Question 1 1/4 pts Which of the following situations appears to involve “undue influence” thereby negating genuine consent which is an essential element of a valid contract? ‘An elderly couple signs a mortgage in favor of a Bank guaranteeing their son's debts; the Bank manager knows that the couples are unaware of the son's financial difficulties. ‘Aman induced another to sign a contract by telling him that if he did not, he would report his son to the police for committing a criminal offence. ‘Awoman gave all of her property to the religious order of which she was a member. All of the above.Question 2 1/1 pts Debtor owes Creditor P20, 000. On the due date of the obligation, Debtor could not pay. Debtor instead offered his TV set worth P20,000 in payment of the obligation. Creditor agrees. There is no payment because the debt may only be discharged by the delivery of legal tender. There is payment pursuant to a facultative obligation because of a substitution There is dation in payment or dacion en pago. There is payment by cession. Question 3 1/1 pts On June 5, 2022, Jose Dizon was supposed to deliver to Ruben Samia a specified red car. There was no delivery however, on said date. On June 15, 2017, the garage of the car collapsed because of an earthquake and the car was totally destroyed. Is Jose Dizon liable? No, because he could plead impossibility of performance due to a fortuitous event even if he is in default. Yes, because Jose Dizon is in legal delay. No, because there was no demand and the car was lost through a fortuitous event. Yes, because there is a perfected contract. Question 4 1/4 pts Which if the following is demand necessary to make the debtor in delay in the performance of his obligation? When demand would be useless; When the law so provides; When the time of performance is of the essence; When the time of performance has been stipulated, Question 5 1/4 pts One is not a requisite needed in order that obligation shall be extinguished by loss or destruction of the thing due: When the thing is lost without the fault of the debtorWhen the thing is lost before the debtor has incurred in delay When the thing lost is generic When the thing lost is specific. Question 6 1/1 pts Joshua, Russell and Tommy borrowed P6,000,000 from Marian, Anthony and Maricar evidenced by a promissory note worded as follows, to wit: “I promise to pay Marian, Anthony and Maricar P 6,000,000. (Sgd) Joshua, Russell and Tommy" How much can Marian collect from Joshua? P6,000,000 P3,000,000 1,000,000 2,000,000 Question 7 1/4 pts Ahas two creditors, B and C, the obligation to B is P10,000 and to C is P12,000. Later, with the consent of A and B, W pays B P10,000. Now W and C are the creditors of A. Suppose A has only P 12,000, which is correct? C should be preferred W should be preferred Cand W should be paid proportionately ‘Amay choose whom to pay Question 8 1/4 pts A, minor, sold the ring of his brother without authority for P600,000. The ring has a fair market value of P1,000,000, The contract is Rescissible Voidable Unenforceable Void Question 9 1/1 ptsAhas an obligation to deliver a specific cellphone to B but a specific laptop may be substituted in lieu of the specific cellphone. Who has the right of choice in this type of obligation? Aunless there is stipulation to the contrary B unless there is stipulation to the contrary Always A Always B IncorrectQuestion 10 0/1 pts Demand is necessary in this situation for the debtor to be in delay When the time is a controlling motive. When the obligation has been fulfilled. When the obligor has rendered it beyond his power to perform. When the debtor delivers a wrong thing in the due date. Question 11 111 pts Which of the following statements relative to contracts is incorrect? I both parties are minors, the contract is unenforceable. Ifthe insane party entered into the contract during a lucid interval, the contract is voidable. If one party is a minor and other is not, the contract is voidable. Acontract entered into while in state of drunkenness is voidable, Question 12 1/1 pts S sold a banana plantation to Mr. B for P3 million although its market value is P20 million. It was agreed that Mr. S shall remain in possession as lessee of the land and shall be responsible for the real estate taxes The contract gives rise to an action for annulment. ‘The contract gives rise to an action for rescission. ‘The contract is presumed to be an equitable mortgage. The contract is a sale,Question 13, 1/1 pts Anne owed Bessy P1 million due on October 1, 2011 but failed to pay her on due date. Bessy sent a demand letter to Anne giving her 5 days from receipt within which to pay. Two days after receipt of the letter, Anne personally offered to pay Bessy in manager's check but the latter refused to accept the same. The 5 days lapsed. May Anne's obligation be considered extinguished? No, since a manager's check is not considered legal tender in the Philippines. No, since tender of payment even in cash, if refused, will not discharge the obligation without proper consignation in court. Yes, since Bessy's refusal of the manager's check, which is presumed funded, amounts to a satisfaction of the obligation Yes, since Anne tendered payment of the full amount due. Question 14 1/1 pts Which of the following is most likely incorrect? D promised to deliver to Mr. C 100 bottles of Japanese red wine of a specified brand. Without the knowledge of Mr. D, production of the wine had been stopped. Despite eamest efforts, Mr. D could only deliver ninety (90) bottles. Mr. 