you do then after all
the five (5) instruments were dishonored and your
demands ignored?
Witness   :   I consulted a lawyer and he advised
me to send a formal demand letter to the accused,
which I did. On January 2, 2012, I sent the letter by
registered mail to Mr. Henry Chao to his office
address at 007 Malugay Street, Malabon City
giving him five (5) days to make good his promise.
Here is the registry receipt.
P. Prosecutor   :   I request that the demand letter
be marked as Exhibit F and that the Registry
Receipt No. 321 dated January 2, 2012 posted at
Mandaluyong City Post Office be marked as Exhibit
G for the prosecution.
COURT   :   Mark it then.
P. Prosecutor   :   Do you know if accused actually
received your letter sent by registered mail?
because the registered letter was not returned to
me.
D. Counsel   :   I take exception to that statement.
Your Honor, because jurisprudence require actual
receipt by the drawer of the demand before any
criminal liability can attach.
P. Prosecutor   :   May I clarify, Your Honor, that
the five (5) days from notice of dishonor given to
the drawer of a check to make arrangement for
payment by the drawee of the amount of the
dishonored checks is to forestall the existence of a
prima facie evidence of knowledge of the
insufficiency of funds. But here, the reason of the
dishonor is "Account Closed," and not just
insufficiency of funds. In short, there is actual
proof of lack of credit with drawee bank. The
account is already closed and accused cannot even
make a deposit anymore.
COURT   :   The manifestation is noted.
P. Prosecutor : Has the accused paid the amounts
covered by the dishonored instruments?
Witness   :   No, sir. He has arrogantly refused to
make any payment.
P. Prosecutor   :   No further questions.
COURT   :   Cross.
D. Counsel   :   With the Court's permission. You
earlier stated that accused Henry Chao is the
Manager of Atlas Parts and that the money
borrowed was used to pay for their stocks, is that
correct?
Witness   :   Yes, sir. That is what he told me.
D. Counsel   :   So, it is clear that the money loaned
from you was not used by the accused for his
benefit?
Witness   :   I do not know how he used it. The fact
is that I lent the money to him.
D. Counsel   :   Regarding the demand letter that
you allegedly sent to accused, do you have the
registry return card showing that accused received
the letter?
Witness   :   No, sir. But I have the registry receipt.
Since the letter was not returned to sender, it is
presumed that it was received by the addressee.
D. Counsel   :   Is it not a fact that you have filed
another collection suit against Atlas Parts seeking
to recover the same P 50,000.00 covered by the
dishonored slips?
Witness   :   Yes, sir. That is true because I want to
recover my money from either of them.
D. Counsel   :   No further questions, Your Honor.
Testimony of Mr. Henry Chao
(After oath and formal of fer of testimony.)
D. Counsel   :   Do you own NOW Account No.
123456 maintained at Alloy Bank, Pasong Tamo
Branch?
Witness   :   No, sir. That is owned by my employer
Atlas Parts and, as the Manager, I am the
signatory.
D. Counsel   :   Mr. Chao, in June 2011 when you
issued the dishonored NOW slips, did you derive
any personal benefit from the amount loaned?
Witness   :   No, sir. The money was used to pay an
account payable.
D. Counsel   :   During the due dates of the NOW
slips that you issued to Mr. Que, were you still the
Manager of Atlas Parts?
Witness   :   Not anymore, sir, because in the
middle of June 2011, I resigned as Manager, and I
was not aware of the dishonor.
D. Counsel   :   Did you receive the demand letter
sent to you by Mr. Que after the dishonor?
Witness   :   No, sir.
COURT   :   Cross?
P. Prosecutor   :   With the kind permission of the
Court. Mr. Chao, is it not a fact that Mr. Que
specifically required you to issue checks to pay the
monthly installment of the loan?
Witness   :   Yes, sir.
P. Prosecutor   :   You will agree with me that
without those five (5) checks, or NOW slips as you
call them, Mr. Que will not lend money to you?
Witness   :   Yes, sir.
P. Prosecutor   :   You will also agree that the
demand letter of Mr. Que was delivered to yo'ur
office address because that is the address that you
gave to Mr. Que in connection with your
transaction?
Witness : Yes, sir. That is possible, but I was not
able to receive it because I had already resigned
and I could not do anything anymore.
P. Prosecutor   :   That is all, Your Honor.
LAWS AND JURISPRUDENCE
A. BATAS PAMBANSA BLG. 22
AN ACT PENALIZING THE MAKING OR DRAWING
AND ISSUANCE OF A CHECK WITHOUT SUFFICIENT
FUNDS OR CREDITS AND FOR OTHER PURPOSES.
Section 1. Checks without sufficient funds. - Any
person who makes or draws and issues any check
to apply on account or for value, knowing at the
time of issue that he does not have sufficient funds
in or credit with the drawee bank for the payment
of such check in full upon its presentment, which
check is subsequently dishonored by the drawee
bank for insufficiency of funds or credit or would
have been dishonored for the same reason had
not the drawer, without any valid reason, ordered
the bank to stop payment, shall be punished by
imprisonment of not less than thirty (30) days but
not more then one (1) year or by a fine of not less
than but not more than double the amount of the
check which fine shall in no case exceed Two
Hundred Thousand Pesos, or both such fine and
imprisonment at the discretion of the court.
The same penalty shall be imposed upon any
person who, having sufficient funds in or credit
with the drawee bank when he makes or draws
and issues a check, shall fail to keep sufficient
funds or to maintain a credit to cover the full
amount of the check if presented within a period
of ninety (90) days from the date appearing
thereon, for which reason it is dishonored by the
drawee bank.
Where .the check is drawn by a corporation,
company or entity, the person or persons who
actually signed the check in behalf of such drawer
shall be liable under this Act.
Section 2. Evidence of knowledge of insufficient
funds. - The making, drawing and issuance of a
check, payment of which is refused by the drawee
because of insufficient funds in or credit with such
bank when presented within ninety (90) days from
the date of the check, shall be prima facie
evidence of knowledge of such insufficiency of
funds or credit unless such maker or drawer pays
the holder thereof the amount due thereon, or
makes arrangements for payment in full by the
drawee of such check within five (5) banking days
after receiving notice that such check has not been
paid by the drawee.
Section 3. Duty of drawee; rules of evidence. - It
shall be the duty of the drawee of any check, when
refusing to pay the same to the holder thereof
upon presentment, to cause to be written, printed,
or stamped in plain language thereon, or attached
thereto, the reason for drawee's dishonor or
refusal to pay the same. Provided, that where
there are no sufficient funds in or credit with such
drawee bank, such fact shall always be explicitly
stated in the notice of dishonor or refusal. In all
prosecutions under this Act, the introduction in
evidence of any unpaid and dishonored check,
having 'the drawee's refusal to pay stamped or
written thereon or attached thereto, with the
reason therefor as aforesaid, shall be prima facie
evidence of the making or issuance of said check,
and the due presentment to the drawee for
payment and the dishonor thereof, and that the
same was properly dishonored for the reason
written, stamped or attached by the drawee on
such dishonored check.
Notwithstanding receipt of an order to stop
payment, the drawee shall state in the notice that
there were no sufficient funds in or credit with
such bank for the payment in full of such check, if
such be the fact.
B. NEGOTIABLE INSTRUMENTS LAW
ACT NO. 2031
AN ACT ENTITLED "THE NEGOTIABLE
INSTRUMENTS LAW."
Section 1. Form of negotiable instruments. - An
instrument to be negotiable must conform to the
following requirements:
(a) It must be in writing and signed by the maker or
drawer;
(b) Must contain an unconditional promise or
order to pay a sum certain in money;
(c) Must be payable on demand, or at a fixed or
determinable future time;
(d) Must be payable to order or to bearer; and
(e) Where the instrument is addressed to a
drawee, he must be named or otherwise indicated
therein with reasonable certainty.
Section 126. Bill of exchange, defined. - A bill of
exchange is an unconditional order in writing
addressed by one person to another, signed by the
person giving it, requiring the person to whom it is
addressed to pay on demand or at a fixed or
determinable future time a sum certain in money
to order or to bearer.
Section 185. Check, defined. - A check is a bill of
exchange drawn on a bank payable on demand.
Except as herein otherwise provided, the
provisions of this Act applicable to a bill of
exchange payable on demand apply to a check.
C. RULES OF COURT
RULE 132
Section 34. Offer of evidence. - The court shall
consider no evidence which has not been formally
offered. The purpose for which the evidence is
offered must be specified.
Section 35. When to make offer. - As regards the
testimony of a witness, the offer must be made at
the time the witness is called to testify.
Documentary and object evidence shall be offered
after the presentation of a party's testimonial
evidence. Such offer shall be done orally unless
allowed by the court to be done in writing.
JURISPRUDENCE
Isip vs. People
G. R. No. 170298, June 26, 2007, 525 SCRA 735
The concept of venue of actions in criminal cases,
unlike in civil cases, is jurisdictional. The place
where the crime was committed determines not
only the venue of the action but is an essential
element of jurisdiction. It is a fundamental rule
that for jurisdiction to be acquired by courts in
criminal cases, the offense should have been
committed or any one of its essential ingredients
should have taken place within the territorial
jurisdiction of the court. Territorial jurisdiction in
criminal cases is the territory where the court has
jurisdiction to take cognizance or to try the offense
allegedly committed therein by the accused. Thus,
it cannot take jurisdiction over a person charged
with an offense 13llegedly committed outside of
that limited territory. Furthermore, the jurisdiction
of a court over the criminal case is determined by
the allegations in the complaint or information.
And once it is so shown, the court may validly take
cognizance of the case. However, if the evidence
adduced during the trial shows that the offense
was committed somewhere else, the court should
dismiss the action for want of jurisdiction.
Alferez vs. People
G.R. No. 182301, January 31, 2011, 641 SCRA 116
In this case, the prosecution merely presented a
copy of the demand letter, together with the
registry receipt and the return card allegedly sent
to petitioner. However, there was no attempt to
authenticate or identify the signature on the
registry return card. Receipts for registered letters
and return receipts do not by themselves prove
receipt ; they must be properly authenticated to
serve as proof of receipt of the letter, claimed to
be a notice of dishonor. To be sure, the
presentation of the registry card with an
unauthenticated signature, does not meet the
required proof beyond reasonable doubt that
petitioner received such notice. It is not enough
for the prosecution to prove that a notice of
dishonor was sent to the drawee of the check ..
The prosecution must also prove actual receipt of
said notice, because the fact of service provided
for in the law is reckoned from receipt of such
notice of dishonor by the drawee of the check. The
burden of proving notice rests upon the party
asserting its existence. Ordinarily, preponderance
of evidence is sufficient to prove notice. In criminal
cases, however, the quantum of proof required is
proof beyond reasonable doubt. Hence, for B. P.
Big. 22 cases, there should be clear proof of notice.
Moreover, for notice by mail, it must appear that
the same was served on the addressee or a duly
authorized agent of the addressee. From the
registry receipt alone, it is possible that petitioner
or his authorized agent did receive the demand
letter. Possibilities, however, cannot replace proof
beyond reasonable doubt. The consistent rule is
that penal statutes have "to be construed strictly
against the State and liberally in favor of the
accused. The absence of a notice of dishonor
necessarily deprives the accused an opportunity to
preclude a criminal prosecution. As there is
insufficient proof that petitioner received the
notice of dishonor, the presumption that he had
knowledge of insufficiency of funds cannot arise.
Lozano vs. Hon. Martinez
G.R. Nos. L-63419, L-66839-42, L-71654, L-74524-
25, L-75122-49, L-75812-13, L-75765-67 and L-
75789, December 18, 1986, 146 SCRA 323
The gravemen of the offense punished by B.P. 22 is
the act of making and issuing a worthless check or
a check that is dishonored upon its presentation
for payment. It is not the non-payment of an
obligation which the law punishes. The law is not
intended or designed to coerce a debtor to pay his
debt. The thrust of the law is to prohibit, under
pain of penal sanctions, the making of worthless
checks and putting them in circulation. Because of
its deleterious effects on the public interest, the
practice is proscribed by law. The law punishes the
act not as an offense against property, but an
offense against public order.
Ambito vs. People
G.R. No. 127327, February 13, 2009, 579 SCRA 69
The mere act of issuing· a worthless check - whether or not the signatory had signed the check
whether as a deposit, as a guarantee or even as with knowledge of the insufficiency of funds or
evidence of pre-existing debt - is malum credit in the bank account, while in the civil case
prohibitum. the trial court should ascertain whether or not the
obligation itself is valid and demandable. The
Under B.P. Big. 22, the prosecution must prove not litigation
only that the accused issued a check that was
subsequently dishonored. It must also establish of both questions could, in theory, proceed
that the accused was actually notified that the independently and simultaneously without being
check was dishonored, and that he or she failed, ultimately conclusive on one or the other.
within five (5) banking days from receipt of the
notice, to pay the holder of the check the amount
due thereon or to make arrangement for its
payment. Absent proof that the accused received
such notice, a prosecution for violation of the
Bouncing Checks Law cannot prosper.

The absence of a notice of dishonor necessarily

deprives an accused an opportunity to preclude a
criminal prosecution. Accordingly, procedural due
process clearly enjoins that a notice of dishonor be
actually sent to and received by the accused. The
accused has a right to demand - and the basic
postulates of fairness require-- that the notice of
dishonor be actually sent to and received by the
same to afford him/her the opportunity to avert
prosecution under B.P. Big. 22.

Gosiaco vs. Ching

G.R. No. 173807, April 16, 2009, 585 SCRA 471

B.P. Big. 22 imposes a distinct civil liability on the

signatory of the check which is distinct from the
civil liability of the corporation for the amount
represented from the check. The civil liability
attaching to the signatory arises from the wrongful
act of signing the check despite the insufficiency of
funds in the account, while the civil liability
attaching to the corporation is itself the very
obligation covered by the check or the
consideration for its execution. Yet these civil
liabilities are mistaken to be indistinct. The
confusion is traceable to the singularity of the
amount of each.

If we conclude, as we should, that under the

current Rules of Criminal Procedure, the civil
action that is impliedly instituted in the B.P. Big. 22
action is only the civil liability of the signatory, and
not that of the corporation itself, the distinctness
of the cause of action against the signatory and
that against the corporation is rendered beyond
dispute. It follows that the actions involving these
liabilities should be adjudged according to their
respective standards and merits. In the . B. P. Big.
22 case, what the trial court should determine is
 d. the witness volunteers
information not sought by the
examiner.

4. In default of parents, the court may

appoint a guardian for a minor giving first
preference to:

a. an older brother or sister who is

over 18 years old.

b. the actual custodian over 21

years old.

c. a paternal grandparent

d. an uncle or aunt over 21 years

old.
1. In settlement proceedings, appeal may be
5. In real actions, the docket and filing fees
taken from an:
are based on:
a. order appointing a special
a. fair market value of the property.
administrator;
b. assessed value of the property.
b. order appointing an
administrator; c. SIR zonal value of the property.
c. order of an administrator to d. fair market value of the property
recover property of the estate; and amount of damages claimed.
d. order to include or exclude 6. X filed a motion for Bill of Particulars,
property from the estate. after being served with summons and a
copy of the complaint However, X's
2. Under the Rules on the Writ of Amparo,
motion did not contain a notice of
interim relief orders may be issued by the
hearing. The court may therefore:
Court except:
a. require the clerk of court to
a. production order;
calendar the motion.
b. witness protection order;
b. motu proprio dismiss the motion
c. hold departure order; for not complying with Rule 15.

d. temporary protection order. c. allow the parties the opportunity

to be heard.
3. A narrative testimony is usually objected
to but the court may allow such d. return the motion to X's counsel
testimony if: for amendment.

a. it would expedite trial and give 7. A wants to file a Petition for Writ of
the court a clearer Habeas Data against the AFP in
understanding of the matters connection with threats to his life
related; allegedly made by AFP intelligence
officers. A needs copies of AFP highly
b. the witness is of advanced age; classified intelligence reports collected by
c. the testimony relates to family Sgt. Santos who is from AFP. A can file his
genealogy; petition with:

a. RTC where AFP is located;

 b. RTC where Sgt. Santos resides; d. 120.

c. Supreme Court; 12. An accused may move for the suspension

of his arraignment if:
d. Court of Appeals.
a. a motion for reconsideration is
8. W was arrested in the act of committing a
pending before the investigating
crime on October 1, 2011. After an
prosecutor.
inquest hearing, an information was filed
against W and his lawyer learned of the b. accused is bonded and his
same on October 5, 2011. W wants to file bondsman failed to notify him of
a motion for preliminary investigation and his scheduled arraignment.
therefore he has only up to _____ to file
c. a prejudicial question exists.
the same.
d. there is no available public
a. October 20, 2011;
attorney.
b. October 10, 2011;
13. P failed to appear at the promulgation of
c. November 15, 2011; judgment without justifiable cause. The
judgment convicted P for slight physical
d. October 16, 2011.
injuries. Judgment may therefore be
9. Preliminary Prohibitive Injunction will not promulgated in the following manner:
lie:
a. By the reading of the judgment
a. to enjoin repeated trespass on in the presence of only the
land. judge.

b. in petitions for certiorari and b. By the clerk of court in the

mandamus. presence of P's counsel.

c. to restrain implementation of c. By the clerk of court in the

national government presence of a representative of
infrastructure project. P.

d. to restrain voting of disputed d. By entering the judgment into

shares of stock. the criminal docket of the court.

10. A defendant who fails to file a timely 14. Being declared in default does not
Answer or responsive pleading will not be constitute a waiver of all rights. However,
declared in default in: the following right is considered waived:

a. probate proceedings where the a. be cited and called to testify as a

estate is valued at P 1 00,000; witness

b. forcible entry cases; b. file a motion for new trial

c. collection case not c. participate in deposition taking

exceeding P 100,000; of witnesses of adverse party

d. violation of rental law. d. file a petition for certiorari

11. The validity of a search warrant is days: 15. At arraignment, X pleads not guilty to a
Robbery charge. At the pretrial, he
a. 15; changes his mind and agrees to a plea
bargaining, with the conformity of the
b. 30;
prosecution and offended party, which
c. 60; downgraded the offense to theft. The
Court should therefore:
 a. render judgment based on the
change of plea.
b. allow the withdrawal of the
earlier plea and arraign X for
theft and render judgment.
c. receive evidence on the civil
liability and render judgment.
d. require the prosecution
amend the information.
19. RTC decides an appeal from the MTC
involving a simple collection case. The
decision consists of only one page
because it adopted by direct reference
the findings of fact and conclusions of law
set forth in the MTC decision. Which
statement is most accurate?
a. The RTC decision is valid because
to it was issued by a court of
competent jurisdiction.

16. A criminal case should be instituted and b. The RTC decision is valid because
tried in the place where the offense or it expedited the resolution of the
any of the essential elements took place, appeal.
except in:
c. The RTC decision is valid because
a. Estafa cases; it is a memorandum decision
recognized by law.
b. Complex crimes;
d. The RTC decision is valid because
c. Cases cognizable by the it is practical and convenient to
Sandiganbayan; the judge and the parties.
d. Court martial cases. 20. The filing of a complaint with the Punong
Barangay involving cases covered by the
17. X was charged for murder and was issued
Katarungang Pambarangay Rules shall:
a warrant of arrest. X remains at large but
wants to post bail. X's option is to: a. not interrupt any prescriptive
period.
a. file a motion to recall warrant of
arrest; b. interrupt the prescriptive period
for 90 days.
b. surrender and file a bail petition;
c. interrupt the prescriptive period
c. file a motion for reinvestigation;
for 60 days.
d. file a petition for review with the
d. interrupt the prescriptive period
OOJ.
not exceeding 60 days.
18. The Energy Regulatory Commission (ERC)
21. In a declaratory relief action, the court
promulgates a decision increasing
may refuse to exercise its power to
electricity rates by 3%. KMU appeals the
declare rights and construe instruments in
decision by way of petition for review.
what instance/s?
The appeal will therefore:
a. When a decision would not
a. stay the execution of ERC
terminate the controversy which
decision.
gave rise to the action.
b. shall not stay the ERC decision
b. In an action to consolidate
unless the Court of Appeals
ownership under Art. 1607 of the
directs otherwise.
Civil Code.
c. stay the execution of the ERC
c. To establish legitimate filiation
decision conditioned on KMU
and determine hereditary rights.
posting a bond.
d. (a) and (c) above
d. shall not stay the ERC decision.
22. In election cases involving an act or b. Conclusiveness of judgment;
omission of an MTC or RTC, a certiorari
c. Res Judicata;
petition shall be filed with:
d. Stare decisis.
a. The Court of Appeals
26. When a party or counsel willfully or
b. The Supreme Court
deliberately commits forum shopping, the
c. The COMELEC initiatory pleading may:

d. The Court of Appeals or the a. be cured by amendment of the

COMELEC both having complaint.
concurrent jurisdiction
b. upon motion, be dismissed with
23. A charge for indirect contempt committed prejudice.
against an RTC judge may be commenced
c. be summarily dismissed with
through:
prejudice as it may constitute
a. A written charge requiring direct contempt.
respondent to show cause filed
d. be stricken from the record.
with the Court of Appeals.
27. Equity of Redemption is the right of the
b. An order of the RTC Judge
mortgagor to redeem the mortgaged
requiring respondent to show
property after default in the performance
cause in the same RTC.
of the conditions of the mortgage, before
c. Verified petition filed with the sale or the confirmation of sale in
another branch of the RTC. a(n):

d. Verified petition filed with a a. extrajudicial foreclosure of

court of higher or equal rank mortgage.
with the RTC.
b. judicial foreclosure of mortgage.
24. The statute of "non-claims" requires that:
c. execution sale.
a. claims against the estate be
d. foreclosure by a bank.
published by the creditors.
28. X and Y, both residents of Bgy. II,
b. money claims be filed with the
Sampaloc, Manila entered into
clerk of court within the time
a P 100,000 loan agreement. Because Y
prescribed by the rules.
defaulted, X sued Y for collection and the
c. claims of an executor or complainant prayed for issuance of
administrator against the estate preliminary attachment. Y moved to
be filed with the special dismiss the complaint because there was
administrator. no Barangay conciliation. The court
should therefore:
d. within two (2) years after
settlement and distribution of a. dismiss X's complaint for
the estate, an heir unduly prematurity.
deprived of participation in the
b. dismiss X's complaint for lack of
estate may compel the re-
cause of action.
settlement of the estate.
c. deny Y's motion because it is
25. A judicial compromise has the effect of
exempt from Barangay
_______ and is immediately executory
conciliation.
and is not appealable.

a. Estoppel;
 d. deny Y's motion because of the d. it proves that such a statement
amount of the loan. was made.

29. X was shot by Y in the course of a 33. A complaint may be dismissed by the
robbery. On the brink of death, X told W, plaintiff by filing a notice of dismissal:
a barangay tanod, that it was Y who shot
a. At anytime after service of the
and held him up. In the trial for robbery
answer.
with homicide, X's declaration can be
admitted only as a dying declaration: b. At anytime before a motion of
summary judgment is filed.
a. to prove robbery.
c. At the pre-trial.
b. to prove homicide.
d. Before the complaint is
c. to prove robbery and homicide.
amended.
d. to prove the "corpus delicti".
34. In a criminal case for violation of a city
30. Which of the following is not a Special ordinance, the court may issue a warrant
Proceeding? of arrest:

a. Absentees; a. for failure of the accused to

b. Escheat;
c. Change of First Name;
d. Constitution of Family Home;
31. Atty. X fails to serve personally a copy of
his motion to Atty. Y because the office
and residence of Atty. Y and the latter's
client changed and no forwarding
addresses were given. Atty. X's remedy is
to:
a. Serve by registered mail;
b. Serve by publication;
c. Deliver copy of the motion to the
clerk of court with proof of
failure to serve;
d. Certify in the motion that
personal service and through
mail was impossible.
32. When caught, X readily admitted to the
Forestry Ranger that he cut the trees.
Such a statement may be admitted and is
not necessarily hearsay because:
a. it is a judicial admission of guilt.
b. it shows the statement was true.
c. it will form part of the
circumstantial evidence
convict.
submit his counter-affidavit.
b. after finding probable cause
against the accused.
c. for failure of the accused to post
bail.
d. for non-appearance in court
whenever required.
35. Under the Katarungan Pambarangay
rules, the execution of an amicable
settlement or arbitration award is started
by filing a motion for execution with the
Punong Barangay, who may issue a notice
of execution in the name of the Lupon
Tagapamayapa. Execution itself, however,
will be done by:
a. a court-appointed sheriff.
b. any Barangay Kagawad.
c. Punong Barangay.
d. any member of the Pangkat ng
Tagapagsundo.
36. If the judgment debtor dies after entry of
judgment, execution of a money
judgment may be done by:
a. presenting the judgment as a
claim for payment against the
to estate in a special proceeding.
 b. filing a claim for the money
judgment with the special
administrator of the estate of the
debtor.
c. filing a claim for the money
judgment with the debtor's
successor in interest.
d. move for substitution of the
heirs of the debtor and secure a
writ of execution.
37. The Director of the BFAR launches an
intensified campaign against illegal
fishpen operators situated in Laguna de
Bay. The illegal fishpen operators file a
Section 3 (e), R.A. 3019 (causing undue
injury or benefit) case against the BFAR
Director before the Sandiganbayan. The
Director's best remedy before
Sandiganbayan is:
a. file a Motion to Quash based on
lack of jurisdiction over the
person.
b. file a Motion to Quash for non-
exhaustion of administrative
remedies.
c. file a Motion to Dismiss because
the complaint is a SLAPP suit.
d. move for suspension of
proceedings because of a pre-
judicial question.
38. A complaint may be refiled if dismissed on
which of the following grounds?
a. unenforceable under the Statute
of Frauds;
b. Res Judicata;
c. Litis Pendencia;
d. Lack of jurisdiction.
39. The following are accurate statements on
joinder of causes of action, except:
a. joinder of actions avoids
multiplicity of suits.
b. joinder of actions may include
special civil actions.
c. joinder of causes of action is
permissive.
d. the test of jurisdiction in case of
money claims in a joinder of
causes of act1on, is the "totality
rule".
40. W, a legal researcher in the RTC of
Makati, served summons on an amended
complaint on Z at the latter's house on a
Sunday. The service is invalid because:
a. it was served on a Sunday.
b. the legal researcher is not a
"proper court officer".
c. (a) and (b) above
d. there is no need to serve
summons on an amended
complaint.
41. After a plea of not guilty is entered, the
accused shall have _____ days to prepare
for trial.
a. 15;
b. 10;
c. 30;
d. None of the above.
42. The following motions require a notice of
hearing served on the opposite party,
except:
a. Motion to Set Case for Pre-trial;
b. Motion to take deposition;
c. Motion to correct TSN;
d. Motion to postpone hearing.
43. Which of the following statements is
incorrect?
a. A Motion to Quash which is
granted is a bar to the
prosecution for the same offense
if the criminal action or liability
has been extinguished.
b. In the Court of Appeals, the
accused may file a motion for
 new trial based only on newly
discovered evidence.
c. A demurrer to evidence may be
filed without leave of court in a
criminal case.
b. evidence that it was digitally
signed by the person who
purportedly signed the same.
c. evidence that it contains
electronic data messages.

d. None of the above. d. evidence that a method or

process was utilized to verify the
44. Which of the following is true?
same.
a. Summons expires after 5 days
48. Atty. A drafts a pleading for his client 8
from issue.
wherein B admits certain facts prejudicial
b. Writ of Execution expires after to his case. The pleading was never filed
10 days from issue. but was signed by Atty. A. Opposing
counsel got hold of the pleading and
c. Search Warrant expires after 20 presents the same in court. Which
days from issue. statement is the most accurate?
d. Subpoena expires after 30 days a. The prejudicial statements are
from issue. not admissible because the
unfiled document is not
45. A person may be charged with direct
considered a pleading.
contempt of court when:
b. The prejudicial statements are
a. A person re-enters a property he
not admissible because the client
was previously ejected from.
did not sign the pleading.
b. A person refuses to attend a
c. The prejudicial statements are
hearing after being summoned
not admissible because these
thereto.
were not made by the client in
c. He attempts to rescue a property open court.
in custodia legis.
d. The prejudicial statements are
d. She writes and submits a not admissible because these
pleading containing derogatory, were made outside the
offensive or malicious proceedings.
statements.
49. Under the Rules on Examination of a child
46. Under the Rules of Electronic Evidence, witness, a child witness is one:
"ephemeral electronic conversation"
a. who is 18 years of age or below
refers to the following, except:
at the time of testifying.
a. text messages;
b. who is below 18 years of age at
b. telephone conversations; the time of the incident/crime to
be testified on.
c. faxed document;
c. who is below 18 years of age at
d. online chatroom sessions; the time of the giving of
47. A private electronic document's testimony.
authenticity may be received in evidence d. who is 18 years of age in child
when it is proved by: abuse cases.
a. evidence that it was 50. In which of the following is Interpleader
electronically notarized. improper?
 a. in an action where defendants'
respective claims are separate
and distinct from each other.
b. in an action by a bank where the
purchaser of a cashier's check
claims it was lost and another
person has presented it for
payment.
c. in an action by a lessee who does
not know where to pay rentals
due to conflicting claims on the
property.
d. in an action by a sheriff against
claimants who have conflicting
claims to a property seized by
the sheriff in foreclosure of a
chattel mortgage.
51. The Parole Evidence Rule applies to:
a. subsequent agreements placed
on issue.
b. written agreements or
contractual documents.
c. judgment on a compromise
agreement.
d. will and testaments.
52. PDEA agents conducted a search on a
house abandoned by its owners in
Quezon City. The search, in order to be
valid, must be made in the presence of:
a. any relative of the owner of the
house.
b. the Director of the PDEA and a
member of the media.
c. the Barangay Chairman and a
Barangay Tanod.
d. any elected Quezon City official.
53. A judge of an MTC can hear and decide
petitions for habeas corpus or
applications for bail where:
a. the Supreme Court authorizes
the MTC.
b. the judge is the Executive Judge
of the MTC.
c. the judge of the RTC where the
case is raffled has retired, was
dismissed or had died.
d. in the absence of all the RTC
Judges in the province or city.
54. Proof of service of summons shall be
through the following, except :
a. written return of the sheriff;
b. affidavit of the person serving
summons;
c. affidavit of the printer of the
publication;
d. written admission of the party
served.
55. As a mode of discovery, the best way to
obtain an admission from any party
regarding the genuineness of any material
and relevant document is through a:
a. motion for production of
documents.
b. written interrogatories.
c. request for admission under Rule
26.
d. request for subpoena duces
tecum.
56. A judgment "non pro tunc" is one which:
a. dismisses a case without
prejudice to it being re-filed.
b. clarifies an ambiguous judgment
or a judgment which is difficult
to comply with.
c. one intended to enter into the
record the acts which already
have been done, but which do
not appear in the records.
d. is a memorandum decision.
57. The Sandiganbayan can entertain a quo
warranto petition only in:
a. cases involving public officers
with salary grade 27 or higher.
 b. only in aid of its appellate d. reclusion perpetua is imposed
jurisdiction. and the accused fails to appeal.

c. as a provisional remedy. 62. After a hearing on a Motion to Dismiss,

the court may either dismiss the case or
d. cases involving "ill gotten
deny the same or:
wealth".
a. defer resolution because the
58. The judgment in a criminal case may be
ground relied upon 1s not
promulgated by the following, except by:
indubitable.
a. a Sandiganbayan justice in cases
b. order amendment of the
involving anti-graft laws.
pleading
b. a Clerk of Court of the court
c. conduct a preliminary hearing
which rendered judgment.
d. None of the above.
c. an Executive Judge of a City
Court if the accused is detained 63. Under Rule 52, a Second Motion for
in another city. Reconsideration is a prohibited pleading.
However,· where may such Motion be
d. any judge of the court in which it
allowed?
was rendered.
a. the Sandiganbayan;
59. Leave of court is always necessary in:
b. the Office of the President;
a. a demurrer to evidence in a civil
case. c. the Supreme Court;

b. a demurrer to evidence in a d. None of the above.

criminal case.
64. The mortgage contract between X, who
c. motion to amend a complaint. resides in Manila, and Y, who resides in
Naga, covering land in Quezon provides
d. third party complaint.
that any suit arising from the agreement
60. Correctly complete the sentence: A lone may be filed "nowhere else but in a
witness --- Makati court". Y must thus sue only in:

a. is credible only if corroborated. a. Makati;

b. is never credible. b. Makati and/or Naga;

c. may be believed even if not c. Quezon and/or Makati;

corroborated.
d. Naga.
d. is always credible.
65. Immediately after the witness had been
61. A judgment of conviction in a criminal sworn in to testify, without any formal
case becomes final when: offer of his testimony, Atty. A started
asking questions on direct examination to
a. accused orally waived his right to the witness. The court may still consider
appeal. his testimony if:
b. accused was tried in absentia a. the formal offer is done after the
and failed to appear at the direct testimony.
promulgation.
b. the opposing counsel did not
c. accused files an application for object.
probation.
c. the witness is an expert witness.
 d. the opposing counsel offered to a. annulment of marriage.
stipulate on the testimony given.
b. legal separation.
66. A private document may be considered as
c. cases where a party willfully fails
evidence when it is sequentially:
to appear before the officer who
a. marked, identified, is to take his deposition.
authenticated.
d. declaration of nullity of marriage.
b. identified, marked and offered in
70. Which of the following statements is not
evidence.
accurate?
c. marked, identified,
a. A plea of guilty later withdrawn
authenticated and offered in
is admissible 1n evidence against
evidence.
the accused who made the plea.
d. marked, authenticated and
b. An unaccepted offer of a plea of
offered in evidence.
guilty to a lesser offense is
67. The Court of Appeals cannot issue a inadmissible in evidence against
temporary restraining order in the the accused.
following cases·, except:
c. An offer to pay or payment of
a. bidding and awarding of a medical expenses arising from
project of the national injury is not evidence or proof of
government. civil/criminal liability for the
Injury.
b. against any freeze order issued
by the AMLC under the d. In civil cases, an offer of
antimoney laundering law. compromise by the accused is
admissible as an implied
c. against infrastructure projects
admission of guilt.
like the SLEX extension.
71. Under the Rules on Evidence, the
d. against the DAR in the
following is a conclusive presumption and
implementation of the CARL Law.
therefore cannot be contradicted by
68. Choose the most accurate phrase to evidence.
complete the statement: Mandamus will
a. A person intends the ordinary
lie ---
consequences of his voluntary
a. to compel a judge to consolidate act.
trial of two cases pending before
b. Official duty has been regularly
different branches of the court.
performed.
b. to compel a judge to reduce his
c. A tenant cannot deny his
decision in writing.
landlord's title during the
c. to direct a probate court to tenancy period.
appoint a particular person as
d. A writing is truly dated.
regular administrator.
72. Cesar, age 16, a habitual offender, was
d. to compel a judge to grant or
caught in possession of .001 grams of
deny an application for
marijuana. He was charged for violation
preliminary injunction.
of Sec. 16 of R.A. 9165, The
69. A judgment by default can be issued Comprehensive Dangerous Drugs Law.
despite an Answer being filed in: The court which has jurisdiction is:

a. the MTC;
 b. the RTC; d. a Motion for Reconsideration is
filed with respect to a decision
c. Special Drugs Court;
disallowing probate of a will.
d. Family Court.
77. A defendant declared in default may,
73. A court can motu proprio dismiss a case after judgment but before finality, file a:
on the following grounds, except :
a. Petition for Relief from
a. failure to prosecute; Judgment;

b. lack of jurisdiction over the b. Petition for Certiorari;

parties;
c. Motion for Reconsideration;
c. litis pendentia;
d. Motion to Set Aside Order of
d. prescription. Default.

74. A person entitled to the estate of a 78. With leave of court, a party may amend
deceased person escheated in favor of his pleading if:
the State has:
a. there is yet no responsive
a. 5 years from date of judgment to pleading served.
file a claim.
b. the amendment is unsubstantial.
b. 2 years from date of judgment to
c. the amendment involves clerical
file a claim.
errors of defect in the
c. 5 years from date of registration designation of a party.
of the judgment to file a claim.
d. the amendment is to conform to
d. 2 years from date of registration the evidence.
of the judgment to file a claim.
79. When a Motion to Quash search warrant
75. The MTC, acting as an Environmental is denied, the best remedy is:
Court, has original and exclusive
a. appeal the denial order.
jurisdiction over the following, except:
b. file a motion to suppress
a. criminal offenses punishable
evidence.
under the Chain Saw Act (R.A.
9175) c. file an injunction suit.

b. violation of the NIPAS Law (R.A. d. file a certiorari petition.

7586)
80. A court may take judicial notice of:
c. violation of the Mining Laws
a. the Twitter account of President
d. violation of Anti-Pollution Laws Aquino.

