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1 M - Multiple choice questions for RA 11607

BS Accountancy (University of Baguio)

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ANS # STATEMENT AND CHOICES

A 1 Republic Act No. 10667 is also known as?
A. PHILIPPINE COMPETITION ACT
B. CONSUMER ACT OF THE PHILIPPINES
C. GOVERNMENT PROCUREMENT LAW
D. TOY AND GAME SAFETY LABELING ACT OF 2013
A 2 Statement 1: The efficiency of market competition as a mechanism for
allocating goods and services is a generally accepted precept.

Statement 2: The State recognizes that past measures undertaken to liberalize

key sectors in the economy need to be reinforced by measures that safeguard
competitive conditions.
A. BOTH STATEMENTS ARE CORRECT
B. BOTH STATEMENTS ARE INCORRECT
C. ONLY STATEMENT 1 IS CORRECT
D. ONLY STATEMENT 2 IS CORRECT
C 3 Statement 1: RA 10667 shall likewise be applicable to international trade
having direct, substantial, and reasonably foreseeable effects in trade,
industry, or commerce in the Republic of the Philippines.

Statement 2:RA 10667 shall apply to combinations or activities of workers or

employees nor to agreements or arrangements with their employers.
A. BOTH STATEMENTS ARE CORRECT
B. BOTH STATEMENTS ARE INCORRECT
C. ONLY STATEMENT 1 IS CORRECT
D. ONLY STATEMENT 2 IS CORRECT
B 4 It refers to any type or form of contract, arrangement,
understanding, collective recommendation, or concerted action, whether
formal or informal, explicit or tacit.

A. DOCUMENT
B. AGREEMENT
C. TRANSACTION
D. RECEIPT
B 5 Which of the following is an independent quasi-judicial body created to
implement the national competition policy and attain the objectives and
purposes of RA 10667?
A. ASSOCIATION OF PHILIPPINE COMPETITION
B. PHILIPPINE COMPETITION COMMISSION
C. THE PHILIPPINE COMPETITION ORGANIZATION
D. PROTECTION AND SAFETY OF COMPETITORS IN THE
PHILIPPINES COMMISSION
A 6 Statement 1: The Commission on the national competition shall be composed
of a Chairperson and four Commissioners.

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Statement 2: The Chairperson and the Commissioners shall be citizens and

residents of the Philippines, of good moral character, of recognized probity
and independence and must have distinguished themselves professionally in
public, civic or academic.
A. BOTH STATEMENTS ARE CORRECT
B. BOTH STATEMENTS ARE INCORRECT
C. ONLY STATEMENT 1 IS CORRECT
D. ONLY STATEMENT 2 IS CORRECT
C 7 Statement 1: The term of office of the Chairperson and the Commissioners
shall be seven (7) years without reappointment.

Statement 2: In case a vacancy occurs before the expiration of the term of

office, the appointment to such vacancy shall only be for the expired term of
the predecessor.
A. BOTH STATEMENTS ARE CORRECT
B. BOTH STATEMENTS ARE INCORRECT
C. ONLY STATEMENT 1 IS CORRECT
D. ONLY STATEMENT 2 IS CORRECT
D 8 Statement 1: The Commissioners shall hold any other office or employment
during their tenure.

Statement 2: No spouse or relative by consanguinity or affinity within the

fourth civil degree of any of the Commissioners may appear as counsel during
the incumbency of the Comissioner.

A. BOTH STATEMENTS ARE CORRECT

B. BOTH STATEMENTS ARE INCORRECT
C. ONLY STATEMENT 1 IS CORRECT
D. ONLY STATEMENT 2 IS CORRECT
C 9 It refers to the group of goods or services that are sufficiently interchangeable
or substitutable and the object of competition, and the geographic area where
said goods or services are offered.
A. PACKAGE
B. PARCEL
C. MARKET
D. MERCHANDISE
A 10 Statement 1: Three members of the Commission shall
constitute a quorum and the affirmative vote of three members shall be
necessary for the adoption of any rule, ruling, order, resolution, decision or
other acts of the Commission.

Statement 2: The compensation and other emoluments for the members and
personnel of the Commission shall be exempted from the coverage of "Salary
Standardization Act"
A. BOTH STATEMENTS ARE CORRECT

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B. BOTH STATEMENTS ARE INCORRECT

C. ONLY STATEMENT 1 IS CORRECT
D. ONLY STATEMENT 2 IS CORRECT
B 11 He shall be appointed by the Commission and shall have relevant experience
in any of the fields of law, economics, commerce, management, finance or
engineering for at least ten (10) years.
A. PRESIDENT
B. EXECUTIVE DIRECTOR
C. SECRETARY
D. TREASURER

D 12 The Philippine Competition Commission shall exercise the following powers

and functions, except?
A. CONDUCT INQUIRY, INVESTIGATE, AND HEAR AND DECIDE
ON CASES INVOLVING ANY VIOLATION OF THIS ACT AND
OTHER EXISTING COMPETITION LAWS MOTU PROPRIO.
B. REVIEW PROPOSED MERGERS AND ACQUISITIONS,
DETERMINE THRESHOLDS FOR NOTIFICATION.
C. CONDUCT ADMINISTRATIVE PROCEEDINGS, IMPOSE
SANCTIONS, FINES OR PENALTIES FOR ANY
NONCOMPLIANCE WITH OR BREACH OF RA 10667.
D. RESEARCH COMPANIES WITH THE HIGHEST ACQUIRED
ENTITY AND IMPOSED FINES
A 13 The Office for Competition under the Department of Justice (DOJ-OFC) shall
only conduct _______investigation and undertake prosecution of all criminal
offenses arising under this Act.
A. PRELIMINARY
B. FINAL
C. EXPLICIT
D. IMPLICIT
A 14 The following agreements, between or among competitors, are per se
prohibited, except?