's obligation is deemed fulfilled. D promised to deliver 100 sacks of a certain type of rice. He delivered only 90 sacks but the obligee did not object to the incomplete delivery. The obligation may be deemed fully performed The creditor cannot be compelled to accept payment or performance by a third person who has no interest in the fulfilment of the obligation or unless there is a stipulation to the contrary. In the preceding letter (a), Mr. D could recover as though there had been a delivery of 100 bottles. Question 15, 1/4 pts Where the debtor has various debts of the same kind in favor of the same creditor and on the due date the debtor does not have sufficient funds to cover all the debts, the debtor may avail 0 Application of payment. Tender of payment and consignation Cession in payment. Dation in payment.Question 16 1/1 pts Debtor owes fifteen (15) persons substantial amounts of money. His financial situation indicates that his liabilities for exceed his assets. If Mr. Debtor cedes or assigns his properties to his creditors, The creditors acquire ownership of the properties assigned or ceded. The creditors shall sell the properties assigned and when sold, the debt of Mr. Debtor is deemed paid regardless of whether or not the net proceeds are equal to or less than the amount of the indebtedness. The creditors shall sell the properties assigned and when sold, the debt of Mr. Debtor shall only be released to the extent of the net proceeds of the sale. The cession or assignment shall extinguish the obligation whether or not the creditors sell the properties assigned, Question 17, 1/1 pts Debtor owes Mr. Creditor P100, 000. On the due date, Mr. Debtor delivers a cashier's check for the full amount. Mr. Creditor refuses to accept the check. Debtor may make a consignation by depositing the amount due at the disposal of judicial authorities before whom the tender of payment shall be proved in a proper case. The creditor may be considered in mora accipiendi Debtor may make a consignation by depositing the amount due with any bank and in the name of Mr. Creditor. Debtor has no legal basis for making a consignation. Question 18 1/4 pts Which among the following fails to state a correct legal principle? The debtor in obligations to do shall be released when the Prestation becomes legally or physically impossible without the fault of the obligor. Whenever the thing is lost in the possession of the debtor, it shall be presumed that the loss was due to his fault, unless there is proof to the contrary. ‘An obligation which consists in the delivery of a determinate thing shall be extinguished in any event it should be lost or destroyed without the fault of the debtor.Condonation or remission is essentially gratuitous, and requires the acceptance by the obligor. It may be made expressly or impliedly. Question 19 1/4 pts The quasi-contract of negotiorum gestio requires the following, Which is the exception? There must be an abandoned or neglected property or business. ‘Someone voluntary takes charge of that abandoned business or property. ‘The owner must consent to the management of his business or property by someone. ‘The owner has the obligation to reimburse the expenses of the person who takes charge of his business or property. Question 20 1/4 pts Awas appointed by the court as guardian of the minor X. Mr. A sold the vegetables that were planted in the lot of X. The value of the vegetable is P5,000 but Mr. A sold the vegetables for only P2,000. The contract is Rescissible Voidable Unenforceable Void Question 21 1/1 pts Which of the following is NOT an essential element of a contract of sale? There must be some price for the goods. There must be transfer of possession of goods. There must be transfer of ownership of goods, There must be some goods as subject matter. Question 22 1/4 ptsKnowing that the car had a hidden crack in the engine, X sold it to Y without informing the latter about it. In any event, the deed of sale expressly stipulated that X is not liable for hidden defects. Does Y have the right to demand from X a reimbursement of what he spent to repair the engine plus damages? No, because Y waived the warranty against hidden defects. Yes, X is liable whether or not he was aware of the hidden defect. Yes, since the defect was not hidden; X knew of it but he acted in bad faith in not disclosing the fact to Y. No, because Y is in estoppel, having changed the engine without prior demand IncorrectQuestion 23 0/1 pts In case of eviction, the vendor shall be liable to the vendee only for the value of the thing sold at the time of eviction in which of the following cases? Where there is waiver consciente, Where there is waiver intencionada When the vendor was in bad faith and there was stipulation exempting the vendor from liability in case of eviction. When the vendor was in bad faith and there was no stipulation exempting the vendor from liability in case of eviction Question 24 1/1 pts Seller and Mr. Buyer orally agreed on the following: + The land to be sold has an area of 10,000 sq. meters; + Price is PS million; and + Seller shall prepare the deed of sale With fraudulent intent, Mr. Seller knowing the inadequacies of Mr. Buyer with respect to numbers, write 1,000 sq. meters instead of 10,000 sq. meters win the deed of sale. The sale is void valid but the contract may be reformed. valid but the instrument may be reformed. voidable but the contract may be reformedIncorrectQuestion 25 0/1 pts Buyer bought a car from