Modesto, together with two other men in police
uniform, came with two heavy bags. Modesto
CRIMINAL LAW (2013)
I.
Bruno was charged with homicide for killing the
75-year old owner of his rooming house. The
prosecution proved that Bruno stabbed the owner
causing his death; and that the killing happened at
10 in the evening in the house where the victim
and Bruno lived. Bruno, on the other hand,
successfully proved that he voluntarily
surrendered to the authorities; that he pleaded
guilty to the crime charged; that it was the victim
who first attacked and did so without any
provocation on his (Bruno's) part, but he prevailed
because he managed to draw his knife with which
he stabbed the victim. The penalty for homicide is
reclusion temporal.
Assuming a judgment of conviction and after
considering the attendant circumstances, what
penalty should the judge impose? (7%)
II.
While walking alone on her way home from a
party, Mildred was seized at gun point by Felipe
and taken on board a tricycle to a house some
distance away. Felipe was with Julio, Roldan, and
Lucio, who drove the tricycle.
At the house, Felipe, Julio, and Roldan succeeded
in having sexual intercourse with Mildred against
her will and under the threat of Felipe's gun. Lucio
was not around when the sexual assaults took
place as he left after bringing his colleagues and
Mildred to their destination, but he returned
everyday to bring food and the news in town
about Mildred's disappearance. For five days,
Felipe, Julio and Roldan kept Mildred in the house
and took turns in sexually assaulting her. On the
6th day, Mildred managed to escape; she
proceeded immediately to the nearest police
station and narrated her ordeal.
What crime/s did Felipe, Julio, Roldan, and Lucio
commit and what was their degree of
participation? (7%)
III.
Modesto and Abelardo are brothers. Sometime in
August, 1998 while Abelardo was in his office,
asked Abelardo to keep the two bags in his vault
until he comes back to get them. When Abelardo
later examined the two bags, he saw bundles of
money that, in his rough count, could not be less
than P5 Million. He kept the money inside the
vault and soon he heard the news that a gang that
included Modesto had been engaged in bank
robberies. Abelardo, unsure of what to do under
the circumstances, kept quiet about the two bags
in his vault. Soon after, the police captured, and
secured a confession from, Modesto who admitted
that their loot had been deposited with Abelardo.
What is Abelardo's liability? (7%)
IV.
In her weekly gossip column in a tabloid, Gigi
wrote an unflattering article about Pablo, a famous
singer, and his bitter separation from his wife. The
article portrayed Pablo as an abusive husband and
caused him to lose lucrative endorsement
contracts. Pablo charged Gigi with libel. In her
defense, Gigi countered that she did not commit
libel because Pablo has attained the status of a
public figure so that even his personal life has
become a legitimate subject of public interest and
comment.
Is Gigi correct? (7%)
V.
Michael was 17 years old when he was charged for
violation of Sec. 5 of R.A. 9165 (illegal sale of
prohibited drug). By the time he was convicted and
sentenced, he was already 21 years old. The court
sentenced him to suffer an indeterminate penalty
of imprisonment of six (6) years and one (1) day of
prision mayor, as minimum, to seventeen (17)
years and four(4) months of reclusion temporal, as
maximum, and a fine of P500,000.Michael applied
for probation but his application was denied
because the probation law does not apply to drug
offenders under R.A. 9165. Michael then sought
the suspension of his sentence under R.A. 9344 or
the Juvenile Justice and Youth Welfare Code.
Can Michael avail of the suspension of his
sentence provided under this law? (7%)
VI.
Roberto bought a Toyota Fortuner from Iñigo for
P500,000. While driving his newly-bought car,
Roberto met a minor accident that made the
examination of his vehicle's Registration Certificate
necessary. When the policeman checked the plate,
chassis and motor numbers of the vehicle against
those reflected in the Registration Certificate, he
found the chassis and motor numbers to be
different from what the Registration Certificate
stated. The Deed of Sale covering the sale of the
Fortuner, signed by Iñigo, also bore the same
chassis and motor numbers as Roberto's
Registration Certificate. The chassis and motor
numbers on the Fortuner were found, upon
verification with the Land Transportation Office, to
correspond to a vehicle previously reported as
carnapped.
Roberto claimed that he was in good faith; Iñigo
sold him a carnapped vehicle and he did not know
that he was buying a carnapped vehicle.
If you were the prosecutor, would you or would
you not charge Roberto with a crime? (7%)
VII.
Miss Reyes, a lady professor, caught Mariano, one
of her students, cheating during an examination.
Aside from calling Mariano's attention, she
confiscated his examination booklet and sent him
out of the room, causing Mariano extreme
embarrassment.
In class the following day, Mariano approached
Miss Reyes and without any warning, slapped her
on the face. Mariano would have inflicted grave
injuries on Miss Reyes had not Dencio, another
student, intervened. Mariano then turned his ire
on Dencio and punched him repeatedly, causing
him injuries.
What crime or crimes, if any, did Mariano commit?
(7%)
VIII.
William is the son-in-law of Mercedes who owns
several pieces of real property. In 1994, William's
wife, Anita, died. In 1996, William caused the
preparation of a Special Power of Attorney (SPA)
giving him the authority to sell two (2) parcels of
land registered in the name of Mercedes. The
signature of Mercedes in the SPA was forged and,
through this forged SPA and without the consent
and knowledge of Mercedes, William succeeded in
selling the two (2) parcels for Php 2,000,000. He
pocketed the proceeds of the sale.
Mercedes eventually discovered William's
misdeeds and filed a criminal complaint. William
was subsequently charged with estafa through
falsification of public document.
Was the criminal charge proper? (7%)
IX.
Roman and Wendy are neighbors. On Valentine's
Day, without prior notice, Roman visited Wendy at
her condo to invite her to dinner, but Wendy
turned him down and abruptly left, leaving her
condo door unlocked. Roman attempted to follow,
but appeared to have second thoughts; he simply
went back to Wendy's condo, let himself in, and
waited for her return. On Wendy's arrival later that
evening, Roman grabbed her from behind and,
with a knife in hand, forced her to undress. Wendy
had no choice but to comply. Roman then tied
Wendy's hands to her bed and sexually assaulted
her five (5) times that night.
Roman was charged with, and was convicted of,
five (5) counts of rape, but the judge did not
impose the penalty of reclusion perpetua for each
count. Instead, the judge sentenced Roman to 40
years of imprisonment on the basis of the three-
fold rule.
Was the judge correct? (7%)
X.
Frank borrowed P1,000,000 from his brother Eric.
To pay the loan, Frank issued a post-dated check
to be presented for payment a month after the
transaction. Two days before maturity, Frank
called Eric telling him he had insufficient funds and
requested that the deposit of the check be
deferred. Nevertheless, Eric deposited the check
and it was dishonored. When Frank failed to pay
despite demand, Eric filed a complaint against him
for violation of Batas Pambansa Big. 22 (The
Bouncing Checks Law).
Was the charge brought against Frank correct?
(7%)
XI.
Assume that you are a member of the legal staff of
Senator Salcedo who wants to file a bill about
imprisonment at the National Penitentiary in
Muntinlupa. He wants to make the State prison a
revenue earner for the country through a law
providing for premium accommodations for
prisoners (other than those under maximum
security status) whose wives are allowed conjugal
weekend visits, and for those who want long-term
premium accommodations.
For conjugal weekenders, he plans to rent out
rooms with hotel-like amenities at rates equivalent
to those charged by 4-star hotels; for long-term
occupants, he is prepared to offer room and board
with special meals in air conditioned single-
occupancy rooms, at rates equivalent to those
charged by 3-star hotels.
What advice will you give the Senator from the
point of view of criminal law, taking into account
the purpose of imprisonment (7%) and
considerations of ethics and morality (3%)? (10%
total points)
MULTIPLE CHOICE QUESTIONS
I. The acquittal of an accused shall bar the civil
action arising from the crime where the judgment
of acquittal holds that __________. (0.5%)
(A) the acquittal is based on reasonable doubt
(B) the liability of the accused is not criminal but
civil in nature
(C) the civil liability does not arise from or is not
based on the criminal act for which the accused
has been acquitted
(D) the accused did not commit the act imputed to
him
II. Subsidiary liability may be imposed on the
following, except __________. (0.5%)
(A) innkeepers, in relation to the crime committed
in their establishment
(B) employers engaged in industry, for the crime
committed by their employees
(C) parents of minors who act with discernment in
committing crimes
(D) hospital administrators or owners, for crimes
committed by their hospital nurses
III. Passion or obfuscation may be appreciated
__________. (0.5%)
(A) if it arises from jealousy in an amorous
relationship between a married man and a single
woman
(B) if it arises from jealousy of a man who has been
living-in with the woman for the past 20 years
(C) if it arises from jealousy with immoral, lustful
and vindictive sentiments of the offender against
the victim
(D) in none of the above situations
IV. Who among the following accused is entitled to
a privileged mitigating circumstance that would
lower the imposable penalty by one degree?
(0.5%)
(A) A minor above 15 years old and below 18 years
old who acted with discernment.
(B) One who, in fulfillment of his duty to carry out
the warrant of arrest of a fugitive, shot the fugitive
to death without ascertaining his identity.
(C) One who defended himself against an unlawful
aggression but used unreasonable means and gave
provocation.
(D) All of the above.
V. Conspiracy to commit a felony is punishable
only in cases where the law specifically provides a
penalty. Which of the following combinations
contain specific felonies under the Revised Penal
Code? (0.5%)
(A) Conspiracy to commit treason, conspiracy to
commit rebellion, conspiracy to commit coup
d'etat, conspiracy to commit misprision of treason.
(B) Conspiracy to commit rebellion, conspiracy to
commit coup d'etat, conspiracy to commit treason,
conspiracy to commit sedition.
(C) Conspiracy to commit rebellion or insurrection,
conspiracy to commit sedition, conspiracy to
commit illegal assemblies, conspiracy to commit
treason.
(D) Conspiracy to commit treason, conspiracy to
commit sedition, conspiracy to commit terrorism.
(E) None of the above.
VI. Choose the correct circumstance when a
woman may be held liable for rape: (0.5%)
(A) With the use of force or intimidation.
(B) When the rape is committed by two or more
persons.
(C) When the offender uses an instrument and
inserts it m the mouth of the victim.
(D) When she befriends and puts a sleeping pill in
the victim's drink to enable her husband to have
intercourse with the victim.
VII. The death of the accused extinguishes his
criminal liability but civil liability is not
extinguished. (0.5%)
(A) when the death of the accused occurred before
conviction
(B) when the death of the accused occurred after
conviction and after he has perfected his appeal
from conviction
(C) when the death of the accused occurred during
the pendency of his appeal
(D) when the death of the accused occurred after
final judgment
(E) None of the above.
VIII. Compelling the pilot of an aircraft of Philippine
Registry to change its destination is __________.
(0.5%)
(A) grave coercion
(B) a violation of the Anti-Hijacking Law or R.A. No.
6235
(C) grave threats
(D) a violation of the Human Security Act of 2007
or the Anti-Terrorism Law
(E) All of the above.
IX. Choose from the list below the correct principle
in considering "motive". (0.5%)
(A) If the evidence is merely circumstantial, proof
of motive is essential.
(B) Generally, proof of motive is not necessary to
pin a crime on the accused if the commission of
the crime has been proven and the evidence of
identification is convincing.
(C) Motive is important to ascertain the truth
between two antagonistic theories.
(D) Motive is relevant if the identity of the accused
is uncertain.
(E) All of the above are correct.
X. Luis was sentenced to prision mayor and to pay
a fine of P50,000, with subsidiary imprisonment in
case of in solvency. Is the sentence correct? (0.5%)
(A) Yes, because Luis has no property to pay for
the fine, so he must suffer the equivalent
imprisonment provided by law in lieu of fine.
(B) No, because subsidiary imprisonment is
applicable only when the penalty imposed is
prision correccional or below.
(C) Yes, because the sentence says so.
(D) No, because the subsidiary imprisonment is
applicable only when the penalty imposed is
limited to a fine.
(E) None of the above.
XI. Anthony drew a promissory note and asked his
tem1inally-ill and dying business partner Ben to
sign it. The promissory note bound Ben to pay
Anthony One Million Pesos (P1,000,000) plus 12%
interest, on or before June 30, 2011.
If Ben died before the promissory note's due date
and Anthony still collected P1,000,000 with
interest from Ben's estate, what crime/s did
Anthony commit? (1%)
(A) Falsification of a public document.
(B) Falsification of a private document and estafa.
(C) Estafa.
(D) Estafa thru falsification of a private document.
(E) None of the above.
XII. Out of spite and simply intending to put Gina
to shame for breaking off with him, Ritchie
emptied a gallon of motor oil on the school's
stairway where Gina usually passed. Gina,
unaware of what Ritchie did, used the slippery
stairway and slipped, hitting her head on the stairs.
Gina died from brain hemorrhage.
What crime did Ritchie commit? (1%)
(A) Murder.
(B) Reckless imprudence resulting in homicide.
(C) Homicide.
(D) Impossible crime of homicide.
(E) None.
XIII. Santos was sentenced to suffer imprisonment
in three separate judgments: 6 months and 1 day
to 4 years for attempted homicide; 6 yearsand1day
to 8 years for frustrated homicide; and 6 years
and1day to20years for homicide. After his 20th
year in the National Penitentiary, Santos filed a
petition for habeas corpus claiming that he had
fully served his sentence of 20 years and should
therefore be immediately released from
imprisonment.
Was Santos correct? (1%)
(A) Yes, because he served his sentences
simultaneously so that his 20 years of
incarceration was sufficient.
(B) No, because multiple sentences are served
successively not simultaneously.
(C) No, only penalties other than imprisonment
can be served simultaneously.
(D) Yes, because after he has served the minimum
of his penalties, he can now be released.
XIV. Amelia, a famous actress, bought the
penthouse unit of a posh condominium building in
Taguig City. Every night, Amelia would swim naked
in the private, but open air, pool of her penthouse
unit. It must have been obvious to Amelia that she
could be seen from nearby buildings. In fact, some
residents occupying the higher floors of the nearby
residential buildings did indeed entertain
themselves and their friends by watching her swim
in the nude from their windows.
What crime did Amelia commit? (1%)
(A) Alarms and scandals because her act of
sw1mmmg naked disturbs the public tranquility.
(B) Grave scandal because she committed highly
scandalous acts that are offensive to decency or
good customs.
(C) Immoral doctrines, obscene publications and
exhibitions, and indecent shows under Article 201
of the Revised Penal Code, because her act of
swimming naked is akin to an indecent live show.
(D) Amelia did not commit any crime because the
swimming pool is located in her private home.
XV. After drinking a bottle of Jack Daniels, Jonjon
drove his BMW sports car at high speed, rammed
into a group of crossing pedestrians, and hit a
traffic light post. The incident caused the death of
one (1) pedestrian, serious injuries to three (3)
others, and the destruction of the traffic light post.
If you were the prosecutor, what would you
charge Jonjon? (1%)
(A) Homicide with serious physical injuries through
simple negligence.
(B) Damage to property, serious physical injuries
and homicide through reckless negligence.
(C) Simple negligence resulting in damage to
property, serious physical injuries and homicide.
(D) Reckless imprudence resulting in homicide,
serious physical injuries and damage to property.
XVI. On June 1, 2011, Efren bought a used top-of-
the-line Mercedes Benz for P7.5 Million from
Switik Trading. On the same day, he paid
P2,500,000 in cash and issued Switik Trading a
check for P5,000,000 dated July 31, 2011. He then
brought the car to a friend's house and hid it in an
underground garage. The check Efren issued was
dishonored for insufficiency of funds when
presented for payment on due date. Efren was
asked to honor and pay the check or to return the
car, but he refused.
What crime/s did Efren commit? (1%)
(A) Carnapping.
(B) Estafa and carnapping.
(C) A violation of BP Blg. 22.
(D) Estafa and a violation of BP Blg. 22.
(E) None of the above.
XVII. In his Answer to a complaint, Atty. Jose
(counsel for the defendant) stated that Atty.
Agrada (counsel for the plaintiff) is "bobo, inutile,
good for nothing, stupid, and a menace to clients."
Can Atty. Jose be held criminally liable for libel?
(1%)
(A) No, because an Answer to a complaint is a
court pleading where communications made are
privileged; the writer cannot be held liable for
libel.
(B) Yes, because the statement casts aspersion on
the character, integrity and reputation of Atty.
Agrada as a lawyer and exposed him to public
ridicule.
(C) Yes, although a court pleading is a privileged
communication, malicious statements that are
irrelevant and impertinent to the issue in the
pleading may be libelous.
(D) Yes, there was a malicious intent to ridicule
Atty. Agrada as a lawyer.
(E) No, because the statement is in a pleading, but
Atty. Jose can be charged administratively for
misconduct before the Supreme Court.
XVIII. Using his charms because of his movie star
looks, Phil, in a movie date with Lyn, a 19-year old
colegiala, kissed her on the cheek and stroked her
pubic hair. Lyn shouted for help and Phil was
arrested. Phil is liable for __________. (1%)
(A) rape by sexual assault for using his fingers
(B) violation of the Anti-Child Abuse Law for
lascivious conduct
(C) unjust vexation
(D) acts of lasciviousness
(E) None of the above.

