Quizzer On Special Laws Version 2

QUIZZER ON SPECIAL LAWS (VERSION 2)
Compiled and Constructed by Vhin
N.B.: This material is intended for STUDY and REVIEW and shall not be used for any other purpose
except for what is intended. The Law on Karma will be guided if someone is getting an advantage on
it.
INSURANCE CODE OF THE PHILIPPINES
1. Which of the following is the governing law of insurance contracts in the Philippines?
a. PD 612, as amended by Republic Act 10607
b. Republic Act 11232
c. Republic Act 10173
d. Republic Act 11032
2. The following are characteristics of an insurance contract, except:

a. Bilateral;
b. Consensual;
c. Aleatory;
d. Voluntary;
3. The following have an insurable interest in each other's life since under the provisions of the
family code they are obliged to support each other except:
a. The spouses;
b. Parents;
c. Illegitimate children;
d. Illegitimate brothers and sisters.
4. The following elements are common in a contract of sale and contract of insurance, except:
a. Meeting of the minds;
b. Object;
c. Consideration
d. Insurable interests;
5. Which of the following is considered doing/transacting an insurance business?

a. Making or proposing to make, as insurer, any insurance contract;
b. Making or proposing to make, as surety, any contract of suretyship as a vocation and
not as merely incidental to any other legitimate business or activity of the surety;
c. Doing or proposing to any business in substance equivalent to the foregoing in a manner
designed to evade the provisions of this Code;
d. All of the foregoing;
6. Under the Insurance Code, "a concealment entitles the injured party to rescind a contract of
insurance." The right to rescind should be exercised previous to the commencement of an
action on the contract. The cancellation of health care agreements as in insurance policies
require the concurrence of the following conditions, except:
a. Prior notice of cancellation to insured;
b. Notice must be based on the occurrence after effective date of the policy of one or more of
the grounds mentioned;
c. Must be in writing, mailed or delivered to the insured at the address shown in the
policy;
d. Must not state the grounds relied upon provided in the Insurance Code and upon
request of insured, to furnish facts on which cancellation is based.
7. What are the requisites in order that a person may be insured in a contact of insurance?
a. He must be competent to enter into a contract;
b. He must possess an insurable interest in the subject of insurance;
c. He must not be a public enemy;
d. All of the foregoing;
RFBT – QUIZZER ON SPECIAL LAWS (VERSION 2) Prepared & Compiled by Vhin
8. B is sideswiped by a balut vendor. Because he was previously indicted for many other crimes
including illegal possession of balisongs, he was declared Metro Manila's Public Enemy No.1.
If A wants to secure insurance on the life of B, may the insurer refuse on the grounds that B
is a public enemy and therefore may not be insured under the Insurance Code?
a. Yes, because he was declared a public enemy no. 1;
b. Yes, because A has no insurable interest on the life of B;
c. No, because the insurance law speaks of a public enemy only in reference to a
nation with whom the Phil is at war and every citizen and or subject thereof;
d. No, because B was not yet convicted;
9. Under the Insurance Code, the following are the effects of insurance when the mortgagor
effects insurance in his own name and provides that the loss be payable to the mortgagee.
Which is not?
a. The contract is deemed to be upon the interest of the mortgagor; hence he does NOT
cease to be a party to the contract;
b. Any act which under the contract of insurance is to be performed by the mortgagor, may be
performed by the mortgagee;
c. In case of loss, the mortgagee is entitled to the proceeds to the extent of his credit; and
d. The debt is not extinguished upon recovery by the mortgagee to the extent of his
credit;
10. A takes an insurance policy on his life and names his friend X as beneficiary, and
another insurance on the life of Y in consideration of "love and affection" with A as a
beneficiary. Which of the two insurances, if any, is valid?
a. The Insurance taken on A on his life, because the beneficiary need not have an
insurable interest in the life of the insured;
b. The insurance taken by A on the life of Y because "love and affection for the insured" in
the part of the person insuring is sufficient ground to qualify as insurable interest;
c. Neither of the two-insurance taken by A is valid because he has no insurable interest in
both cases;
d. Both, because A can take insurance for whoever he wants as long as he pays the
premium
11. The following persons cannot be beneficiary in an insurance contract, except;

a. concubine
b. paramour
c. illegitimate child
d. all of the foregoing
12. Pao and Jane are husband and wife. Jeff and Dianne are also husband and wife Jeff and
Jane engaged in adulterous relations. Jeff secured a life insurance policy and named Jane
as beneficiary. When Jeff dies, who will get the insurance proceeds?
a. Jane, because she was named beneficiary by Jeff;
b. Dianne, because she was the legal wife;
c. Neither, because the policy is void;
d. None of the foregoing
13. Lito, a married man, takes out an insurance policy on his life and designates Glenda, with
whom he is cohabiting at the time, as beneficiary. Is the designation made by Lito is valid and
enforceable?
a. No because Y should marry first B in order to legally designate as his beneficiary
b. No because the designation is void since Y and B are guilty of concubinage at the
time it is made
c. Yes, because Y had sexual relations to B and therefore bound to make him as
beneficiary
d. Yes, because B had consented Y to make her as beneficiary
14. How are insurance contracts construed?

a. In favor of the insurer
b. In favor of the insured
c. Neither of the two
d. In favor of the beneficiary
Page 2 of 88
15. Under the Insurance Code, the interest of a beneficiary in a life insurance policy shall be
forfeited when the beneficiary is the principal, accomplice or accessory in willfully bringing
about the death of the insured; in which event, the following are qualified to receive the
proceed of the insurance. Which is not?
a. To the surviving spouse
b. To the legitimate children
c. To the insurer
d. To the State
16. Under the Insurance Code, a warranty is:

a. considered parts of the contract
b. always written on the face of the policy
c. substantial truth only is required
d. is presumed material.
17. Jim's vessel left for a voyage on October 17 from manila to San Francisco, USA. Jim
insured said vessel against the perils of the sea lost or not loss, on October 22 with Jhon
insurance Co. without the knowledge of both parties, the vessel had sunk on October 25. Is
Jhon insurance Co liable to the loss of vessel owned by Jim?
a. No because the contract of insurance between Jim and Jhon is null and void being the
absence of subject at the time of perfection of contract;
b. No because Jhon insurance Co does not know that the vessel was already lost;
c. Yes, because Jhon insurance Co. is a very good friend of Jim;
d. Yes, because Jhon insurance Co has agreed to pay Jim even though the vessel be
already lost.
18. Emil takes an insurance on her own life and names her friend Ronald as beneficiary. Is the
insurance contract valid and enforceable?
a. Yes, because in insurance contract the beneficiary need not have an insurable
interest in the life of insured
b. Yes, because in insurance contract whoever beneficiary made by the insured is
immaterial in the perfection of contract
c. No because in insurance contract only the insured should be the beneficiary
d. No because in insurance contract a friend should not be made beneficiary.
19. When Sheena insured his house against fire, he did not disclose the fact that he received two
letters threatening to set his house on fire, if he did not pay a certain amount to the
senders. Sheena's house was destroyed by an accidental fire. Is the insurer liable for the
loss of the house?
a. Yes, because the house was destroyed by an accidental fire;
b. Yes, because contract of insurance is already valid and enforceable;
c. No because the materiality is not determined by the event but solely by probable
and reasonable influence of the facts upon the party;
d. No because the period where the insured allowed to claim the proceeds of
insurance has already lapse.
20. A restaurant owner leased a meeting room at the restaurant to a second party. The lease
specified that the second party, not the restaurant owner, would be responsible for any liability
arising out of the use of the meeting room, and that the restaurant owner would be "held
harmless" for any damages. The restaurant owner's use of the hold-harmless agreement is an
example of
a. retention.
b. self-insurance.
c. insurance.
d. noninsurance transfer.
21. All of the following are disadvantages of using insurance EXCEPT

a. There is an opportunity cost because premiums must be paid in advance.
b. Considerable time and effort must be spent selecting and negotiating coverage.
c. It results in considerable fluctuations in earnings after a loss occurs.
d. Attitudes toward loss control may become lax.
Page 3 of 88
22. Under the current rule, when does the insured lose the right to change the beneficiary?
a. When the right to change the beneficiary is expressly waived in the policy;
b. After the termination of the contract;
c. When the law expressly provides;
d. None of the foregoing;
23. What if the beneficiary dies before the insured and the insured did not change the
designation, who gets the proceeds?
a. It shall be forfeited in favor of the insurer;
b. It shall be given to charity;
c. It shall go to the estate of the beneficiary;
24. M/V Mary Jane, a common carrier, insured Peter Parker's goods, valued at 1M with A.MAY
Insurance Company for 2M. The vessel was hit by lightning, caught fire, and sank. Mary
Jane is now claiming 2M from A.MAY because the policy stated that the loss due to
lightning is compensable. A.MAY denies liability on the ground that: (1) Mary Jane is not the
owner of the goods and therefore has no insurable interest; and (2) Mary Jane cannot claim
more than the value of the goods lost. How much can M/V Mary Jane Claim?
a. 2M, because it is the value of the policy;
b. Nothing, because M/V Mary Jane is not the owner of the good;
c. 1M because it is the value of the goods;
25. Does M/V Mary Jane have insurable interest over the goods of Peter Parker?
a. No, because M/V Mary Jane is not the owner of the goods;
b. Yes, because a carrier has insurable interest in a thing held by him;
c. It depends on the contract of Insurance;
26. X insured his property valued at P100,000 for P120,000. X suffered a total loss. How much
is he entitled to recover?
a. P100,000 being the value of his property;
b. P120,00, being the value of the insurance;
c. Nothing, having overpriced the value of the property, thus insurance is void;
27. When must insurable interest in life insurance exists?

a. Before the insurance takes effect;
b. At the time the insurance takes effect;
c. After the maturity of the insurance;
28. Y is the owner of a Feroza and a Civic. He insures the Feroza for 200T and the Civic for 150T
under a single policy for which he paid a total premium of 20T. If he sells the Feroza
without the insurer's consent, is the insurer liable in case the Civic is lost?
a. Yes. Since the vehicles are separately insured;
b. No, because the sale of one distinct thing avoids the insurance as to the others.
c. No, because the sale of one thing does not affects the insurance of the others.
d. None of the above;
29. The following are examples of misrepresentation, EXCEPT:

a. A statement of a fact of something which is untrue
b. Which the insured stated with knowledge that it is untrue and with an intent to
deceive or which he states as true without knowing it to be true and which has the
tendency to mislead;
c. Where such fact in either case is material to the risk;
d. A factual statement made by the insured;
30. When breach of warranty does not avoid policy, save:

a. When loss occurs before time for performance;
b. When performance becomes unlawful;
c. When performance becomes impossible;
d. None of the foregoing.
Page 4 of 88
31. What is the effect if the insured dies at the hand of the law?
a. The insurer can legally avoid the insurance due to his death at the hands of the law;
b. The insurer can legally rescind the insurance contract;
c. The insurance contract is null and void;
d. The insurance contract is transmissible to the relatives of the insured.
32. The following are requisites of double insurance, except:

a. The person insured is the same;
b. Only one insurer insuring separately;
c. The subject matter is the same;
d. The interest insured is also the same.
33. The agreed price for assuming and carrying the risk is called:
a. Premium;
b. Pot money;
c. Payment;
d. Indemnification.
34. It is a promise to be fulfilled after the contract has come into existence or any
statement concerning what is to happen during the existence of the insurance.
a. Affirmative representation;
b. Negative Representation;
c. Promissory Representation;
d. Oral representation.
35. It is an agreement whereby one undertakes to answer, under specified terms and
conditions, for the debt, default or miscarriage of another such as failure to perform a
contract or certain duties.
a. Contract of Insurance;
b. Suretyship;
c. Commodatum;
d. Contract of Suretyship.
36. The insured has the right to recover premiums already paid or a portion thereof in the following
cases except:
a. When the contract is voidable because of fraud;
b. When the insurer incurred any liability under the policy because of default of the
insured;
c. When there is over insurance;
d. When rescission is granted due to the insurer's breach of contract.
37. A person insured is entitled to a return of premium as follows:

a. Where the insurance is not for a definite period;
b. Where a short period rate has been agreed upon;
c. Where the policy is a life insurance policy;
d. Where part of the thing insured has been exposed to any of the perils insured against.
38. The statement of loss is a formal requirement and intended to the following, except:
a. To give the insurer information by which he may determine the extent of his liability;
b. To afford him a means of detecting any fraud that may have been practiced upon him;
c. To apprise the insured with the occurrence of the loss;
d. To operate as a check upon extravagant claim.
39. In a marine insurance, the following are the implied warranties, except:
a. Vessel is seaworthy;
b. It will not deviate from the agreed voyage;
c. It will not engage in illegal ventures;
40. The following are instances when deviation is proper, except:

a. When there is a typhoon;
b. When the ship suddenly has engine trouble;
c. When the shipper receives reports of pirates waiting in ambush;
Page 5 of 88
41. A loss may be either partial or total, and a total loss may be either actual or constructive.
The following are example of actual total loss: EXCEPT:
a. It sunk or was broken up, making it irretrievable;
b. It was ordered seized;
c. It was partially burned;
d. None of the above;
42. A restaurant was insured under a fire policy. The restaurant sought to recover indemnity for
soot on the wall caused by a gas range burner. This discoloration on the wall was caused
over time because the gas range was positioned in such a way that the fire was near the
wall. Can the restaurant collect from the fire insurance policy?
a. No, they cannot collect because it was a friendly fire;
b. No, because the alteration increases the risk;
c. Yes, because it is not the fault of the restaurant;
d. None of the above.
43. The requisites for a valid abandonment in marine insurance are the following, except:
a. There must be an actual relinquishment by the person insured of his interest in the thing
insured;
b. here must be constructive total loss;
c. The abandonment must be partial or conditional;
d. It must be made within a reasonable time after receipt of reliable information of the loss.
44. A person showed off his gun to another person and to prove it was empty, he aimed at his
temple and pulled the trigger. He was instantly killed. Is the insurance company liable?
a. No, because he voluntary exposed himself to the peril;
b. No, because he was stupid;
c. Yes, because there is really no intention to die;
45. Freightage may be derived from the following, save;

a. The chartering of the ship;
b. Its employment for the carriage of his own goods;
c. Its employment for the carriage of the goods of others;
46. The following are policies of inland marine insurance, except:

a. Fixed transportation property;
b. Property in transit;
c. Freightage;
d. Bailee liability.
47. The requisites to the right to claim general average contribution are:
a. There must be a common danger to the vessel or cargo;
b. Part of the cargo was sacrificed deliberately;
c. It must be made by the master or upon his authority;
d. All of the foregoing.
48. The following are called "Perils of the Ship", except:

a. From the natural and inevitable action of the sea;
b. From the ordinary wear and tear of the ship;
c. From the negligent failure of the ship owner to provide the vessel with proper equipment;
49. When seaworthiness is complied with, there is no implied warranty that the vessel will remain
in seaworthy condition throughout the life of the policy, the exceptions to the rule are the
following, except:
a. In case of time policy;
b. In case of cargo policy;
c. In case of voyage policy
d. In case of stowage policy.
Page 6 of 88
50. “Reinsurance” refers to the practice by insurance companies of:

a. Buying insurance from another firm;
b. Insuring the same risk twice;
c. Renewing existing policies;
d. Terminating existing policies
51. By taking out insurance cover an individual:

a. Reduces the cost of an accident;
b. Transfers the risk to someone else;
c. Reduces the certainty of major loss;
d. Converts the possibility of large loss to certainty of a small one.
52. Diversification is one way in which insurance companies can protect themselves against:
a. Moral hazard;
b. Parameter change;
c. Positively correlated risks;
53. A retirement annuity is particularly attractive to someone who has:

a. High longevity risk;
b. Low longevity risk;
c. A severe illness;
d. A large family.
54. Pension and life insurance funds hold few short-term assets because:
a. Their cash flows are predictable;
b. Long-term assets are profitable;
c. Short-term assets are too risky;
d. Most people live for a long time
55. All of the following are social costs associated with insurance EXCEPT
a. the expense of doing business.
b. fraudulent claims.
c. inflated claims.
d. increased cost of capital.
56. A restaurant owner leased a meeting room at the restaurant to a second party. The lease
specified that the second party, not the restaurant owner, would be responsible for any liability
arising out of the use of the meeting room, and that the restaurant owner would be "held
harmless" for any damages. The restaurant owner's use of the hold-harmless agreement is an
example of:
a. retention.
b. self-insurance.
c. insurance.
d. noninsurance transfer.
57. All of the following are disadvantages of using insurance EXCEPT:

a. There is an opportunity cost because premiums must be paid in advance;
b. Considerable time and effort must be spent selecting and negotiating coverages;
c. It results in considerable fluctuations in earnings after a loss occurs;
d. Attitudes toward loss control may become lax.
58. The following are policies of inland marine insurance, except:

a. Fixed transportation property;
b. Property in transit;
c. Freightage;
d. Bailee liability.
59. All of the following can be classified as casualty insurance EXCEPT:

a. marine insurance;
b. general liability insurance;
c. workers compensation insurance;
d. burglary and theft insurance.
Page 7 of 88
60. LMN Insurance markets homeowners’ insurance. The LMN homeowners’ policy combines
property and casualty insurance in the same contract. Insurance policies combining property
and casualty coverage in the same contract are called:
a. mono-line policies.
b. multi-year policies.
c. multiple-line policies.
d. manuscript policies.
61. Any minor of the age of eighteen years or more may contract insurance for the following except:
a. Life;
b. Property;
c. Health;
d. Accident.
62. Under the Insurance Code, which of the following does not belong to the kinds of insurance
policies?
a. Limited
b. Open
c. Valued
d. Running
63. Under the Insurance Code, the following are classified as Fidelity bonds, EXCEPT:
a. Industrial bond;
b. Payment bond;
c. Public official Bond;
d. All of the above.
64. Under the Insurance Code, the following are classified as Contract bonds, EXCEPT:
a. Industrial bond;
b. Performance bond;
c. Payment bond;
d. All of the above.
65. The following are kinds of average computation for insurance purposes, EXCEPT:
a. Gross or general average;
b. Simple or particular average;
c. Special average;
66. The following values are used for indemnity purposes, EXCEPT:
a. Value of vessel;
b. Value of Cargo;
c. Cost of Insurance;
67. In order that the insurer may rescind a contract of fire insurance under the Insurance Code for
any alteration made in the use or condition of the thing insured, the following requisites must be
present, EXCEPT:
a. The use or condition of the thing is specifically limited or stipulated in the policy;
b. Such use or condition as limited by the policy is altered;
c. The alteration is made without the consent of the insurer;
d. The alteration does not increase the risk.
68. The following alteration do not avoid the insurance policy, EXCEPT:
a. The alteration is made by means within the control of the insured;
b. Where risk of loss not increased;
c. Where questioned articles required by insured's business;
d. Where insured property would be useless if questioned acts were prohibited.
69. The following are nature of liability of surety under the insurance law, EXCEPT:
a. Solidary;
b. Limited;
c. Jointly;
d. Contractual.
Page 8 of 88
70. From the economic standpoint and insurance purposes, death may be of the following, EXCEPT:
a. Actual death;
b. Clinical death;
c. Living death;
d. Retirement death.
71. It is an agreement whereby one undertakes, for a consideration, to indemnify another against
loss, damage, or liability arising from an unknown or contingent event.
a. Suretyship
b. Guarantee
c. Contract of insurance
d. Contract of lease
72. The following are characteristics of an insurance contract except for one:
a. Aleatory contract
b. Contract of indemnity
c. Personal contract
d. Special contract
73. In return for the 20 years of faithful service of X as a house-helper to Y, the latter promised to
pay P100,000.00 to X's heirs if he (X) dies in an accident by fire. X agreed. What is the nature of
their agreement?
a. Mutual promise to pay
b. Conditional donation
c. Contract of insurance
74. It assumes the risk of loss and undertakes for a consideration to indemnify the insured upon
the happening of the designated peril.
a. Insurer
b. Insured
c. Assured
d. Beneficiary
75. He is the person whose loss is the occasion for the payment of the insurance proceeds by the
insurer.
a. Insurer
b. Insured
c. Assured
d. Beneficiary
76. He is the third person designated by the insured to receive the proceeds.
a. Insurer
b. Insured
c. Assured
d. Beneficiary
77. The following are the elements of an insurance contract, except:

a. The insured has an insurable interest capable of pecuniary estimation
b. The insured is subject to a risk of loss by the happening of the designated peril
c. The insured assumes the risk of loss
d. In consideration of the insurer’s promise, the insured pays a premium.
78. The terms in an insurance policy which are ambiguous, equivocal, or uncertain are to be
construed
a. Strictly and most strongly against the insured
b. Strictly and most strongly against the insurer
c. Liberally in favor of the insurer
Page 9 of 88
79. The following statements are presented to you for evaluation:

I. Insurance contracts are contracts of adhesion the terms of which must be
interpreted and enforced stringently against the insurer which prepared the
contract.
II. The contract of insurance is one of perfect good faith not for the insured alone, but
equally so for the insurer
In your evaluation of the foregoing statements:

a. Both Statements are true
b. Both Statements are false
c. Only Statement I is true
d. Only Statement II is true
80. An agreement to indemnify against injury to a ship, cargo, or profits involved in a certain
voyage or for a specific vessel during a fixed period.
a. Casualty insurance
b. Fire insurance
c. Suretyship
d. Marine insurance
81. Insurance covering loss or liability arising from accident or mishap, excluding certain types of
loss which by law or custom are considered as falling exclusively within the scope of other types
of insurance such as fire or marine. It includes, but is not limited to, employer’s liability
insurance, motor vehicle liability insurance, plate glass insurance, burglary and theft
insurance, personal accident and health insurance as written by non-life insurance companies,
and other substantially similar kinds of insurance.
b. Fire insurance
c. Microinsurance
d. Life insurance
82. Insurance against loss by fire, lightning, windstorm, tornado or earthquake and other allied
risks, when such risks are covered by extension to fire insurance policies or under separate
policies
b. Fire insurance
c. Microinsurance
d. Life insurance
83. Agreement whereby a party called the surety guarantees the performance by another party
called the principal or obligor of an obligation or undertaking in favor of a third party called the
obligee.
a. Guaranty
b. Suretyship
c. Microinsurance
d. Mortgage
84. Any policy or contract on either a group or individual basis issued by an insurance company
providing for benefits or other contractual payments or values thereunder to vary so as to
reflect investment results of any segregated portfolio of investment.
a. Fixed contract
b. Single portfolio contract
c. Insurable interest
d. Variable contract
85. Insurable interest which the law requires the owner of an insurance policy to have in the thing
or person insured. As a general rule, what is the nature of an insurance contract?
a. Pecuniary in nature
b. Inherently risky in nature
c. Regulatory in nature
d. Common law in nature
Page 10 of 88
86. Under the law, the following persons cannot be designated beneficiary of the insured, except:
a. persons in illicit relations — adultery or concubinage
b. persons found guilty of adultery or concubinage
c. public officer or his wife, descendants, or ascendants
87. What are the effects of insurance procured by the mortgagor without assigning the loss to the
mortgagee?
a. Only the mortgagor may recover from the insurer since the policy taken by the
mortgagor shall be applied exclusively to his interest.
b. The mortgage constituted shall not extend to the proceeds of the indemnity paid by the
insurer of the mortgaged property.
c. Both the mortgagor and the mortgagee may recover from the loss.
d. The mortgagor cannot recover from the loss.
88. Every person has insurable interest on the life and health of the following except for one:
a. Of himself, of his spouse and of his children
b. Of any person on whom he depends wholly or in part for education or support
c. Of any insurer whom he has taken the insurance
d. Of any person under a legal obligation to him for the payment of money or respecting
property or services
89. In case of failure to designate a beneficiary or the beneficiary designated is disqualified

a. The life insurance proceeds should accrue to the spouse alone
b. The life insurance proceeds should accrue to the children alone
c. The life insurance proceeds should accrue to the estate of the insured
d. The life insurance proceeds should accrue to the estate of the beneficiary
90. What is the effect of the death of the original owner of a life insurance policy covering the life of
a minor?
a. The death of the original owner of the policy does not vests in the minor all the rights, title
and interest in the policy.
b. The death of the original owner of the policy vests in the minor all rights, title and
interest in the policy.
c. The death of the original owner of the policy does not vest all the rights, title and interest in
the estate of the minor.
d. The death of the original owner of the policy vests all the rights, title and interest in the
estate of the minor.
91. Except for one, an insurable interest in property may consist in