Mr. Seller, a dealer of cars under the following terms: + Down payment of P500,000; + Entire balance is to be paid on December 24, 2024; + Achattel mortgage is to be executed over the car bought or sold in favor of Mr. Seller. If on the due date for the balance, no payment is paid despite demand. Based on the foregoing facts, what is the best remedy of Mr. Seller? Seller may foreclose the mortgage on the car and recover any balance if there be a deficiency in the foreclosure sale. Seller can foreclose the mortgage on the car but is precluded from recovering any balance. Seller cannot foreclose the mortgage. His only remedy is to sue for the balance. Seller can only cancel or rescind the sale. Question 26 1/4 pts Seller offered to sell to Mr. Buyer, a parcel of land for P5 million. Because the latter could not make up his mind, Mr. Seller gave him thirty (30) days within which to decide. Seller may always withdraw the offer before 30 days. Seller can withdraw the offer prior to acceptance by Mr. Buyer. Seller cannot withdraw before the lapse of 30 days. Answer is not given Question 27 1/4 pts Seller offered to sell a parcel of land Mr. Buyer orally for P5 million. Mr. Buyer accepted orally on November 5, 2021. The sale is voidable. The sale is valid and can be registered. The sale is valid but unenforceable and cannot be registered. The sale Is voidable but may be ratified Question 28 1/4 ptsSeller offered a parcel of land to Mr. Buyer No. 1 under a contract to sell. Subsequently, Mr. Seller sold the same land to Mr. Buyer No. 2 who paid the price. After a couple of days, Mr. Buyer No. 1 paid the price. Which is correct? The one with a better right is Buyer No. 2 Seller has done a double sale. The one with the better right is the buyer who registers the sale first in good faith. There is no double sale. Question 29 1/1 pts Statement No. 1 — A contract of sale is a mode of acquiring ownership. Statement No. 2 - Every delivery transfer ownership. Both Statements are false. Both Statements are true. Statement No, 1 is true; Statement No. 2 is false, Statement No. 1 is false; Statement No. 2 is true. Question 30 1/4 pts X, without the authority of Mr. Y, owner of a car, sold the same car in the name of Mr. Y to Mr, Z. The contract between Mr. X and Mr. Z is Void because of the absence of consent from the owner, Mr. Y. Valid because all of the essential requisites of a contract are present. Unenforceable because Mr, X had no authority but he sold the car in the name of Mr. Y, the owner. Rescissible because the contract caused lesion to Mr. Z. Question 31 1/4 pts Which of the following reflects a correct legal principle? A contract of sale is not a mode of acquiring ownership. A,B, and C, are co-owners of a three-hectare orchard. If A decides to sell his share to B, C has a right of redemption.‘Aand B are adjoining owners of a rural land. Each land has an area of half a hectare. If B sells his land to D who does not own any rural land, C has a right of redemption. Ifthe right to repurchase is not exercised within the period agreed upon, a judicial order is necessary to consolidate ownership on the buyer. Question 32 1/4 pts Andrea wrote Bernardo a letter offering to sell a piece of land. Andrea gave Bernardo two months within which to pay the price of P500,000. After 50 days Andrea informed Bernardo that sh increasing the price of the land to P700, 000. Can Bernardo compel Andrea to accept the P500,000 first offered and execute the deed of sale? No, because Bernardo did not signify his acceptance of the offer of P500,000 Yes, because the period of 2 months has not yet expired Yes, because Andrea is already estopped by her signed letter, Yes, because there was actual meeting of minds of the parties. Question 33 1/1 pts When goods are delivered to the buyer “on sale or return”, for a period of seven (7) days, ownership of the goods passes to the buyer, Upon delivery of the goods. Upon expiration of seven (7) days. Upon acceptance by the buyer of the offer of the seller. Upon perfection of the contract Question 34 1/4 pts S sold to B a thing without knowledge that the thing suffered from a hidden defect. The parties agreed ‘on the waiver of the warranty by the buyer. Is the seller still liable for breach of warranty? No, but he must return the price to the buyer without damages. No, because the valid waiver of warranty. Yes, if the seller was in bad faith at the time the waiver was made. Yes, because the waiver refers only to liability for damages.Question 35, 1/1 pts S sold a residential condominium unit to B at an instalment price of P6,000,000 payable in 50 years at a monthly rental of P10,000 per month. After payment of several instalments totalling P1,200,000, B defaulted in the payment of remaining instalments which resulted to the cancelation of the contract of sale after the lapsing of the grace period. What is the amount of cash surrender value to be received by B from S as a result of cancellation? 