XIX. If Rod killed Irene, his illegitimate daughter,
after taking her diamond earrings and forcing her
to have sex with him, what crime/s should Rod be
charged with? (1%)
(A) Robbery and rape with parricide.
(B) Robbery, rape and parricide.
(C) Rape with homicide and theft.
(D) Rape with homicide.
(E) None of the above.
XX. From an extension line, Ricardo overheard a
telephone conversation between Julito and Atty.
Hipolito. The latter (Atty. Hipolito) was asking
money from Julito in exchange for dropping the
extortion charge filed against Julito. Ricardo was
charged of violating the Anti-Wire Tapping Act or
R.A. 4200.
Under these facts, was there a violation as
charged? (1%)
(A) Yes, because the conversation was private in
nature.
(B) Yes, because the conversation was overheard
without the consent of the parties, Julito and Atty.
Hipolito.
(C) No, because what is punishable is intentional
listening to a conversation through a wire.
(D) No, because a telephone extension line is not
the device or arrangement contemplated by the
law and the use of an extension line cannot be
considered as wire tapping.
(E) None of the above.
XXI. Judge Talim, upon complaint and application
of the realty corporation Batmanson, Inc., issued a
writ of preliminary injunction against Darjeeling
Ventures, Inc., a competitor of Batmanson, Inc.,
without notice and hearing.
If you were counsel for Darjeeling Ventures, Inc.,
what criminal charge should you file against Judge
Talim? (1%)
(A) Rendering a manifestly unjust judgment.
(B) Knowingly rendering an unjust interlocutory
order.
(C) Causing undue injury through manifest
partiality under R.A. No. 3019.
(D) Bribery.
(E) None of the above.
XXII. George, the 20-year old son of a rich
politician, was arrested at the NAIA arrival lounge
and found positive for opium, a dangerous drug.
When arrested, 15 grams of cocaine were found in
his backpack.
What offense would you charge George under R.A.
No. 9160 (Comprehensive Dangerous Drugs Act)?
(1%)
(A) Use of dangerous drug.
(B) Use and possession of dangerous drugs.
(C) Possession of dangerous drugs.
(D) Importation of dangerous drugs.
(E) None of the above.
XXIII. During a military uprising aimed at ousting
the duly constituted authorities and taking over
the government, General Tejero and his men
forcibly took over the entire Rich Hotel which they
used as their base. They used the rooms and other
facilities of the hotel, ate all the available food
they found, and detained some hotel guests.
What crime did General Tejero and his men
commit? (1%)
(A) Rebellion complexed with serious illegal
detention and estafa.
(B) Rebellion.
(C) Coup d'etat.
(D) Terrorism.
(E) None of the above.
XXIV. Andres was convicted of frustrated homicide
and was sentenced to 6 years and 1 day as
minimum, to 8 years of prision mayor as
maximum. Andres appealed his conviction to the
Court of Appeals, which convicted him of
attempted homicide, and sentenced him to 6
months of arresto mayor as minimum, to4years of
prision correccional as maximum.
Instead of appealing his conviction, Andres filed an
application for probation with the Regional Trial
Court. Is Andres qualified to avail of the benefits of
the probation law? (1%)
(A) No, because when he filed a notice of appeal
with the Court of Appeals, he waived his right
under the probation law.
(B) Yes, because after his appeal, he qualified for
probation as the sentence imposed on him was
less than6years.
(C) Yes, because the probation law is meant to
favor the accused.
(D) No, because his previous sentence of more
than 6 years disqualified him so that he can no
longer avail of probation as an alternative remedy.
(E) None of the above.

XXV. Juancho owns a small piggery in Malolos,

Bulacan. One Saturday afternoon, he discovered
that all his pigs had died. Suspecting that one of his
neighbours had poisoned the pigs, Juancho went
home, took his rifle, went around the
neighbourhood, and fired his rifle in the air while
shouting, "makakatikim sa akin ang naglason ng
mga baboy ko." Barangay officials requested police
assistance and Juancho was apprehended. Juancho
was charged with and convicted of the crime of
alarms and scandals. Juancho did not appeal his
conviction.

Is Juancho qualified for probation? (1%)

(A) Yes, because the penalty for alarms and

scandals is less than six (6) years.
(B) Yes, because Juancho did not appeal his
conviction.
(C) No, because the crime of alarms and scandals
carries with it a fine of P200.
(D) No, because the crime of alarms and scandals
affects public order.
(E) None of the above.
CIVIL LAW (2013) I.
You are a Family Court judge and before you is a
Petition for the Declaration of Nullity of Marriage
(under Article 36 of the Family Code) filed by Maria
against Neil. Maria claims that Neil is
psychologically incapacitated to comply with the
essential obligations of marriage because Neil is a
drunkard, a womanizer, a gambler, and a mama's
boy- traits that she never knew or saw when Neil
was courting her. Although summoned, Neil did
not answer Maria's petition and never appeared in
court.

To support her petition, Maria presented three

witnesses- herself, Dr. Elsie Chan, and Ambrosia.
Dr. Chan testified on the psychological report on
Neil that she prepared. Since Neil never
acknowledged n9r responded to her invitation for
interviews, her report is solely based on her
interviews with Maria and the spouses' minor
children. Dr. Chan concluded that Neil is suffering
from Narcissistic Personality Disorder, an ailment
that she found to be already present since Neil's
early adulthood and one that is grave and
incurable. Maria testified on the specific instances
when she found Neil drunk, with another woman,
or squandering the family's resources in a casino.
Ambrosia, the spouses' current household help,
corroborated Maria's testimony.

On the basis of the evidence presented, will you

grant the petition? (8%)

II.
A collision occurred at an intersection involving a
bicycle and a taxicab. Both the bicycle rider (a
businessman then doing his morning exercise) and
the taxi driver claimed that the other was at fault.
Based on the police report, the bicycle crossed the
intersection first but the taxicab, crossing at a fast
clip from the bicycle's left, could not brake in time
and hit the bicycle's rear wheel, toppling it and
throwing the bicycle rider into the sidewalk 5
meters away.