a. An existing interest
b. An inchoate interest founded on an existing interest
c. An expectancy, coupled with an existing interest in that out of which the expectancy arises
d. An expectancy not founded on any existing interest in property
92. Which of the following is not true with respect to insurable interest in property?
a. It is based on pecuniary interest.
b. The interest must exist at the time the policy takes effect and at the time of the loss.
c. It is limited to the actual value of the damage the insured may suffer.
d. There is no limit on the amount of insurable interest.
93. Simon is the owner of a house which he insured against fire. During the existence of the policy,
Simon died and the house was inherited by his only daughter, Jenny. The house was then
destroyed by fire one month after Simon died. May Jenny recover from the insurer?
a. No, she cannot recover because when she inherited the house, the fire insurance policy was
not automatically transferred to her.
b. Yes, she may recover because when she inherited the house, the fire insurance policy
was automatically transferred to her.
c. No, she cannot recover because she does not have an insurable interest over the property
insured.
d. Yes, she may recover because she has an insurable interest over the property insured.
Page 11 of 88
94. The following are void stipulations in an insurance contract except for one:
a. For the payment of loss whether the person insured has or not any insurable interest in the
subject matter of insurance.
b. The policy executed by way of gaming or wagering.
c. The policy will inure to the benefit of those who during the continuance of the risk
may become the owner of the interest insured.
d. The policy shall be received as proof of such interest.
95. The following statements are true with respect to concealment, except:
a. To be guilty of concealment, the party must have knowledge of the fact concealed at the time
of the effectivity of the policy.
b. Concealment presupposes knowledge of the fact concealed on the part of the party charged
with concealment.
c. Concealment of material facts before reinstatement of a lapsed policy does not entitle
the other to rescind the contract.
d. Failure to communicate information acquired after the effectivity of the policy will not be a
ground to rescind the contract on the ground of concealment.
96. Each party to an insurance contract is bound to communicate to the other all facts that meet
the following requisites excluding one:
a. He makes warranty as to such facts
b. Such facts must be within his knowledge
c. Must be material to the contract.
d. Other party has not the means of ascertaining such fact
97. Neither party to a contract of insurance is bound to communicate information of the matters
following, except in answer to the inquiries of the other
a. Those which the other did not know
b. Those of which the other should divulge
c. Those which prove or tend to prove the existence of risks not excluded by a warranty, and
which are material
d. Those which in the exercise of ordinary care, the other ought to know, and of which
the former has no reason to suppose him ignorant
98. The oral or written statement of a fact or a condition affecting the risk made by the insured to
the insurance company, tending to induce the insurer to assume the risk is known as
a. Concealment
b. Warranty
c. Representation
d. Communication
99. Which of the following statements is not a correct legal precept with respect to representation in
an insurance contract?
a. Representation must be presumed to refer to the date on which the contract goes into effect.
b. Representation must be literally true and correct in every respect.
c. Representation may be altered, withdrawn before the insurance is effected but not
afterwards.
d. Representation is a mere collateral inducement to a contract and not a part of the policy.
100. Macy represented that she never had cancer or tumor or undergone operation
notwithstanding the fact that two months before the issuance of the policy, she was operated
on for cancer. May the insurer rescind the contract?
a. Yes, because the insured was guilty of misrepresentation of a material fact.
b. Yes, because the insured was guilty of dishonesty.
c. No, because the insured conceal a fact not material to the contract.
d. No, because the insurer is bound to assume the risk for failure to make additional inquiry.
101. The following are the requisites for incontestability except for one:
a. The policy must be a life insurance policy.
b. It must be payable on the death of the insured
c. The insurer must have insurable interest in the subject matter of the insurance.
d. It must have been in force during the lifetime of the insured for a period of two years.
Page 12 of 88
102. A written memorandum of the important terms of a preliminary contract of insurance

intended to give temporary protection pending the investigation of the risk by the insurer or
until the issuance of a formal policy is known as
a. Policy of insurance
b. Rider
c. Cover note
d. Provisional policy
103. It contemplates successive insurances, and which provides that the object of the policy may
be from time to time defined, especially as to the subjects of insurance, by additional
statements or endorsements.
a. Running policy
b. Open policy
c. Valued policy
104. Is one in which the value of the things insured is not agreed upon, but is left to be
ascertained in case of loss.
a. Running policy
b. Open policy
c. Valued policy
105. Is one which expresses on its face an agreement that the things insured shall be valued at a
specified sum.
a. Running policy
b. Open policy
c. Valued policy
106. What is the period of prescription in motor vehicle insurance?

a. one year from the date of accident
b. one year from the time one applied for insurance
c. one year from denial of the claim
d. one year from the time the cause of action accrues
107. It is a written statement or stipulation inserted on the face of the contract itself, or clearly
incorporated therein as part thereof by proper words of reference, whereby the insured
expressly contracts as to the existence of certain facts, circumstances or conditions, the literal
truth of which is essential to the validity of the contract of insurance.
a. Cover note
b. Policy
c. Rider
d. Warranty
108. In the context of insurance contract, which of the following is true with respect to
representation?
a. While they precede the contract, they are collateral thereto not a part thereof
b. Actually, and must be part of the contract
c. Made only by the insured
d. Must be strictly and literally performed
109. In the context of insurance contract, which of the following is not true with respect to
warranty?
a. Is actually and must be part of the contract
b. While they precede the contract, they are collateral thereto not a part thereof
c. Must be strictly and literally performed
d. Is made only by the insured
Page 13 of 88
110. The amount of money the insurer agrees to pay to the holder of the policy if he surrenders it
and releases his claim upon it.
a. Overdue premium
b. Cash surrender value
c. Paid up capital
d. Loan value
111. It means that no more payments are required, and consists of insurance for life in such an
amount as the sum available therefore, considered as a single and final premium, will
purchase.
a. Paid up insurance
b. Extended insurance
c. Cash surrender value
d. Automatic loan clause
112. It is a stipulation in the policy providing that upon default in the payment of premium, the
same shall be paid from the loan value of the policy until that value is consumed.
113. Is where the insurance originally contracted for is continued for such period as the amount
available therefore will pay when it will terminate.
114. The insured is entitled to a return of the premium paid in the following instances, except:
a. When no part of the interest in the thing insured is exposed to any of the perils insured
against.
b. Where the insurance is made for a definite period of time and the insured surrenders his
policy before the expiration of that period.
c. In case of over-insurance
d. When by no default of the insured other than actual fraud, the insurer occurred any
liability under the policy.
115. Antonio obtained a fire insurance policy for one year. He paid premium amounting to
P2,400.00 a year. On the sixth month, he surrendered the policy. How much should be return
to the insured?
a. He is entitled to a return of the whole premium paid.
b. He is entitled to a return of the premium corresponding to the unexpired period of six
months or one-half of the premium paid, or P1,200.00.
c. He is not entitled to the premium because he did not fully paid the policy.
d. He is not entitled to the premium because the policy did not yet reach one year.
116. Premiums are recoverable in the following instances, except:

a. If the peril insured against has existed, and the insurer has been liable for any period, the
peril being entire and indivisible.
b. In life insurance
c. In property insurance.
d. When the insured is guilty of fraud or misrepresentation.
117. The following are true as to the liability of the insurer with respect to losses, except:
a. Loss of which a peril insured against was not the proximate cause.
b. Loss caused by efforts to rescue the thing insured from a peril insured against it.
c. Loss caused by the negligence of the insured.
d. Loss, the immediate cause of which the peril insured against unless the proximate cause
thereof was excepted in the contract.
Page 14 of 88
118. Except for one, the insurer will not be subrogated to the rights of the insured in the following
instances
a. In life insurance because subrogation exists only when the insurance is a contract of
indemnity.
b. When the proximate cause of the damage was the negligence of the insurer himself.
c. When the insurer pays to the insured a loss not covered by the policy.
d. When the insured failed to comply with the legal or stipulated condition precedent prior to
the filing of an action against the wrongdoer.
119. It exists where the same person is insured by several insurers separately in respect to the
same subject and interest.
a. Reinsurance
b. Subrogation
c. Double insurance
d. Over-insurance
120. It is when an insured obtains a policy in an amount exceeding the value of his insurable
interest.
a. Reinsurance
b. Subrogation
c. Double insurance
d. Over-insurance
121. Is one by which the insurer procures a third person to insure him against loss or liability by
reason of such original insurance.
a. Reinsurance
b. Subrogation
c. Double insurance
d. Over-insurance
122. Which is not true with respect to double insurance?

a. The insurer remains as insurer.
b. The subject matter is property.
c. The same interest and risk are insured with the insurer.
d. It is the insurer’s risk or liability.
123. Which is true with respect to reinsurance?

a. The insurer remains as insurer.
b. The subject matter is property.
c. The same interest and risk are insured with the insurer.
d. It is the insurer’s risk or liability.
124. Perils of the ship are losses or damages resulting from the following instances, except:
a. Negligent failure of the ship’s owner to provide the vessel with proper equipment to convey
the cargo under ordinary condition.
b. Ordinary wear and tear of the ship
c. One that could not be foreseen and not attributable to the fault of anybody
d. Natural and inevitable action of the sea
125. It signifies all the benefits derived by the owner either from the chartering of the ship or its
employment for the carriage of his goods or of those others.
a. Insurable interest
b. Freightage
c. Loan on respondentia
d. Loan on bottomry
126. The following except for one are warranties implied in marine insurance
a. Where the nationality or neutrality of a ship or cargo is expressly warranted, the ship will
carry the requisite documents to show such nationality or neutrality
b. The ship is unseaworthy
c. No improper deviation from the voyage will be made
d. The vessel will not engage in illegal venture
Page 15 of 88
127. Under the insurance code, a deviation is proper in the following instances, except:
a. When in good faith, for the purpose of saving human life, or relieving another vessel in
distress
b. When necessary to comply with a warranty or avoid a peril, whether or not the peril is
insured against
c. When made in good faith, and upon reasonable grounds of belief in its necessity to avoid a
peril
d. When caused by circumstances over which the master or the owner of the ship has
any control
128. It includes all expenses and damages caused to the vessel or to her cargo which have not
inured to the common benefit and profit of all the persons interested in the vessel and her
cargo.
a. General or gross average
b. Technical or total loss
c. Simple or particular average
d. Constructive total loss
129. It includes all the damages and expenses which are deliberately caused in order to save the
vessel, its cargo, or both at the same time, from real and known risk.
a. General or gross average
b. Technical or total loss
c. Simple or particular average
d. Constructive total loss
130. It is the act of the insured by which after a constructive total loss, he declares the
relinquishment to the insurer of his interest in the thing insured.
a. Alteration
b. Indemnity
c. Valuation
d. Abandonment
131. Padala Shipping, Co. insured all of its vessels with Sigurado Insurance, Co. The insurance
policies stated that the insurer shall answer for all damages due to perils of the sea. One of the
insured's ships, the MV Dona Priscilla, ran aground in the Panama Canal when its engine pipes
leaked and the oil seeped into the cargo compartment. The leakage was caused by the extensive
mileage that the ship had accumulated. May the insurer be made to answer for the damage to
the cargo and the ship?
a. Yes, because the insurance policy covered any or all damage arising from perils of the sea.
b. Yes, since there appears to have been no fault on the part of the shipowner and ship
captain.
c. No, since the proximate cause of the damage was the breach of warranty of seaworthiness of
the ship.
d. No, since the proximate cause of the damage was due to ordinary usage of the ship,
and thus not due to a peril of the sea.
132. X has been a long-time household helper of Z. X's husband, Y, has also been Z's long-time
driver. May Z insure the lives of both X and Y with Z as beneficiary?
a. Yes, since X and Y render services to Z.
b. No, since X and Y have no pecuniary interest on the life of Z arising from their employment
with him.
c. No, since Z has no pecuniary interest in the lives of X and Y arising from their
employment with him.
d. Yes, since X and Y are Z’s employees.
133. X, Co., a partnership, is composed of A (capitalist partner), B (capitalist partner) and C

(industrial partner). If you were partner A, who between B and C would you have an insurable
interest on, such that you may then insure him?
a. No one, as there is merely a partnership contract among A, B and C.
b. Both B and C, as they are your partners.
c. Only C, as he is an industrial partner.
d. Only B, as he is a capitalist partner.
Page 16 of 88
134. An insured, who gains knowledge of a material fact already after the effectivity of the
insurance policy, is not obliged to divulge it. The reason for this is that the test of concealment
of material fact is determined
a. at the time of the issuance of the policy.
b. at any time before the payment of premium.
c. at the time of the payment of the premium.
d. at any time before the policy becomes effective.
135. Teddy, the captain of MV Don Alan, while asleep in his cabin, dreamt of an Intensity 8
earthquake along the path of his ship. On waking up, he immediately ordered the ship to return
to port. True enough, the earthquake and tsunami struck three days later and his ship was
saved. Was the deviation proper?
a. Yes, because the deviation was made in good faith and on a reasonable ground for believing
that it was necessary to avoid a peril.
b. No, because no reasonable ground for avoiding a peril existed at the time of the
deviation.
c. No, because T relied merely on his supposed gift of prophecy.
d. Yes, because the deviation took place based on a reasonable belief of the captain.
136. On June 1, 2021, X mailed to Y Insurance, Co. his application for life insurance, with
payment for 5 years of premium enclosed in it. On July 21, 2021, the insurance company
accepted the application and mailed, on the same day, its acceptance plus the cover note. It
reached X's residence on August 11, 2021. But, as it happened, on August 4, 2021, X figured in
a car accident. He died a day later. May X's heirs recover on the insurance policy?
a. Yes, since under the Cognition Theory, the insurance contract was perfected upon
acceptance by the insurer of X's application.
b. No, since there is no privity of contract between the insurer and X’s heirs.
c. No, since X had no knowledge of the insurer's acceptance of his application before he
died.
d. Yes, since under the Manifestation Theory, the insurance contract was perfected upon
acceptance of the insurer of X's application.
137. For a constructive total loss to exist in marine insurance, it is required that the person
insured relinquish his interest in the thing insured. This relinquishment must be
a. actual.
b. constructive first and if it fails, then actual.
c. constructive.
d. either actual or constructive.
138. Where the insurer was made to pay the insured for a loss covered by the insurance contract,
such insurer can run after the third person who caused the loss through subrogation. What is
the basis for conferring the right of subrogation to the insurer?
a. Their express stipulation in the contract of insurance.
b. The equitable assignment that results from the insurer’s payment of the insured.
c. The insured’s formal assignment of his right to indemnification to the insurer.
d. The insured’s endorsement of its claim to the insurer.
139. Perils of the ship, under marine insurance law, refer to loss which in the ordinary course of
events results from
a. natural and ordinary actions of the sea.
b. unnatural and inevitable actions of the sea.
c. natural and inevitable actions of the sea.
d. unnatural and ordinary actions of the sea.
140. X, in the hospital for kidney dysfunction, was about to be discharged when he met his friend
Y. X told Y the reason for his hospitalization. A month later, X applied for an insurance covering
serious illnesses from ABC Insurance, Co., where Y was working as Corporate Secretary. Since
X had already told Y about his hospitalization, he no longer answered a question regarding it in
the application form. Would this constitute concealment?
a. Yes, since the previous hospitalization would influence the insurer in deciding
whether to grant X's application.
b. No, since Y may be regarded as ABC’s agent and he already knew of X’s previous
hospitalization.
c. Yes, it would constitute concealment that amounts to misrepresentation on X's part.
Page 17 of 88
d. No, since the previous illness is not a material fact to the insurance coverage.
141. X Shipping, Co., insured its vessel MV Don Teodoro for Php100 Million with ABC Insurance,
Co. through T, an agent of X Shipping. During a voyage, the vessel accidentally caught fire and
suffered damages estimated at Php80 Million. T personally informed ABC Insurance that X
Shipping was abandoning the ship. Later, ABC insurance denied X Shipping’s claim for loss on
the ground that a notice of abandonment through its agent was improper. Is ABC Insurance,
Co. right?
a. Yes, since X Shipping should have ratified its agent’s action.
b. No, since T, as agent of X Shipping who procured the insurance, can also give notice
of abandonment for his principal.
c. Yes, since only the agent of X Shipping relayed the fact of abandonment.
d. No, since in the first place, the damage was more than ¾ of the ship's value.
142. Shipowner X, in applying for a marine insurance policy from ABC, Co., stated that his vessel
usually sails middle of August and with normally 100 tons of cargo. It turned out later that the
vessel departed on the first week of September and with only 10 tons of cargo. Will this avoid
the policy that was issued?
a. Yes, because there was breach of implied warranty.
b. No, because there was no intent to breach an implied warranty.
c. Yes, because it relates to a material representation.
d. No, because there was only representation of intention.
143. JQ, owner of a condominium unit, insured the same against fire with XYZ Insurance Co.,
and made the loss payable to his brother, MLQ. In case of loss by fire of the said condominium
unit, who may recover on the fire insurance policy?
a. JQ only
b. MLQ only
c. Both JQ and MLQ
d. Neither JQ nor MLQ
144. The newly restored Ford Mustang muscle car was just released from the car restoration shop
to its owner, Seth, an avid sportsman. Given his passion for sailing, he needed to go to a round-
the-world voyage with his crew on his brand-new 180-meter yacht. Hearing about his coming
voyage, Sean, his bosom friend, asked Seth if he could borrow the car for his next roadshow.
Sean, who had been in the business of holding motor shows and promotions, proposed to
display the restored car of Seth in major cities of the country. Seth agreed and lent the Ford
Mustang to Sean. Seth further expressly allowed Sean to use the car even for his own purposes
on special occasions during his absence from the country. Seth and Sean then went together to
Bayad Agad Insurance Co. (BAIC) to get separate policies for the car in their respective names.
BAIC consults you on whether separate policies could be issued to Seth and Sean in respect of
the same car. Based on the foregoing case, who has an insurable interest?
a. Seth
b. Sean
c. Both A and B
d. Neither A nor B
145. The following are examples are expectancy coupled with existing interest out of which the
expectancy arises, except:
a. Growing crops.
b. Expected freightage of the common carrier.
c. Profits of a partnership for a partner.
146. Which of the following statements relative to a policy of insurance is false?

a. The policy must be in printed form except group insurance and group annuity policies
which may be typewritten.
b. The policy does not have to be signed by the insured except where a warranty is contained
in a separate document.
c. In case of conflict, the stipulations in the policy shall prevail over those contained in
the rider.
d. A cover note binds the parties to an insurance contract prior to the issuance of the policy.
Page 18 of 88
147. Which of the following items need not be contained in a policy of insurance?
a. The amount to be insured in an open policy.
b. The interest of the insured who is not the absolute owner of the property insured.
c. The risks insured against.
d. The period of coverage of the insurance.
148. X insured his building against fire for P5,000,000. The building was totally destroyed by fire.
Its value was determined at the time of loss to be P3,000,000 and so this was the amount
recovered by X. What kind or type of insurance policy was taken by X?
a. Open policy
b. Valued policy
c. Running policy
149. One of the following is not a characteristic of a warranty in insurance policies?

a. A warranty may relate to the past, present or future.
b. A warranty may be implied in life and fire insurance.
c. Breach of warranty which is not coupled with fraud entitles the insured to a return of
premiums paid.
d. A warranty has to be strict complied with.
150. Which of the following cases of nonpayment of premium shall avoid the insurance?
a. Claim of a third party who was a victim in a vehicular mishap on the Compulsory Motor
Vehicle Liability Insurance (CMVLI).
b. Premium was only partially paid and the insured was sued for the balance at the time the
loss occurred.
c. Premium was not paid but the grace period in life insurance had not yet expired at the time
of death of the insured.
151. The insured is not entitled to a return of premiums paid if:

a. The insured has paid the premium in advance and the loss occurs before the effectivity date
of the policy.
b. The insured surrenders the life insurance policy.
c. The agent of the insurer is guilty of fraud or misrepresentation.
d. There is over-insurance by double insurance.
152. The insurer is not liable under a fire insurance policy where:
a. The fire that originated from an adjacent building caused the “LPG” tank in insured house
to explode.
b. The “LPG” tank in an adjacent building that exploded caused fire to the insured house.
c. The “LPG” tank in an adjacent building that exploded caused fire to the insured
house, explosion being an excepted risk in the policy.
d. The appliances in the insured house were damaged due to mishandling in an attempt to
rescue them from the fire.
153. Which of the following incidents is a friendly fire absolving the insurer under the fire
insurance policy?
a. Fire burning on a stove was too high due to ignorance of the maid, causing damage to
the wallpaper in the kitchen.
b. Small fire set on garbage was blown by sudden gush of strong wind setting fire on a nearby
house.
c. Gas leaked out from the “LPG” hose causing the fire burning on the stove to spread
uncontrollably.
154. The new Insurance code introduces new concepts or provisions to enhance the business of
insurance, except:
a. Bancassurance
b. Trust for charitable uses
c. Trust business for insurance companies
d. Mutual benefit insurance
Page 19 of 88
155. Perez applied for life insurance coverage with the BF Lineman Insurance Corporation and
immediately paid part of the premium. The application was forwarded to the office of the BF
Lineman in Gumaca, Quezon for transmittal to its head offices in Manila. Perez died before his
application was brought to the Manila Office of BF Lineman. Without knowing of his death, BF
Lineman approved the application and issued the corresponding policy. The beneficiary filed a
claim with the insurer which refused to pay on the ground that the contract was not perfected.
Was the insurance perfected?
a. Yes, there is already partial payment of the premium and this is the Cash and Carry Rule
b. Yes, application was already forwarded to the Manila branch, hence there is already
perfection of the Insurance contract
c. No, only part of the premium was paid and full payment is a condition precedent to the
perfection.
d. No, it is only when the insurer accepts the application and communicates the same to
the applicant and the latter pays the premium while he is good health that the
contract of insurance is perfected
Page 20 of 88
LABOR STANDARDS AND SSS LAW
1. Which of these is a leave benefit governed by the Labor Code?

a. Maternity leave
b. Solo Parent leave
c. Paternity leave
d. Service Incentive leave
2. The following shall be considered as compensable hours worked.

a. All time during which an employee is required to be on duty or to be at the employer's
premises or to be at a prescribed workplace
b. All time during which an employee is suffered or permitted to work
c. Both A and B
d. Neither A nor B
3. Which general principles shall govern in determining whether the time spent by an employee
is considered hours worked?
a. All hours are worked which the employee is required to give to his employer,
regardless of whether or not such hours are spent in productive labor or involve
physical or mental exertion.
b. An employee need not leave the premises of the workplace in order that his rest period
shall not be counted, it being enough that he stops working, rests completely and
leaves his workplace to go elsewhere, whether within or outside the premises of his
workplace.
c. If the work performed was necessary or it benefited the employer or the employee
could not abandon his work at the end of his normal working hours because he had
no replacement, all time spent for such work shall be considered as hours worked if
the work was with the knowledge of his employer or immediate supervisor.
4. The following are the reasons in limiting the number of working hours in each day except:
a. To encourage economic activity outside the workplace
b. To enable employees to participate intelligently in public concerns
c. To afford adequate time to employees to lead richer and more fruitful, meaning lives
d. Protection of health and welfare of the employees
5. Which of the following reflects the correct usage of terms in reference to work days and work
weeks?
a. Jason Mraz reports for work at 9 in the morning. His regular work day begins at 9
a.m. and ends at 6 p.m.
b. Katy Perry works at 7/11. Her work week consists of 168 hours, or 24/7 – 24
hours for 7 consecutive days.
c. Taylor Swift works for a bank that does not open during weekends. Her work week
consists of the weekdays – Mondays to Fridays – where her working hours begin at 8
a.m. and end at 5 p.m.
d. Adele reports for work at 8 in the morning. Though she reported at 8 a.m., her work
day is reckoned from 12 a.m.
6. In establishments where work is in different shifts, work done by the employee beyond his
eight-hour shift is considered________
a. Overtime work, which should not be compensated accordingly.
b. Overtime work, which should be compensated accordingly.
c. Overtime work, which depends if would be compensated.
Page 21 of 88
7. Statement 1: The normal eight (8) working hours mandated by law do not always mean
continuous and uninterrupted eight (8) hours of work.
Statement 2: The employer, in the lawful exercise of its prerogative, is prohibited from
reducing the 8-hour normal working time per day provided that no corresponding reduction
is made on the employee’s wage or salary equivalent to an eight-hour workday.
a. Only Statement 1 is correct.

b. Only Statement 2 is correct.
c. Both statements are correct.
d. Neither of the statements are correct.
8. This refers to alternative arrangements or schedules other than the traditional or standard
work hours, workdays, and workweek.
a. Standard work arrangements
b. Alternative arrangements
c. Flexible work arrangements
d. Temporary work arrangements
9. This refers to a situation where the normal workweek is reduced to less than six (6) days but
the total number of work-hours of 48 hours per week remains.
a. Standard Workweek
b. Flexible Workweek
c. Compressed Workweek
10. Which of the following statements is/are correct?

