neighborhood in San Andres Bukid, Manila.
He
LEGAL AND JUDICIAL
ETHICS (2017)
I.
A.
Brando & Luzon Law Office had a retainer
agreement with Gregory, a businessman with
shady connections. Gregory was recently charged
in the RTC in Manila with money laundering in
relation to an illegal drugs syndicate using Cable
Co., his holding company, as its money laundering
conduit. The members of the Brando & Luzon Law
Office assigned to handle Gregory's account,
including yourself, were implicated in the money
laundering case for their role in the incorporation
of Cable Co. and in the active management of its
business affairs.
In a bid to fortify the case against Gregory and the
others, the public prosecutor approaches you (as
the least guilty person who will qualify for a
discharge as a state witness) and offers to make
you a state witness. Should you accept the offer?
Explain your answer. (5%)
B.
Under the facts of the preceding question, assume
that you had resigned from the Brando & Luzon
Law Office prior to the filing of the money
laundering case against Gregory and the others,
and that you were not implicated in the case.
However, you had assisted in handling the Cobra
Co. account during your time with the law firm.
Cobra Co. was largely owned by Cable Co.
The public prosecutor handling the case against
Gregory and the others asks you, as a former
member of the Brando & Luzon Law Office, to help
strengthen the case for the Government, and hints
that you may be implicated in the case if you do
not cooperate. What is your legal and ethical
course of action? Explain your answer. (5%)
II.
A.
Pedro Tigas, a known toughie, asked Atty. Chloe to
meet with him in the Jollibee Restaurant in
Harrison Plaza because he wanted to seek her legal
advice on an important matter. Atty. Chloe had
once before been consulted by Pedro Tigas, who
had then paid her well. When they met in Jollibee
Restaurant, he confided his planned assassination
of Pepeng Taga, his rival for control of the
wanted her to represent him should he be
apprehended for the assassination. Atty. Chloe did
not agree, and left the restaurant in a hurry before
Pedro Tigas could utter anything more.
A few days afterwards, Pepeng Taga was killed
near his house in San Andres Bukid, Manila. The
police follow-up team arrested Pedro Tigas on the
basis of testimony by at least two residents that
they had heard him saying two days before the
killing that Pepeng Taga would not live beyond 48
hours. Should Atty. Chloe reveal to the police
investigator what Pedro Tigas had stated to her at
the Jollibee Restaurant without violating the
confidence of the latter as a client? Explain your
answer. (4%)
B.
Assuming that the meeting between Pedro Tigas
and Atty. Chloe in Jollibee Restaurant occurred
after the killing of Pepeng Taga, and in that
meeting Pedro Tigas expressly admitted to Atty.
Chloe in strict confidence as his lawyer that he had
shot Pepeng Taga. Is Atty. Chloe ethically bound to
reveal the admission of Pedro Tigas to the police
investigator what Pedro Tigas had stated to her at
the Jollibee Restaurant? Explain your answer. (4%)
III.
A.
Alleging that Atty. Frank had seduced her when
she was only 16 years old, and that she had given
birth to a baby girl as a result, Malen filed a
complaint for his disbarment seven years after the
birth of the child charging that he was a grossly
immoral person unworthy and unfit to continue in
the Legal Profession. In his comment, Atty. Frank
argued that the complaint for disbarment should
be dismissed because of prescription.
Explain whether or not Atty. Frank's argument is
justified. (4%)
B.
Beth administratively charged her former lawyer,
Atty. Rawet, with gross misconduct and gross
ignorance of the law for the latter's inadequate
legal representation of her in her suit against her
neighbor. Midway during the investigation, Beth
decided to migrate to Australia. Learning about her
plans, Atty. Rawet approached her and pleaded for
her understanding. He was able to persuade her to
execute an affidavit of desistance in respect of her
administrative complaint. He submitted the
affidavit of desistance to the Supreme Court, and
moved to dismiss the charge against him.
Will the affidavit of desistance warrant the
dismissal of the administrative charge? Explain
your answer. (4%)
IV.
Atty. Jessa was the counsel for Mr. Nolan, a
cantankerous millionaire, in the latter's personal
case. Soon after the case was submitted for
decision, Mr. Nolan withdrew the files from Atty.
Jessa and informed her that he was engaging
another lawyer. On that same day, a copy of the
decision in the case was received by Atty. Jessa but
she did not do anything anymore with the
decision. She did not also file a withdrawal of her
appearance. Mr. Nolan's new counsel did not file
any notice of his appearance. By the time Mr.
Nolan found out about the adverse decision, his
period to appeal had lapsed.
Was the service of the decision on Atty. Jessa still
effective? Explain your answer. (4%)
V.
Eva consulted Atty. Doble Kara, a well-known solo
practitioner, to represent her as a probable heir to
the huge estate of her late lamented grandaunt
who died without issue. After Atty. Doble Kara
perused the documents relevant to the estate
presented by Eva, he told Eva that he could not be
of help to her.
A few days later, Eva learned that Atty. Doble Kara
had just initiated intestate proceedings involving
the same estate in the RTC, and the petitioner
seeking appointment as administratrix was Mely,
Eva's hostile cousin and co-heir to the estate.
Eva moved to immediately disqualify Atty. Doble
Kara from representing Mely on the ground of
conflict of interest, but Atty. Doble Kara explained
to the estate court that there was no conflict of
interest because he had no lawyer-client
relationship with Eva. He further indicated that Eva
had not also paid him any retainer fee.
Given his explanations to the estate court, may
Atty. Doble Kara ethically represent Mely? (4%)
VI.
For services to be rendered by Atty. Hamilton as
counsel for Gener in a civil case involving the
recovery of the ownership and possession of a
parcel of land with an area of 5,000 square meters,
the two of them agreed on a success fee for Atty.
Hamilton of ₱50,000.00 plus 500 square meters of
the land. The trial court ultimately rendered
judgment in favor of Gener, and the judgment
became final and executory. After receiving
₱50,000.00, Atty. Hamilton demanded the transfer
to him of the promised 500 square meters of the
land.
Instead of complying, Gener brought an
administrative complaint charging Atty. Hamilton
with violation of the Code of Professional
Responsibility and Art. 1491(5) of the Civil
Code for demanding the delivery of a portion of
the land subject of the litigation.
Is Atty. Hamilton liable under the Code of
Professional Responsibility and the Civil
Code? Explain your answer. (4%)
VII.
A.
You had just taken your oath as a new lawyer. The
secretary of a big university offered to get you as
the university's notary public. She explained that
the faculty and students would be sent to you to
have their documentations and affidavits
notarized; and that the arrangement would be
very lucrative for you. However, the secretary
wants you to share with her half of your earnings
throughout the year.
Will you agree to the arrangement proposed by
the secretary of the university? Explain your
answer. (4%)
B.
The plaintiff died during the pendency of the case
in the RTC. If you were the counsel of the plaintiff,
what is the last duty you need to discharge in
behalf of the late client before your professional
engagement for the case may be deemed
terminated? Explain briefly your answer. (4%)
VIII.
A.
Sancho Mahilig went to the office of Atty. Charm
to engage her legal representation in the criminal
case for adultery that the husband of his socialite
friend had brought against him in the City
Prosecutor's Office in Manila. Atty. Charm
thoroughly interviewed Sancho in her office with
only Linda, the secretary/stenographer of Atty.
Charm, the only other person present. On that
occasion, Sancho candidly informed Atty. Charm
about his illicit affair with the socialite wife, and
gave many details. Linda faithfully recorded the
interview.
During the trial of the criminal case for adultery,
the trial prosecutor requested the court to issue a
subpoena duces tecum to compel the production
of the record of the interview and a subpoena ad
testificandum to compel Linda to testify on the
admission of the affair by Sancho. Atty. Charm
objected to the request on the basis of lawyer-
client confidentiality.
If you were the trial judge, how will you resolve
the objection of Atty. Charm? Justify your answer.
(4%)
B.
Prosecutor Regan was designated to represent the
State during the trial of an action to declare the
nullity of a marriage. He realized soon enough,
however, that the counsels of the parties were
very competent and sincere in doing their work for
their respective clients. Thus, Prosecutor Regan,
mindful of his large caseload of preliminary
investigations, and believing that his attendance at
the trial was superfluous, decided not to attend
the trial anymore so that he could devote more
time to the work back in his office.
Explain whether or not the decision of Prosecutor
Regan to miss the trial of the action to declare the
nullity of the marriage was warranted. (4%)
IX.
Atty. Miriam rents her office space in a building
owned by Winston. Eventually, Atty. Miriam
became Winston's regular legal counsel. Because
of their good relationship, Atty. Miriam did not
hesitate to borrow money from Winston. Atty.
Miriam issued postdated checks covering the
interest of her loans. Unfortunately, Atty. Miriam
failed to pay her obligations to Winston. Her
postdated checks with Winston also bounced.
Hence, he filed a criminal case for violation of
the Bouncing Checks Law against her.
In her counter-affidavit, Atty. Miriam averred that
Winston was "a businessman who is engaged in
the real estate business, trading and buy and sell
of deficiency taxed imported cars, shark loans and
other shady deals and has many cases pending in
court."
Hurt by the allegations, Winston filed a disbarment
complaint against Atty. Miriam arguing that her
allegations in the counter-affidavit constituted a
breach of their confidential lawyer-client
relationship.
Discuss whether or not the disclosures in Atty.
Miriam's counter-affidavit constitute a breach of
fidelity towards her client. (4%)
X.
Atty. Anna Kirmet was one of Worry Bank's valued
clients. The bank gave her a credit card with a
credit limit of ₱250,000.00. Because of her
extravagance, Atty. Kirmet exceeded her credit
limit and refused to pay the monthly charges as
they fell due.
Hence, aside from a collection case, Worry Bank
filed a disbarment case against Atty. Kirmet. In her
comment on the disbarment complaint, Atty.
Kirmet insisted that she did not violate the Code of
Professional Responsibility because her obligation
to the bank was personal in nature and had no
relation to her being a lawyer.
Is Atty. Kirmet correct? Explain your answer briefly.
(4%)
XI.
A.
Define champerty. (3%)
B.
Atty. Andy and Atty. Valeriano were classmates in
law school. As such, they developed a close
friendly relationship. They agreed that they would
refer clients to each other, and whoever referred
clients would receive a commission or portion of
the attorney's fees. Atty. Andy referred a client to
Atty. Valeriano, who charged the client
₱100,000.00 as initial attorney's fees. Thereafter,
Atty. Valeriano sent 15% of ₱100,000.00, or
₱15,000.00, to Atty. Andy as the latter's referral
fee.
Explain if the agreement on the referral fee is
ethical. (3%)
XII.
Atty. Simplicio published the following
advertisement in a local newspaper: "Annulment
of Marriage, Competent Attorney, Reasonable
Fees, Call 221-2345."
A Justice of the Supreme Court saw the
advertisement and thereafter called the attention
of his colleagues. The Supreme Court directed the
Bar Confidant investigate the matter. When
directed to explain why no disciplinary action
should be taken against him for the improper
advertisement, Atty. Simplicio contended that: (a)
the advertisement was not improper because his
name was not mentioned; and (b) he could not be
subjected to disciplinary action because there was
no complaint filed against him.
Rule on Atty. Simplicio's contentions. (4%)
XIII.
Herbert Madasalin, a 25-year old Bar candidate,
surrendered his driver's license to the security
guard at the Arlegui Gate when he entered the
Malacanang compound to pray at the National
Shrine of St. Jude Thaddeus. After praying the
novena to St. Jude, Herbert went to the Arlegui
Gate to retrieve his driver's license. However, he
was not able to get the license because the
security guard was then elsewhere. He returned
the next day only to be told that the security guard
had misplaced the license. The security guard
concerned could not anymore remember where
he had placed the license.
Herbert immediately requests your assistance in
the preparation of an affidavit of loss. His address
is at 143 Zuzuaregui Street, Don Antonio Heights,
Quezon City. As his friend, prepare Herbert's
affidavit of loss. (5%)
XIV.
Kyle Angelo was served with summons and a copy
of the complaint of Ciara Jane for collection of the
amount of ₱1,000,000.00 as evidenced by a
promissory note signed by Kyle Angelo. She
alleged that the debt was overdue; and that Kyle
Angelo refused to pay despite repeated demands.
Kyle Angelo engaged the services of Atty. Carlos Sa
bit, who decided to file a motion to dismiss on the
ground of lack of cause of action and prescription.
Atty. Carlos Sabit drafted the motion and sent the
draft to Kyle Angelo for his perusal. Kyle Angelo,
being himself a law graduate, quickly noticed that
the draft did not contain a notice of hearing.
Draft the notice of hearing that Atty. Carlos Sabit
should include in the motion to dismiss. (3%)
XV.
Believing that an onerous transfer would result in
lesser taxes than a gratuitous transfer, Nenita
Villo, a widow, decided to sell her lone asset worth
₱3,000,000.00 to her daughters, Andrea, Carina
and Carissa, all of legal age, gainfully employed
and still unmarried. The asset consisted of the
house and the lot registered under Transfer
Certificate of Title No. 67890 of the Register of
Deeds of Paranaque City and situated at No. 3156
Bayswater Street, Metro Ville Subdivision,
Paranaque City where Nenita and her daughters
presently resided.
Nenita required her daughters to make a down
payment of ₱1,000,000.00, and the balance to be
paid once the title to the property was transferred
to her daughters' names. All the taxes, fees, and
costs related to the sale would be for the account
of Nenita, while those related to the transfer of
title would be paid by Andrea, Carina and Carissa.
Draft the contract to be executed by Nenita and
her daughters in connection with the transfer of
the house and lot. Omit details other than those
stated in the question. (10%)
XVI.
Determine if the following advertisements by an
attorney are ethical or unethical. Explain your
answer.
(a) A calling card, 2 inches x 2 inches in size,
bearing the attorney's name in bold print, office,
residence and email addresses, telephone and
facsimile numbers. (2%)
(b) A business card, 3 inches x 4 inches in size,
indicating the aforementioned data with his 1 inch
x 1 inch photograph. (2%)
(c) A pictorial press release in a broadsheet
newspaper made by the attorney showing him
being congratulated by the president of a client
corporation for winning a multi-million damage
suit against the company in the Supreme Court.
(2%)
(d)The same press release made in a tabloid by the
attorney's client. (2%)
(e) A small announcement that the attorney is
giving free legal advice on November 30, 2017
published in Balita, a tabloid in Filipino. (2%)