The bicycle rider suffered a fractured right knee,

sustained when he fell on his right side on the
concrete side walk. He was hospitalized and was
subsequently operated on, rendering him
immobile for 3 weeks and requiring physical
rehabilitation for another 3 months. In his
complaint for damages, the rider prayed for the
award of P1,000,000 actual damages, P200,000
moral damages, P200,000 exemplary damages, P1
00,000 nominal damages and P50,000 attorney's
fees.
Assuming the police report to be correct and as
the lawyer for the bicycle rider, what evidence
(documentary and testimonial) and legal
arguments will you present in court to justify the
damages that your client claims? (8%)
III.
Sergio is the registered owner of a 500-square
meter land. His friend, Marcelo, who has long been
interested in the property, succeeded in
persuading Sergio to sell it to him. On June 2,
2012, they agreed on the purchase price
of P600,000 and that Sergio would give Marcelo up
to June30, 2012 within which to raise the amount.
Marcelo, in a light tone usual between them, said
that they should seal their agreement through a
case of Jack Daniels Black and P5,000 "pulutan"
money which he immediately handed to Sergio
and which the latter accepted. The friends then sat
down and drank the first bottle from the case of
bourbon.
On June 15, 2013, Sergio learned of another buyer,
Roberto, who was offering P800,000 in ready cash
for the land. When Roberto confirmed that he
could pay in cash as soon as Sergio could get the
documentation ready, Sergio decided to withdraw
his offer to Marcelo, hoping to just explain matters
to his friend. Marcelo, however, objected when
the withdrawal was communicated to him, taking
the position that they have a firm and binding
agreement that Sergio cannot simply walk away
from because he has an option to buy that is duly
supported by a duly accepted valuable
consideration.
(A) Does Marcelo have a cause of action against
Sergio? (5%)
(B) Can Sergio claim that whatever they might
have agreed upon cannot be enforced because any
agreement relating to the sale of real property
must be supported by evidence in writing and they
never reduced their agreement to writing? (3%)
IV.
Anselmo is the registered owner of a land and a
house that his friend Boboy occupied for a nominal
rental and on the condition that Boboy would
vacate the property on demand. With Anselmo's
knowledge, Boboy introduced renovations
consisting of an additional bedroom, a covered
veranda, and a concrete block fence, at his own
expense.
Subsequently, Anselmo needed the property as his
residence and thus asked Boboy to vacate and turn
it over to him. Boboy, despite an extension, failed
to vacate the property, forcing Anselmo to send
him a written demand to vacate.
In his own written reply, Boboy signified that he
was ready to leave but Anselmo must first
reimburse him the value of the improvements he
introduced on the property as he is a builder in
good faith. Anselmo refused, insisting that Boboy
cannot ask for reimbursement as he is a mere
lessee. Boboy responded by removing the
improvements and leaving the building in its
original state.
(A) Resolve Boboy's claim that as a builder in good
faith, he should be reimbursed the value of the
improvements he introduced. (4%)
(B) Can Boboy be held liable for damages for
removing the improvements over Anselmo's
objection? (4%)
V.
Josefa executed a deed of donation covering a
one-hectare rice land in favor of her daughter,
Jennifer. The deed specifically provides that:
"For and in consideration of the love and service
Jennifer has shown and given to me, I hereby
freely, voluntarily and irrevocably donate to her
my one-hectare rice land covered by TCT No.
11550, located in San Fernando, Pampanga. This
donation shall take effect upon my death."
The deed also contained Jennifer's signed
acceptance, and an attached notarized declaration
by Josefa and Jennifer that the land will remain in
Josefa's possession and cannot be alienated,
encumbered, sold or disposed of while Josefa is
still alive.
Advise Jennifer on whether the deed is a donation
inter vivos or mortis causa and explain the reasons
supporting your advice. (8%)
VI.
Lito obtained a loan of P1,000,000 from Ferdie,
payable within one year. To secure payment, Lito
executed a chattel mortgage on a Toyota Avanza
and a real estate mortgage on a 200-square meter
piece of property.
(A) Would it be legally significant - from the point
of view of validity and enforceability - if the loan
and the mortgages were in public or private
instruments? (6%)
(B) Lito's failure to pay led to the extra-judicial
foreclosure of the mortgaged real property. Within
a year from foreclosure, Lito tendered a manager's
check to Ferdie to redeem the property. Ferdie
refused to accept payment on the ground that he
wanted payment in cash: the check does not
qualify as legal tender and does not include the
interest payment. Is Ferdie's refusal justified? (4%)
VII.
In 2005, Andres built a residential house on a lot
whose only access to the national highway was a
pathway crossing Brando's property. Andres and
others have been using this pathway (pathway A)
since 1980.
In 2006, Brand0 fenced off his property, thereby
blocking Andres' access to the national highway.
Andres demanded that part of the fence be
removed to maintain his old access route to the
highway (pathway A), but Brando refused, claiming
that there was another available pathway
(pathway B) for ingress and egress to the highway.
Andres countered that pathway B has defects, is
circuitous, and is extremely inconvenient to use.
To settle their dispute, Andres and Brando hired
Damian, a geodetic and civil engineer, to survey
and examine the two pathways and the
surrounding areas, and to determine the shortest
and the least prejudicial way through the servient
estates. After the survey, the engineer concluded
that pathway B is the longer route and will need
improvements and repairs, but will not
significantly affect the use of Brando's property.
On the other hand, pathway A that had long been
in place, is the shorter route but would
significantly affect the use of Brando's property.
In light of the engineer's findings and the
circumstances of the case, resolve the parties'
right of way dispute. (6%)
VIII.
Ciriaco Realty Corporation (CRC) sold to the
spouses Del a Cruz a500-square meter land (Lot A)
in Paranaque. The land now has a fair market value
of Pl,200,000. CRC likewise sold to the spouses
Rodriguez, a 700-square meter land (Lot B) which
is adjacent to Lot A. Lot B has a present fair market
value of P1,500,000.
The spouses Dela Cruz constructed a house on Lot
B, relying on there presentation of the CRC sales
agent that it is the property they purchased. Only
upon the completion of their house did the
spouses Dela Cruz discover that they had built on
Lot B owned by the spouses Rodriguez, not on Lot
A that they purchased. They spent P 1 000,000 for
the house.
As their lawyer, advise the spouses Dela Cruz on
their rights and obligations under the given
circumstances, and the recourses and options
open to them to protect their interests. (8%)
IX.
Rica petitioned for the annulment of her ten-year
old marriage to Richard. Richard hired Atty. Cruz to
represent him in the proceedings. In payment for
Atty. Cruz's acceptance and legal fees, Richard
conveyed to Atty. Cruz a parcel of land in Taguig
that he recently purchased with his lotto winnings.
The transfer documents were duly signed and Atty.
Cruz immediately took possession by fencing off
the property's entire perimeter.
Desperately needing money to pay for his
mounting legal fees and his other needs and
despite the transfer to Atty. Cruz, Richard offered
the same parcel of land for sale to the spouses
Garcia. After inspection of the land, the spouses
considered it a good investment and purchased it
from Richard. Immediately after the sale, the
spouses Garcia commenced the construction of a
three-story building over the land, but they were
prevented from doing this by Atty. Cruz who
claimed he has a better right in light of the prior
conveyance in his favor.
Is Atty. Cruz's claim correct? (8%)
X.
Manuel was born on 12 March 1940 in a 1 000-
square meter property where he grew up helping
his father, Michael, cultivate the land. Michael has
lived on the property since the land was opened
for settlement at about the time of the
Commonwealth government in 193 5, but for
some reason never secured any title to the
property other than a tax declaration in his name.
He has held the property through the years in the
concept of an owner and his stay was uncontested
by others. He has also conscientiously and
continuously paid the realty taxes on the land.
Michael died in 2000 and Manuel - as Michael’s
only son and heir -now wants to secure and
register title to the land in his own name. He
consults you for legal advice as he wants to perfect
his title to the land and secure its registration in his
name.
(A) What are the laws that you need to consider in
advising Manuel on how he can perfect his title
and register the land in his name? Explain the
relevance of these laws to your projected course
of action. (4%)
(B) What do you have to prove to secure Manuel's
objectives and what documentation are
necessary? (4%)
MULTIPLE CHOICE QUESTIONS
I. Armand died intestate. His full-blood brothers,
Bobby and Conrad, and half-blood brothers,
Danny, Edward and Floro, all predeceased him.
The following are the surviving relatives:
1. Benny and Bonnie, legitimate children of Bobby;
2. Cesar, legitimate child of Conrad;
3. Dante, illegitimate child of Danny;
4. Ernie, adopted child of Edward; and
5. Felix, grandson of Floro.
The net value of Armand's estate is Pl,200,000.
I. (1) How much do Benny and Bonnie stand to
inherit by right of representation? (1%)
(A) P200,000
(B) P300,000
(C) P400,000
(D) P150,000
(E) None of the above.
I. (2) How much is Dante's share in the net estate?
(1%)
(A) P150,000.
(B) P200,000.
(C) P300,000.
(D) P400,000.
(E) None of the above.
I. (3) How much is Ernie's share in the net estate .
(1%)
(A) P 0.
(B) P400,000.
(C) P150,000.
(D) P200,000.
(E) None of the above.
I. (4) How much is Felix's share in the net estate?
(1%)
(A) P400,000.
(B) P150,000.
(C) P300,000.
(D) P0.
(E) None of the above.
II. A, B, C and D are the solidary debtors of X
for P40,000. X released D from the payment of his
share of PI 0,000. When the obligation became
due and demandable, C turned out to be insolvent.
Should the share of insolvent debtor C be divided
only between the two other remaining debtors, A
and B? (1%)
(A) Yes. Remission of D's share carries with it total
extinguishment of his obligation to the benefit of
the solidary debtors.
(B) Yes. The Civil Code recognizes remission as a
mode of extinguishing an obligation. This clearly
applies to D.
(C) No. The rule is that gratuitous acts should be
restrictively construed, allowing only the least
transmission of rights.
(D) No, as the release of the share of one debtor
would then increase the burden of the other
debtors without their consent.
III. Amador obtained a loan of P300,000 from
Basilio payable on March25, 2012. As security for
the payment of his loan, Amador constituted a
mortgage on his residential house and lot in
Basilio's favor. Cacho, a good friend of Amador,
guaranteed and obligated himself to pay Basilio, in
case Amador fails to pay his loan at maturity.
III. (1) If Amador fails to pay Basilio his loan on
March 25, 2012, can Basilio compel Cacho to pay?
(1%)
(A) No, Basilio cannot compel Cacho to pay
because as guarantor, Cacho can invoke the
principle of excussion, i.e., all the assets of Basilio
must first be exhausted.
(B) No, Basilio cannot compel Cacho to pay
because Basilio has not exhausted the available
remedies against Amador.
(C) Yes, Basilio can compel Cacho to pay because
the nature of Cacho's undertaking indicates that
he has bound himself solidarily with Amador.
(D) Yes, Basilio can compel Cacho who bound
himself to unconditionally pay in case Amador fails
to pay; thus the benefit of excussion will not apply.
III. (2) If Amador sells his residential house and lot
to Diego, can Basilio foreclose the real estate
mortgage? (1%)
(A) Yes, Basilio can foreclose the real estate
mortgage because real estate mortgage creates a
real right that attaches to the property.
(B) Yes, Basilio can foreclose the real estate
mortgage. It is binding upon Diego as the
mortgage is embodied in a public instrument.
(C) No, Basilio cannot foreclose the real estate
mortgage. The sale confers ownership on the
buyer, Diego, who must therefore consent.
(D) No, Basilio cannot foreclose the real estate
mortgage. To deprive the new owner of ownership
and possession is unjustand inequitable.
IV. Cruz lent Jose his car until Jose finished his Bar
exams. Soon after Cruz delivered the car, Jose
brought it to Mitsubishi Cubao for maintenance
check up and incurred costs of P8,000. Seeing the
car's peeling and faded paint, Jose also had the car
repainted for P10,000. Answer the two questions
below based on these common facts.
IV. (1) After the bar exams, Cruz asked for the
return of his car. Jose said he would return it as
soon as Cruz has reimbursed him for the car
maintenance and repainting costs of P 18,000.
Is Jose's refusal justified? (1%)
(A) No, Jose's refusal is not justified. In this kind of
contract, Jose is obliged to pay for all the expenses
incurred for the preservation of the thing loaned.
(B) Yes, Jose's refusal is justified. He is obliged to
pay forall the ordinary and extraordinary expenses,
but subject to reimbursement from Cruz.
(C) Yes, Jose's refusal is justified. The principle of
unjust enrichment warrants the reimbursement of
Jose's expenses.
(D) No, Jose's refusal is not justified. The expenses
he incurred are useful for the preservation of the
thing loaned. It is Jose's obligation to shoulder
these useful expenses.
IV. (2) During the bar exam month, Jose lent the
car to his girlfriend, Jolie, who parked the car at
the Mall of Asia's open parking lot, with the
ignition key inside the car. Car thieves broke into
and took the car.
Is Jose liable to Cruz for the loss of the car due to
Jolie's negligence? (1%)
(A) No, Jose is not liable to Cruz as the loss was not
due to his fault or negligence.
(B) No, Jose is not liable to Cruz. In the absence of
any prohibition, Jose could lend the car to Jolie.
Since the loss was due to force majeure, neither
Jose nor Jolie is liable.
(C) Yes, Jose is liable to Cruz. Since Jose lent the car
to Jolie without Cruz's consent, Jose must bear the
consequent loss of the car.
(D) Yes, Jose is liable to Cruz. The contract
between them is personal in nature. Jose can
neither lend nor lease the car to a third person.
V. In 2005, L, M, N, 0 and P formed a partnership.
L, M and N were capitalist partners who
contributed P500,000 each, while 0, a limited
partner, contributed P1 ,000,000. P joined as an
industrial partner, contributing only his services.
The Articles of Partnership, registered with the
Securities and Exchange Commission, designated L
and 0 as managing partners; L was liable only to
the extent of his capital contribution; and P was
not liable for losses.
In 2006, the partnership earned a net profit
of P800,000. In the same year, P engaged in a
different business with the consent of all the
partners. However, in 2007, the partnership
incurred a net loss of P500,000. In 2008,the
partners dissolved the partnership. The proceeds
of the sale of partnership assets were insufficient
to settle its obligation. After liquidation, the
partnership had an unpaid liability ofP300,000.
V. (l) Assuming that the just and equitable share of
the industrial partner, P, in the profit in 2006
amounted to P1 00,000, how much is the share of
0, a limited partner, in the P800,000 net profit?
(1%)
(A) P160,000.
(B) P175,000.
(C) P280,000.
(D) P200,000.
(E) None of the above.
V. (2) In 2007, how much is the share of 0, a
limited partner, in the net loss of P500,000? (1%)
(A) P 0.
(B) P1 00,000.
(C) P125,000.
(D) P200,000.
(E) None of the above.
V. (3) Can the partnership creditors hold L, 0 and
Pliable after all the assets of the partnership are
exhausted? (1%)
(A) Yes. The stipulation exempting P from losses is
valid only among the partners. L is liable because
the agreement limiting his liability to his capital
contribution is not valid insofar as the creditors are
concerned. Having taken part in the management
of the partnership, 0 is liable as capitalist partner.
(B) No. P is not liable because there is a valid
stipulation exempting him from losses. Since the
other partners allowed him to engage in an
outside business activity, the stipulation absolving
P from liability is valid. For 0, it is basic that a
limited partner is liable only up to the extent of his
capital contribution.
(C) Yes. The stipulations exempting P and L from
losses are not binding upon the creditors. 0 is
likewise liable because the partnership was not
formed in accordance with the requirements of a
limited partnership.
(D) No. The Civil Code allows the partners to
stipulate that a partner shall not be liable for
losses. The registration of the Articles of
Partnership embodying such stipulations serves as
constructive notice to the partnership creditors.(E)
None of the above is completely accurate.
VI. Gary is a tobacco trader and also a lending
investor. He sold tobacco leaves to Homer for
delivery within a month, although the period for
delivery was not guaranteed. Despite Gary's efforts
to deliver on time, transportation problems and
government red tape hindered his efforts and he
could only deliver after 30 days. Homer refused to
accept the late delivery and to pay on the ground
that the agreed term had not been complied with.
As lending investor, Gary granted a Pl,000,000 loan
to Isaac to be paid within two years from
execution of the contract. As security for the loan,
Isaac promised to deliver to Gary his Toyota
Innova within seven (7) days, but Isaac failed to do
so. Gary was thus compelled to demand payment
for the loan before the end of the agreed two-year
term.
VI. (l) Was Homer justified in refusing to accept the
tobacco leaves? (1%)
(A) Yes. Homer was justified in refusing to accept
the tobacco leaves. The delivery was to be made
within a month. Gary's promise of delivery on a
"best effort" basis made the delivery uncertain.
The term, therefore, was ambiguous.
(B) No. Homer was not justified in refusing to
accept the tobacco leaves. He consented to the
terms and conditions of the sale and must abide by
it. Obligations arising from contract have the force
of law between the contracting parties.
(C) Yes. Homer was justified in his refusal to accept
the delivery. The contract contemplates an
obligation with a term. Since the delivery was
made after 30 days, contrary to the terms agreed
upon, Gary could not insist that Homer accept the
tobacco leaves.
(D) No. Homer was not justified in refusing to
accept the tobacco leaves. There was no term in
the contract but a mixed condition. The fulfillment
of the condition did not depend purely on Gary's
will but on other factors, e.g., the shipping
company and the government. Homer should
comply with his obligation.
VI. (2) Can Gary compel Isaac to pay his loan even
before the end of the two-year period? (1%)
(A) Yes, Gary can compel Isaac to immediately pay
the loan. Non-compliance with the promised
guaranty or security renders the obligation
immediately demandable. Isaac lost his right to
make use of the period.
(B) Yes, Gary can compel Isaac to immediately pay
the loan. The delivery of the Toyota Innova is a
condition for the loan. Isaac's failure to deliver the
car violated the condition upon which the loan was
granted. It is but fair for Gary to demand
immediate payment.
(C) No, Gary cannot compel Isaac to immediately
pay the loan. The delivery of the car as security for
the loan is an accessory contract; the principal
contract is still the P 1,000,000 loan. Thus, Isaac
can still make use of the period.
(D) No, Gary cannot compel Isaac to immediately
pay the loan. Equity dictates that Gary should have
granted a reasonable extension of time for Isaac to
deliver his Toyota Innova. It would be unfair and
burdensome for Isaac to pay the P1,000,000
simply because the promised security was not
delivered.
VII.
Lito was a commercial pilot who flew for Pacific-
Micronesian Air. In 1998, he was the co-pilot of the
airline's Flight MA916 that mysteriously
disappeared two hours after take-off from Agana,
Guam, presumably over the Pacific Ocean. No
trace of the plane and its 105 passengers and crew
was ever found despite diligent search; Lito
himself was never heard of again. Lito left behind
his wife, Lita, and their two children.
In 2008, Lita met and and married Jaime. They now
have a child of their own.
While on a tour with her former high school
classmates in a remote province of China in 2010,
Lita was surprised to see Lito or somebody who
looked exactly like him, but she was sure it was
Lito because of the extreme surprise that
registered in his face when he also saw her.
Shocked, she immediately fled to her hotel and
post haste returned to the country the next day.
Lita now comes to you for legal advice. She asks
you the following questions:
VII. (l) If Lito is alive, what is the status of his
marriage to Lita? (1%)
(A) The marriage subsists because the marital
bond has not been terminated by death.
(B) The marriage was terminated when Lita
married Jaime.
(C) The marriage subsists because Lita's marriage
to Jaime is void.
(D) The marriage is terminated because Lito is
presumed dead after his plane has been missing
for more than 4 years.
(E) The marriage can be formally declared
terminated if Lito would not resurface.
VII. (2) If Lito is alive, what is the status of Lita's
marriage to Jaime? (1%)
(A) The marriage is valid because Lita's marriage to
Lito was terminated upon Lito's disappearance for
more than seven years.
(B) The marriage is valid. After an absence of more
than 10 years, Lito is already presumed dead for all
purposes.
(C) The marriage is void. Lito's mere absence,
however lengthy, is insufficient to authorize Lita to
contract a subsequent marriage.
(D) The marriage is void. If Lito is indeed alive, his
marriage to Lita was never dissolved and they can
resume their marital relations at any time.
VIII.
Which of the following actions or defenses are
meritorious: (1%)
(A) An action for recovery of downpayment paid
under a rescinded oral sale of real property.
(B) A defense in an action for ejectment that the
lessor verbally promised to extend or renew the
lease.
(C) An action for payment of sum of money filed
against one who orally promised to answer
another's debt in case the latter defaults.
(D) A defense in an action for damages that the
debtor has sufficient, but unliquidated assets to
satisfy the credit acquired when it becomes due.
(E) None of the above.
IX.
Betty entrusted to her agent, Aida, several pieces
of jewelry to be sold on commission with the
express obligation to turn over to Betty the
proceeds of the sale, or to return the jewelries if
not sold in a month's time. Instead of selling the
jewelries, Aida pawned them with the Tambunting
Pawnshop, and used the money for herself. Aida
failed to redeem the pawned jewelries and after a
month, Betty discovered what Aida had done.
Betty brought criminal charges which resulted in
Aida's conviction for estafa.
Betty thereafter filed an action against Tambunting
Pawnshop for the recovery of the jewelries.
Tambunting raised the defense of ownership,
additionally arguing that it is duly licensed to
engage in the pawnshop and lending business, and
that it accepted the mortgage of the jewelry in
good faith and in the regular course of its business.
If you were the judge, how will you decide the
case? (1%)
(A) I will rule in favor of Betty. My ruling is based
on the Civil Code provision that one who has lost
any movable or has been unlawfully deprived
thereof may recover it from the person in
possession of the same. Tam bunting's claim of
good faith is inconsequential.
(B) I will rule in favor of Betty. Tambunting's claim
of good faith pales into insignificance in light of the
unlawful deprivation of the jewelries. However,
equity dictates that Tambunting must be
reimbursed for the pawn value of the jewelries.
(C) I will rule in favor of Tambunting. Its good faith
takes precedence over the right of Betty to recover
the jewelries.
(D) I will rule in favor of Tambunting. Good faith is
always presumed. Tambunting's lawful acquisition
in the ordinary course of business coupled with
good faith gives it legal right over the jewelries.