600,000 900,000 840,000 960,000 Question 36 1/4 pts Aand B are legally married and their property regime is governed by absolute community of property. Aorally sold his specific cellphone to B at a price of P50 with a carrying amount of P800 after B pointed a gun to A. Delivery of the specific cellphone will happen after three years. What is the status of the contract of sale? Rescissible Voidable Unenforceable Void Question 37 1/1 pts B rented the specific truck of S. After the end of the contract, S sold the property to B. As a result of sale, B continues to have possession of the property. What type of constructive delivery is present? Traditio clavium Traditio longa manu Traditio brevi manu Traditio constitutum possessoriumQuestion 38 1/1 pts Which of the following statements relative to the sale of personal property by installment under Article 1484 of the Civil Code (Recto Law) is false? The remedy of exacting fulfillment of the obligation can be availed only where one (1) installment is not paid. Cancellation of the sale can only be made after default of at least two (2) installments. ‘An agreement for recovery of any unpaid balance of the purchase price after electing to foreclose the chattel mortgage on the thing sold is null and void. The three (3) remedies under Article 1484 of the Civil Code are alternative and cannot be exercised simultaneously or successively, Question 39 1/1 pts B purchased a motor vehicle from S for P1,200,000, payable by a downpayment of P600,000 and the balance in 12 equal monthly installments of P50,000 each. A chattel mortgage on the vehicle was executed to serve as security. B defaulted on the 7th and 8th monthly installments. The chattel mortgage was foreclosed but the auction sale resulted into a deficiency of P100,000. Under the Chattel Mortgage Law, in relation to Recto Law, what is the remedy of S to recover the deficiency? Auction the other properties of B for P100,000. Cancel the installment sale. File a collection suit for P100,000 against B. No other remedy on the deficiency. Question 40 1/1 pts Realty Installment Buyer Protection Act, also known as the Maceda Law, covers the installment sale of financing of: Condominium dwelling units ‘Commercial buildings Industrial lots Agricultural lands to tenants under the Agrarian Reform Program, Question 41 1/1 ptsWhere the installment buyer was able to pay less than two years of installment, the Maceda Law grants him a grace period, without any additional interest, of: Thirty (30) days Sixty (60) days ‘One (1) month Two (2) months Question 42 1/4 pts A pledged his ring to B for P20,000. A failed to pay his obligation. B sold it at a public auction for P 18,000. Can B recover the deficiency? Yes, even without stipulation Yes, if there is stipulation No, even if there is stipulation No, unless there is stipulation Question 43, 1/1 pts A pledged his ring to B for P20,000. A failed to pay his obligation. B sold it at a public auction for 22,000. Can A recover the excess? Yes, even without stipulation Yes, if there is stipulation No, even if there is stipulation No, if there is stipulation Question 44 1/1 pts C mortgaged his car to B for P200,000. C failed to pay his obligation. B sold it at a public auction for 180,000. Can B recover the deficiency? Yes, even without stipulation Yes, only if there is stipulationNo, even if there is stipulation No, unless there is stipulation Question 45, 1/4 pts C mortgaged his car to B for P200,000. C failed to pay his obligation. B sold it at a public auction for P220,000, Can C recover the excess? Yes, even without stipulation Yes, only if there is stipulation No, even if there is stipulation No, unless there is stipulation Question 46 1/4 pts D borrowed P100,000 from C. The obligation is secured by a mortgage on D's land and building. C registered the mortgage with the Register of Deeds. Thereafter, D sold the land and building to B who was not aware of the existence of the mortgage at the time of sale since only the photocopy of the transfer certificate of title which did not yet contain the annotation of the mortgage was shown to him. It was only when he went to the Register of Deeds to register the sale of the land and building to him that he learned of the mortgage. Which is correct? can collect from D and if D cannot pay, C can foreciose the mortgage can collect from D, but f D cannot pay, C cannot foreclose the mortgage cannot collect from D, He can only go after the mortgage which was given as security C cannot foreclose the mortgage because B is a buyer in good faith Question 47 1/4 pts Which of the following is a feature common to chattel mortgage and pledge? Deficiency is recoverable in case of sale of the thing pledged/mortgaged The object of the contract is a movable property The excess of the proceeds of sale over the amount of the obligation belongs to the pledgor/mortgagor ‘An affidavit of good faith is required to bind third persons IncorrectQuestion 48 0/1 ptsEssential elements of real estate mortgage include all of the following, except In case of foreclosure sale, the mortgagor is entitled to the excess The mortgagor can sell even without the consent of the mortgagee The thing mortgaged must be delivered to the creditor To bind third persons, it must be recorded in the Registry of Property Question 49 1/1 pts Which of the following statements is not correct? If the thing pledged is returned by the pledge to the pledgor, the obligation is extinguished In sale at public auction, the pledgor may bid and his bid is valid even if he is the only bidder Any stipulation authorizing the pledgee to appropriate the thing pledged is void and without effect Shares of stock can be the object of pledge or mortgage Question 50 1/4 pts The right of a mortgagor in a judicial foreclosure to redeem the mortgaged property after his default in the performance of the conditions of the mortgage but before the sale of the mortgaged property or confirmation of the sale by the court, is known as accion publiciana equity of redemption pacto de retro right of redemption. Question 