76. A special administrator may be appointed b. a Committee Report issued by

by a court when: the Congressional Committee on
Labor Relations.
a. the executor cannot post a bond.
c. the effects of taking aspirin
b. the executor fails to render an
everyday.
account.
d. the arbitral award issued by
c. regular administrator has a claim
International Court of
against estate he represents.
Arbitration.
81. The case of R, who is under detention, b. disallow the revocation.
was raffled to the RTC on March 1. His
c. refer the petition to the DSWD.
arraignment should be set not later than:
d. grant the petition after hearing.
a. March 4;
85. Sandiganbayan exercises concurrent
b. March 16;
jurisdiction with the Supreme Court and
c. March 30; the Court of Appeals over:

d. March 11. a. Petitions for Writ of Certiorari

and Prohibition;
82. After the DOJ Secretary granted accused's
Petition for Review, the prosecution filed b. Petitions for Writ of Habeas
a motion to withdraw the Information Corpus;
before the trial court. The judge therein
c. Petitions for Quo Warranto;
denied the same. The trial prosecutor
manifested before the judge that he can d. Petitions for Writ of Amparo and
no longer prosecute the case because he Habeas Corpus.
is only an alter ego of the DOJ Secretary
who ordered him to withdraw the 86. C, a convict, was able to get favorable
Information. The case should therefore be results of a post-conviction DNA testing
prosecuted by: showing that C could not have committed
the crime. To gain freedom, C may:
a. a DOJ state prosecutor.
a. file a petition for Writ of Habeas
b. private prosecutor, if any. Corpus before the court of
origin.
c. trial prosecutor of the pairing
court. b. apply for full pardon.
d. the same trial prosecutor who c. file a Motion to annul judgment
manifested his inability to of conviction on the ground of
prosecute the case. fraud.
83. A decision or resolution of a division of d. file a Motion for new trial under
the Supreme Court when concurred in by Rule 121.
members who actually took part in the
deliberation on the issues in a case and 87. X filed a complaint with the RTC through
voted thereon, is a decision or resolution ABC, a private letter forwarding agency.
of the Supreme Court. The date of filing of the complaint shall
be:
a. three (3);
a. the date stamped by ABC on the
b. five(S); envelope containing the
complaint.
c. eight (8);
b. the date of receipt by the Clerk
d. ten (10).
of Court.
84. A and B adopted their nephew. They filed
c. the date indicated by the
an action for revocation of the adoption
receiving clerk of ABC.
on May 1, 1998 on the ground that their
nephew neglected them. Based on the d. the date when the case is
Rules of Domestic Adoption, the judge officially raffled.
must:
88. An objection to any interrogatories may
a. advise A and B to just disinherit be presented within_ days after service
the nephew. thereof:
 a. 15; issue of the preliminary
injunction.
b. 10;
92. Witness A was examined on direct
c. 5;
examination by the prosecutor. The
d. 20. defense counsel however employed
dilatory tactics and was able to secure
89. The deposition of a witness, whether or numerous postponements of A's cross
not a party, may be used for any purpose examination. A suffered a stroke and
if the Court finds the following became incapacitated. His uncompleted
circumstances are attendant, EXCEPT: testimony may therefore be:
a. when the witness is dead. a. ordered stricken from the
record.
b. when the witness is incarcerated.
b. allowed to remain in the record.
c. when the witness is outside the
Philippines and absence is c. held in abeyance until he
procured by the party offering recovers.
deposition.
d. not be given any probative
d. when the witness is 89 years old weight.
and bed-ridden.
93. If the Supreme Court en bane is equally
90. One of the exemptions to the general rule divided in opinion covering an original
that evidence not formally offered shall action, the case shall be:
not be considered is:
a. re-raffled to a division.
a. in judgment on the pleadings.
b. original action shall be dismissed.
b. evidence in land registration
proceedings. c. The judgment appealed from
shall be official.
c. evidence lost/destroyed due to
force majeure after being d. again deliberated upon.
marked, identified and described
94. An example of a special judgment is one
in the record.
which orders:
d. documentary evidence proving a
a. the defendant to deliver and
foreign judgment.
reconvey personal property to
91. In Petition for Certiorari, the Court of the plaintiff.
Appeals issues a Writ of Preliminary
b. defendant to execute a Deed of
Injunction against the RTC restraining the
Sale in favor of plaintiff.
latter from trying a crucial case. The Court
of Appeals should therefore: c. defendant to paint a mural for
the plaintiff.
a. decide the main case within 60
days. d. Defendant to vacate the leased
premises.
b. decide the certiorari petition
within 6 months. 95. At the promulgation of judgment, P, who
is bonded, failed to appear without
c. decide the main case or the
justifiable cause. In order for P not to lose
petition within 60 days.
his remedies under the Rules, he must:
d. decide the main case or the
petition within 6 months from
 a. within 15 days from receipt of a
copy of the decision, file a
Motion for Reconsideration.
b. within 15 days from the
promulgation, surrender to the
court and file a motion for leave
to avail of remedies.
c. notify his bondsman within 15
days so that his bail will not be
confiscated.
d. file a petition for certiorari.
96. X, the designated executor of a will, files a
petition for probate of the same. X and
his counsel failed to appear without
justifiable cause at the hearing on the
presentation of evidence and the court
therefore dismissed, motu proprio, his
petition for failure to prosecute. The
effect of the dismissal is:
a. not an adjudication upon the
merits.
b. the will can no longer be
probated.
c. it is a dismissal with prejudice.
d. a bar to a subsequent action on
the same cause.
97. The Rule on Small Claims is applicable to:
a. claims for unpaid rentals
of P 100,000 or less, with prayer
for ejectment.
b. enforcement of a barangay
amicable settlement involving a
money claim of P 50,000 after
one (1) year from date of
settlement.
c. action for damages arising from a
quasi-delict amounting
to P 100,000.
d. action to collect on a promissory
note amounting to P 105,000
where plaintiff expressly insists
in recovering only P 1 00,000.
98. When directed by the judge, a clerk of
court can receive evidence addressed by
the parties in:
a. case where the judge is on leave.
b. small claims proceedings.
c. cases where the parties agree in
writing.
d. land registration proceedings.
99. A certificate against Forum-Shopping is
not required in:
a. petitions for probate of will.
b. application for search warrant.
c. complaint-in-intervention.
d. petition for Writ of Kalikasan.
100.An accused's custodial rights, e.g., right to
counsel and right to remain silent, is
available:
a. at preliminary investigation.
b. at police line-up for identification
purposes.
c. at ultra-violet examination to
determine presence of ultra
violet powder on accused's
hands.
d. at one-on-one confrontation
with eyewitness.
I
a. After an information for rape was filed in
the RTC, the DOJ Secretary, acting on the
accused's petition for review, reversed
the investigating prosecutor's finding of
probable cause. Upon order of the DOJ
Secretary, the trial prosecutor filed a
Motion to Withdraw Information which
the judge granted. The order of the judge
stated only the following:
"Based on the review by the DOJ Secretary of the
findings of the investigating prosecutor during the
preliminary investigation, the Court agrees that
there is no sufficient evidence against the accused
to sustain the allegation in the information. The
motion to withdraw Information is, therefore,
granted."
If you were the private prosecutor, what should
you do? Explain. (5%)
b. A was charged with a non-bailable
offense. At the time when the warrant of
arrest was issued, he was confined in the
hospital and could not obtain a valid
clearance to leave the hospital. He filed a
petition for bail saying therein that he be
considered as having placed himself
under the jurisdiction of the court. May
the court entertain his petition? Why or
why not? (5%)
II
a. Discuss the "chain of custody" principle
with respect to evidence seized under
R.A. 9165 or the Comprehensive
Dangerous Drugs Act of 2002. (5%)
b. What do you understand about the
"precautionary principle" under the Rules
of Procedure for Environmental Cases?
(5%)
III
a. Distinguish error of jurisdiction from error
of judgment. (5%)
b. A, a resident of Quezon City, wants to file
an action against B, a resident of Pasay, to
compel the latter to execute a Deed of
Sale covering a lot situated in Marikina
and that transfer of title be issued to him
claiming ownership of the land. Where
should A file the case? Explain. (5%)
IV
a. A bought a Volvo Sedan from ABC Cars
for P 5.0M. ABC Cars, before delivering to
A, had the car rust proofed and tinted by
XYZ Detailing. When delivered to A, the
car's upholstery was found to be
damaged. ABC Cars and XYZ Detailing
both deny any liability. Who can A sue
and on what cause(s) of action? Explain.
(5%)
b. Mr. Sheriff attempts to enforce a Writ of
Execution against X, a tenant in a
condominium unit, who lost in an
ejectment case. X does not want to budge
and refuses to leave. Y, the winning party,
moves that X be declared in contempt
and after hearing, the court held X guilty
of indirect contempt. If you were X's
lawyer, what would you do? Why? (5%)
V
a. X was arrested, en flagrante, for robbing a
bank. After an investigation, he was
brought before the office of the
prosecutor for inquest, but unfortunately
no inquest prosecutor was available. May
the bank directly file the complaint with
the proper court? If in the affirmative,
what document should be filed? (5%)
VI
A PDEA asset/informant tipped the PDEA Director
Shabunot that a shabu laboratory was operating in
a house at Sta. Cruz, Laguna, rented by two (2)
Chinese nationals, Ho Pia and Sio Pao. PDEA
Director Shabunot wants to apply for a search
warrant, but he is worried that if he applies for a
search warrant in any Laguna court, their plan
might leak out.
a. Where can he file an application for
search warrant? (2%)
b. What documents should he prepare in his
application for search warrant? (2%)
c. Describe the procedure that should be
taken by the judge on the application.
(2%)
Suppose the judge issues the search warrant
worded in this way:
PEOPLE OF THE
PHILIPPINES  
Plaintiff
Criminal Case No.
007
-versus- for
Violation of R.A.
9165
Ho Pia and Sio Pao,
Accused.
x- - - - - - - - - - - - - - - - - - - - - -x
TO ANY PEACE OFFICER
Greetings:
It appearing to the satisfaction of the undersigned
after examining under oath PDEA Director
shabunot that there is probable cause to believe
that violations of Section 18 and 16 of R.A. 9165
have been committed and that there are good and
sufficient reasons to believe that Ho Pia and Sio
VIII
Pao have in their possession or control, in a two (2)
door apartment with an iron gate located at
Jupiter St., Sta. Cruz, Laguna, undetermined
amount of "shabu" and drug manufacturing
implements and paraphernalia which should be
seized and brought to the undersigned,
You are hereby commanded to make an
immediate search, at any time in the day or night,
of the premises above described and forthwith
seize and take possession of the abovementioned
personal property, and bring said property to the
undersigned to be dealt with as the law directs.
Witness my hand this 1st day of March, 2012.
(signed)
IX
Judge XYZ
d. Cite/enumerate the defects, if any, of the
search warrant. (3%)
e. Suppose the search warrant was served
on March 15, 2012 and the search yielded
the described contraband and a case was
filed against the accused in RTC, Sta. Cruz,
Laguna and you are the lawyer of Sio Pao
and Ho Pia, what will you do? (3%)
f. Suppose an unlicensed armalite was
found in plain view by the searchers and
the warrant was ordered quashed, should
the court order the return of the same to
the Chinese nationals?
Explain your answer. (3%)
VII
a. Counsel A objected to a question posed
by opposing Counsel B on the grounds
that it was hearsay and it assumed a fact
not yet established. The judge banged his
gavel and ruled by saying "Objection
X
Sustained". Can Counsel 8 ask for a
reconsideration of the ruling? Why? (5%)
b. Plaintiff files a request for admission and
serves the same on Defendant who fails,
within the time prescribed by the rules, to
answer the request. Suppose the request
for admission asked for the admission of
the entire material allegations stated in
the complaint, what should plaintiff do?
(5%)
a. A sues B for collection of a sum of money.
Alleging fraud in the contracting of the
loan, A applies for preliminary attachment
with the court. The Court issues the
preliminary attachment after A files a
bond. While summons on B was yet
unserved, the sheriff attached B's
properties. Afterwards, summons was
duly served on B. 8 moves to lift the
attachment. Rule on this. (5%)
b. Discuss the three (3) Stages of Court
Diversion in connection with Alternative
Dispute Resolution. (5%)
a. X, an undersecretary of DENR, was
charged before the Sandiganbayan for
malversation of public funds allegedly
committed when he was still the Mayor of
a town in Rizal. After arraignment, the
prosecution moved that X be preventively
suspended. X opposed the motion arguing
that he was now occupying a position
different from that which the Information
charged him and therefore, there is no
more possibility that he can intimidate
witnesses and hamper the prosecution.
Decide. Suppose X files a Motion to Quash
challenging the validity of the Information
and the Sandiganbayan denies the same,
will there still be a need to conduct a pre-
suspension hearing? Explain. (5%)
b. Briefly discuss/differentiate the following
kinds of Attachment:
preliminary attachment, garnishment,
levy on execution, warrant of seizure and
warrant of distraint and levy. (5%)
a. Where and how will you appeal the
following:
(1) An order of execution issued by the RTC. (1%)
(2) Judgment of RTC denying a petition for Writ of
Amparo. (1%)
(3) Judgment of MTC on a land registration case
based on its delegated jurisdiction. (1%)
(4) A decision of the Court of Tax Appeal's First
Division. (1%)
b. A files a Complaint against 8 for recovery
of title and possession of land situated in
Makati with the RTC of Pasig. B files a
Motion to Dismiss for improper venue.
The RTC Pasig Judge denies B's Motion to
Dismiss, which obviously was incorrect.
Alleging that the RTC Judge "unlawfully
neglected the performance of an act
which the law specifically enjoins as a
duty resulting from an office", 8 files a
Petition for Mandamus against the judge.
Will Mandamus lie? Reasons. (3%)
c. What are the jurisdictional facts that must
be alleged in a petition for probate of a
will? How do you bring before the court
these jurisdictional facts? (3%)
CRIMINAL LAW (2012)
1. The wife of AAA predeceased his mother-
in-law. AAA was accused of defrauding his
mother-in-law under a criminal
information for estafa, but the actual
recital of facts of the offense charged
therein, if proven, would constitute not
only the crime of estafa, but also
falsification of public document as a
necessary means for committing estafa.
AAA invokes the absolutory cause of
relationship by affinity. Which statement
is most accurate?
a. The relationship by affinity
created between AAA and the
blood relatives of his wife is
dissolved by the death of his wife
and the absolutory cause of
relationship by affinity is
therefore no longer available to
AAA.
b. The death of.spouse does not
severe the relationship by affinity
which is an absolutory cause
available to AAA for estafa
through falsification of public
document.
c. If AAA commits in a public
document the act of falsification
as a necessary means to commit
estafa, the relationship by
affinity still subsists as an
absolutory cause for estafa
which should be considered
separately from the liability for
falsification of public document
because there is no specific
penalty prescribed for the
complex crime of estafa through
falsification of public document.
d. Considering that under the given
situation, the two (2) crimes of
estafa and falsification of public
document are not separate
crimes but component crimes of
the single complex crime of
estafa and falsification of public
document, the absolutory cause
of relationship by affinity is not
available to AAA.
2. Under which of the following
circumstances is an accused not liable for
the result not intended?
a. Accused is not criminally liable
for the result not intended when
there is mistake in the identity of
the victim.
b. Accused is not criminally liable
for the result not intended when
there is mistake in the blow.
c. Accused is not criminally liable
for the result not intended when
the wrongful act is not the
proximate cause of the resulting
injury.
d. Accused is not criminally liable
for the result not intended when
 there is mistake of fact
constituting an involuntary act.
3. Can there be a frustrated impossible
crime?
a. Yes. When the crime is not
produced by reason of the
inherent impossibility of its
accomplishment, it is a
frustrated impossible crime.
b. No. There can be no frustrated
impossible crime because the
means employed to accomplish
the crime is inadequate or
ineffectual.
c. Yes. There can be a frustrated
impossible crime when the act
performed would be an offense
against persons.
d. No. There can be no frustrated
impossible because the offender
has already performed the acts
for the execution of the crime.
4. FF and his two (2) sons positioned
themselves outside the house of the
victim. The two (2} sons stood by the
stairs in front of the house, while the
father waited at the back. The victim
jumped out of the window and was met
by FF who instantly hacked him. The two
(2) sons joined hacking the victim to
death. They voluntarily surrendered to
the police. How will the attendant
circumstances be properly appreciated?
a. Treachery and abuse of superior
strength qualify the killing to
murder.
b. Only treachery qualifies the
killing to murder because abuse
of superior strength is absorbed
by treachery.
c. Treachery is the qualifying
aggravating circumstance, while
abuse of superior strength is
treated as a generic aggravating
circumstance.
d. The qualifying circumstance of
treachery or abuse of superior
strength can be offset by the
mitigating circumstance of
voluntary surrender.
5. Which of the following circumstances may
be taken into account for the purpose of
increasing the penalty to be imposed
upon the convict?
a. Aggravating . circumstances
which in themselves constitute a
crime specially punishable by
law.
b. Aggravating circumstances which
are inherent in the crime to such
a degree that they must of
necessity accompany the crime.
c. Aggravating circumstances which
arise from the moral attributes of
the offender.
d. Aggravating circumstances which
are included by the law in
defining a crime.
6. Who among the following convicts are
not entitled to the benefits of the
lndetermediate Sentence Law?
a. Those who are recidivists.
b. Those whose maximum term of
imprisonment exceeds one (1)
year.
c. Those convicted of inciting to
sedition.
d. Those convicted of misprision of
treason.
7. Proposal to commit felony is punishable
only in cases in which the law specifically
provides a penalty therefor. Under which
of the following instances. are proponents
NOT liable?
a. Proposal to commit coup d'etat.
b. Proposal to commit sedition.
c. Proposal to commit rebellion.
d. Proposal to commit treason.
8. AA misrepresented to the complainant
that he had the power, influence,
 authority and business to obtain overseas
employment upon payment of placement
fee. AA duly collected the placement fee
from complainant. As per certification of
the Philippine Overseas Employment
Administration, AA did not possess any
authority or license for overseas
employment. Is it proper to file two (2)
separate Informations for illegal
recruitment under the Labor Code and for
estafa by means of deceit?
a. No. The filing of two (2) separate
Informations for illegal
recruitment under the Labor
Code and for estafa by means of
deceit for the same act is
violative of the principle against
double jeopardy.
b. No. One Information for a
complex crime of illegal
recruitment with estafa by
means of deceit should be filed,
instead of two (2) separate
Informations.
c. No. A person convicted of illegal
recruitment under the Labor
Code may not, for the same act,
be separately convicted of estafa
by means of deceit.
d. Yes. A person convicted of illegal
recruitment under the Labor
Code may, for the same act, be
separately convicted of estafa by
means of deceit.
9. When are light felonies punishable?
a. Light felonies are punishable in
all stages of execution.
b. Light felonies are punishable only
when consummated.
c. Light felonies are punishable only
when consummated, with the
exception of those committed
against persons or property.
d. Light felonies are punishable only
when committed against persons
or property.
10. AA was appointed for a two-year term to
serve the unexpired portion of a resigned
public official. Despite being disqualified
after the lapse of the two-year term, PA
continued to exercise the duties and
powers of the public office to which
appointed. What is the criminal liability of
AA?
a. AA is criminally liable for
malfeasance in office.
b. AA is criminally liable for
prolonging performance of
duties and powers.
c. AA is criminally liable for
disobeying request for
disqualification.
d. AA incurs no criminal liability
because there is no indication
that he caused prejudice to
anyone.
11. For treachery to qualify killing to murder,
the evidence must show:
a. The time when the accused
decided to employ treachery, the
overt act manifestly indicating
that he clung to such
determination, and a sufficient
lapse of time between the
decision and the execution,
allowing him to reflect upon the
consequence of his act.
b. Unlawful aggression, reasonable
necessity of the means to
prevent or repel the aggression,
and lack of sufficient provocation
on the part of the victim.
c. That the accused employed such
means, methods or manner to
ensure his safety from the
defensive or retaliatory acts of
the victim, and the mode of
attack was consciously adopted.
d. Actual sudden physical assault or
threat to inflict real imminent
injury to an unsuspecting victim.
12. What is the criminal liability, if any, of a
pregnant woman who tried to commit
 suicide by poison, but she did not die and
the fetus in her womb was expelled
instead?
14. A, 8, and C organized a meeting in which
a. The woman who tried to commit
suicide is not criminally liable
because the suicide intended
was not consummated.
b. The woman who tried to commit
suicide is criminally liable for
unintentional abortion which is
punishable when caused by
violence.
c. The woman who tried to commit
suicide is criminally liable for
abortion that resulted due to the
poison that she had taken to
commit suicide.
d. The woman who tried to commit
suicide occurs no criminal
liability for the result not
intended.
13. Chris Brown was convicted of a complex
crime of direct assault with homicide
aggravated by the commission of the
crime in a place where public authorities
15. Is the crime of theft committed by a
are engaged in the discharge of their
duties. The penalty for homicide is
reclusion temporal. On the other hand,
the penalty for direct assault is pns10n
correccional in its medium and maximum
periods. What is the correct
indeterminate penalty?
a. Twelve (12) years of prision
mayor as minimum to twenty
(20) years of reclusion ten1poral
as maximum.
b. Ten ( 1 0) years of prision mayor
as minimum to seventeen (17)
years and four (4) months of
reclusion temporal as maximum.
c. Eight (8) years of prision mayor
as minimum to eighteen (18)
years and four (4) months of
reclusion temporal as maximum.
d. Twelve (12) years of prision
mayor as minimum to seventeen
(17) years and four (4) months of
reclusion temporal as maximum.
the audience was incited to the
commission of the crime of sedition.
Some of the persons present at the
meeting were carrying unlicensed
firearms. What crime, if any, was
committed by A, 8 and C, as well as those
who were carrying unlicensed firearms
and those who were merely present at
the meeting?
a. Inciting to sedition for A, 8 and C
and illegal possession of firearms
for those carrying unlicensed
firearms.
b. Inciting to sedition for A, 8 and C
and those carrying unlicensed
firearms.
c. Illegal assembly for A, 8, C and all
those present at the meeting.
d. Conspiracy to commit sedition
for A, B, C and those present at
the meeting.
person who, with intent to gain, takes a
worthless check belonging to another
without the latter's consent?
a. Yes. All the elements of the
crime of theft are present: that
there be taking of personal
property; that the property
belongs to another; and that the
taking be done with intent to
gain and without the consent of
the owner.
b. No. The taking of the worthless
check, which has no value, would
not amount to the crime of theft
because of the legal impossibility
to commit the intended crime.
c. Yes. Theft is committed even if
the worthless check would be
subsequently dishonored
because the taker had intent to
gain from the check at the time
of the taking.
 d. Yes. Theft is committed because 19. What crime is committed by a person
the factual impossibility to gain who kills his legitimate brother on the
from the check was not known occasion of a public calamity?
to the taker or beyond his
a. parricide;
control at the time of taking.
b. homicide;
16. B was convicted by final judgment of
theft. While serving sentence for such c. murder;
offense, B was found in possession of an
unlicensed firearm. Is B a quasi-recidivist? d. death caused in a tumultuous
affray.
a. B is a quasi-recidivist because he
was serving sentence when 20. What is the crime committed by any
found in possession of an person who, without reasonable ground,
unlicensed firearm. arrests or detains another for the purpose
of delivering him to the proper
b. B is not a quasi-recidivist authorities?
because the offense for which he
was serving sentence is different a. unlawful arrest;
from the second offense.
b. illegal detention;
c. B is not a quasi-recidivist
c. arbitrary detention;
because the second offense is
not a felony. d. grave coercion.

d. B is not a quasi-recidivist 21. A killed M. After the killing, A went to the

because the second offense was Barangay Chairman of the place of
committed while still serving for incident to seek protection against the
the first offense. retaliation of M's relatives. May voluntary
surrender be appreciated as a mitigating
17. What crime is committed by one who
circumstance in favor of A?
defrauds another by taking undue
advantage of the signature of the a. Yes. A surrendered to the
offended party in a blank check and by Barangay Chairman who is a
writing the payee and amount of the person in authority.
check to the prejudice of the offended
party? b. Yes. The surrender of A would
save the authorities the trouble
a. estafa with unfaithfulness or and expense for his arrest.
abuse of confidence;
c. No. A did not unconditionally
b. estafa by false pretense; submit himself to the authorities
in. order to acknowledge his
c. estafa through fraudulent
participation in the killing or to
means;
save the authorities the trouble
d. estafa by other deceits. and expenses necessary for his
search and capture.
18. What crime is committed by a person
who kills a three-day old baby? d. No. The surrender to the
Barangay Chairman is not a
a. infanticide; surrender to the proper
authorities.
b. homicide;
22. Who among the following is liable for
c. murder;
estafa?
d. parricide.
 a. The seller of a laptop computer
who failed to inform the buyer
that the laptop had a defect.
b. The person who ran away with a
cell phone which was handed to
him upon his pretense that he
had to make an emergency call.
c. The person who assured he will
pay interest on the amount but
failed to do so as promised.
d. The son who induced his father
to buy from him a land which the
son is no longer the owner.
23. What is the nature of the circumstance
which is involved in the imposition of the
maximum term of the indeterminate
sentence?
a. qualifying circumstance;
b. aggravating circumstance;
c. modifying circumstance;
d. analogous circumstance.
24. A, B and C, all seventeen (17) years of age,
waited for nighttime to avoid detection
and to facilitate the implementation of
their plan to rob G. They entered the
room of G through a window. Upon
instruction of A, G opened her vault while
8 was poking a knife at her. Acting as
lookout, C had already opened the main
door of the house when the helper was
awakened by the pleading of G to A and B
to just take the money from the vault
without harming her. When the helper
shouted for help upon seeing G with A
and B inside the room, 8 stabbed G and
ran towards the door, leaving the house
with C. A also left the house after taking
the money of G from the vault. G was
brought to the hospital where she died as
a result of the wound inflicted by B.
Under the given facts, are A, B and C
exempt from criminal liability? If not,
what is the proper charge against them or
any of them?
a. A, B and C, being under eighteen
(18) years of age at the time of
the commission of the offense,
are exempt from criminal liability
and should be merely subjected
to intervention program for child
in conflict with the law.
b. There being no indication of
having acted with discernment,
A, B and C are exempt from
criminal liability, subject to
appropriate programs in
consultation with the person
having custody over the child in
conflict with the taw or the local
social welfare and development
officer.
c. Considering the given facts which
manifest discernment, A, B and C
are not exempt from criminal
liability and should be charged
with the complex crime of
robbery with homicide, subject
to automatic suspension of
sentence upon finding of guilt.
d. Under the given facts, A, 8 and C
are not exempt from criminal
liability because they conspired
to commit robbery for which
they should be collectively
charged as principals, and in
addition, B should be separately
charged with homicide for the
death of G, subject to diversion
programs for children over 15
and under 18 who acted with
discernment.
25. The guard was entrusted with the
conveyance or custody of a detention
prisoner who escaped through his
negligence. What is the criminal liability
of the escaping prisoner?
a. The escaping prisoner does not
incur criminal liability.
b. The escaping prisoner is liable for
evasion through negligence.
c. The escaping prisoner is liable for
conniving with or consenting to,
evasion.
d. The escaping prisoner is liable for
evasion of service of sentence.
26. What crime is committed when a person
assumes the performance of duties and
powers of a public office or employment
without first being sworn in?
a. anticipation of duties of a public
office;
b. usurpation of authority;
c. prohibited transaction;
d. unlawful appointment.
27. What crime is committed by a public
officer who, before the acceptance of his
resignation, shall abandon his office to
the detriment of the public service in
order to evade the discharge of the duties
of preventing, prosecuting or punishing
the crime of treason?
a. abandonment of office
position;
b. qualified abandonment of office;
c. misprision of treason;
d. negligence in the prosecution of
offense.
28. The key element in a crime of parricide
other than the fact of killing is the
relationship of the offender to the victim.
Which one of the following circumstances
constitutes parricide?
a. Offender killing the illegitimate
daughter of his legitimate son.
b. Offender killing his illegitimate
grandson.
c. Offender killing his common-law
wife.
d. Offender killing his illegitimate
mother.
29. What is the minimum age of criminal
responsibility?
a. a} fifteen (15) years old or under
b. nine (9) years old or under
c. above nine (9) years old and
under fifteen (15) who acted
with discernment
d. above fifteen ( 15) years old and
under eighteen ( 18) who acted
with discernment
30. When the adoption of a child is effected
under the Inter-Country Adoption Act for
the purpose of prostitution, what is the
proper charge against the offender who is
a public officer in relation to the
exploitative purpose?
a. acts that promote trafficking in
persons;
b. trafficking in persons;
c. qualified trafficking in persons;
d. use of trafficked person.
31. What crime is committed when a mother
kills the three-day old child of her
or husband with their daughter?
a. parricide;
b. infanticide;
c. murder;
d. homicide.
32. When is a crime deemed to have been
committed by a band?
a. When armed men, at least four
(4) in number, take direct part in
the execution of the act
constituting the crime.
b. When three (3) armed men act
together in the commission of
the crime.
c. When there are four ( 4) armed
persons, one of whom is a
principal by inducement.
d. When there are four (4)
malefactors, one of whom is
armed.
33. The period of probation of the offender
sentenced to a term of one ( 1) year shall
not exceed:
a. two (2) years;
b. six (6) years;
 c. one (1) year; 36. What is the proper charge against public
officers or employees who, being in
d. three (3) years;
conspiracy with the rebels, failed to resist
34. What is the criminal liability, if any, of a a rebellion by all means in their power, or
mayor who, without being authorized by shall continue to discharge the duties of
law, compels prostitutes residing in his their offices under the control of the
city to go to, and live in, another place rebels, or shall accept appointment to
against their will? office under them?

a. The mayor is criminally liable for a. disloyalty of public officers or

violation of domicile. employees;

b. The mayor is criminally liable for b. rebellion;

expulsion.
c. conspiracy to commit rebellion;
c. The mayor is criminally liable for
d. dereliction of duty.
grave coercion.
37. What is the proper charge against a
d. The mayor incurs no criminal
person who, without taking arms or being
liability because he merely wants
in open hostility against the Government,
to protect the youth against the
shall incite others to deprive Congress of
indecency of the prostitutes.
its legislative powers, by means of
35. How is the crime of coup d'etat speeches or writings?
committed?
a. inciting to sedition;
a. By rising publicly and taking arms
b. inciting to rebellion or
against the Government for the
insurrection;
purpose of depriving the Chief
Executive of any of his powers or c. crime against legislative body;
prerogatives.
d. unlawful use of means of
b. When a person holding public publication or unlawful
employment undertakes a swift utterances.
attack, accompanied by strategy
38. What is the crime committed when a
or stealth, directed against public
group of persons entered the municipal
utilities or other facilities needed
building rising publicly and taking up arms
for the exercise and continued
in pursuance of the movement to prevent
possession of power for the
exercise of governmental authority with
purpose of diminishing state
respect to the residents of the
power.
municipality concerned for the purpose of
c. When persons rise publicly and effecting changes in the manner of
tumultuously in order to prevent governance and removing such locality
by force the National under their control from allegiance to the
Government from freely laws of the Government?
exercising its function.
a. sedition;
d. When persons circulate
b. coup d'etat;
scurrilous libels against the
Government which tend to c. insurrection;
instigate others to meet together
or to stir up the people against d. public disorder.
the lawful authorities.
39. When is a disturbance of public order
deemed to be tumultuous?
 a. The disturbance shall be deemed d. The police officer is criminally
tumultuous i f caused by more liable for violation of
than three (3) persons who are parliamentary immunity because
armed or provided with means parliamentary immunity
of violence. guarantees a member of
Congress complete freedom of
b. The disturbance shall be deemed
expression without fear of being
tumultuous when a person
arrested while in regular or
causes a serious disturbance in a
special session.
public place or disturbs public
performance, function or 41. What is the proper charge against a group
gathering. of four persons who, without public.
uprising, employ force to prevent the
c. The disturbance shall be deemed
holding of any popular election?
tumultuous when more than
three (3) persons make any a. sedition;
outcry tending to incite rebellion
b. disturbance of public order;
or sedition or shout subversive
or provocative words to obtain c. grave coercion;
any of the objectives of rebellion
or sedition. d. direct assault.

d. The disturbance shall be deemed
tumultuous when at least four
(4) persons participate in a free-
for-all-fight assaulting each other
in a confused and tumultuous
manner.
42. Which of the following circumstances may
be appreciated as aggravating in the
crime of treason?
a. cruelty and ignominy;
b. evident premeditation;

40. What is the criminal liability, if any, of a c. superior strength;

police officer who, while Congress was in
session, arrested a member thereof for d. treachery.
committing a crime punishable by a 43. What is the crime committed by a public
penalty higher than prision mayor? officer who discloses to the
a. The police officer is criminally representative of a foreign nation the
liable for violation of contents of the articles, data or
parliamentary immunity because information of a confidential nature
a member of Congress is relative to the defense of the Philippine
privileged from arrest while archipelago which he has in his
Congress is in session. possession by reason of the public office
he holds?
b. The police officer is criminally
liable for disturbance of a. espionage;
proceedings because the arrest b. disloyalty;
was made while Congress was in
session. c. treason;

c. The police officer incurs no d. violation of neutrality.

criminal liability because the
44. A foreigner residing in Hong Kong
member of Congress has
counterfeits a twenty-peso bill issued by
committed a crime punishable by
the Philippine Government. May the
a penalty higher than prision
foreigner be prosecuted before a civil
mayor.
court in the Philippines?
 a. No. The provisions of the Revised Philippines or elsewhere, to
Penal Code are enforceable only commit the crime of treason
within the Philippine because he owes allegiance to
Archipelago. his own country.

b. No. The Philippine Criminal Law 46. A jailer inflicted injury on the prisoner
is binding only on persons who because of his personal grudge against
reside or sojourn in the the latter. The injury caused illness of the
Philippines. prisoner for more than thirty (30) days.
What is the proper charge against the
c. No. Foreigners residing outside
jailer?
the jurisdiction of the Philippines
are exempted from the a. The jailer should be charged with
operation of the Philippine maltreatment of prisoner and
Criminal Law. serious physical injuries.

d. Yes. The provisions of the b. The jailer should be charged with

Revised Penal Code are
enforceable · also outside the
jurisdiction of the Philippines
against those who should forge
or counterfeit currency notes of
the Philippines or obligations and
securities issued by the
Government of the Philippines.
45. Can the crime of treason be committed
only by a Filipino citizen?
a. Yes. The offender in the crime of
treason is a Filipino citizen only
because the first element is that
the offender owes allegiance to
the Government of the
Philippines.
b. No. The offender in the crime of
treason is either a Filipino citizen
or a foreigner married to a
Filipino citizen, whether residing
in the Philippines or elsewhere,
who adheres to the enemies of
the Philippines, giving them aid
or comfort.
c. No. The offender in the crime of
treason is either a Filipino citizen
or an alien residing in the
Philippines because while
permanent allegiance is owed by
the alien to his own country, he
owes a temporary allegiance to
the Philippines where he resides.
d. Yes. It is not possible for an alien,
whether residing in the
serious physical injuries only.
c. The jailer should be charged with
complex crime of maltreatment
of prisoner with serious physical
injuries.
d. The jailer should be charged with
maltreatment of prisoner only.
47. AA was convicted of proposal to commit
treason. Under Article 115 of the Revised
Penal Code, proposal to commit treason
shall be punished by prision correccional
and a fine not exceeding P5,000.00. Is the
Indeterminate Sentence Law applicable to
AA?
a. Yes. The Indeterminate Sentence
Law is applicable to AA because
the maximum of prision
correccional exceeds one ( 1)
year.
b. Yes. The Indeterminate Sentence
Law is applicable to AA because
there is no showing that he is a
habitual delinquent.
c. No. The Indeterminate Sentence
Law is not applicable to AA
considering the penalty
imposable for the offense of
which he was convicted.
d. No. The Indeterminate Sentence
Law is not applicable considering
the offense of which he was
convicted.
48. What is the proper charge against a
lawyer who reveals the secrets of his
client learned by him in his professional
capacity?
a. The lawyer should be charged
with revelation of secrets of
private individual.
b. The lawyer should be charged
with betrayal of trust.
c. The lawyer should be charged
with unauthorized revelation of
classified materials.
d. The proper charge against the
lawyer should be revealing
secrets with abuse of office.
49. AB was driving a van along a highway.
Because of her recklessness, the van hit a
car which had already entered the
intersection. As a result, CD who was
driving the car suffered physical injuries,
while damage to his car amounted to
P8,500.00. What is the proper charge
against AB?
a. AB should be charged with
complex crime of reckless
imprudence resulting in damage
to property with slight physical
injuries.
b. AB should .be charged with
reckless imprudence resulting in
slight physical injuries and
reckless imprudence resulting in
damage to property.
c. AB should be charged with
complex crime of slight physical
injuries with damage to
property.
d. AB should be charged with slight
physical injuries and reckless
imprudence resulting in damage
to property.
50. What crime is committed by one who,
having received money, goods or any
other personal property in trust or on
commission, or for administration,
defrauds the offended party by denying
receipt of such money, goods or other
property?
a. He commits violation of the Trust
Receipt Law.
b. He commits estafa through
fraudulent means.
c. He commits estafa by false
pretenses.
d. He commits estafa with
unfaithfulness or abuse of
confidence.
51. What is the criminal liability, if any, of
AAA who substitutes for a prisoner
serving sentence for homicide by taking
his place in jail or penal establishment?
a. AAA is criminally liable for
delivering prisoner from jail and
for using fictitious name.
b. AAA is criminally liable as an
accessory of the crime of
homicide by assisting in the
escape or concealment of the
principal of the crime.
c. AAA is criminally liable for
infidelity in the custody of
prisoners.
d. AAA is criminally liable for
misrepresentation or concealing
his true name.
52. A child over fifteen (15) years of age acted
with discernment in the commission of
murder. What is the duty of the court if
he is already over eighteen (18) years of
age at the time of the determination of
his guilt for the offense charged?
a. The court shall pronounce the
judgment of conviction.
b. The court shall place the child
under suspended sentence for a
specified period or until he
reaches twenty-one (21) years of
age.
c. The court shall discharge the
child for disposition measures.
 d. The court shall place the child on
probation.
53. What is the criminal liability, if any, of a
private person who enters the dwelling of
another against the latter's will and by
means of violence or intimidation for the
purpose of preventing some harm to
himself?
a. The private person is criminally
liable for qualified trespass to
dwelling.
b. The private person is criminally
liable for simple trespass to
dwelling.
c. The private person incurs no
criminal liability.
d. The private person is criminally
liable for light threats.
54. AAA was convicted of theft by a Manila
Court and sentenced to a straight penalty
of one (1) year of prision correccional.
After serving two (2) months of the
sentence, he was granted conditional
pardon by the Chief Executive. One of the
conditions of the pardon was for him not
to be found guilty of any crime punishable
by the laws of the country. He
subsequently committed robbery in Pasay
City. Can the Manila Court require AAA to
serve the unexpired portion of the
original sentence?
a. Yes. The Manila Court has the
authority to recommit AAA to
serve the unexpired portion of
the original sentence in addition
to the penalty for violation of
conditional pardon.
b. No. The penalty remitted by the
conditional pardon is less than
six (6) years.
c. Yes. The penalty for violation of
conditional pardon is the
unexpired portion of the
punishment in the original
sentence.
d. No. AAA must first be found
guilty of the subsequent offense
before he can be prosecuted for
violation of conditional pardon.
55. What is the criminal liability of a person
who knowingly and in any manner aids or
protects highway robbers/brigands by
giving them information about the
movement of the police?
a. He is criminally liable as principal
by indispensable cooperation in
the commission of highway
robbery or brigandage.
b. He is criminally liable as an
accessory of the principal
offenders.
c. He is criminally liable as an
accomplice of the principal
offenders.
d. He is criminally liable as principal
for aiding and abetting a band of
brigands.
56. With intent to kill, GGG burned the house
where F and D were staying. F and D died
as a consequence. What is the proper
charge against GGG?
a. GGG should be charged with two
(2) counts of murder.
b. GGG should be charged with
arson.
c. GGG should be charged with
complex crime of arson with
double murder.
d. GGG should be charged with
complex crime of double murder.
57. RR convinced WW to take a job in Taiwan,
assuring her of a good salary and
entitlement to a yearly vacation. WW paid
to RR the processing fee for passport and
visa, but no receipt was issued for the
payment. WW was made to use the alien
certificate of registration of another
person with a Chinese name and
instructed on how to use the Chinese
name. The application of WW was
rejected by the Taiwanese authorities.
Cases were filed against RR for illegal
recruitment and estafa. The case of illegal
 recruitment was dismissed. Is RR liable for a. The physician is criminally liable
estafa? for falsification of medical
certificate.
a. RR is liable for estafa with
unfaithfulness or abuse of b. The physician is criminally liable
confidence. if the false medical certificate is
used in court.
b. RR is liable for estafa by means
of false pretenses. c. The physician incurs no criminal
liability if the false medical
c. RR is not liable for estafa
certificate is not submitted to the
because WW participated in the
court.
illegal travel documents.
d. The physician incurs no criminal
d. RR can no longer be held liable
liability if the false medical
for estafa because with the
certificate does not cause
dismissal of the case against him
prejudice or damage.
for illegal recruitment, double
jeopardy has already set in. 60. Under which of the following
circumstances is probation not
58. A entered the house of B. Once inside the
applicable?
house of B, A took and seized personal
property by compulsion from B with the a. Probation is not applicable when
use of violence and force upon things, the accused is sentenced to
believing himself to be the owner of the serve a maximum of six (6) years.
personal property so seized. What is the
b. Probation is not applicable when
criminal liability of A?
the accused has been convicted
a. A is criminally liable for robbery by final judgment of an offense
with violence because he punished by imprisonment of
employed violence in the taking less than one (1) month and/or
of the personal property from B, fine of less than P200.00.
robbery characterized by
c. Probation is not applicable when
violence being graver than
accused is convicted of indirect
ordinary robbery committed with
assault.
force upon things.
d. Probation is not applicable when
b. A is criminally liable for robbery
accused is convicted of indirect
with force upon things in an
bribery.
inhabited house because the act
was committed in a house 61. What crime is committed by a person
constituting the dwelling of one who, having found a ring, fails to deliver
or more persons. the same to the owner or to the local
authorities?
c. A is criminally liable for grave
coercion because the a. The finder commits theft.
presumption of intent to gain is
rebutted. b. The finder commits
concealment.
d. A is criminally liable for qualified
trespass to dwelling because he c. The finder commits qualified
employed violence. theft.