I. The normal hours of work of any employees shall not exceed eight (8) hours a day.
II. The normal eight-hour work a day does not apply to seamen.
III. The normal eight-hour work a day does not apply to public utility bus drivers and
conductors.
a. Only Statement I is correct.

b. Only Statement II is correct.
c. Only Statement III is correct.
d. All Statements are correct.
Article 83 of the Labor Code, Section 3, Department Order No. 118-12, series of 2012 and Sections 3 and
4, Department Order No. 129, series of 2013 provide that the normal eight-hour work a day applies not
only to ordinary employees but also to public utility bus drivers and conductors, and seamen,
respectively.
11. An employee may be required to perform overtime work in any of the following cases, except:
a. When the work is necessary to prevent loss or damage to perishable goods.
b. When an employee has rendered less than 8 hours work or has incurred absences
in his past working days.
c. When there is work to be performed on machines or equipment to avoid damages to
the employer.
d. Where the completion or continuation of the work started before the 8 hours is
necessary to prevent serious obstruction to the business.
12. It is an additional compensation given to a covered employee for working beyond eight hours
in a day.
a. Holiday pay
b. Nigh differential pay
c. Overtime pay
Page 22 of 88
13. What is the basis of overtime pay on an ordinary day?

a. Retroactive pay
b. Commissions
c. Regular wage
14. Overtime work rendered without approval of (but known to) the department head is
compensable:
a. If the overtime work was necessary.
b. If it benefited the company.
c. If the employee could not abandon his work at the end of his eight-hour work because
there was no substitute ready to take his place.
15. The obligation to pay overtime compensation is _________.

a. Dispensable
b. Irrelevant
c. Mandatory
d. Optional
16. Statement 1: Overtime pay can be incorporated into the monthly compensation package of
an employee.
Statement 2: Overtime work rendered without the approval but known to the department
may still be compensable.
a. Only Statement 1 is true

b. Only Statement 2 is true
c. Both Statements are true
d. Both Statements are false
17. Night shift differential is premium given to a covered employee for working between:
a. 9:00 PM and 6:00 AM
b. 10:00 PM and 6:00 AM
c. 11:00 PM and 5:00AM
d. 12:00 PM and 8:00 AM
18. Statement 1: The rest day is the period of inactivity of not less than 24 consecutive hours
given to an employee after rendering service for a week.
Statement 2: A week of labor is to be understood to embrace the ordinary number of six labor
days even in the presence of an express agreement to the contrary.
a. Only Statement 1 is true

b. Only Statement 2 is true
A week of labor is to be understood to embrace the ordinary number of six labor days, in the absence of
an express agreement to the contrary. As there is no such express agreement in the contract and an
intention to mean three labor days a week cannot otherwise be inferred from the terms of agreement, we
must assume that the parties meant a week of six labor days instead of three only. (Lee Tay vs.
Kapisanan Ng Mga Manggagawa Sa Kahoy Sa Filipinas, 96 Phil. 808.)
19. Generally, who has the right of preference in the schedule of rest day?
a. Employee
b. Employer
c. Alternate, the employer now then next month it’s the employee’s turn
d. none of the foregoing
Page 23 of 88
20. The following are the exceptions to the general rule that an employee may not be compelled
to work against his will, except:
a. Actual or impending emergencies
b. Urgent work to be performed on machinery or installations
c. Normal pressure of work due to normal circumstances
21. What is a premium pay?

a. A compensation given to employee for working on a regular holiday
b. It is an additional compensation given to a covered employee for working on a
special holiday or rest day
c. an additional compensation given to a covered employee for working beyond the
normal hours of work.
d. an additional compensation given to all employees, including managerial employees,
for working on a special holiday or rest day.
22. The rate of premium pay for working on a rest day is

a. 40%
b. 25%
c. 35%
d. 30%
23. John, a covered employee of company B worked on a Sunday. Which of the following
statements are correct?
a. He is automatically entitled to 30% premium pay for working on a Sunday as provided
under the Labor Code
b. he is not entitled to 30% premium pay
c. he is entitled to 30% premium pay only if Sunday is his established rest day
24. Under the labor code, it is a premium given to an employee during regular holidays, the
purpose of which is to prevent diminution of the monthly income of employees on account of
work interruptions.
a. holiday pay
b. night shift differential pay
c. overtime pay
d. hazard pay
25. Where such holiday falls on the employee's scheduled rest day, he shall be entitled to an
additional compensation of at least ____________ of his regular wage.
a. 50 percent
b. 30 percent
c. 75 percent
d. 100 percent
26. Statement I: Every worker shall not be paid his regular daily wage during regular holidays
except in retail and service establishments regularly employing less than ten (10) workers
Statement II: The employer may require an employee to work on any holiday but such
employee shall be paid a compensation equivalent to twice his regular rate.
a. Only Statement I is true

b. Only Statement II is true
Page 24 of 88
27. Regular that fall during the leave of absence of a covered employee, entitlement to holiday
pay will depend upon
a. if on leave with pay- not entitled to holiday pay
b. if on leave without pay - entitled to holiday pay
c. if on leave with pay - entitled to holiday pay
28. Holy Thursday and Good Friday fell on April 14 and 15, respectively. When will Jon Snow be
entitled to holiday pay?
a. Jon Snow did not report to work on April 13.
b. Jon Snow was on leave with pay on April 13.
c. Jon Snow was absent without leave on April 13.
29. Statement I: If the divisor is at least 261 days, the holiday pay of monthly-paid employees is
not deemed incorporated in the salary of monthly-paid employees.
Statement II: If the divisor is 314 or 365 days, the holiday pay is deemed included in the
salary of monthly-paid salaries.

If the divisor is at least 261 days, the holiday pay of monthly-paid employees is already deemed
incorporated in the salary of monthly-paid employees.
30. The following are not entitled to holiday pay, except:

a. Field personnel
b. Managerial employees
c. Officers and members of the managerial staff
d. Rank and file employees
Art. 82. Coverage. — The provision of this Title shall apply to employees in all establishments and
undertakings, whether for profit or not, but not to government employees, managerial employees, field
personnel members of the family of the employer who are dependent on him for support domestic helpers,
persons in the personal service of another, and workers who are paid by results as determined by the
Secretary of Labor in appropriate regulations.
31. The following are considered as Solo parents, except:

a. A person (male or female) who is left alone with the custody of his/her child because of
separation from his/her spouse.
b. A family member who assumes responsibility of head of the family because of the
death or absence of the parents for at least three (3) years.
c. An unmarried person who keeps and rears his/her child instead of having others care
for them.
d. A person who solely provides parental care or support to a child or children.
Section 3(a) RA 8972 otherwise known as the Solo Parent Welfare Act of 2002 provides that a family
member who assumes responsibility of head of the family because of the death or absence of the parents
for at least one year.
Page 25 of 88
32. In cases where work on a rest day is required and the reason therefor is not one of the
circumstances where work on such day may be compelled, the employee may work during
such rest day but:
a. The employee must be compensated by the hour.
b. The employee must provide the document ordering him to render work.
c. Only on a voluntary basis and expressed in writing.
d. It must be a matter of life and death.
33. Where the weekly rest day is given to all employees simultaneously:
a. The employee should make known such rest period by means of written notice.
b. Said notice must be posted conspicuously in the workplace at least 3 weeks before it
becomes effective.
c. Either A or B
d. Neither A nor B
Section 5(a), Rule III, Book III of the Omnibus Rules Implementing the Labor Code provides that when
the weekly rest day is given to all employees simultaneously, the employer should make known such rest
period by means of a written notice posted conspicuously in the workplace at least one week before it
becomes effective.
34. The following are entitled to holiday pay even when he or she is absent, except:
a. Employees on leave of absence without pay on the day immediately preceding the
regular holiday
b. Where there are 2 successive regular holidays and employee absents himself on
the day immediately preceding the first holiday
c. When day preceding regular holiday is non-working day or scheduled rest day
d. Employees on leave while on SSS or employee’s compensation benefits
Employees has the right to holiday pay even when they are not present at work however in case of
successive regular holiday or two (2) regular holidays, like Maundy Thursday and Good Friday, an
employee may not be paid for both holidays, if he absents himself from work on the day immediately
preceding the first holiday, unless he works on the first holiday, in which, he is entitled to his holiday pay
on the second holiday.
35. Miss Balbuena was working as a kasambay in the residence of Donya “CRA” Debyana. The
former was employed on January 2022. On December 2022, Miss Balbuena noticed that her
13th month pay was not included in her salary. She screamed and shouted. Donya “CRA”
Debyana argued that kasambahays are not covered by the rules on 13th month pay and even
if they were, she should have been employed at least a year (12mos.) during 2022. Are the
arguments of Donya correct?
a. Yes. Kasambahays are not covered by the 13th month pay law.
b. Yes. The argument about the minimum service requirement being one year is
indispensable in the 13th month pay law.
c. No. Both arguments are wrong and inconsistent with the law.
d. No. Because 13th month pay is received during the 3rd quarter of the year.
Previously, not covered by the 13th month pay law are employers of household helpers and persons in the
personal of another in relation to such workers. However, R.A. No. 10361 is now explicit in its
commandment that a domestic worker or kasambahay is entitled to 13th month pay as provided by law.
To be entitled to the 13th month pay benefit, it is imposed as a minimum service requirement that the
employee should have worked for at least one (1) month during a calendar year.
36. Which of the following is covered by the Right to Service Incentive Leave?
a. Managerial employees.
b. Persons in the personal service of another.
c. Field personnel.
Page 26 of 88
37. Where an employee was never paid his service incentive leave during all the time he was
employed, it was held that the same should be computed not from the start of employment
but a ______ after commencement of service, for it is only then that the employee is entitled to
the said benefit.
a. Day
b. Week
c. Month
d. Year
This is because the entitlement to said benefit accrues only from the time he has rendered at least one
year of service to his employer. The computation thereof should only be up to the date of termination of
employment. JPL Marketing Promotions vs. CA, (G.R. No. 151966)
38. How does the payment of wages of an employee computed when he/she worked for the first
8 hours during a special day that also falls on his/her rest day?
a. he/she shall be paid additional 20% of the daily rate of 100%
b. he/she shall be paid additional 30% of the daily rate of 100%
c. he/she shall be paid additional 50% of the daily rate of 100%
d. he/she shall be paid additional 75% of the daily rate of 100%
39. The following statement is true on computation of premium pay on special holiday, except:
a. if the employee did not work, he/she shall be paid of 100 percent of his salary
rate on that day.
b. if the employee worked, he/she shall be paid an additional 30 percent of his/her daily
rate on the first eight hours of work
c. if the employee worked overtime, he/she shall be paid an additional 30 percent of his
hourly rate on said day
d. if the employee worked that also fall on his/her rest day, he/she shall be paid an
additional 50 percent of his/her daily rate on the first eight hours of work.
Labor Advisory No. 06, Series of 2013 provides that if the employee did not work, the "no work, no pay"
principle shall apply, unless there is a favorable company policy, practice, or CBA granting payment on a
special day.
40. Cost of Living Allowance (COLA) is NOT included in the computation of:
a. Regular holidays
b. Other wage-related benefits such as premium pay and overtime pay.
c. Night-shift differential pay, 13th month pay and retirement pay.
d. Both B and C
Labor Advisory issued by DOLE dated July 7, 2011 provides that COLA is included on the computation
on the regular holidays but NOT included on the computation of other wage-related benefits such as
those mentioned in choices B and C.
41. If an employee worked on a special working day or special working holiday, what is he/she
entitled to receive?
a. His/her daily wage rate only.
b. Additional 50% to her/his daily wage rate.
c. Additional 100% to her/his daily wage rate.
d. Additional 30% only to her/his daily wage rate.
No premium pay is required since work performed on special working day or special working holiday is
considered work on an ordinary workday.
Page 27 of 88
42. Statement I: Every employee who is entitled to premium pay may likewise be entitled to the
benefit of overtime pay if he/she has rendered overtime work on such premium days as rest
days and regular and special days.
Statement II: In computing overtime pay, the cost-of-living allowance (COLA) provided under
the wage orders is included.

43. Statement I: When the work of the employee falls at night time, the receipt of overtime shall
preclude the right to receive night differential pay.
Statement II: The payment of overtime pay is the work done during the night.

The payment of overtime pay is the work done during the night while the payment of the night differential
pay is for the work done during the night. Thus when the work of the employee falls at night time, the
receipt of overtime shall not preclude the right to receive night differential pay.
44. Statement I: When the work of the employee falls at night time, the receipt of overtime shall
preclude the right to receive night differential pay.
Statement II: The payment of overtime pay is the work done during the night.

The payment of overtime pay is the work done during the night while the payment of the night differential
pay is for the work done during the night. Thus when the work of the employee falls at night time, the
receipt of overtime shall not preclude the right to receive night differential pay.
45. Statement I: Premium pay refers to the additional compensation required by law for work
performed within eight (8) hours on non-working days, such as rest days and regular and
special holidays.
Statement II: Overtime pay refers to the additional compensation for work performed beyond
eight (8) hours a day.
Statement III: Every employee who is entitled to premium pay may likewise be entitled to the
benefit of overtime pay if he/she has rendered emergency overtime work on such premium
days as rest days and regular and special holidays.
a. All statements are true

b. All statements are false
c. Only statement III is false
d. Only statement I is false
Every employee who is entitled to premium pay may likewise be entitled to the benefit of overtime pay if
he/she has rendered overtime work on such premium days as rest days and regular and special holidays.
Page 28 of 88
46. Statement I: In computing overtime work, “regular wage” or “basic salary” means “cash”
wage only without deduction for facilities provided by the employer.
Statement II: In computing overtime pay, the Basic Wage Increase provided under the Wage
Orders is not to be included.

It was declared therein that while Cost-of-living allowance (COLA) is included in the computation of the
regular holidays, it is not included in the computation of other wage-related benefits such as overtime
pay, premium pay, night-shift differential pay, 13th month pay and retirement pay.
47. What is the effect if the employer shortens the meal time of the employee to less than 20
minutes?
a. It shall be considered merely as rest period or coffee break, hence compensable
working time.
b. It is no longer compensable working time.
c. It is still considered as meal time.
d. The shortening of the meal time is absolutely prohibited.
The Labor Code prohibits the employer from shortening the meal time to less than 20 minutes. However,
the law allows the employee himself to request for the shortening of meal period to not less than 20
minutes. If so reduced, the same shall be considered as rest period or coffee break, and is considered as
compensable working time.
48. Rest periods or coffee breaks running from five (5) to twenty (20) minutes are considered as:
a. Meal time
b. Compensable working time
c. Non-compensable working time
d. Overtime
Rest periods of short duration during work hours are counted as hours worked. Therefore, rest periods or
coffee breaks from 5 to 20 minutes are compensable working time.
49. Which of the following is not true about night shift differential?
a. Night shift differential cannot be regarded as desirable considering the serious dangers
it may cause to the employee.
b. The rule on night shift differential pay applies to all employees subject to certain
exceptions.
c. A pay is given as a premium when the employee is supposed to sleep and rest in
accordance with the law of nature.
d. Managerial employees are one the exceptions on the general rule that night shift
differential pay applies to all employee. This is without condition or qualification
just like the other exceptions provided for by law.
Though managerial employees are excluded from the application on the rule of night shift differential
pay, the HANDBOOK ON WORKERS’ STATUTORY MONETARY BENEFITS issued by DOLE provides
qualifications for managerial employees. The night shifts differential does not apply to managerial
employees, if they meet all of the following conditions: (1) Their primary duty is to manage the
establishment in which they are employed or of a department or subdivision thereof; (2) They customarily
and regularly direct the work of two or more employees therein; and (3) They have the authority to hire
or fire other employees of lower rank; or their suggestions and recommendations as to hiring, firing, and
promotion, or any other change of status of other employees are given particular weight.
Page 29 of 88
50. The employees enumerated below are not entitled to Night Shift Differential, except:
a. Employee A, hired by J’s Karaoke Club as a guest relations officer who’s working
hours are from 5 P.M. up to 2 A.M. daily including Sundays and Holidays
b. Employee B who is a Social Worker under DSWD
c. Employee C, a driver-conductor of an Autobus transport whose performance is
supervised by his employer
d. Employee D, a kasambay in the personal service of another.
Under Article 82 of the Labor Code, field personnel are those whose performance of their job/service is
not supervised by the employer or his representative, the workplace being away from the principal office
and whose hours and days of work cannot be determined with reasonable certainty; hence, they are paid
specific amount for rendering specific service or performing specific work. If required to be at specific
places at specific times, employees including drivers cannot be said to be field personnel despite the fact
that they are performing work away from the principal office of the employee.
51. Ping Gabo is the Chief Engineer of the National Publishing Corp. with a monthly salary of
P30,000. He works over eight (8) hours daily from Monday to Saturday. In May, June and
July 2021, he rendered, each month, ten (10) hours beyond his regular work schedule. Is he
entitled to overtime pay and holiday pay?
Overtime pay Holiday pay
a. Yes Yes
b. Yes No
c. No Yes
d. No No
* The entitlement of Gabo to overtime pay and holiday pay is dependent on whether he is a managerial
employee or not. If he Is a managerial employee, he is not entitled to overtime pay and holiday pay. The
Labor Code provides that the provisions that grant overtime pay and holiday pay shall not apply, among
others, to managerial employees. A managerial employee is defined by the Code as referring to those whose
primary duty consists of the management of the establishment in which they are employed or of a department
or subdivision thereof, and to other officers or members of the managerial staff. Gabo, as Chief Engineer,
appears to be a managerial employee. On the other hand, his monthly pay is rather low for a managerial
employee. Despite his title, his duty may not consist of a management of department or of a subdivision
thereof.
52. After working from 10 a.m. to 5 p.m. on a Thursday as one of 5,000 employees in a beer
factory, A hurried home to catch the early evening news and have dinner with his family. At
around 10 p.m. of the same day, the plant manager called and ordered A to fill in for C who
missed the second shift.
Question 1: May A validly refuse the plant manager’s directive?

Question 2: Assuming that A was made to work from 11 p.m. on Thursday until 2 a.m. on
Friday, may the company argue that, since he was two hours late in coming to work on
Thursday morning, he should only be paid for work rendered from 1 a.m. to 2 a.m.?
Question 1 Question 2
a. Yes Yes
b. Yes No
c. No Yes
d. No No
*Question 1: YES. A may validly refuse to fill in for C. A may not be compelled to perform overtime
work considering that the plant manager’s directive is not for an emergency overtime work, as contemplated
under Article 89 of the Labor Code.
*Question 2: NO. Undertime is not off-set by overtime (Art. 88, Labor Code).
Page 30 of 88
53. Work may be performed beyond eight (8) hours a day provided that:
a. Employee is paid for overtime work an additional compensation equivalent to his
regular wage plus at least 30% thereof
b. Employee is paid for overtime work an additional compensation equivalent to his
c. Employee is paid for overtime work an additional compensation equivalent to his
54. The provisions of the Labor Code on the Working Conditions and Rest Periods of employees
are inapplicable to the following employees, except:
a. A supervisor in a fast food chain
b. A family driver
c. A laborer without any fixed salary, but receiving a compensation depending upon the
result of his work
d. A contractual employee
55. May the employer and employee stipulate that the latter’s regular or basic salary already
includes the overtime pay, such that when the employee actually works overtime he cannot
claim overtime pay?
a. Yes, provided there is a clear written agreement knowingly and freely entered into by
the employee
b. Yes, provided the mathematical result shows that agreed legal wage rate and the
overtime pay. Computed separately, are equal to or higher than the separate amounts
legally due
c. No, the employer and employee cannot stipulate that the latter’s regular or basic
salary already includes the overtime pay
d. Both A and B
56. LKG Garments Inc. makes baby clothes for export. As part of its measures to meet its orders,
LKG requires its employees to work beyond eight (8) hours everyday, from Monday to
Saturday. It pays its employees an additional 35% of their regular hourly wage for work
rendered in excess of eight (8) hours per day. Because of additional orders, LKG now requires
two (2) shifts of workers with both shifts working beyond eight (8) hours but only up to a
maximum of four (4) hours. Carding is an employee who used to render up to six (6) hours of
overtime work before the change in schedule. He complains that the change adversely
affected him because now he can only earn up to a maximum of four (4) hours’ worth of
overtime pay. Under the law, a change in work schedule is known as:
a. Company directive
b. Management prerogative
c. Management objective
57. A wage order may be reviewed on appeal by the National Wages and Productivity
Commission under these grounds, except:
a. Grave abuse of discretion
b. Non-conformity with prescribed procedure
c. Questions of law
d. Gross under or over-valuation
58. The following are exempt from the rules on minimum wages, except:
a. Household or domestic helpers
b. Homeworkers engaged in needle work
c. Workers’ in duly registered establishment in the cottage industry
d. Workers in the duly registered cooperative
Page 31 of 88
59. Z owns and operates a carinderia. His regular employees are his wife, his two (2) children,
the family maid, a cook, two (2) waiters, a dishwasher and a janitor. The family driver
occasionally works for him during store hours to make deliveries. On April 09, the
dishwasher did not report for work. The employer did not give his pay for that day is the
employer correct?
a. No, because employees have a right to receive their regular daily wage during
regular holidays
b. Yes, because April 09 is not a regular holiday
c. Yes, because of the principle of “a fair day’s wage for a fair day’s work
d. Yes, because he employs less than ten (10) employees
60. Salary as distinguished from wages

a. applies to compensation for manual labor, skilled or unskilled
b. are those paid to any employee as his remuneration or earnings payable by an
employer for work done or to be done, or for services rendered or to be rendered.
c. are exempt from attachment or execution.
d. denotes a compensation for a higher degree of employment.
61. “Piece rate employees” are those who are paid by results or other non-time basis. As such
they are NOT entitled to overtime pay for work done beyond eight hours if
a. their workplace is away from the company's principal place of work.
b. they fail to fill up time sheets.
c. the product pieces they do are not countable.
d. the piece rate formula accords with the labor department’s approved rates.
62. Corporation X is owned by L’s family. L is the President. M, L’s wife, occasionally gives loans
to employees of Corporation X. It was customary that loan payments were paid to M by
directly deducting from the employees’ monthly salary. Is this practice of directly deducting
payments of debts from the employee’s wages allowed?
a. Yes, because where the employee is indebted to the employer, it is sanctioned by the
law on compensation under Article 1706 of the Civil Code
b. Yes, because it has already become customary such that no express authorization is
required
c. No, because Article 116 of the Labor Code absolutely prohibits the withholding of
wages and kickbacks. Article 116 provides for no exception.
d. No, because an employee’s payment of obligation to a third person is deductible from
the employee’s wages if the deduction is authorized in writing
63. Which of the following is not a valid wage deduction?

a. Union dues.
b. Payment for lost or damaged equipment provided the deduction does not exceed
25% of the employee’s salary for a week
c. When the wage is subject of execution or attachment, but only for debts incurred for
food, shelter, clothing and medical attendance
d. Where the worker was insured with his consent by the employer, and the deduction is
allowed to recompense the employer for the amount paid by him as the premium of
the insurance
64. A situation that brought about where an increase in the prescribed wage rates results in the
elimination or severe contraction of intentional quantitative differences in wage or salary
rates between and among employee groups in an establishment as to effectively obliterate the
distinctions embodied in such wage rates based on skills, length of service and other logical
bases of differentiation.
a. Wage distortion
b. Wage garnishment
c. Wage differentiation
d. Wage attachment
Page 32 of 88
65. Which is not a procedural requirement for the correction of wage distortion in an
unorganized establishment?
a. Both employer and employee will attempt to correct the distortion
b. Settlement of the dispute through National Conciliation and Mediation Board (NCMB)
c. Settlement of the dispute through voluntary arbitration in case of failure to
resolve dispute through CBA dispute mechanism
d. A and B
66. In what instances do labor arbiters have jurisdiction over wage distortion cases?
a. When jurisdiction is invoked by the employer and employees in organized
establishments
b. When the case is unresolved by Grievance Committee
c. After the panel of voluntarily arbitrators has made a decision and the same is
contested by either party
d. In unorganized establishments when the same is not voluntarily resolved by the
parties before the NCMM.
67. R was employed as an instructor of Cruz College located in Santiago City, Isabela. Pursuant
to a stipulation in R’s employment contract that the college has the prerogative to assign R in
any of its branches or tie-up schools as the necessity demands, the college proposed to
transfer hi to Ilagan, a nearby town. R filed a complaint alleging constructive dismissal since
his re-assignment will entail an indirect reduction of his salary or diminution of pay
considering that additional allowance will not be given to cover for board and lodging
expenses. R, however, failed to prove that allowances were given in similar instances in the
past. Is R’s contention that he will suffer constructive dismissal in view of the alleged
diminution of benefit correct?
a. Yes, such transfer should require an automatic additional allowance; the non-granting
of said allowance amounts to a diminution of benefit
b. No, R failed to present evidence that the college committed to provide the
additional allowance or that they were consistently granting such benefit as to
have ripened into a practice which cannot be peremptorily withdrawn. Hence,
there is no violation of the rule against diminution of pay
c. No, R’s re assignment did not amount to constructive dismissal because the college
has the right to transfer R based on contractual stipulation
68. 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?
a. No, because an employer is prohibited from interfering with the freedom of its
employees to dispose of their wages.
b. Yes, because of Robert's signed authorization to give Wanda one half of his salary.
c. Yes, because it is Robert's duty to financially support his minor children.
d. No, because Robert's Kasulatan is based on an illegal consideration and is of doubtful
legal validity.
69. An employer may require an employee to work on the employee's rest day
a. to avoid irreparable loss to the employer.
b. only when there is a state of calamity.
c. provided he is paid an extra of at least 50% of his regular rate.
d. subject to 24-hour advance notice to the employee.
Page 33 of 88
70. A, a worker of ABC Company, was on leave with pay on April 13, 2023. He reported for work
on April 14 and 15, Maundy Thursday and Good Friday, respectively, both regular holidays.
Assumed that A’s regular daily wage is ₱570, how much would be A’s wages for the said
holidays?
a. ₱570
b. ₱1,140
c. ₱2,148
d. ₱2,280
* A is entitled to holiday pay equivalent to two hundred percent (200%) of his regular daily wage for the two
successive holidays that he worked (Section 6[a], Rule IV, Book III of the Omnibus Rules implementing the
Labor Code).
71. Which of the following is not a regular holiday?