51 1/1 pts In which of the following cases of receipts is there prima facie evidence that one is a partner in a business? His receipt of a share in the gross returns derived from a property where he has a joint or common interest with another, His receipt of a share of the profits realized from the use of a property that he co-owns with another.His receipt of a share of the net profits of a business. His receipt of share of the profits realized from the use of a property that he co-possesses with another. Question 52 1/4 pts Three years ago, Benjamin and Bienvenido, brothers, inherited a five-floor commercial building and the lot on which it was constructed, from Facundo, their father, who died without a will. For the past three years, the brothers have divided between the two of them the profit on the rental of the property. Are Benjamin and Bienvenido partners? Yes, because of their receipt of the profit from the use of the property. No, they are merely co-owners of the whole property. No, each one is a sole proprietor of one-half of the whole property. No, they are considered as stockholders of the whole property. Question 53 1/4 pts Sanchez and Suarez are both real estate brokers. The two have not entered into any partnership agreement, but to save on costs, they share at the Avenue Twin Towers the same office space on the front door of which is the signage “Sanchez and Suarez, Real Estate Brokers.” They also use the same stationery showing the name appearing on the signage and one telephone number, and share the services of the same secretary. Sanchez, using the stationery, ordered a laptop computer worth P100,000.00 from Cyber Computers owned by Camarino, who himself delivered the computer to the office. Camarino also issued a receipt acknowledging the down payment of P40,000.00 from “Sanchez and Suarez” without any objection from Suarez. Sanchez, later failed to pay the balance of P60,000.00. Camarino now seeks to recover the amount of P60,000.00 from both Sanchez and Suarez as partners. ‘Only Sanchez may be held liable by. Camarino since the purchase of the laptop computer is the personal transaction of Sanchez. ‘Only Sanchez may be held liable by Camarino since Sanchez and Suarez did not enter into any partnership agreement Both Sanchez and Suarez can be held liable by Camarino since the two are considered as partners in so far as Camarino is concerned.Only “Sanchez and Suarez, Real Estate. Brokers”, as a juridical entity is able to Camarino since an actual partnership exists. IncorrectQuestion 54 0/1 pts Where an immovable property or real rights are contributed to a partnership, the partnership contract must be in a public instrument to which shall be attached an inventory of the immovable property contributed and signed by the parties, Failure to comply with the said requirements: makes the partnership void. makes the partnership unenforceable. makes the partnership voidable. does not affect the acquisition by the partnership of a juridical personality. Question 55 1/4 pts If the capital of the partnership is P3,000.00 or more, in money or property, the partnership must be in a public instrument which must be recorded in the office of the Securities and Exchange Commission. Failure to comply with such requirements: makes the partnership void. makes the partnership voidable. makes the partnership rescissible. does not affect the acquisition by the partnership of a juridical personality. Question 56 1/1 pts Which of the following partnership agreement is required to be in a public instrument and an inventory of the property contributed must be made, signed by the parties and attached to the public instrument? general partnership where the capital amounts to P80,000.00 consisting of P30,000.00 cash and P50,000.00 worth of computers. general partnership where the capital amounts to P'150,000.00 consisting of cash of P100,000.00 cash and a vacant lot worth P50,000.00. general partnership where the capital amounts to P1,000,000.00 in cash. Alimited partnership where the capital amounts to P500,000.00 in cashQuestion 57 1/4 pts X and Y formed a universal partnership of profits. Which of the following properties belongs to the partnership? Coconut plantation inherited by X before the formation of the partnership. Salary received by Y as professor of a college in Manila during the first year of the partnership. Lotto prize won by X during the first year of the partnership. Agricultural lot donated to Y during the first year of the partnership. Question 58 1/4 pts Which of the following statements is false? Agoneral partner may contribute money, property and/or services. Alimited partner may contribute money andior property, but not services. Apartner may not be a general and limited partner at the same time. general partner may either be a capitalist or an industrial partner. Question 59 1/1 pts These statements are presented to you for evaluation: ‘Statement | - A limited partner may also be a general partner at the same time. Statement Il - An industrial may also be a capitalist partner at the same time. Both statements are true. Both statements are false. Only Statement I is true. Only Statement Il is true. Question 60 1/1 pts In which of the following instances is a partnership considered to be a partnership at will? ‘One where the partners did not agree on a definite term or &. specific undertaking.