59. What is the criminal liability, if any, of a d. The finder commits usurpation of
physician who issues a false medical property.
certificate in connection with the practice
of his profession?
62. At a wake, there were people watching a
game of dice. With treachery and use of
unlicensed firearms, AA fired successively
several gunshots at their direction. During
the shooting, four (4) persons were killed
and fourteen (14) others were injured and
brought to the hospital for the treatment
of gunshot wounds. What should be the
proper charge against AA?
a. AA should be charged with
multiple murder and attempted
murder.
b. AA should be charged with four
(4) counts of murder and
fourteen (14) counts of
attempted murder.
c. AA should be charged with four
(4) counts of murder, fourteen
(14) counts of serious physical
injuries and illegal possession of
firearms.
d. AA should be charged with
complex crime of murder and
attempted murder with illegal
possession of firearms.
63. A, B, C and D are members of the police
department of a municipality. Conspiring
with one another, they arrested E,
without reasonable ground, for the
purpose of delivering him to the proper
authorities by imputing to E the crime of
bribery. While E was being investigated by
A, B, C and D, one of them placed a
marked five hundred peso bill, together
with the money taken from E, to make it
appear that E, an employee of the Office
of the Local Civil Registrar, agreed to
perform an act not constituting a crime in
connection with the performance of E's
duties, which was to expedite the
issuance of a birth certificate. What is the
crime committed by A, B, C and D?
a. A, 8, C and D committed
incriminatory machination
through unlawful arrest.
b. A, 8, C and D committed
intriguing against honor with
unlawful arrest.
c. A, 8, C and D committed slight
illegal detention.
d. A, 8, C and D committed
corruption of public official.
64. Felonies are classified according to
manner or mode of execution into
felonies committed by means of deceit
(dolo) and by means of fault (culpa).
Which of the following causes may not
give rise to culpable felonies?
a. Imprudence;
b. Malice;
c. Negligence;
d. Lack of foresight.
65. Which of the following acts does not
constitute estafa or other forms of
swindling?
a. When a person mortgages a real
property by pretending to be the
owner thereof.
b. When a person disposes of the
real property knowing it to be
encumbered.
c. When a person wrongfully takes
real property from its lawful
possessor to the prejudice of the
latter.
d. When a person mortgages real
property while being a surety
given in a civil action without
express authority from the court.
66. DD, intending to kill EE, peppered the
latter's bedroom with bullets, but since
the intended victim was not home at that
time, no harm came to him. What crime is
committed?
a. DD committed the crime of
attempted murder.
b. DD committed the crime of
attempted homicide.
c. DD committed the crime of
impossible crime.
 d. DD committed the crime of
malicious mischief.
67. What crime is committed when a person
ill-treats another by deed without causing
any injury?
a. The offender commits
maltreatment.
b. The offender commits slander by
deed.
c. The offender commits assault.
d. The offender commits coercion.
68. The baptism of A was solemnized by B, an
ecclesiastical minister, in the absence of
C, one of the godparents. Upon request of
the mother of A, B caused the inclusion of
the name of C in the baptismal certificate
of A as one of the godparents and allowed
a proxy for C during the baptismal
ceremony. What is the criminal liability, if
any, of the ecclesiastical minister?
a. The ecclesiastical minister is
criminally liable for falsification
of baptismal certificate by
causing it to appear that C
participated in the baptismal
ceremony when he did not in
fact so participate.
b. The ecclesiastical minister is not
criminally liable because the
insertion of the name of C in the
baptismal certificate will not
affect the civil status of A.
c. The ecclesiastical minister is not
criminally liable because he is
not a public officer, employee or
notary.
d. The ecclesiastical minister is not
criminally liable because he did
not take advantage of his official
position nor cause damage to a
third party.
69. Is the penalty for impossible crime
applicable to one who attempts to
commit a light felony of impossible
materialization?
a. No. The evil intent of the
offender cannot be
accomplished.
b. No. An attempt to commit light
felony constitutes an
employment of inadequate or
ineffectual means.
c. No. The penalty for
consummated light felony is less
than the penalty for impossible
crime.
d. No. In impossible crime, the act
performed should not constitute
a violation of another offense.
70. What crime is committed by a public
officer who, having control of public funds
or property by reason of the duties of his
office and for which he is accountable,
permits any other person through
abandonment to take such public funds or
property?
a. The public officer commits
malversation.
b. The public officer commits
technical malversation.
c. The public officer commits the
crime of failure of accountable or
responsible officer to render
accounts.
d. The public officer commits the
crime of failure to make delivery
of public funds or property.
71. AA knowingly and willfully induced BB to
swear falsely. BB testified as told in a
formal hearing of an administrative case
under circumstances rendering him guilty
of perjury. Is AA criminally liable?
a. AA is not criminally liable
because his act constitutes
subornation of perjury which is
not expressly penalized in the
Revised Penal Code.
b. AA is not criminally liable
because he was not the one who
gave false testimony in the
administrative case.
 c. AA is not criminally liable
because the witness suborned
testified in an administrative
case only.
d. AA is criminally liable for perjury
as principal by inducement with
BB as the principal by direct
participation.
72. What should be the proper charge against
an offender who unlawfully took and
carried away a motor vehicle belonging to
another without the latter's consent,
killing the driver in the process?
a. The proper charge against the
offender should be murder with
the use of motor vehicle.
b. The proper charge against the
offender should be qualified
carnapping or carnapping in an
aggravated form.
c. The proper charge against the
offender should be carnapping
and homicide.
d. The proper charge against the
offender should be robbery with
homicide.
73. Conspiracy to commit felony is punishable
only in cases in which the law specifically
provides a penalty therefor. Under which
of the following instances are the
conspirators not liable?
a. Conspiracy to commit arson.
b. Conspiracy to commit terrorism.
c. Conspiracy to commit child
pornography.
d. Conspiracy to commit trafficking
in persons.
74. With intent to cause damage, AAA
deliberately set fire upon the two-storey
residential house of his employer, mostly
made of wooden materials. The blaze
spread and gutted down seven
neighboring houses. On the occasion of
the fire, six (6) persons sustained burn
injuries which were the direct cause of
their death. What crime was committed
by AAA?
a. AAA committed the complex
crime of arson with multiple
homicide.
b. AAA committed arson and
multiple homicide.
c. AAA committed simple arson.
d. AAA committed arson and
multiple murder.
75. What crime is committed by a utility
worker in government who destroys
office files as an act of revenge against his
supervisor?
a. The utility worker commits
infidelity in the custody of
papers.
b. The utility worker commits
malicious mischief.
c. The utility worker commits
estafa by removing, concealing
or destroying office files.
d. The utility worker commits crime
involving destruction.
I
a. What are the elements of the crime of
bigamy? (5%)
b. If you were the judge in a bigamy case
where the defense was able to prove that
the first marriage was null and void or a
nullity, would you render a judgment of
conviction or acquittal? Explain your
answer. (2%)
Assuming the existence of the first marriage when
accused contracted the second marriage and the
subsequent judicial declaration of nullity of the
second marriage on the ground of psychological
incapacity, would you render a judgment of
conviction or acquittal? Explain your answer. (3%)
II
 a. What is a privileged mitigating
circumstance? (5%)
b. Distinguish a privileged mitigating
circumstance from an ordinary mitigating
circumstance as to reduction of penalty
and offsetting against aggravating
circumstance/s. (5%)
III
a. Is the crime of theft susceptible of
commission in the frustrated stage?
Explain your answer in relation to what
produces the crime of theft in its
consummated stage and by way of
illustration of the subjective and objective
phases of the felony. (5%)
b. What are the constitutional provisions
limiting the power of Congress to enact
penal laws? (5%)
IV
A postal van containing mail matters, including
checks and treasury warrants, was hijacked along a
national highway by ten (1 0) men, two (2) of
whom were armed. They used force, violence and
intimidation against three (3) postal employees
who were occupants of the van, resulting in the
unlawful taking and asportation of the entire van
and its contents.
a. If you were the public prosecutor, would
you charge the ten (10) men who hijacked
the postal van with violation of
Presidential Decree No. 532, otherwise
known as the Anti-Piracy and Anti -
Highway Robbery Law of 1974? Explain
your answer. (5%)
b. If you were the defense counsel, what are
the elements of the crime of highway
robbery that the prosecution should
prove to sustain a conviction? (5%)
V execution of the crime of homicide, taking
a. Who is an accomplice? (5%)
b. Distinguish an accomplice from a
conspirator as to their knowledge of the
criminal design of the principal, their
participation, the penalty to be imposed
in relation to the penalty for the principal,
and the requisites/elements to be
established by the prosecution in order to
hold them criminally responsible for their
respective roles in the commission of the
crime. (5%)
VI
a. What is the fundamental principle in
applying and interpreting criminal laws,
including the Indeterminate Sentence
Law? (5%)
b. How is the Indeterminate Sentence Law
applied in imposing a sentence? (5%)
VII
a. Who are brigands? (5%)
b. Distinguish brigandage from robbery in
band as to elements, purpose of the of
fender and agreement among the
offenders. (5%)
VIII
a. Who is a habitual delinquent? (5%)
b. Distinguish habitual delinquency from
recidivism as to the crimes committed,
the period of time the crimes are
committed, the number of crimes
committed and their effects in relation to
the penalty to be imposed on a convict.
(5%)
IX
a. Define conspiracy. (5%)
b. Distinguish by way of illustration
conspiracy as a felony from conspiracy as
a manner of incurring liability in relation
to the crimes of rebellion and murder.
(5%)
X
a. Explain and illustrate the stages of
into account the nature of the offense,
the essential element of each of the
stages of execution and the manner of
committing such international felony as
distinguished from felony committed
through reckless imprudence. (5%)
b. AA was arrested for committing a bailable
offense and detained in solitary
 confinement. He was able to post bail 1.
after two (2) weeks of defection. During
the period of detention, he was not given
any food. Such deprivation caused him
physically discomfort. What crime, if any,
was committed in connection with the
solitary confinement and food deprivation
of AA? Explain your answer. (5%)
2.
3.
MERCANTILE LAW (2012)
Letters of Credit are financial devices in
commercial transactions which will
ensure that the seller of the goods is sure
to be paid when he parts with the goods
and the buyer of the goods gets control of
the goods upon payment. Which
statement is most accurate?
a. The use of the Letter of Credit
serves to reduce the risk of
nonpayment of the purchase
price in a sale transaction.
b. The Letters of Credit can only be
used exclusively in a sales
transaction.
c. The Letters of Credit are issued
for the benefit of the seller only.
d. (a), (b) and (c) are all correct.
Letter of Credit which is used in non-sale
transaction, where it serves to reduce the
risk of non-performance is called -
a. irrevocable letter of credit;
b. standby letter of credit;
c. confirmed letter of credit;
d. None of the above.
At the instance of CCC Corporation, AAA
Bank issued an irrevocable Letter of Credit
in favor of BBB Corporation. The terms of
the irrevocable Letter of Credit state that
the beneficiary must presfmt certain
documents including a copy of the Bill of
Lading of the importation for the bank to
release the funds. BBB Corporation could
not find the original copy of the Bill of
Lading so it instead presented to the bank
a xerox copy of the Bill of Lading. Would
you advise the bank to allow the
drawdown on theLetter of Credit?
a. No, because the rule of strict
compliance in commercial
transactions involving letters of
credit, requiring documents set
as conditions for the release of
the fund ,has to be strictly corn
plied with or else funds will not
be released.
 b. Yes, because an irrevocable
letter of credit means that the
issuing bank undertakes to
release the fund anytime when
claimed by the beneficiary,
regardless of the kind of
document presented.
c. Yes, because the issuing bank
can always justify to CCC
Corporation that xerox copies
are considered as faithful
reproduction of the original
copies.
d. Yes, because the issuing bank
really has no discretion to
determine whether the
documents presented by the
beneficiary are sufficient or not.
4. AAA Carmakers opened an irrevocable
Letter of Credit with BBB Banking
Corporation with CCC Cars Corporation as
beneficiary. The, irrevocable Letter of
Credit was opened to pay for the
importation of ten (1 0) units of Mercedes
Benz S class. Upon arrival of the cars, AAA
Carmakers found out that the cars were
all not in running condition and some
parts were missing. As a consequence,
AAA Carmakers instructed BBB Banking
Corporation not to allow drawdown on
the Letter of Credit. Is this legally
possible?
a. No, because under the
"Independence Principle",
conditions for the drawdown on
the Letters of Credit are based
only on documents, like shipping
documents, and not with the
condition of the goods subject of
the importation.
b. Yes, because the acceptance by
the importer of the goods
subject of importation is material
for the drawdown of the Letter
of Credit.
c. Yes, because under the
"Independence Principle", the
seller or the beneficiary is always
assured of prompt payment if
there is no breach in the contract
between the seller and the
buyer.
d. No, because what was opened
was an irrevocable letter of
credit and not a confirmed letter
of credit.
5. For a fee, X deposited 1,000 sacks of corn
in the warehouse owned by Y. Y is in the
business of warehousing. Y issued a
warehouse receipt as proof of the
possession of the 1,000 sacks of corn. The
warehouse receipt states as follows:
"Deliver to X or bearer 1,000 sacks of
corn." X wanted to use the warehouse
receipt as payment of his debt in favor of
Z. How can the ownership of the goods
covered by the warehouse receipt be
transferred?
a. Negotiate the warehouse receipt
by just delivering the warehouse
receipt to Z.
b. Assign the warehouse receipt to
Z to transfer ownership of the
goods.
c. Negotiate the warehouse receipt
by specifically indorsing it to Z.
d. The warehouse receipt in this
case is non-negotiable.
6. The warehouseman, by issuing the
warehouse receipt, acknowledges that
the goods are in his possession, but he
can refuse to deliver the goods to the
holder of the warehouse receipt covering
the goods if -
a. the warehouse receipt covering
the goods is not presented.
b. the lien of the warehouseman is
not satisfied.
c. the said holder presents a
materially altered warehouse
receipt.
d. All of the above.
7. The legal remedy of the warehouseman in
case of conflicting claims is to ---
 a. file an action for interpleader.
b. give the goods to the first one
who first presented the
warehouse receipt.
c. use his discretion as to who he
believes has the prior right.
d. keep the goods and appropriate
them to himself.
8. BBB Banking Corporation issued a Letter
of Credit in the amount of P5Million, for
the purchase of five (5) tons of corn by X.
Upon arrival of the goods, the goods were
delivered to the warehouse of X.
Thereafter he was asked to sign a Trust
Receipt covering the goods. When the
goods were sold, X did not deliver the
proceeds to BBB Banking Corporation,
arguing that he will need the fund for the
subsequent importation. Is there
10. X is the President of AAA Products
sufficient basis to sue for criminal action?
a. Yes, because X's failure to turn
over the proceeds to the bank is
a violation of the Trust Receipt
Law.
b. No, because the trust receipt
was signed only after the
delivery of the goods. When the
trust receipt was signed, the
ownership of the goods was
already with X.
c. Yes, because violation of Trust
Receipt Law is mala prohibita,
intention is irrelevant.
d. No, because X has a valid reason
not to deliver the proceeds to
BBB Banking Corporation.
9. X secured a loan from BBB Bank to pay for
the importation of some dried fruits.
Upon arrival of the goods consisting of
dried fruits imported by X but before
delivery to him, a trust receipt was
executed by X to cover the transfer of the
dried fruits to his possession. The dried
fruits were so saleable but instead of
11. Who is the Entrustee in a Trust Receipt
turning over the proceeds of the sale, X
used the funds to pay for the medical
expenses of his mother who was sick of
cancer of the bone. Which statement is
most accurate?
a. X cannot be held criminally liable
because although he did not pay
the bank he used the proceeds
for a good reason.
b. Fraud or deceit is a necessary
element to hold X criminally
liable for non -payment under
the Trust Receipts Law.
c. X can be held criminally liable
under the Trust Receipts Law
regardless of the purpose or
intention for the use of the
proceeds.
d. X cannot be held criminally liable
because the underlying
obligation is one of simple loan.
Corporation. X signs all the Trust Receipts
documents for certain importations of the
company. In the event of failure to deliver
the proceeds of the sale of the goods to
the bank, which statement is most
accurate?
a. The criminal liability will not
attach to X as President because
of separate juridical personality.
b. For violation of Trust Receipts
Law, the law specifically provides
for the imposition of penalty
upon directors I officers of the
corporation.
c. The officer will not be held
criminally accountable because
he is just signing the trust receipt
for and in behalf of the
corporation.
d. The officer of the corporation
will be held liable provided it is
clear that the officer concerned
participated in the decision not
to pay.
arrangement?
a. the owner of the goods;
 b. the one who holds the goods and
receives the proceeds from the
sale of the goods;
c. the person to whom goods are
delivered for sale and who bears
the risk of the loss;
d. the party who acquires security
interest in the goods.
12. Which phrase best completes the
statement - In accordance with the Trust
Receipt Law, purchasers of the goods
from the Entrustee will:
a. get the goods only as a collateral;
b. not get good title to the goods;
c. only get security interest over
the goods;
d. get good title to the goods.
13. X acted as an accommodation party in
signing as a maker of a promissory note.
Which phrase best completes the
sentence - This means that X is liable on
the instrument to any holder for value:
a. for as long as the holder does not
know that X is only an
accommodation party.
b. even though the holder knew all
along that X is only an
accommodation party.
c. for as long as X did not receive
any consideration for acting as
accommodation party.
d. provided X received
consideration for acting as
accommodation party.
14. X issued a promissory note which states,
"I promise to pay Y or order
Php100,000.00 or one (1) unit Volvo
Sedan." Which statement is most
accurate?
a. The promissory note is
negotiable because the forms of
payment are clearly stated.
b. The promissory note is non-
negotiable because the option as
to which form of payment is with
the maker.
c. The promissory note is an invalid
instrument because there is
more than one form of payment.
d. The promissory note can be
negotiated by way of delivery.
15. X issued a promissory note which states "I
promise to pay Y or bearer the amount of
HK$50,000 on or before December 30,
2013." Is the promissory note negotiable?
a. No, the promissory note
becomes invalid because the
amount is in foreign currency.
b. Yes, the promissory note is
negotiable even though the
amount is stated in foreign
currency.
c. No, the promissory note is not
negotiable because the amount
is in foreign currency.
d. Yes, the promissory note is
negotiable because the Hong
Kong dollar is a known foreign
currency in the Philippines.
16. X delivered a check issued by him and
payable to the order of CASH to Y in
payment for certain obligations incurred
by X in favor of Y. Y then delivered the
check to Z in payment for certain
obligations. Which statement is most
accurate?
a. Z can encash the check even
though Y did not indorse the
check.
b. Z cannot encash the check for
lacking in proper endorsement.
c. Y is the only one liable because
he was the one who delivered
the check to Z.
d. The negotiation is not valid
because the check is an
instrument payable to order.
17. A stale check is a check -
 a. that cannot anymore be paid
although the underlying
obligation still exists.
b. that cannot anymore be paid and
the underlying obligation under
the check is also extinguished.
c. that can still be negotiated or
indorsed so that whoever is the
holder can
d. which has not been presented
for payment within a period of
thirty (30) days.
18. In payment for his debt in favor of X, Y
gave X a Manager's Check in the amount
of Php100,000 dated May 30, 2012.
Which phrase best completes the
statement - A Manager's Check:
a. is a check issued by a manager of
a bank for his own account.
b. is a check issued by a manager of
a bank in the name of the bank
against the bank itself for the
account of the bank.
c. is like any ordinary check that
needs to be presented for
payment also.
d. is better than a cashier's check in
terms of use and effect.
19. Which phrase best completes the
statement -- A check which is payable to
bearer is a bearer instrument and:
a. negotiation can be made by
delivery only;
b. negotiation must be by written
indorsement;
c. negotiation must be by specific
indorsement;
d. negotiation must be by
indorsement and delivery.
20. As payment for a debt, X issued a
promissory note in favor of Y but the
promissory note on its face was marked
non-negotiable. Then Y instead of
indorsing the promissory note, assigned
the same in favor of Z to whom he owed
some debt also. Which statement is most
accurate?
a. Z cannot claim payment from X
on the basis of the promissory
note because it is marked non-
negotiable.
b. Z can claim payment from X even
though it is marked non-
negotiable.
c. Z can claim payment from Y
because under the Negotiable
Instrument Law, negotiation and
assignment is one and the same.
d. Z can claim payment from Y only
because he was the endorser of
the promissory note.
21. Negotiable instruments are used as
substitutes for money, which means -
a. that they can be considered legal
tender.
b. that when negotiated, they can
be used to pay indebtedness.
c. that at all times the delivery of
the instrument is equivalent to
delivery of the cash.
d. that at all times negotiation of
the instruments requires proper
indorsement.
22. The signature of X was forged as drawer
of a check. The check was deposited in
the account of Y and when deposited was
accepted by AAA Bank, the drawee bank.
Subsequently, AAA Bank found out that
the signature of X was actually forged.
Which statement is most accurate?
a. The drawee bank can recover
from Y, because the check was
deposited in his account.
b. The drawee bank can recover
from X, because he is the drawer
even though his signature was
forged.
c. The drawee bank is estopped
from denying the genuineness of
 the signature of the X, the
drawer of the check.
d. The drawee bank can recover
from Y because as endorser he
warrants the genuineness of the
signature.
23. A issued a check in the amount of
Php20,000 payable to B. B endorsed the
check but only to the extent of Php1
0,000. Which statement is most accurate?
a. The partial indorsement is not a
valid indorsement, although will
result in the assignment of that
part.
b. The partial indorsement will
invalidate the whole instrument.
c. The endorsee will be considered
as a holder in due course.
d. The partial indorsement is valid
indorsement up to the extent of
the Php10,000.
24. A promissory note which does not have
the words "or order" or "or bearer" will
render the promissory note non-
negotiable, and therefore -
a. it will render the maker not
liable;
b. the note can still be assigned and
the maker made liable;
c. the holder can become holder in
due course;
d. the promissory note can just be
delivered and the maker will still
be liable.
25. A check is -
a. a bill of exchange;
b. the same as a promissory note;
c. is drawn by a maker;
d. a non-negotiable instrument.
26. A check was issued to Tiger Woods. But
what was written as payee is the word
"Tiger Woods". To validly endorse the
check -
a. Tiger Woods must sign his real
name.
b. Tiger Woods must sign both his
real name and assumed name.
c. Tiger Woods can sign his
assumed name.
d. the check has become non-
negotiable.
27. Y, as President of and in behalf of AAA
Corporation, as a way to accommodate X,
one of its stockholders, endorsed the
check issued by X. Which statement is
most acurate?
a. It is an ultra vires act.
b. It is a valid indorsement.
c. The corporation will be held
liable to any holder in due
course.
d. It is an invalid indorsement.
28. In a negotiable instrument, when the sum
is expressed both in numbers and in
words and there is discrepancy between
the words and the numbers -
a. the sum expressed in words will
prevail over the one expressed in
numbers.
b. the sum expressed in numbers
will prevail over the one
expressed in words.
c. the instrument becomes void
because of the discrepancy.
d. this will render the instrument
invalid.
29. A promissory note which is undated is
presumed to be -
a. dated as of the date of issue;
b. dated as of the date of the first
indorsement;
c. promissory note is invalid
because there is no date;
 d. dated on due date.
30. An insurance contract is an aleatory
contract, which means that -
a. the insurer will pay the insured
equivalent to the amount of the
premium paid.
b. the obligation of the insurer is to
pay depending upon the
happening of an uncertain future
event.
c. the insured pays a fixed premium
for the duration of the policy
period and the amount of the
premiums paid to the insurer is
not necessarily the same amount
as what the insured will get upon
the happening of an uncertain
future event.
d. the obligation of the insurer is to
pay depending upon the
happening of an event that is
certain to happen.
31. An Insurance Contract is a contract of
adhesion, which means that in resolving
ambiguities in the provision of the
insurance contract, -
a. the general rule is that, the
insurance contract is to be
interpreted strictly in accordance
with what is written in the
contract.
b. are to be construed liberally in
favor of the insured and strictly
against the insurer who drafted
the insurance policy.
c. are to be construed strictly
against the insured and liberally
in favor of the insurer.
d. if there is an ambiguity in the
insurance contract, this will
invalidate the contract.
32. X is the common law wife of Y. Y loves X
so much that he took out a life insurance
on his own life and made her the sole
beneficiary. Y did this to ensure that X will
be financially comfortable when he is
gone. Upon the death of Y, -
a. X as sole beneficiary under the
life insurance policy on the life of
Y will be entitled to the proceeds
of the life insurance.
b. despite the designation of X as
the sole beneficiary, the
proceeds of the life insurance
will go to the estate of Y.
c. the proceeds of the life
insurance will go to the
compulsory heirs of Y.
d. the proceeds of the life
insurance will be divided equally
amongst X and the compulsory
heirs of Y.
33. X, in January 30, 2009, or two (2) years
before reaching the age of 65, insured his
life for Php20Million. For reason unknown
to his family, he took his own life two (2)
days after his 65th birthday. The policy
contains no excepted risk. Which
statement is most accurate?
a. The insurer will be liable.
b. The insurer will not be liable.
c. The state of sanity of the insured
is relevant in cases of suicide in
order to hold the insurer liable.
d. The state of sanity of the insured
is irrelevant in cases of suicide in
order to hold the insurer liable.
34. X, a minor, contracted an insurance on his
own life. Which statement is most
accurate?
a. The life insurance policy is void
ab initio.
b. The life insurance is valid
provided it is with the consent of
the beneficiary.
c. The life insurance policy is valid
provided the beneficiary is his
estate or his parents, or spouse
or child.
 d. The life insurance is valid
provided the disposition of the
proceeds will be subject to the
approval of the legal guardian of
the minor.
35. The "incontestability clause" in a Life
Insurance Policy means ---
a. that life insurance proceeds
cannot be claimed two (2) years
after the death of the insured.
b. that two (2) years after date of
issuance or reinstatement of the
life insurance policy, the insurer
cannot anymore prove that the
policy is void ab initio or
rescindable by reason of
fraudulent concealment or
misrepresentation of the
insured.
c. that the insured can still claim
from the insurance policy after
two (2) years even though
premium is not paid.
d. that the insured can only claim
proceeds in a life insurance·
policy two (2) years after death.
36. For both the Life Insurance and Property
Insurance, the insurable interest is
required to be -
a. existing at the time of perfection
of the contract and at the time of
loss.
b. existing at the time of perfection
and at the time of loss for
property insurance but only at
the time of perfection for life
insurance.
c. existing at the time of perfection
for property insurance but for
life insurance both at the time of
perfection and at the time of
loss.
d. existing at the time of perfection
only.
37. A house and lot is covered by a real estate
mortgage (REM) in favor of ZZZ Bank. The
bank required that the house be insured.
The owner of the policy failed to endorse
nor assign the policy to the bank.
However, the Deed of Real Estate
Mortgage has· an express provision which
says that the insurance policy is also
endorsed with the signing of the REM.
Will this be sufficient?
a. . No, insurance policy must be
expressly endorsed to the bank
so that the bank will have a right
in the proceeds of such
insurance in the event of loss.
b. The express provision contained
in the Deed of Real Estate
Mortgage to the effect that the
policy is also endorsed is
sufficient.
c. Endorsement of Insurance Policy
in any form is not legally
allowed.
d. Endorsement of the Insurance
Policy must be in a formal
document to be valid.
38. X is a passenger of a jeepney for hire
being driven by Y. The jeepney collided
with another passenger jeepney being
driven by Z who was driving recklessly. As
a result of the collision, X suffered
injuries. Both passenger jeepneys are
covered by Comprehensive Motor
Vehicular Insurance Coverage. If X wants
to claim under the "no fault indemnity
clause", his claim will lie -
a. against the insurer of the
jeepney being driven by Z who
was the one at fault.
b. the claim shall lie against the
insurer of the passenger jeepney
driven by Y because X was his
passenger.
c. X has a choice against whom he
wants to make his claim.
d. None of the above.
39. X insured the building she owns with two
(2) insurance companies for the same
amount. In case of damage, -
 a. X can not claim from any of the
two (2) insurers because with the
double insurance, the insurance
coverage becomes automatically
42. X, while driving his Toyota Altis, tried to
void.
b. the two (2) insurers will be
solidarily liable to the extent of
the loss.
c. the two (2) insurers will be
proportionately liable.
d. X can choose who he wants to
claim against.
40. When X insured his building, X indicated
in the application that it is a residential
building, but actually the building was
being used as a warehouse for some
hazardous materials. What is the effect on
the insurance policy, i f any?
a. The insurance policy can be
cancelled because of the change
in the use.
b. The insurance policy will
automatically be changed.
c. The insurance policy need not be
changed.
d. The insurance policy is fixed
regardless of the change in the
use.
41. X owned a house and lot. X insured the
house. The house got burned. Then he
sold the partially burnt house and the lot
to Y. Which statement is most accurate?
a. X is not anymore entitled to the
proceeds of the insurance policy
because he already sold the
partially burnt house and lot.
43. The AAA Bus Company picks up
b. X is still entitled to the proceeds
of the insurance policy because
what is material is that at the
time of the loss, X is the owner of
the house and lot.
c. No one is entitled to the
proceeds because ownership
over the house and lot was
already transferred.
d. Y will be the one entitled to the
proceeds because he now owns
the partially burnt house and lot.
cross the railway tract of Philippine (xxx
line 2 unread text xxx) approached
Blumentritt Avenida Ext., applied its horn
as a warning to all the vehicles that might
be crossing the railway tract, but there
was really nobody manning the crossing.
X was listening to his lpod touch, hence,
he did not hear the sound of the horn of
the train and so his car was hit by the
train. As a result of the accident, X
suffered some injuries and his car was
totally destroyed as a result of the impact.
Is PNR liable?
a. PNR is not liable because X
should have known that he was
crossing a place designated as
crossing for train, and therefore
should have been more careful.
b. PNR is liable because Railroad
companies owe to the public a
duty of exercising a reasonable
degree of care to avoid injury to
person and property at railroad
crossings which means a flagman
or a watchman should have been
posted to warn the public at all
times.
c. PNR is not liable because it blew
its horn when it was about to
cross the railway along
Blumentritt Avenida Ext.
d. PNR is not liable because X was
negligent, for listening to his lpod
touch while driving.
passengers along EDSA. X, the conductor,
while on board the bus, drew his gun and
randomly shot the passengers inside. As a
result, Y, a passenger, was shot and died
instantly. Is AAA Bus Company liable?
a. The bus company is not liable for
as long as the bus company can
show that when they hired X,
 they did the right selection
process.
b. The bus company cannot be held
liable because what X did is not
part of his responsrbility.
c. The bus company is liable
because common carriers are
liable for the negligence or willful
act of its employees even though
they acted beyond the scope of
their responsibility.
d. The bus company is not liable
because there is no way that the
bus company can anticipate the
act of X.
44. X is a trader of school supplies in Calapan,
Oriental Mindoro. To bring the school
supplies to Calapan, it has to be
transported by a vessel. Because there
were so many passengers, the two (2)
boxes of school supplies were loaded but
the shipping company was not able to
issue the Bill of Lading. So, on board, the
Ship Captain issued instead a "shipping
receipt" to X indicating the two (2) boxes
of school supplies being part of the cargo
of the vessel. Which phrase therefore, is
the most accurate?
a. the owner of the vessel is not
liable because no bill of lading
was issued to X hence, no
contract of carriage was
perfected.
b. it is possible to have a contract
of carriage of cargo even without
a bill of lading, and the "shipping
receipt" would be sufficient.
c. the only acceptable document of
title is a Bill of Lading.
d. None of the above.
45. X took Philippine Airlines Flight PR 102 to
Los Angeles, USA. She had two (2) luggage
checked-in and was issued two (2)
baggage checks. When X reached Los
Angeles one (1) of the two (2) checked in
luggage could not be found. Which
statement is most accurate?
a. PAL is liable for the loss of the
checked- in luggage under the
provisions of the Warsaw
Convention on Air Transport.
b. PAL is liable for the loss only if
the baggage check expressly
states that the airline shall be
liable in case of loss.
c. PAL cannot be held liable
because that is the risk that a
passenger takes when she
checks- in her baggage.
d. PAL can only be held liable if it
can be proven that PAL was
negligent.
46. X owns a passenger jeepney covered by
Certificate of Public Convenience. He
allowed Y to use its Certificate of
Convenience for a consideration. Y
therefore was operating the passenger
jeepney under the same Certificate of
Public Convenience (Kabit System) under
the name of X. The passenger jeepney
met an accident. Who will be liable?
a. Y, the one actually operating the
jeepney, will be liable to the
injured party.
b. X will be the one liable to the
injured party despite the fact
that it is Y who is actually
operating the jeepney, because
while the Kabit System is
tolerated, the public should not
be inconvenienced by the
arrangement.
c. X will not be held liable if he can
prove that he is not the owner
anymore.
d. Public Policy dictates that the
real owner, even not the
registered one, will be held
liable.
47. X owns a fleet of taxicabs. He operates it
through what is known as boundary
system. Y drives one of such taxicabs and
pays X a fixed amount of Php1 ,000 daily
under the boundary system. This means
 that anything above Php1 ,000 would be
the earnings of Y. Y, driving recklessly, hit
an old lady crossing the street. Which
statement is most accurate?
a. X as the owner is exempt from
liability because he was not the
one driving.
b. X as the owner is exempt from
liability because precisely the
arrangement is one under the
"boundary system".
c. X will not be exempt from
liability because he remains to be
the registered owner and the
boundary system will not allow
the circumvention of the law to
avoid liability.
d. Y is the only one liable because
he drove recklessly.
48. The Articles of Incorporation of AAA
Corporation was approved by the
Securities and Exchange Commission
(SEC). After the receipt of the Certificate
of Approval from the SEC, AAA
Corporation decided to immediately start
the operation of its business despite the
fact that it has no approved By-Laws.
What is the legal status of the AAA
Corporation?
a. A de jure corporation;
b. A de facto corporation;
c. A corporation by estoppel;
d. An unregistered corporation.
49. X, the President of ZZZ Corporation, was
authorized by the Board of Directors of
ZZZ Corporation to obtain a loan from YYY
Bank and to sign documents in behalf of
the corporation. X personally negotiated
for the loan and got tile loan at very low
interest rates. Upon maturity of the loan,
ZZZ Corporation was unable to pay. Which
statement is most accurate?
a. Because X was personally acting
in behalf of the Corporation, he
can be held personally liable.
b. X, as President, cannot be
personally held liable for the
obligation of the corporation
even though he signed all the
loan documents, because the
loan was authorized by the
Board.
c. YYY Bank can choose as to who it
wants to hold liable for the loan.
d. If ZZZ Corporation cannot pay, X
can be held subsidiarity liable.
50. X owns 99% of the capital stock of SSS
Corporation. X also owns 99% of TTT
Corporation. SSS Corporation obtained a
loan from VW Bank. On due date, SSS
Corporation defaulted. TTT Corporation is
financiallyhealthy. Which statement is
most accurate?
a. X being a controlling owner of
SSS Corporation can
automatically be held personally
liable for the loan of SSS
Corporation.
b. TTT Corporation, owned 99% by
X, can automatically be held
liable.
c. SSS Corporation and TTT
Corporation, although both are
owned by X, are two (2) distinct
corporations with separate
juridical personalities hence, the
TTT Corporation cannot
automatically be held liable for
the loan of SSS Corporation.
d. The principle of piercing the veil
of corporate fiction can be
applied in this case.
51. A corporation generally can issue both par
value stock and no par value stock. These
are all fixed in the Articles of
Incorporation of the corporation. Which
of the following corporations may not be
allowed to issue no par value shares?
a. Insurance companies;
b. Banks;
c. Trust companies;
 d. All of the above.
52. Father X, an American priest who came
from New York, registered the Diocese of
Bacolod of the Roman Catholic Church
which was incorporated as a corporation
sole. There were years when the head of
the Diocese was a Filipino, but there were
more years when the heads were
foreigners. Today, the head is an
American again. Y donated a piece of land
located in Bacolod City for use as a
school. Which statement is most
accurate?
a. The Register of Deeds of Bacolod
City can refuse to register and
transfer the title because the
present head of the corporation
sole is not a Filipino.
b. The nationality of a corporation
sole depends upon the
nationality of the head at any
given time.
c. A corporation sole, regardless of
the nationality of the head, can
acquire real property either by
sale or donation.
d. A corporation sole is not legally
allowed to own real property.
53. The number of the Board of Trustees of a
55. XXX Corporation and YYY Corporation
non-stock, non-profit educational
institution should be ---
a. five (5) only
b. any number for as long as it is
not less than five (5) and no
more than eleven (11)
c. any number in multiples of five
(5), for as long as it is not less
than five (5) and no more than
fifteen (15).
d. not less than five (5) nor more
than ten (1 0) in multiples of five
(5).
54. X subscribed 10,000 shares in the capital
stocks of AAA Corporation. He paid 50%
of the 10,000 shares. X asked the
Corporate Secretary to issue him the
corresponding stock certificate
representing the 50% of what he already
paid. The Corporate Secretary of the
corporation refused. Was the Corporate
Secretary correct?
a. The Corporate Secretary is
correct because the Corporation
Code provides that no certificate
of stock shall be issued to a
subscriber until the shares as
subscribed have been fully paid.
b. The Corporate Secretary cannot
refuse because a Stock
Certificate can be issued
corresponding to the percentage
of shares which were paid.
c. The Corporate Secretary cannot
refuse because a Certificate of
Stock can be issued provided it is
indicated in the Certificate the
actual percentage of what has
been paid.
d. The Corporate Secretary cannot
refuse because it is his legal duty
to issue a stock certificate
corresponding to the number of
shares actually subscribed
regardless of the actual
payment.
have agreed to be merged into one
corporation. To facilitate the merger,
both corporations agreed that the merger
be made effective on May 31,2012. The
Securities and Exchange Commission
(SEC) approved the Articles of Merger on
June 30, 2012. Which statement is most
accurate?
a. The effective date of the merger
is May 31, 2012, the date
stipulated by the parties as the
effective date.
b. The effective date of the merger
is always the date of the
approval of the Articles of
Merger by the SEC.
c. The effective date of the merger
would be the date approved by
 the Board of Directors and the d. Classifications of shares may be
stockholders. allowed with the approval of the
stockholders and the Board of
d. The stockholders and the Board
Directors.
of Directors can set the effective
date of the merger anytime after 58. ABC Corporation declared stock dividends
the approval of the SEC. to its stockholders. The stock dividends
were approved by the Board of Directors
56. AAA Corporation is a wholly owned
of ABC Corporation. In the subsequent
subsidiary of BBB Corporation. To support
year however, the Board again approved
the business of AAA Corporation, BBB
the redemption of all stock dividends and
Corporation agreed to give its corporate
to pay the shareholdings in cash. Which
guarantee to the loan of AAA
statement is most accurate?
Corporation. What is required so that the
corporate guarantee will be valid? a. The redemption of the stock
dividends can be validly
a. It only requires the approval of
approved by the Board without
the Board of Directors of BBB
any conditions.
Corporation.
b. The redemption of stock
b. The Articles of Incorporation
dividends may only be allowed if
must provide such power and be
there are sufficient earnings and
approved by the Board of
should not be violative of the
Directors.
trust fund doctrine.
c. Providing corporate guarantee to
c. The redemption of the shares
another corporation is a
may be taken from the existing
necessary exercise of power of a
property and other assets of the
corporation.
corporation.
d. It would require both the
d. None of the above.
approval of the Board of
Directors and the stockholders 59. X sold all his shares in AAA Hotel
on record. Corporation to Y. X owns 99% of AAA
Hotel Corporation. As the new owner, Y
57. The capital stock of ABC Corporation is
wanted a reorganization of the hotel
divided into common shares and
which is to include primarily the
preferred shares. Preferred shares are
separation of all existing employees and
preferred as to dividends and common
the hiring of new employees. Which
shares are those shares which have the
statement is most accurate?
regular and ordinary attributes of a share
of a corporation. Which statement is most a. With the change in ownership, in
accurate? effect there is a new juridical
entity and therefore all
a. This kind of classification may
employees are considered
not be allowed or else it will
separated.
violate the Doctrine of Equality
of shares. b. Despite the change in
shareholder, there is actually no
b. Classifications of shares may be
change in the juridical entity and
allowed for as long as it is clearly
therefore existing employees can
stated as such in the Articles of
not automatically be considered
Incorporation of the Corporation.
separated.
c. Classifications of shares is mainly
c. Y, as the new shareholder, has
for business purpose to attract
the right to retain only those
investors.
 employees who in his judgment
are qualified.
d. For as long as the existing
employees are given their
separation pay, they can be
terminated.
60. South China Airlines is a foreign airline
company. South China Airlines tickets are
sold in the Philippines though Philippine
Airlines as their general agent. South
China Airlines is not registered to do
business as such with the Philippine
Securities and Exchange Commission.
Which statement is most accurate?
a. Although unlicensed to do
business in the Philippines, South
China Airlines can sue before the
Philippine Courts and can also be
sued.
b. South China Airlines can sue but
cannot be sued.
c. South China Airlines cannot sue
and cannot be sued also.
d. South China Airlines can be sued
in Philippine Courts but cannot
sue.
61. So that ABC Corporation could venture
into more projects, it needed to raise
funds by issuing new shares to increase its
capitalization. X, Y, Z, J and G are the five
existing shareholders of the company.
They hold 20% each. How will the
additional shares be divided among the
existing shareholders?
a. The existing shareholders can
subscribe to the new shares
equivalent to their existing
shareholdings because the
Corporation Code provides that
each of the existing stockholders