a. New Year’s Eve
b. Eidil Fitr
c. Father’s Day
d. Independence Day
72. To avail himself of paternity leave with pay, when must the male employee file his
application for leave?
a. Within one week from the expected date of delivery by the wife.
b. Not later than one week after his wife’s delivery or miscarriage.
c. Within a reasonable time from the expected deliver date of his wife.
d. When a physician has already ascertained the date the wife will give birth.
73. Which of the following is NOT a requisite for entitlement to paternity leave?
a. The employee is cohabiting with his wife when she gave birth or had a miscarriage.
b. The employee is a regular or permanent employee.
c. The wife has given birth or suffered a miscarriage.
d. The employee is lawfully married to his wife.
74. H files for a seven-day paternity leave for the purpose of lending support for his wife, W, who
suffered a miscarriage through intentional abortion. W also filed for maternity leave for five
weeks. H and W are legally married but the latter is with her parents, which is a few blocks
away from H’s house. Which of the following statements is the most accurate?
a. Paternity leave shall be denied because it does not cover aborted babies
b. Paternity leave shall be denied because W is with her parents
c. Maternity leave shall be denied because it does not cover aborted babies
d. Maternity leave shall be denied because grant of paternity leave bars claim for
maternity leave
75. Which of the following grounds exempts an enterprise from the service incentive leave law?
a. The employees already enjoy 15 days’ vacation leave with pay.
b. The employer's business has been suffering losses in the past three years.
c. The employer regularly employs seven employees or less.
d. The company is located in a special economic zone.
76. If not used by the end of the year, the service incentive leave shall be
a. carried over to the next year.
b. converted to its money equivalent.
c. Forfeited.
d. converted to cash and paid when the employee resigns or retires.
77. Which type of employee is entitled to a service incentive leave?

a. Managerial employees
b. Field personnel
c. Government workers
d. Part-time workers
Page 34 of 88
78. 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?
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 expressly provided 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.
* Article 95 of the Labor Code. The employee is already given vacation leave of 10 days. This is deemed
compliance with the requirement of service incentive leave under the law.
79. Who among the following is not entitled to 13th month pay?
a. Stephanie, a probationary employee of a cooperative bank who rendered six (6)
months of service during the calendar year before filing her resignation
b. Rafael, the Secretary of a Senator
c. Selina, a cook employed by and who lives with an old maid and who also tends the
sari-sari store of the latter
d. Roger, a house gardener who is required to report to work only thrice a week
80. Which of the following is not considered an employer by the terms of the Social Security Act?
a. A self-employed person
b. The government and any of its political subdivisions, branches or
instrumentalities, including corporations owned or controlled by the government
c. A natural persons, domestic or foreign, who carries on in undertaking or activity of
any kind and uses the services of another person who is under his orders as regards
the employment
d. A foreign corporation
81. Jenny, a receptionist at Company X, is covered by the SSS. She was pregnant with her
fourth child when she slipped in the bathroom of her home and had a miscarriage.
Meanwhile, Company X neglected to remit the required contributions to the SSS. Jenny
claims maternity leave benefits and sickness benefits. Which of these two may she claim?
a. Only maternity leave benefits
b. Only sickness benefits
c. Either one of them
d. None of them
82. Which is not a valid payment of wages?

a. Employer paid using Philippine Peso
b. Employer paid partly in cash and partly in kind and such was payment for facilities
c. Employer paid using a check because it is his customary way of payment
d. Employer paid using a voucher because the employee expressly agreed to be paid
in such manner
83. During the 15th of the month an employer went to paint the town red together with his
employee. While they were in a bar that was just beside their office, the employee asked for
his wage so that he may be able to give contribution to their bill so the employer complied
and paid him. Valid?
a. Yes, because the employee asked to be paid in the bar, thus, he is estopped from
claiming otherwise
b. Yes, because payment of wages shall be made at or near the place of undertaking
c. No, because an employer is prohibited from paying wages in any bar, night or day
club
d. No, because an employer is prohibited from interfering with how the employee spends
his wage
Page 35 of 88
84. In the aforementioned problem in number 83, what if it was the wife who was seeking
payment for the wages, however, not anymore in the bar and the employer paid her. Valid?
a. No, because the wife although the income forms part of their conjugal property the
wife is not entitled to receive it
b. No, because wages should be paid directly to the workers, unless the wife is
authorized in writing by the employee
c. Yes, because a wife has a right to her husband’s income since it forms part of their
conjugal property
d. Yes, because the husband being a habitual drunkard the wife may be paid in order
that she may receive the support due to her under the Family Code
85. A health personnel comes to you for advice. S/he says that s/he is working in a hospital
with only a bed capacity of only 50 and that the population in their city is 1.1M. S/he asks
what her regular office hours.
a. Six hours a day for five days a week
b. Six hours a day for six days a week
c. Eight hours a day for six days a week
d. Eight hours a day for five days a week
86. In the preceding set of facts (number 85) suppose that there is an exigency which required
the health personnel to work for more than the regular. How much should she be paid?
a. 100% of the regular wage plus at least 30% of the regular wage for work on the
sixth day
b. 100% of the regular wage plus at least 30% of their overtime pay
c. 100% of the regular wage plus 30% of the regular wage plus another 30% as premium
pay
d. 100% of the regular wage plus 30% of the regular wage plus 25% day-off pay
87. What refers to the additional compensation for work performed within eight (8) hours on
non-work days?
a. Overtime Pay
b. Premium Pay
c. Night Shift Differential
d. Minimum Wage
88. Wages can be paid through a bank if the following requirements are met except:
a. Upon written permission of the employees or workers concerned.
b. The bank is located within a radius of 1 km from the place of work.
c. The establishment must have at least 25 employees.
d. The wage must be paid within the period fixed by the Labor Code.
89. An establishment would like to be exempted from the latest minimum wage order for the
Cities of Angeles, San Fernando and Mabalacat. Which agency of the government should the
establishment give its application of exemption?
a. National Wages Productivity Commission (NWPC)
b. National Wages and Productivity Commission (NWPC)
c. Regional Tripartite Wages and Productivity Board (RTWPB)
d. Regional Office of the Department of Labor and Employment (DOLE)
90. The National Wages Productivity Commission (NWPC) issued guidelines that list four
exemptible establishments. In its issued wage order, Regional Tripartite Wages and
Productivity Board – Region 3 (RTWPB-RIII) exempted an establishment not included in the
NWPC’s list. Is the exemption in the wage order valid?
a. No, because even though the RTWPB is a thinking group of men and women, it is
guided by statutory standards and bound by the rules and guidelines prescribed by
the NWPC.
b. Yes, but it required the approval of the NWPC.
c. No, because the RTWPB cannot grant exemptions to establishments in a wage order.
d. Yes, because the list was not exclusive and the RTWPB has the authority to
include/exclude any establishment.
Page 36 of 88
91. Over the years, a boutique with a sales clerk was having negative variances. The sales clerk
was dismissed for loss of trust and confidence. He was given his final pay less a negative
variance incurred by the store. Is the deduction of the negative variance valid?
a. Yes, because the sales clerk must pay for what he got from the store.
b. Yes, because there is a prima facie responsibility on the part of the sales clerk to make
good the negative variances incurred by the store.
c. No, because such deduction is not fair and reasonable.
d. No, because it was not proven that the clerk stole the negative variance.
92. Which of these benefits is an employee entitled to if he works for a retail establishment
which employs only 5 workers?
a. Holiday Pay
b. Service Incentive Leave
c. Night Shift Pay
d. Retirement Pay
93. “Piece rate employees” are those who are paid by results or other non-time basis. As such
they are NOT entitled to overtime pay for work done beyond eight hours if:
a. the piece rate formula accords with the labor department’s approved rates.
b. their workplace is away from the company's principal place of work.
c. they fail to fill up time sheets.
d. the product pieces they do are not countable.
94. In a scenario like typhoon Odette, who may be required by the employer to work overtime
when necessary to prevent loss of life or property?
a. Security and safety personnel
b. Employees with first aid training
c. Health personnel
d. Any employee
95. To avail himself of paternity leave with pay, when must the male employee file his
application for leave?
a. Not later than one week after his wife’s delivery or miscarriage
b. When a physician has already ascertained the date, the wife will give birth.
c. Within a reasonable time from the expected deliver date of his wife.
d. Within one week from the expected date of delivery by the wife.
96. X Company’s CBA grants each employee a 14th month year-end bonus. Because the
company is in financial difficulty, its head wants to negotiate the discontinuance of such
bonus. Would such proposal violate the “non-diminution rule” in the Labor Code?
a. Yes, since the rule is that benefits already granted in a CBA cannot be withdrawn or
reduced.
b. No, since the law does not prohibit a negotiated discontinuance of a CBA benefit.
c. No, but it will certainly amount to negotiating in bad faith.
d. Yes, since such discontinuance will cancel the enjoyment of existing benefits.
97. Which of the following grounds exempts an enterprise from the service incentive leave law?
a. The employer's business has been suffering losses in the past three years.
b. The company is located in a special economic zone.
c. The employees already enjoy 15 days’ vacation leave with pay.
d. The employer regularly employs seven employees or less.
98. Which of the following is NOT a requisite for entitlement to paternity leave?
a. The wife has given birth or suffered a miscarriage.
b. The employee is cohabiting with his wife when she gave birth or had a miscarriage.
c. The employee is lawfully married to his wife.
d. The employee is a regular or permanent employee.
99. When an employee works from 8 a.m. to 5 p.m. on a legal holiday falling on his rest day,
which of the following formulas do you use to compute for his day's wage on that day?
a. His daily regular wage
b. His regular daily wage plus 200%
c. His regular daily wage multiplied by 200%
d. His regular daily wage multiplied by 200% plus 30% of the 200%
Page 37 of 88
100. Application for the exemption from compliance with the prescribed wage increase must be
filed _______.
a. Within 30 days from the issuance of the order
b. Within 45 days from the issuance of the order
c. Within 60 days from the issuance of the order
d. Within 75 days from the issuance of the order
101. The following statements are presented to you for evaluation:

I. Payment of wages by means of promissory notes, vouchers, coupons, tickets,
tokens, chit, or any other object than the legal tender is prohibited unless if
expressly requested by the employee.
II. Hour(s) of work includes all the time during which an employee is required to be on
duty or to be at a prescribed workplace.

a. Both Statements are true
b. Both Statements are false
c. Only Statement I is true
d. Only Statement II is true
102. Karen, a coffee shop worker of 5 months, requested her employer for 5 days' leave with pay
to attend to the case that she filed against her husband for physical assault two weeks
earlier. May the employer deny her request for leave with pay?
a. Yes, the reason being purely personal, approval depends on the employer’s discretion
and is without pay.
b. No, as victim of physical violence of her husband, she is entitled to five days
paid leave to attend to her action against him.
c. No, the employer must grant the request but the leave will be without pay.
d. Yes, since she is not yet a permanent employee.
103. In computing for 13th month pay, Balagtas Company used as basis both the employee’s
regular pay and the cash value of his unused vacation and sick leaves. After two and a half
years, it announced that it had made a mistake and was discontinuing such practice. Is the
management action legally justified?
a. Yes, since 13th month pay should only be one-twelfth of the regular pay.
b. Yes, an error is not a deliberate decision, hence may be rectified.
c. No, since the erroneous computation has ripened into an established, non-
withdrawable practice.
d. No, employment benefits can be withdrawn only through a CBA negotiation.
104. Ronel, Aldrin, and Jason were employees of Deli Bakery who resigned from their jobs but
wanted to file money claims for unpaid wages and 13th month pay. Ronel’s claim totals
P20,000.00, Aldrin’s P3,000.00, and Jason’s P22,000.00. Aldrin changed his mind and now
also wants reinstatement because he resigned only upon the instigation of Ronel and Jason.
Where should they file their claims?
a. With the DOLE regional director for Ronel and Jason’s claims with no reinstatement;
with the labor arbiter for Aldrin’s claim with reinstatement.
b. With the Office of the Regional Director of the Department of Labor for all claims to
avoid multiplicity of suits.
c. With a labor arbiter for all three complainants.
d. With the DOLE Regional Director provided they are consolidated for expediency.
105. Which of the following statements is true?

a. Seasonal workers are not entitled to holiday pay.
b. Every employee who is entitled to premium pay is likewise entitled to the
benefit of overtime pay.
c. Where the covered employee is paid on piece rate basis, his holiday pay shall not be
less than his average daily earnings for the last ten (10) actual working days preceding
the regular holiday.
d. The minimum statutory premium pay rates for work performed on a rest day which is
also a special day is an additional 30% of the daily rate of 100% or a total of 130%.
Page 38 of 88
106. Overtime pay compensation:

a. Can be waived by the employee unilaterally
b. Can be waived by agreement of the employer and employee
c. Can be waived if substituted by the employer with other fringe benefits
d. Cannot be waived in any case
107. An employee may be compelled to render overtime work:

a. Whenever the employer deems it necessary.
b. Whenever there is urgent work to be done.
c. When overtime work is demanded by circumstances.
d. When overtime work is necessary to avail of favorable whether work is
dependent thereon.
108. Adoption of compressed work week is:

a. Voluntary on the part of the employer.
b. Compulsory on the part of the employees.
c. Discretionary on the part of the employees.
d. By agreement between the employer and the majority of the employees.
109. In order not to adversely affect the daily subsistence of an employee, what must you do
should a worker incur an undertime, and subsequently renders overtime work?
a. Deduct the undertime in computing the overtime pay.
b. The overtime should be offset against the undertime.
c. Deduct the undertime from accrued leave and pay the overtime.
d. Deduct the undertime from the daily rate and pay the overtime.
110. XYZ Corporation provided bonus equivalent to 200% of regular wage to its employees in
2019 due to the Company’s performance. However, in 2020 and 2021, XYZ Corporation did
not release the same performance bonus due to the advent of Covid-19 pandemic. Feeling
aggrieved, the employees lodged a complaint against the employer for violation of non-
diminution of benefits rule under the labor standards of the Labor Code. Which statement is
correct?
a. The employees are correct since the bonus is legally demandable and enforceable
obligation since it was given without any condition imposed for its payment
b. The employees are not correct since the bonus is not legally demandable and
enforceable obligation since the same is merely a supplement/benefit given
under certain conditions
c. The employer should release the bonus even if at the expense of the Company’s
liquidity concerns
111. After working as a waitress for five (5) years, Diana was dismissed for cause. She remained
jobless for one (1) year and was not able to pay SSS premiums during that period. While
looking for another job, she met a vehicular accident resulting in the amputation of her legs.
She filed a claim for disability benefits with the SSS. Which of the following should be the
correct ruling of the SSS on Diana’s claim?
a. Not entitled because at the time of the accident she was not paying SSS premiums.
b. Not entitled because the accident is not work-connected.
c. Entitled because although not actually employed at the time of the accident she
was still considered an SSS member.
d. Not entitled because she was dismissed for cause and thus lost her SSS benefits.
112. The following defenses may be interposed by the Social Security System (SSS) against a
claim for compensation made by a covered employee or his dependents, except:
a. The injury is not work-connected or the sickness is not occupational.
b. The disability or death was occasioned by the employee’s intoxication, willful intention
to injure or kill himself or another, or his notorious negligence.
c. The claim was filed beyond two (2) years from the time the cause of action
accrued.
d. No notice of sickness or death was given to the employer.
Page 39 of 88
113. Alice, single, has been active member of the Social Security System (SSS) for the past 20
months. She became pregnant out of wedlock and on her 7th month of pregnancy, she was
informed that she would have to deliver the baby through caesarian section because of some
complications. Can Alice claim maternity benefits?
a. Yes, the law does not make distinctions between married and unmarried female.
b. Yes, since she is regular employee
c. No, only married employees are entitled to the right provided she has paid at least 3
monthly contributions
d. No, being out of wedlock
114. Don Ricardo, a widower, lived alone in a house with a large garden, One day, he noticed
that the plants in his garden needed trimming. He remembered that Lando, a 17-year old
out-of-school youth, had contacted him in church the other day looking for work. He
contacted Lando who immediately attended to Don Luis’s garden and finished the job in
three days. Does Don Ricardo need to register Lando with the SSS?
a. Yes, all employees are required to be covered and reported.
b. Yes, he performed a task which is necessary and desirable to his employer
c. No, a person below 18 is not allowed to work hence not entitled to be covered under
SSS
d. No, because he is purely a casual employee
115. Mario Maglalang is an employee of a foundry shop in Malabon, Metro Manila. He is able to
make ends meet with his salary of P4,000.00 a month. One day, he asked his employer to
stop deducting from his salary his SSS monthly contribution, reasoning out that he is
waiving his social security coverage. If you were Mario’s employer, would you grant the
request?
a. Yes, because labor cases should be decided not only based on law but also based on
equity
b. Yes, for humanitarian reasons under the Labor Code
c. No, SSS contribution is compulsory for both covered employer and covered
employee
d. No, since the employee’s share is 2/3 of the contribution
116. Because of stress in caring for her 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. After surgery, her physician advised Tammy to be on full bed rest for 6
weeks. Meanwhile, the biopsy of the sample issue taken from the mass in Tammy’s uterus
showed a beginning malignancy that required an immediate series of chemotherapy once a
week for 4 weeks. What benefit/leave can Tammy obtain from her employer?
a. RA 9710 or the Gynecological Leave
b. RA 11210 or the Expanded Maternity Leave
c. RA 8972 or the Solo Parent Leave
d. All of the above
117. Using the information in number 116, Up to how many days can Roger, Tammy’s second
legitimate spouse and the father of her two legitimate younger children can possibly claim as
a benefit?
a. 7 days only
b. 14 days only
c. 30 days only
d. No leave can be granted
118. Which of the following statements stress an important principle for the entitlement to
Maternity Leave under the SSS law?
a. payment shall be advanced by the employer within 30 days from the filing of the
maternity leave application
b. payment shall be advanced by the employer within 15 days from the filing of the
maternity leave application
c. Maternity benefits shall be paid only for the first 2 deliveries of miscarriages
d. Maternity benefits shall be paid only for the first 5 deliveries of miscarriage
Page 40 of 88
119. The following documents shall be submitted to the agency to enjoy maternity leave, except:
a. Accomplished Application for Leave (Civil Service Form No. 6);
b. Medical Certificate issued by a government or private physician, as proof of pregnancy
and estimated date of delivery;
c. Solo Parent I.D., for solo parents who want to avail of the additional maternity leave of
15 days
d. Marriage certificate
120. Statement I: Beginning on the last day of the month when an employee's compulsory
coverage takes effect and every month thereafter during his/her employment, his/her
employer shall pay, with respect to such covered employee, the employer's contribution in
accordance with the schedule and the rate of contributions as may be determined and fixed
by the Commission in accordance with the Social Security Act of 2018.
Statement II: Notwithstanding any contract to the contrary, an employer shall not deduct,
directly or indirectly, from the compensation of his/her employees covered by the SSS or
otherwise recover from them the employer's contributions with respect to such employees.

121. Which of the following are limitations on the grant of maternity benefits?
a. The maternity benefits provided for under the Social Security Act of 2018 shall be paid
only for the first (1st) four (4) deliveries or miscarriages.
b. The payment of daily maternity benefits shall be a bar to the recovery of sickness
benefits under the Social Security Act of 2018 for the same period for which daily
maternity benefits have been received.
c. Both A and B
d. Neither A nor C
122. Under the SSS law, to qualify for the grant of the sickness benefit, the member must
meet the following requirements, except:
a. Has paid at least six (6) monthly contributions within the twelve-month (12)
period immediately before the semester of sickness or injury;
b. Was confined for at least four (4) days either in a hospital or elsewhere as defined by
the SSS;
c. Has notified the employer, if employed, or the SSS, if unemployed or SE/VM of the
sickness or injury;
d. Has used up all current company sick leave with pay for the current year, if employed,
except sea-based OFWs.
123. Under the SSS law, the following shall be deemed permanent total disability, except:
a. Complete loss of sight of both eyes
b. Brain injury resulting to incurable imbecility or insanity
c. Loss of one limbs at or above the ankle or wrists
d. Permanent complete paralysis of two limbs
124. If disability is permanent partial and such disability occurs after thirty-six (36) monthly
contributions have been paid prior to the semester of disability, Complete and Permanent
Loss of/Use of One hand shall be entitled to permanent partial disability for a period not
longer than:
a. 10 months
b. 6 months
c. 20 months
d. 39 months
Page 41 of 88
Loss of/Use of One thumb shall be entitled to permanent partial disability for a period not
longer than:
a. 10 months
b. 8 months
c. 6 months
d. 5 months
Loss of/Use of One index finger shall be entitled to permanent partial disability for a period
not longer than:
a. 10 months
b. 8 months
c. 6 months
d. 5 months
Loss of/Use of One middle finger shall be entitled to permanent partial disability for a
period not longer than:
a. 10 months
b. 8 months
c. 6 months
d. 5 months
Loss of/Use of One ring finger shall be entitled to permanent partial disability for a period
not longer than:
a. 5 months
b. 6 months
c. 8 months
d. 10 months
Loss of/Use of One little finger shall be entitled to permanent partial disability for a period
not longer than:
a. 3 months
b. 5 months
c. 6 months
d. 8 months
Loss of/Use of One big toe shall be entitled to permanent partial disability for a period not
longer than:
a. 5 months
b. 6 months
c. 8 months
d. 10 months
Loss of/Use of One arm shall be entitled to permanent partial disability for a period not
longer than:
a. 39 months
b. 31 months
c. 50 months
d. 46 months
Page 42 of 88
Loss of/Use of One foot shall be entitled to permanent partial disability for a period not
longer than:
a. 39 months
b. 31 months
c. 50 months
d. 46 months
Loss of/Use of One leg shall be entitled to permanent partial disability for a period not longer
than:
a. 39 months
b. 31 months
c. 50 months
d. 46 months
Loss of/Use of One ear shall be entitled to permanent partial disability for a period not
longer than:
a. 10 months
b. 20 months
c. 50 months
d. 39 months
Loss of/Use of Both ears shall be entitled to permanent partial disability for a period not
longer than:
a. 10 months
b. 20 months
c. 50 months
d. 46 months
Loss of/Use of hearing of one ear shall be entitled to permanent partial disability for a
a. 10 months
b. 20 months
c. 50 months
d. 25 months
Loss of/Use of hearing of both ears shall be entitled to permanent partial disability for a
a. 10 months
b. 20 months
c. 50 months
d. 25 months
Loss of/Use of sight of one eye shall be entitled to permanent partial disability for a period
not longer than:
a. 10 months
b. 20 months
c. 50 months
d. 25 months
Page 43 of 88
139. Which of the following statements is false regarding the Method of Collection and Payment
of SSS contributions?
a. The SSS shall require a complete and proper collection and payment of contributions
and proper identification of the employer and the employee.
b. Payment of contributions and other obligations may be made in cash, checks, stamps,
coupons, tickets or other reasonable devices that the Commission may accept and
adopt under such guidelines it may issue.
c. The guidelines in the acceptance of properties offered through consignation shall
continue to apply, subject to Section 33 of the Social Security Act of 2018.
d. The guidelines on the enhanced contributions collection process [SSC Circular No.
2017-010 (19 October 2017) per SSC Resolution No. 687-A-s.2017 (4 October 2017)]
shall continue to apply, subject to Section 33 of the Social Security Act of 2018.
140. Under the SSS law, what is the nature of liability of a person or entity engaging the services
of an independent contractor for payment of the worker’s benefits?
a. Jointly
b. Solidarily
c. Subsidiarily
141. Which of the following statements is incorrect regarding the remittance of contributions of
Self-Employed Member of SSS?
a. Self-employed members shall remit their monthly contributions yearly on such
dates and schedules as the Commission may specify through rules and
regulations.
b. No retroactive payment of contributions shall be allowed, except as provided in Section
22-A of the Social Security Act of 2018 and this rule.
c. Contributions for the months of January to September of a given calendar year may be
paid up to December 31 of the same year
d. Payment for one or two or all the months for a calendar quarter may be made on the
month following the applicable quarter.
142. The remittance of contributions by the employer shall be supported by a quarterly

collection list such as the SSS Form R-3 to be submitted to the SSS at the end of each
calendar quarter indicating the following, except:
a. Correct ID number of the employer
b. The correct names and the SSS numbers of the employees
c. The correct address and the contact numbers of the employees
d. The total contributions paid for their accounts during the quarter
143. Which of the following presents an incorrect legal principle?