‘One where the partners agreed on a definite term for the partnership, but the business is continued by the partners after the expiration of such term. ‘One where the partners agreed on a specific undertaking, but the business is continued after the attainment of such undertaking. All of the foregoing, Question 61 1/1 pts Which is an element of the doctrine of "piercing the veil of corporate entity?" ‘Complete control over the business. Control is used to commit fraud or wrong, Control and breach of duty are the proximate cause of the injury or loss. All of the foregoing. Question 62 1/4 pts A corporation being a creature of the law, its powers are limited by The law, By the express terms of its articles of incorporation as well those essential or necessary to carry out its purpose or purposes under such articles By those necessary or incidental to its powers so conferred All of the foregoing Question 63 1/4 pts A corporation commences to exist: upon the execution of the articles of incorporation by the incorporators, upon the filing of the articles of incorporation with the Securities and Exchange Commission. upon the issuance of the certificate of incorporation.on the date when the incorporators acknowledged the due execution of the articles of incorporation before a notary public Question 64 1/4 pts Preferred shares that are entitled to receive not only the stipulated dividends at a certain rate but also pro-rata with the common shares in the remaining profits are known as: Cumulative Non-cumutative Non-participating Participating IncorrectQuestion 65 0/1 pts The following are the management rights of a stockholder, EXCEPT: Right to compel the calling of the meetings Right to elect and remove directors Right to inspect corporate books Right to enter into a voting trust agreement Question 66 1/1 pts Anon-voting preferred stock cannot vote in: Dissolution of the corporation Filing of vacancy in the board Increase or decrease in capital stock ‘Amendment of articles of incorporation Question 67 1/1 pts What is the term of corporate existence under the Revised Corporation Code? Fifty (50) years. Perpetual existence unless its articles of incorporation provide otherwiseThe term as specified in the articles of incorporation which must not be less than fifty (50) years. The term as specified in the articles of incorporation which must not be more than fifty (50) years. Question 68 1/4 pts ‘An amendment in the articles of incorporation that would shorten the corporate term requires the approval of the: 2/3 vote of the board of directors/trustees and 2/3 vote of the outstanding capital stockimembers Majority vote of the board of directors/trustees and 2/3 vote of the outstanding capital stockimembers. Majority vote of the board of directors/trustees and majority vote or written assent of the outstanding capital stocklmembers Majority vote of the board of directors/trustees and 2/3 vote or written assent of the outstanding capital stocklmembers Question 69 1/1 pts Which of the following amendments shall require for its approval only the majority vote of the board of directors and the vote or written assent of 2/ 3 of the outstanding capital stock? ‘Amendment to incur bonded indebtedness ‘Amendment to decrease or increase capital stock Amendment to increase the number of the board of directors ‘Amendment to reduce voting requirement in a close corporation Question 70 1/4 pts The following are considered as statutory corporate officers even if it not provided for in the by-laws, EXCEPT: President Corporate Secretary Compliance Officer Treasurer Question 71 1/1 ptsA corporate director, trustee or officer may be held personally liable with the corporation under the following circumstances, EXCEPT: When he assents to a patently unlawful act of the corporation When he acts in bad faith or with gross negligence in directing the affairs of the corporation, or in conflict with the interest of the corporation resulting in damages to the corporation, its stockholders or other persons When he consents to the issuance of watered stocks or who, having knowledge thereof, does not forthwith file with the corporate secretary his written objection thereto When he agrees to hold himself personally and jointly liable with the corporation Question 72 1/1 pts Which of the following statements relative to the board of directors of a stock corporation is false? Additional qualifications may be provided in the by-laws (e.g.,a director is disqualified for nomination or election if he ‘owns at least 10% of the stocks of another competing corporation). director must not have been convicted by final judgment of an offense punishable by more than six (6) years imprisonment, or committed a violation of the Corporation Code within five (5) years prior to the date of election or appointment. A director may be removed from office by a vote of the majority of the outstanding capital stock with or without cause; provided, that removal without cause may not be used to deprive minority stockholders, who used ‘cumulative voting to elect such director, of the right of representation. No director shall receive any compensation (other than per diems) as such, unless the same is granted in the bylaws or by a vote of at least 2/3 of the outstanding capital stock; provided; that the total yearly compensation (excluding per diems and compensation as officers) shall not exceed ten (10%) percent of the net income before income tax of the corporation during the preceding year. Question 73 1/1 pts Which of the following statements concerning no-par shares is incorrect? ‘Subscriptions to no-par shares shall be deemed fully paid