will have preemptive rights to
the extent of their existing
shareholdings.
b. The existing shareholders'
preemptive rights is equivalent
to the percentage that they
want.
c. Each of the existing shareholder
can exercise their right of first
refusal against each other.
d. Preemptive rights and right of
first refusal are one and the
same.
62. If ABC Corporation will increase its
authorized capital stock, the Corporation
Code requires -
a. the approval of the majority of
the Board of Directors only.
b. the approval of the majority of
the stockholders and the Board
of Directors.
c. the approval of 2/3 of the
shareholders of the outstanding
capital stock as well as the
approval of the Securities and
Exchange Commission.
d. the approval of the majority of
the Board of Directors and
approval of the shareholders
holding 2/3 share of the
outstanding capital stock.
63. X is a minority stockholder of CCC
Corporation. Y is a member of the Board
of Directors of CCC Corporation and at the
same time he is the President. X believes
that Y is mismanaging CCC Corporation
hence, as a stockholder and in behalf of
the other stockholders, he wanted to sue
Y. Which statement is most accurate?
a. X can institute a derivative suit in
behalf of himself as a
stockholder.
b. A derivative suit must be
instituted in behalf of the
corporation.
c. Derivative suit is an exclusive
remedy that X can institute.
d. Derivative suit is not the remedy
in this situation.
64. The term GGG Corporation in accordance
with its Articles of Incorporation ended
last January 30, 2012. The term was not
 extended. What will happen to the
corporation?
a. The corporation is dissolved ipso
facto.
b. There is a need to pass a board
resolution to formally dissolve
the corporation.
c. The Board of Directors must pass
a resolution for the corporation
to formally go into liquidation.
d. The stockholders must pass a
resolution to dissolve the
corporation.
65. The term of one (1) year of the Board of
Directors of AAA Corporation expired last
February 15, 2012. No new election of the
Board of Directors was called, hence, the
existing members of Board continue as
Directors in hold over capacity. Which
statement is most accurate?
a. This is allowed provided there is
a valid and justifiable reason for
not calling for an election of the
new members of the Board.
b. This is not allowed because the
term of the directors must only
be for one (1) year.
c. The positions of the members of
the Board of Directors will be
automatically declared vacant.
d. Acting as members of the Board
of Directors in a hold over
capacity must be ratified by the
stockholders.
66. AAA Corporation is a foreign corporation
that wants to operate a representative
office here in the Philippines. As required
by the Corporation Code, there is a need
to appoint a Resident Agent as a
condition precedent to the issuance of a
license to transact business in the
Philippines. After two (2) years, AAA
Corporation removed its Resident Agent
and did not appoint anyone anymore.
Which statement is the most accurate?
a. This can be a ground for
revocation or suspension of its
license to do business.
b. There is no more effect in the
license because anyway at the
time of registration, a resident
agent was appointed.
c. This can be a ground for
suspension only.
d. This will result in automatic
revocation of its license to do
business in the Philippines.
67. The By-laws of ABC Corporation is silent
as to when a stockholder can be qualified
to attend the meeting of the
stockholders. The Corporate Secretary
sent out the notice of the stockholders
meeting two (2) days before the meeting
and at that time X was not yet a
stockholder. On the day of the meeting,
however, X became a shareholder which
was duly recorded in the stock and
transfer book. Which statement is most
accurate?
a. X is a stockholder of ABC
Corporation as of the time of
meeting of the stockholders for
the purpose of electing the
members of the board.
b. X is not qualified to elect
members of the board because
at the time the notice of the
meeting was sent, she was not
yet a stockholder.
c. Qualifications as to who are
considered as stockholders on
record for purposes of being able
to elect members of the board
are to be determined by the By-
laws alone.
d. None of the above.
68. X, who is the Executive Vice President of
ABC Corporation, a listed company, can
be held liable or guilty of insider trading if,
he -
a. bought shares of ABC
Corporation when it was
 planning to acquire another
company to improve its asset
base, the news of which
increased the price of the shares
in the Stock Exchange.
b. bought shares of XYC
Corporation, a sister company of
ABC Corporation when he
learned that XYC Corporation
was about to also list its share in
the Philippine Stock Exchange.
c. bought shares of ZZZ Corporation
when he learned that ABC
Corporation would acquire ZZZ
Corporation.
d. All of the above.
69. The purpose of the "Tender Offer" Rule is
to -
a. ensure an even playing field for
all shareholders of a company in
terms of opportunity to sell their
shareholdings.
b. ensure that minority
shareholders in a publicly listed
company are protected in the
sense that they will equally have
the same opportunity as the
majority shareholders in terms of
selling their shares.
c. ensure that the shareholders
who would also want to sell their
shareholdings will have the
opportunity for a better price.
d. All of the above.
70. Section 38 of The Securities Regulation
Code defines an independent director as
a person who must not have a relation
with the corporation which would
interfere with his exercise of independent
judgment in carrying out the
responsibilities of a director. To ensure
independence therefore, he must be -
a. nominated and elected by the
entire shareholders;
b. nominated and elected by the
minority shareholders;
c. nominated and elected by the
majority shareholders;
d. appointed by the Board.
71. "Securities" issued to the public are
required by law to be registered with -
a. the Bangko Sentral ng Pilipinas;
b. the Philippine Stock Exchange;
c. the Securities and Exchange
Commission;
d. the Securities and Exchange
Commission and the Philippine
Stock Exchange.
72. The government agency granted with the
power of supervision and examination
over banks and non-bank financial
institutions performing quasi-banking
functions, to ensure that the conduct of
its business is on a sound financial basis
that will provide continued solvency and
liquidity is -
a. The Philippine Deposit Insurance
Corporation;
b. The Bangko Sentral ng Pilipinas;
c. The Anti-Money Laundering
Council;
d. The Securities and Exchange
Commission.
73. X maintains a savings deposit in the
amount of Php·1 Million with ABC Bank
Corporation. X also has obtained a loan
from ABC Bank Corporation in the
amount of Php1 Million. In case of
default,
a. ABC Bank can set-off the loan
from the savings account being
maintained by X with ABC Bank.
b. Set-off is not possible because
legal compensation is not
allowed in banking transaction.
c. Deposit accounts are usually
earmarked for specific purpose
hence offsetting is not legally
possible.
 d. Off -setting is not possible
because the obligation of X is a
"simple loan".
74. XYZ Corporation is engaged in lending
funds to small vendors in various public
markets. To fund the lending, XYZ
Corporation raised funds through
borrowings from friends and investors.
Which statement is most accurate?
a. XYZ Corporation is a bank.
b. XYZ Corporation is a quasi-bank.
c. XYZ Corporation is an Investment
Company.
d. XYZ is none of the above.
75. XXX Bank Corporation and ZZZ
Corporation were merged into XX ZZ Bank
Corporation. So as not to create any
unnecessary conflict, all the former
directors of both banks wanted to be
appointed /elected as members of the
Board of Directors of the merged bank.
Each bank used to have eleven (11)
members of the board. The maximum
number of directors of the merged bank is
- 0) years.
a. 15;
b. 22;
c. 21;
d. 11.
76. All senior officers of ABC Bank are entitled
to obtain a housing loan. X is an Executive
Vice President for Operations of ABC
Bank. She obtained a housing loan with
the ABC Bank. Which statement is most
accurate?
a. The housing loan of X requires a
guarantor from somebody who is
not connected with the bank.
b. The housing loan of X requires
the approval of the Board of
Directors of the bank.
c. The housing loan of X, being a
benefit for employees, does not
require (a) but will require (b).
d. The housing loan of X, being a
benefit for employees, will not
require (a) and (b).
77. ABC Holdings Company, a Hong Kong
company, owns 10% of XYZ Bank. Because
of the peace and order situation in the
Philippines, ABC Holding Company
wanted to sell its shareholdings in XYZ
Bank. Unfortunately, nobody is interested
to buy a 1 0% shareholdings in a bank.
The board of directors of XYZ Bank
thought that it would be a good idea to
buy back the shares owned by ABC
Holding Company. Which statement is
most acurate?
a. Buying back the shares by XYZ
Bank is absolutely not allowed.
b. Buying back the shares may be
allowed provided it is with the
approval of the Monetary Board
and disposed of within six (6)
months.
c. Buying back the shares may be
allowed provided such shares
'will be disposed of within ten (1
d. Buying back the shares may be
done anytime provided the
Board of Directors will approve
the same.
78. X is being charged for violation of Anti-
Graft and Corrupt Practices because he is
suspected of having accumulated
unexplained wealth. X maintains deposit
accounts with ABC Bank. The
Ombudsman filed criminal cases against X
before the Sandiganbayan. Can the Court
issue subpoenas against ABC Bank to
produce all documents pertaining to all
the deposit accounts of X?
a. Yes, because there is already a
pending case and provided the
subpoena must be specific as to
which account.
b. Yes, it is enough that the specific
bank is identified.
 c. No, because the issuance of the
subpoena has no real legal basis.
d. Even without a subpoena,
information about the deposit
accounts of X can be submitted
to the Sandiganbayan because it
will be used in a pending case.
79. X, a private individual, maintains a dollar
deposit with ABC Bank. X is suspected to
be the leader of a Kidnap for Ransom
Gang and he is suspected of depositing all
ransom money in said deposit account
which are all in US Dollars. The police
want to open said account to know if
there are really deposits in big amounts.
Which statement is most accurate?
a. The same rules under Secrecy of
Bank Deposit Act will apply.
b. An approval from the Monetary
Board is necessary to open the
account.
c. Because the deposit is in US
Dollars, it is covered by the
Foreign Currency Deposit Act
which allows disclosure only
upon the written persmission of
the depositor.
d. Approval from the Court is
necessary to order disclosure of
the account.
80. X is a depositor of AAA Bank. She has
three (3) deposit accounts all under her
name. One, in checking account, one in
saving account and another one in time
deposit account. Each account has a
balance of Php250,000. AAA Bank became
insolvent. Philippine Deposit Insurance
Corporation closed the Bank. X therefore
is unable to withdraw from all of the
accounts. She then filed her claims with
the Philippine Deposit Insurance
Corporation. Which statement is most
accurate?
a. X can claim a total of Php500,000
for all the three (3) accounts.
b. X can only claim from one (1)
account of Php250,000.
c. X can claim a total of Php750,000
from all the three (3) accounts.
d. X cannot claim anything from
any of the deposit accounts.
81. The Bank Secrecy Law (RA 1405) prohibits
disclosing any information about deposit
records of an individual without court
order except -
a. in an examination to determine
gross estate of a decedent.
b. in an investigation for violation
of Anti-Graft and Corrupt
Practices.
c. in an investigation by the
Ombudsman.
d. in an impeachment proceeding.
82. X works as a research computer engineer
with the Institute of Computer
Technology, a government agency. When
not busy with his work, but during office
hours, he developed a software program
for law firms that will allow efficient
monitoring of the cases, which software
program is not at all related to his work.
Assuming the program is patentable, who
has the right over the patent?
a. x;
b. Institute of Computer
Technology;
c. Neither X nor the Institute of
Computer Technology can claim
patent right over the invention;
d. X and the employer of X will
jointly have the rights over the
patent.
83. The "test of dominancy" in the Law on
Trademarks, is a way to determine
whether there exists an infringement of a
trademark by -
a. determining if the use of the
mark has been dominant in the
market.
b. focusing on the similarity of the
prevalent features of the
 competing marks which might
create confusion.
c. looking at the mark whether
they are similar in size, form or
color.
d. looking at the mark whether
there is one specific feature that
is dominant.
84. X's painting of Madonna and Child was
used by her mother to print some
personalized gift wrapper. As part of her
mother's efforts to raise funds for Bantay
Bata, the mother of X sold the wrapper to
friends. Y, an entrepeneur, liked the
painting in the wrapper and made many
copies and sold the same through
National Bookstore. Which statement is
most accurate?
a. Y can use the painting for his use
because this is not a 87. Which phrase best completes the
copyrightable material.
b. X can sue Y for infringement
because artistic works are
protected from moment of
creation.
c. Works of art need to be
copyrighted also to get
protection under the law.
d. Y can use the drawing even
though not copyrighted because
it is already a public property
having been published already.
85. Compulsory Licensing of Inventions which
are duly patented may be dispensed with
or will be allowed exploitation even
without agreement of the patent owner
under certain circumstances, like national
emergency, for reason of public interest,
like national security, etc. The person who
can grant such authority is -
a. the Director General of the
Intellectual Property Office;
b. the Director of Legal Affairs of
the Intellectual Property Office;
c. the owner of the Patent right;
d. any agent of the owner of the
Patent right.
86. The Fair Use Doctrine allows others to
utilize copyrighted works under certain
conditions. The factors to consider
whether use is fair or not would be the
purpose and character of the use, nature
of the copyrighted work, amount and
substantiality of the portions used, and
what else?
a. effect of the use upon the
creator of the work.
b. effect of the use upon the
potential market of the work.
c. effect of the use upon the public
in general.
d. effect of the use upon the class
in which the creator belongs.
statement - A chattel mortgage can be
constituted to secure:
a. obligations both past and future;
b. obligations existing at the time
the mortgage is constituted;
c. future obligations only;
d. past obligations only.
88. Which phrase best completes the
statement - A chattel mortgage can cover:
a. only property described in the
deed without exception;
b. can also cover substituted
property;
c. properties described in the deed
except in case of stock in trade
being a substitute;
d. after acquired property.
89. Which phrase best completes the
statement - The Deed of Chattel
mortgage, if not registered with the
Register of Deeds where debtor resides:
 a. is not valid, hence not binding
between the mortgagor and the
mortgagee;
b. is binding between the
mortgagor and the mortgagee
but will not affect third party;
c. to be valid between the
mortgagor and the mortgagee, it
must be coupled with the
delivery of the subject matter of
the chattel mortgage;
d. is as if a non-existent chattel
mortgage.
90. Which phrase best completes the
statement - To bind third parties, a chattel
mortgage of shares of stock must be
registered:
a. with the Register of Deeds where
the debtor resides;
b. with the Register of Deeds where
the principal office of the
corporation is;
c. in the Stock and Transfer Book of
the corporation with the
Corporate Secretary;
d. with the Register of Deeds where
the debtor resides and the
principal office of the
corporation.
91. Which phrase best completes the
statement - The affidavit of good faith in a
Deed of Chattel Mortgage is:
a. an oath where the parties swear
that the mortgage is made for
the purpose of securing the
obligations specified and that the
obligation is just and valid;
b. an affidavit, the absence of
which will vitiate the mortgage
between the parties;
c. necessary only if the chattel
being mortgaged are growing
crops;
d. a certification from the
mortgagor that he is the
mortgagor of the chattel.
92. X defaulted in his loan with Y. Y instituted
extra-judicial foreclosure of the property
subject of a real estate mortgage that
secured the loan. X has one year within
which to redeem the property. After the
foreclosure, X filed an action questioning
the validity of the extra- judicial
foreclosure sale. Which statement is most
accurate?
a. The one (1) year period within
which to redeem will be
interrupted by the filing of an
action questioning the validity of
the foreclosure.
b. The one (1) year period will not
be interrupted by the filing of the
action.
c. The one (1) year period will be
extended for another year
because of the filing of an action
questioning the validity of the
foreclosure sale.
d. If the action which questions the
validity of the foreclosure
prospers, the period will be
interrupted.
93. What is the effect if the. proceeds in an
extra-judicial foreclosure sale is not
sufficient to pay for the obligation?
a. the mortgagee can claim for
deficiency judgment from the
debtor.
b. the mortgagee can claim for
deficiency judgment from the
mortgagor even though it is a
third party mortgage.
c. the mortgagee has no more
recourse or claim against the
debtor.
d. the mortgagee cannot claim for
deficiency judgment from the
debtor because its an
extrajudicial foreclosure.
94. X mortgaged her residential house and lot Agreement. Can XYC Corporation refuse
in favor of ABC Bank. X defaulted in her to pay the same?
loan and so the bank foreclosed the real
a. No, because handling charges
estate mortgage on the residential house.
and other fees are usual in
Y then bought the residential house and
certain banking transactions.
lot before the expiration of the
redemption period. Can Y now take b. Yes, because ABC Bank is
possession of the property? required to provide XYZ
Corporation not only the amount
a. No, because it is still covered by
of the monthly installments but
the redemption period and the
also the details of the finance
purchaser is not yet entitled as a
charges as required by the Truth
matter of right to take
in Lending Act.
possession of the property.
c. No, because the Finance
b. Yes, the purchaser is now
Agreement is a valid document
entitled to the possession of the
to establish the existence of the
house.
obligation.
c. No, because there is a need to
d. Yes, because legally, finance
talk to X to leave the house.
charges are never allowed in any
d. No, because Y was not the one banking transaction.
who foreclosed the mortgage on
97. Which of the following is an exception to
the property.
the secrecy of bank deposits which are in
95. Which phrase best completes the Philippine Pesos, but NOT an exception to
statement - When a debt is secured by a the secrecy of foreign currency deposits?
real estate mortgage, upon default of the
a. Upon Bangko Sentral ng Pilipinas
debtor:
(SSP) inquiry into or examination
a. the only remedy of the creditor of deposits or investments with
is to foreclose the real estate any bank, when the inquiry or
mortgage; examination is made in the
course of the SSP's periodic
b. another remedy is filing an
special examination of said bank
action for collection and then
to ensure compliance with the
foreclose if collection is not
Anti-Money Laundering Act
enough;
(AMLA);
c. the creditor can foreclose the
b. Upon Philippine Deposit
mortgage and demand collection
Insurance Corporation (PDIC) and
for any deficiency;
SSP inquiry into and examination
d. None of the above. of deposit accounts in case there
is a finding of unsafe or unsound
96. XYZ Corporation bought ten (1 0) units of banking practice;
Honda Civic from CCC Corporation. ABC
Bank granted a loan to XYC Corporation c. Upon inquiry in cases of
which executed a financing agreement impeachment;
which provided for the principal amount,
d. Upon inquiry by the
the installment payments, the interest
Commissioner of Internal
rates and the due dates. On due dates of
Revenue in the event a taxpayer
the installment payments, XYZ
files an application to
Corporation was asked to pay for some
compromise his tax liabilities on
handling charges and other fees which
were not mentioned in the Financing
 the ground of financial
incapacity.
98. The Anti-Money Laundering Law is a law
that seeks to prevent money laundering
activities by providing for more
transparency in the Philippine Financial
System, hence the following institutions
are covered by the law, except:
a. bank and any financial
institutions;
b. pawnshops;
c. casino operators;
d. All of the above.
99. For purposes of determining violation of
the prov1s1ons of Anti-Money Laundering
Law, a transaction is considered as a
"Suspicious Transaction" with "Covered
Institutions" regardless of the amount
involved, where which the following
circumstances exist/s?
a. the amount involved is not
commensurate with the client's
business or financial capacity;
b. there is no underlying legal or
trade obligation, purpose or
economic justification;
c. client is not properly identified;
d. All of the above.
100.The main feature of the Foreign
Investment Act of 1991 is to introduce the
concept of "Negative Lists". Under the
said law, what is a "Negative List"?
a. It is a list of business activities or
enterprises in the Philippines
that foreigners are disqualified to
engage in.
b. It is a list of business activities or
enterprises in the Philippines
that foreigners are qualified to
engage in.
c. It is a list of business activities or
enterprises that are open to
foreign investments provided it
is with the approval of the Board
of Investment.
d. It is a list of business activities or
enterprises that are open to
foreign investments provided it
is with the approval of the
Securities and Exchange
Commission.
I
ABC Company filed a Petition for Rehabilitation
with the Court. An Order was issued by the Court,
(1) staying enforcement of all claims, whether
money or otherwise against ABC Company, its
guarantors and sureties not solidarily liable with
the company; and (2) prohibiting ABC Company
from making payments of its liabilities,
outstanding as of the date of the filing of the
Petition. XYC Company is a holder of an irrevocable
Standby Letter of Credit which was previously
procured by ABC Company in favor of XYC
Company to secure performance of certain
obligations. In the light of the Order issued by the
Court.
a. Can XYC Company still be able to draw on
their irrevocable Standby Letter of Credit
when due? Explain your answer. (5%)
b. Explain the nature of Letters of Credit as a
financial devise. (5%)
II
CCC Car, Inc. obtained a loan from BBB Bank,
which fund was used to import ten (10) units of
Mercedes Benz S class vehicles. Upon arrival of the
vehicles and before release of said vehicles to CCC
Car, Inc., X and Y, the President and Treasurer,
respectively, of CCC Car, Inc. signed the Trust
Receipt to cover the value of the ten (10) units of
Mercedes Benz S class vehicles after which, the
vehicles were all delivered to the Car display room
of CCC Car, Inc. Sale of the vehicles were slow, and
it took a month to dispose of the ten (10) units.
CCC Car, Inc. wanted to be in business and to save
on various documentations required by the bank,
decided that instead of turning over the proceeds
of the sales, CCC Car, Inc. used the proceeds to buy
another ten (10) units of BMW 3 series.
 a. Is the action of CCC Car, Inc. legally
justified? Explain your answer. (5%)
b. Will the corporate officers of CCC Car, Inc.
be held liable under the circumstances?
Explain your answer. (5%)
III
X borrowed money from Y in the amount of
Php1Million and as payment, issued a check. Y
then indorsed the check to his sister Z for no
consideration. When Z deposited the check to her
account, the check was dishonored for
insufficiency of funds.
a. Is Z a holder in due course? Explain your
answer. (5%)
b. Who is liable on the check. The drawer or
the indorser? Explain your answer. (5%)
IV
Indicate and explain whether the promissory note
is negotiable or non-negotiable.
a. I promise to pay A or bearer
Php100,000.00 from my inheritance
which I will get after the death of my
father. (2%)
b. I promise to pay A or bearer Php100,000
plus the interest rate of ninety (90) – day
treasury bills. (2%)
c. I promise to pay A or bearer the sum of
Php100,000 if A passes the 2012 bar
exams. (2%)
d. I promise to pay A or bearer the sum of
Php100.000 on or before December 30,
2012. (2%)
e. I promise to pay A or bearer the sum of
Php100,000. (2%)
V mortgage, what rights, if any, are left with
X borrowed from CCC Bank. She mortgaged her
house and lot in favor of the bank. X insured her
house. Tt1e bank also got the house insured.
a. Is this double insurance? Explain your
answer. (3%)
b. Is this legally valid? Explain your answer.
(3%)
c. In case of damage, can X and CCC Bank
separately claim for the insurance
proceeds? (4%)
VI
X is a Filipino immigrant residing in Sacramento,
California. Y is a Filipino residing in Quezon City,
Philippines. Z is a resident alien residing in Makati
City. GGG Corporation is a domestic corporation -
40% owned by foreigners and 60% owned by
Filipinos, with T as authorized representative. CCC
Corporation is a foreign corporation registered
with the Philippine Securities and Exchange
Commission. KKK Corporation is a domestic
corporation (100%) Filipino owned. S is a Filipino,
16 years of age, arid the daughter of Y.
a. Who can be incorporators? Who can be
subscribers? (2%)
b. What are the differences between an
incorporator and a subscriber, if there are
any? (2%)
c. Who are qualified to become members of
the board of directors of the corporation?
(2%)
d. Who are qualified to act as Treasurer of
the company? (2%)
e. Who can be appointed Corporate
Secretary? (2%)
VII
X obtained a loan for Php50Million from SSS Bank.
The collateral is his vacation house in Baguio City
under a real estate mortgage. X needed more
funds for his business so he again borrowed
another Php10Million, this time from BBB Bank,
another bank, using the same collateral. The loan
secured from SSS Bank fell due and X defaulted.
a. If SSS Bank forecloses the real estate
888 Bank as mo1igagee also? (2%)
b. If the value of the Baguio property is less
than the amount of loan, what would be
the recourse of SSS Bank? BBB Bank? (2%)
c. If the value of the property is more that
the amount of the loan, who will benefit
from the excess value of the property?
(2%)
 d. If X defaulted with its loan in favor of BBB
Bank but fully paid his loan with SSS Bank,
can BBB Bank foreclose the real mortgage
executed in its favor? (2%)
e. Does X have any legal remedy after the
foreclosure in the event that later on he
has the rnoney to pay for the loan? (1%)
f. If SSS Bank and BBB Bank abandon their
rights under the real estate mortgage, is
there any legal recourse available to
them? (1%)
VIII
X obtained a Php10Million loan from BBB Banking
Corporation. The loan is secured by Real Estate
Mortgage on his vacation house in Tagaytay City.
The original Deed of Real Estate Mortgage for the
Php10Million was duly registered. The Deed of
Real Estate Mortgage also provides that "The
mortgagor also agrees that this mortgage will
secure the payment of additional loans or credit
accommodations that may be granted by the
mortgagee ... " Subsequently, because he needed
more funds, he obtained another Php5Million
loan. On due dates of both loans, X failed to pay
the Php5Million but fully paid the Php10Million.
BBB Banking Corporation instituted extrajudicial
foreclosure proceedings.
a. Will the extrajudicial foreclosure prosper
considering that the additional
Php5Million was not covered by the
registration? (5%)
CIVIL LAW (2012)
b. What is the meaning of a "dragnet clause"
in a Deed of Real Estate Mortgage? Under
what circumstances will the "dragnet
clause" be applicable? ( 5%)
IX
A, B, C, D, E are all duly elected members of the
Board of Directors of XYZ Corporation. F, the
general manager, entered into a supply contract
with an American firm. The contract was duly
approved by the Board of Directors. However, with
the knowledge and consent of F, no deliveries
were made to the American firm. As a result of the
non-delivery of the promised supplies, the
American firm incurred damages. The American
firm would like to file a suit for damages. Can the
American firm sue:
a. The members of the Board of Directors
individually, because they approved the
transaction? (2%)
b. The corporation? (2%)
c. F, the general manager, personally,
because the non-delivery was with his
knowledge and consent? (2%)
d. Explain the rules on liabilities of a
corporation for the act of its corporate
officers and the liabilities of the corporate
officers and Board of Directors of a
corporation acting in behalf of the
corporation. (4%)
X
AAA Corporation is a bank. The operations of AAA
Corporation as a bank was not doing well. So, to
avert any bank run, AAA Corporation, with the
approval of the Monetary Board, sold all its assets
and liabilities to BBB Banking Corporation which
includes all deposit accounts. In effect then, BBB
Corporation will service all deposits of all
depositors of AAA Corporation.
a. Will the sale of all assets and liabilities of
AAA Corporation to BBB Banking
Corporation automatically dissolve or
terminate the corporate existence of AAA
Corporation? Explain your answer. (5%)
b. What are the legal requirements in order
that a corporation may be dissolved? (5%)
1. Which of the following is NOT included in the
attributes of juridical capacity?
a) Juridical capacity is inherent in every natural
person, and therefore it is not acquired.
b) Juridical capacity is lost only through death.
c) Juridical capacity is the fitness to be the subject
of legal relations.
d) Juridical capacity cannot exist without capacity
to act.
2. Which of the following is NOT a restriction on
one’s capacity to act?
a) Minority
b) Marriage
c) Deaf-mute
d) Civil Interdiction
3. This attribute or incident of a case determine
whether it is a conflict-of-laws case or one covered
by domestic law.
a) Cause of action
b) Foreign element
c) Jurisdiction
d) Forum non conveniens
4. The capacity of an heir to succeed shall be
governed by the:
a) national law of the decedent’s heirs
b) law of the country where the decedent was a
resident at the time of his death
c) national law of the person who died
d) law of the country where the properties of the
decedent are located.
5. Atty. BUKO, a Filipino, executed a will while he
was in Spain. The attestation clause of the said will
does not contain Buko’s signature. It is valid under
Spanish law. At its probate in Manila, it is being
opposed on the ground that the attestation clause
does not contain BUKO’s signature. Is the
opposition correct? Choose the best answer..
a) Yes, because it is a fatal defect.
b) Yes, the will is not valid under Philippine law.
c) No, attestation clause is not an act of the
testator.
d) No, the governing law is Spanish law.
6. Ramon, a Filipino, executed a will in Manila,
where he left his house and located in BP Homes
Parañaque in favor of his Filipino son, Ramgen.
Ramon’s other children RJ and Ramona, both
Turkish nationals, are disputing the bequest to
Ramgen. They plotted to kill Ramgen. Ramon
learned of the plot, so he tore his will in two pieces
out of anger. Which statement is most accurate?
a) The mere act of Ramon Sr. is immaterial
because the will is still readable.
b) The mere act of tearing the will amounts to
revocation.
c) The tearing of the will may amount to
revocation if coupled with intent of revoking it.
d) The act of tearing the will is material.
7. Even if the applicable law is a foreign law, a
count in the Philippines may be constrained to
apply Philippine law under any of the following
instances, except:
a) when the foreign law, judgment or contract is
contrary to a sound and important public policy of
the forum;
b) when the property subject of the case is located
outside of the Philippines;
c) when the foreign law or judgment is penal in
nature;
d) when the foreign law is procedural in nature.
8. If a will is executed by a testator who was born a
Filipino citizen but became naturalized Japanese
citizen at the time of his death, what law will
govern its testamentary provisions if the will is
executed in China and the property being disposed
is located in Indonesia?
a) Chinese law
b) Philippine law
c) Indonesia law
d) Japanese law
9. A Japanese national and a Filipino national
entered into a contract for services in Thailand.
The services will be rendered in Singapore. In case
of breach, what law will govern?
a) Thailand law
b) Philippine law
c) Singapore law
d) Japanese law
10. Pedro (Filipino) and his wife Jane (American)
executed a joint will in Canada, where such joint
will is valid. In case the joint will is probated in
Japan, what law will govern the formalities of the
joint will?
a) American law
b) Philippine law
c) Canadian law
d) Japanese law
11. A French national revokes his will in Japan
where he is domiciled. He then changed his
domicile to the Philippines where he died. The
revocation of his will in Japan is valid under
Japanese law but invalid under Philippine law. The
affected heir is a Malaysian national residing in the
Philippines. What law will apply?
a) Japanese law
b) Philippine law
c) French law
d) Malaysian law
12. In the absence of contrary stipulation in a
marriage settlement, property relations of Filipino
spouses shall be governed by ---
a) Philippines laws
b) Law of the place where the spouses reside
c) Law of the place where the properties are
situated
d) Law of the place where they were married.
13. The will of a Filipino executed in a foreign
country ---
a) cannot be probated in the Philippines;
b) may be probated in the Philippines provided
that properties in the estate are located in the
Philippines;
c) cannot be probated before the death of the
testator;
d) may be probated in the Philippines provided it
was executed in accordance with the laws of the
place where the will was executed.
14. Pedro (Filipino and Bill (American) entered into
a contract in Australia, whereby it was agreed that
Pedro will build a commercial building for Bill in
the Philippines, and in payment for the
construction, Bill will transfer and convey his cattle
ranch located in Japan in favor of Pedro. In case
Pedro performs his obligation, but Bill fails or
refuses to pay, what law will govern?
a) American law
b) Philippine law
c) Australian law
d) Japanese law
(Facts for item numbers 15-18)
In 1989, Charice (Filipina) and Justine (American),
were married in the Philippines. In 1990, they
separated and Justine went to Las Vegas where he
obtained a divorce in the same year. He then
married another Filipina, Lea, in Canada on
January 1, 1992. They had two (2) sons, James and
John (who were both born in 1992). In 1993, after
failing to hear from Justine, Charice married Bugoy
(a Filipino), by whom she had a daughter, Regine.
In 2009, Regine married James (son of Justine with
Lea) in California, where such marriage is valid.
15. What is the current status of the marriage of
Charice and Justine under Philippine laws?
a) Valid
b) Void
c) Voidable
d) Dissolved
16. What id the status of the marriage between
Charice and Bugoy under Philippine laws?
a) Valid
b) Void
c) Voidable
d) Unenforceable
17. What is the status of the marriage between
Charice and Bugoy under Philippine laws?
a) Valid
b) Void
c) Voidable
d) Unenforceable
18. What is the status of the marriage between
Regine and James under Philippine laws?
a) Valid
b) Void
c) Voidable
d) Unenforceable
19. Ricky and Princess were sweethearts. Princess
became pregnant. Knowing that Ricky is preparing
for the examinations, Marforth, a lawyer and
cousin of Princess, threatened Ricky with the filing
of a complaint for immorality in the Supreme
Court, thus preventing him from taking
examinations unless he marries Princess. As a
consequence of the threat, Ricky married Princess.
Can the marriage be annulled on the ground of
intimidation under Article 45 of the Family Code?
Choose the best answer.
a) Yes, because without the threat, Ricky would
not have married Princess.
b) Yes, because the threat to enforce the claim of
Princess vitiates the consent of Ricky in contracting
the marriage.
c) No, because the threat made by Marforth is just
and legal.
d) No, because Marforth is not a party to the
contract of marriage between Princess and Ricky.
20. Audrey, single, bought a parcel of land in
Malolos City from Franco for P 1Million. A contract
was executed between them which already vested
upon Audrey full ownership of the property,
although payable in monthly installments for a
period of four (4) years. One (1) year after the
execution of the contract, Audrey got married to
Arnel. They executed a marriage settlement
whereby they agreed that their properties shall be
governed by the regime of conjugal partnership of
gains. Thereafter, subsequent installments were
paid from the conjugal partnership funds. Is the
land conjugal or paraphernal?
a) The land is conjugal because the installments
were paid from the conjugal partnership funds.
b) The land is paraphernal because ownership
thereof was acquired before the marriage.
c) The land is both conjugal and paraphernal funds
of installments were paid from both the personal
funds of Audrey and the conjugal partnership
funds.
d) The land is paraphernal because it was Audrey
who purchased the same.
21. Ernesto donated a mobile phone
worth P 32,000 to Hubert orally and delivered the
unit to Hubert who accepted. Which statement is
most accurate?
a) The donation is void and Ernesto may get
mobile phone back.
b) The donation is void but Ernesto cannot get the
mobile phone back.
c) The donation is voidable and may be anulled.
d) The donation is valid.
22. Agay, a Filipino citizen and Topacio, an
Australian citizen, got married in the consular
office of the Philippines in Australia. According to
the laws of Australia, a marriage solemnized by a
consular official is valid, provided that such
marriage is celebrated in accordance with the laws
of such consular official. Under Philippine law,
what is the status of the marriage of Agay and
Topacio? Choose the best answer.
a) Void, because the consular official only has
authority to solemnize marriages between
Filipinos.
b) Valid, because according to the laws of
Australia, such consular official has authority to
celebrate the marriage.
c) Voidable, because there is an irregularity in the
authority of the consular official to solemnize
marriages.
d) Valid, because such marriage is recognized as
valid in the place where it was celebrated.
23. Separation of property between spouses
during the marriage may take place only:
a) by agreement of the spouses.
b) If one of the spouses has given ground for legal
separation.
c) Upon order of the court.
d) If one spouse has abandoned the other.
24. The husband may impugn the legitimacy of his
child but not on the ground that:
a) the wife is suspected of infidelity.
b) the husband had a serious illness that prevented
him from engaging in sexual intercourse.
c) they were living apart.
d) he is physically incapable of sexual intercourse.
25. A marriage is void if:
a) solemnized with a marriage license issued
without complying with the required 10-day
posting.
b) solemnized by a minister whom the parties
believe to have the authority.
c) between parties both 23 years of age but
without parental advice.
d) none of the above
26. In legal separation, which is not correct?
a) The aggrieved spouse may file the action within
five (5) years from the time of the occurrence of
the cause.
b) No trial shall be held without the 6-month
cooling off period being observed.
c) The spouses will be entitled to live separately
upon the start of the trial.
d) The prosecuting attorney has to conduct his
own investigation.
27. A husband by chance discovered hidden
treasure on the paraphernal property of his wife.
Who owns the discovered treasure?
a) The half pertaining to the husband (finder)
belongs to the conjugal partnership.
b) The half pertaining to the wife (as owner)
belongs to the conjugal partnership.
c) One half shall belong to the husband as finder
and the other half shall belong to the wife as
owner of the property.
d) a and b
28. Which of the following marriages is void for
reasons of public policy?
a) Between brothers and sisters, whether of the
full or half blood.
b) Between step-parents and step children.
c) Between parents-in-law and children-in-law.
d) b and c
29. The following constitute the different
circumstances or case of fraud which will serves as
ground for the annulment of a marriage, except?
a) Non-disclosure of the previous conviction by
final judgment of the other party of a crime
involving moral turpitude.
b) Concealment of a sexually-transmissible
disease, regardless of its nature, existing at the
time of the marriage.
c) Concealment of drug addiction, habitual
alcoholism, homosexuality or lesbianism existing at
the time of marriage.
d) Concealment by the wife or the husband of the
fact of sexual relations prior to the marriage.
30. Which of the following is not a requisite for a
valid donation propter nuptias?
a) The donation must be made before the
celebration of the marriage.
b) The donation shall be automatically revoked in
case of non-celebration of the marriage.
c) The donation must be made in consideration of
the marriage.
d) The donation must be made in favor of one or
both of the future spouses.
31. Who are illegitimate children?
a) Children conceived or born outside a valid
marriage.
b) Children born under a valid marriage, which was
later declared void because of the psychological
incapacity of either or both of the spouses.
c) Children conceived and born outside a valid
marriage.
d) Children born under a valid marriage, but the
parents later obtained a legal separation.
32. An illegitimate child may use the surname of
his father when his filiation is established in any of
the following instances, except:
a) Filiation has been recognized by the father
through the record of birth appearing in the civil
register
b) Admission of filiation by the father in a public
document.
c) Private handwritten instrument is made by the
father acknowledging his filiation.
d) Affidavit by the mother stating the name of his
true father.
33. Under RA 8043, an adopter is required to be at
least ____ years old and ____ years older than the
child to be adopted at the time of the
application unless the adopter is the parent by
nature of the child.
a) 30 and 15
b) 27 and 16
c) 50 and 10
d) 18 and 15
34. Under RA 8043, a child qualified to be adopted
is any person below _____ years old.
a) 18
b) 21
c) 15
d) 16
35. Which of the following DOES NOT result in
permanent termination of parental authority?
a) Death of the parents.
b) Death of the child.
c) Emancipation of the child.
d) Conviction of the parents of a crime which
carries with it the penalty of civil interdiction.
36. The court, in an action filed for the purpose,
may suspend parental authority if the parent or
the person exercising parental authority commits
any of the following acts, except:
a) Treats the child with excessive harshness or
cruelty.
b) Gives the child corrupting orders, counsel or
example.
c) Compels the child to take up a course in college
against his/her will.
d) Subjects the child or allows him to be subjected
to acts of lasciviousness.
37. Which of the following statements is wrong?
a) The possessor in bad faith shall reimburse the
fruits received and those which the legitimate
possessor could have received.
b) The possessor in bad faith has right of
reimbursement for necessary expenses and those
for the production, gathering and preservation of
the fruits.
c) The possessor in bad faith is not entitled to a
refund of ornamental expenses.
d) The possessor in bad faith is entitled to a refund
of useful expenses.
38. Which phrase most accurately completes the
statement – The expenses incurred in
improvements for the luxury or mere pleasure
shall not be refunded to thew possessor in bad
faith:
a) but he may remove the objects for which such
expenses have been incurred, provided that the
thing suffers no injury thereby, and that the lawful
possessor does not prefer to retain them.
b) and he may not remove the objects for which
such expenses have been incurred.
c) and he may not remove the objects for which
such expenses have been incurred, unless he pays
the value they may have at the time he entered
into possession.
d) but he may remove the objects for which such
expenses have been incurred.
39. The following are the limitations on the right of
ownership imposed by the owner himself, except:
a) Will/Succession
b) Mortgage
c) Pledge
d) Lease
40. A plenary action for the recovery of the
possession of real estate, upon mere allegation
and proof of a better right thereto, and without
allegation of proof of title. This action can only be
brought after the expiration of one (1) year. What
action is being referred to?
a) Accion publiciana
b) Accion reinvindicatoria
c) Accion interdictal
d) Quieting of Title
41. Action to recover real property based on
ownership. Here, the object is the recovery of the
dominion over the property as owner. What action
is being referred to?
a) Accion publiciana
b) Accion reinvindicatoria
c) Accion interdictal
d) Quieting of Title
42. A summary action to recover physical or
material possession only and must be brought
within one (1) year from the time the cause of
action arises. What action is being referred to?
a) Accion publiciana
b) Accion reinvindicatoria
c) Accion interdictal
d) Quieting of Title
43. The following things are property of public
dominion, except:
a) ports and bridges constructed by the State.
b) vehicles and weapons of the Armed Forces of
the Philippines.
c) rivers.
d) lands reclaimed by the state from the sea.
44. Which of the following statements is wrong?
a) patrimonial property of the state, when no
longer intended for public use or for public service,
shall become property of public dominion.
b) all property of the State, which is not of public
dominion, is patrimonial property.
c) The property of provinces, cities and
municipalities is divided into property for public
use and patrimonial property.
d) Property is either of public dominion or of
private ownership.
45. The following cannot ask for the reduction of
inofficious donation, except:
a) Creditors of the deceased
b) Devisees or legatees
c) Compulsory heirs of the donor
d) The surviving spouse of the donee.
46. Donation is perfected from the moment ---
a) the donee accepts the donation.
b) the donor executes the deed of donation.
c) the donor knows of the donee’s acceptance
even if the latter has not received the copy of the
deed of donation.
d) the donee confirms that the donor has learned
the former’s acceptance.
47. The following are the elements of an
obligation, except:
a) Juridical/Legal Tie
b) Active subject
c) Passive subject
d) Consideration
48. It is a conduct that may consist of giving, doing,
or not doing something.
a) Obligation
b) Juridical necessity
c) Prestation
d) Contract
49. It is a juridical relation arising from lawful,
voluntary and unilateral  acts based on the
principle that no one should unjustly enrich
himself at the expense of another.
a) Quasi-contract
b) Quasi-delict
c) Cotract 55. The following are the requisites of fortuitous
event, except:
d) Delict
a) Cause is independent of the will of the debtor.
50. The following are the elements of quasi-
delict, except: b) The event is unforeseeable/unavoidable.