REMEDIAL LAW (2017)
I.
What trial court outside Metro Manila has
exclusive original jurisdiction over the following
cases? Explain briefly your answers.
(a) An action filed on November 13, 2017 to
recover the possession of an apartment unit being
occupied by the defendant by mere tolerance of
the plaintiff, after the former ignored the last
demand to vacate that was duly served upon and
received by him on July 6, 2016. (2.5%)
(b) A complaint in which the principal relief sought
is the enforcement of a seller's contractual right to
repurchase a lot with an assessed value of
₱15,000.00. (2.5%)
II.
Santa filed against Era in the RTC of Quezon City an
action for specific performance praying for the
delivery of a parcel of land subject of their contract
of sale. Unknown to the parties, the case was
inadvertently raffled to an RTC designated as
a special commercial court. Later, the RTC
rendered judgment adverse to Era, who, upon
realizing that the trial court was not a regular RTC,
approaches you and wants you to file a petition to
have the judgment annulled for lack of jurisdiction.
What advice would you give to Era? Explain your
answer. (4%)
III.
Answer the following briefly:
(a) What elements should concur for
circumstantial evidence to be sufficient for
conviction? (2%)
(b) When is bail a matter of judicial discretion?
(2%)
(c) Give at least two instances when a peace officer
or a private person may make a valid warrantless
arrest. (2%)
(d) What is a tender of excluded evidence? (2%)
IV.
Give brief answers to the following:
(a) What is the doctrine of hierarchy of courts?
(2%)
(b) What is the Harmless Error Rule in relation to
appeals? (2%)
(c) When does a public prosecutor conduct an
inquest instead of a preliminary investigation?
(2%)
V.
After working for 25 years in the Middle East, Evan
returned to the Philippines to retire in Manila, the
place of his birth and childhood. Ten years before
his retirement, he bought for cash in his name a
house and lot in Malate, Manila. Six months after
his return, he learned that his house and lot were
the subject of foreclosure proceedings
commenced by ABC Bank on the basis of a
promissory note and a deed of real estate
mortgage he had allegedly executed in favor of
ABC Bank five years earlier.
Knowing that he was not in the country at the time
the promissory note and deed of mortgage were
supposedly executed, Evan forthwith initiated a
complaint in the RTC of Manila praying that the
subject documents be declared null and void.
ABC Bank filed a motion to dismiss Evan's
complaint on the ground of improper venue on the
basis of a stipulation in both documents
designating Quezon City as the exclusive venue in
the event of litigation between the parties arising
out of the loan and mortgage.
Should the motion to dismiss of ABC Bank be
granted? Explain your answer. (5%)
VI.
Hanna, a resident of Manila, filed a complaint for
the partition of a large tract of land located in
Oriental Mindoro. She impleaded her two brothers
John and Adrian as defendants but did not implead
Leica and Agatha, her two sisters who were
permanent residents of Australia.
Arguing that there could be no final determination
of the case without impleading all indispensable
parties, John and Adrian moved to dismiss the
complaint.
Does the trial court have a reason to deny the
motion? Explain your answer. (4%)
VII.
Elise obtained a loan of ₱3 Million from Merchant
Bank. Aside from executing a promissory note in
favor of Merchant Bank, she executed a deed of
real estate mortgage over her house and lot as
security for her obligation. The loan fell due but
remained unpaid; hence, Merchant Bank filed an
action against Elise to foreclose the real estate
mortgage. A month after, and while the
foreclosure suit was pending, Merchant Bank also
filed an action to recover the principal sum of ₱3
Million against Elise based on the same promissory
note previously executed by the latter.
In opposing the motion of Elise to dismiss the
second action on the ground of splitting of a single
cause of action, Merchant Bank argued that the
ground relied upon by Elise was devoid of any legal
basis considering that the two actions were based
on separate contracts, namely, the contract of
loan evidenced by the promissory note, and the
deed of real estate mortgage.
Is there a splitting of a single cause of action?
Explain your answer. (4%)
VIII.
A.
Laura was the lessee of an apartment unit owned
by Louie. When the lease expired, Laura refused to
vacate the property. Her refusal prompted Louie
to file an action for unlawful detainer against Laura
who failed to answer the complaint within the
reglementary period.
Louie then filed a motion to declare Laura in
default. Should the motion be granted? Explain
your answer. (3%)
B.
Agatha filed a complaint against Yana in the RTC in
Makati City to collect ₱350,000.00, an amount
representing the unpaid balance on the price of
the car Yana had bought from Agatha. Realizing a
jurisdictional error in filing the complaint in the
RTC, Agatha filed a notice of dismissal before she
was served with the answer of Yana. The RTC
issued an order confirming the dismissal.
Three months later, Agatha filed another
complaint against Yana based on the same cause
of action this time in the MeTC of Makati City.
However, for reasons personal to her, Agatha
decided to have the complaint dismissed without
prejudice by filing a notice of dismissal prior to the
service of the answer of Yana. Hence, the case was
dismissed by the MeTC.
A month later, Agatha refiled the complaint
against Yana in the same MeTC.
May Yana successfully invoke the Two-Dismissal
Rule to bar Agatha's third complaint? Explain your
answer. (3%)
IX.
Abraham filed a complaint for damages in the
amount of ₱750,000.00 against Salvador in the
RTC in Quezon City for the latter's alleged breach
of their contract of services. Salvador promptly
filed his answer, and included a counterclaim for
₱250,000.00 arising from the allegedly baseless
and malicious claims of Abraham that compelled
him to litigate and to engage the services of
counsel, and thus caused him to suffer mental
anguish.
Noting that the amount of the counterclaim was
below the exclusive original jurisdiction of the RTC,
Abraham filed a motion to dismiss vis-8-vis the
counterclaim on that ground.
Should the counterclaim of Salvador be dismissed?
Explain your answer. (4%)
X.
On the basis of an alleged promissory note
executed by Harold in favor of Ramon, the latter
filed a complaint for ₱950,000.00 against the
former in the RTC of Davao City. In an unverified
answer, Harold specifically denied the genuineness
of the promissory note. During the trial, Harold
sought to offer the testimonies of the following:
(1) the testimony of an NBI handwriting expert to
prove the forgery of his signature; and (2) the
testimony of a credible witness to prove that if
ever Harold had executed the note in favor of
Ramon, the same was not supported by a
consideration.
May Ramon validly object to the proposed
testimonies? Give a brief explanation of your
answer. (5%)
XI.
A.
Teddy filed against Buboy an action for rescission
of a contract for the sale of a commercial lot. After
having been told by the wife of Buboy that her
husband was out of town and would not be back
until after a couple of days, the sheriff requested
the wife to just receive the summons in behalf of
her husband. The wife acceded to the request,
received the summons and a copy of the
complaint, and signed for the same.
(a) Was there a valid service of summons upon
Buboy? Explain your answer briefly. (3%)
(b) If Buboy files a motion to dismiss the complaint
based on the twin grounds of lack of jurisdiction
over his person and prescription of the cause of
action, may he be deemed to have voluntarily
submitted himself to the jurisdiction of the court?
Explain your answer briefly (3%).
B.
What is the mode of appeal applicable to the
following cases, and what issues may be raised
before the reviewing court/tribunal?
(a) The decision or final order of the National Labor
Relations Commission. (1.5%)
(b) The judgment or final order of the RTC in the
exercise of its appellate jurisdiction. (1.5%)
XII.
A.
Judgment was rendered against defendant Jaypee
in an action for unlawful detainer. The judgment
ordered Jaypee to vacate and to pay attorney's
fees in favor of Bart, the plaintiff.
To prevent the immediate execution of the
judgment, would you advise the posting of
a supersedeas bond as counsel for Jaypee? Explain
your answer briefly? (2%).
B.
A temporary restraining order (TRO) was issued on
September 20, 2017 by the RTC against defendant
Jeff enjoining him from entering the land of Regan,
the plaintiff.
On October 9, 2017, upon application of Regan,
the trial court, allegedly in the interest of justice,
extended the TRO for another 20 days based on
the same ground for which the TRO was issued.
On October 15, 2017, Jeff entered the land subject
of the TRO.
May Jeff be liable for contempt of court? Why?
(4%)
XIII.
Police officers arrested Mr. Druggie in a buy-bust
operation and confiscated from him 10 sachets
of shabu and several marked genuine peso bills
worth ₱5,000.00 used as the buy-bust money
during the buy-bust operation.
At the trial of Mr. Druggie for violation of R.A. No.
9165 (Comprehensive Dangerous Drug Act
of 2002), the Prosecution offered in evidence,
among others, photocopies of the confiscated
marked genuine peso bills. The photocopies were
offered to prove that Mr. Druggie had engaged at
the time of his arrest in the illegal selling of
dangerous drugs.
Invoking the Best Evidence Rule, Atty. Maya Bang,
the defense counsel, objected to the admissibility
of the photocopies of the confiscated marked
genuine peso bills.
Should the trial judge sustain the objection of the
defense counsel? Briefly explain your answer (5%)
XIV.
Immediately before he died of gunshot wounds to
his chest, Venancio told the attending physician, In
a very feeble voice, that it was Arnulfo, his co-
worker, who had shot him. Venancio added that it
was also Arnulfo who had shot Vicente, the man
whose cadaver was lying on the bed beside him.
In the prosecution of Arnulfo for the criminal
killing of Venancio and Vicente, are all the
statements of Venancio admissible as dying
declarations? Explain your answer. (5%)
XV.
In an attempt to discredit and impeach a
Prosecution witness in a homicide case, the
defense counsel called to the stand a person who
had been the boyhood friend and next-door
neighbor of the Prosecution witness for 30 years.
One question that the defense counsel asked of
the impeaching witness was: "Can you tell this
Honorable Court about the general reputation of
the prosecution witness in your community for
aggressiveness and violent tendencies?"
Would you, as the trial prosecutor, interpose your
objection to the question of the defense counsel?
Explain your answer. (4%)
XVI.
Engr. Magna Nakaw, the District Engineer of the
DPWH in the Province of Walang Progreso, and
Mr. Pork Chop, a private contractor, were both
charged in the Office of the Ombudsman for
violation of the Anti-Graft and
Corrupt Practices Act (R.A. No. 3019) under a
conspiracy theory.
While the charges were undergoing investigation
in the Office of the Ombudsman, Engr. Magna
Nakaw passed away. Mr. Pork Chop immediately
filed a motion to terminate the investigation and
to dismiss the charges against him, arguing that
because he was charged in conspiracy with the
deceased, there was no longer a conspiracy to
speak of and, consequently, any legal ground to
hold him for trial had been extinguished.
Rule on the motion to terminate filed by Mr. Pork
Chop, with brief reasons. (5%).
XVII.
Juancho entered a plea of guilty when he was
arraigned under an information for homicide. To
determine the penalty to be imposed, the trial
court allowed Juancho to present evidence proving
any mitigating circumstance in his favor. Juancho
was able to establish complete self-defense.
Convinced by the evidence adduced by Juancho,
the trial court rendered a verdict of acquittal.
May the Prosecution assail the acquittal without
infringing the constitutional guarantee against
double jeopardy in favor of Juancho? Explain your
answer. (5%)
XVIII.
Tomas was criminally charged with serious
physical injuries allegedly committed against
Darvin. During the pendency of the criminal case,
Darvin filed a separate civil action for damages
based on the injuries he had sustained.
Tomas filed a motion to dismiss the separate civil
action on the ground of litis pendentia, pointing
out that when the criminal action was filed against
him, the civil action to recover the civil liability
from the offense charged was also deemed
instituted. He insisted that the basis of the
separate civil action was the very same act that
gave rise to the criminal action.
Rule on Tomas' motion to dismiss, with brief
reasons. (5%)
XIX.
Boy Maton, a neighborhood tough guy, was
arrested by a police officer on suspicion that he
was keeping prohibited drugs in his clutch bag.
When Boy Maton was searched immediately after
the arrest, the officer found and recovered 10
sachets of shabu neatly tucked in the inner linings
of the clutch bag. At the time of his arrest, Boy
Maton was watching a basketball game being
played in the town plaza, and he was cheering for
his favorite team. He was subsequently charged
with illegal possession of dangerous drugs, and he
entered a plea of not guilty when he was
arraigned.
During the trial, Boy Maton moved for the
dismissal of the information on the ground that
the facts revealed that he had been illegally
arrested. He further moved for the suppression of
the evidence confiscated from him as being the
consequence of the illegal arrest, hence, the fruit
of the poisonous tree.
The trial court, in denying the motions of Boy
Maton, explained that at the time the motions
were filed Boy Maton had already waived the right
to raise the issue of the legality of the arrest. The
trial court observed that, pursuant to the Rules of
Court, Boy Maton, as the accused, should have
assailed the validity of the arrest before entering
his plea to the information. Hence, the trial court
opined that any adverse consequence of the
alleged illegal arrest had also been equally waived.
Comment on the ruling of the trial court. (5%)