A. NON-RESTRICTION OF COMPETITION AS TO PRICE, OR

COMPONENTS THEREOF, OR OTHER TERMS OF TRADE.
B. FIXING PRICE AT AN AUCTION OR IN ANY FORM OF
BIDDING INCLUDING COVER BIDDING, BID SUPPRESSION,
BID ROTATION AND MARKET ALLOCATION AND OTHER
ANALOGOUS PRACTICES OF BID MANIPULATION
C. SETTING, KITING, OR CONTROLLING PRODUCTION,
MARKETS, TECHNICAL DEVELOPMENT, OR INVESTMENT
D. DIVIDING OR SHARING THE MARKET, WHETHER BY
VOLUME OF SALES OR PURCHASES, TERRITORY, TYPE OF
GOODS OR SERVICES, BUYERS OR SELLERS OR ANY OTHER
MEANS
B 15 It shall be ____ for one or more entities to abuse their dominant position by

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engaging in conduct
that would substantially prevent, restrict or lessen competition.
A. PERMITTED
B. PROHIBITED
C. ALLOWED
D. STATUTORY
D 16 The Commission shall have the power to review mergers and acquisitions
based on factors
deemed relevant by the ?
A. STATE
B. DOJ
C. DTI
D. COMMISSION
D 17 Statement 1: Parties to the merger or acquisition agreement referred to in the
preceding section wherein the value of the transaction exceeds one billion
pesos (P1,000,000,000.00) are allowed from consummating their agreement
until thirty (30) days
after providing notification.

Statement 2: An agreement consummated in violation of this requirement to

notify the Commission shall be considered void and subject the parties to an
administrative fine of one percent to five percent of the value of the
transaction.
A. BOTH STATEMENTS ARE CORRECT
B. BOTH STATEMENTS ARE INCORRECT
C. OLY STATEMENT 1 IS CORECT
D. ONLY STATEMENT 2 IS CORRECT
B 18 Statement 1: The Commission may not prohibit the implementation of the
agreement unless until it is
modified by changes specified by the Commission, as the effect of the
notification.

Statement 2: The Commissioner may prohibit the implementation of the

agreement unless and until the
pertinent party or parties enter into legally unenforceable agreements
specified by the Commission.
A. BOTH STATEMENTS ARE CORRECT
B. BOTH STATEMENTS ARE INCORRECT
C. OLY STATEMENT 1 IS CORECT
D. ONLY STATEMENT 2 IS CORRECT
D 19 The Philippine Competition Commission shall, from time
to time, adopt and publish regulations stipulating the following, except?

A. THE TRANSACTION VALUE THRESHOLD AND SUCH OTHER

CRITERIA SUBJECT TO THE NOTIFICATION
B. THE INFORMATION THAT MUST BE SUPPLIED FOR NOTIFIED

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MERGER OR ACQUISITION
C. EXCEPTIONS OR EXEMPTIONS FROM THE NOTIFICATION
REQUIREMENT
D. LIST OF THE MAIN COMPETITORS IN A CERTAIN AREA
B 20 Merger or acquisition agreements that substantially prevent, restrict or lessen
competition in the relevant market or in the market for goods or services as
may be
determined by the Commission shall be?
A. PERMITTED
B. PROHIBITED
C. ALLOWED
D. STATUTORY
A 21 It refers to the purchase of securities or assets, through
contract or other means, for the purpose of obtaining control.
A. ACQUISITION
B. MERGER
C. UNIFICATION
D. PARTITION
B 22 It refers to the joining of two or more entities into an existing entity or to form
a new entity?
A. ACQUISITION
B. MERGER
C. UNIFICATION
D. PARTITION
C 23 Merger or acquisition agreements that have received ______ ruling from the
Commission, except when such ruling was obtained on the basis of fraudor
false material information, may not be challenged under this RA10667.
A. UNFAVORABLE
B. UNBIASED
C. A FAVORABLE
D. A NEGATIVE
D 24 For purposes of determining the relevant
market, the following factors shall be considered, except?
A. THE POSSIBILITIES OF SUBSTITUTING THE GOODS OR
SERVICES IN QUESTION, WITH OTHERS OF DOMESTIC OR
FOREIGN ORIGIN, CONSIDERING THE TECHNOLOGICAL
POSSIBILITIES
B. THE COST OF DISTRIBUTION OF THE GOOD OR SERVICE
AND ITS RAW MATERIALS
C. THE COST AND PROBABILITY OF USERS OR CONSUMERS
SEEKING OTHER MARKET.
D. THE NUMBER GOODS IN TRANSIT
A 25 In determining the control of an
entity, the Commission may consider the following:
Control also exists even when an entity owns one half or less of the voting
power of another entity when?

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A. THERE IS POWER OVER MORE THAN ONE HALF OF THE

VOTING RIGHTS BY VIRTUE OF AN AGREEMENT WITH
INVESTORS
B. THERE IS NO POWER TO DIRECT OR GOVERN THE
FINANCIAL AND OPERATING POLICIES OF THE ENTITY
UNDER A STATUTE OR AGREEMENT;
C. THERE IS POWER TO APPOINT OR REMOVE THE MINORITY
OF THE MEMBERS OF THE BOARD OF DIRECTORS OR
EQUIVALENT GOVERNING BODY;
D. THERE IS POWER TO CAST ALL THE VOTES AT MEETINGS
OF THE BOARD OF DIRECTORS OR EQUIVALENT
GOVERNING BODY;

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