a) Act or omission c) Occurrence renders it absolutely impossible for

the debtor to fulfill his obligation in a normal
b) Fault/negligence
manner; impossibility must be absolute not partial,
c) Damage/injury otherwise not force majeure.

d) Pre-existing contract d) Debtor contributed to the aggravation of the

injury to the creditor.
51. A debtor is liable for damages in case of delay
if he is guilty of any of the following, except: 56. A debtor may still be held liable for loss or
damages even if it was caused by a fortuitous
a) default (mora) event in any of the following instances, except:
b) mistake a) The debtor is guilty of dolo, malice or bad faith,
has promised the same thing to two or more
c) negligence (culpa)
persons who do not have the same interest.
d) breach through contravention of the tenor
b) The debtor contributed to the loss.
thereof
c) The thing to be delivered is generic.
52. This term refers to a delay on the part of both
the debtor and creditor in reciprocal obligations. d) The creditor is guilty of fraud, negligence or
delay or if he contravened the tenor of the
a) Mora accipiendi
obligation.
b) Mora solvendi
57. Buko, Fermin and Toti bound themselves
c) Compensation morae solidarily to pay Ayee the amount of P 5,000.00.
Suppose Buko paid the obligation, what is his right
d) Solution indibiti as against his co-debtors?
53. The following are the requisites of mora a) Buko cas ask for reimbursement from Fermin
solvendi, except: and Toti.
a) Obligation pertains to the debtor and is b) Buko can sue Fermin and Toti for damages.
determinate, due, demandable, and liquidated.
c) Buko can sue for rescission.
b) Obligation was performed on its maturity date.
d) Buko can claim a refund from Ayee.
c) There is judicial or extrajudicial demand by the
creditor. 58. Buko, Fermin and Toti bound themselves
solidarily to pay Ayee the sum of P 10,000.00.
d) Failure of the debtor to comply with such When the obligation became due and
demand. demandable, Ayee sued Buko for the payment of
54. It is an international evasion of the faithful the P 10,000.00. Buko moved to dismiss on the
performance of the obligation. ground that there was failure to implead Fermin
and Toti who are indispensable parties. Will the
a) Negligence motion to dismiss prosper? Why?
b) Fraud a) Yes, because Fermin and Toti should have been
impleaded as their obligation is solidary.
c) Delay

d) Mistake
b) No, because the creditor may proceed against
any one of the solidary debtors or some or all of
them simultaneously.
c) No, because a motion to dismiss is a prohibited
pleading.
d) Yes, because Fermin and Toti should also pay
their share of the obligation.
59. Buko, Fermin and Toti are solidarily debtors of
Ayee. Twelve (12) years after the obligation
became due and demandable, Buko paid Ayee and
later on asked for reimbursement of Fermin’s and
Toti’s shares. Is Buko correct? Why?
a) No, because the obligation has already
prescribed.
b) Yes, because the obligation is solidary.
c) No, because in solidary obligation any one of the
solidary debtors can pay the entire debt.
d) Yes, because Fermin and Toti will be unduly
enriched at the expense of Buko.
60. Buko, Fermin and Toti are solidary debtors
under a loan obligation of P 300,000.00 which has
fallen due. The creditor has, however, condoned
Fermin’s entire share in the debt. Since Toti has
become insolvent, the creditor makes a demand
on Buko to pay the debt. How much, if any, may
Buko be compelled to pay?
a) P 200.000.00
b) P 300,000.00
c) P 100,000.00
d) P 150,000.00
61. Dina bought a car from Jai and delivered a
check in payment of the same. Has Dina paid the
obligation? Why?
a) No, not yet. The delivery of promissory notes
payable to order, or bills of exchange or other
mercantile documents shall produce the effect of
payment only when they have been cashed, or
when through the fault of the creditor they have
been impaired.
b) Yes, because a check is a valid legal tender of
payment.
c) It depends. If the check is a manager’s check or
cashier’s check it will produce the effect of
payment. If it’s an ordinary check, no payment.
d) Yes, because a check is as good as cash.
62. The following are the requisites of legal
compensation, except:
a) That each of the obligors is bound principally
and that he be the same time a principal creditor
of the other.
b) That both debts consist in a sum of money, or if
the things due are consumable, they be the same
kind, and also of the same quality if the latter has
been stated.
c) That the two (2) debts are not yet due.
d) That they be liquidated and demandable.
63. Which of the following statements is correct?
a) All contracts are perfected by mere consent.
b) All contracts are perfected by delivery of the
object.
c) All contracts are required to be in writing.
d) All contracts are required to have a valid
consideration.
64. It is a principle which holds that parties are
bound not only by what has been expressly
provided for in the contract but also to the natural
consequences that flow out of such agreement.
a) Obligatory force of contracts
b) Mutuality of contracts
c) Autonomy of contracts
d) Relativity of contracts
65. It is a principle which holds that contracts must
be binding to both parties and its validity and
effectivity can never be left to the will of one of
the parties.
a) Obligatory force of contracts
b) Mutuality of contracts
c) Autonomy of contracts
d) Relativity of contracts
66. It refers to the rule that a contract is binding
not only between parties but extends to the heirs,
successors in interest, and assignees of the
parties, provided that the contract involved
transmissible rights by their nature, or by
stipulation or by law.
a) Obligatory force of contracts
b) Mutuality of contracts
c) Autonomy of contracts
d) Relativity of contracts
67. It is rule which holds that the freedom of the
parties to contract includes the freedom to
stipulate, provided the stipulations are not
contrary to law, morals, good customs, public
order or public policy.
a) Obligatory force of contracts
b) Mutuality of contracts
c) Autonomy of contracts
d) Relativity of contracts
68. The following are the ways by which
innominate contracts are regulated, except:
a) By the stipulation of the parties.
b) By the general principles of quasi-contracts and
delicts
c) By the rules  governing the most analogous
nominate contracts.
d) By the customs of the place.
69. An offer becomes ineffective on any of the
following grounds, except:
a) Death, civil interdiction, insanity/insolvency of
either party before acceptance is conveyed.
b) Acceptance of the offer by the offeree.
c) Qualified/conditional acceptance of the offer,
which becomes counter-offer.
d) Subject matter becomes illegal/impossible
before acceptance is communicated.
70. Which of the following statements is correct?
a) Offers in interrelated contracts are perfected
upon consent.
b) Offers in interrelated contracts require a single
acceptance.
c) Business advertisements are definite offers that
require specific acceptance.
d) Advertisements for Bidders are only invitations
to make proposals and the advertiser is not bound
to accept the highest/lowest bidder, unless it
appears otherwise.
71. The following are solemn contracts (Contracts
which must appear in writing), except:
a) Donations of real estate or of movables if the
value exceeds P 5,000.00.
b) Stipulation to pay interest in loans.
c) Sale of land through an agent (authority must be
in writing).
d) Construction contract of a building.
72. The following are rescissible contracts, except:
a) Entered into by guardian whenever ward suffers
damage more than ¼ of value of property.
b) Agreed upon in representation of absentees, if
absentee suffers lesion by more than ¼ of value of
property.
c) Contracts where fraud is committed on creditor
(accion pauliana).
d) Contracts entered into by minors.
73. The following are the requisites before a
contract entered into in fraud of creditors may be
rescinded, except:
a) There must be credited existing prior to the
celebration of the contract.
b) There must be fraud, or at least, the intent to
commit fraud to the prejudice of the creditor
seeking rescission.
c) The creditor cannot in any legal manner collect
his credit (subsidiary character of rescission)
d) The object of the contract must be legally in the
possession of a 3rd person in good faith.
74. The following are the characteristics of a
voidable contract, except:
a) Effective until set aside.
b) May be assailed/attacked only in an action for d) unenforceable
that purpose.
80. When both parties to the contract are minors,
c) Can be confirmed or ratified. the contract is:

d) Can be assailed only by either party. a) voidable

75. The following are void contracts, except: b) rescissible

a) Pactum commissorium c) void

b) Pactum de non alienando d) unenforceable

c) Pactum leonina 81. When the consent of one of the parties was
vitiated, the contract is:
d) Pacto de retro
a) voidable
76. The borrower in a contract of loan or mutuum
must pay interest to the lender. b) rescissible

a) If there is an agreement in writing to the effect. c) void

b) As a matter of course. d) unenforceable

c) If the amount borrowed is very large. 82. An obligation which is based on equity and
natural law is known as:
d) If the lender so demands at the maturity date.
a) pure
77. The liability of the school, its administrators
and teachers, or the individual, entity or institution b) quasi-contract
engaged in child care over the minor child or
c) civil
damage caused by the acts or omissions of the
unemancipated minor while under their d) natural
supervision, instruction or custody shall be:
83. Consent was given by one in representation of
a) Joint and subsidiary another but without authority. The contract is:
b) Principal and solidary a) voidable
c) Principal and joint b) rescissible
d) Subsidiary and solidary. c) void
78. The creditor has the right to the fruits of the d) unenforceable
thing from the time:
84. Michael Fermin, without the authority of
a) the thing is delivered. Pascual Lacas, owner of a car, sold the same car in
the name of Mr. Lacas to Atty. Buko. The contract
b) the obligation to deliver the things arises.
between Atty. Buko and Mr. Lacas is ---
c) the contract is perfected.
a) void because of the absence of consent from
d) the fruits are delivered. the owner, Mr. Lacas.

79. If one of the parties to the contract is without b) valid because all of the essential requisites of a
juridical capacity, the contract is: contract are present.

a) voidable c) unenforceable because Michael Fermin had no

authority but he sold the car in the name of Mr.
b) rescissible
Lacas, the owner.
c) void
d) rescissible because the contract caused lesion to
Atty. Buko.
85. Which of the following contracts is void?
a) An oral sale of a parcel of land.
b) A sale of land by an agent in a public instrument
where his authority from the principal is oral.
c) A donation of a wrist watch worth P 4,500.00.
d) A relatively simulated contract.
86. Which of the following expresses a correct
principle of law? Choose the best answer.
a) Failure to disclose facts when there is a duty to
reveal them, does not constitute fraud.
b) Violence or intimidation does not render a
contract annullable if employed not by a
contracting party but by a third person.
c) A threat to enforce one’s claim through
competent authority, if the claim is legal or just,
does not vitiate consent.
d) Absolute simulation of a contract always results
in a void contract.
87. Aligada orally offered to sell his two-hectare
rice land to Balane for P 10Million. The offer was
orally accepted. By agreement, the land was to be
delivered (through execution of a notarized Deed
of Sale) and the price was to be paid exactly one-
month from their oral agreement. Which
statement is most accurate?
a) If Aligada refuses to deliver the land on the
agreed date despite payment by Balane, the latter
may not successfully sue Aligada because the
contract is oral.
b) If Aligada refused to deliver the land, Balane
may successfully sue for fulfillment of the
obligation even if he has not tendered payment of
the purchase price.
c) The contract between the parties is rescissible.
d) The contract between the parties is subject to
ratification by the parties.
88. Which of the following statements is wrong?
a) Creditors are protected in cases of contracts
intended to defraud them.
b) Contracts take effect only between the parties,
their assign and heirs, except in case where the
rights and obligations arising from the contract are
not transmissible by their nature, or by stipulation
or by provision of law.
c) If a contract should contain some stipulation in
favor of a third person, he may demand its
fulfillment provided he communicated his
acceptance to the obligor before its revocation.
d) In contracts creating real rights, third persons
who come into possession of the object of the
contract are not bound thereby.
89. Which phrase most accurately completes the
statement – Any third person who induces another
to violate his contract:
a) shall be liable for damages only if he is a party to
the same contract.
b) shall be liable for damages to the other
contracting party.
c) shall not be liable for damages to the other
contracting party.
d) shall not be liable for damages if the parties are
in pari delicto.
90. The requisites of succession are as
follows, except:
a) Death of decedent
b) Transmissible estate
c) Existence and capacity of successor, designated
by decedent or law
d) Payment of Taxes
91. The characteristics of succession are as
follows, except:
a) It is a legal contract.
b) Only property, rights and obligations to the
extent of the value of the inheritance are
transmitted.
c) The transmission takes place only at the time of
death.
d) The transmission takes place either by will or by
operation of law.
92. The following rights are extinguished by
death, except:
a) Legal support
b) Parental authority
c) Right to inherit
d) Agency
93. The attestation clause contains the
following, except:
a) the number of pages used;
b) that the testator signed or caused another to
sign the will and every page thereof in the
presence of the instrumental witnesses;
c) notary public;
d) the instrumental witnesses witnessed and
signed the will and all the pages thereof in the
presence of the testator and one another.
94. The following are the formalities required in
the execution of holographic will, except:
a) Entirely written;
b) Dated;
c) Signed by testator himself
d) Notarized by a notary public.
95. The following are the grounds for disallowance
of wills, except:
a) The formalities required by law have not been
complied with.
b) The testator was insane or mentally incapable of
making will.
c) The will was executed through force or under
duress, or influence of fear or threats.
d) The will contains an attestation clause.
96. It is the omission in the testator’s will of one,
some or all of the compulsory heirs in direct line,
whether living at the time of execution of the will
or born after the death of the testator. What
principle is being referred to?
a) reserva troncal
b) preterition
c) fideicommissary
d) disposicion captatoria
97. Any disposition made upon the condition that
the heir shall make some provision in his will in
favor of the testator or of any other person shall
be void. Here, both the condition and the
disposition are void. What principle is being
referred to?
a) reserva troncal
b) preterition
c) fideicommissary
d) disposicion captatoria
98. Which phrase most accurately completes the
statement – If at the time the contract of sale is
perfected, the thing which is the object of the
contract has been entirely lost:
a) the buyer bears the risk of loss.
b) the contract shall be without any effect.
c) the seller bears the risk of loss.
d) the buyer may withdraw from the contract.
99. A contract granting a privilege to a person, for
which he has paid a consideration, which gives him
the right to buy certain merchandise or specified
property, from another person, at anytime within
the agreed period, at a fixed price. What contract
is being referred to?
a) Option Contract
b) Contract to Sell
c) Contract of Sale
d) Lease
100. Which of the following contracts of sale is
void?
a) Sale of EGM’s car by KRP, EGM’s agent, whose
authority is not reduced into writing.
b) Sale of EGM’s piece of land by KRP, EGM’s
agent, whose authority is not reduced into writing.
c) Sale of EGM’s car by KRP, a person stranger to
EGM, without EGM’s consent or authority.
d) Sale of EGM’s piece of land by KRP, a person
stranger to EGM, without EGM’s consent or
authority.

I
a) Roberto was in Nikko Hotel when he bumped
into a friend who was then on her way to a
wedding reception being held in said hotel.
Roberto alleged that he was then invited by his
friend to join her at the wedding reception and
carried the basket full of fruits which she was
bringing to the affair. At the reception, the
wedding coordinator of the hotel noticed him and
asked him, allegedly in a loud voice, to leave as he
was not in the guest list. He retorted that he had
been invited to the affair by his friend, who
however denied doing so. Deeply embarrassed by
the incident, Roberto then sued the hotel for
damages under Articles 19 and 21 of the Civil
Code. Will Roberto’s action prosper? Explain. (5%)
b) Ricky donated P 1 Million to the unborn child of
his pregnant girlfriend, which she accepted. After
six (6) months of pregnancy, the fetus was born
and baptized as Angela. However, Angela died 20
hours after birth. Ricky sought to recover the P 1
Million. Is Ricky entitled to recover? Explain. (5%)
II
a) Liwayway Vinzons-Chato was then the
Commissioner of Internal Revenue while Fortune
Tobacco Corporation is an entity engaged in the
manufacture of different brands of cigarettes,
among which are "Champion," "Hope," and
"More" cigarettes.
Fortune filed a complaint against Vinzons-Chato to
recover damages for the alleged violation of its
constitutional rights arising from Vinzons-Chato’s
issuance of Revenue Memorandum Circular No.
37-934 (which re-classified Fortune cigarettes as
locally manufactured with foreign brands and
thereby imposed higher taxes), which the Supreme
Court later declared invalid.
Vinzons-Chato filed a Motion to Dismiss arguing
that she cannot be held liable for damages for acts
she performed while in the discharge of her duties
as BIR Commissioner. Is she correct? Explain. (5%)
b) The petitioner filed a petition for declaration of
nullity of marriage based allegedly on the
psychological incapacity of the respondent, but the
psychologist was not able to personally examine
the respondent and the psychological report was
based only on the narration of petitioner. Should
the annulment be granted? Explain. (5%)
III
a) Maria, wife of Pedro, withdrew P 5 Million from
their conjugal funds. With this money, she
constructed a building on a lot which she inherited
from her father. Is the building conjugal or
paraphernal? Reasons. (5%)
b) Cipriano and Lady Miros married each other.
Lady Miros then left for the US and there, she
obtained American citizenship. Cipriano later
learned all about this including the fact that Lady
Miros has divorced him in America and that she
had remarried there. He then filed a petition for
authority to remarry, invoking Par. 2, Art. 26 of the
Family Code. Is Cipriano capacitated to re-marry by
virtue of the divorce decree obtained by his
Filipino spouse who was later naturalized as an
American citizen? Explain. (5%)
IV
a) After they got married, Nikki discovered that
Christian was having an affair with another
woman. But Nikki decided to give it a try and lived
with him for two (2) years. After two (2) years,
Nikki filed an action for legal separation on the
ground of Christian’s sexual infidelity. Will the
action prosper? Explain. (5%)
b) Honorato filed a petition to adopt his minor
illegitimate child Stephanie, alleging that
Stephanie’s mother is Gemma Astorga Garcia; that
Stephanie has been using her mother’s middle
name and surname; and that he is now a widower
and qualified to be her adopting parent. He prayed
that Stephanie’s middle name be changed from
"Astorga" to "Garcia," which is her mother’s
surname and that her surname "Garcia" be
changed to "Catindig," which is his surname. This
the trial court denied. Was the trial court correct in
denying Hororato’s request for Stephanie’s use of
her mother’s surname as her middle name?
Explain. (5%)
V
a) Spouses Primo and Monina Lim, childless, were
entrusted with the custody of two (2) minor
children, the parents of whom were unknown.
Eager of having children of their own, the spouses
made it appear that they were the children’s
parents by naming them Michelle P. Lim and
Michael Jude Lim. Subsequently, Monina married
Angel Olario after Primo’s death.
She decided to adopt the children by availing the
amnesty given under R.A. 8552 to those individuals
who simulated the birth of a child. She filed
separate petitions for the adoption of Michelle,
then 25 years old and Michael, 18. Both Michelle
and Michael gave consent to the adoption.
The trial court dismissed the petition and ruled
that Monina should have filed the petition jointly
with her new husband. Monina, in a Motion for
Reconsideration argues that mere consent of her
husband would suffice and that joint adoption is
not needed, for the adoptees are already
emancipated.
Is the trial court correct in dismissing the petitions
for adoption? Explain. (5%)
b) Jambrich, an Austrian, fell in-love and lived
together with Descallar and bought their houses
and lots at Agro-Macro Subdivision. In the
Contracts to Sell, Jambrich and Descallar were
referred to as the buyers. When the Deed of
Absolute Sale was presented for registration
before the Register of Deeds, it was refused
because Jambrich was an alien and could not
acquire alienable lands of the public domain. After
Jambrich and Descallar separated, Jambrich
purchased an engine and some accessories for his
boat from Borromeo. To pay for his debt, he sold
his rights and interests in the Agro-Macro
properties to Borromeo.
Borromeo discovered that titles to the three (3)
lots have been transfereed in the name of
Descallar. Who is the rightful owner of the
properties? Explain. (5%)
VI
a) Siga-an granted a loan to Villanueva in the
amount of P 540, 000.00. Such agreement was not
reduced to writing. Siga-an demanded interest
which was paid by Villanueva in cash and checks.
The total amount Villanueva paid accumulated
to P 1, 200, 000.00. Upon advice of her lawyer,
Villanueva demanded for the return of the excess
amount of P 660, 000.00 which was ignored by
Siga-an.
1) Is the payment of interest valid? Explain. (3%)
2) Is solution indebiti applicable? Explain. (2%)
b) Eulalia was engaged in the business of buying
and selling large cattle. In order to secure the
financial capital, she advanced for her
employees (biyaheros). She required them to
surrender TCT of their properties and to execute
the corresponding Deeds of Sale in her favor.
Domeng Bandong was not required to post any
security but when Eulalia discovered that he
incurred shortage in cattle procurement operation,
he was required to execute a Deed of Sale over a
parcel of land in favor of Eulalia. She sold the
property to her grandneice Jocelyn who thereafter
instituted an action for ejectment against the
Spouses Bandong.
To assert their right, Spouses Bandong filed an
action for annulment of sale against Eulalia and
Jocelyn alleging that there was no sale intended
but only equitable mortgage for the purpose of
securing the shortage incurred by Domeng in the
amount of P 70, 000.00 while employed as
"biyahero" by Eulalia. Was the Deed of Sale
between Domeng and Eulalia a contract of sale or
an equitable mortgage? Explain. (5%)
VII
a) Natividad’s holographic will, which had only one
(1) substantial provision, as first written, named
Rosa as her sole heir. However, when Gregorio
presented it for probate, it already contained an
alteration, naming Gregorio, instead of Rosa, as
sole heir, but without authentication by
Natividad’s signature. Rosa opposes the probate
alleging such lack of proper authentication. She
claims that the unaltered form of the will should
be given effect. Whose claim should be granted?
Explain. (5%)
b) John Sagun and Maria Carla Camua, British
citizens at birth, acquired Philippine citizenship by
naturalization after their marriage. During their
marriage, the couple acquired substantial
landholdings in London and in Makati. Maria begot
three (3) children, Jorge, Luisito, and Joshur. In one
of their trips to London, the couple executed a
joint will appointing each other as their heirs and
providing that upon the death of the survivor
between them, the entire estate would go to Jorge
and Luisito only but the two (2) could not dispose
of nor divide the London estate as long as they
live. John and Maria died tragically in the London
subway terrorist attack in 2005. Jorge and Luisito
filed a petition for probate of their parents’ will
before a Makati Regional Trial Court. Joshur
vehemently objected because he was preterited.

1) Should the will be admitted to probate? Explain.

(2%)

2) Are the testamentary dispositions valid? Explain.

(2%)

3) Is the testamentary prohibition against the

division of the London estate valid? Explain. (1%)

VIII

a) Ricky and Arlene are married. They begot Franco

during their marriage. Franco had an illicit
relationship with Audrey and out of which, they
begot Arnel. Frnaco predeceased Ricky, Arlene and
Arnel. Before Ricky died, he executed a will which
when submitted to probate was opposed by Arnel
on the ground that he should be given the share of
his father, Franco. Is the opposition of Arnel
correct? Why? (5%)

b) How can RJP distribute his estate by will, if his

heirs are JCP, his wife; HBR and RVC, his parents;
and an illegitimate child, SGO?

IX

a) Does the right to request for the issuance of a

writ of possession over a foreclosed real property
prescribe in five (5) years? (5%)

b) A petition for declaration of nullity of a void

marriage can only be filed by either the husband or
the wife? Do you agree? Explain your answer. (5%)

a) A contract to sell is the same as a conditional

contract of sale. Do you agree? Explain your
answer. (5%)

b) A partner cannot demand the return of his

share (contribution) during the existence of a
partnership. Do you agree? Explain your answer.
(5%)