CRIMINAL LAW (2017)
I.
Tonito, an 8-year-old boy, was watching a free
concert at the Luneta Park with his father Tony.
The child stood on a chair to be able to see the
performers on the stage. Juanito, a 10-year-old
boy, who was also watching the concert, could not
see much of the performance on the stage
because Tonito was blocking his line of sight by
standing on the chair. Using his elbow, Juanito
strongly shoved Tonito to get a good view of the
stage. The shove caused Tonito to fall to the
ground. Seeing this, Tony struck Juanito on the
head with his hand and caused the boy to fall and
to hit his head on a chair. Tony also wanted to
strangle Juanito but the latter's aunt prevented
him from doing so. Juanito sustained a lacerated
wound on the head that required medical
attendance for 10 days.
Tony was charged with child abuse in violation of
Sec. 10(a), in relation to Sec. 3(b)(2), of R.A. No.
7610 (Child Abuse Law) for allegedly doing an "act
by deeds or words which debases, degrades or
demeans the intrinsic worth and dignity of a child
as a human being." In his defense, Tony
contended that he had no intention to maltreat
Juanito, much less to degrade his intrinsic worth
and dignity as a human being.
(a) Distinguish crimes mala in se from crimes mala
prohibita. (3%)
(b) Was Tony criminally liable for child
abuse under R.A. No. 7610? Explain your answer.
(3%)
II.
Sixteen year old Aliswan prodded Amethyst, his
girlfriend, to remove her clothing while they were
secretly together in her bedroom late one evening.
Failing to get a positive response from her, he
forcibly undressed her. Apprehensive about
rousing the attention of the household who did
not know of his presence inside her room, she
resisted him with minimal strength, but she was
really sobbing in a muffled manner. He then
undressed himself while blocking- the door. Yet,
the image of a hapless and sobbing Amethyst soon
brought him to his senses, and impelled him to
leave her room naked. He did not notice in his
hurry that Amante, the father of Amethyst, who
was then sitting alone on a sofa in the sala, saw
him leave his daughter's room naked.
Outside the house, the now-clothed Aliswan
spotted Allesso, Amethyst's former suitor. Knowing
how Allesso had aggressively pursued Amethyst,
Aliswan fatally stabbed Allesso. Aliswan
immediately went into hiding afterwards.
Upon learning from Amethyst about what Aliswan
had done to her, an enraged Amante wanted to
teach Aliswan a lesson he would never forget.
Amante set out the next day to look for Aliswan in
his school. There, Amante found a young man who
looked very much like Aliswan. Amante
immediately rushed and knocked the young man
unconscious on the pavement, and then draped
his body with a prepared tarpaulin reading RAPIST
AKO HUWAG TULARAN. Everyone else in the
school was shocked upon witnessing what had just
transpired, unable to believe that the timid and
quiet Alisto, Aliswan's identical twin brother, had
committed rape.
(a) A criminal complaint for attempted rape with
homicide was brought against Aliswan in the
Prosecutor's Office. However, after preliminary
investigation, the Investigating Prosecutor
recommended the filing of two separate
informations - one for attempted rape and the
other for homicide. Do you agree with the
recommendation? Explain your answer. (3%)
(b) Before the trial court, Aliswan moved that the
cases should be dismissed because he was entitled
to the exempting circumstance of minority. Is his
motion correct? Explain your answer. (3%)
(c) After receiving medical attendance for 10 days,
Alisto consulted you about filing the proper
criminal complaint against Amante. What crimes, if
any, will you charge Amante with? Explain your
answer. (3%)
(d) Answering the criminal complaint filed by
Alisto, Amante contended that he had incurred no
criminal liability for lack of criminal intent on his
part, his intended victim being Aliswan, not Alisto.
What is this defense of Amante, and explain if the
same will prosper? (3%)
III.
Overjoyed by the award to his firm of a multi-
billion government contract for the development
of an economic and tourism hub in the Province of
Blank, Mr. Gangnam allotted the amount of P100
Million to serve as gifts for certain persons
instrumental in his firm's winning the award. He
gave 50% of that amount to Governor Datu, the
official who had signed the contract with the
proper authorization from the Sangguniang
Panlalawigan; 25% to Bokal Diva, the Sangguniang
Panlalawigan member who had lobbied for the
award of the project in the Sangguniang
Panlalawigan; and 25% to Mayor Dolor of the
Municipality where the project would be
implemented. Governor Datu received his share
through his wife, Provincial First Lady Dee, who
then deposited the amount in her personal bank
account.
Previously, upon facilitation by Bokal Diva, Mr.
Gangnam concluded an agreement with Mayor
Dolor for the construction of the Blank Sports
Arena worth ₱800 Million. The project was highly
overpriced because it could be undertaken and
completed for not more than ₱400 Million. For this
project, Mayor Dolor received from Mr. Gangnam
a gift of ₱10 Million, while Bokal Diva got ₱25
Million.
In both instances, Bokal Diva had her monetary
gifts deposited in the name of her secretary, Terry,
who personally maintained a bank account for
Bokal Diva's share in government projects.
(a) May each of the above-named individuals be
held liable for plunder? Explain your answer. (4%)
(b) Define wheel conspiracy and chain
conspiracy. Is either or both kinds existent herein?
Explain your answer. (4%)
(c) What provisions of R.A. No. 3019 (Anti-
Graft & Corrupt Practices Act), if any, were
violated by any of the above-named individuals,
specifying the persons liable therefor? Explain your
answer. (4%)
(d) What crimes under the Revised Penal Code, if
any, were committed, specifying the persons liable
therefor? Explain your answer. (4%)
IV
Maita was the object of Solito's avid sexual
desires. Solito had attempted many times to entice
Maita to a date in bed with him but Maita had
consistently refused. Fed up with all her rejections,
Solito abducted Maita around 7 p.m. one night.
With his cohorts, Solito forced Maita into a Toyota
lnnova and drove off with her to a green-painted
house situated in a desolate part of the town.
There, Solito succeeded in having carnal
knowledge of Maita against her will.
Meanwhile, the police authorities were tipped off
that at 11:30 p.m. on that same night Solito would
be selling marijuana outside the green-painted
house. Acting on the tip, the PNP station of the
town formed a buy-bust team with PO2 Masahol
being designated the poseur buyer. During the
buy-bust operation, Solito opened the trunk of the
Toyota lnnova to retrieve the bag of marijuana to
be sold to PO2 Masahol. To cut the laces that he
had tied the bag with, Solito took out a Swiss knife,
but his doing so prompted PO2 Masahol to effect
his immediate arrest out of fear that he would
attack him with the knife. PO2 Masahol then
confiscated the bag of marijuana as well as the
Toyota lnnova.
(a) Two informations were filed against Solito in
the RTC - one for forcible abduction with
rape, raffled to Branch 8 of the RTC; the other
for illegal sale of drugs, assigned to Branch 29 of
the RTC. Was Solito charged with the proper
offenses based on the circumstances? Explain your
answer. (5%)
(b) While the Prosecution was presenting its
evidence in Branch 29, Branch 8 convicted Solito.
Immediately after the judgment of conviction was
promulgated, Solito filed in both Branches a
motion for the release of the Toyota lnnova. He
argued and proved that he had only borrowed the
vehicle from his brother, the registered owner.
Branch 8 granted the motion but Branch 29 denied
it. Were the two courts correct in their rulings?
Explain your answer. (5%)
V
To aid in the rebuilding and revival of Tacloban City
and the surrounding areas that had been
devastated by the strongest typhoon. to hit the
country in decades, the Government and other
sectors, including NGOs, banded together in the
effort. Among the NGOs was Ba..,gon Waray, Inc.
(BaWI), headed by Mr. Jose Ma. Gulang, its
President and CEO. BaWI operated mainly as a
social amelioration and charitable institution. For
its activities in the typhoon-stricken parts of Leyte
Province, BaWI received funds from all sources,
local and foreign, including substantial amounts
from legislators, local government officials and the
EU. After several months, complaints were heard
about the very slow distribution of relief goods
and needed social services by BaWI.
The COA reported the results of its audit to the
effect that at least P10 Million worth of funds
coming from public sources channeled to BaWI
were not yet properly accounted for. The COA
demanded reimbursement but BaWI did not
respond.
Hence, Mr. Gulang was criminally charged in the
Office of the Ombudsman with malversation of
public funds and failure of accountable officer to
render accounts as respectively defined and
punished by Art. 217 and Art. 218 of the Revised
Penal Code. He was also· charged with violation of
Sec. 3(e) of R.A. No. 3019 for causing undue injury
to the Government.
In his defense, Mr. Gulang mainly contended that
he could not be held 1iable under the various·
charges because he was not a public officer.
(a) Who is a public officer? (2%)
(b) Discuss whether the crimes charged against
Mr. Gulang are proper. Explain your answer. (3%)
VI
Answer with brief explanations the following
queries:
(a) If the slightest penetration of the female
genitalia consummates rape by carnal
knowledge, how does the accused
commit attempted rape by carnal
knowledge? (2%)
(b) What crime is committed by a capataz who
enrolls two fictitious names in the payroll and
collects their supposed daily wages every payday?
(2%)
(c) What is now the age of doli incapax in the
Philippines? (2%)
(d) Why is there no crime of frustrated serious
physical injuries? (2%)
VII
Bernardo was enraged by his conviction
for robbery by Judge Samsonite despite
insufficient evidence. Pending his appeal, Bernardo
escaped in order to get even with Judge
Samsonite. Bernardo learned that the judge
regularly slept in his mistress' house every
weekend. Thus, he waited for the judge to arrive
on Saturday evening at the house of his mistress. It
was about 8:00 p.m. when Bernardo entered the
house of the mistress. He found the judge and his
mistress having coffee in the kitchen and engaging
in small talk. Without warning, Bernardo stabbed
the judge at least 20 times. The judge instantly
died.
Prosecuted and tried, Bernardo was convicted
of direct assault with murder. Rule with reasons
whether or not the conviction for direct assault
with murder was justified, and whether or not the
trial court should appreciate the following
aggravating circumstances against Bernardo, to
wit: (1) disregard of rank and age of the victim,
who was 68 years old; (2) dwelling; (3) nighttime;
(4) cruelty; and (5) quasi-recidivism. (10%)
VIII
Porthos made a sudden turn on a dark street, and
his Rolls-Royce SUV bumped the rear of a parked
Cadillac Sedan inside which Aramis was then taking
a nap. Angered by the violent Impact, Aramis
alighted and confronted Porthos who had also
alighted. Aramis angrily and repeatedly shouted at
Porthos: Putang Ina mo! Porthos, displaying
fearlessness, aggressively shouted back at
Aramis: Wag kang magtapang-tapangan dyan,
papatayin kita! Without saying anything more,
Aramis drew his gun from his waist and shot
Porthos in the leg. Porthos' wound was not life
threatening.
(a) What are the kinds of unlawful aggression, and
which kind was displayed in this case? Explain your
answer. (3%)
(b) Standing trial for frustrated murder, Aramis
pleaded self-defense. The Prosecution's
contention was that the plea of self-defense
applied only to consummated killings. Rule, with
explanations, on the tenability of Aramis' claim of
self-defense, and on the Prosecution's contention.
(3%)
(c) Porthos insisted that the element of treachery
was present. To rule out treachery, Aramis
asserted that both he and Porthos were then
facing and confronting each other when he fired
the shot. Rule, with reasons, on the respective
contentions. (3%)
IX
During the nationwide transport strike to protest
the phase out of old public utility vehicles, striking
jeepney drivers Percy, Pablo, Pater and Sencio,
each armed with guns, hailed several MMDA buses
then providing free transport to the stranded
public to stop them from plying their routes. They
later on commandeered one of the buses without
allowing any of the passengers to alight, and told
the driver to bring the bus to Tanay, Rizal.
Upon reaching a remote area in Tanay, Percy,
Pablo, Pater and Sencio forcibly divested the
passengers of their cash and valuables. They
ordered the passengers to leave thereafter. Then,
they burned the bus. When a tanod of
the barangay of the area came around to
Intervene, Pater fired at him, instantly killing him.
After Percy, Pablo, Pater and Sencio were arrested,
the police authorities recommended them to be
charged with the following crimes, to wit:
(1) carnapping; (2) robbery, (3) direct assault with
homicide; (4) kidnapping; and (5) arson.
State your legal opinion on the recommendation
of the police authorities on the criminal liabilities
incurred by Percy, Pablo, Pater and Sencio. (10%)
X.
Sammy Peke was convicted of a violation of R.A.
No. 123456 for selling fake books. The law
prescribes the penalty of prision correccional, a
divisible penalty whose minimum period is six
months and one day to two years and four
months; medium period is two years, four months
and one day to four years and two months; and
maximum period is four years, two months and
one day to six years.
At arraignment, Sammy Peke pleads guilty to the
crime charged.
(a) Explain how the Indeterminate Sentence Law is
applied in crimes punished by special laws. (3%)
(b) Supposing the trial judge imposes a straight
penalty of imprisonment for one year, is the
penalty correct in the context of the Indeterminate
Sentence Law? Explain your answer. (3%)
XI.
In his homily, Fr. Chris loudly denounced the many
extrajudicial killings committed by the men in
uniform. Policeman Stone, then attending the
mass, was peeved by the denunciations of Fr.
Chris. He immediately approached the priest
during the homily, openly displayed his firearm
tucked in his waist, and menacingly uttered at the
priest: Father, may kalalagyan kayo kung hindi
kayo tumigil. His brazenness terrified the priest,
who cut short his homily then and there. The
celebration of the mass was disrupted, and the
congregation left the church in disgust over the
actuations of Policeman Stone, a co-parishioner.
Policeman Stone was subsequently charged.
The Office of the Provincial Prosecutor is now
about to resolve the case, and is mulling on what
to charge Policeman Stone with.
May Policeman Stone be properly charged with
either or both of the following crimes, or, if not,
with what proper crime?
(a) Interruption of religious worship as defined and
punished under Art. 132 of the Revised Penal
Code; and/or
(b) Offending the religious feelings as defined and
punished under Art. 133 of the Revised Penal
Code.
Explain fully your answers. (8%)