and non-assessable. The entire consideration received for no-par shares shall all be treated as capital and no part thereof shall be available for distribution as dividends. They may be issued for a consideration of less than P5.00 per share,They may not be issued by banks, trust companies, insurance companies, public utilities, and building and loan associations. Question 74 1/4 pts A corporation has five (5) seats in the board of directors. X owns ten shares. Which of the following ways of voting in the election of directors exemplifies the use of straight voting method? Fifty (50) votes for a single candidate Thirty (30) votes for a candidate and 20 votes for another candidate Either (A) or (B) Neither (A) nor (B) Question 75 1/4 pts Which of the following statements relative to corporate officers is true? The corporate Treasurer must be a citizen of the Philippines. The corporate Secretary must also be a director or trustee of the corporation. The term of office of the corporate President is coterminous with his term as a board director. The corporate President may simultaneously serve as the corporate Treasurer or Secretary. Question 76 1/1 pts A,B,C, D, E, F and G are the members of the board of directors of a corporation. Unfortunately, E, F and G resigned for personal reasons. How shall the vacancies be filled up? The vacancies shall be filled up by the majority vote of the board of directors. The vacancies shall be filled up by the majority vote of the stockholders in a regular or special meeting The vacancies shall be filled up by the vote of at least 2/3 of the stockholders in a regular or special meeting, None of the foregoing Question 77 1/1 pts The contract entered into by a self-dealing director, trustee or officer is valid where: The vote of such director, trustee or officer was necessary for the approval of the contract,The presence of the director, trustee or officer in the board meeting in which the contract was approved was necessary to constitute a quorum for such meeting Both A and B Neither A nor B Question 78 1/4 pts Asstockholder's right of pre-emption may be denied where: ‘Shares are to be issued in order to comply with the minimum 60% Filipino ownership required by law. Shares are to be issued in good faith and with the approval of at least 2/3 of the outstanding capital stock in payment of a previously contracted debt. Both A and B Neither A nor B Question 79 1/1 pts Which of the following distinctions between a cash dividend and a stock dividend is false? Cash dividend has the effect of distributing the accumulated profits to the stockholders’ whereas stock dividend has the effect of capitalizing such accumulated profits thereby increasing the corporation's capital Cash dividend, once declared, belongs to the stockholder and cannot be transferred to any surplus account of the corporation; whereas the declaration of stock dividend may be rescinded before its actual issuance. The declaration of cash dividend requires only a majority of the quorum of the board of directors; whereas the declaration of stock dividend requires the approval of at least 2/3 of the members of the board of directors. A delinquent stockholder is still entitled to receive cash dividend but it must first be applied to his unpaid subscription balance; whereas stock dividend shall be withheld until the delinquent stockholder pays his subscription in full Question 80 1/1 pts XY" is a recreational club which was organized to operate a golf course for its members with an original authorized capital stock of P100 M. The articles of incorporation nor the by-laws did not provide for distribution of dividends although there is a provision that after its dissolution, the assetsshall be given to a charitable corporation. Following the Revised Corporation Code (RCC) what is the classification of “XY"? Non-Stock Corporation ‘Stock Corporation Corporation by prescription Eleemosynary Corporation Question 81 1/4 pts An insurance contract is a mechanism by which all members of a group exposed to a particular risk contribute premiums to an insurer. In that sense, an insurance contract is a(an) Insurance planning device Insurance policy Insurance white paper Risk-distributing device Question 82 1/4 pts Neil owns a condominium unit presently insured with Holy Insurance Co. for P10 Million. Neil later sells the condominium unit to Oliver. Somehow Oliver fails to obtain the transfer of the insurance policy to his name from Neil. Subsequently, fire of unknown origin destroys completely the condominium unit. Who may collect the insurance proceeds? Neil Oliver Both A and B Neither A nor B Question 83, 1/4 pts Who among the following parties is considered “public enemy” and, therefore, may not be insured? ‘Abbu Sayaf members North Korean communists New People's Army members None of the foregoingIncorrectQuestion 84 0/1 pts Which of the following cases would make the insurer liable on the insurance? Insured concealed that he had contracted syphilis; he died from a vehicular accident a year later. Insured (an old, iliterate Chinese who does not speak English) concealed the fact that she was seriously ill in an insurance contract worded in English. Insured concealed that he was suffering from tuberculosis in his non-medical insurance that dispenses with the usual medical examination before the policy is issued. Insured concealed the fact that he was diabetic which resulted to his death three (3) years later. IncorrectQuestion 85 0/1 pts Which of the following defenses