1. Bank A deposit money with Bank B which earns

interest that is subjected to the 20% final
withholding tax. At the same time, Bank A is
subjected to the 5% gross receipts tax on its
interest income on loan transactions to customers.
 TAXATION LAW (2012)
Which statement below INCORRECTLY describes
the transaction?
a) There is double taxation because two taxes –
income tax and gross receipts tax are imposed on
the interest incomes described above and double
taxation is prohibited under the 1987 Constitution
b) There is no double taxation because the first tax
is income tax, while the second tax is business tax;
c) There is no double taxation because the income
tax is on the interest income of Bank A on its
deposits with Bank B (passive income), while the
gross receipts tax is on the interest income
received by Bank A from loans to its debtor-
customers (active income);
d) Income tax on interest income of deposits of
Bank A is a direct tax, while GRT on interest
income on loan transaction is an tax.
2. Which of the following statement
is NOT correct?
a) In case of doubt, statutes levying taxes are
constructed strictly the government;
b) The construction of a statute made by his
predecessors is not binding upon the successor, if
thereafter he becomes satisfied that a different
construction should be given;
c) The reversal of a ruling shall not generally be
given retroactive application, if said reversal will be
prejudicial to the taxpayer;
d) A memorandum circular promulgated by the CIR
that imposes penalty for violations of certain rules
need not be published in a newspaper of general
circulation or official gazette because it has the
force and effect of law.
3. Which statement below expresses the lifeblood
theory?
a) The assessed taxes must be enforced by the
government.
b) The underlying basis of taxation is government
necessity, for without taxation, a government can
neither exist nor endure;
c) Taxation is an arbitrary method of exaction by
those who are in the seat of power;
d) The power of taxation is an inherent power of
the sovereign to impose burdens upon subjects
and objects within its jurisdiction for the purpose
of raising revenues.
4. Which statement is WRONG?
a) The power of taxation may be exercised by the
government, its political subdivisions, and public
utilities;
b) Generally, there is no limit on the amount of tax
that may be imposed;
c) The money contributed as tax becomes part of
the public funds;
d) The power of tax is subject to certain
constitutional limitations.
5. The Philippines adopted the semi-global tax
system, which means that:
a) All taxable incomes, regardless of the nature of
income, are added together to arrive at gross
income, and all allowable deductions are deducted
from the gross income to arrive at the taxable
income;
b) All incomes subject to final withholding taxes
liable to income tax under the schedular tax
system, while all ordinary income as well as
income not subject to final withholding tax under
the global tax system;
c) All taxable incomes are subject to final
withholding taxes under the schedular tax system;
d) All taxable incomes from sources within and
without the Philippines are liable to income tax.
6. Income from the performance of services is
treated as income from within the Philippines, if:
a) The payment of compensation for the service is
made in the Philippines;
b) The contract calling for the performance of
services is signed in the Philippines;
c) The service is actually performed in the
Philippines;
d) The recipient of service income is a resident of
the Philippines.
7. For income tax purposes, the source of the
service income is important for the taxpayer, who
is a:
a) Filipino citizen residing in Makati City;
b) Non-resident Filipino citizen working residing in
London, United Kingdom;
c) Japanese citizen who is married to a Filipino
citizen and residing in their family home located
Fort Bonifacio, Taguig City;
d) Domestic corporation.
8. Interest income of a domestic commercial bank
derived from a peso loan to a domestic
corporation in 2010 is :
a) Subject to the 30% income tax based on its net
taxable income;
b) Subject to the 20% final withholding tax;
c) Subject to the 7.5% final withholding tax;
d) Subject to 10% final withholding tax.
9. A resident corporation is one that is:
a) Organized under the laws of the Philippines that
does business in another country;
b) Organized under the laws of a foreign country
that sets up a regional headquarter in the
Philippines doing product promotion and
information dissemination;
c) Organized under the laws of the Philippines that
engages business in a special economic zone;
d) Organized under the laws of a foreign country
that engages in business in Makati City,
Pihlippines.
10. A dealer in securities sold unlisted shares of
stocks of a domestic corporation in 2010 and
derived a gain of P1 Million therefrom. The gain is:
a) Taxable at 30% regular corporate income tax
based on net taxable income;
b) Taxable at 5%/10% capital gains tax based on
net capital gain;
c) Taxable at ½ of 1% stock transaction tax based
on the gross selling price or fair market value,
whichever is higher
d) Exempt from income tax
11. An individual, who is a real estate dealer, sold a
residential lot in Quezon City at a gain of
P100,000.00 (selling price of P900,000.00 and cost
is P800,00.00). The sale is subject to income tax as
follows:
a) 6% capital gains tax on the gain;
b) 6% capital gains tax on the gross selling price of
fair market value, whichever is higher;
c) Ordinary income tax at the graduated rates of
5% to 32% of net taxable income;
d) 30% income tax on net taxable income.
12. During the audit conducted by the BIR official,
it was found that the rental income claimed by the
corporation was not subjected to expanded
withholding tax. Accordingly, the claimed rental
expense:
a) Is deductible from the gross income of the
corporation, despite non-withholding of income
tax by the corporation;
b) Is deductible from the gross income of the
corporation, provided that the 5% expanded
withholding tax is paid by the corporation during
the audit;
c) Is not deductible from gross income of the
corporation due to non-withholding of tax;
d) Is deductible, if it can be shown that the lessor
has correctly reported the rental income in his tax
return.
13. A resident Filipino citizen (not a dealer in
securities) sold shares of stocks of a domestic
corporation that are listed and traded in the
Philippine Stock Exchange.
a) The sale is exempt from income tax but subject
to the ½ of 1% stock transaction tax;
b) The sale is subject to income tax computed at
the graduated income tax rates of 5% to 32% on
net taxable income;
c) The sale is subject to the stock transaction tax
and income tax;
d) The sale is both exempt from the stock
transaction tax and income tax.
14. The appropriate method of accounting for a
contractor on his long-term construction contract
(i.e., it takes more than a year to finish) is:
a) Cash method;
b) Accrual method;
c) Installment sale method;
d) Percentage of completion method.
15. A general professional partnership (GPP) is
one:
a) That is registered as such with the Securities and
Exchange Commission and the Bureau of Internal
Revenue;
b) That is composed of individuals who exercise a
common profession;
c) That exclusively derives income from the
practice of the common profession;
d) That derives professional income and rental
income from property owned by it.
16. The interest expense of a domestic corporation
on a bank loan in connection with the purchase of
a production equipment:
a) Is not deductible from gross income of the
borrower-corporation;
b) Is deductible from the gross income of the
borrower-corporation during the year or it may be
capitalized as part of cost of the equipment;
c) Is deductible only for a period of five years from
date of purchase;
d) Is deductible only if the taxpayer uses the cash
method of accounting.
17. The "all events test" refers to:
a) A person who uses the cash method where all
sales have been fully paid by the buyers thereof;
b) A person who uses the installment sales
method, where the full amount of consideration is
paid in full by the buyer thereof within the year of
sale;
c) A person who uses the accrual method, whereby
an expense is deductible for the taxable year in
which all the events had occurred which
determined the fact of the liability and the amount
thereof could be determined with reasonable
accuracy;
d) A person who uses the completed method,
whereby the construction project has been
completed during the year the contract was
signed.
18. All the items below are excluded from gross
income, except:
a) Gain from sale of long-term bonds, debentures
and indebtedness;
b) Value of property received by a person as
donation or inheritance;
c) Retirement benefits received from the GSIS, SSS,
or accredited retirement plan;
d) Separation pay received by a retiring employee
under a voluntary retirement program of the
corporate employer.
19. Which statement is correct? A non-stock, non-
profit charitable association that sells its idle
agricultural property is:
a) Not required to file an income tax return nor
pay income tax on the transaction to the BIR,
provided the sales proceeds are invested in
another real estate during the year;
b) Required to pay the 6% capital gains tax on the
gross selling price of fair market value, whichever
is higher;
c) Mandated to pay the 30% regular corporate
income tax on the gain from sale;
d) Required to withhold the applicable expanded
withholding tax rate on the transaction and remit
the same to the BIR.
20. ABS Corporation is a PEZA-registered export
enterprise which manufactures cameras and sells
all its finished products abroad. Which statement
is NOT correct?
a) ABS Corporation is subject to the 5% final tax on
gross income earned, in lieu of all national and
local taxes;
b) ABS Corporation is exempt from the 30%
corporate income tax on net income, provided it
pays value added tax;
c) ABS Corporation is subject to the 30% corporate
income tax on net income;
d) ABS Corporation is exempt from all national and
local taxes, except real property tax.
21. In May 2010, Mr. And Mrs. Melencio Antonio
donated a house and lot with a fair market value
of P10 Million to their sob, Roberto, who is to be
married during the same year to Josefina Angeles.
Which statement below is INCORRECT?
a) There are four (4) donations made – two (2)
donations are made by Mr. Melencio Antonio to
Roberto and Josefina, and two (2) donations are
made by Mrs. Antonio;
b) The four (4) donations are made by the Spouses
Antonio to members of the family, hence, subject
to the graduated donor’s tax rates (2%-15%);
c) Two (2) donations are made by the spouses to
members of the family, while two (2) other
donations are made to strangers;
d) Two (2) donations made by the spouses to
Roberto are entitled to deduction from the gross
gift as donation proper nuptias.
22. While he was traveling with friends, Mr. Jose
Francisco, resident Filipino citizen, died on January
20, 2011 in a California Hospital, USA, leaving
personal and real properties with market values as
follows: House and Lot in Quezon City – P10
Million; Cash in bank in California – US$10,000.00;
Citibank in New York – US$5,000.00; Cash in BPI
Makati – P4 Million; Car in Quezon City – P1
Million; Shares of stocks of Apple Corporation, US
corporation listed in NY Stock Exchange – US$1 =
Php50. His gross estate for the Philippine estate
tax purposes shall be:
a) P13 Million;
b) P14 Million;
c) P15 Million;
d) P16 Million.
23. In 2006, Mr. Vicente Tagle, a retiree, bought
10,000 CDA shares that are unlisted in the local
stock exchange for P10 per share. In 2010, the said
shares had a book value per share of P60 per
share. In view of a car accident in 2010, Mr.
Vicente Tagle had to sell his CDA shares but he
could sell the same only for P50 per share. The sale
is subject to tax as follos:
a) 5%/10% capital gains tax on the capital gain
from sale of P40 per share (P50 selling price less
P10 cost);
b) 5%/10% capital gains tax on the capital gain of
P50 per share, arrived at by deducting the cost
(P10 per share) from the book value (P60 per
share);
c) 5%/10% capital gains tax on the capital gain
from sale of P40 per share (P50 selling price less
P10 cost) plus donor’s tax on the excess of the fair
market value of the shares over the consideration;
d) Graduated income tax rates of 5% to 32% on the
net taxable income from the sale of the shares.
24. On January 10, 2011, Maria Reyes, single-
mother, donated cash in the amount of P50,000.00
to her daughter Cristina, and on December 20,
2011, she donated another P50,000.00 to Cristina.
Which statement is correct?
a) Maria Reyes is subject to donor’s tax in 2011
because gross gift is P100,000.00;
b) Maria Reyes is exempt from donor’s tax in 2011
because gross gift is P100,000.00;
c) Maria Reyes is exempt from donor’s tax in 2011
only to the extent of P50,000.00;
d) Maria Reyes is exempt from donor’s tax in 2011
because the donee is minor.
25. Jose Ramos, single, died of a heart attack on
October 10, 2011, leaving a residential house and
lot with a market value of P1.8 Million and cash of
P100,000.00. Funeral expenses paid amounted to
P250,000.00
a) His estate will be exempt from estate tax
because the net estate is zero;
b) His estate will be subject to estate tax because
net estate is P1,650,000.00;
c) His estate will be subject to estate tax because
net estate is P1,700,00.00;
d) His estate will be subject to estate tax because
net estate is P800,000.00.
26. Sale of residential house and lot by an official
of a domestic corporation to another official in the
same corporation for a consideration of P2.5
Million in 2011 is:
a) Exempt from VAT because the gross sales do not
exceed P2.5 Million;
b) Exempt from VAT because the property sold is a
capital asset, regardless of the gross selling price;
c) Exempt from VAT because the seller is not a
person engaged in real estate business;
d) Taxable at 12% VAT output tax on the gross
selling price of P2.5 Million.
27. An importer of flowers from abroad in 2011:
a) Is liable for VAT, if it registers as a VAT person;
b) Is exempt from VAT, because the goods are
treated as agricultural products;
c) Is exempt from VAT, provided that his total
importation of flowers does not exceed P1.5
Million;
d) Is liable for VAT, despite the fact that it did not
register as a VAT person and its total annual sales
of flowers do not exceed P1.5 Million.
28. A VAT-registered contractor performed
services for his customer in 2010 and billed him
P11.2 Million, broken down as follows: P10 Million
– cost of services, plus P1.2 Million, 12% VAT. Of
the contract price of P10 Million, only P8 Million
plus VAT thereon was received from the customer
in 2010, and the balance of P4 Million plus VAT
was received by the contractor in 2011. How much
is the taxable gross receipts of the contractor for
2010, for VAT purposes?
a) P10 Million, the total cost of services performed
in 2010;
b) P8 Million, the amount received from the
customer in 2010;
c) P8 Million plus VAT received from the customer
in 2010;
d) P11.2 Million, the total cost of services
performed plus 12% VAT.
29. MBM Corporation is the owner-operator of
movie houses in Cavite. During the year 2010, it
received a total gross receipts of P20 Million from
the operation of movies. It did not register as a
VAT person. Which statement below is correct?
a) MBM Corporation is exempt from the 12% VAT,
but liable for the 20% amusement tax on
admissions under the Local Government Code;
b) MBM Corporation is both liable for the 12% VAT
and 20% amusement tax on admissions;
c) MBM Corporation is both exempt from the 12%
VAT and 20% amusement tax on admissions;
d) MBM Corporation is liable for the 12% VAT, but
exempt from the 20% amusement tax on
admissions.
30. A pawnshop shall now be treated, for business
tax purposes:
a) As a lending investor liable to the 12% VAT on
its gross receipts from interest income and from
gross selling price from sale of unclaimed
properties;
b) Not as a lending investor, but liable to the 5%
gross receipts tax imposed on a non-bank financial
intermediary under Title VI (Other Percentage
Taxes);
c) As exempt from 12% VAT and 5% gross receipts
tax;
d) As liable to the 12% VAT and 5% gross receipts
tax.
31. Under the VAT system, there is no cascading
because the tax itself is not again being taxed.
However, in determining the tax base on sale of
taxable goods under the VAT system:
a) The professional tax paid by the professional is
included in gross receipts;
b) The other percentage tax (e.g., gross receipts
tax) paid by the taxpayer is included in gross selling
price;
c) The excise tax paid by the taxpayer before
withdrawal of the goods from the place of
production or from customs custody is included in
the gross selling price;
d) The documentary stamp tax paid by the
taxpayer is included in the gross selling price or
gross receipts.
32. Except for one transaction, the rest are exempt
from value added tax. Which one is VAT taxable?
a) Sales of chicken by a restaurant owner who did
not register as a VAT person and whose gross
annual sales is P1.2 Million;
b) Sales of copra by a copra dealer to a coconut oil
manufacturer who did not register as a VAT person
and whose gross annual sales is P5 Million;
c) Gross receipts of CPA during the year amounted
to P1 Million; the CPA registered as a VAT person
in January 2011, before practicing his profession;
d) Sales of a book store during the year amounted
to P10 Million; it did not register as a VAT person
with the BIR.
33. A lessor or real property is exempt from value
added tax in one of the transactions below. Which
one is it?
a) Lessor leases commercial stalls located in the
Greenhills Commercial Center to VAT-registered
sellers of cell phones; lessor’s gross rental during
the year amounted to P12 Million;
b) Lessor leases residential apartment units to
individual tenants for P10,000.00 per month per
unit; his gross rental income during the year
amounted to P2 Million;
c) Lessor leases commercial stalls at P10,000.00
per stall per month and residential units at
P15,000.00 per unit per month; his gross rental
income during the year amounted to P3 Million;
d) Lessor leases two (2) residential houses and lots
at P50,000.00 per month per unit, but he
registered as a VAT person.
34. IBP Bank extended loans to debtors during the
year, with real properties of the debtors being
used as collateral to secure the loans. When the
debtors failed to pay the unpaid principal and
interests after several demand letters, the bank
foreclosed the same and entered into contracts of
lease with tenants. The bank is subject to the tax
as follows:
a) 12% VAT on the rental income, but exempt from
the 7% gross receipts tax;
b) 7% gross receipts tax on the rental income, but
exempt from VAT;
c) Liable to both the 12% VAT and 7% gross
receipts tax;
d) Exempt from both the 12% VAT and 7% gross
receipts tax.
35. Which transaction below is subject to VAT?
a) Sale of vegetables by a farmer in Baguio City to a
vegetable dealer;
b) Sale of vegetables by a vegetable dealer in
Baguio City to another vegetable dealer in Quezon
City;
c) Sale of vegetables by the QC vegetable dealer to
a restaurant in Manila;
d) Sale of vegetables by the restaurant operator to
its customers.
36. Which importation in 2011 is subject to VAT?
a) Importation of fuels by a person engaged in
international shipping worth P20 Million;
b) Importation of raw, unprocessed, refrigerated
Kobe beef from Japan by a beef dealer for sale to
hotels in Makati City with a fair market value of
P10 Million;
c) Importation of wines by a wine dealer with a fair
market value of P2 million for sale to hotels in
Makati City;
d) Importation of books worth P5 Million and
school supplies worth P1.2 million.
37. Input tax is available to a VAT-registered buyer,
provided that:
a) The seller is a VAT-registered person;
b) The seller issues a VAT invoice or official receipt,
which separately indicates the VAT component;
c) The goods or service is subject to or exempt
from VAT, but the sale is covered by a VAT invoice
or receipt issued by VAT-registered person;
d) The name and TIN of the buyer is not stated or
shown in the VAT invoice or receipt
Which statement shown above is NOT correct?
38. Claim for tax credit or refund of excess input
tax is available only to:
a) A VAT-registered person whose sales are made
to embassies of foreign governments and United
Nations agencies located in the Philippines without
the BIR approval of the application for zero-rating;
b) Any person who has excess input tax arising
from local purchases of taxable goods and
services;
c) A VAT-registered person whose sales are made
to clients in the Philippines;
d) A VAT-registered person whose sales are made
to customers outside the Philippines and who
issued VAT invoices or receipts with the words
"ZERO RATED SALES" imprinted on the sales
invoices or receipts.
39. A hotel operator that is a VAT-registered
person and who leases luxury vehicles to its hotel
customers is:
a) Subject to the 3% common carriers tax and 12%
VAT;
b) Subject to the 3% common carriers tax only;
c) Subject to the 12% VAT only;
d) Exempt from both the 3% common carriers tax
and 12% VAT.
40. Which statement is correct? A bar review
center owned and operated by lawyers is:
a) Exempt from VAT, regardless of its gross
receipts during the year because it is an
educational center;
b) Exempt from VAT, provided that its annual gross
receipts do not exceed P1.5 Million in 2011;
c) Subject to VAT, regardless of its gross receipts
during the year;
d) Subject to VAT, if it is duly accredited by TESDA.
41. For 2012, input tax is not available as a credit
against the output tax of the buyer of taxable
goods or services during the quarter, if:
a) The VAT invoice or receipt of the seller is
registered with the BIR;
b) The VAT invoice or receipt of the seller does not
separately indicate the gross selling price or gross
receipts and the VAT component therein;
c) The VAT invoice or receipt is issued in the name
of the VAT-registered buyer and his TIN is shown in
said invoice or receipt;
d) The VAT invoice or receipt issued by the seller
shows the Taxpayer Identification Number plus the
word "VAT" or "VAT registered person".
42. The public market vendor below, who is not a
VAT-registered person is liable to VAT in 2010, if:
a) She sells raw chicken and meats and her gross
sales during the year is P2 Million;
b) She sells vegetables and fruits in her stall and
her gross sales during the year is P1 Million;
c) She sells canned goods, processed coconut oils,
and cut flowers in her stall and her gross sales
during the year is P2.5 Million;
d) She sells live fish, shrimps, and crabs and her
gross sales during the year is P5 Million.
43. Which statement is FALSE under the VAT law?
a) A VAT-registered person will be subject to VAT
for his taxable transactions, regardless of his gross
sales or receipts;
b) A person engaged in trade or business selling
taxable goods or services must register as a VAT
person, when his gross sales or receipts for the
year 2011 exceed P1.5 Million;
c) A person who issued a VAT-registered invoice or
receipt for a VAT-exempt transaction is liable to
the 12% VAT as a penalty for the wrong issuance
thereof;
d) Once a doctor of medicine exercises his
profession during the year, he needs to register as
a VAT person and to issue VAT receipts for
professional fees received.
44. The Commissioner of Internal Revenue
may NOT inquire into the bank deposits of a
taxpayer, except:
a) When the taxpayer files a fraudulent return;
b) When the taxpayer offers to compromise the
assessed tax based on erroneous assessment;
c) When the taxpayer offers to compromise the
assessed tax based on financial incapacity to pay
and he authorizes the Commissioner in writing to
look into his bank records;
d) When the taxpayer did not file his income tax
return for the year.
45. The Commissioner of Internal Revenue issued a
BIR ruling to the effect that the transaction is liable
to income tax and value added tax. Upon receipt
of the ruling, a taxpayer does not agree thereto.
What is his proper remedy?
a) File a petition for review with the Court of Tax
Appeals within thirty (30) days from receipt
thereof;
b) File a motion for reconsideration with the
Commissioner of Internal Revenue;
c) File an appeal to the Secretary of Finance within
thirty (30) days from receipt thereof;
d) File an appeal to the Secretary of Justice within
thirty (30) days from receipt thereof.
46. On April 15, 2011, the Commissioner of
Internal Revenue mailed by registered mail the
final assessment notice and the demand letter
covering the calendar year 2007 with the QC Post
Office. Which statement is correct?
a) The assessment notice is void because it was
mailed beyond the prescriptive period;
b) The assessment notice is void because it was
not received by the taxpayer within the three-year
period from the date of filing of the tax return;
c) The assessment notice is void if the taxpayer can
show that the same was received only after one (1)
month from date of mailing;
d) The assessment notice is valid even if the
taxpayer received the same after the three-year
period from the date of filing of the tax return.
47. A preliminary Assessment Notice (PAN)
is NOT required to be issued by the BIR before
issuing a Final Assessment Notice (FAN) on one of
the following cases:
a) When a taxpayer does not pay the 2010
deficiency income tax liability on or before July 15
of the year;
b) When the finding for any deficiency tax is the
result of mathematical error in the computation of
the tax as appearing on the face of the return;
c) When a discrepancy has been determined
between the value added tax paid and the amount
due for the year;
d) When the amount of discrepancy shown in the
Letter Notice is not paid within thirty (30) days
from date of receipt.
48. When a protest against the deficiency income
tax assessment was denied by the BIR Regional
Director of Quezon City, the appeal to the Court of
Tax Appeals must be filed by a taxpayer:
a) If the amount of basic tax assessed is
P100,000.00 or more;
b) If the amount of basic tax assessed is
P300,000.00 or more;
c) If the amount of basic tax assessed is
P500,000.00 or more;
d) If the amount of basic tax assessed is P1 Million
or more;
49. The taxpayer received an assessment notice on
April 15, 2011 and filed its request for
reinvestigation against the assessment on April 30,
2011. Additional documentary evidence in support
of its protest was submitted by it on June 30, 2011.
If no denial of the protest was received by the
taxpayer, when is the last day for the filing of its
appeal to the CTA?
a) November 30, 2011;
b) December 30, 2011;
c) January 30, 2012;
d) February 28, 2012.
50. Using the same facts in the immediately
preceding number, but assuming that the final
decision on the disputed assessment was received
by the taxpayer on July 30, 2011, when is the last
day for filing of the appeal to the CTA?
a) August 30, 2011;
b) September 30, 2011;
c) December 30, 2011;
d) January 30, 2012.
51. Which court has jurisdiction to determine if the
warrant of distraint and levy issued by the BIR is
valid and to rule if the waiver of the Statute of
Limitations was validly effected?
a) City Courts;
b) Regional Trial Court;
c) Court of Tax Appeals;
d) Court of Appeals.
52. Which statement below on compromise of tax
liability is correct?
a) Compromise of a tax liability is available only at
the administrative level;
b) Compromise of a tax liability is available only
before trial at the CTA;
c) Compromise of a tax liability is available even
during appeal, provided that prior leave of court is
obtained;
d) Compromise of a tax liability is still available
even after the court decision has become final and
executory.
53. In case of full or partial denial of the written
claim for refund or excess input tax directly
attributable to zero-rated sales, or the failure on
the part of the Commissioner to act on the
application within 120 days from the date of
submission of complete documents, an appeal
must be filed with the CTA:
a) Within thirty (30) days after filing the
administrative claim with the BIR;
b) Within sixty (60) days after filing the
administrative claim with the BIR;
c) Within one hundred twenty (120) days after
filing the administrative claim with the BIR;
d) Within thirty (30) days from the receipt of the
decision denying the claim or after the expiration
of the 120-day period.
54. The submission of the required documents
within sixty (60) days from the filing of the protest
is available only where:
a) The taxpayer previously filed a Motion for
Reconsideration with the BIR official;
b) The taxpayer previously filed a request for
reconsideration with the BIR official;
c) The taxpayer previously filed a request for
reinvestigation with the BIR official;
d) The taxpayer previously filed an extension to file
a protest with the BIR official.
55. The prescriptive period for the collection of the
deficiency tax assessment will be tolled:
a) If the taxpayer files a request for
reconsideration with the Asst. Commissioner;
b) If the taxpayer files a request for reinvestigation
that is approved by the Commissioner of Internal
Revenue;
c) If the taxpayer changes his address in the
Philippines that is communicated to the BIR
official;
d) If a warrant of levy is served upon the
taxpayer’s real property in Manila.
56. Which statement is correct? The collection of a
deficiency tax assessment by distraint and levy:
a) May be repeated, if necessary, until the full
amount due, including all expenses, is collected;
b) Must be done successively, first by distraint and
then by levy;
c) Automatically covers the bank deposits of a
delinquent taxpayer;
d) May be done only once during the taxable year.
57. The prescriptive period to file a criminal action
is:
a) Ten (10) years from the date of discovery of the
commission of fraud or non-filing of tax return;
b) Five (5) years from the date of issuance of the
final assessment notice;
c) Three (3) years from the filing of the annual tax
return;
d) Five (5) years from the commission of the
violation of the law, and if the same be not known
at the time, from the discovery thereof and the
institution of judicial proceedings for its
investigation and punishment.
58. The accused’s mere reliance on the
representations made by his accountant, with
deliberate refusal or avoidance to verify the
contents of his tax return and to inquire on its
authenticity constitutes:
a) Simple negligence;
b) Gross negligence;
c) Willful blindness;
d) Excusable negligence.
59. The acquittal of the accused in the criminal
action for the failure to file income tax return and
failure to supply correct information will have the
following consequence:
a) The CTA will automatically exempt the accused
from any civil liability;
b) The CTA will still hold the taxpayer liable for
deficiency income tax liability in all cases, since
preponderance of evidence is merely required for
tax cases;
c) The CTA will impose civil or tax liability only if
there was a final assessment notice issued by the
BIR against the accused in accordance with the
prescribed procedures for issuing assessments,
which was presented during the trial;
d) The CTA will impose civil or tax liability,
provided that a computation of the tax liability is
presented during the trial.
60. X Corporation had excess income tax payment
for the year 2008, which it chose to carry over in
2009. In filing its 2009 corporate income tax
return, it signified its intention (by checking the
small box "refund" at the bottom of the return) to
get a refund of the overpaid amount in 2008. Can
the refund be allowed or not, and if disallowed,
does X Corporation lose the claimed amount?
a) X Corporation may not get the refund because
the decision to carry over in 2008 was irrevocable
for that year, and it may not change that decision
in succeeding years;
b) X Corporation may not get the refund in 2009,
but the amount being claimed as refund may be
utilized in succeeding years until fully exhausted
because there is no prescriptive period for carry
over of excess income tax payments;
c) X Corporation may get the refund, provided that
it will no longer carry over such amount or utilize
the same against its income tax liability in the
future;
d) X Corporation may file instead a claim of tax
credit, in lieu of refund.
61. Which statement is correct?
a) Legislative acts passed by the municipal council
in the exercise of its lawmaking authority are
denominated as resolutions and ordinances;
b) Legislative acts passed by the municipal council
in the exercise of its lawmaking authority are
denominated as resolutions;
c) Legislative acts passed by the municipal council
in the exercise of its lawmaking authority are
denominated as ordinances;
d) Both ordinances and resolutions are solemn and
formal acts.
62. Which of the following statements is NOT a
test of a valid ordinance?
a) It must not contravene the Constitution or any
statute;
b) It must not be unfair or oppressive;
c) It must not be partial or discriminatory;
d) It may prohibit or regulate trade.
63. Taxing power of local government units
shall NOT extend to the following taxes, except
one:
a) Income tax on banks and other financial
institutions;
b) Taxes of any kind on the national government,
its agencies and instrumentalities, and local
government units;
c) Taxes on agricultural and aquatic products when
sold by the marginal farmers or fishermen;
d) Excise taxes on articles enumerated under the
National Internal Revenue Code.
64. Which statement on prescriptive periods is
true?
a) The prescriptive periods to assess taxes in the
National Internal Revenue Code and the Local
Government Code are the same;
b) Local taxes shall be assessed within five (5)
years from the date they became due;
c) Action for the collection of local taxes may be
instituted after the expiration of the period to
assess and to collect the tax;
d) Local taxes may be assessed within ten (10)
years from discovery of the underpayment of tax
which does not constitute fraud.
65. The appraisal, assessment, levy and collection
of real property tax shall be guided by the
following principles. Which statement
does NOT belong here?
a) Real property shall be appraised at its current
and fair market value;
b) Real property shall be classified for assessment
purposes on the basis of its actual use;
c) Real property shall be assessed on the basis of a
uniform classification within each local political
subdivision;
d) The appraisal and assessment of real property
shall be based on audited financial statements of
the owner.
66. The Manila International Airport Authority
(MIAA) is exempt from real property tax. Which
statement below is NOT correct?
a) MIAA is not a government-owned or controlled
corporation because it is not organized as a stock
or non-stock corporation;
b) MIAA is a government instrumentality vested
with corporate powers and performing essential
public services;
c) MIAA is not a taxable entity because the real
property is owned by the Republic of the
Philippines and the beneficial use of such property
has not been granted to a private entity;
d) MIAA is a government-owned or controlled
corporation because it is required to meet the test
of economic viability.
67. For purposes of real property taxes, the tax
rates are applied on:
a) Zonal values;
b) Fair market value;
c) Assessed values;
d) Reproduction values.
68. One of the local government units below
does NOT have the power to impose real property
tax:
a) Bacoor, Cavite;
b) Davao City;
c) Tarlac Province;
d) Malabon, Metro Manila.
69. Where the real property tax assessment is
erroneous, the remedy of the property owner is:
a) To file a claim for refund in the Court of Tax
Appeals if he has paid the tax, within thirty (30)
days from date of payment;
b) To file an appeal with the Provincial Board of
Assessment Appeals within thirty (30) days from
receipt of the assessment;
c) To file an appeal with the Provincial Board of
Assessment Appeals within sixty (60) days from
receipt of the assessment;
d) To file an appeal with the Provincial Board of
Assessment Appeals within sixty (60) days from
receipt of the assessment and playing the assessed
tax under protest.
70. The City Government of Manila
may NOT impose:
a) Basic real property tax at 2% of the assessed
value of real property;
b) Additional levy on real property for the special
education fund at 1% of the assessed value of real
property;
c) Additional ad valorem tax on idle lands at a rate
not exceeding 5% of the assessed value;
d) Special levy on lands within its territory specially
benefited by public works projects or
improvements funded by it at 80% of the actual
cost of the projects or improvements.
71. Importation of goods is deemed terminated:
a) When the customs duties are paid, even if the
goods remain within the customs premises;
b) When the goods are released or withdrawn
from the customs house upon payment of the
customs duties or with legal permit to withdraw;
c) When the goods enter Philippines territory and
remain within the customs house within thirty (30)
days from date of entry;
d) When there is part payment of duties on the
imported goods located in the customs area.
72. A protest against an assessment issued by the
Collector of Customs for unpaid customs duties on
imported goods shall be filed with:
a) The Commissioner of Customs;
b) The Regional Trial Court;
c) The Court of Tax Appeals;
d) The Collector of Customs.
73. The dutiable value of an imported article
subject to an ad valorem rate of duty under
existing law shall be:
a) The home consumption value;
b) The total value;
c) The total landed cost;
d) The transaction value.
74. The imported articles shall in any case be
subject to the regular physical examination when:
a) The importer disagrees with the findings as
contained in the government surveyor’s report;
b) The number, weight and nature of packages
indicated in the customs entry declaration and
supporting documents differ from that in the
manifest;
c) The container is not leaking or damaged;
d) The shipment is covered by alert/hold orders
issued pursuant to an existing order.
75. Which cases are appealable to the CTA?
a) Decisions of the Secretary of Finance in cases
involving liability for customs duties, seizure,
detention or release of property affected;
b) Decisions of the Commissioner of Customs in
cases involving liability for customs duties, seizure,
detention or release of property affected;
c) Decisions of the Collector of Customs in cases
involving liability for customs duties, seizure,
detention or release of property affected;
d) Decisions of the BIR Commissioner in cases
involving liability for customs duties, seizure,
detention or release of property affected.
I complete in 2010 and 100% complete in 2011,
Anchor Banking Corporation, which was organized
in 2000 and existing under the laws of the
Philippines and owned by the Sy Family of Makati
City, set up in 2010 a branch office in Shanghai
City, China, to take advantage of the presence of
many Filipino workers in that area and its booming
economy. During the year, the bank ,management
decided not to include the P20 Million net income
of the Shanghai Branch in the annual Philippine
income tax return filed with the BIR, which showed
a net taxable income of P30 Million , because the
Shanghai Branch is treated as a foreign
corporation and is taxed only on income from
sources within the Philippines, and since the loan
and other business transactions were done in
Shanghai, these incomes are not taxable in the
Philippines.
a) Is the bank correct in excluding the net income
of its Shanghai Branch in the computation of its
annual corporate income tax for 2010? Explain
your answer. (5%)
b) Should the Shanghai Branch of Anchor Bank
remit profit to its Head Office in the Philippines in
2011, is the branch liable to the 15% branch profit
remittance tax imposed under Section 28 (A)(5) of
the 1997 Tax Code? Explain your answer (5%)
II
Foster Corporation (FC) is a Singapore-based
foreign corporation engaged in construction and
installation projects. In 2010, Global Oil
Corporation (GOC), a domestic corpoartion
engaged in the refinery of petroleum products,
awarded an anti-pollution project to Foster
Corporation, whereby FC shall design, supply
machinery and equipment, and install an anti-
pollution device for GOC’s refinery in the
Philippines, provided that the installation part of
the project may be sub-contracted to a local
construction company. Pursuant to the contract,
the design and supply contracts were done in
Singapore by FC, while the installation works were
sub-contracted by the FC with the Philippine
Construction Corporation (PCC), a domestic
corporation. The project with a total cost of P100
Million was completed in 2011 at the following
cost components: (design – P20Million; machinery
and equipment – P50 Million; and installation –P30
Million). Assume that the project was 40%
based on the certificates issued by the certificates
issued by the architects and engineers working on
the project. GOC paid FC as follows: P60 Million in
2010 and P40 Million in 2011, and FC paid PCC ion
foreign currency through a Philippine bank as
follows: P10 Million in 2010 and P20 Million in
2011.
a) Is FC liable to Philippines income tax, and if so,
how much revenue shall be reported by it in 2010
and in 2011? Explain your answer. (5%)
b) Is PCC, which adopted the percentage of
completion method of reporting income and
expenses, liable to value added tax in 2010 and in
2011. Explain your answer. (5%)
III
Mr. Jose Castillo is a resident Filipino Citizen. He
purchased a parcel of land in Makati City in 1970 at
a consideration of P1 Million. In 2011, the land ,
which remained undeveloped and idle, had a fair
market value of P20Million. Mr. Antonio Ayala,
another Filipino citizen, is very much interested in
the property and he offered to buy the same for
P20 Million. The Assessor of Makati City re-
assessed in 2011 the property at P10 Million.
a) When is Mr. Castillo liable for real property tax
on the land beginning 2011 or beginning 2012?
Explain your answer. (2%)
b) Is Mr. Castillo liable for income tax in 2011
based on the offer to buy by Mr. Ayala? Explain
your answer. (3%)
c) Should Mr. Castillo agree to sell the land to Mr.
Ayala in 2012 for P20 Million, subject to the
condition as stated in The Deed of Sale that the
buyer shall assume the capital gains tax thereon,
how musch is the income tax due on the
transaction and when must the tax return be filed
and the tax be paid by the taxpayer? Explain your
answer. (5%)
a) How much is the cost basis of the old car to Mr.
Aguirre? Explain your answer (2%)
b) What is the nature of the old car – capital asset
or ordinary asset? Explain your answer. (3%)
c) Is Mr. Aguirre liable to pay income tax on the
gain from the sale of his old car? Explain your
answer. (5%)
V
Spouses Pablo Gonzales and Teresita Gonzales,
both resident citizens acquire during their
marriage a residential house and lot located in
Makati City, which is being leased to a tenant for a
monthly rental of P100,000.00. Mr. Pablo Gonzales
is the President of PG Corporation and he receives
P50,000.00 salary per month. The spouses have
only one (1) minor child. In late June 2010, he was
immediately brought to the hospital because of
the heart attack and he was pronounced dead on
June 30, 2010.With no liabilities, the estate of the
late Pablo Gonzales was settled extra-judicially in
early 2011.
a) Is Mr. Pablo Gonzales required to file income tax
for 2010? If so, how much income must he declare
for the year? How much personal and additional
exemption is he entitled to? Explain your answer.
(5%)
b) Is Mrs. Teresita Gonzales required to file income
tax return fot 2010? If so, how much income must
she declare for the year? How much personal
exemption is she entitled to? Explain your answer.
(5%)

IV c) Is the Estate of the late Pablo Gonzales required

to file income tax return for 2010? If so, how much
Mr. Pedro Aguirre, a resident citizen, is working for
income must it declare for the year? How much
a large real estate development company in the
personal exemption is it entitled to? Explain your
country and in 2010, he was promoted to Vice-
answer. (5%)
President of the company. With more
responsibilities comes higher pay. In 2011, he VI
decided to buy a new car worth P2 Million and he
The BIR issude in 2010 a final assessment notice
traded-in his old car with a market value of
and demand letter against X Corporation covering
P800,000.00 and paid the difference of P1.2
deficiency income tas for the year 2008 in the
Million to the car company. The old car, which was
amount of P10 Million. X Corporation earlier
bought three (3) years ago by the father of Mr.
requested the advice of a lawyer on whether or
Pedro Aguirre at price of P700,000.00 was donated
not it should file a request for reconsideration or a
by him and registered in the name of his son. The
request for reinvestigation. The lawyer said it does
corresponding donor’s tax thereon was duly paid
not matter wheteher the protest files against the
by the father.
assessment is a request for reconsideration or a
request for reinvestigation, because it has same
consequences or implications.
a) What are the differences between a request for
reconsideration and a request for reinvestigation?
(5%)
b) Do you agree with the advice of the lawyer?
Explain your answer (5%)
VII
a) May the bank deposits – peso and foreign
currency of the an individual taxpayer be disclosed
by a commercial bank to the Commissioner of
Internal Revenue, in connection with a tax
investigation being conducted by revenue officials,
without violating the relevant bank secrecy laws?
Explain your answer. (5%)
b) In 2011, the Commissioner of the U.S. Internal
Revenue Service (IRS) requested in writing the
Commissioner of Internal Reveneu to get the
informatrion from a bank in the Philippines,
regarding the deposits of a U.S. Citizen residing in
the Philippines, who is under examiniation by the
officials of the US IRS, pursuant to the US-
Philippine Tax Treaty and othert existing laws.
Should the BIR Commissioner agree to obtain such
informarion from the bank and provide the same
to the IRS? Explain your answer. (5%)
c) Is the bank secrecy lawq in the Philippines
violated when the BIR issues a Warrant of
Garnishment directed against a domestic bank,
requiring it not to allow any withdrawal from any
existing bank deposit of he delinquent taxpayer
mentioned in the Warrant and to freeze the same
until the tax delinquency of said taxpayer is settled
with the BIR? Explain your answer. (5%)
VIII
In the examination conducted by the revenue
officials against the corporate taxpayer in 2010,
the BIR issued a final assessment notice and
demand letter which states: "It is requested that
the above deficiency tax be paid immediately upon
receipt hereof, inclusive of penalties incident to
delinquency. This is our final decision based on
investigation. If you disagree, you may appeal this
final decision within thirty (30) days from receipt
hereof, otherwise said deficiency tax assessment
shall become final, executory and demandable."
The assessment was immediately appealed by the
taxpayer to the Court of Tax Appeals, without filing
its protest against the assessment and without a
denial thereof by the BIR. If you were the judge,
would your deny the petition for review filed by
the taxpayer and consider the case as prematurely
filed? Explain your answer (5%)
IX
On April 16, 2012, the corporation filed its annual
corporate income tax return for 2011, showing an
overpayment of income tax of P1 Million. Which is
to be carried over to the succeeding year(s). On
May 15, 2012, the corporation sought advice from
you and said that it contemplates to file an
amended return for 2011, which shows that
instead of carry over of the execss income tax
payment, the same shall be considenred as a claim
for tax refund and the small box shown as "refund"
in the return will be filled up. Withi a year, the
corporation will file the formal request for refund
for the excess payment.
a) Will you recommend to the corporation such a
course of action and justify that the amended
return is the latest official act of the corporation as
to how it may treat such overpayment of tax or
should you consider the option granted to
taxpayers as irrevocable, once previously exercised
by it? Explain your answer. (5%)
b) Should the petition for review filed with the CTA
on the basisof the amended tax return be denied
by the BIR and the CTA, could the corporationstill
carry over such excess payment of income tax in
the succeeding years, considering that there is no
precriptive period provided for in the income tax
law with respect to carry over of excess income tax
payments? Explain your answer. (5%)
X
Explain the following statements:
a) The acquittal of the taxpayer in a criminal action
under the Tax Code does not necessarily result in a
exeoneration of said taxpayer from his civil liability
to pay taxes. (3%)
b) Should the accused be found guilty beyond
reasonable doubt for violation of Section 255 of
the Tax Code for failure to file tax return or to to
spply correct information), the imposition of the
civil liability by the CTA should be automatic and
no assessment notice from the BIR is necessary?
(2%)
 d. Employees of government-
owned and controlled
corporations.