I.
A.
Absolute Timber Co. (ATC) has been engaged in
the logging business in lsabela. To secure one of its
shipments of logs to be transported by Andok
Shipping Co., ATC purchased a marine policy with
an "all risks" provision. Because of a strong
typhoon then hitting Northern Luzon, the vessel
sank and the shipment of logs was totally lost. ATC
filed its claim, but the insurer denied the claim on
several grounds, namely: (1) the vessel had not
been seaworthy; (2) the vessel's crew had lacked
sufficient training; (3) the improper loading of the
logs on only one side of the vessel had led to the
tilting of the ship to that side during the stormy
voyage; and (4) the extremely bad weather had
been a fortuitous event.
ATC now seeks your legal advice to know if its
claim was sustainable. What is your advice?
Explain your answer. (3%)
B.
The newly restored Ford Mustang muscle car was
just released from the car restoration shop to its
owner, Seth, an avid sportsman. Given his passion
for sailing, he needed to go to a round-the-world
voyage with his crew on his brand-new 180-meter
yacht. Hearing about his coming voyage, Sean, his
bosom friend, asked Seth if he could borrow the
car for his next roadshow. Sean, who had been in
the business of holding motor shows and
promotions, proposed to display the restored car
of Seth in major cities of the country. Seth agreed
and lent the Ford Mustang to Sean. Seth further
expressly allowed Sean to use the car even for his
own purposes on special occasions during his
absence from the country. Seth and Sean then
went together to Bayad Agad Insurance Co. (BAIC)
to get separate policies for the car in their
respective names.
SAIC consults you as its lawyer on whether
separate policies could be issued to Seth and Sean
in respect of the same car.
(a) What is insurable interest? (2%)
(b) Do Seth and Sean have separate insurable
interests? Explain Briefly your answer (3%)
II.
A.
Morgan, a lawyer, received a lot of diving and
other water sports equipment as payment of his
professional fees by Dennis, his client in a child
custody case. Dennis owned a diving and water
sports dealership in Anilao, Batangas. Morgan
decided to name Dennis as entrustee because he
did not have any experience in selling such
specialized sports equipment. They executed a
trust receipt agreement, with Morgan as entruster
and Dennis as entrustee.
Before the sports equipment could be sold, a
strong typhoon hit Batangas. Anilao and other
parts of Batangas experienced power outage.
Taking advantage of the total darkness,
unidentified thieves destroyed the padlocks of the
establishment of Dennis, and carted off the
equipment inside.
Morgan demanded that Dennis pay the value of
the stolen equipment, but the latter refused on
the ground that he also had suffered from the
effects of the typhoon, and insisted that the cause
of the loss was a fortuitous event or force majeure.
Is the justification of Dennis warranted? Explain
your answer. (4%)
B.
Safe Warehouse, Inc. (Safe) issued on various
dates negotiable warehouse receipts to Peter, Paul
and Mary covering certain goods deposited by the
latter with the former. Peter, Paul and Mary then
negotiated and endorsed the warehouse receipts
to Cyrus, Magnus and Charles upon payment by
the latter of valuable consideration for the
warehouse receipts. Cyrus, Magnus and Charles
were not aware of, nor were they parties to any
irregularity or infirmity affecting the title or the
face of the warehouse receipts.
On due dates of the warehouse receipts, Cyrus,
Magnus and Charles demanded that Safe
surrender the goods to them. Safe refused
because its warehouseman's claim must first be
paid. Cyrus, Magnus and Charles refused to pay,
and insisted that such claim was the liability of
Peter, Paul and Mary.
(a) What is a warehouseman's claim? (3%)
(b) Is Safe's refusal to surrender the goods to
Cyrus, Magnus and Charles legally justified?
Explain your answer. (3%)
III.
A.
Data Realty, Inc. (DRI) was engaged in realty
development. The family of Matteo owned 100°/o
of the capital stock of ORI. Matteo was also the
President and Chairman of the Board of Directors.
Other members of Matteo's family held the major
positions in ORI. Because of a nasty takeover fight
with D&E Realty Co., Inc. (D&E), another realty
developer, for the control of a smaller realty
company with vast landholdings, ORI and D&E
engaged in an expensive litigation that eventually
led to a money judgment being rendered in favor
of D&E.
Meantime, DRI, facing inability to pay its liabilities
as they fall due but still holding substantial assets,
filed a petition for voluntary rehabilitation. Trying
to beat the consequences of rehabilitation
proceedings, D&E moved in the trial court for the
issuance of a writ of execution. The trial court also
happened to be the rehabilitation court. The writ
of execution was issued.
Serving the writ of execution, Merto, the court
sheriff who had just passed his Credit Transactions
subject in law school, garnished Matteo's bank
accounts, and levied his real properties, including
his house and lot in Makati.
Are the garnishment and levy of Matteo's assets
lawful and proper? Explain your answer. (4%)
B.
Sid used to be the majority stockholder and
President of Excellent Corporation (Excellent).
When Meridian Co., Inc. (Meridian), a local
conglomerate, took over control and ownership of
Excellent, it brought along its team of officers. Sid
thus became a minority stockholder and a minority
member of the Board of Directors. Excellent, being
the leading beverage manufacturer in the country,
became the monopoly when Meridian's own
beverage business was merged with Excellent's,
thereby making Excellent virtually the only
beverage manufacturer in the country.
Left out and ignored by the management, Sid
became a fiscalizer of sorts, questioning during the
Board meetings the direction being pursued by
Excellent's officers.
Ultimately, Sid demanded the inspection of the
books and other corporate records of Excellent.
The management refused to comply, saying that
his right as a minority stockholder has been much
reduced.
State under what conditions may Sid properly
assert his right to inspect the books and other
corporate records of Excellent. Explain your
answer. (3%)
IV.
Procopio, a Director and the CEO of Parisian Hotel
Co., Inc. (Parisian), was charged along with other
company officials with several counts of estafa in
connection with the non-remittance of SSS
premiums the company had collected from its
employees. During the pendency of the cases,
Parisian filed a petition for rehabilitation. The
court, finding the petition to be sufficient in form
and substance, issued a commencement order
together with a stay or suspension order.
Citing the commencement order, Procopio and the
other officers facing the criminal charges moved to
suspend the proceedings in the estafa cases.
(a) What is a commencement order, and what is
the effect of its issuance? Explain your answer.
(4%)
(b) Suppose you are the trial judge, will you grant
the motion to suspend of Procopio, et al.? Explain
your answer. (4%)