X.
Arlene owns a row of apartment houses in
Kamuning, Quezon City. She agreed to lease
Apartment No. 1 to Janet for a period of 18
months at the rate of P10,000 per month. The
lease was not covered by any contract. Janet
promptly gave Arlene two (2) months deposit and
18 checks covering the rental payment for 18
months. This show of good faith prompted Arlene
to promise Janet that should Arlene decide to sell
the property, she would give Janet the right of first
refusal.
X. (1) Not long after Janet moved in, she received
news that her application for a Master of Laws
scholarship at King's College in London had been
approved. Since her acceptance of the scholarship
entailed a transfer of residence, Janet asked
Arlene to return the advance rental payments she
made. Arlene refused, prompting Janet to file an
action to recover the payments. Arlene filed a
motion to dismiss, claiming that the lease on which
the action is based, is unenforceable.
If you were the judge, would you grant Arlene's
motion? (1%)
(A) Yes, I will grant the motion because the lease
contract between Arlene and Janet was not in
writing, hence, Janet may not enforce any right
arising from the same contract.
(B) No, I will not grant the motion because to allow
Arlene to retain the advance payments would
amount to unjust enrichment.
(C) Yes, I will grant the motion because the action
for recovery is premature; Janet should first secure
a judicial rescission of the contract of lease.
(D) No. I will not grant the motion because the
cause of action does not seek to enforce any right
under the contract of lease.
X. (2)Assume that Janet decided not to accept the
scholarship and continued leasing Apartment No.
1. Midway through the lease period, Arlene
decided to sell Apartment No. 1 to Jun in breach of
her promise to Janet to grant her the right of first
refusal. Thus, Janet filed an action seeking the
recognition of her right of first refusal, the
payment of damages for the violation of this right,
and the rescission of the sale between Arlene and
Jun.
Is Janet's action meritorious? (1%)
(A) Yes, under the Civil Code, a promise to buy and
sell a determinate thing is reciprocally
demandable.
(B) No, the promise to buy and sell a determinate
thing was not supported by a consideration.
(C) Yes, Janet's right of first refusal was clearly
violated when the property was not offered for
sale to her before it was sold to Jun.
(D) No, a right of first refusal involves an interest
over real property that must be embodied in a
written contract to be enforceable.
(E) None of the above.
I.
In its final adjustment return for the 2010 taxable
year, ABC Corp. had excess tax credits arising from
its over-withholding of income payments. It opted
to carry over the excess tax credits to the following
year. Subsequently, ABC Corp. changed its mind
and applied for a refund of the excess tax credits.
Will the claim for refund prosper? (6%)
II.
A group of philanthropists organized a non-stock,
non-profit hospital for charitable purposes to
provide medical services to the poor. The hospital
also accepted paying patients although none of its
income accrued to any private individual; all
income were plowed back for the hospital's use
and not more than 30% of its funds were used for
administrative purposes.
Is the hospital subject to tax on its income? If it is,
at what rate? (6%)
III.
ABC Corporation is registered as a holding
company and has an office in the City of Makati. It
has no actual business operations. It invested in
another company and its earnings are limited to
dividends from this investment, interests on its
bank deposits, and foreign exchange gains from its
foreign currency account. The City of Makati
assessed ABC Corporation as a contractor or one
that sells services for a fee.
Is the City of Makati correct? (6%)
IV.
Atty. Gambino is a partner in a general
professional partnership. The partnership
computes its gross revenues, claims deductions
allowed under the Tax Code, and distributes the
net income to the partners, including Atty.
Gambino, in accordance with its articles of
partnership.
In filing his own income tax return, Atty. Gambino
claimed deductions that the partnership did not
claim, such as purchase of law books,
entertainment expenses, car insurance and car
depreciation. The BIR disallowed the deductions.
Was the BIR correct? (6%)
V.
Mr. Agustin, 75 years old and suffering from an
incurable disease, decided to sell for valuable and
sufficient consideration a house and lot to his son.
He died one year later.
In the settlement of Mr. Agustin's estate, the BIR
argued that the house and lot were transferred in
contemplation of death and should therefore form
part of the gross estate for estate tax purposes.
Is the BIR correct? (7%)
VI.
On October 15, 2005, ABC Corp. imported 1,000
kilos of steel ingots and paid customs duties and
VAT to the Bureau of Customs on the importation.
On February 17, 2009, the Bureau of Customs,
citing provisions of the Tariff and Customs Code on
post-audit, investigated and assessed ABC Corp.
for deficiency customs duties and VAT.
Is the Bureau of Customs correct? (7%)
VII.
XYZ Law Offices, a law partnership in the
Philippines and a VAT-registered taxpayer,
received a query by e-mail from Gainsburg
Corporation, a corporation organized under the
laws of Delaware, but the e-mail came from
California where Gainsburg has an office.
Gainsburg has no office in the Philippines and does
no business in the Philippines.
XYZ Law Offices rendered its opinion on the query
and billed Gainsburg US$1,000 for the opinion.
Gainsburg remitted its payment through Citibank
which converted the remitted US$1 ,000 to pesos
and deposited the converted amount in the XYZ
Law Offices account.
What are the tax implications of the payment to
XYZ Law Offices in terms of VAT and income taxes?
(7%)
VIII.
Mr. Amado leased a piece of land owned by the
Municipality of Pinagsabitan and built a warehouse
on the property for his business operations. The
Municipal Assessor assessed Mr. Amado for real
property taxes on the land and the warehouse. Mr.
Amado objected to the assessment, contending
that he should not be asked to pay realty taxes on
the land since it is municipal property.
Was the assessment proper? (5%)
IX.
In the settlement of the estate of Mr. Barbera who
died intestate, his wife renounced her inheritance
and her share of the conjugal property in favor of
their children. The BIR determined that there was
a taxable gift and thus assessed Mrs. Barbera as a
donor.
Was the BIR correct? (7%)
X.
In 2010, pursuant to a Letter of Authority (LA)
issued by the Regional Director, Mr. Abcede was
assessed deficiency income taxes by the BIR for
the year 2009. He paid the deficiency. In 2011, Mr.
Abcede received another LA for the same year
2009, this time from the National Investigation
Division, on the ground that Mr. Abcede's 2009
return was fraudulent.
Mr. Abcede contested the LA on the ground that
he can only be investigated once in a taxable year.
Decide. (7%)
XI.
In 2000, Mr. Belen bought a residential house and
lot for P1,000,000. He used the property as his and
his family's principal residence. It is now year 2013
and he is thinking of selling the property to buy a
new one. He seeks your advice on how much
income tax he would pay if he sells the property.
The total zonal value of the property is P5,000,000
and the fair market value per the tax declaration
is P2,500,000. He intends to sell it for P6,000,000.
What material considerations will you take into
account in computing the income tax? Please
explain the legal relevance of each of these
considerations. (7%)
XII.
You are the retained tax counsel of ABC Corp. Your
client informed you that they have been directly
approached with a proposal by a BIR insider (i.e., a
middle rank BIR official) on the tax matter they
have referred to you for handling. The BIR insider's
proposal is to settle the matter by significantly
reducing the assessment, but he will get 50% of
the savings arising from the reduced assessment.
What tax, criminal and ethical considerations will
you take into account in giving your advice?
Explain the relevance of each of these
considerations. (9%)
MULTIPLE CHOICE QUESTIONS
I. ABC Corp. was dissolved and liquidating
dividends were declared and paid to the
stockholders.
What tax consequence follows? (1%)
(A) ABC Corp. should deduct a final tax of 10%
from the dividends.
(B) The stockholders should declare their gain from
their investment and pay income tax at the
ordinary rates.
(C) The dividends are exempt from tax.
(D) ABC Corp. should withhold a 10% creditable
tax.
II. MGC Corp. secured an income tax holiday for 5
years as a pioneer industry. On the fourth year of
the tax holiday, MGC Corp. declared and paid cash
dividends to its stockholders, all of whom are
individuals.
Are the dividends taxable? (1%)
(A) The dividends are taxable; the tax exemption of
MGC Corp. does not extend to its stockholders.
(B) The dividends are tax exempt because of MGC
Corp.'s income tax holiday.
(C) The dividends are taxable if they exceed 50% of
MGC Corp.'s retained earnings.
(D) The dividends are exempt if paid before the
end of MGC Corp.'s fiscal year.
III. Mr. Alas sells shoes in Makati through a retail
store. He pays the VAT on his gross sales to the BIR
and the municipal license tax based on the same
gross sales to the City of Makati. He comes to you
for advice because he thinks he is being subjected
to double taxation.
What advice will you give him? (1%)
(A) Yes, there is double taxation and it is
oppressive.
(B) The City of Makati does not have this power.
(C) Yes, there is double taxation and this is illegal
m the Philippines.
(D) Double taxation is allowed where one tax is
imposed by the national government and the
other by the local government.
IV. Congress passed a sin tax law that increased
the tax rates on cigarettes by 1,000%. The law was
thought to be sufficient to drive many cigarette
companies out of business, and was questioned in
court by a cigarette company that would go out of
business because it would not be able to pay the
increased tax.
The cigarette company is __________ (1%)
(A) wrong because taxes are the lifeblood of the
government
(B) wrong because the law recognizes that the
power to tax is the power to destroy
(C) correct because no government can deprive a
person of his livelihood
(D) correct because Congress, in this case,
exceeded its power to tax
V. Mr. Alvarez is in the retail business. He received
a deficiency tax assessment from the BIR
containing only the computation of the deficiency
tax and the penalties, without any explanation of
the factual and legal bases for the assessment.
Is the assessment valid? (1%)
(A) The assessment is valid; all that Mr. Alvarez has
to know is the amount of the tax.
(B) The assessment is invalid; the law requires a
statement of the facts and the law upon which the
assessment is based.
(C) The assessment is valid but Mr. Alvarez can still
contest it.
(D) The assessment is invalid because Mr. Alvarez
has no way to determine if the computation is
erroneous.
VI. In 2010, Mr. Platon sent his sister Helen $1 ,000
via a telegraphic transfer through the Bank of PI.
The bank's remittance clerk made a mistake and
credited Helen with $1,000,000 which she
promptly withdrew. The bank demanded the
return of the mistakenly credited excess, but Helen
refused. The BIR entered the picture and
investigated Helen.
Would the BIR be correct if it determines that
Helen earned taxable income under these facts?
(1%)
(A) No, she had no income because she had no
right to the mistakenly credited funds.
(B) Yes, income is income regardless of the source.
(C) No, it was not her fault that the funds in excess
of $1,000 were credited to her.
(D) No, the funds in excess of$1,000 were in effect
donated to her.
VII. The municipality of San Isidro passed an
ordinance imposing a tax on installation managers.
At that time, there was only one installation
manager in the municipality; thus, only he would
be liable for the tax.
Is the law constitutional? (1%)
(A) It is unconstitutional because it clearly
discriminates against this person.
(B) It is unconstitutional for lack of legal basis.
(C) It is constitutional as it applies to all persons in
that class.
(D) It is constitutional because the power to tax is
the power to destroy.
VIII. XYZ Corporation manufactures glass panels
and is almost at the point of insolvency. It has no
more cash and all it has are unsold glass panels. It
received an assessment from the BIR for deficiency
income taxes. It wants to pay but due to lack of
cash, it seeks permission to pay in kind with glass
panels.
Should the BIR grant the requested permission?
(1%)
(A) It should grant permission to make payment
convenient to taxpayers.
(B) It should not grant permission because a tax is
generally a pecuniary burden.
(C) It should grant permission; otherwise, XYZ
Corporation would not be able to pay.
(D) It should not grant permission because the
government does not have the storage facilities for
glass panels.
IX. Prior to the VAT law, sales of cars were subject
to a sales tax but the tax applied only to the
original or the first sale; the second and
subsequent sales were not subject to tax.
Deltoid Motors, Inc. (Deltoid) hit on the idea of
setting up a wholly-owned subsidiary, Gonmad
Motors, Inc. (Gonmad), and of selling its
assembled cars to Gonmad at a low price so it
would pay a lower tax on the first sale. Gonmad
would then sell the cars to the public at a higher
price without paying any sales tax on this
subsequent sale.
Characterize the arrangement. (1%)
A. The plan is a legitimate exercise of tax planning
and merely takes advantage of a loophole in the
law.
B. The plan is legal because the government
collects taxes anyway.
C. The plan is improper; the veil of corporate
fiction can be pierced so that the second sale will
be considered the taxable sale.
D. The government must respect Gonmad's
separate juridical personality and Deltoid's taxable
sale to it.
X. PRT Corp. purchased a residential house and lot
with a swimming pool in an upscale subdivision
and required the company president to stay there
without paying rent; it reasoned out that the
company president must maintain a certain image
and be able to entertain guests at the house to
promote the company's business. The company
president declared that because they are childless,
he and his wife could very well live in a smaller
house.
Was there a taxable fringe benefit? (1%)
(A) There was no taxable fringe benefit since it was
for the convenience of the employer and was
necessary for its business.
(B) There was a taxable fringe benefit since the
stay at the house was for free.
(C) There was a taxable fringe benefit because the
house was very luxurious.
(D) There was no taxable fringe benefit because
the company president was only required to stay
there and did not demand free housing.
XI. Taxpayer A was required by the BIR to sign and
submit a waiver of the statute of limitations on the
assessment period, to give the BIR more time to
complete its investigation. The BIR accepted the
waiver but failed to indicate the date of its
acceptance.
What is the legal status of the waiver? (1%)
(A) The waiver is valid because the date of
acceptance is immaterial and unimportant.
(B) The waiver is invalid; the taxpayer cannot be
required to waive the statute of limitations.
(C) The waiver is invalid; the date of acceptance is
crucial in counting the start of the period of
suspension of the prescriptive period.
(D) The waiver is valid, having been accepted by
the BIR.
XII. Taxpayer Andy received on January 3, 2010 a
preliminary assessment notice (PAN) from the BIR,
stating that he had fifteen (15) days from its
receipt to comment or to file a protest. Eight (8)
days later (or on January11, 2010), before he could
comment or file a protest, Andy received the final
assessment notice (FAN).
Decide on the validity of the FAN. (1%)
(A) The FAN is invalid; Andy was not given the
chance to respond to the PAN, in violation of his
due process rights.
(B) The FAN is invalid for being premature.
(C) The FAN is valid since it was issued before the
right to assess prescribed.
(D) The FAN is valid. There is no legal requirement
that the FAN should await the protest to the PAN
because protest to the PAN is not mandatory.
XIII. MSI Corp. imports orange and lemon
concentrates as raw materials for the fruit drinks it
sells locally. The Bureau of Customs (BOC) imposed
a 1% duty rate on the concentrates. Subsequently,
the BOC changed its position and held that the
concentrates should be taxed at 7% duty rate. MSI
disagreed with the ruling and questioned it in the
CTA which upheld MSI's position. The
Commissioner of Customs appealed to the CTA en
bane without filing a motion for reconsideration.
Resolve the appeal. (1%)
(A) The appeal should be dismissed because a
motion for reconsideration is mandatory.
(B) The appeal should be dismissed for having
been filed out of time.
(C) The appeal should be given due course since a
motion for reconsideration is a useless exercise.
(D) The appeal should be upheld to be fair to the
government which needs taxes.
XIV. The spouses Jun and Elvira Sandoval
purchased a piece of land for P5,000,000 and
included their two (2) minor children as co-
purchasers in the Deed of Absolute Sale. The
Commissioner of Internal Revenue (CIR) ruled that
there was an implied donation and assessed
donors' taxes against the spouses.
Rule on the CIR's action. (1%)
(A) The CIR is wrong; a donation must be express.
(B) The CIR is wrong; financial capacity is not a
requirement for a valid sale.
(C) The CIR is correct; the amount involved is huge
and ultimately ends up with the children.
(D) The CIR is correct; there was animus donandi
since the children had no financial capacity to be
co-purchasers.
XV. Pheleco is a power generation and distribution
company operating mainly from the City of Taguig.
It owns electric poles which it also rents out to
other companies that use poles such as telephone
and cable companies. Taguig passed an ordinance
imposing a fee equivalent to 1% of the annual
rental for these poles. Pheleco questioned 'the
legality of the ordinance on the ground that it
imposes an income tax which local government
units (LGUs) are prohibited from imposing.
Rule on the validity of the ordinance. (1%)
(A) The ordinance is void; the fee is based on
rental income and is therefore a tax on income.
(B) The ordinance is valid as a legitimate exercise
of police power to regulate electric poles.
(C) The ordinance is void; 1% of annual rental is
excessive and oppressive.
(D) The ordinance is valid; an LGU may impose a
tax on income.