a. On the last day of the calendar month when an employee’s compulsory coverage takes
effect and every month thereafter during his/her employment, the employer shall
deduct and withhold from such employee’s monthly salary, wage, compensation or
earnings, the employee’s contribution in an amount corresponding to his/her salary,
wage, compensation or earnings during the month in accordance with the MSCs, the
schedule and the rate of contributions as may be determined and fixed by the
Commission, subject to the provisions of Section 4, paragraph (a), sub-paragraph (9)
of the Social Security Act of 2018.
b. The Monthly Salary Credits (MSCs), the schedule and the rate of contributions
shall not apply to Self-Employed, Voluntary Member and other members.
c. Every employer shall issue a receipt for all contributions deducted from the employee's
compensation or shall indicate such deductions on the employee's pay slips or
envelopes.
Page 44 of 88
144. Which of the following statements is incorrect regarding tax exemptions, legal process and
Lien of SSS?
a. All laws to the contrary notwithstanding, the SSS and all its assets and properties, all
contributions collected, all accruals thereto and income or investment earnings
therefrom, as well as supplies, equipment and papers or documents shall be exempt
from any tax, assessment, fee, charge, customs or import duty.
b. Any tax assessment imposed against the SSS shall be unenforceable.
c. No tax measure of whatever nature enacted shall apply to the SSS, unless it expressly
revokes the declared policy of the State granting tax-exemption to the SSS and
freedom from any assessment, fee, change, customs or import duty expressly provided
for in Section 2 of the Social Security Act of 2018.
d. All laws to the contrary notwithstanding, all benefit payments made by the SSS shall
be exempt from all kinds of taxes, fees or charges, and shall not be liable to
attachments, garnishments, levy or seizure by or under any legal or equitable process
whatsoever, either before or after receipt by the person or persons entitled thereto,
except to pay any debt of the member to the SSS.
Any tax assessment imposed against the SSS shall be null and void.
145. Whoever shall obtain or receive any money or check under the Social Security Act of 2018 or
any agreement thereunder, without being entitled thereto with intent to defraud any member,
employer or the SSS, shall be fined:
a. not less than five thousand pesos (P5,000.00) nor more than twenty thousand
pesos (P20,000.00) and imprisoned for not less than six (6) years and one (1) day
nor more than twelve (12) years.
b. not less than ten thousand pesos (P10,000.00) nor more than twenty thousand pesos
(P20,000.00) and imprisoned for not less than six (6) years and one (1) day nor more
than twelve (12) years.
c. not less than fifteen thousand pesos (P15,000.00) nor more than twenty thousand
pesos (P20,000.00) and imprisoned for not less than six (6) years and one (1) day nor
more than twelve (12) years.
d. not less than five thousand pesos (P5,000.00) nor more than thirty thousand pesos
(P30,000.00) and imprisoned for not less than three (3) years and one (1) day nor more
than six (6) years.
146. Any employer who, after deducting the monthly contributions or loan amortizations from
his/her employee's compensation, fails to remit the said deduction to the SSS within thirty
(30) days from the date they became due, shall be presumed to have misappropriated such
contributions or loan amortizations and shall suffer the penalties provided for:
a. Malversation of Public Funds or Property
b. Falsification by Private Individual and Use of Falsified Document
c. Swindling or Estafa
d. Civil indemnity only
147. Any employee of the SSS who receives or keeps funds or property belonging, payable or
deliverable to the SSS and who shall appropriate the same, or shall take or misappropriate,
or shall consent, or through abandonment or negligence, shall permit any other person to
take such property or funds, wholly or partially, shall suffer the penalties provide for:
d. Plunder
Page 45 of 88
148. Whoever, for the purpose of causing any payment to be made under the Social Security Act
of 2018, or under an agreement thereunder, where none is authorized to be paid, shall make
or cause to be made false statement or representation as to any compensation paid or
received or whoever makes or causes to be made any false statement of a material fact in any
claim for any benefit payable under the Social Security Act of 2018 , or application for loan
with the SSS, or whoever makes or causes to be made any false statement, representation,
affidavit or document in connection with such claim or loan, shall suffer the penalties
provided for:
d. Plunder
149. Whoever fails or refuses to register employees or himself/herself, in case of the covered self-
employed, shall be punished by a fine of:
a. not less than ten thousand pesos (P10,000.00) nor more than thirty thousand pesos
(P30,000.00) and imprisonment for not less than six (6) years and one (1) day nor
more than twelve (12) years.
b. not less than five thousand pesos (P5,000.00) nor more than twenty thousand
pesos (P20,000.00) and imprisonment for not less than six (6) years and one (1)
day nor more than twelve (12) years.
c. not less than five thousand pesos (P5,000.00) nor more than twenty thousand pesos
(P20,000.00) and imprisonment for not less than three (3) years and one (1) day nor
more than six (6) years.
d. not less than ten thousand pesos (P10,000.00) nor more than thirty thousand pesos
(P30,000.00) and imprisonment for not less than three (3) years and one (1) day nor
more than six (6) years.
150. During the month of January of each year, the President and CEO shall prepare for
submission to the President of the Republic of the Philippines and to the Congress of the
Philippines a report of SSS operations during the preceding year, which shall include the
following:
a. Statistical data on number of persons covered and benefited
b. Statistical data on the duration and amount of benefits paid
c. Statistical data on their occupations and civil status
d. Statistical data on finances of the SSS at the close of the said year
Page 46 of 88
GOVERNMENT PROCUREMENT LAW
1. The following are presented to you:

I. Advisory and review services
II. Pre-investment or feasibility studies
III. Design
IV. Construction supervision
V. Management and related services
VI. Other technical services or special studies
Which of the enumerated activities are covered by the consulting services as provided for in
the government procurement law?
a. I, II, V, and VI
b. I, II, IV, V, and VI
c. I, III, V, and VI
d. I, II, III, IV, V, and VI
2. Under the government procurement law, it refers to International Agreements except that
they do not require legislative ratification.
a. Legislative enactment
b. International agreement
c. Executive agreement
d. International convention
3. Under the Procurement law, it refers to a contract or understanding, regardless of

nomenclature, entered into between the Government of the Philippines and another
government or foreign or international financing institution in written form and governed by
international law, whether embodied in a single instrument or in two (2) or more related
instruments.
a. Memorandum of agreement
d. Treaties
4. Under the government procurement law, it refers to international agreements entered into by
the Government of the Philippines which require legislative ratification after executive
concurrence.
a. Memorandum of agreement
d. Treaties
5. Under the procurement law and its implementing rules, it include the construction,
improvement, rehabilitation, demolition, repair, restoration or maintenance of roads and
bridges, railways, airports, seaports, communication facilities, civil works components of
information technology projects, irrigation, flood control and drainage, water supply,
sanitation, sewerage and solid waste management systems, shore protection, energy/power
and electrification facilities, national buildings, school buildings, hospital buildings, and
other related construction projects of the government.
a. Infrastructure projects
b. Civil works
c. Both A and B
d. Neither A nor B
6. Under government procurement law, Philippine National refers to an individual or a sole

proprietor who is a citizen of the Philippines or a partnership, corporation, or association
organized under the laws of the Philippines of which at least ______ of the capital or interest
is owned by citizens of the Philippines, or cooperatives registered with the Cooperative
Development Authority.
a. 50%
b. 60%
c. 75%
d. 100%
Page 47 of 88
7. Under the procurement law and its implementing rules, it refers to a website that integrates
a wide variety of contents for the purpose of attracting and aggregating multiple users
together in a central virtual space.
a. Portal
b. Digital Virtual Space
c. Virtual Private Network
d. Graphical User Interface
8. The holding of a pre-procurement conference may not be required for small procurements,
except:
a. Procurement of Goods costing Two Million Pesos (₱2,000,000.00) and below
b. Procurement of Infrastructure Projects costing Five Million Pesos (₱5,000,000.00) and
below
c. Procurement of Consulting Services costing One Million Pesos (₱1,000,000.00) and
below
9. For the procurement of common-use goods and supplies, the Invitation to Bid/Request for
Expression of Interest shall be Posted at any conspicuous place reserved for this purpose in
the premises of the Procuring Entity concerned for ________ as certified by the head of the
Bids and Awards Committee (BAC) Secretariat of the Procuring Entity concerned
a. 5 calendar days
b. 7 calendar days
c. 15 calendar days
d. 30 calendar days
10. For contracts to be bid with an Approved Budget for the Contract of One Million Pesos
(₱1,000,000.00) or more, the Bids and Awards Committee shall (may be) convene at least
____ pre-bid conference to clarify and/or explain any of the requirements, terms, conditions,
and specifications stipulated in the Bidding Documents.
a. One (1)
b. Two (2)
c. Three (3)
d. At the discretion of the Bids and Awards Committee
11. For contracts to be bid with an Approved Budget for the Contract of less than One Million
Pesos (₱1,000,000), pre-bid conferences shall/may be conducted ____
a. One (1)
b. Two (2)
c. Three (3)
d. At the discretion of the Bids and Awards Committee
12. For purposes of clarifying or modifying any provision of the Bidding Documents,
Supplemental/Bid Bulletins may be issued upon the Procuring Entity’s initiative at least
_______ before the deadline for the submission and receipt of bids.
a. 3 calendar days
b. 5 calendar days
c. 7 calendar days
d. 10 calendar days
13. Under the government procurement law and its implementing rules, the following documents
are considered as “Class A Documents”, except:
a. Valid joint venture agreement (JVA), in case the joint venture is already in
existence.
b. Registration certificate from SEC, Department of Trade and Industry (DTI) for sole
proprietorship, or CDA for cooperatives.
c. Statement of the bidder of all its ongoing government and private contracts, including
contracts awarded but not yet started, if any, whether similar or not similar in nature
and complexity to the contract to be bid.
d. The bidder’s computation of Net Financial Contracting Capacity (NFCC). However, in
the case of procurement of Goods, a bidder may submit a committed Line of Credit
from a Universal or Commercial Bank, in lieu of its NFCC computation.
Page 48 of 88
14. The following shall be eligible to participate in the bidding for the supply of goods, except:
a. Duly licensed Filipino citizens/sole proprietorships
b. Partnerships duly organized under the laws of the Philippines and of which at least
sixty percent (60%) of the interest belongs to citizens of the Philippines
c. Corporations duly organized under the laws of the Philippines, and of which at least
sixty percent (60%) of the outstanding capital stock belongs to citizens of the
Philippines
d. Persons/entities forming themselves into a joint venture, i.e., a group of two (2)
or more persons/entities that intend to be jointly and severally responsible or
liable for a particular contract: Provided, however, That Filipino ownership or
interest of the joint venture concerned shall be at least fifty percent (50%).
15. Foreign bidders may be eligible to participate under any of the following circumstances in
accordance with the guidelines43 issued by the Government Procurement Policy Board,
except:
a. When provided for under any Treaty or International or Executive Agreement
b. When the foreign supplier is a citizen, corporation or association of a country, the laws
or regulations of which grant reciprocal rights or privileges to citizens, corporations or
associations of the Philippines
c. When the goods sought to be procured are available from local suppliers
d. When there is a need to prevent situations that defeat competition or restrain trade
16. Government Entity A is procuring for the supply of chairs, tables, and office supplies to be
used for all departments and offices across the region. The following are the respective
summary of the applicant firms/contractors assets and liabilities on the basis of the attached
income tax return and audited financial statement, stamped “RECEIVED” by the Bureau of
Internal Revenue or BIR authorized agent, for the immediately preceding year (2021) and a
certified schedule of fixed assets particularly the list of construction equipment:
Contractor 1 Contractor 2
Total Assets ₱ 6,195,567.00 ₱ 5,755,250.00
Current Assets 3,379,167.00 1,975,000.00
Total Liabilities 594,930.00 627,375.00
Current Liabilities 594,930.00 562,535.00
Total Net Worth 5,600,637.00 5,127,875.00
Net Working Capital 2,784,237.00 1,412,465.00
Additional information:
• The Actual Budget for the Contract (ABC) is amounting to P36,500,000
• The value of outstanding works under on-going contracts of contractor 1 is ₱1,995,000
including the amount of 650,000 which are awarded previously yet to be started; while
for contractor 2 the amount of its outstanding works under on-going contracts is
₱3,632,000 excluding the awarded contracts yet to be started valued at ₱812,600.
• ABC Bank, a commercial bank issued a credit line for contractor 2 in the amount of
₱3,200,000
Based on the given facts, compute for the Net Financial Contracting Capacity (NFCC) of
contractor 1?
a. ₱25,847,370
b. ₱39,768,555
c. ₱54,011,370
d. ₱82,014,555
17. Using the information in number 16, compute for the Net Financial Contracting Capacity
(NFCC) of contractor 2?
a. ₱72,473,525
b. ₱46,834,150
c. ₱16,742,375
d. ₱9,680,050
Page 49 of 88
18. Using the information in number 16, who among the contractors is eligible to procure the
items needed by Government Entity A?
a. Contractor 1
b. Contractor 2
c. Both A and B
d. Neither A nor B
*Computation of NFCC
NFCC = [(current assets – current liabilities) x (K)] minus the value of all outstanding or
uncompleted portions of the projects under ongoing contracts, including awarded contracts
yet to be started, coinciding with the contract to be bid
*The constant NFCC’s K factor is set at 15, regardless of contract duration
NFCC (Contractor 1) = 15 (3,379,167 - 594,930) – 1,995,000 = ₱39,768,555

NFCC (Contractor 2) = 15 (1,975,000 - 562,535) – (3,632,000 + 812,600) = ₱16,742,375
**Since the NFCC of Contractor 1 exceeds the Actual Budget for the Contract or ABC, hence he is
elgible to procure with Government Entity A
**Contractor 2’s NFCC does not meet the requirements that it must be at least equal to ABC hence the
second test will be used wherein the line of credit issued by a commercial or universal bank must be
at least equal to ten percent (10%) of the ABC to be bid. Based on the problem ABC bank gives a line
of credit to contractor 2 worth ₱3,500,000, to compute 3,500,000 divided by the ABC amount of
36,500,000 which is equal to 8.77% and therefore contractor is no longer eligible to procure the needs
of Government Entity A since it does not meet the threshold in second test.
19. These statements are presented to you:

I. A prospective bidder may be allowed to submit his eligibility requirements
electronically. However, said bidder shall later on certify under oath as to correctness
of the statements made and the completeness and authenticity of the documents
submitted.
II. The eligible prospective bidders shall then be evaluated using numerical ratings on the
basis of the short listing requirements prescribed for the Competitive Bidding
concerned, within the period stated in the Invitation to Bid to determine the short list
of bidders who shall be allowed to submit their respective bids.

a. Both Statements are True
b. Both Statements are False
c. Only Statement I is True
d. Only Statement II is True

I. A bidder may modify his bid, provided that this is done after the deadline for the
receipt of bids.
II. The modification shall be submitted in a sealed envelope duly identified as a
modification of the original bid and stamped received by the Bids and Awards
Committee (BAC).

21. Bids for Goods shall be received by the Bids and Awards Committee (BAC) on the date, time,
and place specified in the Invitation to Bid/Request for Expression of Interest for a maximum
period of ______ from the last day of posting of the Invitation to Bid/Request for Expression of
Interest up to the submission and receipt of bids
a. 45 calendar days
b. 50 calendar days
c. 65 calendar days
d. 75 calendar days
Page 50 of 88
22. Bids for Infrastructure Projects with ₱50 million and below Approved Budget for the Contract
(ABC) shall be received by the Bids and Awards Committee (BAC) on the date, time, and place
specified in the Invitation to Bid/Request for Expression of Interest for a maximum period of
______ from the last day of posting of the Invitation to Bid/Request for Expression of Interest
up to the submission and receipt of bids
a. 45 calendar days
b. 50 calendar days
c. 65 calendar days
d. 75 calendar days
23. Bids for Infrastructure Projects with above ₱50 million Approved Budget for the Contract
(ABC) shall be received by the Bids and Awards Committee (BAC) on the date, time, and place
specified in the Invitation to Bid/Request for Expression of Interest for a maximum period of
______ from the last day of posting of the Invitation to Bid/Request for Expression of Interest
up to the submission and receipt of bids
a. 45 calendar days
b. 50 calendar days
c. 65 calendar days
d. 75 calendar days
24. Bids for Consulting Services shall be received by the Bids and Awards Committee (BAC) on
the date, time, and place specified in the Invitation to Bid/Request for Expression of Interest
for a maximum period of ______ from the last day of posting of the Invitation to Bid/Request
for Expression of Interest up to the submission and receipt of bids
a. 45 calendar days
b. 50 calendar days
c. 65 calendar days
d. 75 calendar days
25. The Bids and Awards Committee (BAC) Secretariat shall notify in writing all bidders whose
bids it has received through its PhilGEPS-registered physical address or official e-mail
address. The notice shall be issued within seven (7) calendar days from the date of the bid
opening. What is the governing principle of procurement enshrined in the foregoing
statement?
a. Accountability
b. Competitiveness
c. Transparency
d. Uniformity

I. All Bids shall be accompanied by a Bid security, which shall serve as guarantee that,
after receipt of the Notice of Award, the winning bidders shall enter into contract with
the Procuring Entity within the stipulated time and furnish the required performance
security.
II. Bids and Bid securities shall be valid for such reasonable period of time indicated in
the Bidding Documents. The duration for each undertaking shall take into account the
time involved in the process of Bid evaluation and award of contract.

27. Bids and bid securities shall be valid for a reasonable period as determined by the Head of
the Procuring Entity (HoPE) concerned, which shall be indicated in the Bidding Documents,
but in no case shall the period exceed ________ from the date of the opening of bids.
a. 60 calendar days
b. 75 calendar days
c. 90 calendar days
d. 120 calendar days
Page 51 of 88
28. Thereshall be a failure of bidding with the following circumstances, except:

a.No bids are received
b.No bid qualifies as the Lowest Calculated Responsive Bid
c.Whenever the bidder with the highest rated/lowest calculated responsive bid refuses,
without justifiable cause to accept the award of contract, as the case may be.
29. A single calculated/rated and responsive bid shall be considered for award if it falls under of
the following circumstances, except:
a. If after advertisement, only one prospective bidder submits a Letter of Intent and/or
applies for eligibility check, and meets the eligibility requirements or criteria, after
which it submits a bide, which is found to be responsive to the bidding requirements;
b. If after the advertisement, more than one prospective bidder applies for eligibility
check, but only one bidder meets the eligibility requirements or criteria, after which in
submits a bid which is found to be responsive to the bidding requirements;
c. If after the eligibility check, more than one bidder meets the eligibility requirements,
but only one bidder submits a bid, and its bid is found to be responsive to the bidding
requirements.
30. The post-qualification process shall be completed in not more than ________ from the
determination of the Lowest Calculated Bid/Highest Rated Bid.
a. 12 calendar days
b. 15 calendar days
c. 25 calendar days
d. 30 calendar days
31. In exceptional cases, the post-qualification period may be extended by the Head of the
Procuring Entity (HoPE), but in no case shall the aggregate period exceed
a. Forty-five (45) calendar days in Consulting Services, or thirty (30) calendar days for
Goods and Infrastructure Projects.
b. Forty-five (45) calendar days for Goods and Infrastructure Projects, or thirty (30)
calendar days in Consulting Services.
c. Thirty (30) calendar days for Goods and Infrastructure Projects, or sixty (60) calendar
days in Consulting Services.
d. Sixty (60) calendar days in Consulting Services, or thirty (30) calendar days for Goods
and Infrastructure Projects.
32. Within a period not exceeding ______ from the determination and declaration by the BAC of
the Lowest Calculated Responsive Bid or Highest Rated Responsive Bid, and the
recommendation of the award, the Head of the Procuring Entity or his duly authorized
representative shall approve or disapprove the said recommendation.
a. 7 calendar days
b. 10 calendar days
c. 15 calendar days
d. 30 calendar days
33. From receipt of the Notice of Award, the Winning bidder shall formally enter into contract
with the Procuring Entity within:
a. 7 calendar days
b. 10 calendar days
c. 15 calendar days
d. 30 calendar days
34. When further approval of higher authority is required, the approving authority for the
contracts shall be given a maximum of ______ to approve or disapprove it.
a. 7 calendar days
b. 10 calendar days
c. 15 calendar days
d. 20 calendar days
Page 52 of 88
35. In the case of government-owned and/or -controlled corporations, the concerned board shall
take action on the recommendation of the award within ______ from receipt thereof.
a. 7 calendar days
b. 10 calendar days
c. 15 calendar days
d. 30 calendar days
36. The Procuring Entity shall issue the Notice to proceed to the winning bidder not later than
seven (7) calendar days from the date of approval of the contract by the appropriate
authority.
a. 7 calendar days
b. 10 calendar days
c. 15 calendar days
d. 30 calendar days

I. The procurement process from the opening of bids up to the award of contract shall
not exceed two (2) months, or a shorter period to be determined by the procuring
entity concerned.
II. If no action on the contract is taken by the head of the procuring entity or by his duly
authorized representative, or by the concerned board, in the case of government-
owned and/or -controlled corporations, within the periods specified in the preceding
paragraph, the contract concerned shall be deemed rejected or failed.


I. Prior to the signing of the contract, the winning bidder shall, as a measure of
guarantee for the faithful performance of an compliance with his obligations under the
contract prepared in accordance with the Bidding Documents, be required to post a
performance security in such form and amount as specified in the Bidding
Documents.
II. If, for justifiable causes, the bidder with the Lowest Calculated Responsive Bid or
Highest Rated Responsive Bid fails, refuses or is otherwise unable to enter into
contract with the Procuring Entity, or if the bidder fails to post the required
performance security within the period stipulated in the Bidding Documents, the BAC
shall disqualify the said bidder and shall undertake post-qualification for the next-
ranked Lowest Calculated Bid or Highest Rated Bid.