V.
A.
Under the Nell Doctrine, so called because it was
first pronounced by the Supreme Court in the 1965
ruling in Nell v. Pacific Farms, Inc. (15 SCRA 415),
the general rule is that where one corporation sells
or otherwise transfers all of its assets to another
corporation, the latter is not liable for the debts
and liabilities of the transferor.
State the exceptions to the Nell Doctrine. (4%)
B.
Santorini Corporation (Santorini) was in dire
straits. In order to firm up its financial standing, it
agreed to entertain the merger and takeover offer
of Proficient Corporation (Proficient), the leading
company in their line of business. Erica, the major
stockholder of Santorini, strongly opposed the
merger and takeover. The matter of the merger
and takeover by Proficient was included in the
agenda of the next meeting of Santorini's Board of
Directors. However, owing to Erica's serious illness
that required her to seek urgent medical
treatment and care in Singapore, she failed to
attend the meeting and was consequently unable
to cast her vote. The Board of Directors approved
the merger and takeover. At the time of the
meeting, Santorini had been in the red for a
number of years owing to its recurring business
losses and reverses.
Erica seeks your legal advice regarding her right as
a stockholder opposed to the corporate action.
Explain your answer. (4%)
C.
Samito is the President and a Director of Lucky
Bank (Lucky}, a commercial bank holding its main
office in Makati. His brother, Othello, owned a big
fishing business based in Malabon. Othello applied
for a loan of PSO Million with Lucky. Othello
followed the ordinary banking procedures in all the
stages of the processing of his application. When
required, he made the necessary arrangements to
guarantee the loan. Thus, in addition to the real
estate mortgage, Othello executed a joint and
solidary suretyship, issued postdated checks, and
submitted all other requirements prescribed by
Lucky.
When the loan application was about to be
approved and the proceeds released, BG
Company, a keen competitor of Othello in the
fishing industry, wrote to the Board of Directors
and the management of Lucky questioning the
loan on the ground of conflict of interest due to
Samito and Othello being brothers, citing the legal
restriction against bank exposure of directors,
officers, stockholders or their related interests
(DOSRI).
(a) What are the three restrictions imposed by law
on DOSRI transactions? (4%)
(b) Is BG Company's opposition based on conflict
of interest and violation of the restrictions on
DOSRI transactions legally and factually correct?
Explain your answer. (4%)
VI.
A.
Hortencio owned a modest grocery business in
Laguna. Because of the economic downturn, he
incurred huge financial liabilities. He remained
afloat only because of the properties inherited
from his parents who had both come from landed
families in Laguna. His main creditor was Puresilver
Company (Puresilver), the principal supplier of the
merchandise sold in his store. To secure his credit
with Puresilver, he executed a real estate
mortgage with a dragnet clause involving his
family's assets worth several millions of pesos.
Nonetheless, Hortencio, while generally in the
black, now faces a situation where he is unable to
pay his liabilities as they fall due in the ordinary
course of business. What will you advise him to do
to resolve his dire financial condition? Explain your
answer. (5%)
B.
Wyatt, an internet entrepreneur, engaged in a
sideline business of creating computer programs
for selected clients on a per project basis and for
servicing basic computer problems of his friends
and family members. His main job was being an IT
consultant at Futurex Co., a local computer
company.
Because of his ill-advised investments in the stock
market and the fraud perpetrated against him by
his trusted confidante, Wyatt was already
drowning in debt, that is, he had far more liabilities
than his entire assets.
What legal recourse remained available to Wyatt?
Explain your answer. (5%)
VII.
A.
Virtucio was a composer of llocano songs who has
been quite popular in the llocos Region. Pascuala is
a professor of music in a local university with
special focus on indigenous music. When she
heard the musical works of Virtucio, she purchased
a CD of his works. She copied the CD and sent the
second copy to her Music instructions for the class
to listen to the CD and analyze the works of
Virtucio.
Did Pascuala thereby infringe Virtucio's copyright?
Explain your answer. (4%)
B.
Super Biology Corporation (Super Biology)
invented and patented a miracle medicine for the
cure of AIDS. Being the sole manufacturer, Super
Biology sold the medicine at an exorbitant price.
Because of the sudden prevalence of AIDS cases in
Metro Manila and other urban areas, the
Department of Health (DOH) asked Super Biology
for a license to produce and sell the AIDS medicine
to the public at a substantially lower price. Super
Biology, citing the huge costs and expenses
incurred for research and development, refused.
Assuming you are asked your opinion as the legal
consultant of the DOH, discuss how you will
resolve the matter. (4%)
VIII.
A.
Flora, a frequent traveller, found a purse
concealed between the cushions of a large sofa
inside the VIP lounge in NAIA while she was
waiting for her flight to be called. Inside the purse
was a very valuable diamond-studded necklace.
She decided not to turn over the purse to the
airport management, and instead to keep it. On
her return from her travels, she had a dependable
jeweller appraise the necklace, and the latter told
her that the necklace was easily worth at least
₱5,000,000.00 in the open market. To test the
appraisal, she pawned the necklace for
₱2,000,000.00. She then deposited the entire
amount in her checking account with Metro Bank.
Promptly, Metro Bank reported the transaction to
the Anti-Money Laundering Council (AMLC).
Given that her appropriation of the necklace was
theft, may Flora be successfully prosecuted for
money laundering? Explain briefly your answer.
(4%)
B.
Prosperous Bank is a domestic bank with head
office in Makati. It handles the banking
requirements of thousands of clients.
The AMLC initiated a discreet investigation of the
financial transactions of Lorenzo, a suspected drug
trafficker based in Naga City. The intelligence
group of the AMLC, in coordination with the
counterpart group from the PDEA and the NBI,
gathered ample evidence establishing Lorenzo's
unlawful drug activities. The AMLC had probable
cause that his deposits and investments in various
banks, including Prosperous Bank, were related to
money laundering.
Accordingly, the AMLC now transmits to
Prosperous Bank a formal demand to allow its
agents to examine the banking transactions of
Lorenzo, but Prosperous Bank refuses the demand.
Is Prosperous Bank's refusal justified? Explain your
answer. (4%)
IX.
A.
Alfred issued a check for ₱1,000.00 to Benjamin,
his friend, as payment for an electronic gadget.
The check was drawn against Alfred's account with
Good Bank. Benjamin then indorsed the check
specially in favor of Cesar. However, Cesar
misplaced the check. Dexter, a dormmate of Cesar,
found the check, altered its amount to ₱91,000.00,
and forged Cesar's indorsement by way of a blank
indorsement in favor of Felix, a known jeweler.
Felix then caused the deposit of the check in his
account with Solar Bank. As collecting bank, Solar
Bank stamped "all previous indorsements
guaranteed" on the check. Seeing such stamp of
the collecting bank, Good Bank paid the amount of
₱91,000.00 on the check.
May Good Bank claim reimbursement from Alfred?
Explain your answer. (4%)
B.
In 2006, Donald, an American temporarily residing
in Cebu City, issued to Rhodora a check for
$50,000.00 drawn against Wells Fargo Bank with
offices in San Francisco, California. Rhodora
negotiated the check and delivered it to Yaasmin, a
Filipina socialite who frequently travelled locally
and internationally. Because of her frequent
travels, Yaasmin misplaced the check. It was only
11 years later on, in 2017, when she found the
check inside a diary kept in her vault in her
Hollywood, California house.
Discuss and explain the rights of Yaasmin on the
check. (4%)
X.
Wisconsin Transportation Co., Inc. (WTC) owned
and operated an inter-island de luxe bus service
plying the Manila-Batangas-Mindoro route. Three
friends, namely: Aurelio, Jerome and Florencio
rode on the same WTC bus from Manila bound for
Mindoro. Aurelio purchased a ticket for himself.
Jerome, being a boyhood friend of the bus driver,
was allowed a free ride by agreeing to sit during
the trip on a stool placed in the aisle. Florencio,
already penniless after spending all of his money
on beer the night before, just stole a ride in the
bus by hiding in the on-board toilet of the bus.
While on its way to Palawan carrying Go-Green's
invited guests who were international and local
observers desirous of checking certain
environmental concerns in the area, the MN
Dolphin encountered high waves and strong winds
caused by a typhoon in the West Philippine Sea.
The rough seas led to serious physical injuries to
some of the guests.
Discuss the liabilities of Onassis and Go-Green to
the passengers of the M/V Dolphin. Explain briefly
your answer. (3%)

During the trip, the bus collided with another bus

coming from the opposite direction. The three
friends all suffered serious physical injuries.

What are WTC's liabilities, if any, in favor of

Aurelio, Jerome and Florencio? Explain your
answer. (4%)

XI.
TRUE or FALSE - Explain briefly your answer.
(a) A conviction under the Trust Receipts Law shall
bar a prosecution for estafa under the Revised
Penal Code. (2%)
(b) The term capital in relation to public utilities
under Sec. 11, Art. XII of the 1987 Constitution
refers to the total outstanding capital stock
comprising both common and non-voting
preferred shares. (2%)

(c) Forgery is a real defense but may only be raised

against a holder not in due course. (2%)

(d) News reports are not copyrightable. (2%)

(e) The law on life insurance prohibits double

insurance. (2%)

XII.
Onassis Shipping, Inc. (Onassis) operated
passenger vessels and cargo trucks, and offered its
services to the general public. In line with its vision
and mission to protect the environment, Go-Green
Asia (Go-Green), an NGO affiliated with
Greenpeace, entered into a contract with Onassis
whereby Go-Green would operate with its own
crew the MN Dolphin, an ocean-going passenger
vessel of Onassis.

CIVIL LAW (2017)
I.
State whether the following marital unions are
valid, void, or voidable, and give the corresponding
justifications for your answer:
(a) Ador and Becky's marriage wherein Ador was
afflicted with AIDS prior to the marriage. (2%)
(b) Carlos' marriage to Dina which took place after
Dina had poisoned her previous husband Edu in
order to free herself from any impediment in order
to live with Carlos. (2%)
(c) Eli and Fely's marriage solemnized seven years
after the disappearance of Chona, Eli's previous
spouse, after the plane she had boarded crashed in
the West Philippine Sea. (2%)
(d) David who married Lina immediately the day
after obtaining a judicial decree annulling his prior
marriage to Elisa. (2%)
(e) Marriage of Zoren and Carmina who did not
secure a marriage license prior to their wedding,
but lived together as husband and wife for 10
years without any legal impediment to marry. (2%)
II.
In 1960, Rigor and Mike occupied two separate but
adjacent tracts of land in Mindoro. Rigor's tract
was classified as timber land while Mike's was
classified as agricultural land. Each of them fenced
and cultivated his own tract continuously for 30
years. In 1991, the Government declared the land
occupied by Mike as alienable and disposable, and
the one cultivated by Rigor as no longer intended
for public use or public service.
Rigor and Mike now come to you today for legal
advice in asserting their right of ownership of their
respective lands based on their long possession
and occupation since 1960.
(a) What are the legal consequences of the 1991
declarations of the Government respecting the
lands? Explain your answer. (2%)
(b) Given that, according to Section 48(b) of
Commonwealth Act No. 141, in relation to Section
14(1) of Presidential Decree No. 1529, the open,
continuous, exclusive and notorious possession
and occupation of alienable and disposable lands
of the public domain as basis for judicial
confirmation of imperfect title must be from June
12, 1945, or earlier, may Mike nonetheless validly
base his assertion of the right of ownership on
prescription under the Civil Code? Explain your
answer. (4%)
(c) Does Rigor have legal basis for his application
for judicial confirmation of imperfect title based on
prescription as defined by the Civil Code given
that, like Mike, his open, continuous, exclusive and
notorious possession and occupation was not since
June 12, 1945, or earlier, and his tract of land was
timber land until the declaration in 1991? Explain
your answer. (4%)
III.
Josef owns a piece of land in Pampanga. The
National Housing Authority (NHA) sought to
expropriate the property for its socialized housing
project. The trial court fixed the just compensation
for the property at P50 million. The NHA
immediately deposited the same at the authorized
depository bank and filed a motion for the
issuance of a writ of possession with the trial
court. Unfortunately, there was delay in the
resolution of the motion. Meanwhile, the amount
deposited earned interest.
When Josef sought the release of the amount
deposited, NHA argued that Josef should only be
entitled to P50 million.
Who owns the interest earned? (3%)
IV.
(a) Distinguish antichresis from usufruct? (3%)
(b) Distinguish commodatum from mutuum. (3%)
V.
Jacob has owned a farm land in Ramos, Tarlac. In
2012, Liz surreptitiously entered and cultivated the
property. In 2014, Jacob discovered Liz's presence
in and cultivation of the property. Due to his being
busy attending to his business in Cebu, he
tolerated Liz's cultivation of the property.
Subsequently, in December 2016, Jacob wanted to
regain possession of the property; hence, he sent a
letter to Liz demanding that she vacate the
property. Liz did not vacate despite the demand.
Jacob comes to enlist your legal assistance to bring
an action against Liz to recover the possession of
the property.
What remedies are available to Jacob to recover
possession of his property under the
circumstances? Explain your answer. (4%)
VI.
Tyler owns a lot that is enclosed by the lots of Riley
to the North and East, of Dylan to the South, and
of Reece to the West. The current route to the
public highway is a kilometer's walk through the
northern lot of Riley, but the route is a rough road
that gets muddy during the rainy season, and is
inconvenient because it is only 2.5 meters wide.
Tyler's nearest access to the public highway would
be through the southern lot of Dylan.
May Dylan be legally required to afford to Tyler a
right of way through his property? Explain your
answer. (4%)
VII.
Alice agreed to sell a parcel of land with an area of
500 square meters registered in her name and
covered by TCT No. 12345 in favor of Bernadette
for the amount of ₱900,000.00. Their agreement
dated October 15, 2015 reads as follows:
I, Bernadette, agree to buy the lot owned by Alice
covered by TCT No. 12345 for the amount of
₱900,000.00 subject to the following schedule of
payment:
Upon signing of agreement – ₱100,000.00
November 15, 2015 – ₱200,000.00
December 15, 2015 - ₱200,000.00
January 15, 2016 - ₱200,000.00
February 15, 2016 - ₱200,000.00
Title to the property shall be transferred upon full
payment of ₱900,000.00 on or before February 15,
2016.
After making the initial payment of ₱100,000.00
on October 15, 2015, and the second instalment of
₱200,000.00 on November 15, 2015, Bernadette
defaulted despite repeated demands from Alice.
In December 2016, Bernadette offered to pay her
balance but Alice refused and told her that the
land was no longer for sale. Due to the refusal,
Bernadette caused the annotation of her adverse
claim upon TCT No. 12345 on December 19, 2016.
Later on, Bernadette discovered that Alice had sold
the property to Chona on February 5, 2016, and
that TCT No. 12345 had been cancelled and
another one issued (TCT No. 67891) in favor of
Chona as the new owner.
Bernadette sued Alice and Chona for specific
performance, annulment of sale and cancellation
of TCT No. 67891. Bernadette insisted that she had
entered into a contract of sale with Alice; and that
because Alice had engaged in double sale, TCT No.
67891 should be cancelled and another title be
issued in Bernadette's favor.
(a) Did Alice and Bernadette enter into a contract
of sale of the lot covered by TCT No. 12345?
Explain your answer. (4%)
(b)Did Alice engage in double sale of the property?
Explain your answer. (4%)
VIII.
Pedro had worked for 15 years in Saudi Arabia
when he finally decided to engage in farming in his
home province where his 10- hectare farmland
valued at ₱2,000,000.00 was located. He had
already ₱3,000,000.00 savings from his long stint
in Saudi Arabia.
Eagerly awaiting Pedro's arrival at the NAIA were
his aging parents Modesto and Jacinta, his
common-law spouse Veneranda, their three
children, and Alex, his child by Carol, his departed
legal wife. Sadly for all of them, Pedro suffered a
stroke because of his overexcitement just as the
plane was about to land, and died without seeing
any of them.
The farmland and the savings were all the
properties he left.
(a) State who are Pedro's legal heirs, and the
shares of each legal heir to the estate? Explain
your answer. (4%)
(b) Assuming that Pedro's will is discovered soon
after his funeral. In the will, he disposed of half of
his estate in favor of Veneranda, and the other half
in favor of his children and his parents in equal
shares. Assuming also that the will is admitted to
probate by the proper court. Are the testamentary
dispositions valid and effective under the law on
succession? Explain your answer. (4%)
IX.
Danny and Elsa were married in 2002. In 2012, Elsa
left the conjugal home and her two minor children
with Danny to live with her paramour. In 2015,
Danny sold without Elsa's consent a parcel of land
registered in his name that he had purchased prior
to the marriage. Danny used the proceeds of the
sale to pay for his children's tuition fees.
Is the sale valid, void or voidable? Explain your
answer. (3%)
X.
Briefly explain whether the following contracts are
valid, rescissible, unenforceable, or void:
(a) A contract of sale between Lana and Andy
wherein 16-year old Lana agreed to sell her grand
piano for ₱5,000.-00. (2%)
(b) A contract of lease of the Philippine Sea
entered by and between Mitoy and Elsa. (2%)
(c) A barter of toys executed by 12-year old
Clarence and 10-year old Czar (2%)
(d) A sale entered by Barri and Garri, both minors,
which their parents later ratified. (2%)
(e) Jenny's sale of her car to Celestine in order to
evade attachment by Jenny's creditors. (2%)
XI.
Zeny and Nolan were best friends for a long time
already. Zeny borrowed ₱10,000.00 from Nolan,
evidenced by a promissory note whereby Zeny
promised to pay the loan "once his means
permit." Two months later, they had a quarrel that
broke their long-standing friendship.
Nolan seeks your advice on how to collect from
Zeny despite the tenor of the promissory note.
What will your advice be? Explain your answer.
(3%)
XII.
Krystal owns a parcel of land covered by TCT No.
12345 in Angeles City. Due to severe financial
constraints, Krystal was forced to sell the property
to RBP Corporation, a foreign corporation based in
South Korea. Subsequently, RBP Corporation sold
the property to Gloria, one of its most valued
clients.
Wanting her property back, Krystal, learning of the
transfer of the property from RBP Corporation to
Gloria, sued both of them in the Regional Trial
Court (RTC) for annulment of sale and for
reconveyance. She alleged that the sale by RBP
Corporation to Gloria was void because RBP
Corporation was a foreign corporation prohibited
by the Constitution from acquiring and owning
lands in the Philippines.
Will Krystal's suit for annulment of sale and
reconveyance prosper? Explain your answer. (4%)
XIII.
TRUE or FALSE - Explain your answers.
(a) All rights are considered as property. (2%)
(b) A lessee cannot bring a case for quieting of title
respecting the property that he leases. (2%)
(c) Only the city or municipal mayor can file a civil
action to abate a public nuisance. (2%)
(d) Possession of a movable property is lost when
the location of the said movable is unknown to the
owner. (2%)