3. Work may be performed beyond eight (8)

hours a day provided that:

a. Employee is paid for overtime

work an additional compensation
wquivalent to his regular wage
plus at least 25% thereof;

b. Employee is paid for overtime

work an additional compensation
equivalent to his regular wage
plus at least 30% thereof;

LABOR LAW (2012) c. Employee is paid for overtime

1. The workers worked as cargadores at the
warehouse and ricemills of farm A for
several years. As cargadores, they loaded,
unloaded and pilled sacks of rice from the
warehouse to the cargo trucks for
delivery to different places. They were
paid by Farm A on a piece-rate basis. Are
the workers considered regular
employees?
a. Yes, because Farm A paid wages
directly to these workers without
the intervention of any third
party independent contractor;
b. Yes, their work is directly related,
necessary and vital to the
operations of the farm;
c. No, because Farm A did not have
the power to control the workers
with respect to the means and
methods by which the work is to
be accomplished;
d. A and B.
work an additional compensation
equivalent to his regular wage
plus at least 20% thereof;
d. None of the above.
4. May the employer and employee
stipulate that the latter’s regular or basic
salary already includes the overtime pay,
such that when the employee actually
works overtime he cannot claim overtime
pay?
a. Yes, provided there is a clear
written agreement knowingly
and freely entered into by the
employees;
b. Yes, provided the mathematical
result shows that the agreed
legal wage rate and the overtime
pay, computed separately, are
equal to or higher than the
separate amounts legally due;
c. No, the employer and employee
cannot stipulate includes the
overtime pay;

2. The following are excluded from the d. A and B.

coverage of Book III of the Labor Code of
the Philippines (Conditions of 5. The following are instances where an
employment) except: employer can require an employee to
work overtime, except:
a. Field personnel;
a. In case of actual or impending
b. Supervisors; emergencies caused by serious
accident, fire, flood, typhoon,
c. Managers;
earthquake, epidemic or other
 disaster or calamity to prevent
loss of life and property, or
imminent danger to public
safety;
b. When the country is at war or
when other national or local
emergency has been declared by
the national assembly or the
chief executive;
c. When there is urgent work to be
8.
performed on machines,
installations, or equipment or
some other cause of similar
nature;
d. Where the completion or
contribution of the work started
before the eight hour is
necessary to prevent serious
obstruction or prejudice to the
business or operations of the
employer.
6. Z owns and operates a carinderia. His
regular employees are his wife, his two
(2) children, the family maid, a cook, two
(2) waiters, a dishwasher and a janitor.
The family driver occasionally works for
him during store hours to make deliveries.
On April 09, the dishwasher did not report
for work. The employer did not give his
pay for that day. Is the employer correct?
a. No, because employees have a
right to receive their regular daily
wage during regular holidays;
b. Yes, because April 09 is not
regular holidays;
c. Yes, because of the principle of
"a fair day’s wage for a fair day’s
work";
d. Yes, because he employs less
than ten (10) employees.
7. For misconduct or improper behavior to
be just cause for dismissal, the following
9.
guidelines must be met, except:
a. It must be serious;
b. It must relate to the
performance of the employee’s
duties;
c. It should not be used as a
subterfuge for causes which are
improper, illegal or unjustified;
d. It must show that the employee
has become unfit to continue
working for the employer.
The Company lawyer sent a memo to the
employee informing him of the specific
charges against him and giving him an
opportunity to explain his side. In a
subsequent letter, the employee was
informed that, on the basis of the results
of the investigation conducted, his written
explanation, the written explanation of
other employees as well as the audit
report, the management has decided to
terminate his employment. The employee
contended that his termination was illegal
for lack of procedural due process. Is the
employee’s contention correct?
a. No, the employee’s written
explanation and written
explanation of the other
employees were sufficient basis
for the employer to terminate
his employment;
b. Yes, because the employer did
not abide by the two-notice rule;
c. Yes, because he was not properly
afforded the chance to explain
his side in a conference;
d. No, because the written notice of
the cause of dismissal afforded
him ample opportunity to be
heard and defend himself, and
the written notice of the decision
to terminate him which states
the reasons therefor, complies
with the two-notice rule.
The Supreme Court categorically declared
that separation pay shall be allowed as a
measure of social justice only in those
instances where the employee is validly
dismissed for cause other than:
 a. Serious Misconduct;
b. Gross and habitual neglect of
duties;
c. Willful disobedience to lawful
orders;
d. Fraud or willful breach of trust.
10. K is a legitimate contractor hired by G for
six (6) months. On the third month, G
remitted to K the salaries and wages of
the employees. However, K absconded
with the money leaving the employees
unpaid. The disgruntled employees
demanded from G the payment of their
salaries. Is G liable?
a. No, because G has already
remitted the employees’ salaries
to K, validly excusing G from
liablity;
b. Yes, because he is jointly and
solidarily liable for whatever
monetary claims the employees
may have against K;
c. Yes, because of the principle of
"a fair day’s wage for a fair day’s
work";
d. B and C.
11. Corporation X is owned by L’s family. L is
the President. M, L’s wife, occasionally
gives loans to employees of Corporation
X. It was customary that loan payment
were paid to M by directly deducting from
the employee’s monthly salary. Is this
practice of directly deducting payments of
debts from the employee’s wages
allowed?
a. Yes, because where the
employee is indebted to the
employer, it is sanctioned by the
law on compensation under
Article 1706 of the Civil Code;
b. Yes, because it has already
become customary such that no
express authorization is
required;
c. No, because an employee’s
payment of obligation to a third
person is deductible from the
employee’s wages if the
deduction is authorized in
writing;
d. No, because Article 116 of the
Labor Code absolutely prohibits
the withholding of wages and
kickbacks. Article 116 provides
for no exception.
12. Union X staged a strike in front of
Company B because of A CBA deadlock.
During the strike, Company B hired
replacement workers. Upon resuming
their employment, the strikers found that
Company B hired replacement workers in
their place. Is Company B obliged to
reinstate the returning workers?
a. No, because the strike caused
work stoppage;
b. No, because it is a valid exercise
of management prerogative;
c. Yes, because workers who go on
strike do not lose their
employment status;
d. Yes, because workers are
entitled to such retention every
time during a valid strike.
13. Which of the following is not a valid
reason for a strike?
a. There is a bargaining deadlock;
b. There is a prevailing intra-union
dispute;
c. The company engaged in unfair
labor practice;
d. Theirs is a flagrant violation of
CBA’s economic provisions.
14. Iya, 15 years old, signed up to model a
clothing brand. She worked from 9am to
4pm on weekdays and 1pm to 6pm on
Saturdays for two (2) weeks. She was
issued a child working permit under RA
9231. Which of the following statements
is the most accurate?
 a. Working permit for Iya’s a. A supervisor in a fast food chain;
employment is not required
b. A family driver;
because the job is not hazardous;
c. A laborer without any fixed
b. Her work period exceeds the
salary, but receving a
required working hours for
compensation depending upon
children aged 15 years old;
the result of his work;
c. To require a 15-year old to work
d. A contractual employee.
without obtaining the requisite
working permit is a form of child 18. Bugay, an employee with only six (6)
labor; months of service, was dismissed due to
redundancy. He is, under Art. 283 of the
d. Iya, who was engaged in a work
Labor Code, entitled to a separation pay
that is not child labor, is a
of:
working child.
a. One (1) month pay;
15. Under employee’s compensation, the so-
called "Theory of Increased Risks" is b. One (1) year pay, Art. 283 of the
relevant when: Labor Code being explicit that "a
fraction of at least six (6) months
a. There is a need to categorize a
shall be considered one ( 1)
disability as permanent and
whole year";
total;
c. Six (6) months pay;
b. It is not clear as to how an injury
was sustained; d. One (1) year and six (6) months
pay, as Art. 4 of the Labor Code
c. The ailment or sickness is not
mandates that "(a)ll doubts in
classified as an occupational
the implementation and
disease;
interpretation of this Code xxx
d. There is a prima facie finding shall be resolved in favor of
that the employee had willful labor".
intention to hurt himself.
19. The power to suspend or cancel a license
16. Which of the frollowing injuries/death is to recruit employees is vested on:
not compensable?
a. The Secretary of Labor and
a. Injuries sustained by a technician Employment;
while at a field trip initiated by
b. The POEAAdministrator;
the Union and sponsored by the
Company; c. A and B 'concurrently;
b. Injuries received by a jani tor at a d. Neither of them.
Union election meeting;
20. The State shall allow the deployment of
c. Death of a bank teller because of overseas Filipino workers only in
a bank robbery; countries where the rights of Filipino
migrant workers are protected. Which of
d. Death of a professor who was hit
the following is not a guarantee, on the
by a van on his way home from
part of the receiving country, for the
work.
protection of the rights of OFW's?
17. The provisions of the Labor Code on the
a. It has existing labor and social
Working Conditions and Rest Periods of
laws protecting the rights of
employees are inapplicable to the
migrant workers;
following employees, except :
 b. It promotes and facilitates re-
integration of migrants into the
national mainstream;
c. It is a signatory to and/or ratifier
of multilateral conventions,
declarations or resolutions
relating to the protection of
migrant workers;
d. It has concluded a bilateral
agreement or arrangement with
the government on the
protection of the rights of
overseas Filipino workers.
21. Which is not a procedural requirement for
the correction of wage distortion in an
unorganized establishment?
a. Both employer and employee
will attempt to correct the
distortion;
b. Settlement of the dispute
through National Conciliation
and Mediation Board (NCMB);
c. Settlement of the dispute
through voluntary arbitration in
case of failure to resolve dispute
through CBA dispute mechanism;
d. A and B.
22. In what situation is an employer
permitted to employ a minor?
a. 16-year old child actor as a cast
member in soap opera working 8
hours a day, 6 days a week;
b. A 17-year old in deep sea-fishing;
c. A 17 -year old construction
worker;
d. A 17-year old assistant cook in a
family restaurant.
23. The most important factor in determining
the existence of an employer-employee
relationship is the:
a. Power to control the method by
which employees are hired and
selected;
b. Power to control the manner by
which employees are transferred
from one job site to another;
c. Power to control the results
achieved by giving guidelines to
the employees;
d. Power to control the results to
be achieved and the employee's
method of achieving the task.
24. A neighbor's gardener comes to you and
asks for help because his employer
withheld his salary for two (2) months
amounting to P4,000.00. Where will you
advise him to file his complaint?
a. Labor Arbiter;
b. DOLE Regional Director;
c. Conciliator/Mediator;
d. MTC Judge.
25. What is the nature of the liabilities of the
local recruitment agency and its foreign
principal?
a. The local agency is jointly liable
with the foreign principal;
severance of relations between
the local agent and the foreign
principal dissolves the liability of
the local agent recruiter;
b. Local agency is solidarily liable
with the foreign principal;
severance of relations between
the local agent and the foreign
principal dissolves the liability of
the foreign principal. only;
c. Local agency is solidarily liable
with the foreign principal;
severance of relations between
the local agent and foreign
principal does not affect the
liability of the foreign principal;
d. Local agency is jointly liable with
the foreign principal; severance
of the relations between the
local agent and the foreign
principal does not affect the
liability of the local recruiter.
26. Which phrase is the most accurate to d. Union dues.
complete the statement - A private
29. Is the contractor a necessary party in a
employment agency is any person or
case where labor contracting is the main
entity engaged in the recruitment and
issue and labor-only contracting is found
placement of workers:
to exist?
a. for a fee, which is charged
a. Yes, the contractor is necessary
directly from the workers.
in the full determination of the
b. for a fee, which is charged case as he is the purported
directly from employers. employer of the worker;

c. for a fee, which is charged b. Yes, no full remedy can be

directly or indirectly from granted and executed without
workers, employers or both. impleading the purported
contractor;
d. for a fee, which is charged from
workers or employers, which c. No, the contractor becomes a
covers both local and overseas mere agent of the employer-
employment. principal in labor contracting;

27. Who has jurisdiction over a money claim d. No, the contractor has no
instituted by an overseas Filipino worker? standing in a labor contracting
case.
a. Labor Arbiter;
30. Who among the following is not entitled
b. National Labor Relations
to 13th month pay?
Commission;
a. Stephanie, a probationary
c. Labor Arbiter concurrently with
employee of a cooperative bank
the regular courts.;
who rendered six (6) months of
d. National Labor Relations service during the calendar year
Commission concurrently with before filing her resignation;
the regular courts.
b. Rafael, the secretary of a
28. Which of the following is not a valid wage Senator;
deduction?
c. Selina, a cook employed by and
a. Where the worker was insured who lives with an old maid and
with his consent by the who also tends the sari-sari store
employer, and the deduction is of the latter;
allowed to recompense the
d. Roger, a house gardener who is
employer for the amount paid by
required to report to work only
him as the premium on the
thrice a week.
insurance;
31. Which type of employee is entitled to a
b. When the wage is subject of
service incentive leave?
execution or attachment, but
only for debts incurred for food, a. managerial employees;
shelter, clothing and medical
b. field personnel;
attendance;
c. government workers;
c. Payment for lost or damaged
equipment provided the d. part-time workers.
deduction does not exceed 25°/o
of the employee's salary for a
week;
 32. A wage order may be reviewed on appeal d. No, it was not a strike; no, it was
by the National Wages and Productivity not a valid activity.
Commission under these grounds, except:
36. Which of the following is not considered
a. grave abuse of discretion; an employer by the terms of the Social
Security Act?
b. non-conformity with prescribed
procedure; a. A self-employed person;

c. questions of law; b. The government and any of its

political subdivisions, branches
d. gross under or over-valuation.
or instrumentalities, including
33. The following may file a Petition for corporations owned or
Certification Election, except: controlled by the government;

a. The employer; c. A natural person, domestic or

foreign, who carries on in the
b. The legitimate labor Philippines, any trade, business,
organization; industry, undertaking or activity
of any kind and uses the services
c. The Federation on behalf of the
of another person who is under
chapter;
his orders as regards the
d. The Workers' Association. employment;

34. The following are grounds to deny the d. A foreign corporation.

Petition for Certification Election, except:
37. Jennifer, a receptionist at Company X, is
a. The petitioning union is covered by the SSS. She was pregnant
illegitimate or improperly with her fourth child when she slipped in
registered; the bathroom of her home and had a
miscarriage. Meanwhile, Company X
b. Non-appearance for two neglected to remit the required
consecutive schedules before the contributions to the SSS. Jennifer claims
Med-Arbiter by petitioning maternity leave benefits and sickness
union; benefits. Which of these two may she
c. The inclusion of members claim?
outside the bargaining unit; a. None of them;
d. Filed within an existing election b. Either one of them;
bar.
c. Only maternity leave benefits;
35. In response to Company X's unfair labor
practices, a union officer instructed its d. Only sickness benefits.
members to stop working and walk out of
38. H files for a seven-day paternity leave for
the company premises. After three (3)
the purpose of lending support to his
hours, they voluntarily returned to work.
wife, W, who suffered a miscarriage
Was there a strike and was it a valid activity? through intentional abortion. W also filed
for maternity leave for five weeks. H and
a. Yes, it was a strike; yes, it was a W are legally married but the latter is with
valid activity; her parents, which is a few blocks away
b. Yes, it was a strike; no, it was not from H's house. Which of the following
a valid activity; statements is the most accurate?

c. No, it was not a strike; yes, it was

a valid activity;
 a. Paternity leave shall be denied tools or equipment directly or
because it does not cover intended to be related to the job
aborted babies; contracted.

b. Paternity leave shall be denied 42. What is not an element of legitimate

because W is with her parents; contracting?

c. Maternity leave shall be denied a. The contract calls for the

because it does not cover performance of a specific job,
aborted babies; work or service;

d. Maternity leave shall be denied b. It is stipulated that the

because grant of paternity leave performance of a specific job,
bars claim for maternity leave. work or service must be within a
definite predetermined period;
39. Which of the following is not a privilege of
a person with disability under the Magna c. The performance of specific job,
Carta for disabled persons? work or service has to be
completed either within or
a. At least 20%_ discount on
outside the premises of the
purchase of medicines in all
principal;
drugstores;
d. The principal has control over
b. Free transportation in public
the performance of a specific
railways;
job, work or service.
c. Educational assistance in public
43. Which is a characteristic of the learner?
and private schools through
scholarship grants; a. A person is hired as a trainee in
an industrial occupation;
d. A and C.
b. Hired in a highly technical
40. Which of the following is not a regular
industry;
holiday?
c. Three (3) months practical on-
a. New Year's Eve;
the-job training with theoretical
b. Eidil Fitr; instruction;

c. Father's Day; d. At least 14 years old.

d. lndepenaence Day. 44. What is not a prerequisite for a valid

apprenticeship agreement?
41. Which is a characteristic of a labor-only
contractor? a. Qualifications of an apprentice
are met;
a. Carries an independent business
different from the employer's; b. A duly executed and signed
apprenticeship agreement;
b. The principal's liability extends to
all rights, duties and liabilities c. The apprenticeship program is
under labor standards laws approved by the Secretary of
including the right to self- Labor;
organization;
d. Included in the list of
c. No employer-employee apprenticeable occupation of
relationship; TESDA.

d. Has sufficient substantial capital 45. Which is not a constitutional right of the
or investment in machinery, worker?
 a. The right to engage in peaceful
concerted activities;
b. The right to enjoy security of
tenure;
c. The right to return on
investment;
d. The right to receive a living
wage.
46. Employee-employer relationship exists
under the following, except :
a. Jean, a guest relations officer in a
nightclub and Joe, the nightclub
owner;
b. Atty. Sin' Cruz, who works part-
time as the resident in house
lawyer of X Corporation;
c. Paul, who works as registered
agent on commission basis in an
insurance company; ·
d. Jack and Jill, who work in X
Company, an unregistered
Association.
47. With respect to legitimate independent
contracting, an employer or one who
engages the services of a bona fide
independent contractor is -
a. An indirect employer, by
operation of law, of his
contractor's employees; he
becomes solidarily liable with the
contractor not only for unpaid
wages but also for all the
rightful! claims of the employees
under the Labor Code;
b. Treated as direct employer of his
contractor's employees in all
instances; he becomes
subsidiarily liable with the
contractor only in the event the
latter fails to pay the employees'
wages and for violation of labor
standard laws;
c. An indirect employer, by
operation of law, of his
contractor's employees; he
becomes solidarily liable with the
contractor only in the event the
latter fails to pay the employees'
wages and for violation of labor
standard laws;
d. Treated as direct employer of his
contractor's employees in all
instances; the principal becomes
solidarily liable with the
contractor not only for unpaid
wages but also for all the rightful
claims of the employees under
the Labor Code;
48. Kevin, an employee of House of Sports,
filed a complaint with the DOLE
requesting the investigation and
inspection of the said establishment for
labor law violations such as
underpayment of wages, non-payment of
13th month pay, non-payment of rest day
pay, overtime pay, holiday pay, and
service incentive leave pay. House of
Sports alleges that DOLE has no
jurisdiction over the employees' claims
where the aggregate amount of the
claims of each employee exceeds
P5,000.00, whether or not accompanied
with a claim for reinstatement. Is the
argument of House of Sports tenable?
a. Yes, Article 1 ~9 of the Labor
Code shall apply, and thus, the
Labor Arbiter has jurisdiction;
b. No, Article 128 (b) of the Labor
Code shall apply, and thus, the
DOLE Regional Director has
jurisdiction;
c. Yes, if the claim exceeds
P5,000.00, the DOLE Secretary
loses jurisdiction;
d. No, a voluntarily arbitrator has
jurisdiction because the matter
involved is a grievable issue.
49. Which of the following is not
compensable as hours worked?
a. Travel away from home;
b. Travel from home to work;
c. Working while on call;
 d. Travel that is all in a day's work.
50. It is defined as any union or association of
employees which exists in whole or in
part for the purpose of collective
bargaining with employers concerning
terms and conditions of employment.
a. Bargaining representative;
b. Labor organization;
c. Legitimate labor organization;
d. Federation.
51. This process refers to the submission of
the dispute to an impartial person for
determination on the basis of the
evidence and arguments of the parties.
The award is enforceable to the
disputants.
a. Arbitration;
b. Mediation;
c. Conciliation;
d. Reconciliation.
52. The Regional Director or his
representative may be divested of his
enforcement and visitorial powers under
the exception clause of Article 128 of the
Labor Code and, resultantly, jurisdiction
may be vested on the labor arbiter when
three (3) elements are present. Which of
the following is not one of the three (3)
elements?
a. Employer contests the findings of
the labor regulations officers and
raises issues thereon;
b. In order to resolve any issues
raised, there is a need to
examine evidentiary matters;
c. The issues raised should have
been verifiable during the
inspection;
d. The evidentiary matters are not
verifiable in the normal course of
inspection .
53. In what instances do labor arbiters have
jurisdiction over wage distortion cases?
a. When jurisdiction is invoked by
the employer and employees in
organized establishments;
b. When the case is unresolved by
Grievance Committee;
c. After the panel of voluntarily
arbitrators has made a decision
and the same is contested by
either party;
d. In unorganized establishments
when the same is not voluntarily
resolved by the parties before
the NCMM.
54. Is a termination dispute a grievable issue?
a. Yes, if the dismissal arose out of
the interpretation or
Implementation of the CBA;
b. No, once there's actual
termination, the issue is
cognizable by a Labor Arbiter;
c. Yes, it is in the interest of the
parties that the dispute be
resolved on the establishment
level;
d. No, a voluntary arbitrator must
take cognizance once
termination is made effective.
55. Peter worked for a Norwegian cargo
vessel. He worked as a deckhand, whose
primary duty was to assist in the
unloading and loading of cargo and
sometimes, assist in cleaning the ship. He
signed a five-year contract starting in
2009. In 2011, Peter's employers began
treating him differently. He was often
maltreated and his salary was not
released on time. These were frequently
protested to by Peter. Apparently
exasperated by his frequent
protestations, Peter's employer, a once
top official in China, suddenly told him
that his services would be terminated as
soon as the vessel arrived at the next
port, in Indonesia. Peter had enough
money to go back home, and immediately
upon arriving, he filed a money claim with
 the NLRC against his former employer's a. No arbitrary or excessive
local agent. Will Peter's case prosper? initiation fees shall be required
of the members of a legitimate
a. Yes, he is entitled to full
labor organization nor shall
reimbursement of his placement
arbitrary, excessive or oppressive
fee, with' interest at 12°/o per
fine and forfeiture be imposed;
annum, plus salary for the
unexpired portion of his b. The members shall be entitled to
employment contract or for full and detailed reports from
three (3) months for every year their officers and representatives
of the unexpired portion, of all financial transactions as
whichever is higher; provided for in the constitution
and bylaws of the organization;
b. Yes, he is entitled to full
reimbursement of his placement c. No labor organization shall
fee, with interest at 12% per knowingly admit as members or
annum, plus his salary for the continue in membership any
unexpired portion of his individual who belongs to a
employment contract or for subversive organization or who is
three (3) months for every year engaged directly or indirectly in
of the unexpired portion, any subversive activity;
whichever is less;
d. All of the above.
c. Yes, he is entitled to his salaries
58. Which phrase most accurately completes
for the unexpired portion of his
the statement - Members of
employment contract, plus full
cooperatives:
reimbursement of his placement
fee with interest at ·12°/o per a. can invoke the right to collective
annum; bargaining because it is a
fundamental right under the
d. Yes, he is entitled to his salaries
Constitution.
for three (3) months for every
year of the unexpired portion of b. can invoke the right to collective
his employment contract, plus bargaining because they are
full reimbursement of his permitted by law.
placement fee with interest at
12°/o per annum. c. cannot invoke the right to
collective bargaining because
56. The following are exempt from the rules each member is considered an
on minimum wages, except: owner.
a. Household or domestic helpers; . d. cannot invoke the right to
collective bargaining because
b. Homeworkers engaged in needle
they are expressly prohibited by
work;
law.
c. Workers' in duly registered
59. Which of the following is not true in
establishment in the cottage
unfair labor practices committed by an
industry;
employer?
d. Workers in the duly registered
a. Unfair labor practices cannot be
cooperative.
committed unless the union has
57. Which of the following is a right and/or been formed and registered;
condition of membership in a labor
organization?
 b. The commission of unfair labor
practice requires an employer-
employee relationship;
c. The offense of unfair labor
practice prescribes in one ( 1)
year;
d. The list of unfair labor practices
is exclusive.
60. Which of the following is correct with
respect to the extent of the application of
security of tenure?
a. It applies to managerial and to all
rank-and-file employees i f not
yet regular, but not to
management trainees;
b. It applies to managerial and to all
rank-and-file employees
including those under probation;
c. It applies to seasonal and project
employees, if they are hired
repeatedly;
d. It applies to all kinds of
employees except those
employed on a part-time basis.
61. Which of the following is not a procedural
due process requirement in the
termination of an employee for just
cause?
a. A written notice to the employee
specifying the grounds for his
termination;
b. A written notice to the DOLE at
least thirty (30) days before the
effectivity of termination;
c. A written notice to the employee
stating that upon consideration
of the circumstances, grounds
have been established to justify
his termination;
d. An opportunity for the employee
to present his evidence.
62. Under current jurisprudence, when the
dismissal is for a just or authorized cause
but due process is not observed, the
dismissal is said to be:
a. Void for denial of due process;
hence, the employee should be
reinstated;
b. Void for lack. of due process, the
employee should be paid full
backwages;
c. Valid, for the dismissal is with
just/authorized cause, but the
employer shall be liable for
nominal damages;
d. Valid, even if due process is not
observed, hence reinstatement
should not be ordered.
63. What is the quantum of evidence
required in labor cases?
a. The degree of proof which
produces the conclusion that the
employee is guilty of the offense
charged in an unprejudiced
mind;
b. Such amount of relevant
evidence which a reasonable
mind might accept as adequate
to justify a conclusion;
c. That degree of proof which is
greater in weight than the
opposing party's evidence;
d. Such evidence which must be
highly and substantially more
probable to be true than not
which convinces the trier of facts
of its factuality.
64. Which of the following statements is the
most accurate?
a. Domestic helpers with monthly
income of at least P3,000.00 are
compulsory members of the SSS
Law;
b. House helpers with monthly
income of at least P2,000.00 are
compulsory members of the SSS
Law;
c. Domestic helpers, 55 years of
age and who worked for at least
five (5) years, are covered by the
 Retirement Pay Law under
optional retirement, in the
absence of a CBA;
d. Domestic helpers in the personal
service of another are not
entitled to 13th month pay.
65. The decision of the Labor Arbiter in a
labor dispute case is:
a. immediately executory;
b. requires a writ of execution;
c. is immediately executory insofar
as the reinstatement of the
employee is concerned;
d. is stayed by the appeal of the
employer and posting of appeal
bond.
66. Which of the following is cognizable by
the Bureau of Labor Relations Med-
Arbiters?
a. Unfair labor practice for violation
of the CBA filed by the Workers
Union of Company X against
Company X;
b. Claim for back wages filed by
overseas contract worker Xena
against her Saudi Arabian
employer;
c. Contest for the position of MG
Union President brought by Ka
Joe, the losing candidate in the
recent union elections;
d. G contesting his removal as Chief
Executive Officer of Company Z.
67. J refused to comply with his deployment
assignment with K, a manning agency. K
filed a complaint against him for breach of
contract before the Philippine Overseas
Employment Administration (POEA). The
POEA penalized J with one (1) year
suspension from overseas deployment.
On appeal, the suspension was reduced
to six (6) months by the Secretary of
Labor. Is the remedy of appeal still
available to J and where should he file his
appeal?
a. Yes, he can file an appeal before
the Court of Appeals via a
Petition for Certiorari under rule
65;
b. Yes, he can file an appeal before
the Supreme Court via a Petition
for Certiorari under Rule 65;
c. Yes, he can file an appeal before
the Office of the President since
this is an administrative case;
d. Yes, he can file an appeal before
the National Labor Relations
Commission because there is an
employer-employee relationship.
68. R was employed as an instructor of Cruz
College located in Santiago City, lsabela.
Pursuant to a stipulation in R's
employment contract that the college has
the prerogative to assign R in any of its
branches or tie-up schools as the
necessity demands, the college proposed
to transfer him to llagan, a nearby town. R
filed a complaint alleging constructive
dismissal since his re-assignment will
entail an indirect reduction of his salary or
diminution of pay considering that
additional allowance will not be given to
cover for board and lodging expenses. R,
however, failed to prove that allowances
were given in similar instances in the past.
Is R's contention that he will suffer
constructive dismissal in view of the
alleged diminution of benefit correct?
a. Yes, such transfer should require
an automatic additional
allowance; the non-granting of
said allowance amounts to a
diminution of benefit;
b. No, R failed to present evidence
that the college committed to
provide the additional allowance
or that they were consistently
granting such benefit as to have
ripened into a practice which
cannot be peremptorily
withdrawn. Hence, there is no
violation of the rule against
diminution of pay;
 c. No, R's re-assignment did not
amount to constructive dismissal
because the college has the right
to transfer R based on
contractual stipulation;
d. B and C.
73. The appeal to the NLRC may be
entertained only on any of the following
grounds, except:
a. If there is prima facie evidence of
abuse of discretion on the part of
the Labor Arbiter;

69. At what particular point does a labor b. If the decision, order or award
organization acquire a legal personality? was secured through fraud or
coercion, including graft and
a. On the date the agreement to
corruption;
organize the un1on is signed by
the majority of all its members; c. If made purely on questions of
fact and law;
b. On the date the application for
registration is duly filed with the d. If serious errors in the findings of
Department of Labor.; facts are raised which would
cause grave or irreparable
c. On the date appearing on the
damage or injury to the
Certificate of Registration;
appellant
d. On the date. the Certificate of
74. The following are unfair labor practices of
Registration is actually issued.
employers, except:
70. How many years of service is the
a. Interrogating its employees in
underground mine employee required to
connection with their
have rendered in order to be entitled to
membership in the union or their
retirement benefits?
union activities which hampers
a. 5; their exercise of free choice;

b. 10; b. The grant of profit-sharing

benefits to managers,
c. 15; supervisors and all rank-and-file
employees not covered by the
d. 20.
CBA;
71. What is the prescriptive period of all
c. The cessation of a company's
criminal offenses penalized under the
operations shortly after the
Labor Code and the Rules Implementing
organization of a labor union and
the Labor Code?
the resumption of business
a. 3 years; barely a month after;

b. 4 years; d. Withdrawal by the employer of

holiday pay benefits stipulated
c. 5 years; under a supplementary
d. 10 years. agreement with the union.

72. What is the nature of employment of 75. According to Article 78 of the Labor
househelpers? Code., a handicapped worker is one
whose earning capacity is impaired by the
a. Seasonal; following, except :
b. Fixed-term; a. Age;
c. Regular; b. Physical Deficiency;
d. Probationary. c. Mental Deficiency;
 d. Psychological Deficiency.
I.
a. Distinguish Labor-Only contracting and
Job-Only contracting. (5%)
b. A deadlock in the negotiations for the
collective bargaining agreement between
College X and the Union prompted the
latter, after duly notifying the DOLE, to
declare a strike on November 5. The strike
totally paralyzed the operations of the
school. The Labor Secretary immediately
assumed jurisdiction over the dispute and
issued on the same day (November 5) a
return to work order. Upon receipt of the
order, the striking union officers and
members, on November 1, filed a Motion
for Reconsideration thereof questioning
the Labor Secretary's assumption of
jurisdiction, and continued with the strike
during the pendency of their motion. On
November 30, the Labor Secretary denied
the reconsideration of his return to work
order and further noting the strikers'
failure to immediately return to work,
terminated their employment. In assailing
the Labor Secretary's decision, the Union
contends that:
1. The Labor Secretary erroneously assumed
jurisdiction over the dispute since College
X could not be considered an industry
indispensable to national interest;
2. The strikers were under no obligation to
immediately comply with the November 5
return to work order because of their
then pending Motion for Reconsideration
of such order; and
3. The strike being legal, the employment of
the striking Union officers and members
cannot be terminated. Rule on these
contentions. Explain. (5%)
II.
In the Collective Bargaining Agreement (CBA)
between Dana Films and its rank-and-file Union
(which is directly affiliated with MMFF, a national
federation), a provision on the maintenance of
membership expressly provides that the Union can
demand the dismissal of any member employee
who commits acts of disloyalty to the Union as
provided for in its Constitution and By-Laws. The
same provision contains an undertaking by the
Union (MMFF) to hold Dana Films free from any
and all claims of any employee dismissed. During
the term of the CBA, MMFF discovered that certain
employee-members were initiating a move to
disaffiliate from MMFF and join a rival federation,
FAMAS. Forthwith, MMFF sought the dismissal of
its employee-members initiating the disaffiliation
movement from MMFF to FAMAS. Dana Films,
relying on the provision of the aforementioned
CBA, complied with MMFF's request and dismissed
the employees identified by MMFF as disloyal to it.
a. Will an action for illegal dismissal against
Dana Films and MMFF prosper or not?
Why? (5%))
b. What are the liabilities of Dana Films and
MMFF to the dismissed employees, i f
any? (5%)
III.
a. On August 01, 2008, Y, a corporation
engaged in the manufacture of textile
garments, entered into a collective
bargaining agreement with Union X in
representation of the rank and-file
employees of the corporation. The CBA
was effective up to June 20, 2011. The
contract had an automatic renewal clause
which would allow the agreement after its
expiry date to still apply until both parties
would have been able to execute a new
agreement. On May 10, 2011, Union X
submitted to Y's management their
proposals for the negotiation of a new
CBA. The next day, Y suspended
negotiations with Union X since Y had
entered into a merger with z,· a
corporation also engaged in the
manufacture of textile garments. Z
assumed all the assets and liabilities of Y.
Union X filed a complaint with the
Regional Trial Court for specific
performance and damages with a prayer
for preliminary injunction against Y and Z
and Z filed a Motion to Dismiss based on
 lack of jurisdiction. Rule on the Motion to (SUKI), a labor union duly registered with
Dismiss. (5%) DOLE. Subsequently, SUKI filed a petition
for Certification Election in order to be
b. X was one of more than one hundred
recognized as the exclusive bargaining
(100) employees who were terminated
agent of its members. Juicy Bar and Night
from employment due to the closure of
Club opposed the petition for Certification
Construction Corporation A. The Cruz
Election on the singular ground of
family owned Construction Company A.
absence of employer-employee
Upon the closure of Construction
relationship between the GROs on one
Company A, the Cruzes established
hand and the night club on the other
Construction Company B. Both
hand. May the GROs form SUKI as a labor
corporations had the same president, the
organization for purposes of collective
same board of directors, the same
bargaining? Explain briefly. (5%)
corporate officers, and all the same
subscribers. From the General b. A spinster school teacher took pity on one
Information Sheet filed by both of her pupils, a robust and precocious 12-
companies, it also showed that they year old boy whose poor family could
shared the same address and/or barely afford the cost of his schooling. She
premises. . Both companies also hired the lives alone at her house near the School
same accountant who prepared the books after her housemaid had left. In the
for both companies. afternoon, she lets the boy do various
chores as cleaning, fetching water and all
X and his co-employees amended their Complaint
kinds of errands after school hours. She
with the Labor Arbiter to hold Construction
gives him rice and P100.00 before the boy
Corporation 8 joint and severally liable with
goes home at 7:00 every night. The school
Construction Company A for illegal dismissal,
principal learned about it and charged her
backwages and separation pay. Construction
with violating the law which prohibits the
Company 8 interposed a Motion to Dismiss
employment of children below 15 years of
contending that they are juridical entities with
age. In her defense, the teacher stated
distinct and separate personalities from
that the work performed by her pupil is
Construction Corporation A and therefore, they
not hazardous. Is her defense tenable?
cannot be held jointly and severally liable for the
Why? (5%)
money claims of workers who are not their
employees. Rule on the Motion to Dismiss. Should V.
it be granted or denied? Why? (5%)
The weekly work schedule of a driver is as follows:
IV. Monday, Wednesday, Friday - drive the family car
to bring and fetch the children to and from school.
a. Juicy Bar and Night Club allowed by
Tuesday, Thursday, Saturday - drive the family van
tolerance fifty (50) Guest Relations
to fetch merchandise from suppliers and deliver
Officers (GROs) to work without
the same to a boutique in a mall owned by the
compensation in its establishment under
family.
the direct supervision of its Manager from
8:00 P.M. To 4:00 A.M. everyday, a. Is the driver a house helper? (5%)
including Sundays and holidays. The
b. The same driver claims that for work
GROs, however, were free to ply their
performed on Tuesday, Thursday and
trade elsewhere at anytime, but once
Saturday, he should be paid the minimum
they enter the premises of the night club,
daily wage of a driver of a commercial
they Were required to stay up to closing
establishment. Is the claim of the driver
time. The GROs earned their keep
valid? (5%)
exclusively from commissions for food
and drinks, and tips from generous VI.
customers. In time, the GROs formed the
Solar Ugnayan ng mga Kababaihang lnaapi
 a. For humanitarian reasons, a bank hired
several handicapped workers to count
and sort out currencies. The handicapped
workers knew that the contract was only
for a period of six-months and the same
period was provided in their employment
contracts. After six months, the bank
terminated their employment on the
ground that their contract has expired.
This prompted the workers to file with
the Labor Arbiter a complaint for illegal
dismissal. Will their action prosper? Why
or why not? (5%)
b. Mam-manu Aviation Company (Mam-
manu) is a new airline company recruiting
flight attendants for its domestic flights. It
requires that the applicant be single, not
more than 24 years old, attractive, and
familiar with three (3) dialects, viz:
llonggo, Cebuano and Kapampangan.
lngga, 23 years old, was accepted as she
possesses all the qualifications. After
passing the probationary period, lngga
disclosed that she got married when she
was 18 years old but the marriage was
already in the process of being annulled
on the ground that her husband was
afflicted with a sexually transmissible
disease at the time of the celebration of
their marriage. As a result of this
revelation, lngga was not hired as a
regular flight attendant. Consequently,
she filed a complaint against Mam-manu
alleging that the pre-employment
qualifications violate relevant provisions
of the Labor Code and are against public
policy. Is the contention of lngga tenable?
Why? (5%)
VII.
a. Inggu, an electronics technician, worked
within the premises of Pit Stop, an auto
accessory shop. He filed a Complaint for
illegal dismissal, overtime pay and other
benefits against Pit Stop. Pit Stop refused
to pay his claims on the ground that lnggu
was not its employee but was an
independent contractor . . It was common
practice for shops like Pit Stop to collect
the service fees from customers and pay
the same to the independent contractors
at the end of each week. The auto shop
explained that lnggu was like a partner
who worked within its premises, using
parts provided by the shop, but otherwise
lnggu was free to render service in the
other auto shops. On the other hand,
lnggu insisted that he still was entitled to
the benefits because he was loyal to Pit
Stop, it being a fact that he did not
perform work for anyone else. Is lnggu
correct? Explain briefly. (5%)
b. The modes of determining an exclusive
bargaining agreement are:
1. voluntary recognition
2. certification election
3. consent election
Explain briefly how they differ from one another.
(5%)
VIII.
ABC Tomato Corporation, owned and managed by
three (3) elderly brothers and two (2) sisters, has
been in business for 40 years. Due to serious
business losses and financial reverses during the
last five (5) years, they decided to close the
business.
a. As counsel for the corporation, what
steps will you take prior to its closure?
(3%)
b. Are the employees entitled to separation
pay? (2%)
If the reason for the closure is due to old age of
the brothers and sisters:
c. Is the closure allowed by law? (2%)
d. Are the employees entitled to separation
benefits? (3%)
IX.
Dennis was a taxi driver who was being paid on the
"boundary" system basis. He worked tirelessly for
Cabrera Transport Inc. for fourteen (14) years until
he was eligible for retirement. He was entitled to
retirement benefits. During the entire duration of
his service, Dennis was not given his 13th month
pay or his service incentive leave pay.
a. Is Dennis entitled to 13th month pay and
service leave incentive pay? Explain. (5%)
 b. Since he was not given his 13th month b. a body of rules and maxims in
pay and service incentive leave pay, accordance with which the
should Dennis be paid upon retirement, in powers of sovereignty are
addition to the salary equivalent to fifteen habitually exercised;
(15) days for every year of service, the
c. a body of rules and edicts
additional 2.5 days representing one-
emanating from the rulings of
twelfth (1/12) of the 13th month pay as
courts and written guidelines of
well as the five (5) days representing the
the executive and the legislature
service incentive leave for a total of 22.5
by which government is
days? Explain. (5%)
governed;
X.
d. a body of interpretations and
a. XYZ Manpower Services (XYZ) was sued by rules by which the three
its employees together with its client, ABC branches of government are
Polyester Manufacturing Company (ABC). judged for purposes of sovereign
ABC is one of the many clients of XYZ. compliance with good corporate
During the proceedings before the Labor governance.
Arbiter, XYZ was able to prove that it had
2. The three essential parts of a Constitution
substantial capital of Three Million Pesos.
are:
The Labor Arbiter ruled in favor of the
employees because it deemed XYZ as a a. the bill of rights, governmental
labor only contractor. XYZ was not able to organization and functions, and
prove that it had invested in tools, method of amendment;
equipment, etc. Is the Labor Arbiter's
ruling valid? Explain. (5%) b. the preamble, the bill of rights,
and provisions on checks and
b. Does the performance by a contractual balances;
employee, supplied by a legitimate
contractor, of activities directly related to c. the national territory, the
the main business of the principal make declaration of principles and
him a regular employee of the principal? state policies, and the transitory
Explain. (5%) provisions;

d. the executive department, the

legislative department and the
judiciary.