39. The Head of the Agency reserves the right to reject any and all Bids, declare a failure of
bidding, or not award the contract in the following situations, except:
a. If there is prima facie evidence of collusion between appropriate public officers or
employees of the Procuring Entity, or between the BAC and any of the bidders, or if
the collusion is between or among the bidders themselves, or between a bidder and a
third party, including any act which restricts, suppresses or nullifies or tends to
restrict, suppress or nullify competition
b. If the BAC is found to have failed in following the prescribed bidding procedures
c. For any justifiable and reasonable ground where the award of the contract will not
redound to the benefit of the government
Page 53 of 88
40. All bidding documents shall be accompanied by a sworn affidavit of the bidder that he or she
or any officer of their corporation in not related to the Head of the Procuring Entity by
consanguinity or affinity up to the
a. Second (2nd) civil degree
b. Third (3rd) civil degree
c. Fourth (4th) civil degree
Page 54 of 88
DATA PRIVACY ACT OF 2012
1. While the Philippine Constitution does not expressly stated but impliedly provided the right
to privacy. What is the essence of the right to privacy?
a. The right to be secure
b. The right to be left alone
c. The right to be informed
d. The right to due process of law
2. It refers to an individual whose personal, sensitive personal, or privileged information is

processed
a. Data subject
b. Data sharing
c. Data controller
d. Data keeper
3. It refers to any freely given, specific, informed indication of will, whereby the data subject
agrees to the collection and processing of his or her personal, sensitive personal, or privileged
information. Consent shall be evidenced by written, electronic or recorded means.
a. Consent of the active subject
b. Consent of the passive subject
c. Consent of the data subject
d. Consent of the Commission
4. It refers to any information, whether recorded in a material form or not, from which the
identity of an individual is apparent or can be reasonably and directly ascertained by the
entity holding the information, or when put together with other information would directly
and certainly identify an individual.
a. Database
b. Personal data
c. Sensitive information
d. Personal information
5. It refers to a natural or juridical person, or any other body who controls the processing of
personal data, or instructs another to process personal data on its behalf.
a. Personal information controller
b. Personal information processor
c. Sensitive information controller
d. Sensitive information processor
6. The person refer to above number (5) excludes:

a. A natural or juridical person, or any other body, who performs such functions as
instructed by another person or organization
b. A natural person who processes personal data in connection with his or her personal,
family, or household affairs
c. Both A and B
d. Neither A nor B
7. It refers to any natural or juridical person or any other body to whom a personal information
controller may outsource or instruct the processing of personal data pertaining to a data
subject
a. Personal information controller
b. Personal information processor
c. Sensitive information controller
d. Sensitive information processor
8. Information about any individual who is or was an officer or employee of government that
relates to his or her position or functions includes the following, except:
a. The fact that the individual is or was an officer or employee of the government
b. The title, office address, and office telephone number of the individual
c. The classification, salary range, and responsibilities of the position held by the
individual
Page 55 of 88
9. The data subject must be aware of the nature, purpose, and extent of the processing of his or
her personal data, including the risks and safeguards involved, the identity of personal
information controller, his or her rights as a data subject, and how these can be exercised.
This is in accordance with the principle of:
a. Proportionality
b. Transparency
c. Accountability
d. Legitimate purpose
10. The processing of information shall be compatible with a declared and specified purpose
which must not be contrary to law, morals, or public policy. This is known as:
a. Principle of Legitimate purpose
b. Principle of Proportionality
c. Principle of Transparency
d. Principle of Subsidiarity
11. The processing of information shall be adequate, relevant, suitable, necessary, and not
excessive in relation to a declared and specified purpose. This is known as:
a. Principle of Legitimate purpose
b. Principle of Transparency
c. Principle of Proportionality
d. Principle of Subsidiarity
12. The processing of personal data shall adhere to the following general principles, except:
a. Collection must be for a declared, specified, and legitimate purpose.
b. Personal data shall be processed fairly and lawfully.
c. Personal Data shall be retained longer than necessary.
d. Processing should ensure data quality.
13. Under Data Privacy Act of 2012, The data subject shall be provided with the following
information prior to collection or before data is shared, except:
a. Identity of the personal information controllers or personal information processors
that will be given access to the personal data
b. Purpose of data sharing
c. Intended recipients or categories of recipients of the personal data
14. The data subject is entitled to the following rights, except:

a. Right to be informed.
b. Right to object.
c. Right to ratification.
d. Right to Erasure or Blocking.
15. It is an embodiment of the observance or demonstration of the data privacy principle of

transparency and upholding the right to information of data subjects. It is a statement made
to data subjects that describes how the organization collects, uses, retains, and discloses
personal information.
a. Personal notice
b. Privacy notice
c. Data subject notice
16. If the personal data has been corrected, the Personal Information Controller (PIC) shall:
a. Ensure the accessibility of both the new and the retracted information, and the
simultaneous receipt of the new and the retracted information by the intended
recipients.
b. Inform the recipients or third parties who have previously received such personal data
of its inaccuracy and its subsequent rectification, upon reasonable request of the data
subject.
c. Both A and B
d. Neither A nor B
Page 56 of 88
17. Under the Data Privacy Act of 2012, it is considered large scale and the maximum in the
scale of penalty is imposed when it harmed, affected or involved the personal data of?
a. at least one hundred (100) persons
b. More than one hundred (100) persons
c. At least two hundred (200) persons
d. More than two hundred (200) persons
18. Under the data privacy act, the consent of the data subject may be given thru
a. Oral only
b. Writing only
c. Oral or in writing
d. Written, electronic or recorded means
19. The data subject could be?

a. Natural person only
b. Juridical person only
c. Both natural and juridical person
d. Individual as well as government institution.
20. The data privacy act does not apply to personal information processed for
a. Journalistic purpose
b. Artistic purpose
c. Literary or research purpose
d. All of the foregoing
21. The terms of office of the deputy privacy commissioner is?

a. One (1) year
b. Two (2) years
c. Three (3) years
d. Five (5) years
22. The following are the qualifications of privacy commissioner, except?

a. He must be at least thirty-five (35) years of age
b. He must be of good moral character and unquestionable integrity and known probity
c. A recognized expert in the field of information technology and data privacy
d. Member of the Philippine bar
23. The following are functions of the National Privacy Commission, except:
a. To impose a temporary or permanent ban on the processing of personal information,
upon finding that the processing will be detrimental to national security and public
interest
b. To coordinate with other government agencies and the private sector on efforts to
formulate and implement plans and policies to strengthen the protection of personal
information in the country
c. To file a criminal case against violator for violation of the data privacy act.
d. To issue advisory opinions and interpret the provision of the data privacy act
24. The data privacy act applies to an act done or practice by entity
a. engaged inside the Philippines and in some circumstances outside of the
Philippines
b. engaged inside the Philippines and outside of the Philippines in all circumstances
c. engaged inside the Philippines only
d. engaged outside of the Philippines only
25. The data privacy act does not apply to personal information processed for
a. Journalistic purpose
b. Artistic purpose
c. Literary or research purpose
Page 57 of 88
26. This refer to the right of the data subject, wherein personal information is processed by
electronic means and in a structured and commonly used format, to obtain from the
personal information controller a copy of data undergoing processing in an electronic or
structured format, which is commonly used and allows for further use by the data subject
a. Right to access
b. Right to data portability
c. Right to blocking
d. Right to copy
27. The data privacy act protects personal information of

a. Individual
b. Corporation
c. Both natural and juridical person
d. Association
28. The agency entrusted to administer and implement the data privacy act?
a. Department of science and technology
b. National Privacy Commission
c. Department of Information and Communications Technology (DICT)
d. National Telecommunication Commission
29. In case of doubt in the interpretation of the data privacy law

a. It will liberally interpreted in favor of the Personal information controller.
b. It will liberally interpreted in a manner mindful of the rights and interests of the
data subject.
c. The provision of the data privacy is null and void.
d. It will be interpreted to balance the right of the personal information controller and the
right of the data subject.
30. Under the data privacy act, it is considered as large scale if the number of harmed, affected
or involved personal information is
a. At least 50
b. At least 100
c. At least 500
d. At least 1,000
31. Data privacy act does not apply to government officer or employee that relates to his position
or functions which include the following, except?
a. The fact he was an officer or employee of the government institution.
b. His residential address and personal telephone number
c. His salary range
d. The responsibilities of his position
32. The following are sensitive information, except?

a. Individual’s race
b. Full name
c. Individual’s health
d. Education
33. Processing of personal information

a. As a rule allowed except only if prohibited by law.
b. As a rule prohibited except upon compliance with the data privacy law and other laws
allowing disclosure of information to the public.
c. Absolutely prohibited
d. Shall be allowed, subject to compliance with the data privacy law and other laws
allowing disclosure of information to the public and adherence to the principles
of transparency, legitimate purpose and proportionality.
Page 58 of 88
34. During the COVID 19 pandemic, Juan Dela Cruz went to a ABC Drug store to buy some
medicine. The guard on duty asked Juan dela Cruz to use his cellphone to scan the bar code
to fill up some personal information (i.e. Name, Address, Cellphone number, email address)
or fill up the paper form for contact tracing as required by Joint Memorandum Circular 20-
04A requiring business establishment for Contact Tracing of Customers and Visitors. Juan
Dela Cruz refuse and insist that this is violation of his right to privacy.
a. Juan Dela Cruz is correct because he did not consent to processing of his personal
information.
b. Juan Dela Cruz is correct because processing of sensitive personal information is
prohibited.
c. Juan Dela Cruz is not correct because the processing is necessary for compliance
with a legal obligation to which the personal information controller is subject.
d. Juan Dela Cruz is not correct because ABC Drug store being a business establishment
has the discretion to collect and summarize customer who visited their premises.
35. When the data subject die, his right to data privacy
a. Automatically extinguished.
b. May now be invoked by the lawful heirs.
c. Cannot be invoked by the lawful heirs and assign because these are strictly personal
to the data subject.
d. Maybe invoked by the lawful heirs only if this right was transferred to them thru last
will and testament.
36. Which of the following statement is correct?

a. The personal information controller may store forever the personal information they
process about the data subject
b. The right of the data subject are not transmissible.
c. In all cases, without the consent of the data subject, personal information controller
cannot process sensitive personal information.
d. Information about individual race is a sensitive personal information.
37. Which of the following do not constitute privilege communication?

a. Communication between lawyer and his clients
b. Communication between Doctor and his Patient
c. Communication between the Priest and Penitent
d. Communication between common law husband and wife.
38. Which of the following is not one of the functions of the National Privacy Commission?
a. Issue cease and desist orders on the processing of personal information, upon finding
that the processing will be detrimental to national security and public interest.
b. Compel or petition any entity, government agency or instrumentality to abide by its
orders or take action on a matter affecting data privacy
c. Coordinate with other government agencies and the private sector on efforts to
formulate and implement plans and policies to strengthen the protection of personal
information in the country
d. To prosecute for violation of the data privacy act
39. Processing of sensitive personal information is allowed under the following, except?
a. The processing is necessary to achieve the lawful commercial objectives of
public organizations and their associations.
b. The processing is necessary to protect the life and health of the data subject or
another person, and the data subject is not legally or physically able to express his or
her consent prior to the processing.
c. The processing of the same is provided for by existing laws and regulations
d. The data subject has given his or her consent, specific to the purpose prior to the
processing, or in the case of privileged information, all parties to the exchange have
given their consent prior to processing.
Page 59 of 88
40. A homemaker, who had once worked as a prostitute and who had been wrongly accused of
murder, became the subject of a feature film (“The Red Kimono”) seven years after her
acquittal. Although not specifically referencing a right to be forgotten, the court, permitting
suit against the filmmaker, noted: “One of the major objectives of society as it is now
constituted, and of the administration of our penal system, is the rehabilitation of the fallen
and the reformation of the criminal. What is the right of data subject applied in the instant
case?
a. Right to access
b. Right to data portability
c. Right to blocking
d. Right to copy
41. Data breach as distinguished from security incident:

a. It affects or tends to affect data protection
b. may compromise the availability, integrity and confidentiality of personal data.
c. Incidents that would result to a personal data breach, if not for safeguards that have
been put in place.
d. breach of security leading to the accidental or unlawful destruction, loss,
alteration, unauthorized disclosure of, or access to, personal data transmitted,
stored, or otherwise processed
42. In order to rely on legitimate interests as basis for lawful processing, the personal
information controller must be able to satisfy the key elements which can be broken down
into the following three-part tests, which is the exception?
a. Purpose test
b. Holistic test
c. Necessity test
d. Balancing test
43. Which of the following activities constitute data sharing?

a. When a school discloses to an entity the entire student data for archiving or recording
purposes
b. When a telecommunications company discloses personal data of its subscribers
which it obtained for purposes of marketing to a bank for the latter's purpose of
credit rating and vice versa
c. When a bank transfers to a third party personal data of clients for purposes of loan or
credit rating
44. The following are the pillars of pillars of data privacy accountability and compliance
a. Appoint a Data Information Processor (DIP)
b. Conduct a privacy risk assessment
c. Implement privacy and data protection measures
d. Exercise breach reporting procedures
45. The following are the principles of information security, except:

a. Integrity
b. Confidentiality
c. Reliability
d. Availability
Page 60 of 88
PHILIPPINE COMPETITION ACT (R.A. 10667)
1. Philippine Congress enacts a statute to outlaw a specific type of anti-competitive business

agreement. Like other laws that regulate economic competition, this law is referred to as
a. Antitrust Law
b. Philippine Economic Development Act
c. Ease of Doing Business Act
d. Philippine Competition Act
2. Philippine Competition Act is based on the

a. creative destruction view of competition.
b. view that non-price competition should be strictly regulated by government.
c. idea that competition leads to greater economic efficiency than does a
monopoly.
d. view that all negative externalities should be eliminated by government action.
3. Sunrich Company can process solar energy into an inexpensive fuel for internal combustion
engines. As an innovator in its market, Sunrich currently has the power to affect the price of
its product. This is known as:
a. market power.
b. predatory pricing.
c. price discrimination.
d. monopsony power.
4. North Mining Company and South Excavation Company agree to abide by the decisions of
East Coast Financial Corporation as to their respective levels of production, markets, and
prices, effectively reducing competition and increasing profits. This is most likely
a. a common, legal, time-honored type of business arrangement.
b. an illegal restraint on trade.
c. an innovative, legally efficient approach to doing business.
d. an outdated, but legal business trust.
5. Soft Drink Corporation is charged with violating the Philippine Competition Act through
conduct subject to the rule of reason. When applying the rule of reason in this situation, the
court will not consider:
a. the purpose of the agreement.
b. the parties’ market ability to implement the agreement.
c. the effect of the agreement on international trade.
d. the potential effect of the agreement on competition.
6. Which of the following is least likely to violate the Philippine Competition Act?
a. Competitive firms A, B, and C meet and agree to charge a common price.
b. Competitive firms D and E, each with 35 percent market shares, merge into a single
firm.
c. Competitive firms F and G independently charge lower prices to frequent
customers than to occasional customers.
d. Large dominant firm H forces buyers to purchase its product X in order to buy its
popular product Y.
7. Which of the following is directly illegal under the Philippine Competition Act?
a. price discrimination
b. price-fixing
c. interlocking directorates
d. tying contracts
8. Suppose Las Ketchup requires that, as a condition of purchase, all restaurants using its
product must buy and make available its new sales product. This arrangement is an example
of
a. price-fixing.
b. an interlocking directive.
c. a tying contract.
d. price discrimination.
Page 61 of 88
9. Which of the following is most likely to increase the Herfindahl index of a particular
industry?
a. a horizontal merger between two of the industry's largest firms
b. a vertical merger between one of an industry's largest firms and one of the many input
suppliers in the resource market
c. a conglomerate merger involving one of the industry's major firms
d. an agreement by all the industry firms to divide up the market among them
10. Price-fixing is considered to be a per se violation of the Philippine Competition Act because
a. a guilty verdict requires proof of injury to consumers.
b. a guilty verdict requires proof of injury to other competitors.
c. the rule of reason is applicable.
d. a guilty verdict need only show that there was a conspiracy to fix prices, not
that it succeeded.
SITUATIONAL (For Numbers 11, 12, 13, 14, 15, 16, and 17)
The table below shows market shares of firms in hypothetical industries.
Market share of firms in

Industry Industry
1 2 3 4 5 6
Alpha 30 30 20 20 - -
Beta 80 10 5 3 1 1
Cappa 25 25 25 25 - -
Delta 20 20 20 20 10 10
11. Assume these are distinct industries with no buyer-seller relationships or competition among
them. The Herfindahl index for Cappa is
a. 2,500
b. 100
c. 100,000
d. 5,000
Herfindahl index for Cappa = (25)²+(25)²+(25)²+(25)² = 2,500
them. The industry with the greatest market power as measured by the Herfindahl index is
a. Alpha
b. Beta
c. Cappa
d. Delta
them. A merger between Firm 2 and Firm 3 in Alpha would be a
a. vertical merger.
b. horizontal merger.
c. diagonal merger.
d. conglomerate merger.
them. A merger between Firm 1 in Alpha and Firm 2 in Delta would be a
a. vertical merger.
b. horizontal merger.
c. conglomerate merger.
d. diagonal merger.
Page 62 of 88
them. The government would be most likely to challenge a merger between:
a. Firm 1 in Alpha and Firm 6 in Delta.
b. Firms 3 and 4 in Beta.
c. Firms 1 and 2 in Cappa.
d. Firm 4 in Alpha and Firm 3 in Cappa.
them. A structuralist would most likely assert that there is a violation of Philippine
Competition Act in which industry?
a. Alpha
b. Beta
c. Cappa
d. Delta
17. Suppose the firms in a five-firm industry have market shares of 30, 30, 20, 10, and 10
percent, respectively. The Herfindahl index for the industry is
a. 1,900
b. 2,400
c. 90
d. 10,000
Herfindahl index = (30)²+(30)²+(20)²+(10)²+(10)² = 2,400
18. Suppose that two firms in an industry with a Herfindahl index of 5,000 announce a merger.
The Philippine Competition Commission concludes the merger will boost the index to 5,500.
The Commission will most likely:
a. allow the merger if foreign entry to the industry is possible.
b. prevent the merger, contending that it violates the Philippine Competition Act.
c. allow the merger but watch the new firm carefully for future violations of the
Philippine Competition Act.
d. ignore this merger because of the relatively small increase in the Herfindahl index.
19. Suppose that two firms in an industry with a Herfindahl index of 5,000 announce a merger.
The Philippine Competition Commission concludes the merger will boost the index to 5,500.
The Commission will most likely:
a. ignore this merger because of the relatively small increase in the Herfindahl
index.
b. prevent the merger, contending that it violates the Philippine Competition Act.
c. allow the merger if foreign entry to the industry is possible.
d. allow the merger but watch the new firm carefully for future violations of the
Philippine Competition Act.
20. The Herfindahl index measures the

a. size of the market share of the four largest firms in an industry
b. sum of the squared values of market shares of firms in an industry.
c. increase in economic concentration resulting from a conglomerate merger.
d. effect of per se violation in anti-competitive cases.
21. Rugged Bikes, Inc., makes and distributes Rugged-brand bicycles and accessories to
authorized dealers, including Super Sports Stores, Inc. Super Sports operates dealerships in
several locations. To insulate other dealers from direct competition, Rugged Bikes imposes
limits on where Super Sports can sell Rugged products. This is known as:
a. a territorial restriction.
b. a resale price maintenance agreement.
c. a unilateral refusal to deal.
d. a price-fixing agreement.
Page 63 of 88
22. Gearbox, Inc., a manufacturer of vehicle parts, refuses to sell to Motor Repair & Replace,
Inc., a national vehicle service firm. Gearbox convinces Cam & Cylinder Company, a
competitor, to do the same. This is known as:
a. a group boycott.
b. an exclusive-dealing contract.
c. a tying arrangement.
d. a market division.
23. Spa Selectiva Company makes and sells beauty salon supplies. By selling its product at
prices substantially below the normal cost of production, Spa Selectiva hopes to drive its
competitors from the market. This is known as:
a. predatory bidding.
b. predatory pricing.
c. price discrimination.
d. price-fixing.
24. Under Philippine Competition Act, it is a methodological tool that may be used to determine
the relevant market(s) in which to analyze the competitive effects of a proposed merger.
a. hypothetical monopolist test
b. dominant monopolist test
c. hypothetical oligopolistic test
d. hypothetical competitive test
25. In determining the relevant market, the Philippine Competition Commission will consider the
following factors, among others, except:
a. The possibilities of substituting the goods or services in question with others of
domestic or foreign origin, considering the technological possibilities, the extent to
which substitutes are available to consumers and the time required for such
substitution
b. The cost of distribution of the good or service, its raw materials, its supplements
and substitutes from other areas and abroad, excluding freight, insurance,
import duties, and non-tariff restrictions; the restrictions imposed by economic
agents or by their associations; and the time required to supply the market from
those areas
c. The cost and probability of users or consumers seeking other markets
d. National, local or international restrictions which limit the access by users or
consumers to alternate sources of supply or the access of suppliers to alternate
consumers.
26. In determining whether an entity has a market dominant position for purposes of this Act
and these Rules, the Commission shall consider the following illustrative and non-exhaustive
criteria, as may be appropriate, except:
a. The share of the entity in the relevant market and the ability of the entity to fix
prices bilaterally or to restrict supply in the relevant market.
b. The existence of barriers to entry and the elements which could foreseeably alter both
the said barriers and the supply from competitors.
c. The possibility of access by its competitors or other entities to its sources of inputs
d. Its ownership, possession or control of infrastructure which are not easily duplicated
27. Competition law seeks to protect competition by controlling the exercise of market power,
either by single firms or by firms acting together, which leads to higher prices, less choice,
and lower quality and less innovation in products and services. In that sense, what is the
nature of Philippine Competition Act?
a. Common law in nature
b. Disciplinary in nature
c. Regulatory in nature
d. Inherent in nature
28. What is the main purpose of competition law?

a. To protect consumers
b. To intervene in the economy
c. To remedy situations in which the free market breaks down
Page 64 of 88
29. Which of the following best describes “relevant market”?

a. is helpful for competition law, but not essential as every market may, depending on
the circumstances, be relevant
b. shows who is competing with who, and is determined in terms of substitutability
c. is an exact science which helps to establish the power of undertakings with absolute
precision
30. The SSNIP Test is useful when defining the relevant market. What does SSNIP stand for?
a. Substantial and Significant New Incremental Periods
b. Sequence of Small but Noticeable Intervals of Power
c. Small but Significant Non-Transitory Increase in Price
31. Which of the following principles limit the extraterritorial application of the Philippine
Competition Act (PCA)?
a. The principle of supremacy, the principle of subsidiarity and the principle of direct
effect of PCA
b. The “act of state doctrine”, the doctrine of “foreign governmental compulsion”,
and the principle of comity
c. The neighbor principle, the principle of non-intervention and the principle of co-
operation
32. In order to obtain a reduction in the penalty imposed by the Philippine Competition
Commission, a company must provide evidence with “added value”. Evidence will have
“added value” when:
a. It is expensive to obtain without the co-operation of the undertaking seeking leniency
b. It strengthens, by its very nature and/or its level of detail, the Commission's
ability to prove the alleged cartel
c. It can be considered an aggravating factor for determining the amount of fines for the
other undertakings involved in the cartel
33. Under the competition law, when is collusion unlawful?

a. When firms react to the actions of their competitors by, for instance, cutting prices
b. When it involves some kind of coordination or agreement between the firms
c. When it arbitrarily excludes some of the competitors from its benefits
34. Which of the following best describes dominant firm leadership?

a. occurs in markets where one firm holds a competitive advantage over its rivals, and
that firm unilaterally decides the price to be charged by its competitors in the relevant
market
b. is that of a parent company (dominant firm) over its subsidiaries
c. occurs where one firm is large in relation to its competitors and can set prices as
if it were a monopolist, while the smaller firms will have little to gain from
diverging much from this price
35. In the context of competition law, what is vertical agreement?

a. It is an agreement between firms located in the same relevant product market, but in
different relevant geographic markets
b. It is an agreement between competitors with regard to the conditions of distribution of
their products
c. It is an agreement between firms at different levels of the chain of production or
distribution (non-competitors)
Page 65 of 88
36. Under the competition law, horizontal and vertical restraints are:
a. exactly the same as horizontal and vertical agreements
b. the restrictions contained in horizontal and vertical agreements
c. restrictions of competition that take place when there are no agreements in place
between the parties
37. Under the competition law, why is charging low prices be anti-competitive?
a. It may encourage competitors to raise prices, and therefore the overall effect may be
inefficient
b. Sometimes there is an intention to wipe out competitors
c. A company's profits could be jeopardized if it systematically charges low prices
38. In the context of competition law, which of the following best describes “margin squeeze”?
a. A practice that involves reducing profit margins by investing in innovation,
particularly research and development
b. Selling to competitors in upstream markets at a price that does not allow them
to make a sufficient margin on sales in downstream markets to be able to
compete effectively
c. A way to increase efficiency in associated markets by creating an added incentive to
cut costs
39. What are the main policy arguments that support the existence of merger control under the
competition law?
a. he potential harm faced by firms who do not participate in the merger, and the direct
threat to consumers
b. The creation or extension of monopoly power, and increasing the scope for
collusion
c. The potential harm firms face when they merge, and the social welfare implications
attached to mergers
40. Under the competition law, mergers are analyzed ex ante, and therefore:
a. it is procedurally similar to the control of dominance
b. the concern is always on actual effects
c. the concern is always on potential effects
41. In the purview of competition law, what is conglomerate merger?

a. A merger between firms dealing in the same goods or services in the same geographic
market
b. A merger between firms which produce different goods or services for one specific
finished product
c. A merger between firms which produce products which are not in the same
market, but which may be substitutes for each other
42. Among the relevant factors highlighted by the Philippine Competition Commission in order to
determine whether a merger can facilitate oligopolistic collusion are:
a. concentration, product homogeneity, symmetry of market shares and costs, and
transparency in pricing
b. the ease with which a firm may retaliate to another's competitive action, barriers to
entry, inelastic demand, and absence of buyer power
c. Both A and B
d. Neither A nor B
43. Under the competition law, the term “failing firm defence” essentially argues that:
a. a merger which saves a failing firm should not be blocked
b. a merger which saves a failing firm should not be allowed, as it would be inefficient
c. companies only merge when they are going through difficulties so as to 'defend'
themselves from competition
Page 66 of 88
44. When analyzing the possibility for collusion as a result of a merger, four stages need to be
considered:
a. Firstly, a plausible mechanism whereby collusion can take place must be
identified. Secondly, the market must be analyzed. Thirdly, it must be
established that those particular features exist in the case under consideration.
Fourthly, evidence of past conduct needs to be considered
b. Firstly, the views of consumers need to be taken into account. Secondly, the
mechanisms in place to prevent collusion must be considered. Thirdly, it must be
established that those mechanisms are likely to fail. Fourthly, the merging parties
must explain how they intend to avoid post-merger collusion
c. Firstly, whether there are civil or criminal sanctions for violations of competition law
needs to be considered. Secondly, depending on the gravity of those sanctions, the
relevant competition authority will draft a report on the likelihood of collusion. Thirdly,
the parties will be informed and will get a chance to explain their views. Fourthly, if
the merger is approved, it will have to be closely monitored for the first two years of its
existence
45. In competition law, the restraint of trade doctrine:

a. is not as relevant as it used to be, particularly in relation to ties between recording
artists and their record companies
b. may be relevant in some cases, with the exception of situations in which there are
inequalities of bargaining power
c. as been able to fill in gaps left by the statutory regulation
46. How might competition give rise to tortious claims?