(e) Continuous non-apparent easements can be
acquired either through title or by prescription.
(2%)
XIV.
Plutarco owned land that borders on a river. After
several years, the action of the water of the river
caused the deposit of soil, and increased the area
of Plutarco's property by 200 square meters.
(a) If Plutarco wants to own the increase in area,
what will be his legal basis for doing so? Explain
your answer. (2%)
(b) On the other hand, if the river dries up, may
Plutarco validly claim a right of ownership of the
dried-up river bed? Explain your answer. (2%)
XV.
Kevin signed a loan agreement with ABC Bank. To
secure payment, Kevin requested his girlfriend
Rosella to execute a document entitled
"Continuing Guaranty Agreement" whereby she
expressly agreed to be solidarily liable for the
obligation of Kevin.
negligent; and the PNR for damages based
on culpa aquiliana.
Jovencio denied being a common carrier. He
insisted that he had exercised the diligence of a
good father of a family in supervising Porfirio,
claiming that the latter had had no history of
negligence or recklessness before the fatal
accident.
(a) Did his operation of the school bus service for a
limited clientele render Jovencio a common
carrier? Explain your answer. (3%)
(b) In accordance with your answer to the
preceding question, state the degree of diligence
to be observed by Jovencio, and the consequences
thereof. Explain your answer. (3%)
(c) Assuming that the fatality was a minor of only
15 years of age who had no earning capacity at the
time of his death because he was still a student in
high school, and the trial court is minded to award
indemnity, what may possibly be the legal and
factual justifications for the award of loss of
earning capacity? Explain your answer. (4%)

Can ABC Bank proceed directly against Rosella

upon Kevin's default even without proceeding
against Kevin first? Explain your answer. (3%)

XVI.
Jovencio operated a school bus to ferry his two
sons and five of their schoolmates from their
houses to their school, and back. The parents of
the five schoolmates paid for the service. One
morning, Porfirio, the driver, took a short cut on
the way to school because he was running late,
and drove across an unmanned railway crossing.
At the time, Porfirio was wearing earphones
because he loved to hear loud music while driving.
As he crossed the railway tracks, a speeding PNR
train loudly blared its horn to warn Porfirio, but
the latter did not hear the horn because of the
loud music. The train inevitably rammed into the
school bus. The strong impact of the collision
between the school bus and the train resulted in
the instant death of one of the classmates of
Jovencio's younger son.

The parents of the fatality sued Jovencio for

damages based on culpa contractual alleging that
Jovencio was a common carrier; Porfirio for being

TAXATION LAW (2017)
I.
SMZ, Inc. is a VAT-registered enterprise engaged in
the general construction business. HP International
contracts the services of SMZ, Inc. to construct HP
lnternational's factory building located in the
Laguna Techno Park, a special economic zone. HP
International is registered with the Philippine
Economic Zone Authority (PEZA) as an ecozone
export enterprise, and, as such, enjoys income tax
holiday pursuant to the Special Economic Zone Act
of 1995.
SMZ, Inc. files an application with the Bureau of
Internal Revenue (BIR) for the VAT zero-rating of
its sale of services to HP International. However,
the BIR denies SMZ, lnc.'s application on the
ground that HP International already enjoys
income tax holiday.
Is the BIR correct in denying SMZ, lnc.'s
application? Explain your answer. (6%)
II.
Wreck Corporation is a domestic corporation
engaged in the business of importing, refining and
selling petroleum products. During the period from
September 1, 2014 to December 31, 2014, Wreck
Corporation imported 225 million liters of Jet A-1
aviation fuel and paid the excise taxes thereon.
Seventy-five percent (75%) of the total volume of
aviation fuel imported were actually sold to
international carriers of Philippine and foreign
registries for their use or consumption outside of
the Philippines in the period from November 1,
2014 to December 31, 2014. Wreck Corporation
did not pass on to the international carriers the
excise taxes it paid on the importation of
petroleum products.
On June 25, 2015, Wreck Corporation filed an
administrative claim for refund or issuance of tax
credit certificate amounting to the excise taxes it
had paid on the importation of 225 million liters of
Jet A-1 aviation fuel.
If you were the Commissioner of Internal Revenue,
will you grant Wreck Corporation's administrative
claim for refund or issuance of tax credit
certificate? Explain your answer. (6%)
III.
Vanderful, lnc.'s income tax return for taxable year
2015 showed an overpayment due to excess
creditable withholding taxes in the amount of
₱750,000.00. The company opted to carry over the
excess income tax credits as tax credit against its
quarterly income tax liabilities for the next
succeeding years. For taxable year 2016, the
company's income tax return showed an
overpayment due to excess creditable withholding
taxes in the amount of ₱1,100,000.00, which
included the carry-over from year 2015 in the
amount of ₱750,000.00 because its operations
resulted in a net loss; hence, there was no
application for any tax liability. This time, the
company opted and marked the box "To be
refunded' in respect of the total amount of
₱1,100,000.00.
Vanderful, Inc. now files in the BIR a claim for
refund of unutilized overpayments of
₱1,100,00.00.
Is the claim meritorious? (4%)
IV.
On the basis of a warrant of seizure and detention
issued by the Collector of Customs for the purpose
of enforcing the Tariff and Customs Code, assorted
brands of liquor and cigarettes said to have been
illegally imported into the Philippines were seized
from a store operating in a Freeport zone. The
store owner moved for the quashal of the warrant
on the ground that the Collector of Customs had
no jurisdiction to enforce it within the Freeport
zone.
Should the motion to quash be granted? (3%)
V.
On March 30, 2016, XL Co. filed an administrative
claim for refund of unutilized input VAT for taxable
year 2014, together with supporting documents.
XL Co. claimed that its sale of generated power
and delivery of electric capacity and energy was
VAT zero-rated. Due to the inaction of the
Commissioner of Internal Revenue (CIR), XL Co.
filed with the Court of Tax Appeals (CTA) the
following judicial claims for refund:
Is XL Co.'s claim for VAT refund timely filed?
Explain your answer. (5%)
VI.
Heeding the pronouncement of the President that
the worsening traffic condition in the metropolis
was a sign of economic progress, the Congress
enacted Republic Act No. 10701 (RA 10701), also
known as An Act Imposing a Transport Tax on the
Purchase of Private Vehicles.
Under RA 10701, buyers of private vehicles are
required to pay a transport tax equivalent to 5°/o
of the total purchase price per vehicle purchased.
RA 10701 provides that the Land Transportation
Office (LTO) shall not accept for registration any
new vehicles without proof of payment of the 5%
transport tax. RA 10701 further provides that
existing owners of private vehicles shall be
required to pay a tax equivalent to 5% of the
current fair market value of every vehicle
registered with the LTO. However, RA 10701
exempts owners of public utility vehicles and the
Government from the coverage of the 5%
transport tax.
A group of private vehicle owners sue on the
ground that the law is unconstitutional for
contravening the Equal Protection Clause of the
Constitution.
Rule on the constitutionality and validity of RA
10701. (5%)
VII.
Calvin Dela Pisa was a Permits and Licensing
Officer (rank-and-file) of Sta. Portia Realty
Corporation (SPRC). He invited the Regional
Director of the Housing and Land Use Regulatory
Board (HLURB) to lunch at the Sulo Hotel in
Quezon City to discuss the approval of SPRC's
application for a development permit in
connection with its subdivision development
project in Pasig City. At breakfast the following
day, Calvin met a prospective client interested to
enter into a joint venture with SPRC for the
construction of a residential condominium unit in
Cainta, Rizal.
Calvin incurred expenses for the lunch and
breakfast meetings he had with the Regional
Director of HLURB and the prospective client,
respectively. The expenses were duly supported by
official receipts issued in his name. At month's end,
Period Covered Date Filed
1st Quarter of 2014 March 31, 2016
2nd Quarter of 2014 June 30, 2016
3rd and 4th Quarter of 2014 August 12, 2016
he requested the reimbursement of his expenses,
and SPRC granted his request.
(a) Can SPRC claim an allowable deduction for the
expenses incurred by Calvin? Explain your answer.
(2.5%)
(b) Is the reimbursement received by Calvin from
SPRC subject to tax? Explain your answer. (2.5%)
VIII.
On April 30, 2015, Daryl resigned as the production
manager of 52nd Avenue, a television studio
owned by SSS Entertainment Corporation. 52nd
Avenue issued to her a Certificate of Withholding
Tax on Compensation (BIR Form No. 2316), which
showed that the tax withheld from her
compensation was equal to her income tax due for
the period from January 2015 to April 30, 2015.
A month after her resignation, Daryl put up her
own studio and started producing short films. She
was able to earn a meager income from her short
films but did not keep record of her production
expenses.
Is Daryl qualified for substituted filing for taxable
year 2015? Explain your answer. (3%)
IX.
Upon his retirement, Alfredo transferred his
savings derived from his salary as a marketing
assistant to a time deposit with AAB Bank. The
bank regularly deducted 20% final withholding tax
on the interest income from the time deposit.
Alfredo contends that the 20% final tax on the
interest income constituted double taxation
because his salary had been already subjected to
withholding tax.
Is Alfredo's contention correct? Explain your
answer. (3%)
X.
On January 27, 2017, Ramon, the comptroller of
Vantage Point, Inc., executed a document
entitled Waiver of the Statute of Limitations in
connection with the BIR's investigation of the tax
liabilities of the company for the year 2012.
However, the Board of Directors of Vantage Point,
Inc. did not adopt a board resolution authorizing
Ramon to execute the waiver.
On October 14, 2017, Vantage Point, Inc. received
a preliminary assessment notice from the BIR
indicating its deficiency withholding taxes for the
year 2012. Vantage Point, Inc. filed its protest. On
October 30, 2017, the BIR issued a formal letter of
demand and final assessment notice. Vantage
Point, Inc. again filed a protest. The Commissioner
of Internal Revenue denied the protests and
directed the collection of the assessed deficiency
taxes.
Accordingly, Vantage Point, Inc. filed a petition for
review in the CTA to seek the cancellation and
withdrawal of the assessment on the ground of
prescription.
(a) What constitutes a valid waiver of the statute
of limitations for the assessment and collection of
taxes? Explain your answer. (3%)
(b) Has the right of the Government to assess and
collect deficiency taxes from Vantage Point, Inc.
for the year 2012 prescribed? Explain your answer.
(3%)
XI.
The Board of Directors of Sumo Corporation, a
company primarily engaged in the business of
marketing and distributing pest control products,
approved the partial cessation of its commercial
operations, resulting in the separation of 32
regular employees. Only half of the affected
employees were notified of the board resolution.
Rule on the taxability of the separation pay and
indemnity that will be received by the affected
employees as the result of their separation from
service. Explain your answer. (3%)
XII.
On September 17, 2015, Data Realty, Inc., a real-
estate corporation duly organized and existing
under Philippine law, sold to Jenny Vera a
condominium unit at Freedom Residences in
Malabon City with an area of 32.31 square meters
for a contract price of ₱4,213,000.00. The
condominium unit had a zonal value amounting to
₱2,877,000.00 and fair market value amounting to
₱550,000.00.
(a) Is the transaction subject to value-added tax
and documentary stamp tax? Explain your answer.
(3%)
(b) Would your answer be the same if the property
was sold by a bank in a foreclosure sale? Explain
your answer. (3%)
XIII.
BATAS Law is a general professional partnership
operating in the City of Valenzuela. It regularly
pays value-added tax on its services. All its lawyers
have individually paid the required professional tax
for the year 2017. However, as a condition for the
renewal of its business permit for the year 2017,
the City Treasurer of Valenzuela assessed BAT AS
Law for the payment of percentage business tax on
its gross receipts for the year 2016 in accordance
with the Revenue Tax Code of Valenzuela.
Is BATAS Law liable to pay the assessed percentage
business tax? Explain your answer. (3%)
XIV.
Globesmart Services, Inc. received a final
assessment notice with formal letter of demand
from the BIR for deficiency income tax, value-
added tax and withholding tax for the taxable year
2016 amounting to P48 million. Globesmart
Services, Inc. filed a protest against the
assessment, but the Commissioner of Internal
Revenue denied the protest. Hence, Globesmart
Services, Inc. filed a petition for review in the CTA
with an urgent motion to suspend the collection of
tax.
After hearing, the CTA Division issued a resolution
granting the motion to suspend but required
Globesmart Services, Inc. to post a surety bond
equivalent to the deficiency assessment within 15
days from notice of the resolution. Globesmart
Services, Inc. moved for the partial reconsideration
of the resolution and for the reduction of the bond
to an amount it could obtain. The CTA Division
issued another resolution reducing the amount of
the surety bond to Jl24 million. The latter amount
was still more than the net worth of Globesmart
Services, Inc. as reported in its audited financial
statements.
(a) May the collection of taxes be suspended?
Explain your answer. (3%)
(b) Is the CTA Division justified in requiring
Globesmart Services, Inc. to post a surety bond as
a condition for the suspension of the deficiency tax
collection? Explain your answer. (3%)
XV.
Casimira died on June 19, 2017 after three weeks
of confinement due to an unsuccessful liver
transplant. For her confinement, she had incurred
substantial medical expenses that she financed
through personal loans secured by mortgages on
her real properties. Her heirs are still in the
process of making an inventory of her assets that
can be used to pay the estate taxes, if any, which
are due on December 19, 2017.
(a) Are the medical expenses, personal loans and
mortgages incurred by Casimira deductible from
her gross estate? Explain your answer.(5%)
(b) May the heirs of Casimira file the estate tax
return and pay the corresponding estate tax
beyond December 19, 2017 without incurring
interest and surcharge? Explain your answer.(3%)
XVI.
The BIR assessed the Babuyan Water District
(BWD) with deficiency income taxes amounting to
P8.5 million, inclusive of interest and surcharge.
The BWD disputed the assessment, and argued
that it was a wholly-owned government entity
performing essential government functions.
However, the BIR denied the protest.
The BWD filed a petition for arbitration in the
Office of the Secretary of Justice pursuant to
Sections 66 to 71, Chapter 14, Book IV of
the Administrative Code of 1987 to assail the
denial of its protest, and to seek the proper
interpretation of Section 32(8)(7)(b) of the Tax
Code that excluded from gross income the income
derived by the Government or its political
subdivisions. The Secretary of Justice rendered a
decision declaring the BWD exempt from the
payment of income tax.
The Commissioner of Internal Revenue appealed
to the CTA on the sole ground that the Secretary of
Justice had no jurisdiction to review the
assessment of the BIR.
Is the appeal meritorious? Explain your answer.
(4%)
XVII.
San Juan University is a non-stock, non-profit
educational institution. It owns a piece of land in
Caloocan City on which its three 2-storey school
buildings stood. Two of the buildings are devoted
to classrooms, laboratories, a canteen, a bookstore
and administrative offices. The third building is
reserved as dormitory for student athletes who
are granted scholarships for a given academic year.
In 2017, San Juan University earned income from
tuition fees and from leasing a portion of its
premises to various concessionaires of food,
books, and school supplies.
(a) Can the City Treasurer of Caloocan City collect
real property taxes on the land and building of San
Juan University? Explain your answer. (5%)
(b) Is the income earned by San Juan University for
the year 2017 subject to income tax? Explain your
answer. (5%)