3. The constitutional provision on initiative

and referendum is not self-executory. This
is so because it requires:

a. an implementing resolution from

the COMELEC;
POLITICAL LAW (2012) b. an implementing resolution from
the Supreme Court;

c. an implementing legislation;
1. Constitution is defined by Cooley as:
d. an implementing resolution from
a. a body of statutory, the party-list representative of
administrative and political the House of Representatives.
provisions by which the three
branches of government are 4. In an amendment to the constitution by
defined; "initiative and referendum", the
"initiative" phase is meant that the people
 propose the amendments. There is a valid
proposal when a proposition has received
the approval of:
a. at least 3% of the persons of
majority age of each district, and
12% of the registered voters of
the region from proposal
emanates;
b. at least 3% of the registered
voters of each province and 12%
of the total number of registered
voters nationwide;
d. unlimited term for the President
for as long as elected by the
people in free and honest
elections.
7. Which of the following best exemplifies
how the system of checks and balances is
carried out:
a. the legislature passes a law that
prohibits the president from
commuting a judiciary imposed
sentence, as a check of the
president;

c. at least 3% of the registered b. the President pardons a convict

voters of each district and 12% of
the total number of registered
voters nationwide;
d. more than 3% of the 3% of the
registered voters of each district
but less than 12% of the total
number of registered voters
nationwide.
5. The Constitution declares that the
8.
Philippines is a republican state.
Republicanism means:
a. the form of government must be
presidential;
b. the representatives of the
government are elected by the
people;
c. sovereignty resides in the
elected representatives of the
government;
d. the form of government cannot
be changed by the people.
6. A chief characteristic of the presidential
form of government is:
a. concentration of power in the
judiciary thru the power of
expanded judicial review;
b. supremacy of the presidency
9.
compared to the totality of
powers of the legislative;
c. regular periodic election of the
President for a fixed term;
as a way to set aside or modify a
judgment of the judiciary;
c. the judiciary overturns a pardon
granted by the President as a
check on executions;
d. the President pardons an
accused after arraignment in the
interest of justice.
Which phrase best completes the
statement – The starting point of the
principle of separation of powers is the
assumption of the division of the
functions of government into three
distinct classes:
a. the bill of rights, state policies,
and social justice and human
rights;
b. the accountability of public
officers, the constitutional
commissions, and the national
economy and patrimony;
c. the self-executing provisions, the
non-self-executing provisions,
and the self-evident social justice
provisions;
d. the executive, the legislative, and
the judicial.
The Constitution provides that the
"separation of church and state shall be
inviolable." This is implemented most by
the constitutional principles embodied in:
a. the free exercise clause;
 b. the non-establishment clause;
c. the freedom of religious belief
clause;
d. the freedom of religion clause.
10. Which one of the following is a non-self-
executing provision of the Constitution:
a. no law shall be passed abridging
the freedom of speech;
b. no law shall be made respecting
an establishment of religion;
c. no person shall be held to
answer for a criminal offense
without due process of law;
d. the state shall encourage and
support researches and studies
on the arts and culture.
11. Basic Philippine law, in respect of the
modes of acquiring citizenship, follows
the rule(s) of:
a. jus soli and jus sanguinis;
b. naturalization and provides for
jus soli;
14. Identify which one is an invalid exercise of
c. jus sanguinis and provides for
naturalization;
d. none of the above.
12. Dual allegiance by citizen is:
a. inimical to the national interest
and is therefore proscribed by
law;
b. inimical to the national interest
and is therefore prescribed by
law;
c. inimical to the national interest
and therefore shall be dealt with
by law;
d. inimical to the national interest
and is therefore outside of
coverage of law.
13. Margarita was born in 1986 to a Filipino
mother and Swedish father. She has been
living and continues to live in the US for
the last 20 years and has also been
naturalized as a US citizen. She recently
reacquired Philippine citizenship under RA
9225, the Citizenship Retention and
Reacquisition Act of 2003. Can Margarita
vote in the next national elections?
a. Yes. Dual citizens who are not
residents may register under the
Overseas Absentee Voting Law.
b. Yes. Margarita is a Filipino citizen
and thus may enjoy the right to
suffrage like everyone else
without registering as an
overseas absentee voter.
c. No. Margarita fails the residency
requirement under Section 1,
Article V of the Constitution for
Filipinos.
d. No. Dual citizens upon
renunciation of their Filipino
citizenship and acquisition of
foreign citizenship, have
practically and legally abandoned
their domicile and severed their
legal ties to their homeland as a
consequence.
the legislative power:
a. legislation by local government
on purely local matters;
b. law granting an administrative
agency the power to define
policy and fix standards on price
control;
c. law authorizing the President, in
times of war or other national
emergency, for a limited period,
subject to prescribed
restrictions, to exercise powers
necessary and proper to carry
out a declared national policy;
d. law authorizing the President to
fix, within specific limits, tariff
rates, import and export quotas,
and other duties, within the
framework of the national
development program of the
government.
15. Which one of the following theories does
not support the valid delegation of
authority by the Congress to an
administrative agency:
a. an administrative agency may
"fill up the details" of a statute;
b. the legislature may leave to
another body the ascertainment
of facts necessary to bring the
law into actual operation;
c. an administrative agency has
equal expertise with the
legislature in crafting and
implementing laws;
d. contingent legislation.
19. No Senator or member of the House of
Representatives may personally appear as
counsel before:
a. any regional court;
b. any court of justice;
c. any inferior court;
d. any appellate court.
20. Which of the following can be changed by
an ordinary law enacted by Congress?
a. Commencement of the term of
office of Senators;
b. Date of regular election for
President and Vice Presidential;

16. The rule in Article V1, Section 5 (3) of the c. Authority to transfer
Constitution that "Each legislative district appropriation;
shall comprise, as far as practicable,
d. Regular election of the members
contiguous, compact and adjacent
of Congress.
territory" is a prohibition against:
21. Congress shall have the sole power to
a. re-apportionment;
declare the existence of a state of war by
b. commandeering of votes; vote of:

c. gerrymandering; a. three-fourths of both Houses in

joint session assembled, voting
d. re-districting. jointly;
17. Article V1, Section 5(3) of the Constitution b. two-thirds of both Houses in
requires that for a city to be entitled to joint session assembled, voting
have at least one representative, its jointly;
population shall be at least:
c. two-thirds of both Houses in
a. 250,000; separate session assembled,
voting jointly;
b. 150,000;
d. two-thirds of both Houses in
c. 100,000;
joint session, voting separately.
d. 175,000.
22. If by the end of any fiscal year, the
18. A Senator or Member of the House of Congress shall have failed to pass the
Representatives shall be privileged from general appropriations bill for the
arrest while Congress is in session for all ensuring fiscal year, the general
offenses punishable by imprisonment of appropriations law for the preceding fiscal
not more than: year shall be deemed:

a. life imprisonment; a. referred;

b. reclusion perpetua; b. unacted;

c. six years imprisonment; c. refilled;

d. four years imprisonment. d. re-enacted.

23. Provisions unrelated to an appropriation c. actually took part in the
bill are considered prohibited. These are deliberations on the issues in the
called: case and voted thereon;

a. interlopers; d. actually took part in the voting

thereon and took notes on the
b. riders;
actual deliberations.
c. outriggers;
28. When the Supreme Court sits in division,
d. add-ons. cases can be decided by as few as a
minimum of:
24. The requirement that "Every bill shall
embrace only one subject which shall be a. three votes;
expressed in the title thereof" prevents:
b. four votes;
a. rollercoaster legislation;
c. five votes;
b. log-rolling legislation;
d. six votes.
c. rolling fields legislation;
29. A person who has a personal and
d. loggerhead legislation. substantial interest in the case, such that
he has sustained, or will sustain, direct
25. The power of the President to veto any injury as a result of its enforcement is
particular part in an appropriation considered to have:
revenue, or tariff bill, is called the:
a. understanding to challenge the
a. specific veto; governmental act;
b. revenue veto; b. standing to challenge the
governmental act;
c. item veto;
c. opportunity to challenge the
d. monetary veto.
governmental act;
26. A tax is progressive when:
d. familiarity to challenge the
a. the rate fluctuates as the tax governmental act.
base decreases;
30. Congressman Sugar Oll authored a bill
b. the rate increases as the tax base called House Bill No, 0056 which legalizes
remains the same; jueteng. When the Bill became law (RA
10156), Fr. Nosu Gal, a priest, filed a
c. the rate increases as the tax base petition seeking for the nullification of RA
increases; 10156 on the ground that it is
d. the rate decreases as the tax unconstitutional as it violates Section 13,
base increases. Article II, of the 1987 Constitution which
states that "The state recognizes the vital
27. When the Supreme Court sits en banc, role of the youth in nation-building and
cases are decided by the concurrence of a shall promote and protect their physical,
majority of the members who: moral, spiritual, intellectual, and social
well-being". Fr. Gal filed the petition as a
a. actually sent in memos on
concerned citizen and as taxpayer. Does
matters for deliberation and
Fr. Gal have locus standi?
called in their votes thereon;
a. No, because Fr. Gal has no
b. actually participated in the oral
personal and substantial interest
arguments and voted thereon;
that will be prejudiced by the
implementation of the law;
 b. No, the law concerns neither
citizens nor expenditure of public
funds;
c. Yes, because the issue is of
transcendental importance;
34. The most essential, insistent and the least
limitable of (government) powers,
extending as it does to all the great public
needs, is:
a. emergency power;

d. Yes, because as priest, Fr. Gal has b. police power;

special interest in the well-being
c. legislative power;
of the youth.
d. power to declare martial law.
31. Where there is "the impossibility of a
court’s undertaking independent 35. 35. In the hierarchy of civil liberties, which
resolution without expressing lack of the right occupies the highest preferred
respect due coordinate branches of position:
government; or an unusual need for
unquestioning adherence to a political a. right to academic freedom;
decision already made; or the potentially
b. right to a balanced and healthful
of embarrassment from multifarious
ecology;
pronouncement by various departments
on a question," describes what kind of c. right to freedom of expression
political question: and of assembly;

a. adherence kind; d. right to equal health.

b. prudential kind; 36. In which of the following would there be

no double jeopardy even if a subsequent
c. respectful kind;
case is filed?
d. deference kind.
a. Pot is accused before the RTC of
32. The "operative fact" doctrine of qualified theft. After
constitutional law is applied when a law is innumerable postponements
declared: against Pot’s wishes, he moves
for dismissal for denial of the
a. operative; right to a speedy trial. Prosecutor
objected. Dismissal granted;
b. factual;
b. Pot is accused before the RTC of
c. constitutional;
qualified theft. After
d. unconstitutional. innumerable postponements
against Pot’s wishes, the
33. The totality of governmental power is
prosecutor moves for dismissal
contained in three great powers:
with the consent of Pot. Granted;
a. police power, power of
c. Pot is accused before the RTC of
sequestration, power of foreign
qualified theft. After
policy;
innumerable postponements
b. power of immigration, municipal against Pot’s wishes, he moves
power, legislative power; for dismissal for denial of the
right to a speedy trial. Prosecutor
c. executive power, legislative posts no objections. Dismissal
power, judicial power; granted;
d. police power, power of eminent d. Pot is accused before the RTC of
domain, power of taxation. qualified theft. After
innumerable postponements
 against Pot’s wishes, the church). Members of the Gangnam Style
prosecutor moves for dismissal Witnesses claim that the act of Mayor
over the objections of Pot. Lebron is a violation of their freedom of
Granted. assembly and religion. Is this correct?

37. Under Article III, Section 2 of the Bill of a. No, because this is valid exercise
Rights, which provides for the exclusion of of police power;
evidence that violate the right to privacy
b. Yes, because the plaza being of
of communication and correspondence,
public use can be used by
to come under the exclusionary rule, the
anybody regardless of religious
evidence must be obtained by:
belief;
a. private individuals acting on their
c. No, because historical
own;
experience shows that peace and
b. government agents; order may be disturbed
whenever two opposing religious
c. private individuals acting on
groups or beliefs expound their
orders of superiors;
dogmas;
d. former high government officials.
d. Yes, because there is no clear
38. The complementing regime that best and present danger in holding a
characterizes the guarantees of freedom religious meeting by another
of speech and of the press are: religious group near a catholic
church.
a. prior punishment and moderate
punishment; 41. Which one is NOT a recognized limitation
to the right to information on matters of
b. prior censorship and subsequent public concern:
remedies;
a. national security matters;
c. no prior restraint and
subsequent punishment; b. trade secrets and banking
transactions;
d. no prior restraint and no
subsequent punishment. c. criminal matters or classified law
enforcement matters;
39. The free exercise and non-establishment
clauses pertain to which right under the d. government research data used
Bill of Rights: as a basis for policy
development.
a. liberty of movement;
42. Which one of the following circumstances
b. liberty of abode; is NOT an element of taking under
eminent domain:
c. religion;
a. entering upon public property
d. life and liberty.
for a momentary period;
40. The Gangnam Style’s Witnesses (whose
b. under color of legal authority;
tenets are derogatory to the Catholic
Church), applied for a permit to use the c. devoting it to public use;
public plaza and kiosk to hold their
religious meeting on the occasion of their d. as substantially to cust the
founding anniversary. Mayor Lebron owner of all beneficial
allowed them to use the northwestern ownership.
part of the plaza but not the kiosk (which
43. Market value for purposes of determining
is a few meters away from the Catholic
just compensation in eminent domain has
 been described as the fair value of
property:
a. between one who desires to
purchase and one does not
desire to sell;
b. between one who desires to
purchase and one who wants to
delay selling;
c. between one who desires to
purchase and one who desires to
sell;
d. between one who desires to
purchase on terms and one who
desires to sell after a period of
time.
44. Under Article III, Section 12 of the
Constitution, any person under
investigation for the commission of an
offense shall have the right to be
informed of his right to remain silent, etc.
The investigation referred to is called:
a. preliminary investigation;
b. summary investigation;
c. criminal investigation;
d. custodial investigation.
45. All persons charged shall, before
conviction, be bailable by sufficient
sureties, except those charged with:
a. offenses punishable by death
when evidence of guilt is strong;
b. offenses punishable by life
imprisonment when evidence of
guilt is strong;
c. offenses punishable by death
when evidence of guilt is weak;
d. offenses punishable by reclusion
perpetua when evidence of guilt
is strong.
46. Criminal trial may proceed,
notwithstanding the absence of the
accused provided that he has been duly
notified, and his failure to appear is
unjustifiable, after:
a. preliminary investigation;
b. arraignment;
c. sentencing;
d. prosecution has rested its case.
47. The requisites of a valid trial in absentia
exclude:
a. Wherein his/her failure to
appear is unjustifiable;
b. Wherein he/she allows
himself/herself to be identified
by the witness in his/her
absence, without further
unqualified admitting that every
time a witness mentions a name
by which he/she is known, it
shall be understood to refer to
him/her;
c. Wherein he/she has been duly
notified of the trial;
d. Wherein the accused has already
been arraigned.
48. The privilege of the writ of habeas corpus
shall not be suspended except in cases of:
a. imminent danger of invasion or
rebellion when the public safety
requires it;
b. grave danger of invasion or
rebellion when the public safety
requires it;
c. clear and present danger of
invasion or rebellion when the
public safety requires it;
d. invasion or rebellion when the
public safety requires it.
49. The right of the accused against self-
incrimination will be violated if:
a. he is charged with violation of
the Anti-Money Laundering Act
and he was required to produce
his bank passbook;
b. he is a public officer charged
with amassing ill-gotten wealth
and his statement of assets and
 liabilities will be presented as c. a legislative act which inflicts
evidence; punishment without trial;

c. his gun was subjected to a d. a legislative act which pardons

ballistics test; punishment after tender.

d. a sample of his blood was taken 53. Which one of the following is NOT an
if his blood type matches the independent Constitutional Commission
blood type found at the scene of under Article IX, Section 1 of the
the crime. Constitution:

50. The death penalty shall not be imposed: a. Commission on Elections;

a. unless for compelling reasons b. Commission on Human Rights;

involving death penalty crimes
c. Civil Service Commission;
and the executive hereafter
provides for it; d. Commission on Audit.
b. unless for compelling reasons 54. The independent Constitutional
involving heinous crimes and a Commissions enjoy:
constitutional amendment
provides for it; a. decisional autonomy;

c. unless for compelling reasons b. organizational autonomy;

involving heinous crimes and
c. fiscal autonomy;
Congress hereafter provides for
it; d. quasi-judicial autonomy.

d. unless for compelling reasons 55. The Civil Service shall be administered by
involving heinous crimes and the the Civil Service Commission composed of
Supreme Court hereafter a:
upholds it.
a. Chairman and a Commissioner;
51. An ex post facto law has been defined as
one: b. Chairman and two (2)
Commissioners;
a. which aggravates a crime or
makes it lesser than when it was c. Chairman and three (3)
committed; Commissioners;

b. which mitigates a crime or makes d. Chairman and four (4)

it lesser than when it was
committed;
c. which aggravates a crime or
makes it greater than when it
was committed;
d. which aggravates a crime or
makes it non-criminal after it was
committed.
52. A bill of attainder is:
a. an executive act which inflicts
punishment without tender;
b. a judicial act which inflicts
punishment without tender;
Commissioners.
56. In Oposa vs. Factoran, Jr., G.R. No.
101083, July 30, 1993, the Supreme Court
held that the personality of the
petitioners to sue is based on the concept
of:
a. ecological responsibility;
b. environmental accountability;
c. intergenerational responsibility;
d. interdisciplinary responsibility.
57. In a unitary system of government, such
as the government under the Philippine
 Constitutor, local government can only d. verified complaint and notice.
be:
62. The President cannot grant pardon in
a. an imperuim in imperio; cases of impeachment. He may however
exercise such power when:
b. an infa-sovereign subdivision;
a. A person convicted in an
c. a sovereign nation;
impeachment proceeding is
d. a sovereign entity. subject to prosecution, trial and
punishment in an ordinary
58. Which one is NOT among the criminal action;
Constitutionally mandated grounds for
impeachment of impeachable officials: b. A person convicted in an
impeachment proceeding is
a. culpable violation of the granted an absolute pardon;
Constitution;
c. A person convicted in an
b. treason, bribery, graft and impeachment proceeding files
corruption and other high his appeal before the Supreme
crimes; Court;
c. betrayal of public trust; d. None of the above.
d. culpable violation of the duty to 63. A public officer impeached and removed
be at all times accountable to the from office shall:
people.
a. nevertheless be immure from
59. Which is NOT an impeachable public prosecution, trial and
officer: punishment according to law;
a. a justice of the Supreme Court; b. nevertheless be liable and
subject to prosecution, trial and
b. a commissioner of the Comelec;
punishment under the Anti-Graft
c. the administrator of the and Corrupt Practices Act;
Supreme Court;
c. nevertheless be liable and
d. the Ombudsman. subject to prosecution, trial and
punishment according to law;
60. Which has the exclusive power to initiate
all cases of impeachment: d. nevertheless be liable and
subject to prosecution, trial and
a. the Senate; punishment only for criminal acts
b. the House of Representatives; under the law.

c. the Senate President; 64. The Ombudsman and his deputies are
appointed by the President from a list
d. the Speaker of the House of prepared by:
Representatives.
a. the Integrated Bar of the
61. At least one-third of all the members of Philippines;
the House of Representatives may file
articles of impeachment by: b. the Commission on
Appointments;
a. verified bill and resolution;
c. the Judicial and Bar Council;
b. verified complaint and
resolution; d. the Supreme Court.

c. verified notice and resolution; 65. SALN means:

 a. Summary of assets, liabilities and b. independent sectoral
net worth; organizations;

b. Statement of assets in banks, c. independent indigenous

liabilities and net worth; organizations;

c. Statement of assets, liabilities d. independent people’s

and net worth; organizations.

d. Statement of personal assets, 70. The principal function of the Commission

liabilities and net worth. on Human Rights is:

66. The independent economic planning a. issue writs of injunction/

agency of the Government as provided restraining orders;
for by the Constitution is the:
b. investigatory;
a. National Privatization Office;
c. quasi-judicial;
b. National Productivity
d. rule-making.
Commission;
71. Optional religious instruction in public
c. National Economic Development
elementary and high schools is allowed
Authority;
provided it be:
d. National Economic Council.
a. without additional overtime cost
67. The Independent Central Monetary to Government;
Authority of the Government is the:
b. without additional cost to
a. Bankers Association of the Government;
Philippines;
c. without additional cost for
b. Philippine Mission of the religious books to Government;
International Monetary Fund;
d. without additional power
c. Central Bank of the Philippines; consumption costs to
Government.
d. World Bank, Philippine Affiliate.
72. Academic freedom shall be enjoyed:
68. The President may contract or guarantee
foreign loans on behalf of the Republic of a. in all public institutions;
the Philippines only upon prior
b. in all elementary and high
concurrence of the:
schools;
a. House of Representatives;
c. in all schools;
b. Senate;
d. in all institutions of higher
c. Central Bank; learning.

d. Monetary Board. 73. Under Article 38(1) of the Statute of the

International Court of Justice, which one
69. Bona fide associations of citizens which
of the following is NOT considered a
demonstrate capacity of promote the
source of international law:
public interest and with identifiable
leadership, membership, and structure a. international conventions;
are:
b. international custom;
a. independent party-list
c. international humanitarian law;
organizations;
 d. general principles of law. 78. Under the United Nations Conference of
the Law of the Sea (UNCLOS), the extent
74. In international law, it is a norm which
of the contiguous zone is:
States cannot derogate or deviate from
their agreements: a. 3 nautical miles from the lowest
water mark;
a. terra nullius;
b. 12 miles from the outer limits;
b. opinio juris;
c. 12 miles from the lowest water
c. jus cogens;
mark;
d. jus cogentus.
d. 200 miles from the outer limits.
75. In international law, the status of an
79. It is a line from which the breadth of the
entity as a State is accepted by other
territorial sea and other maritime zones is
States through this act. It is the "act by
measured:
which another State acknowledges that
the political entity recognized possesses a. contiguous line;
the attributes of statehood."
b. economic line;
a. accession;
c. baseline;
b. recognition;
d. archipelagic line.
c. acknowledgment;
80. It is a maritime zone adjacent to the
d. attribution. territorial seas where the coastal state
may exercise certain protective
76. An act or process by which a State, in
jurisdiction:
compliance with a formal demand or
request, surrenders to another State an a. baseline zone;
alleged offender or fugitive criminal who
b. contiguous zone;
has sought refuge in the territory of the
first State, in order to stand trial or c. transit zone;
complete his prison term:
d. appurtenant zone.
a. extramediation;
81. Butchoy installed a jumper cable. He was
b. exterrertioriality; prosecuted under a Makati ordinance
penalizing such act. He moved for its
c. extradition;
dismissal on the ground that the jumper
d. extraterritoriality. cable was within the territorial
jurisdiction of Mandaluyong and not
77. This doctrine considers the general or
Makati. The case was dismissed. The City
customary norms of international law as a
of Mandaluyong thereafter filed a case
part of municipal law and are to be
against him for theft under the Revised
enforced as such, without regard as to
Penal Code (RCP). Is there double
whether they are enacted as statutory or
jeopardy?
legislative rules or not:
a. No. The first jeopardy was
a. accession;
terminated with his express
b. incorporation; consent;

c. accretion; b. Yes. This is double jeopardy of

the second kind – prosecution
d. adoption. for the same act under an
ordinance and a law;
 c. Yes. He is prosecuted for the
same offense which has already
been dismissed by the City of
Makati;
d. No. The second kind of double
jeopardy under Section 21,
Article III only contemplates
conviction or acquittal which
could terminate a first jeopardy.
82. One of the cardinal primary due process
rights in administrative proceedings is
that evidence must be "substantial."
"Substantial evidence" is:
a. less than a mere scintilla;
b. less than preponderant scintilla;
c. more than a glint of scintilla;
86. The requirement of the Administrative
d. more than a mere scintilla.
83. A statutory provision requiring the
President or an administrative agency to
present the proposed implementing rules
and regulations of a law to Congress
which by itself or through a committee
formed by it, retains a "right" or "power"
to approve or disapprove such regulations
before they may take effect, is a:
a. legislative encroachment;
b. legislative veto;
c. legislative oversight;
d. legislative scrutiny.
84. Which one of the enumeration below
does not come under the Administrative
Code definition of a "rule":
a. agency statement of general
applicability that implements or
interprets a law;
b. fixes and describes the
procedures in or practice
requirements of, an agency;
c. includes memoranda and
statements concerning internal
administration;
d. an agency process for the
formulation of a final order.
85. Under the Administrative Code,
"adjudication" means:
a. whole or any part of any agency
permit, certificate, or other form
of permission, or regulation of
the exercise of a right or
privilege;
b. an agency process for the
formulation of a final order;
c. agency process for the
formulation, amendment, or
repeal of a rule;
d. agency process involving the
grant, renewal, denial,
revocation or conditioning of a
license.
Code on "public participation" is that, if
not otherwise required by law, an agency
shall:
a. in all cases, publish or circulate
notices of proposed rules and
afford interested parties the
opportunity to submit their
views prior to the adoption of
any rule;
b. in all clear and proper cases,
publish or circulate notices of
proposed rules and afford
interested parties the
opportunity to submit their
views prior to the adoption of
any rule;
c. as far as practicable, publish or
circulate notices of proposed
rules and afford the party-list
parties the opportunity to submit
their views prior to the adoption
of any rule;
d. as far as practicable, publish or
circulate notices of proposed
rules and afford interested
parties the opportunity to submit
their views prior to the adoption
of any rule.
87. Under the Administrative Code, in the
fixing of rates, no rules or final order shall
be valid unless:
a. the proposed rates shall have
been submitted to the U.P. Law
Center for publication at least
two weeks before the first
hearing thereon;
b. the proposed rates shall have
been published in the Official
Gazette at least two weeks
before the final hearing thereon;
c. the proposed rates shall have
been published in a newspaper
of general circulation at least
two weeks before the first
hearing thereon;
d. the proposed rates shall have
been published in a newspaper
of general circulation at least
two weeks before the final
hearing thereon.
88. In the judicial review of decisions of
administrative agencies, the
Administrative Code requires that the
review shall be made:
a. on the basis of the pleadings
taken as a whole;
b. on the basis of the record taken
as a whole;
c. on the basis of the evidence
taken as a whole;
d. on the basis of the memoranda
taken as a whole.
89. In the judicial review of decisions of
administrative agencies, the
Administrative Code requires that, except
when specifically provided otherwise by
law:
a. the findings of law of agency
when supported by substantial
evidence, shall be final;
b. the findings of fact of the agency
when supported by
preponderant evidence, shall be
final;
c. the findings of fact of the agency
when supported by substantial
evidence, shall be final;
d. the findings of law of the agency
when supported by credible
evidence, shall be final.
90. The right of the accused to be informed is
violated if:
a. he was accused of killing his wife
by strangulation but it was
proven that his wife died of
poisoning;
b. it was proven that he killed
somebody on a date different
from the one alleged in the
information;
c. he was charged with parricide
but was convicted of murder,
because it turned out that he
and the victim were not married;
d. the accused was charged with
commission of acts of
lasciviousness and was convicted
of unjust vexation.
91. A criminal statute that "fails to give a
person of ordinary intelligence fair notice
that his contemplated conduct is
forbidden by statute" is:
a. void for fair notice;
b. void for arbitrariness;
c. void for vagueness;
d. void conclusively.
92. "Chilling effect" is a concept used in the
area of constitutional litigation affecting:
a. protected speech;
b. protected executive privilege;
c. protected legislative discretion;
d. protected judicial discretion.
93. In the law of libel and protected speech, a
person who, by his accomplishments,
 fame, or mode of living, or by adopting a 97. It is form of entrapment. The method is
profession or calling which gives the for an officer to pose as a buyer. He,
public a legitimate interest in his doings, however, neither instigates nor induces
his affairs, and his character, has become the accused to commit a crime because in
a: these cases, the "seller" has already
decided to commit a crime. The offense
a. public figure;
happens right before the eyes of the
b. celebrity; officer. Under these circumstances:

c. public official; a. there is a need for an

administrative but not a judicial
d. de facto public officer. warrant for seizure of goods and
arrest of the offender;
94. Which one of the following is not a proper
test in cases of challenges to b. there is need for a warrant for
governmental acts that may violate the seizure of the goods and for
protected speech: the arrest of the offender;
a. clear and present danger; c. there is no need for a warrant
either for the seizure of the
b. balancing of interests;
goods or for the arrest of the
c. reasonable relation; offender;

d. dangerous tendency. d. the offender can be arrested but

there is a need for a separate
95. Commercial speech is entitled to: warrant for the seizure of the
a. more protection compared to goods.
other constitutionally 98. Where a police officer observes unusual
guaranteed expression; conduct which leads him reasonably to
b. equal protection compared to conclude in light of his experience that
other constitutionally criminal activity may be afoot and that
guaranteed expression; the persons with whom he is dealing may
be armed and dangerous and he identifies
c. lesser protection compared to himself and makes reasonable inquiries,
other constitutionally but nothing serves to dispel his
guaranteed expression; reasonable fear for his own or other’s
safety, he is entitled to conduct a
d. none of the above.
carefully limited search of the outer
96. No liability can attach to a false, clothing of such persons for weapons.
defamatory statement if it relates to Such search is constitutionally permissible
official conduct, unless the public official and is known as a:
concerned proves that the statement was
a. stop and search;
with knowledge that it was false or with
reckless disregard of whether it was false b. stop and frisk;
or not. This is known as what rule?
c. stop and interrogate;
a. libel malice rule;
d. stop and detain.
b. actual malice rule;
99. Accused was charged with slight illegal
c. malice in fact rule; detention. On the day set for the trial, the
trial court proceeded as follows:
d. legal malice rule.
"Court: to the Q: "Do you have an attorney
accused: or are you going to plead
 guilty?"
A: "I have no lawyer and i will
 
plead guilty."
Accused was then arraigned, pleaded guilty, was
found guilty and sentenced. On appeal, the
Supreme Court reversed. The accused was
deprived of his:
a. right to cross-examination;
b. right to be presumed innocent;
c. right to counsel;
d. right to production of evidence.
100.The constitutional right of an accused "to
meet the witnesses face to face" is
primarily for the purpose of affording the
accused an opportunity to:
a. identify the witness;
b. cross-examine the witness;
c. be informed of the witness;
d. be heard.
I.
Mr. Violet was convicted by the RTC of Estafa. On
appeal, he filed with the Court of Appeals a Motion
to Fix Bail for Provisional Liberty Pending Appeal.
The Court of Appeals granted the motion and set a
bail amount in the sum of Five (5) Million Pesos,
subject to the conditions that he secure "a
certification/guaranty from the Mayor of the place
of his residence that he is a resident of the area
and that he will remain to be a resident therein
until final judgment is rendered or in case he
transfers residence, it must be with prior notice to
the court". Further, he was ordered to surrender
his passport to the Division Clerk of Court for
safekeeping until the court orders its return.
a. Mr. Violet challenges the conditions
imposed by the Court of Appeals as
violative of his liberty of abode and right
to travel. Decide with reasons. (5%)
b. Are "liberty of abode" and "the right to
travel" absolute rights?
Explain. What are the respective
exception/s to each right if any? (5%)
II.
A verified impeachment complaint was filed by
two hundred (200) Members of the House of
Representatives against Madam Chief Justice Blue.
The complaint was immediately transmitted to the
Senate for trial.
a. Madam Chief Justice Blue challenges such
immediate transmittal to the Senate
because the verified complaint 1) not
included in the order of business of the
House, 2) was not referred to the House
Committee on Justice for hearing and
consideration for sufficiency in form and
substance, and 3) was not submitted to
the House Plenary for consideration as
enumerated in Paragraph (2), Section 3,
Article XI of the 1987 Constitution. Decide
with reasons. (5%)
b. What is the purpose of Impeachment?
Does conviction prevent further
prosecution and punishment? Explain.
(3%)
c. Enumerate the grounds for impeachment.
Is graft and corruption a ground for
impeachment? (2%)
III.
Mr. Brown, a cigarette vendor, was invited by PO1
White to a nearby police station. Upon arriving at
the police station, Brown was asked to stand side-
by-side with five (5) other cigarette vendors in a
police line-up. PO1 White informed them that they
were looking for a certain cigarette vendor who
snatched the purse of a passer-by and the line-up
was to allow the victim to point at the vendor who
snatched her purse. No questions were to be
asked from the vendors.
a. Brown, afraid of a "set up" against him,
demanded that he be allowed to secure
his lawyer and for him to be present
during the police line-up. Is Brown
entitled to counsel? Explain (5%)
b. Would the answer in (a.) be the same if
Brown was specifically invited by White
because an eyewitness to the crime
 identified him as the perpetrator? Explain.
(3%)
c. Briefly enumerate the so-called "Miranda
Rights". (2%)
IV.
Mr. Yellow and Mr. Orange were the leading
candidates in the vice-presidential elections. After
elections, Yellow emerged as the winner by a slim
margin of 100,000 votes. Undaunted, Orange filed
a protest with the Presidential Electoral Tribunal
(PET). After due consideration of the facts and the
issues, the PET ruled that Orange was the real
winner of the elections and ordered his immediate
proclamation.
a. Aggrieved, Yellow filed with the Supreme
Court a Petition for Certiorari challenging
the decision of the PET alleging grave
abuse of discretion. Does the Supreme
Court have jurisdiction? Explain. (3%)
b. Would the answer in (a.) be the same if
Yellow and Orange were contending for a
senatorial slot and it was the Senate
Electoral Tribunal (SET) who issued the
challenged ruling? (3%)
c. What is the composition of the PET? (2%)
d. What is judicial power? Explain Briefly.
(2%)
V.
Judge Red is the Executive Judge of Green City.
Red is known to have corrupt tendencies and has a
reputation widely known among practicing lawyers
for accepting bribes. Ombudsman Grey, wishing to
"clean up" the government from errant public
officials, initiated an investigation on the alleged
irregularities in the performance of duties of Judge
Red.
a. Judge Red refused to recognize the
authority of the Office of the Ombudsman
over him because according to him, any
administrative action against him or any
court official or employee falls under the
exclusive jurisdiction of the Supreme
Court. Decide with reasons. (5%)
b. Does the Ombudsman have authority to
conduct investigation over crimes or
offenses committed by public officials that
are NOT in connection or related at all to
the official’s discharge of his duties and
functions? Explain. (3%)
c. Who are required by the Constitution to
submit a declaration under oath of his
assets, liabilities, and net worth? (2%)
VI.
President Black of the Republic of Pasensya (RP)
had a telephone conversation with President Blue
of the People’s Republic of Conquerors (PRC). In
that conversation, both leaders agreed that they
will both pull-out all their vessels, civilian or
otherwise, sea crafts and other ships from the
hotly disputed Kalmado Shoal area within eight (8)
days in order to de-escalate the situation. After
eight days, all RP ships and vessels have left the
area. However, several military and civilian ships
carrying the PRC flag remained in the area and
began construction of a dock that could provide
fuel and other supplies to vessels passing by.
a. Assuming that President Black and
President Blue both had full capacity to
represent their states and negotiate with
each other under their respective systems
of government, and further assuming that
both leaders acknowledge the existence
of the conversation, is the verbal
agreement via telephone binding under
international law? Explain. (5%)
b. Assuming the answer to (a.) is in
affirmative, does that agreement
constitute a Treaty under the 1969 Vienna
Convention on the Law on Treaties? (2%)
c. What are the sources of International
Law? (2%)
d. What is opinio juris in International Law?
(1%)
VII.
Mayor Pink is eyeing re-election in the next
mayoralty race. It was common knowledge in the
town that Mayor Pink will run for re-election in the
coming elections. The deadline for filing of
Certificate of Candidacy (CoC) is on March 23 and
the campaign period commences the following
day. One month before the deadline, Pink has yet
to file her CoC, but she has been going around
town giving away sacks of rice with the words
"Mahal Tayo ni Mayor Pink" printed on them,
holding public gatherings and speaking about how
good the town is doing, giving away pink t-shirts
with "Kay Mayor Pink Ako" printed on them.
a. Mr. Green is the political opponent of
Mayor Pink. In April, noticing that Mayor
Pink had gained advantage over him
because of her activities before the
campaign period, he filed a petition to
X.
disqualify Mayor Pink for engaging in an
election campaign outside the designated
period.
a.1. Which is the correct body to rule on the
matter? Comelec en banc, or Comelec division?
Answer with reasons. (2%)
a.2. Rule on the petition. (5%)
b. Distinguish briefly between Quo Warranto
in elective office and Quo Warranto in
appointive office. (3%)
b. What is "commercial speech"? Is it
entitled to constitutional protection?
What must be shown in order for
government to curtail "commercial
speech"? Explain. (3%)
c. What are the two (2) basic prohibitions of
the freedom of speech and of the press
clause? Explain. (2%)
a. What do you understand by the term
"heirarchy of civil liberties"? Explain. (5%)
b. Distinguish fully between the "free
exercise of religion clause" and the "non-
establishment of religion clause". (3%)
c. When can evidence "in plain view" be
seized without need of a search warrant?
Explain. (2%)

VIII.

a. What is the doctrine of "overbreath"? In

what context can it be correctly applied?
Not correctly applied? Explain (5%)

b. What is the doctrine of "void for

vagueness"? In what context can it be
correctly applied? Not correctly applied?
Explain (5%)

IX.

In a protest rally' along Padre Faura Street, Manila,

Pedrong Pula took up the stage and began
shouting "kayong mga kurakot kayo! Magsi-resign
na kayo! Kung hindi, manggugulo kami dito!" ("you
corrupt officials, you better resign now, or else we
will cause trouble here!") simultaneously, he
brought out a rock the size of a· fist and pretended
to hurl it at the flagpole area of a government
building. He did not actually throw the rock.

a. Police officers who were monitoring the

situation immediately approached
Pedrong Pula and arrested him. He was
prosecuted for seditious speech and was
convicted. On appeal, Pedrong Pula
argued he was merely exercising his
freedom of speech and freedom of
expression guaranteed by the Bill of
Rights. Decide with reasons. (5%)