XVI. Aleta sued Boboy for breach of promise to
marry. Boboy lost the case and duly paid the
court's award that included, among others,
Pl00,000 as moral damages for the mental anguish
Aleta suffered.
Did Aleta earn a taxable income? (1%)
(A) She had a taxable income of P100,000 since
income is income from whatever source.
(B) She had no taxable income because it was a
donation.
(C) She had taxable income since she made a
profit.
(D) She had no taxable income since moral
damages are compensatory.
XVII. Mr. Mayuga donated his residential house
and lot to his son and duly paid the donor's tax. In
the Deed of Donation, Mr. Mayuga expressly
reserved for himself the usufruct over the property
for as long as he lived.
Describe the donated property from the taxation
perspective. (1%)
(A) The property will form part of Mr. Mayuga's
gross estate when he dies.
(B) The property will not fom1 part of Mr.
Mayuga's gross estate when he dies because he
paid the donor's tax.
(C) The property will form part of Mr. Mayuga's
gross estate because he died soon after the
donation.
(D) The property will not form part of Mr.
Mayuga's gross estate because it is no longer his.
XVIII. Mr. Z made an importation which he
declared at the Bureau of Customs (BOC) as "Used
Truck Replacement Parts". Upon investigation, the
container vans contained 15 units of Porsche and
Ferrari cars.
Characterize Mr. Z's action. (1%)
(A) Mr. Z committed smuggling.
(B) Mr. Z did not commit smuggling because he
submitted his shipment to BOC examination.
(C) Mr. Z only made a misdeclaration, but did not
commit smuggling.
(D) Mr. Z did not commit smuggling because the
shipment has not left the customs area.
XIX. Mr. A was preparing his income tax return and
had some doubt on whether a commission he
earned should be declared for the current year or
for the succeeding year. He sought the opinion of
his lawyer who advised him to report the
commission in the succeeding year. He heeded his
lawyer's advice and reported the commission in
the succeeding year. The lawyer's advice turned
out to be wrong; in Mr. A's petition against the BIR
assessment, the court ruled against Mr. A.
Is Mr. A guilty of fraud? (1%)
(A) Mr. A is not guilty of fraud as he simply
followed the advice of his lawyer.
(B) Mr. A is guilty of fraud; he deliberately did not
report the commission in the current year when he
should have done so.
(C) Mr. A's lawyer should pay the tax for giving the
wrong advice.
(D) Mr. A is guilty for failing to consult his
accountant.
XX. The BIR, through the Commissioner, instituted
a system requiring taxpayers to submit to the BIR a
summary list of their sales and purchases during
the year, indicating the name of the seller or the
buyer and the amount. Based on these lists, the
BIR discovered that in 2004 ABC Corp. purchased
from XYZ Corp. goods worth P5,000,000. XYZ Corp.
did not declare these for income tax purposes as
its reported gross sales for 2004was only
Pl,000,000.
Which of the following defenses may XYZ Corp.
interpose in an assessment against it by the BIR?
(1%)
(A) The BIR has no authority to obtain third party
information to assess taxpayers.
(B) The third party information is inadmissible as
hearsay evidence.
(C) The system of requiring taxpayers to submit
third party information is illegal for violating the
right to privacy.
(D) None of the above.
LABOR LAW (2013) I.
Jose and Erica, former sweethearts, both worked
as sales representatives for Magna, a multinational
firm engaged in the manufacture and sale of
pharmaceutical products. Although the couple had
already broken off their relationship, Jose
continued to have special feelings for Erica.
One afternoon, Jose chanced upon Erica riding in
the car of Paolo, a co-employee and Erica's ardent
suitor; the two were on their way back to the
office from a sales call on Silver Drug, a major drug
retailer. In a fit of extreme jealousy, Jose rammed
Paolo's car, causing severe injuries to Paolo and
Erica. Jose's flare up also caused heavy damage to
the two company-owned cars they were driving.

(A) As lawyer for Magna, advise the company on

whether just and valid grounds exist to dismiss
Jose. (4%)

(B) Assuming this time that Magna dismissed Jose

from employment for cause and you are the
lawyer of Jose, how would you argue the position
that Jose's dismissal was illegal? (4%)

II.
Gamma Company pays its regular employees
P350.00 a day, and houses them in a dormitory
inside its factory compound in Manila. Gamma
Company also provides them with three full meals
a day.