XVIII.
(a) Differentiate outright smuggling from technical
smuggling. (3%)
(b)Distinguish compromise from abatement of
taxes. (3%)
XIX.
CMI School, Inc., a non-stock, non-profit
corporation, donated its three parcels of idle land
situated in the Municipality of Cuyapo, Nueva Ecija
to SLC University, another non-stock, non-profit
corporation, in recognition of the latter's
contribution to and participation in the spiritual
and educational development of the former.
(a) Is CMI School, Inc. liable for the payment of
donor's tax? Explain your answer. (2.5%)
(b) If SLC University later sells the three parcels of
idle land to Puregold Supermarket, Inc., a stock
corporation, will SLC University be liable for capital
gains tax? Explain your answer. (3%)
(c) If SLC University donates the three parcels of
idle land in favor of the Municipality of Cuyapo,
Nueva Ecija, will SLC University be liable for
donor's tax? Explain your answer. (2.5%)
I LABOR LAW (2017)
A.
What are the accepted tests to determine the
existence of an employer-employee relationship?
(5%)
B.
Applying the tests to determine the existence of an
employer-employee relationship, is a jeepney
driver operating under the boundary system an
employee of his jeepney operator or a mere lessee
of the jeepney? Explain your answer. (3%)
II.
Procopio was dismissed from employment for
stealing his co-employee Raul's watch. Procopio
filed a complaint for illegal dismissal. The Labor
Arbiter ruled in Procopio's favor on the ground
that Raul's testimony was doubtful, and, therefore,
the doubt should be resolved in favor of Procopio.
On appeal, the NLRC reversed the ruling because
Article 4 of the Labor Code - which states that all
doubts in the interpretation and implementation
of the provisions of the Labor Code, including the
implementing rules and regulations, shall be
resolved in favor of labor - applied only when the
doubt involved the "implementation and
interpretation" of the Labor Code; hence, the
doubt, which involved the application of the rules
on evidence, not the Labor Code, could not
necessarily be resolved in favor of Procopio. Was
the reversal correct? Explain your answer. (3%)
III.
A.
Andrew Manning Agency (AMA) recruited
Feliciano for employment by lnvictus Shipping, its
foreign principal. Meantime, AMA and lnvictus
Shipping terminated their agency agreement.
Upon his repatriation following his premature
termination, Feliciano claimed from AMA and
lnvictus Shipping the payment of his salaries and
benefits for the unserved portion of the contract.
AMA denied liability on the ground that it no
longer had an agency agreement with lnvictus
Shipping. Is AMA correct? Explain your answer.
(3%)
B.
As a rule, direct hiring of migrant workers is not
allowed. What are the exceptions? Explain your
answer. (2.5%)
C.
Phil, a resident alien, sought employment in the
Philippines. The employer, noticing that Phil was a
foreigner, demanded that he first secures an
employment permit from the DOLE. Is the
employer correct? Explain your answer. (2.5%)
IV.
The Regional Tripartite Wages and Productivity
Board (RTWPB) for Region 3 issued a wage order
on November 2, 2017 fixing the minimum wages
for all industries throughout Region 3.
(a) Is the wage order subject to the approval of the
National Wages and Productivity Commission
before it takes effect? (2%)
(b) The law mandates that no petition for wage
increase shall be entertained within a period of 12
months from the effectivity of the wage order.
Under what circumstances may the Kilusang
Walang Takot, a federation of labor organizations
that publicly and openly assails the wage order as
blatantly unjust, initiate the review of the wage
increases under the wage order without waiting
for the end of the 12-month period? Explain your
answer. (3%)
V.
A.
Percival was a mechanic of Pacific Airlines. He
enjoyed a meal break of one hour. However,
during meal breaks, he was required to be on
stand-by for emergency work. During
emergencies, he was made to forego his meals or
to hurry up eating. He demanded payment of
overtime for work done during his meal periods. Is
Percival correct? Explain your answer. (3%)
B.
Distinguish a learner from an apprentice. (4%)
C.
Are there differences between a househelper and
a homeworker? Explain your answer. (4%)
VI.
A.
One of Pacific Airline's policies was to hire only
single applicants as flight attendants, and
considered as automatically resigned the flight
attendants at the moment they got married. Is the
policy valid? Explain your answer. (2.5%)
B.
Tarcisio was employed as operations manager and
received a monthly salary of ₱25,000.00 through
his payroll account with DB Bank. He obtained a
loan from Roberto to purchase a car. Tarcisio failed
to pay Roberto when the loan fell due. Roberto
sued to collect, and moved to garnish Tarcisio's
payroll account. The latter vigorously objected and
argued that salaries were exempt from
garnishment. Is Tarcisio correct? Explain your
answer. (3%)
VII.
Dr. Crisostomo entered into a retainer agreement
with AB Hotel and Resort whereby he would
provide medical services to the guests and
employees of AB Hoteland Resort, which, in turn,
would provide the clinic premises and medical
supplies. He received a monthly retainer fee of
₱60,000.00, plus a 70% share in the service
charges from AB Hotel and Resort's guests availing
themselves of the clinic's services. The clinic
employed nurses and allied staff, whose salaries,
SSS contributions and other benefits he undertook
to pay. AB Hotel and Resort issued directives giving
instructions to him on the replenishment of
emergency kits and forbidding the clinic staff from
receiving cash payments from the guests.
In time, the nurses and the clinic staff claimed
entitlement to rights as regular employees of AB
Hoteland Resort, but the latter refused on the
ground that Dr. Crisostomo, who was their
employer, was an independent contractor. Rule,
with reasons. (4%)
VIII.
Marciano was hired as Chief Engineer on board the
vessel MN Australia. His contract of employment
was for nine months. After nine months, he was
re-hired. He was hired a third time after another
nine months. He now claims entitlement to the
benefits of a regular employee based on his having
performed tasks usually necessary and desirable to
the employer's business for a continuous period of
more than one year. Is Marciano's claim tenable?
Explain your answer. (3%)
IX.
Section 255 (245) of the Labor Code recognizes
three categories of employees, namely:
managerial, supervisory, and rank-and-file.
(a) Give the characteristics of each category of
employees, and state whether the employees in
each category may organize and form unions.
Explain your answer. (5%)
(b) May confidential employees who assist
managerial employees, and who act in a
confidential capacity or have access to confidential
matters being handled by persons exercising
managerial functions in the field of labor relations
form, or assist, or join labor unions? Explain your
answer. (2.5%)
X.
A.
The labor sector has been loudly agitating for the
end of labor-only contracting, as distinguished
from job contracting. Explain these two kinds of
labor contracting, and give the effect of a finding
that one is a labor-only contractor. Explain your
answers. (4%)
B.
What are the grounds for validly terminating the
services of an employee based on a just cause?
(5%)
C.
Give the procedure to be observed for validly
terminating the services of an employee based on
a just cause? (4%)
XI.
A.
The modes of determining the exclusive bargaining
agent of the employees in a business are: (a)
voluntary recognition; (b) certification election;
and (c) consent election. Explain how they differ
from one another. (4%)
B.
Marcel was the Vice President for Finance and
Administration and a member of the Board of
Directors of Mercedes Corporation. He brought a
complaint for illegal suspension and illegal
dismissal against Mercedes Corporation, which
moved to dismiss the complaint on the ground
that the complaint pertained to the jurisdiction of
the RTC due to the controversy being
intracorporate based on his positions in the
corporation. Marcel countered that he had only
been removed as Vice President for Finance and
Administration, not as a member of the Board of
Directors. He also argued that his position was not
listed as among the corporate offices in Mercedes
Corporation's by-laws. Is the argument of Marcel
correct? Explain your answer. (2.5%)
C.
State the jurisdiction of the Voluntary Arbitrator,
or Panel of Voluntary Arbitrators in labor disputes?
(4%)
XII.
A.
Juanito initiated a case for illegal dismissal against
Mandarin Company. The Labor Arbiter decided in
his favor, and ordered his immediate
reinstatement with full backwages and without
loss of seniority and other benefits. Mandarin
Company did not like to allow him back in its
premises to prevent him from influencing his co-
workers to move against the interest of the
company; hence, it directed his payroll
reinstatement and paid his full backwages and
other benefits even as it appealed to the NLRC.
A few months later, the NLRC reversed the ruling
of the Labor Arbiter and declared that Juanito's
dismissal was valid. The reversal ultimately
became final.
May Mandarin Company recover the backwages
and other benefits paid to Juanito pursuant to the
decision of the Labor Arbiter in view of the
reversal by the NLRC? Rule, with reasons. (2.5%)
B.
Gene is a married regular employee of Matibay
Corporation. The employees and Matibay
Corporation had an existing CBA that provided for
funeral or bereavement aid of ₱15,000.00 in case
of the death of a legal dependent of a regular
employee. His widowed mother, who had been
living with him and his family for many years, died;
hence, he claimed the funeral aid. Matibay
Corporation denied the claim on the basis that she
had not been his legal dependent as the term legal
dependent was defined by the Social Security Law.
(a) Who may be the legal dependents of Gene
under the Social Security Law? (2.5%)
(b) Is Gene entitled to the funeral aid for the death
of his widowed mother? Explain your answer. (2%)
C.
Rosa was granted vacation leave by her employer
to spend three weeks in Africa with her family.
Prior to her departure, the General Manager of the
company requested her to visit the plant of a client
of the company in Zimbabwe in order to derive
best manufacturing practices useful to the
company. She accepted the request because the
errand would be important to the company and
Zimbabwe was anyway in her itinerary. It appears
that she contracted a serious disease during the
trip. Upon her return, she filed a claim for
compensation, insisting that she had contracted
the disease while serving the interest of her
employer.
 (b) What are the consequences of the assumption
Under the Labor Code, the sickness or death of an of jurisdiction by the Secretary of Labor, and of the
employee, to be compensable, must have resulted disobedience to the return to work? Explain your
from an illness either definitely accepted as an answer. (2.5%)
occupational disease by the Employees'
Compensation Commission, or caused by
employment subject to proof that the risk of
contracting the same is increased by working
conditions.