a. Since courts are particularly well equipped to regulate competition, their intervention
is encouraged in competition cases by resorting to tort in virtually every scenario
b. Tort claims may never arise in competition cases
c. In general, tortious claims will only arise when there is an unlawful act
47. Which of the following requirements is necessary for conducting a dawn raid on the premises
of an undertaking that is under investigation for a potential violation of the competition law?
a. The Commission must require the cooperation of the relevant national authorities,
including the police, to effect such inspections
b. The Commission must have obtained prior to judicial approval
c. If the inspection is conducted in private premises, the suspected violation of
competition law must be serious, and prior judicial authorization must be sought
48. According to the Commission notice on the handling of complaints, why might private
enforcement be more fruitful than a public complaint?
a. Public enforcers cannot investigate all complaints, and must set priorities in
their treatment of cases
b. The courts have more experience in dealing with antitrust disputes
c. It is always faster and cheaper to resort to litigation before the courts
49. Under the competition law, in order to have a “legitimate interest”, and thus be entitled to
lodge a complaint, undertakings must:
a. operate in the market affected by the anti-competitive conduct, or the conduct
must be likely to have a direct or foreseeable effect on the undertakings
b. be direct competitors of the undertaking(s) engaged in the alleged anti-competitive
conduct
c. demonstrate an economic loss that is directly consequential to the alleged violation of
competition law
Page 67 of 88
50. Who is the current chairperson of the Philippine Competition Commission?

a. Arsenio Balisacan
b. Michael Aguinaldo
c. Ferdinand Negre
d. Michael Peloton
51. Bid riggings normally conspire in secret hence difficult to discover. However, there action
leave some tracks. The following are common red flags that indicate bid rigging, except?
a. The winning bidder subcontracts work to the losing bidders.
b. Competitors regularly socialize or hold meetings shortly before the tender deadline.
c. Bid documents of different competitors contain different cost estimates for
certain line items.
d. Bidders refer to “standard” practices or prices, or manifest knowledge of confidential
information of other bidders.
52. The period for compulsory notification to the Philippine Competition commission in case of
covered merger and acquisition is
a. 15 days
b. 30 days
c. 60 days
d. 90 days
53. Under the Philippine Competition Act, the threshold amount for compulsory notification in a
merger and acquisition?
a. the value of the transaction exceeds one billion pesos (P1,000,000,000.00)
b. the value of the transaction is at least one billion pesos (P1,000,000,000.00)
c. the value of the transaction exceeds one hundred million pesos (P100,000,000.00)
d. the value of the transaction is at least one hindered million pesos (P100,000,000.00)
54. The following shall be considered permissible price differentials under the competition law,
except?
a. Price differential which reasonably or approximately reflect differences in the cost of
manufacture, sale, or delivery resulting from differing methods, technical conditions,
or quantities in which the goods or services are sold or delivered to the buyers or
sellers.
b. Setting prices or other terms or conditions that discriminate unreasonably
between customers or sellers of the same goods or services, where such
customers or sellers are contemporaneously trading on similar terms and
conditions, where the effect may be to lessen competition substantially
c. Price differential or terms of sale offered in response to the competitive price of
payments, services or changes in the facilities furnished by a competitor.
d. Socialized pricing for the less fortunate sector of the economy
55. A, B and C are competitors. A, B and C agree that to ensure that A will be the winner. B
agree that he will submit a bid of P10M and C agree that he will submit a bid of P30M. The
bid to be submitted by A is P8M only. This bid rigging is called?
a. Cover bidding
b. Bid Suppression
c. Bid rotation
d. Market allocation
56. There shall be a rebuttable presumption of market dominant position if the market share of
an entity in the relevant market is
a. At least thirty percent (30%)
b. At least fifty percent (50%)
c. At least sixty percent (60%)
d. At least seventy percent (70%)
57. What is the administrative Penalty for prohibitive consummation of merger or acquisition?
a. Fine of one percent (1%) to five percent (5%) of the value of the transaction.
b. Fine of one percent (2%) to five percent (5%) of the value of the transaction.
c. Fine of one percent (3%) to five percent (5%) of the value of the transaction.
d. Fine of one percent (5%) to ten percent (10%) of the value of the transaction.
Page 68 of 88
58. ABC Manila Condo Corp is a duly incorporated domestic corporation organized to own or
hold title to the land and common areas in ABC Manila. Aside from maintaining and
administering the common areas of ABC Manila, ABC Manila Condo Corp is also responsible
for enforcing the Master Deed with Declaration of Restrictions ("Master Deed"), and
promulgating House Rules and such other rules as may be necessary, among others.
There is a provision under the property management services which prevent internet service
providers ("ISPs") other than XYZ Cable Inc. from providing fixed-line internet services to the
residents of ABC Manila.
Tenants and residents of ABC Manila have no other choices or alternatives except the service
of XYZ Cable Inc. to serve fixed-line internet services even the service is poor in quality and
at a high price. Did ABC manila violate any provision of the Philippine Competition Act?
a. No, because ABC Manila can set up its own rule like in a property management
services because this is purely private matter.
b. Yes, ABC Manila violate Section 15, paragraph i of PCA which is “limiting
production, markets or technical development to the prejudice of consumers”.
c. No, because ABC manila is only exercising his right which is the freedom of contract
which is both Constitutional and statutory right.
d. Yes, ABC Manila violate Sec 15 (c) which is “Making a transaction subject to
acceptance by the other parties of other obligations which, by their nature or
according to commercial usage, have no connection with the transaction”
59. Requiring a customer to buy an x-ray machine together with the intended photocopying
machine may be considered abuse of dominant position under which of the following
categories of conduct provided under the Philippine Competition Act?
a. Imposing barriers to entry or committing acts that prevent competitors from growing
within the market in an anti-competitive manner except those that develop in the
market as a result of or arising from a superior product or process, business acumen,
or legal rights or laws
b. Making a transaction subject to acceptance by the other parties of other obligations
which, by their nature or according to commercial usage, have no connection with the
transaction
c. Making supply of particular goods or services dependent upon the purchase of
other goods or services from the supplier which have no direct connection with
the main goods or services to be supplied
d. Directly or indirectly imposing unfairly low purchase prices for the goods or services
of, among others, marginalized agricultural producers, fisherfolk, micro-small-
medium-scale enterprises, and other marginalized service providers and producers
60. Nakuyawa Electric Co., Ltd., a supplier of electrical boxes (i.e., fuse boxes, relay boxes, and
junction blocks) used in motor vehicles, was among the pre-qualified suppliers of Honda
Canada. When Honda called for supplier quotes, Nakuyawa coordinated with its Japan based
competitors regarding their price quotations or bids. These meetings resulted in an
arrangement whereby Nakuyawa would earn the contract for the tender. Consequently,
Nakuyawa was awarded the contract to supply the automobile parts of the 2011 and
2016 models of the Honda Civic. From 2010 to 2015, the estimated sales amounted to 16.5
million Canadian Dollars. Under the Philippine Competition Act, what violation was
committed?
a. Price fixing
b. Bid rigging
c. Predatory pricing
d. Output limitation
Page 69 of 88
ANTI-MONEY LAUNDERING ACT (AMLA)
1. The stage in the money laundering process where funds are being constantly moved or re-
characterized to conceal their origins. This stage is known as:
a. Placement
b. Layering
c. Integration
2. At which of the three stages of money laundering is it generally easiest to detect money
laundering activity?
a. Placement
b. Layering
c. Integration
3. An accountant goes to a casino in Manila with illegal money and converts it into chips. He
later emerges with a large amount of winnings. This placement technique is known as:
a. Assets conversion
b. Insurance purchase
c. Alternative remittance
d. Gambling
4. A foreigner makes a down payment in cash to purchase an apartment in Quezon City. The
rest of the payment is made through financing arranged by his offshore company. This
placement technique is known as:
a. Assets conversion
b. Insurance purchase
c. Alternative remittance
d. Gambling
5. Harvey deposits her illegal funds into her lawyer’s trust account. The lawyer then acts as an
intermediary transferring the funds into several accounts opened for a shell corporation to
assist Harvey in hiding the funds. This is known as:
a. Placement
b. Layering
c. Integration
6. Statement I: Money launderers are generally criminals trying to hide money from the drug
trade
Statement II: Trusts are legal arrangements for holding funds or assets for a specified
purpose. These funds or assets are managed by a trustee for the benefit of a specified
beneficiary or beneficiaries. Trusts can act as a layering tool because they enable creation of
false paper trails and transactions

7. Which of the following statement is correct about Integration:

a. Cannot happen without layering
b. Can occur without layering
c. Cannot happen without placement
d. Can occur without placement
8. At the integration stage illegal money is:

a. Difficult to trace
b. Fairly easy to trace
c. Cannot be trace
Page 70 of 88
9. A Thailand-based smuggling group sets up a company and transfers the title of an office
building to this company. A related offshore company buys the office building for a
substantial premium. The sales price is recorded as return of investment plus profit. This
integration technique is known as using:
a. Credit and debit cards
b. Corporate financing
c. Asset sales and purchases
d. Consultants
10. It refers to the normal level of customer due diligence that is appropriate in cases where there
is medium risk of money laundering or terrorism financing.
a. Customer Due Diligence
b. Average Due Diligence
c. Reasonable Due Diligence
d. Enhanced Due Diligence
11. It refers to a provisional remedy aimed at preserving monetary instruments or properties in

any way related to an unlawful activity or money laundering offense defined herein, during
the pendency of civil forfeiture proceedings.
a. Interlocutory Order
b. Freeze Order
c. Asset Preservation Order
d. Executive Order
12. Under the AMLA, “Beneficial Owner” refers to any natural person who:
a. Ultimately owns or controls the customer and/or on whose behalf a transaction or
activity is being conducted
b. Has ultimate effective control over a juridical person or legal arrangement
c. Owns, at least, twenty percent (20%) shares, contributions or equity interest in a
juridical person or legal arrangement
13. Under the AMLA, “Identification Document” (ID) refers to any of the following evidence of
identity of Filipino students, except:
a. PhilID
b. School ID signed by the school principal or head of the educational institution
c. Passport
d. Birth Certificate issued by the Philippine Statistics Authority
14. Under the AMLA, “Covered Transaction” refers to:

a. A transaction in cash or other equivalent monetary instrument exceeding One Million
pesos (PHP1,000,000.00)
b. A transaction with or involving jewelry dealers, dealers in precious metals and
dealers in precious stones in cash or other equivalent monetary instrument
exceeding One Million pesos (Php1,000,000.00)
c. A casino cash transaction exceeding One Million Pesos (PHP1,000,000.00) or its
equivalent in other currency
15. Under the Anti-Money Laundering Law, a covered institution is required to maintain a
system of verifying the true identity of their clients as well as persons purporting to act on
behalf of
a. those doing business with such clients.
b. unknown principals.
c. the covered institution.
d. such clients.
Page 71 of 88
16. The Anti-Money Laundering Law is a law that seeks to prevent money laundering activities
by providing for more transparency in the Philippine Financial System, hence the following
institutions are covered by the law, except:
a. bank and any financial institutions
b. pawnshops
c. casino operators
Casino operators were made covered institution in July 2017 under R.A. No. 10927
17. The following are policies of the AMLA, except:

a. to protect and preserve the integrity and confidentiality of bank accounts
b. to ensure that the Philippines shall not be used as money laundering site for the
proceeds of any unlawful activity
c. to prevent money-laundering activities by providing more transparency in the
Philippine financial system
d. to generate foreign investors in investing in the Philippines
18. Money laundering is a crime committed by any person who knowing that any instrument or
property represents, involves, or relates to the proceeds of any unlawful activity. Except:
a. transacts said monetary instrument or property;
b. converts or transfers, disposes of, moves, acquires, possess or uses said monetary
instrument or property;
c. conceals or disguises the true nature, source, location, disposition, movement or
ownership of or rights with respect to said monetary instrument;
19. It is a transaction in cash or other equivalent monetary instrument involving a total amount
in excess of P500,000.00 within one (1) banking day.
a. covered transaction
b. covered persons
c. suspicious transactions
d. unlawful activity
20. The following are covered persons, except:

a. banks supervised or regulated by BSP
b. insurance companies regulated by the Insurance Commission
c. casinos regulated by PAGCOR
21. The following are obligations of a covered institution, except:

a. Arms-length rule
b. Customer identification
c. Record keeping
d. Reporting of covered and suspicious transactions
22. Statement I: Covered institutions must record the true identity of its clients and all persons
purporting to act on their behalf based on official documents, and keep a system of verifying
their true identity as a system of verifying their legal existence and organizational structure.
Statement II: Peso and foreign currency non-checking numbered accounts shall be allowed.

23. Under the AMLA, All records of all transactions of covered institutions shall be maintained
and safely stored for ___ year(s) from the date of transactions.
a. 1
b. 2
c. 3
d. 5
Page 72 of 88
24. Under the AMLA, With respect to closed accounts, the records on customer identification,
account files and business correspondences, shall be preserved and safely stored for at least
___ years from the date when they were closed.
a. 2
b. 3
c. 5
d. 6
25. Suspicious transactions with covered institutions, regardless of the amount involved, where
any of the following circumstances exist are considered unlawful: except:
a. There is no underlying legal or trade obligation, purpose or economic justification;
b. The client is not popularly known;
c. The amount involved is not commensurate with the business or financial capacity of
the client;
d. Taking into account all known circumstances, it may be perceived that the client’s
transaction is structured in order to avoid being the subject of reporting requirements
26. Statement I: Lawyers and accountants acting as independent legal professionals are required
to report covered and suspicious transactions if the relevant information was obtained in
circumstances in their professional capacity.
Statement II: Covered persons and their officers and employees are prohibited from
communicating directly or indirectly, in any manner or by any means, to any person or entity
or the media the fact that a covered or suspicious transaction has been reported or is about
to be reported, the contents of the report or any other information relating thereto.

27. The following are Unlawful activities under the AMLA, except:
a. Kidnapping for ransom under Article 267 of Revised Penal Code (RPC);
b. Sections in RA 9165 or Comprehensive Dangerous Drugs Act of 2002;
c. Espionage under the RPC
d. Plunder under RA 7080;
28. The following are predicate crimes under the AMLA, except;
a. Jueteng and Masiao punished as illegal gambling under PD 1602;
b. Malicious mischief in open seas under RPC;
c. Qualified theft under Art. 310 of RPC;
d. Smuggling under RA Nos. 455 and 1937;
29. The following are unlawful activities under the AMLA, except:
a. Violation of Section 6 of RA 8042 or the Migrant Workers and Overseas Filipino Act of
1995, as amended by RA 10022;
b. Violation of RA 8293 or the Intellectual Property Code of the Philippines;
c. Violation of the Trust Receipt Law;
d. Violations of PD 1612 or the Anti-Fencing Law
30. If AMLA violation is committed by public officers and private persons in conspiracy with the
former, jurisdiction shall be vested in
a. Sandiganbayan
b. Ombudsman
c. Regional Trial Court
d. Department of Justice
Page 73 of 88
31. It shall refer to accounts, the funds and sources of which originated from and/or are
materially linked to the monetary instrument(s) or property(ies) subject of the freeze order in
AMLA.
a. Splitting of Account
b. Related interest
c. Related Accounts
d. Substitute Account
32. Tax evasion is now a predicated offense under the AMLA, where the deficiency basic tax due
in the final assessment for each tax type per taxable year are
a. in excess of Seven million five hundred thousand pesos (P7,500,000)
b. in excess of Ten million pesos (P10,000,000)
c. in excess of Twenty-five million pesos (P25,000,000)
d. in excess of fifty million pesos (P50,000,000)
33. When the transaction is both covered and suspicious transaction, covered person will
a. report this as covered transaction
b. report this as suspicious transaction
c. report this as partly covered and partly suspicious transaction
d. not report because this is ambiguous transaction.
34. Which of the following does not belong to the group of a covered person under the Anti-
Money Laundering Act?
a. Pre-need companies
b. Holding companies
c. Insurance brokers
d. Pawnshops
35. Statement I: To be considered Suspicious transactions, the threshold amount is irrelevant as

long as any of the circumstances mentioned by law are present.
Statement II: When the transactions involved an amount in excess of P500,000 for bank
transaction this is automatically reported as covered transaction even when the client is not
properly identified.

36. It is the final stage of the money laundering at which the ‘laundered’ property is re-
introduced into the legitimate economy?
a. Placement stage
b. Integration stage
c. Layering stage
37. Anti-Money Laundering Law as amended is a law that seeks to prevent money laundering
activities by providing for more transparency in the Philippine Financial System, hence the
following institutions are covered by the law, except:
a. bank and any financial institutions
b. Pawnshops
c. casino operators
d. Dealer of antique
38. The maximum period of freeze order issued by the court of appeal is?
a. 20 days
b. 30 days
c. 3 months
d. 6 months
Page 74 of 88
39. When the transaction is determined to be both a covered transaction and a suspicious
transaction, the covered person shall be required to report the same as
a. Covered transaction
b. Suspicious transaction
c. Mixed transactions
d. Not be reported because the transaction is ambiguous transaction.
40. The following belong to the declared policy of the state with regard the promulgation of the
Anti-Money Laundering Act or Republic Act No. 9160 as amended, except:
a. to protect and preserve the integrity and confidentiality of bank accounts
b. to ensure that the Philippines shall not be used as a money laundering site for the
proceeds of any unlawful activity
c. to develop educational programs, including awareness campaign on the
pernicious effects, the methods and techniques used, and the viable means of
preventing money laundering and the effective ways of prosecuting and
punishing offenders
d. to extend cooperation in transnational investigations and prosecutions of persons
involved in money laundering activities wherever committed
41. It states that no administrative, criminal or civil proceedings shall lie against any person for
having made a covered transaction or suspicious transaction report in the regular
performance of his duties and in good faith, whether or not such reporting results in any
criminal prosecution under the AMLA or any other Philippine law.
a. Confidentiality of Reporting
b. Enhanced Due Diligence
c. Transaction Reporting
d. Safe Harbor Provision
42. With respect to "payable-through accounts," covered persons are required to satisfy
themselves that the respondent bank:
a. Has performed customer due diligence obligations on its customers that have direct
access to the accounts of the correspondent bank
b. Is able to provide relevant customer due diligence information upon request to the
correspondent bank
c. Both A and B
d. Neither A nor B
43. Statement I: Covered persons are allowed from entering into, or continuing, correspondent
banking relationships with shell banks and should have measures to satisfy themselves that
respondent financial institutions do not permit their accounts to be used by shell banks.
Statement II: A covered person shall always apply enhanced due diligence on both the entity
and its beneficial owners when dealing with a shell company.

44. Under the AMLA, those not exceeding the threshold amount to be determined by the BSP or
its equivalent in foreign currency, they shall include accurate and meaningful originator and
beneficiary information. The following information shall remain with the transfer or related
message through the payment chain, except:
a. the name of the originator
b. the name of the beneficiary
c. the TIN number of the originator
d. an account number of the originator and beneficiary, or in its absence, a unique
transaction reference number
Page 75 of 88
45. Covered persons shall develop clear, written and graduated customer acceptance policies and
procedures including a set of criteria for customers that are likely to pose low, normal or high
risk to their operations. The criteria may include the following, except:
a. the nature of the service or product to be availed of by the customers
b. the purpose of the account or transaction
c. the fact that a customer came from a low risk jurisdiction
d. the existence of suspicious transaction indicators
46. Covered persons shall apply enhanced due diligence on the customer if it acquires
information in the course of its customer account or transaction monitoring that:
a. Raises doubt as to the accuracy of any information or document provided or the
ownership of the entity
b. Justifies reclassification of the customer from low or normal risk to high risk pursuant
to Implementing Rules and Regulations
c. Indicates that any of the circumstances for the filing of a Suspicious Transaction
Report exists
47. The following accounts shall be prohibited and may be the subject of the Supervising
Authorities' annual testing for the sole purpose of determining the existence and true identity
of their owners:
a. Anonymous Accounts and Accounts under Fictitious Names.
b. Numbered Accounts
c. Both A and B
d. Neither A nor B
48. For suspicious transactions, "occurrence" refers to:

a. the date of determination of the suspicious nature of the transaction, which
determination should be made not exceeding ten (10) calendar days from the
date of transaction.
b. the date of determination of the suspicious nature of the transaction, which
determination should be made not exceeding fifteen (15) calendar days from the date
of transaction.
c. the date of determination of the suspicious nature of the transaction, which
determination should be made not exceeding five (5) calendar days from the date of
transaction.
d. the date of determination of the suspicious nature of the transaction, which
determination should be made not exceeding thirty (30) calendar days from the date of
transaction.
49. Legal devices can be used to set up an entity to segregate assets or funds managed by an
individual or institution for the benefit of a specified beneficiary. The deed establishing the
entity does not necessarily name the beneficiary but this person can control the entity's
assets and funds. Such entities are called:
a. Offshore banks
b. Trusts
c. Shell companies
d. Front companies
50. Statement I: Covered institutions must record the true identity of its clients and all persons
purporting to act on their behalf based on official documents, and keep a system of verifying
their true identity as a system of verifying their legal existence and organizational structure.
Statement II: Peso and foreign currency non-checking numbered accounts shall be allowed.