In the course of a routine inspection, a

Department of Labor and Employment (DOLE)
Inspector noted that the workers' pay is below the
prescribed minimum wage of P426.00 plus P30.00
allowance, and thus required Gamma Company to
pay wage differentials.
Gamma Company denies any liability, explaining
that after the market value of the company-
provided board and lodging are added to the
employees' P350 cash daily wage, the employees'
effective daily rate would be way above the
minimum pay required by law. The company
counsel further points out that the employees are
aware that their food and lodging form part of
their salary, and have long accepted the
arrangement.
Is the company's position legally correct?(8%)
III.
Inter-Garments Co. manufactures garments for
export and requires its employees to render
overtime work ranging from two to three hours a
day to meet its clients' deadlines. Since 2009, it
has been paying its employees on overtime an
additional 35% of their hourly rate for work
rendered in excess of their regular eight working
hours.
Due to the slowdown of its export business in
2012, Inter-Garments had to reduce its overtime
work; at the same time, it adjusted the overtime
rates so that those who worked overtime were
only paid an additional 25%instead of the previous
35%. To replace the workers' overtime rate loss,
the company granted a one-time 5% across-the-
board wage increase.
Vigilant Union, the rank-and-file bargaining agent,
charged the company with Unfair Labor Practice
on the ground that (1) no consultations had been
made on who would render overtime work; and
(2) the unilateral overtime pay rate reduction is a
violation of Article 100 (entitled Prohibition
Against Elimination or Diminution of Benefits) of
the Labor Code.
Is the union position meritorious? (8%)
IV.
Bobby, who was assigned as company branch
accountant in Tarlac where his family also lives,
was dismissed by Theta Company after anomalies
in the company's accounts were discovered in the
branch Bobby filed a complaint and was ordered
reinstated with full backwages after the Labor
Arbiter found that he had been denied due
process because no investigation actually took
place.
Theta Company appealed to the National Labor
Relations Commission (NLRC) and at the same time
wrote Bobby, advising him to report to the main
company office in Makati where he would be
reinstated pending appeal Bobby refused to
comply with his new assignment because Makati is
very far from Tarlac and he cannot bring his family
to live with him due to the higher cost of living in
Makati.
(A) Is Bobby's reinstatement pending appeal legally
correct? (4%)
(B) Advise Bobby on the best course of action to
take under the circumstances. (4%)
V.
Cris filed a complaint for illegal dismissal against
Baker Company. The Labor Arbiter dismissed the
complaint but awarded Cris financial assistance.
Only the company appealed from the Labor
Arbiter's ruling. It confined its appeal solely to the
question of whether financial assistance could be
awarded. The NLRC, instead of ruling solely on the
appealed issue, fully reversed the Labor Arbiter's
decision; it found Baker Company liable for illegal
dismissal and ordered the payment of separation
pay and full backwages.
Through a petition for certiorari under Rule 65 of
the Rules of Court, Baker Company challenged the
validity of the NLRC ruling. It argued that the NLRC
acted with grave abuse of discretion when it ruled
on the illegal dismissal issue, when the only issue
brought on appeal was the legal propriety of the
financial assistance award.
Cris countered that under Article 218(c) of the
Labor Code, the NLRC has the authority to
"correct, amend, or waive any error, defect or
irregularity whether in substance or in form" in the
exercise of its appellate jurisdiction.
Decide the case. (8%)
VI.
Because of the stress in caring for her four (4)
growing children, Tammy suffered a miscarriage
late in her pregnancy and had to undergo an
operation. In the course of the operation, her
obstetrician further discovered a suspicious-
looking mass that required the subsequent
removal of her uterus (hysterectomy). After
surgery, her physician advised Tammy to be on full
bed rest for six (6) weeks. Meanwhile, the biopsy
of the sample tissue taken from the mass in
Tammy's uterus showed a beginning malignancy
that required an immediate series of
chemotherapy once a week for four (4) weeks.
(A) What benefits can Tammy claim under existing
social legislation? (4%)
(B) What can Roger-Tammy's 2nd husband and the
father of her two (2) younger children -claim as
benefits under the circumstances? (4%)
VII.
Philippine Electric Company is engaged in electric
power generation and distribution. It is a unionized
company with Kilusang Makatao as the union
representing its rank-and-file employees. During
the negotiations for their expired collective
bargaining agreement (CBA), the parties duly
served their proposals and counter-proposals on
one another. The parties, however, failed to
discuss the merits of their proposals and counter-
proposals in any formal negotiation meeting
because their talks already bogged down on the
negotiation ground rules, i.e., on the question of
how they would conduct their negotiations,
particularly on whether to consider retirement as a
negotiable issue.
Because of the continued impasse, the union went
on strike. The Secretary of Labor and Employment
immediately assumed jurisdiction over the dispute
to avert widespread electric power interruption in
the country. After extensive discussions and the
filing of position papers (before the National
Conciliation and Mediation Board and before the
Secretary himself) on the validity of the union's
strike and on the wage and other economic issues
(including the retirement issue), the DOLE
Secretary ruled on the validity of the strike and on
the disputed CBA issues, and ordered the parties
to execute a CBA based on his rulings.
Did the Secretary of Labor exceed his jurisdiction
when he proceeded to rule on the parties' CBA
positions even though the parties did not fully
negotiate on their own? (8%)
VIII.
After thirty (30) years of service, Beta Company
compulsorily retired Albert at age 65 pursuant to
the company's Retirement Plan. Albert was duly
paid his full retirement benefits of one (1) month
pay for every year of service under the Plan.
Thereafter, out of compassion, the company
allowed Albert to continue working and paid him
his old monthly salary rate, but without the
allowances that he used to enjoy.
After five (5) years under this arrangement, the
company finally severed all employment relations
with Albert; he was declared fully retired in a
fitting ceremony but the company did not give him
any further retirement benefits. Albert thought
this treatment unfair as he had rendered full
service at his usual hours in the past five (5) years.
Thus, he filed a complaint for the allowances that
were not paid to him, and for retirement benefits
for his additional five (5) working years, based
either on the company's Retirement Plan or the
Retirement Pay Law, whichever is applicable.
(A) After Albert's retirement at age 65, should he
be considered a regular employee entitled to all
his previous salaries and benefits when the
company allowed him to continue working? (4%)
(B) Is he entitled to additional retirement benefits
for the additional service he rendered after age
65? (4%)
IX.
Pablo works as a driver at the National Tire
Company (NTC). He is a member of the Malayang
Samahan ng Manggagawa sa NTC, the exclusive
rank-and-file collective bargaining representative
in the company. The union has a CBA with NTC
which contains a union security and a check-off
clause. The union security clause contains a
maintenance of membership provision that
requires all members of the bargaining unit to
maintain their membership in good standing with
the union during the term of the CBA under pain of
dismissal. The check-off clause on the other hand
authorizes the company to deduct from union
members' salaries defined amounts of union dues
and other fees. Pablo refused to issue an
authorization to the company for the check-off of
his dues, maintaining that he will personally remit
his dues to the union.
(A) Would the NTC management commit unfair
labor practice if it desists from checking off Pablo's
union dues for lack of individual authorization
from Pablo? (4%)
(B) Can the union charge Pablo with disloyalty for
refusing to allow the check off of his union dues
and, on this basis, ask the company to dismiss him
from employment? (4%)
X.
For ten (10) separate but consecutive yearly
contracts, Cesar has been deployed as an able-
bodied seaman by Meritt Shipping, through its
local agent, Ace Maritime Services (agency), in
accordance with the 2000Philippine Overseas
Employment Administration Standard Employment
Contract (2000 POEA-SEC). Cesar's employment
was also covered by a CBA between the union,
AMOSl.JP, and Meritt Shipping. Both the 2000
POEA-SEC and the CBA commonly provide the
same mode and procedures for claiming disability
benefits. Cesar's last contract (for nine months)
expired on July 15, 2013.
Cesar disembarked from the vessel M/V Seven
Seas on July 16, 2013as a seaman on "finished
contract". He immediately reported to the agency
and complained that he had been experiencing
spells of dizziness, nausea, general weakness, and
difficulty in breathing. The agency referred him to
Dr. Sales, a cardio-pulmonary specialist, who
examined and treated him; advised him to take a
complete rest for a while; gave him medications;
and declared him fit to resume work as a seaman.
After a month, Cesar went back to the agency to
ask for re-deployment. The agency rejected his
application. Cesar responded by demanding total
disability benefits based on the ailments that he
developed and suffered while on board Meritt
Shipping vessels. The claim was based on the
certification of his physician (internist Dr. Reyes)
that he could no longer undertake sea duties
because of the hypertension and diabetes that
afflicted him while serving on Meritt Shipping
vessels in the last 10 years. Rejected once again,
Cesar filed a complaint for illegal dismissal and the
payment of total permanent disability benefits
against the agency and its principal.
Assume that you are the Labor Arbiter deciding the
case. Identify the facts and issues you would
consider material in resolving the illegal dismissal
and disability complaint. Explain your choices and
their materiality, and resolve the case. (8%)
MULTIPLE CHOICE QUESTIONS
I. The parties to a labor dispute can validly submit
to voluntary arbitration _________. (1%)
(A) any disputed issue they may agree to
voluntarily arbitrate
(B) only matters that do not fall within the
exclusive jurisdiction of the Labor Arbiter
(C) any disputed issue but only after conciliation at
the National Conciliation and Mediation Board fails
(D) any disputed issue provided that the Labor
Arbiter has not assumed jurisdiction over the case
on compulsory arbitration
(E) only matters relating to the interpretation or
implementation of a collective bargaining
agreement
II. When there is no recognized collective
bargaining agent, can a legitimate labor
organization validly declare a strike against the
employer? (1%)
(A) Yes, because the right to strike is guaranteed
by the Constitution and cannot be denied to any
group of employees.
(B) No, because only an exclusive bargaining agent
may declare a strike against the employer.
(C) Yes, because the right to strike is a basic human
right that the country's international agreements
and the International Labor Organization
recognize.
(D) Yes, but only in case of unfair labor practice.
(E) No, in the absence of a recognized bargaining
agent, the workers' recourse is to file a case before
the Department of Labor and Employment.
III.
Mr. Del Carmen, unsure if his foray into business
(messengerial service catering purely to law firms)
would succeed but intending to go long-term if he
hurdles the first year, opted to open his operations
with one-year contracts with two law firms
although he also accepts messengerial service
requests from other firms as their orders come. He
started with one permanent secretary and six (6)
messengers on a one-year, fixed-term, contract.
Is the arrangement legal from the perspective of
labor standards? (1%)
(A) No, because the arrangement will circumvent
worker's right to security of tenure.
(B) No. If allowed, the arrangement will serve as
starting point in weakening the security of tenure
guarantee.
(C) Yes, if the messengers are hired through a
contractor.
(D) Yes, because the business is temporary and the
contracted undertaking is specific and time-bound.
(E) No, because the fixed term provided is invalid.
IV. Chito was illegally dismissed by DEF Corp.
effective at the close of business hours of
December 29, 2009.
IV(1). He can file a complaint for illegal dismissal
without any legal bar within _________. (1%)
(A) three (3) years
(B) four (4) years
(C) five (5) years
(D) six (6) years
(E) ten (10) years
IV(2). If he has money claims against DEF Corp., he
can make the claim without any legal bar within
_________. (1%)
(A) three (3) years
(B) four (4) years
(C) five (5) years
(D) six (6) years
(E) ten (10) years
V. After vainly struggling to stay financially afloat
for a year, LMN Corp. finally gave up and closed
down its operations after its major creditors filed a
petition for LMN's insolvency and liquidation.
In this situation, LMN's employees are entitled to
_________ as separation pay. (1%)
(A) one-half month pay for every year of service
(B) one month pay for every year of service
(C) one-half month pay
(D) one month pay
(E) no separation pay at all
VI. At age 65 and after 20 years of sewing work at
home on a piece rate basis for PQR Garments, a
manufacturer-exporter to Hongkong, Aling Nena
decided it was time to retire and to just take it
easy.
Is she entitled to retirement pay from PQR? (1%)
(A) Yes, but only to one month pay.
(B) No, because she was not a regular employee.
(C) Yes, at the same rate as regular employees.
(D) No, because retirement pay is deemed
included in her contracted per piece pay.
(E) No, because homeworkers are not entitled to
retirement pay.
VII. The minimum wage prescribed by law for
persons with disability is __________. (1%)
(A) 50% of the applicable minimum wage
(B) 75% of the applicable minimum wage
(C) 100% of the applicable minimum wage
(D) the wage that the parties agree upon,
depending on the capability of the disabled.
(E) the wage that the parties agree upon,
depending on the capability of the disabled, but
not less than 50% of the applicable minimum wage
VIII. What is the financial incentive, if any, granted
by law to SPQ Garments whose cutters and sewers
in its garments-for-export operations are80%
staffed by deaf and deaf-mute workers? (1%)
(A) Additional deduction from its gross income
equivalent to 25% of amount paid as salaries to
persons with disability.
(B) Additional deduction from its gross income
equivalent to 50% of the direct costs of the
construction of facilities for the use of persons
with disability.
(C) Additional deduction from its net taxable
income equivalent to 5% of its total payroll
(D) Exemption from real property tax for one (1)
year of the property where facilities for persons
with disability have been constructed.
(E) The annual deduction under (A), plus a one-
time deduction under (B).
IX. Mr. Ortanez has been in the building
construction business for several years. He asks
you, as his new labor counsel, for the rules he
must observe in considering regular employment
in the construction industry.
You clarify that an employee, project or non-
project, will acquire regular status if __________.
(1%)
(A) he has been continuously employed for more
than one year
(B) his contract of employment has been
repeatedly renewed, from project to project, for
several years
(C) he performs work necessary and desirable to
the business, without a fixed period and without
reference to any specific project or undertaking
(D) he has lived up to the company's regularization
standards
(E) All of the above.
X. Samahang Tunay, a union of rank-and-file
employees lost in a certification election at Solam
Company and has become a minority union. The
majority union now has a signed CBA with the
company and the agreement contains a
maintenance of membership clause.
What can Samahang Tunay still do within the
company as a union considering that it still has
members who continue to profess continued
loyalty to it? (1%)
(A) It can still represent these members in
grievance committee meetings.
(B) It can collect agency fees from its members
within the bargaining unit.
(C) It can still demand meetings with the company
on company time.
(D) As a legitimate labor organization, it can
continue to represent its members on non-CBA-
related matters.
(E) None of the above.
(F) All of the above.
XI. The members of the administrative staff of
Zeta, a construction company, enjoy ten (10) days
of vacation leave with pay and ten (10) days of sick
leave with pay, annually. The workers' union,
Bukluran, demands that Zeta grant its workers
service incentive leave of five (5) days in
compliance with the Labor Code.
Is the union demand meritorious? (1%)
(A) Yes, because non-compliance with the law will
result in the diminution of employee benefits.
(B) Yes, because service incentive leave is a benefit
expresslyprovided under and required by the
Labor Code.
(C) No, because Zeta already complies with the
law.
(D) No, because service incentive leave is a Labor
Code benefit that does not apply in the
construction industry.
(E) Yes, because Labor Code benefits are separate
from those voluntarily granted by the company.
XII. Upon the expiration of the first three (3) years
of their CBA, the union and the company
commenced negotiations. The union demanded
that the company continue to honor their 30-day
union leave benefit under the CBA. The company
refused on the ground that the CBA had already
expired, and the union had already consumed their
union leave under the CBA.
Who is correct? (1%)
(A) The company is correct because the CBA has
expired; hence it is no longer bound to provide
union leave.
(B) The company is correct because the union has
already consumed the allotted union leave under
the expired CBA.
(C) The union is correct because it is still the
bargaining representative for the next two (2)
years.
(D) The union is correct because union leaves are
part of the economic terms that continue to
govern until new terms are agreed upon.
(E) They are both wrong.
XIII. Hector, a topnotch Human Resource Specialist
who had worked in multinational firms both in the
Philippines and overseas, was recruited by ABC
Corp., because of his impressive credentials. In the
course of Hector's employment, the company
management frequently did not follow his
recommendations and he felt offended by this
constant rebuff.
Thus, he toyed with the idea of resigning and of
asking for the same separation pay that ABC
earlier granted to two (2) department heads when
they left the company.
To obtain a legal opinion regarding his options,
Hector sent an email to ABC's retained counsel,
requesting for advice on whether the grant by the
company of separation pay to his resigned
colleagues has already ripened into a company
practice, and whether he can similarly avail of this
benefit if he resigns from his job.
As the company's retained legal counsel, how will
you respond to Hector? (1%)
(A) I would advise him to write management
directly and inquire about the benefits he can
expect if he resigns.
(B) I would advise him that the previous grant of
separation pay to his colleagues cannot be
considered a company practice because several
other employees had resigned and were not given
separation pay.
(C) I would advise him to ask for separation pay,
not on account of company practice, but on the
basis of discrimination as he is similarly situated as
the two resigned department heads who were
paid their separation pay.
(D) I would not give him any legal advice because
he is not my client.
(E) I would maintain that his question involves a
policy matter beyond the competence of a legal
counsel to give.