Is the serious disease Rosa contracted during her

trip to Africa compensable? Explain your answer
(2.5%)

XIII.
A.
Given that the liability for an illegal strike is
individual, not collective, state when the
participating union officers and members may be
terminated from employment because of the
illegal strike. Explain your answer. (4%)

B.
A sympathetic strike is stoppage of work to make
common cause with other strikers in another
establishment or business. Is the sympathetic
strike valid? Explain your answer. (1%)

C.
Due to business recession, Ballistic Company
retrenched a part of its workforce. Opposing the
retrenchment, some of the affected employees
staged a strike. Eventually, the retrenchment was
found to be justified, and the strike was declared
illegal; hence, the leaders of the strike, including
the retrenched employees, were declared to have
lost their employment status.

Are the striking retrenched employees still entitled

to separation pay under Sec. 298 (283) of
the Labor Code despite the illegality of their
strike? Explain your answer. (2%)

XIV.
Pursuant to his power under Sec. 278(g) (263(g)) of
the Labor Code, the Secretary of Labor assumed
jurisdiction over the 3-day old strike in Armor Steel
Plates, Inc., one of the country's bigger
manufacturers of steel plates, and ordered all the
striking employees to return to work. The striking
employees ignored the order to return to work.
(a) What conditions may justify the Secretary of
Labor to assume jurisdiction? (2.5%)
I.
A priority thrust of the Administration is the
change of the form of government from unitary to
federal. The change can be effected only through
constitutional amendment or revision.

(a) What are the methods of amending the

Constitution? Explain briefly each method. (3%)

(b) Cite at least three provisions of the

Constitution that need to be amended or revised
to effect the change from unitary to federal, and
briefly explain why? (3%)

II.
A.
Under the doctrine of immunity from suit, the
State cannot be sued without its consent. How
may the consent be given by the State? Explain
your answer. (3%)

B.
The doctrine of immunity from suit in favor of the
State extends to public officials in the performance
of their official duties. May such officials be sued
nonetheless to prevent or to undo their oppressive
or illegal acts, or to compel them to act? Explain
your answer. (3%)

C.
Do government-owned or -controlled corporations
also enjoy the immunity of the State from suit?
Explain your answer. (3%)

III.
State A and State B, two sovereign states, enter
into a 10-year mutual defense treaty. After five
years, State A finds that the more progressive
State B did not go to the aid of State A when it was
threatened by its strong neighbor State C. State B
reasoned that it had to be prudent and deliberate
in reacting to State C because of their existing
trade treaties.

(a) May State A now unilaterally withdraw from its

mutual defense treaty with State B? Explain your
answer. (2.5%)

(b) What is the difference between the principles

of pacta sunt servanda and rebus sic stantibus in
international law? (2.5%)

POLITICAL LAW (2017)

(c) Are the principles of pacta sunt
servanda and rebus sic stantibus relevant in the
treaty relations between State A and State B?
What about in the treaty relations between State B
and State C? Explain your answer. (2.5%)
IV.
A.
What is the pardoning power of the President
under Art. VIII, Sec. 19 of the Constitution?
Is the exercise of the power absolute? (4%)
B.
Distinguish pardon from amnesty. (4%)
V.
(a) What is the right of legation, and how is it
undertaken between states? Explain your answer.
(2%)
(b) Under this right, may a country like Malaysia
insist that the Philippines establishes a consulate in
Sabah to look after the welfare of the Filipino
migrants in the area? Explain your answer. (2%)
VI.
A.
The President appoints the Vice President as his
Administration's Housing Czar, a position that
requires the appointee to sit in the Cabinet.
Although the appointment of the members of the
Cabinet requires confirmation by the Commission
on Appointment (CA), the Office of the President
does not submit the appointment to the CA. May
the Vice President validly sit in the Cabinet? (2.5%)
B.
The Executive Department has accumulated
substantial savings from its appropriations.
Needing ₱3,000,000.00 for the conduct of a
plebiscite for the creation of a new city but has no
funds appropriated soon by the Congress for the
purpose, the COMELEC requests the President to
transfer funds from the savings of the Executive
Department in order to avoid a delay in the
holding of the plebiscite.
May the President validly exercise his power under
the 1987 Constitution to transfer funds from the
savings of the Executive Department, and make a
cross-border transfer of ₱3,000,000.00 to the
COMELEC by way of augmentation? Is your answer
the same if the transfer is treated as aid to the
COMELEC? Explain your answer. (4%)
VII.
Give the limitations on the power of the Congress
to enact the General Appropriations Act? Explain
your answer. (5%)
VIII.
A bank acquired a large tract of land as the highest
bidder in the foreclosure sale of the mortgaged
assets of its borrower. It appears that the land has
been originally registered under the Torrens
system in 1922 pursuant to the provisions of the
Philippine Bill of 1902, the organic act of the
Philippine Islands as a colony of the USA. Sec. 21 of
the Philippine Bill of 1902 provided that "all
valuable mineral deposits in public lands in the
Philippine Islands, both surveyed and unsurveyed,
are hereby declared to be free and open to
exploration, occupation and purchase, and the
land in which they are found to occupation and
purchase, by citizens of the United States, or of
said Islands." Sec. 27 of the law declared that a
holder of the mineral claim so located was entitled
to all the minerals that lie within his claim, but he
could not mine outside the boundary lines of his
claim.
The 1935 Constitution expressly prohibited the
alienation of natural resources except agricultural
lands. Sec. 2, Art. XII of the 1987 Constitution
contains a similar prohibition, and proclaims that
all lands of the public domain, waters, minerals,
coal, petroleum, and other mineral oils, all forces
of potential energy, fisheries, forests or timber,
wildlife, flora and fauna, and other natural
resources are owned by the State. This provision
enunciates the Regalian Doctrine.
May the Government, on the basis of the Regalian
Doctrine enunciated in the constitutional
provisions, deny the bank its right as owner to the
mineral resources underneath the surface of its
property as recognized under the Philippine Bill of
1902? Explain your answer. (5%)
IX.
A.
Ambassador Robert of State Alpha committed a
very serious crime while he headed his foreign
mission in the Philippines. Is he subject to arrest by
Philippine authorities? Explain your answer. (3%)
B.
Extradition is the process pursuant to a treaty
between two State parties for the surrender by the
requested State to the custody of the requesting
State of a fugitive criminal residing in the former.
However, extradition depends on the application
of two principles - the principle of specialty and
the dual criminality principle. Explain these
principles. (4%)
C.
The President signs an agreement with his
counterpart in another country involving
reciprocity in the treatment of each country's
nationals residing in the other's territory.
However, he does not submit the agreement to
the Senate for concurrence.
Sec. 21, Art. VII of the Constitution provides that
no treaty or international agreement shall be valid
and effective without such concurrence.
Is the agreement signed by the President effective
despite the lack of Senate concurrence? Explain
your answer. (4%)
X.
A.
Under the enrolled bill doctrine, the signing of a
bill by both the Speaker of the House of
Representatives and the President of the Senate
and the certification by the secretaries of both
Houses of Congress that the bill was passed on a
certain date are conclusive on the bill's due
enactment. Assuming there is a conflict between
the enrolled bill and the legislative journal, to the
effect that the enrolled bill signed by the Senate
President and eventually approved by the
President turned out to be different from what the
Senate actually passed as reflected in the
legislative journal.
(a) May the Senate President disregard
the enrolled bill doctrine and consider his
signature as invalid and of no effect? (2.5%)
(b) May the President thereafter withdraw his
signature? Explain your answer. (2.5%)
B.
Sec. 26(2), Art. VI of the Constitution provides that
no bill passed by either House of Congress shall
become a law unless it has passed three readings
on separate days and printed copies of it in its final
form have been distributed to the Members of the
House three days before its passage.
Is there an exception to the provision? Explain
your answer. (3%)
XI.
Sec. 17, Art. VI of the Constitution establishes an
Electoral Tribunal for each of the Houses of
Congress, and makes each Electoral Tribunal "the
sole judge of all contests relating to the election,
returns, and qualifications of their respective
Members." On the other hand, Sec. 2(1), C
(Commission on Elections), Art. IX of the
Constitution grants to the COMELEC the power to
enforce and administer all laws and regulations
"relative to the conduct of an election, plebiscite,
initiative, referendum, and recall."
Considering that there is no concurrence of
jurisdiction between the Electoral Tribunals and
the COMELEC, state when the jurisdiction of the
Electoral Tribunals begins, and the COMELEC's
jurisdiction ends. Explain your answer. (4%)
XII.
The Congress establishes by law Philippine Funds,
Inc., a private corporation, to receive foreign
donations coming from abroad during national and
local calamities and disasters, and to enable the
unhampered and speedy disbursements of the
donations through the mere action of its Board of
Directors. Thereby, delays in the release of the
donated funds occasioned by the stringent rules of
procurement would be avoided. Also, the releases
would not come under the jurisdiction of the
Commission on Audit (COA).
(a) Is the law establishing Philippine Funds, Inc.
constitutional? Explain your answer. (3%)
(b) Can the Congress pass the law that would
exempt the foreign grants from the jurisdiction of
the COA? Explain your answer. (3%)
XIII.
Command responsibility pertains to the
responsibility of commanders for crimes
committed by subordinate members of the armed
forces or other persons subject to their control in
international wars or domestic conflicts. The
doctrine has now found application in civil actions
for human rights abuses, and in proceedings
seeking the privilege of the writ of amparo.
(a) What are the elements to be established in
order to hold the superior or commander liable
under the doctrine of command
responsibility? (4%)
(b) May the doctrine of command
responsibility apply to the President for the abuses
of the armed forces (AFP and PNP) given his
unique role as the commander-in-chief of all the
armed forces? Explain your answer. (4%)

XIV.
To fulfill a campaign promise to the poor folk in a
far-flung area in Mindanao, the President
requested his friend, Pastor Roy, to devote his
ministry to them. The President would pay Pastor
Roy a monthly stipend of ₱50,000.00 from his
discretionary fund, and would also erect a modest
house of worship in the locality in an area of the
latter's choice.

Does the President thereby violate any provisions

of the Constitution? Explain your answer. (3%)

XV.
A.
According to Sec. 3, Art. VIII of the Constitution,
the Judiciary shall enjoy fiscal autonomy. What
does the term fiscal autonomy signify? Explain
your answer. (3%)

B.
May a complaint for disbarment against the
Ombudsman prosper during her incumbency?
Explain your answer. (3%)

C.
Sec. 3, Art. XI of the Constitution states that "[n]o
impeachment proceedings shall be initiated
against the same official more than once within a
period of one year."

What constitutes initiation of impeachment

proceedings under the provision? (3%)