Page 76 of 88
PHILIPPINE DEPOSIT INSURANCE ACT
1. The Philippine Deposit Insurance Corporation (PDIC) has the following roles except:
a. Deposit Insurance
b. Co-regulator of Banks
c. Arbiter of conflict between depositor(s) and closed banks
d. Liquidator of closed banks
2. It refers to an order issued by the Monetary Board of the BSP, based on the bank
examination report submitted by the Corporation, after due notice and hearing, and after
finding the said report meritorious by the Monetary Board, prohibiting a bank, its directors,
officers, employees, and/or agents concerned, from performing and continuing to perform
certain acts, concerning the bank’s deposit operations that is determined to be unsafe and
unsound banking by the Corporation.
a. Monetary Board Circular
b. Cease and Desist Order
c. Interlocutory Order
d. Executive Order
3. Under the PDIC law, the following are composition of Deposit Insurance Fund (DIF), except:
a. The Permanent Insurance Fund, which is the total capital provided by the NG
(National Government)
b. Assessment Collections, net of the expenses and charges
c. Revaluation surplus
d. Reserves for insurance and financial assistance losses
4. The PDIC shall not pay deposit insurance for the following accounts or transactions, except:
a. Investment products such as bonds and securities, trust accounts, and other similar
instruments which do not fall under the definition of a Deposit.
b. Deposit accounts or transactions which are fictitious or fraudulent, as determined by
the Corporation
c. Deposit accounts or transactions constituting unsafe and unsound banking, as
determined by the Corporation, in consultation with the BSP, after due notice and
hearing, and publication of a directive to cease and desist issued by the BSP against
such deposit accounts, transactions or unsafe and unsound banking.
5. The following are the composition of the board of directors of the Philippine Deposit
Insurance Corporation (PDIC), except:
a. Secretary of Finance
b. Chairperson of Securities and Exchange Commission (SEC)
c. President of the PDIC, who shall be appointed by the President of the Philippines
d. Governor of the BSP
6. The following are the qualifications of the board of directors of the PDIC, except:
a. Good moral character
b. Unquestionable integrity and responsibility
c. At least 45 years old
d. Recognized competence in economics, banking and finance, law, management
administration or insurance
7. Which of the following is NOT a function of the PDIC?

a. Insurance
b. Bank examination
c. Corporate rehabilitation
d. Receivership of closed banks
Page 77 of 88
8. Statement I – The PDIC shall insure deposits of all banks and investment houses.
Statement II – the PDIC shall promote and safeguard the interests of the depositing public by
providing insurance coverage on all insured deposits and helping maintain a sound and
stable banking system.
9. Statement I – A joint account regardless of the whether the conjunction “and”, “or”, “and/or”
is used shall be insured separately from any individually-owned deposit account.
Statement II – The aggregate of the interest of each co-owner over several joint accounts
whether owned by the same or different combinations of individuals, juridical persons or
entities, shall likewise be subject to the maximum insured deposit of P500,000
10. Under the PDIC Law, the following are classification of deposit insurance by account, except:
a. Single account
b. Joint account
c. Negotiable order of withdrawal (NOW) account
d. Account “by”, “In trust for” or “for the account of” another person
11. Under R.A. 10846 (Amendments to PDIC law), all payments by the Corporation of insured
deposits in closed banks partake of the nature of public funds, and as such, must be
considered a/an:
a. Deferred credit
b. Preferred credit
c. Uninsured account
d. Equitable mortgage
12. The following are requirements for claiming the insured deposits under the PDIC law, except:
a. Original evidence of deposits such as savings passbook, certificate of time deposit,
bank statement, used or unused checks, or ATM card
b. One (1) valid original photo-bearing identification document (ID) with clear signature
of depositor/claimant
c. Original copy of a notarized General Power of Attorney (GPA) for claimants who
are not the signatories in the bank records.
d. For depositors below eighteen (18) years old, photocopy of birth certificate from the
Philippine Statistics Authority (PSA) or a duly certified copy issued by the local civil
registrar, and valid ID of the parent
13. PDIC covers only the risk of a –

a. bank losses due to theft
b. bank closure ordered by the Monetary Board
c. bank losses due to fire, closure by reason of strike
d. banks losses due to existence of public disorder, revolution or civil war
14. The insurance premium assessed against the bank under the PDIC law is:
a. 1/5 of 1% per annum of the assessment base of the bank
b. 1/5 of 2% per annum of the assessment base of the bank
c. 1/4 of 1% per annum of the assessment base of the bank
d. 1/4 of 2% per annum of the assessment base of the bank
15. The depositor of the closed insured bank has ____________ to file his deposit insurance claim.
a. 6 months from date of bank takeover
b. 9 months from date of bank takeover
c. 12 months from date of bank takeover
d. 24 months from date of bank takeover
Page 78 of 88
16. The depositor account per bank record shows “Juan Dela Cruz for the account of Maria Dela
Cruz”. Who is the depositor in this case?
a. Juan Dela Cruz
b. Maria Dela Cruz
c. Both Juan Dela Cruz and Maria Dela Cruz equally
d. Neither A nor B, because it is not allowed by law
17. The depositor account per bank record shows “Juan Dela Cruz in trust for Maria Dela Cruz”.
Who is the depositor in this case?
a. Juan Dela Cruz
b. Maria Dela Cruz
18. The depositor account per bank record shows “Juan Dela Cruz by Maria Dela Cruz”. Who is
the depositor in this case?
a. Juan Dela Cruz
b. Maria Dela Cruz
19. The following are not covered by insurable deposit, except?

a. Unit Investment Trust Fund (UITF)
b. Mutual fund
c. Time deposit
d. Fictitious bank account
20. Mr. Juan Dela Cruz has the following account at YunYun Bank:
Depositor Nature of account Amount

Juan Dela Cruz Savings account P 260,000
Juan Dela Cruz in trust for Pedro Dela Cruz Time deposit account 60,000
Juan Dela Cruz for the account of Maria Dela Cruz Savings account 70,000
Juan Dela Cruz by Alexander De Jesus Time deposit 280,000
Juan Dela Cruz by Enrico Solomon Unit Investment Trust 390,000
Fund (UITF)
Juan Dela Cruz and Pete Dela Cruz Time deposit 80,000
Juan Dela Cruz and/or Maria Uy Checking account 600,000
XYZ Incorporation and/or Juan Dela Cruz Savings account 180,000
Juan Dela Cruz or Pete Dela Cruz or Bobby Dela Savings account 300,000
Cruz
Juan Dela Cruz or Pete Dela Cruz Mutual fund 90,000
If YunYun bank was ordered closed by the Monetary Board, the total amount of uninsured
deposit of Juan Dela Cruz for his single account?
a. P-0-
b. P40,000
c. P100,000
d. P170,000
*Total amount on single account of Juan Dela Cruz = 260,000 + 280,000 = P540,000 but the maximum
insured is only P500,000 and therefore the excess P40,000 is considered as uninsured deposit
Page 79 of 88
21. Mr. Juan Dela Cruz has the following account at BTS Bank:

Pedro Dela Cruz in trust for Juan Dela Cruz Time deposit account 20,000
Fund (UITF)
Cruz or Pedro Dela Cruz
If BTS bank was ordered closed by the Monetary Board, the total amount of insured deposit
of Juan Dela Cruz for his single account and joint account?
a. P500,000
b. P540,000
c. P520,000
d. P1,000,000
22. Mr. Juan Dela Cruz has the following account at TVJ Bank:

Fund (UITF)
Cruz
If TVJ bank was ordered closed by the Monetary Board, the total amount of uninsured
deposit of Juan Dela Cruz for his single account?
a. P150,000
b. P130,000
c. P20,000
d. P-0-
*The amounts will be covered by the maximum of P500,000 and therefore there are no uninsured amount
of deposits in the problem.
Page 80 of 88
23. Mr. Juan Dela Cruz has the following account at TVJ Bank:

Fund (UITF)
Cruz
If TVJ bank was ordered closed by the Monetary Board, the total amount of insured deposit
of Juan Dela Cruz for his joint account?
a. P500,000
b. P440,000
c. P435,000
d. P390,000
*(80,000/2) + (500,000/2) + (300,000/3) = P390,000
23. Iya is a depositor of Drew Bank. She has three (3) deposit accounts all under her name. One,
in checking account, one in saving account and another one in time deposit account. Each
account has a balance of P250,000. Drew Bank became insolvent. Philippine Deposit
Insurance Corporation closed the Bank. Hailey therefore is unable to withdraw from all of the
accounts. She then filed her claims with the Philippine Deposit Insurance Corporation.
Which statement is most accurate?
a. Iya can claim a total of P500,000 for all the three (3) accounts.
b. Iya can only claim from one (1) account of P250,000.
c. Iya can claim a total of P750,000from all the three (3) accounts.
d. Iya cannot claim anything from any of the deposit accounts.
24. Keisha maintains a savings deposit in the amount of P1 Million with ABC Bank Corporation.
Keisha also has obtained a loan from ABC Bank Corporation in the amount of P1 Million, In
case of default,
a. Deposit accounts are usually earmarked for specific purpose hence offsetting is not
legally possible.
b. ABC Bank can set-off the loan from the savings account being maintained by
Keisha with ABC Bank.
c. Off-setting is not possible because the obligation of Keisha is a "simple loan".
d. Set-off is not possible because legal compensation is not allowed in banking
transaction.
25. Hubby and his wife, Wiffy, opened and maintained 3 deposit accounts (Savings, Checking
and Time) with Allied Bank Recto with P200,000 each account and maintained the same
deposits with the same amount in Allied Bank Makati. If Allied bank becomes insolvent the
Philippine Deposit Insurance Corporation will be bound to be liable to the spouses for its
insurance liability equivalent to:
a. Two deposits
b. One deposit
c. Six deposits
d. Three deposits
26. Under the PDIC law, a bank can be placed under receivership when, if allowed to continue in
business, its depositors or creditors would incur:
a. Possible losses
b. Inevitable losses
c. Probable losses
d. A slight chance of losses
Page 81 of 88
27. Under the PDIC law amendments, may PDIC pay the insured deposits of a depositor without
netting out depositor’s loan obligation with the closed bank?
a. Yes, but only using the closed bank’s records alone.
b. Yes, even based on evidence of deposits and not on the closed bank’s records
alone.
c. No, because it will violate the principles of legal compensation.
d. No, because it will violate of the right to due process of the bank.
28. What is the mode of payment by PDIC of claims of depositors from a closed bank?
a. By cash
b. By making available to each depositor a transferred deposit in another insured bank
in an amount equal to insured deposit of such depositor
c. By checks, promissory note or bill of exchange
d. Either A or B
29. What is the effect of payment by PDIC of insured deposits to depositors?

a. PDIC shall be legally subrogated to all rights of depositor against the closed bank
to the extent of such payment.
b. PDIC may recover from the assets of the closed in so far as the payment made by PDIC
is beneficial to depositors.
c. PDIC may only recover from the assets of the closed bank if the payment is with the
consent of the closed bank.
d. PDIC may not recover from the assets of the closed bank if the payment is without the
knowledge or against the will of the closed bank.
30. The possibility that failure of one bank to settle net transactions with other bank will trigger
a chain reaction, depriving other banks of funds lending to a general shutdown of normal
clearing and settlement activity.
a. General risk
b. Systematic risk
c. Universal risk
d. Credit risk
Page 82 of 88
BANK SECRECY LAW (R.A. 1405)
1. The Bank Secrecy Law (RA 1405) prohibits disclosing any information about deposit records
of an individual without court order except:
a. In an examination to determine gross estate of a decedent.
b. In an investigation for violation of Anti-Graft and Corrupt Practices.
c. In an investigation by the Ombudsman.
d. In an impeachment proceeding.
2. Which of the following is an exception to the secrecy of bank deposits which are in Philippine
Pesos, but NOT an exception to the secrecy of foreign currency deposits?
a. Upon Bangko Sentral ng Pilipinas (SSP) inquiry into or examination of deposits or
investments with any bank, when the inquiry or examination is made in the course of
the SSP's periodic special examination of said bank to ensure compliance with the
Anti-Money Laundering Act (AMLA)
b. Upon Philippine Deposit Insurance Corporation (PDIC) and SSP inquiry into and
examination of deposit accounts in case there is a finding of unsafe or unsound
banking practice
c. Upon inquiry in cases of impeachment
d. Upon inquiry by the Commissioner of Internal Revenue in the event a taxpayer files an
application to compromise his tax liabilities on the ground of financial incapacity.
3. What can a bank lawfully do or omit to do without violating its duty to exercise extraordinary
diligence in the handling of deposits?
a. Allowing a crossed check to be cashed provided that the payee is personally known to
the bank.
b. Accepting as deposit a check which is not indorsed by the payee, provided that the
check is a manager’s check.
c. Closing a demand deposit account with prior notice to a depositor who has been
misusing such account repeatedly overdrawing against it.
d. Disclosing information regarding “and/or” savings account where one of the two
depositors has given his written permission for such disclosure.
4. The right to secrecy of bank deposits:

a. Being part of municipal law, does not apply to deposits in branches of foreign banks in
the Philippines.
b. Is a constitutional right which may, however, be regulated by statute.
c. Cannot be invoked in the absence of an express statutory provision.
d. If violated will render the information obtained thereby inadmissible as evidence in any
proceeding against the depositor.
5. Corona V is being charged for violation of Anti-Graft and Corrupt Practices because he is
suspected of having accumulated unexplained wealth. Corona V maintains deposit accounts
with MODERNA Bank. The Ombudsman filed criminal cases against Corona V before the
Sandiganbayan. Can the Court issue subpoenas against MODERNA Bank to produce all
documents pertaining to all the deposit accounts of Corona V?
a. Yes, because there is already a pending case and provided the subpoena must be
specific as to which account.
b. Yes, it is enough that the specific bank is identified.
c. No, because the issuance of the subpoena has no real legal basis.
d. Even without a subpoena, information about the deposit accounts of Mandalorian can
be submitted to the Sandiganbayan because it will be used in a pending case.
6. Aki, a private individual, maintains a dollar deposit with Maharlika Bank. Aki is suspected to
be the leader of a Kidnap for Ransom Gang and he is suspected of depositing all ransom
money in said deposit account which are all in US Dollars. The police want to open said
account to know if there are really deposits in big amounts. Which statement is most
accurate?
a. The same rules under Secrecy of Bank Deposit Act will apply.
b. An approval from the Monetary Board is necessary to open the account.
c. Because the deposit is in US Dollars, it is covered by the Foreign Currency Deposit Act
which allows disclosure only upon the written permission of the depositor.
d. Approval from the Court is necessary to order disclosure of the account.
Page 83 of 88
7. All foreign currency deposits are considered of an absolutely confidential in nature and shall
exempt from attachment, garnishment or any other order or process of any court, legislative
body, government agency or any administrative body whosoever. The following are the
exemption to the secrecy of foreign currency deposit except:
a. Upon the written permission of the depositor
b. Upon order of competent court in cases of violation of AMLA when it established that
there is a probable cause that the deposits or investments involved are in any way
related to a money laundering offense
c. The BSP and PDIC to the Corporation and/or Bangko Sentral may inquire into or
examine deposit accounts pursuant to explanation
d. The PDIC with prior approval of the Monetary Board
8. All of the following are exceptions to the Bank Secrecy Law, except:
a. Upon order of the competent court in cases involving Graft and Corrupt Practices Act
b. Examination by an independent auditor hired by the bank
c. The BSP and PDIC to the Corporation and/or Bangko Sentral may inquire into or
examine deposit accounts pursuant to explanation
d. In- camera inspection by the Ombudsman
9. Under the Bank Secrecy Law, it is hereby declared to be the policy of the government:
a. to give encouragement to the people to deposit their money in banking
institutions
b. to encourage private hoarding
c. Both A and B
d. Neither A nor B
10. All deposits of whatever nature with banks or banking institutions in the Philippines may not
be examined, inquired or looked into by any person, government official, bureau or office,
except upon:
a. Written permission of the depositor
b. In cases of impeachment
c. Upon order of competent court in cases of bribery or dereliction of duty of public
officials
11. Which of the following statements presents the correct legal principle?
a. It shall be unlawful for any official or employee of a banking institution to disclose to
any person any information concerning deposits.
b. The Secrecy of Bank Deposit Account does not prohibit attachment or garnishment of
bank accounts, which does not involve revealing specific information of deposits.
c. Both A and B
d. Neither A nor B
12. The Philippine Deposit Insurance Commission and the Bangko Sentral ng Pilipinas may
inquire into bank deposits when:
a. there is a request for tax information of specific taxpayers made by a foreign tax
authority pursuant to a tax treaty
b. there is a finding of unsafe or unsound banking practices
c. when there is probable cause that the deposits or investments are related to an
unlawful activity or a money laundering offense
d. necessary to examine and gather information on the deposits, placements, trust
accounts, assets and records in a bank or financial institution in connection with anti-
terrorism case
13. The following are Authorized Disclosures in the Bank Secrecy Law, except:
a. when there is probable cause that the deposits or investments are related to an
unlawful activity or a money laundering offense
b. turn-over to the CIR of the amount in bank accounts as may be sufficient to satisfy
the writ of garnishment issued to collect delinquent taxes
c. submission of report, and turn-over to, the court officer or executing sheriff of
garnished amounts pursuant to a writ of garnishment in satisfaction of a judgment
d. disclosure by a bank officer or employee upon order of the court in connection with a
deposit in a closed bank that was used in the perpetration of anomalies
Page 84 of 88
14. The Commissioner of Internal Revenue (CIR) is authorized to inquire into bank deposits in
the following instances, except:
a. an application for compromise of tax liability
b. determination of a decedent’s gross estate under the NIRC
c. determination of the gross income of a corrupt public official
d. request for tax information of specific taxpayers made by a foreign tax authority
pursuant to a tax treaty under The Exchange of Information on Tax Matters Act of
2009
15. The following persons are not liable under the Bank Secrecy Law, except:
a. Any person or government official who, or any government bureau or office that,
examines, inquires or looks into a bank deposit or government bond investment in any
of the instances not allowed in Section 2 of the Bank Secrecy Law
b. Any official or employee of a banking institution who makes a disclosure concerning
bank deposits to another in any instance not allowed
c. Any person who commits a violation of any of the provisions of the law
Page 85 of 88
ELECTRONIC COMMERCE ACT of 2000 (R.A. 8792)
1. Andrea Enterprise has decided to implement an electronic commerce initiative. Although

Andrea has only announced its policy to its larger trading partners, the company has also
begun allowing for electronic mail from customers through its web site. In turn, it has
responded electronically. Recently, one its customers sent the company an email cancelling
her regular monthly order. Andrea decided not to recognize the message on the basis of its
electronic format, without notification to the sender. Under the Electronic Commerce Act,
which of the following statements is true?
a. Andrea must fill the customer’s order
b. Andrea might be said to have consented to the use of electronic documents and,
if so, must accept the customer’s message
c. Andrea may either accept or refuse the message at will
d. Andrea is justified in refusing to recognize the electronic message
2. Which of the following correctly illustrates the functional equivalence for a legal signature?
a. writing your name on the bottom of a hand written agreement
b. clicking “I Accept” in a dialogue box in a clickwrap agreement
c. attaching an electronic signature to an electronic document
3. Which of the following propositions is supported by jurisprudence in accordance with

electronic commerce act?
a. clicking “I AGREE” is ineffectual unless there is a printout of the agreement to satisfy
the parol evidence rule
b. clicking “I AGREE” is not a legally permissible means of communicating acceptance of
a contractual offer
c. the fact that a party clicked “I AGREE” without actually reading the terms of the
agreement will NOT render the contract unenforceable
d. the fact that a party clicked “I AGREE” without actually reading the terms of the
agreement will render it unenforceable
4. Which of the following would best explain why certain terms in an online agreement might be
found to be of no legal effect?
a. the terms are not accessible to the customer until after the transaction is
complete
b. the terms cannot be stored electronically
c. the terms are displayed in red font, rather than black
d. the terms are boilerplate provisions
5. Which of the following would be legally recognized pursuant to the Electronic Commerce Act?
a. ordering an item online through another person’s shopping bot
b. programming your shopping bot (an automated electronic device) to purchase an item
from a web site with your credit card
c. purchasing an item from a web site with your credit card by clicking through a series
of dialogue boxes
6. Which of the following may serve an authenticating function with respect to electronic
documents?
a. Cryptography
b. a certification authority
c. an electronic signature
7. Under the E-commerce Act, which of the following is used to verify the identity of the person
purporting to provide an electronic signature?
a. information security
b. digital watermarking
c. a digital certificate
d. file formatting
Page 86 of 88
8. When you arrived at work this morning, there was a memo on your desk asking you to draft
a report that outlines how a public key infrastructure (PKI) might be implemented in the
company’s business practices. Although you know that PKI can be used for both encrypting
messages and verifying electronic signatures, you are confused as to their respective
purposes. After conducting further research, which of the following will you find to be TRUE
in accordance with Electronic Commerce Act?
a. decrypting a message requires the sender to use her private key, while verifying her
electronic signature requires the use of her public key
b. decrypting a message requires the recipient to use her private key, while
verifying her electronic signature requires the use of her public key
c. decrypting a message requires the recipient to use her public key, while verifying her
electronic signature requires the use of her private key
d. decrypting a message requires the sender to use her public key, while verifying her
electronic signature requires the recipient to use his private key
9. You have recently gone into business as a consultant, specializing in the area of online
consumer protection. As part of your services, you offer a seminar on how to avoid fraudulent
transactions. Which of the following practices will you immediately suggest to your clients?
a. implementing electronic contracting and instantaneous communication
b. utilizing an open-access network
c. adopting authentication procedures
d. transacting as a mere conduit
10. Who has the burden of proving the authenticity of an electronic data message or electronic
document in any legal proceeding?
a. The person seeking to introduce said electronic data message or electronic
document
b. The person denying the authenticity of said electronic data message or electronic
document
c. The person who signed the electronic document
d. The person who sent the electronic data message
11. What may be presumed to have been established by an affidavit given to the best of the
deponent’s knowledge?
a. Presumption of integrity of electronic evidence
b. Admissibility of electronic evidence
c. Both A and B
d. Neither A nor B
12. The following statements relates to original documents, except:

a. Where the law requires information to be presented in its original form, the integrity of
the information from the time when it was first generated in its final form is evidence
b. where the law requires information to be presented in its original form where it is
required that information be resented, that the information is capable of being
displayed to the person to whom it is to be presented
c. The criteria for assessing integrity shall be whether the information has
remained complete and altered
d. The standard of reliability required shall be assessed in the light of purposed for which
the information was generated
13. The interpretation of the e-commerce act will be given due to its international origin due to:
a. Dominance of international law
b. Promote uniformity
c. Observance of good faith in local trade relations
d. Minority of local chapters
14. Authorities and parties with the legal right can only gain access to electronic documents,
electronic data messages, and electronic data messages, and electronic signatures. For
confidentiality purposes, it shall not share or convey to any other person.
a. Obligation of Reliability
b. Obligation of Confidentiality
c. Obligation of Authenticity
d. Obligation of Security
Page 87 of 88
15. The following are essential features of the E- Commerce Law, except:
a. Legal recognition of electronic documents
b. Admissibility as evidence
c. Permanent insurance fund
d. Use in transactions involving carriage of goods
16. Which main government agency is empowered to promulgate rules and regulations for the
implementation of the Electronic Commerce Act?
a. Department of Transportation and Communication (DOTC)
b. Department of Trade and Industry (DTI)
c. National Privacy Commission (NPC)
d. Department of Information and Communications Technology (DICT)
17. Under the E-commerce Act, when is an electronic data message or electronic document
considered dispatched?
a. When it enters an information system still within the control of the originator or his
agent
b. When it enters an information system outside the control of the originator or his agent
c. Never, since anything electronic cannot be dispatched
d. As agreed by the parties
18. Under the E-commerce Act, when is an electronic data message or electronic document
considered received if it was sent to an information system of the addressee that is not the
designated information system?
a. As agreed by the parties
b. At the time when the electronic data message or electronic document is retrieved by
the addressee
c. At the time when the electronic data message or electronic document enters an
information system of the addressee
d. At the time when the electronic data message or electronic document enters the
designated information system
19. In any legal proceedings, nothing in the application of the rules on evidence shall deny the
admissibility of an electronic data message or electronic document in evidence:
a. On the sole ground that it is in electronic form
b. On the ground that it is not in the standard written form, and the electronic data
message or electronic document meeting, and complying with the requirements under
Legal Recognition of Electronic Data Messages and Electronic Documents mentioned
above, shall be the best evidence of the agreement and transaction contained therein
c. Either A or B
d. Both A and B
20. The following are the objectives of the E-Commerce Act, except:
a. to facilitate domestic and international dealings, transactions, arrangements,
agreements, contracts and exchanges and storage of information through the
utilization of electronic, optical and similar medium, mode, instrumentality and
technology
b. to recognize the authenticity and reliability of electronic data messages or electronic
documents related to such activities
c. to promote the specific use of electronic transactions in the government and by
the general public
Page 88 of 88

Quizzer On Special Laws Version 2

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Quizzer On Special Laws Version 2

Uploaded by

Copyright:

Available Formats

QUIZZER ON SPECIAL LAWS (VERSION 2)

Compiled and Constructed by Vhin

INSURANCE CODE OF THE PHILIPPINES

2. The following are characteristics of an insurance contract, except:

5. Which of the following is considered doing/transacting an insurance business?

11. The following persons cannot be beneficiary in an insurance contract, except;

14. How are insurance contracts construed?

16. Under the Insurance Code, a warranty is:

21. All of the following are disadvantages of using insurance EXCEPT

27. When must insurable interest in life insurance exists?

29. The following are examples of misrepresentation, EXCEPT:

30. When breach of warranty does not avoid policy, save:

32. The following are requisites of double insurance, except:

37. A person insured is entitled to a return of premium as follows:

40. The following are instances when deviation is proper, except:

45. Freightage may be derived from the following, save;

46. The following are policies of inland marine insurance, except:

48. The following are called "Perils of the Ship", except:

50. “Reinsurance” refers to the practice by insurance companies of:

51. By taking out insurance cover an individual:

53. A retirement annuity is particularly attractive to someone who has:

57. All of the following are disadvantages of using insurance EXCEPT:

58. The following are policies of inland marine insurance, except:

59. All of the following can be classified as casualty insurance EXCEPT:

77. The following are the elements of an insurance contract, except:

79. The following statements are presented to you for evaluation:

In your evaluation of the foregoing statements:

89. In case of failure to designate a beneficiary or the beneficiary designated is disqualified

91. Except for one, an insurable interest in property may consist in

102. A written memorandum of the important terms of a preliminary contract of insurance

106. What is the period of prescription in motor vehicle insurance?

116. Premiums are recoverable in the following instances, except:

122. Which is not true with respect to double insurance?

123. Which is true with respect to reinsurance?

133. X, Co., a partnership, is composed of A (capitalist partner), B (capitalist partner) and C

146. Which of the following statements relative to a policy of insurance is false?

149. One of the following is not a characteristic of a warranty in insurance policies?

151. The insured is not entitled to a return of premiums paid if:

LABOR STANDARDS AND SSS LAW

1. Which of these is a leave benefit governed by the Labor Code?

2. The following shall be considered as compensable hours worked.

a. Only Statement 1 is correct.

10. Which of the following statements is/are correct?

a. Only Statement I is correct.

13. What is the basis of overtime pay on an ordinary day?

15. The obligation to pay overtime compensation is _________.

a. Only Statement 1 is true

a. Only Statement 1 is true

21. What is a premium pay?

22. The rate of premium pay for working on a rest day is

a. Only Statement I is true

a. Only Statement I is true

30. The following are not entitled to holiday pay, except:

31. The following are considered as Solo parents, except:

a. Only Statement I is true

a. Only Statement I is true

a. Only Statement I is true

a. All statements are true

a. Only Statement I is true

Question 1: May A validly refuse the plant manager’s directive?

60. Salary as distinguished from wages

63. Which of the following is not a valid wage deduction?

71. Which of the following is not a regular holiday?