is barred by the incontestable clause in life insurance contracts? The person taking the insurance has no insurable interest ‘The premiums have not been paid. The cause of death is suicide within two (2) years from the date of last reinstatement of the policy by the insured who insane at the time of its commission ‘The action on the policy is not brought within the prescribed period of ten (10) years from the time the cause of action accrues. Question 86 1/4 pts The verified petition filed with the court for a Pre-Negotiated Rehabilitation Plan must be endorsed or approved by: Creditors holding at least 2/3 of the total liabilities of the debtor. Secured creditors holding more than 50% of the total secured claims of the debtor and unsecured creditors holding more than 50% of the total unsecured claims of the debtor. Both A and B Neither A nor B Question 87 1/1 ptsAn Out-of-Court Informal Restructuring Agreement or Rehabilitation Plan under the Financial Rehabilitation and Insolvency Act (FRIA) of 2010 requires the agreement of the debtor and the approval of creditors representing at least: 75% of secured claims, 75% of unsecured claims, and 80% of total secured and unsecured claims 67% of secured claims, 75% of unsecured claims, and 85% of total secured and unsecured claims 70% of secured claims, 70% of unsecured claims, and 75% of total secured and unsecured claims 50% of secured claims, 50% of unsecured claims, and 75% of total secured and unsecured claims Question 88 1/1 pts Under the Financial Rehabilitation and Insolvency Act (FRIA) of 2010, what remedy is available to an individual debtor who, possessing sufficient property to cover all his debts, foresees the impossibility of meeting them when they respectively fall due? Voluntary liquidation Involuntary insolvency ‘Suspension of payments None of the foregoing Question 89 1/1 pts Which of the following statements is true regarding proceedings under the Financial Rehabilitation and Insolvency Act? It is a proceeding in rem, which means it binds the whole world. The proceedings are adversarial in nature, which means it requires an opposing party and is heavily litigated. It is a proceeding in personam, which means that it attaches to the person Jurisdiction over all persons affected is acquired by service of summons. Question 90 1/1 pts All of the following are exceptions to the Bank Secrecy Law except? Upon order of the competent court in cases involving Graft and Corrupt Practices Act Examination by an independent auditor hired by the bankThe BSP and PDIC to the Corporation and/or Bangko Sentral may inquire into or examine deposit accounts pursuant to explanation In- camera inspection by the Ombudsman Question 91 1/4 pts A Scientist has managed to create a new breed of pigs by altering its DNA of which such has never existed prior to such act by the scientist. Is the pig breed patentable? Since itis immoral ‘Since the pig was created purely by the hand of the scientist Since animal breeds are not patentable Although the animal breeds are not patentable, the essential micro-biological process is patentable Question 92 1/1 pts When a device appropriates a prior invention by incorporating its innovative concept and, although with some modification and change, performs substantially the same function in substantially the ‘same way to achieve substantially the same result, what test should be applied? Literal infringement test Denicola test Doctrine of Equivalents test Fair Use test Question 93 1/1 pts Which of the following works is considered as derivative work that is entitled to copyright protection? Dramatization Translation Both A and B Neither A nor B Question 94 1/1 pts Which of the following matters are accorded copyright protection?Photographs taken by a reported of a sexy movie star. News about the assassination of a Senator. Illustration of playing a board game Civil Code of the Philippines. Question 95 1/4 pts Which of the following is a covered person, therefore, required to report to AMLC reportable or suspicious transactions? Educational institution Casinos Mining companies Transportation companies Question 96 111 pts What is the amount of covered transaction in so far as jewelry dealers are concerned for purposes of reporting to Anti-Money Laundering Council? A transaction exceeding P500,000 A transaction exceeding P1,000,000 A transaction exceeding P5,000,000 transaction exceeding P100,000 Question 97, 1/1 pts It refers to the policy which states that no government officer or employee shall have any contact, in any manner, unless strictly necessary with any applicant or requesting party concerning an application or request Zero-contact policy Anti-contact policy Independence policy Social distancing Question 98 111 ptsAny denial of application or request for access to government service shall be fully explained Orally In writing Either A or B Neither A nor B Question 99 1/4 pts What is the maximum limit on the share ownership of a member in a cooperative? '5% of the share capital of the cooperative 10% of the share capital of the cooperative 20% of the share capital of the cooperative 25% of the share capital of the cooperative IncorrectQuestion 100 0/1 pts The following decisions in a cooperative require 3/4 vote of members entitled to vote, except: Removal of officer of a cooperative ‘Amendment of articles of cooperation of a cooperative Ratification of disloyalty committed by a director of a cooperative Merger or consolidation of a cooperative Quiz Score: 91 out of 100