XIV. Aleta Quiros was a faculty member at BM
Institute, a private educational institution. She was
hired on a year-to-year basis under the
probationary employment period provision of the
Manual of Regulations for Private Schools. The
terms and conditions of her engagement were
defined under her renewable yearly contract.
For reasons of its own, BM Institute no longer
wanted to continue with Aleta's teaching services.
Thus, after the contract for her second year
expired, BM Institute advised Aleta that her
contract would no longer be renewed. This advice
prompted Aleta to file a complaint for illegal
dismissal against BM Institute.
Will the complaint prosper? (1%)
(A) Yes, because no just or authorized cause
existed for the termination of her probationary
employment.
(B) Yes, because under the Labor Code, Aleta
became a regular employee after 6 months and
she may now only be dismissed for cause.
(C) No, because there was no dismissal to speak of.
Her employment was automatically terminated
upon the expiration of her year-to-year fixed term
employment.
(D) No, because BM Institute may dismiss its
faculty members at will in the exercise of its
academic freedom.
(E) No, because Aleta was still on probationary
employment.
XV. Robert, an employee of ABC Company, is
married to Wanda. One day, Wanda visited the
company office with her three (3) emaciated minor
children, and narrated to the Manager that Robert
had been squandering his earnings on his mistress,
leaving only a paltry sum for the support of their
children. Wanda tearfully pleaded with the
Manager to let her have one half of Robert's pay
every payday to ensure that her children would at
least have food on the table. To support her plea,
Wanda presented a Kasulatan signed by Robert
giving her one half of his salary, on the condition
that she would not complain if he stayed with his
mistress on weekends.
If you were the Manager, would you release one
half of Robert's salary to Wanda? (1%)
(A) No, because an employer is prohibited from
interfering with the freedom of its employees to
dispose of heir wages.
(B) Yes, because of Robert's signed authorization
to give Wanda one half of his salary.
(C) No, because there is no written authorization
for ABC Company to release Robert's salary to
Wanda.
(D) Yes, because it is Robert's duty to financially
support his minor children.
(E) No, because Robert's Kasulatan is based on an
illegal consideration and is of doubtful legal
validity.
XVI. Ricardo operated a successful Makati seafood
restaurant patronized by a large clientele base for
its superb cuisine and impeccable service. Ricardo
charged its clients a 10% service charge and
distributed 85% of the collection equally among its
rank-and-file employees, 10% among managerial
employees, and 5% as reserve for losses and break
ages. Because of the huge volume of sales, the
employees received sizeable shares in the
collected service charges.
As part of his business development efforts,
Ricardo opened a branch in Cebu where he
maintained the same practice in the collection and
distribution of service charges. The Cebu branch,
however, did not attract the forecasted clientele;
hence, the Cebu employees received lesser service
charge benefits than those enjoyed by the Makati-
based employees. As a result, the Cebu branch
employees demanded equalization of benefits and
filed a case with the NLRC for discrimination when
Ricardo refused their demand.
XVI(l) Will the case prosper? (1%)
(A) Yes, because the employees are not receiving
equal treatment in the distribution of service
charge benefits.
(B) Yes, because the law provides that the 85%
employees' share in the service charge collection
should be equally divided among all the
employees, in this case, among the Cebu and
Makati employees alike.
(C) No, because the employees in Makati are not
similarly situated as the Cebu employees with
respect to cost of living and conditions of work.
(D) No, because the service charge benefit
attaches to the outlet where service charges are
earned and should be distributed exclusively
among the employees providing service in the
outlet.
(E) No, because the market and the clientele the
two branches are serving, are different.
XVI(2). In order to improve the Cebu service and
sales, Ricardo decided to assign some of its
Makati-based employees to Cebu to train Cebu
employees and expose them to the Makati
standard of service. A chef and three waiters were
assigned to Cebu for the task. While in Cebu, the
assigned personnel shared in the Cebu service
charge collection and thus received service charge
benefits lesser than what they were receiving in
Makati.
If you were the lawyer for the assigned personnel,
what would you advice them to do? (1%)
(A) I would advise them to file a complaint for
unlawful diminution of service charge benefits and
for payment of differentials.
(B) I would advise them to file a complaint for
illegal transfer because work in Cebu is highly
prejudicial to them in terms of convenience and
service charge benefits.
(C) I would advise them to file a complaint for
discrimination in the grant of service charge
benefits.
(D) I would advise them to accept their Cebu
training assignment as an exercise of the
company's management prerogative.
(E) I would advise them to demand the
continuation of their Makati-based benefits and to
file a complaint under (B)above if the demand is
not heeded.
XVII. Constant Builders, an independent
contractor, was charged with illegal dismissal and
non-payment of wages and benefits of ten
dismissed employees. The complainants
impleaded as co-respondent Able Company,
Constant Builder's principal in the construction of
Able's office building. The complaint demanded
that Constant and Able be held solidarily liable for
the payment of their backwages, separation pay,
and all their unpaid wages and benefits.
If the Labor Arbiter rules in favor of the
complainants, choose the statement that best
describes the extent of the liabilities of Constant
and Able. (1%)
(A) Constant and Able should be held solidarily
liable for the unpaid wages and benefits, as well as
backwages and separation pay, based on Article
109 of the Labor Code which provides that "every
employer or indirect employer shall be held
responsible with his contractor or subcontractor
for any violation of any provision of this Code."
(B) Constant and Able should be held solidarily
liable for the unpaid wages and benefits, and
should order Constant, as the workers' direct
employer, to be solely liable for the backwages
and separation pay.
(C) Constant and Able should be held solidarily
liable for the unpaid wages and benefits and the
backwages since these pertain to labor standard
benefits for which the employer and contractor
are liable under the law, while Constant alone – as
the actual employer - should be ordered to pay the
separation pay.
(D) Constant and Able should be held solidarily
liable for the unpaid wages and benefits, and
Constant should be held liable for their backwages
and separation pay unless Able is shown to have
participated with malice or bad faith in the
workers' dismissal, in which case both should be
held solidarily liable.
(E) The above statements are all inaccurate.
XVIII. The Pinagbuklod union filed a Petition for
Certification Election, alleging that it was a
legitimate labor organization of the rank-and-file
employees of Delta Company. On Delta's motion,
the Med Arbiter dismissed the Petition, based on
the finding that Pinagbuklod was not a legitimate
labor union and had no legal personality to file a
Petition for Certification Election because its
membership was a mixture of rank-and-file and
supervisory employees.
Is the dismissal of the Petition for Certification
Election by the Med-Arbiter proper? (1%)
(A) Yes, because Article 245 of the Labor Code
prohibits supervisory employees from joining the
union of the rank and file employees and provides
that a union representing both rank and file and
supervisory employees as members is not a
legitimate labor organization.
(B) No, because the grounds for the dismissal of a
petition for certification election do not include
mixed membership in one umon.
(C) No, because a final order of cancellation of
union registration is required before a petition for
certification election may be dismissed on the
ground of lack of legal personality of the umon.
(D) No, because Delta Company did not have the
legal personality to participate in the certification
election proceedings and to file a motion to
dismiss based on the legitimacy status of the
petitioning union.
 POLITICAL &
INTERNATIONAL LAW
(2013)

I.
In the last quarter of 2012, about 5,000 container
vans of imported goods intended for the Christmas
Season were seized by agents of the Bureau of
Customs. The imported goods were released only
on January 10,2013. A group of importers got
together and filed an action for damages before
the Regional Trial Court of Manila against the
Department of Finance and the Bureau of
Customs.
The Bureau of Customs raised the defense of
immunity from suit and, alternatively, that liability
should lie with XYZ Corp. which the Bureau had
contracted for the lease of ten (10) high powered
van cranes but delivered only five (5) of these
cranes, thus causing the delay in its cargo-handling
operations. It appears that the Bureau, despite
demand, did not pay XYZ Corp. the Php 1.0 Million
deposit and advance rental required under their
contract.

(A) Will the action by the group of importers
prosper? (5%)
(B) Can XYZ Corp. sue the Bureau of Customs to
collect rentals for the delivered cranes? (5'%)
II.
While Congress was in session, the President
appointed eight acting Secretaries. A group of
Senators from the minority bloc questioned the
validity of the appointments in a petition before
the Supreme Court on the ground that while
Congress is in session, no appointment that
requires confirmation by the Commission on
Appointments, can be made without the latter's
consent, and that an undersecretary should
instead be designated as Acting Secretary.
Should the petition be granted? (5%)
III.
A robbery with homicide had taken place and Lito,
Badong and Rolliewere invited for questioning
based on the information furnished by a neighbor
that he saw them come out of the victim's house
at about the time of the robbery/killing. The police
confronted the three with this and other
information they had gathered, and pointedly
accused them of committing the crime.
Lito initially resisted, but eventually broke down
and admitted his participation in the crime. Elated
by this break and desirous of securing a written
confession soonest, the police called City Attorney
Juan Buan to serve as the trio's counsel and to
advise them about their rights during the
investigation.
Badong and Rollie, weakened in spirit by Lito's
early
admission, likewise admitted their participation.
The trio thus signed a joint extra-judicial
confession which served as the main evidence
against them at their trial. They were convicted
based on their confession.
Should the judgment of conviction be affirmed or
reversed on appeal? (5%)
IV.
Congress enacted a law providing for trial by jury
for those charged with crimes or offenses
punishable by reclusion perpetua or life
imprisonment. The law provides for the
qualifications of members of the jury, the
guidelines for the bar and bench for their
selection, the manner a trial by jury shall operate,
and the procedures to be followed.
Is the law constitutional? (6%)
V.
As a leading member of the Lapiang Mandirigma in
the House of Representatives, you were tasked by
the party to initiate the moves to impeach the
President because he entered into an executive
agreement with the US Ambassador for the use of
the former Subic Naval Base by the US Navy, for
free, i.e., without need to pay rent nor any kind of
fees as a show of goodwill to the U.S. because of
the continuing harmonious RP-US relations.
Cite at least two (2) grounds for impeachment and
explain why you chose them. (6%)
VI.
Congress passed Republic Act No. 7711 to comply
with the United Nations Convention on the Law of
the Sea.
In a petition filed with the Supreme Court, Anak Ti
Ilocos, an association of Ilocano professionals,
argued that Republic Act No. 7711discarded the
definition of the Philippine territory under the
Treaty of Paris and in related treaties; excluded the
Kalayaan Islands and the Scarborough Shoals from
the Philippine Archipelagic baselines; and
converted internal waters into archipelagic waters.
Is the petition meritorious? (6%)
VII.
As he was entering a bar, Arnold -who was holding
an unlit cigarette in his right hand -was handed a
match box by someone standing near the
doorway. Arnold unthinkingly opened the
matchbox to light his cigarette and as he did so, a
sprinkle of dried leaves fell out, which the guard
noticed. The guard immediately frisked Arnold,
grabbed the matchbox, and sniffed its contents.
After confirming that the matchbox contained
marijuana, he immediately arrested Arnold and
called in the police.
At the police station, the guard narrated to the
police that he personally caught Arnold in
possession of dried marijuana leaves. Arnold did
not contest the guard's statement; he steadfastly
remained silent and refused to give any written
statement. Later in court, the guard testified and
narrated the statements he gave the police over
Arnold's counsel's objections. While Arnold
presented his own witnesses to prove that his
possession and apprehension had been set-up, he
himself did not testify.
The court convicted Arnold, relying largely on his
admission of the charge by silence at the police
investigation and during trial.
From the constitutional law perspective, was the
court correct in its ruling? (6%)
VIII.
Bobby, an incoming third year college student, was
denied admission by his university, a premiere
educational institution in Manila, after he failed in
three (3) major subjects in his sophomore year.
The denial of admission was based on the
university's rules and admission policies.
Unable to cope with the depression that his non-
admission triggered, Bobby committed suicide. His
family sued the school for damages, citing the
school's grossly unreasonable rules that resulted in
the denial of admission. They argued that these
rules violated Bobby's human rights and the
priority consideration that the Constitution gives
to the education of the youth.
You are counsel for the university. Explain your
arguments in support of the university's case. (6%)
IX.
Conrad is widely known in the neighborhood as a
drug addict. He is also suspected of being a
member of the notorious "Akyat-Condo Gang" that
has previously broken into and looted
condominium units in the area.
Retired Army Colonel Sangre – who is known as an
anti-terrorism fighter who disdained human and
constitutional rights and has been nicknamed
"terror of Mindanao" –is now the Head of Security
of Capricorn Land Corporation, the owner and
developer of Sagittarius Estates where a series of
robberies has recently taken place.
On March l, 2013, Conrad informed his mother,
Vannie, that uniformed security guards had invited
him for a talk in their office but he refused to
come. Later that day, however, Conrad appeared
to have relented; he was seen walking into the
security office flanked by two security guards.
Nobody saw him leave the office afterwards.
Conrad did not go home that night and was never
seen again. The following week and after a week-
long search, Vannie feared the worst because of
Col. Sangre's reputation. She thus reported
Conrad's disappearance to the police. When
nothing concrete resulted from the police
investigation, Vannie – at the advice of counsel -
f1led a petition for a writ of amparo to compel Col.
Sangre and the Sagittarius Security Office to
produce Conrad and to hold them liable and
responsible for Conrad's disappearance.
(A) Did Vannie's counsel give the correct legal
advice? (6%)
(B) If the petition would prosper, can Col. Sangre
be held liable and/or responsible for Conrad's
disappearance? (6%)
X.
The Ambassador of the Republic of Kafiristan
referred to you for handling, the case of the
Embassy's Maintenance Agreement with CBM, a
private domestic company engaged in
maintenance work. The Agreement binds CBM, for
a defined fee, to maintain the Embassy's elevators,
air-conditioning units and electrical facilities.
Section 10 of the Agreement provides that the
Agreement shall be governed by Philippine laws
and that any legal action shall be brought before
the proper court of Makati. Kafiristan terminated
the Agreement because CBM allegedly did not
comply with their agreed maintenance standards.
CBM contested the tennination and filed a
complaint againstKafiristan before the Regional
Trial Court of Makati. The Ambassador wants you
to file a motion to dismiss on the ground of state
immunity from suit and to oppose the position
that under Section 10 of the Agreement, Kafiristan
expressly waives its immunity from suit.
Under these facts, can the Embassy successfully
invoke immunity from suit? (6%)
XI.
In her interview before the Judicial and Bar Council
(JBC),Commissioner Annie Amorsolo of the
National Labor Relations Commission claims that
she should be given credit for judicial service
because as NLRC Commissioner, she has the rank
of a Justice of the Court of Appeals; she
adjudicates cases that are appealable to the Court
of Appeals; she is assigned car plate No. 10; and
she is, by law, entitled to the rank, benefits and
privileges of a Court of Appeals Justice.
If you are a member of the JBC, would you give
credit to this explanation? (6%)
XII.
In the May 2013 elections, the Allied Workers'
Group of the Philippines (AWGP), representing
land-based and sea-based workers in the
Philippines and overseas, won in the party list
congressional elections. Atty. Abling, a labor
lawyer, is its nominee.
As part of the party's advocacy and services,
Congressman Abling engages in labor counseling,
particularly for local workers with claims against
their employers and for those who need
representation in collective bargaining
negotiations with employers. When labor cases
arise, AWGP enters its appearance in
representation of the workers and the
Congressman makes it a point to be there to
accompany the workers, although a retained
counsel also formally enters his appearance and is
invariably there. Congressman Abling largely takes
a passive role in the proceedings although he
occasionally speaks to supplement the retained
counsel's statements. It is otherwise in CBA
negotiations where he actively participates.
Management lawyers, feeling that a congressman
should not actively participate in cases before
labor tribunals and before employers because of
the influence a congressman can wield, filed a
disbarment case against the Congressman before
the Supreme Court for his violation of the Code of
Professional Responsibility and for breach of trust,
in relation particularly with the prohibitions on
legislators under the Constitution.
Is the cited ground for disbarment meritorious?
(6%)
MULTIPLE CHOICE QUESTIONS
I. The equal protection clause is violated by
__________. (1%)
(A) a law prohibiting motorcycles from plying on
limited access highways.
(B) a law granting Value Added Tax exemption to
electric cooperatives that sells electricity to the
"homeless poor."
(C) a law providing that a policeman shall be
preventively suspended until the termination of a
criminal case against him.
(D) a law providing higher salaries to teachers in
public schools who are "foreign hires."
(E) a law that grants rights to local Filipino workers
but denies the same rights to overseas Filipino
workers.
II. Offended by the President's remarks that the
Bureau of Customs is a pit of misfits and the
corrupt, the Bureau of Customs Employees
Association composed of 3,000 workers seeks your
legal advice on how best to protest what it views
to be the President's baseless remarks.
A prudent legal advice is that __________. (1%)
(A) employees can go on mass leave of absence for
one week
(B) employees can march and rally at Mendiola
every Monday
(C) employees can barricade the gates of the Port
of Manila at South Harbor and call for the
resignation of the incumbent Commissioner of
Customs
(D) employees can wear black arm bands and pins
with the word "UNFAIR" inscribed
(E) None of the above can legally be done.
III. Congress enacted Republic Act No. 1234
requiring all candidates for public offices to post an
election bond equivalent to the one (1) year salary
for the position for which they are candidates. The
bond shall be forfeited if the candidates fail to
obtain at least 10% of the votes cast.
Is Republic Act No. 1234 valid? (1%)
(A) It is valid as the bond is a means of ensuring
fair, honest, peaceful and orderly elections.
(B) It is valid as the bond requirement ensures that
only candidates with sufficient means and who
cannot be corrupted, can runfor public office.
(C) It is invalid as the requirement effectively
imposes a property qualification to run for public
office.
(D) It is invalid as the amount of the surety bond is
excessive and unconscionable.
(E) It is valid because it is a reasonable
requirement; the Constitution itself expressly
supports the accountability of public officers.
IV. What is the legal effect of decisions of the
International Court of Justice in cases submitted to
it for resolution? (1%)
(A) The decision is binding on other countries in
similar situations.
(B) The decision is not binding on any country,
even the countries that are parties to the case.
(C) The decision is binding only on the parties but
only with respect to that particular case.
(D) The decision is not binding on the parties and is
only advisory.
(E) The binding effect on the parties depends on
their submission agreement.
V. Under the UN Convention on the Law of the
Sea, the exclusive economic zone refers to an area.
(1%)
(A) that is at least 100 miles from the baselines
from which the outer limit of the territorial sea is
measured
(B) that is at least 200 miles but not to exceed 300
miles from the baselines from which the outer
limit of the territorial sea is measured
(C) beyond and adjacent to a country's territorial
sea which cannot go beyond 200 nautical miles
from the baselines from which the outer limit of
the territorial sea is measured
(D) that can go beyond 3 nautical miles but cannot
extend 300 nautical miles from the baselines from
which the outer limit of the territorial sea is
measured
(E) None of the above.
VI. A child born under either the 1973 or the 1987
Constitution, whose father or mother is a Filipino
citizen at the time of his birth, is __________. (1%)
(A) not a Filipino citizen as his father and mother
must both be Filipino citizens at the time of his
birth
(B) not a Filipino citizen if his mother is a Filipino
citizen but his father is not, at the time of his birth
(C) a Filipino citizen no matter where he or she
may be born
(D) a Filipino citizen provided the child is born in
the Philippines
(E) a Filipino citizen if he or she so elects upon
reaching the age of 21
VII. Who has control of the expenditure of public
funds? (1%)
(A) The Office of the President through the
Department of Budget and Management.
(B) The House of Representatives from where all
appropriation bills emanate.
(C) The Senate through its Committee on Finance.
(D) The Congress of the Republic of the Philippines.
(E) Both the members of Congress and the
President acting jointly, if so provided by the
General Appropriations Act.
VIII. May the power of cities to raise revenues be
limited by an executive order of the President?
(1%)
(A) Yes, because local government units are under
the administrative control of the President through
the Department of Interior and Local Government.
(B) No, because local government units now enjoy
full local fiscal autonomy.
(C) No, because only limitations established by
Congress can define and limit the powers of local
governments.
(D) Yes, because the President has the power and
authority to impose reasonable restrictions on the
power of cities to raise revenues.
(E) Yes, if so provided in a city's charter.
IX. The provision under the Constitution -that any
member who took no part, dissented, or inhibited
from a decision or resolution must state the
reason for his dissent or non-participation - applies
__________. (1%)
(A) only to the Supreme Court
(B) to both the Supreme Court and the Court of
Appeals
(C) to the Supreme Court, Court of Appeals and the
Sandiganbayan
(D) to the Supreme Court, the Court of Appeals,
the Sandiganbayan and the Court of Tax Appeals
(E) to all collegial judicial and quasi-judicial
adjudicatory bodies
X. Choose the least accurate statement about the
independence guaranteed by the 1987
Constitution to the following constitutional bodies:
(1%)
(A) The Constitution guarantees the COMELEC
decisional and institutional independence similar
to that granted to theJudiciary.
(B) All bodies labeled as "independent" by the
Constitution enjoyfiscal autonomy as an attribute
of their independence.
(C) Not all bodies labeled as "independent" by the
Constitution were intended to be independent
from the Executive branch of government.
(D) The Constitution guarantees various degrees of
independence from the other branches of
government when it labels bodies as
"independent".
(E) The COMELEC, the COA, and the CSC enjoy the
same degree of independence.
XI. At the Senate impeachment trial of Justice
Pablo P. San Quintin, Hon. Emilio A. Tan,
Congressman and Impeachment Panel Manager,
wrote the Supreme Court requesting that the
prosecutors be allowed to examine thecourt
records of Stewards Association of the Philippines,
Inc. (SAP!) v. Filipinas Air, et al., G.R. No. 987654, a
case that is still pending. The High Court
__________. (1%)
(A) may grant the request by reason of inter-
departmental courtesy
(B) may grant the request as the records of the
Filipinas Air case are public records
(C) should deny the request since records of cases
that are pending for decision are privileged except
only for pleadings, orders and resolutions that are
available to the public
(D) should deny the request because it violates the
Court's independence and the doctrine of
separation of powers
(E) should grant the request because of the sui
generis nature of the power of impeachment,
provided that the Bill of Rights is not violated
XII. Mr. Sinco sued the government for damages.
After trial, the court ruled in his favor and awarded
damages amounting to P50 million against the
government. To satisfy the judgment against the
government, which valid option is available to Mr.
Sinco? ( 1%)
(A) Garnish the government funds deposited at the
Land Bank.
(B) File a claim with the Commission on Audit
(COA) pursuant to Commonwealth Act 327, as
amended by Presidential Decree1445.
(C) Make representations with the Congress to
appropriate the amount to satisfy the judgment.
(D) File a petition for mandamus in court to
compel Congress to appropriate P50 million to
satisfy the judgment.
(E) Proceed to execute the judgment as provided
by the Rules of Court because the State allowed
itself to be sued.
XIII. Which of the following provisions of the
Constitution does not confer rights that can be
enforced in the courts but only provides guidelines
for legislative or executive action? (l%)
(A) The maintenance of peace and order, the
protection of life, liberty, and property, and
promotion of the general welfare are essential for
the enjoyment by all the people of the blessings of
democracy.
(B) The State shall give priority to education,
science and technology, arts, culture, and sports to
foster patriotism and nationalism, accelerate social
progress, and promote total human liberation and
development.
(C) The natural and primary right and duty of
parents in the rearing of the youth for civic
efficiency and the development of moral character
shall receive the support of the Government.
(D) The right of the people to information on
matters. of public concern shall be recognized.
Access to official records, and to documents and
papers pertaining to official acts, transactions, or
decisions, as well as to government research data
used as basis for policy development, shall be
afforded the citizen, subject to such limitations as
may be provided by law.
(E) All the above only provide guidelines and are
not self-executing.
XIV. The President entered into an executive
agreement with Vietnam for the supply to the
Philippines of animal feeds not to exceed 40,000
tons in any one year. The Association of Animal
Feed Sellers of the Philippines questioned the
executive agreement for being contrary to R.A. 462
which prohibits the importation of animal feeds
from Asian countries. Is the challenge correct?
(1%)
(A) Yes, the executive agreement is contrary to an
existing domestic law.
(B) No, the President is solely in charge of foreign
relations and all his actions in this role form part of
the law of the land.
(C) No, international agreements are sui generis
and stand independently of our domestic laws.
(D) Yes, the executive agreement is actually a
treaty which does not take effect without
ratification by the Senate.
(E) Yes, the challenge is correct because there is no
law empowering the President to undertake the
importation.
XV. The separation of Church and State is most
clearly violated when __________. (1%)
(A) the State funds a road project whose effect is
to make a church more accessible to its adherents
(B) the State declares the birthplace of a founder
of a religious sect as a national historical site
(C) the State expropriates church property in order
to construct an expressway that, among others,
provides easy access to the Church's main
cathedral
(D) the State gives vehicles to bishops to assist
them in church-related charitable projects
(E) the State allows prayers in schools for minor
children without securing the prior consent of
their parents
XVI. Patricio was elected member of the House of
Representative in the May 2010 Elections. His
opponent Jose questioned Patricio's victory before
the House of Representatives Electoral Tribunal
and later with the Supreme Court.
In a decision promulgated in November 2011, the
Court ruled in Jose's favor; thus, Patricio was
ousted from his seat in Congress. Within a year
from that decision, the President can appoint
Patricio __________. (1%)
(A) only as a member of the board of directors of
any government owned and controlled
corporation
(B) only as a deputy Ombudsman
(C) only as a Commissioner of the Civil Service
Commission
(D) only as Chairman of the Commission on
Elections
(E) to any position as no prohibition applies to
Patricio
XVII. Senator GSC proposed a bill increasing excise
taxes on tobacco and alcohol products. The
generated incremental revenues shall be used for
the universal health care program for all Filipinos
and for tobacco farmers' livelihood. After the
Senate passed the bill on third reading, it was
transmitted to the House of Representatives which
approved the bill in toto. The President eventually
signed it into law. Atty. JFC filed a petition before
the Supreme Court, questioning the
constitutionality of the new law.
Is the law constitutional? (1%)
(A) The law is constitutional because it is for a
public purpose and has duly satisfied the three-
readings-on-separate-days rule in both Houses.
(B) The law is unconstitutional because it violates
the equal protection clause of the Constitution; it
is limited only to alcohol and liquor products.
(C) It is constitutional because of the Enrolled Bill
Theory.
(D) It is constitutional because it is valid in form
and substance and complied with the required
lawmaking procedures.(E) None of the above is
correct.
XVIII. Which of the following statements is correct?
(1%)
(A) The President, with the concurrence of the
Monetary Board, can guarantee a foreign loan on
behalf of the Republic of the Philippines.
(B) Congress may, by law, provide limitations on
the President's power to contract or guarantee
foreign loans on behalf of the Republic of the
Philippines.
(C) In order to be valid and effective, treaties and
executive agreements must be concurred in by at
least two-thirds of all the Members of the Senate.
(D) The President shall, at the end of every quarter
of the calendar year, submit to Congress a
complete report of the loans contracted or
guaranteed by the Government or government-
owned and controlled corporations.
(E) All the above choices are defective in some
respects.
XIX. Candida has been administratively charged of
immorality for openly living with Manuel, a
married man. Candida argues that her conjugal
arrangement with Manuel fully conforms with
their religious beliefs and with the teachings of
their church.
In resolving whether Candida should be
administratively penalized, which is the best test
to apply? (1%)
(A) Clear and Present Danger Test
(B) Compelling State Interest Test
(C) Balancing of interests Test
(D) Conscientious Objector Test
(E) Dangerous Tendency Test
XX. Rafael questioned the qualifications of Carlos
as congressman of the Third District of Manila on
the ground that Carlos is a citizen of the USA. The
decision disqualifying Carlos for being a US citizen
came only in March 2010, i.e., after the
adjournment of the session of Congress on the 3'd
year of the position's three-year term.

What was Carlos' status during his incumbency as

congressman? (1%)

(A) He was a de jure officer, having been duly

elected and proclaimed.
(B) He was not a public officer because he
effectively was not entitled to be a congressman.
(C) He was a de jure officer since he completed the
service of his term before he was disqualified.
(D) He was a de facto officer since he had served
and was only disqualified later.
(E) He neither possesses de jure nor de facto status
as such determination is pointless.