Labor Law

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2011 Bar Examination Questionnaires
Labor Law .......................................................................... 1 Political Law ....................................................................... 9 Taxation ........................................................................... 18 Civil Law .......................................................................... 26 Remedial Law ................................................................... 36 Criminal Law ..................................................................... 46 Commercial Law ............................................................... 52 Legal Ethics ...................................................................... 62

A. B. C. D.

No, “loss of confidence” as reason for dismissal does not apply to rank and file employees. No, “loss of confidence” applies only to confidential positions. Yes, “loss of confidence” is broad enough to cover all dishonest acts of employee. RIGHT ANSWER Yes, “loss of confidence” applies to employees who are charged with the care and custody of the employer's property.

LABOR LAW
1. The union’s by-laws provided for burial assistance to the family of a member who dies. When Carlos, a member, died, the union denied his wife's claim for burial assistance, compelling her to hire a lawyer to pursue the claim. Assuming the wife wins the case, may she also claim attorney's fees? A. B. C. D. No, since the legal services rendered has no connection to CBA negotiation. Yes, since the union should have provided her the assistance of a lawyer. No, since burial assistance is not the equivalent of wages. Yes, since award of attorney's fee is not limited to cases of withholding of wages.

5. Tower Placement Agency supplies manpower to Lucas Candy Factory to do work usually necessary for work done at its factory. After working there for more than two years under the factory manager’s supervision, the workers demanded that Lucas extend to them the same employment benefits that their directly hired workers enjoyed. Is their demand valid? A. B. C. D. Yes, since it was Lucas that actually hired and supervised them to work at its factory. No, since the agency workers are not employees of the client factory. Yes, since they have been working at the factory in excess of two years. No, since it was the placement agency that got them their jobs.

6. Both apprenticeship and learnership are government programs to provide practical on-the-job training to new workers. How do they differ with respect to period of training? A. B. C. D. In highly technical industries, apprenticeship can exceed 6 months; learnership can exceed one year. Apprenticeship cannot exceed 6 months; learnership can. Apprenticeship shall not exceed six months; while learnership shall not exceed three months. The law lets the employer and the apprentice agree on the apprenticeship period; but the law fixes learnership period at six months in non-technical industries.

2. Pol requested Obet, a union officer and concurrently chairman of the company's Labor-Management Council, to appeal to the company for a recomputation of Pol’s overtime pay. After 5 p.m., his usual knock-off time, Obet spent two hours at the Personnel Office, reconciling the differing computations of Pol’s overtime. Are those two hours compensable? A. B. C. Yes, because Obet performed work within the company premises. No, since Obet’s action has nothing to do with his regular work assignment. No, because the matter could have been resolved in the labor-management council of which he is the chairman. Yes, because the time he spent on grievance meetings is considered hours worked.

D.

7. Venus Department Store decided to contract out the security services that its 10 direct-hired full-time security guards provided. The company paid the men separation pay. With this move, the Store was able to cut costs and secure efficient outside professional security services. But the terminated security guards complained of illegal dismissal, claiming that regular jobs such as theirs could not be contracted out. Will their complaint prosper? A. B. C. D. No. the management has the right to contract out jobs to secure efficient and economical operations. Yes. They should be reinstated or absorbed by the security agency as its employees. No. They are estopped from demanding reinstatement after receiving their separation pay. Yes. The company cannot contract out regular jobs such as they had.

3. The Labor Code on retirement pay expands the term “onehalf (½) month salary” because it means A. B. C. D. 15 days' pay plus 1/12th of the 13th month pay and 1/12th of the cash value of service incentive leave. 15 days' pay plus 1/12th of the 13th month pay and the cash equivalent of five days service incentive leave. 15 days pay plus a full 13th month pay. 15 calendar days' pay per year of service plus allowances received during the retirement year.

8. Although both are training programs, apprenticeship is different from learnership in that A. a learner may be paid 25% less than the legal minimum wage while an apprentice is entitled to the minimum wage. apprenticeship has to be covered by a written agreement; no such formality is needed in learnership.

4. A foreign guest in a luxury hotel complained that he lost certain valuable items in his hotel room. An investigation by the hotel pointed to two roomboys as the most probable thieves. May the management invoke “loss of confidence” as a just cause for dismissing the roomboys?

B.

Labor Law
C. in learnership, the employer undertakes to make the learner a regular employee; in apprenticeship, no such undertaking. a learner is deemed a regular employee if terminated without his fault within one month of training; an apprentice attains employment status after six months of apprenticeship. by the company to clean and maintain his staff house is regarded as A. B. C. D. a person rendering personal service to another. a regular company employee. a family member. domestic helper.

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D.

9. A golf and country club outsourced the jobs in its food and beverage department and offered the affected employees an early retirement package of 1 ½ month’s pay for each year of service. The employees who accepted the package executed quitclaims. Thereafter, employees of a service contractor performed their jobs. Subsequently, the management contracted with other job contractors to provide other services like the maintenance of physical facilities, golf operations, and administrative and support services. Some of the separated employees who signed quitclaims later filed complaints for illegal dismissal. Were they validly dismissed? A. Yes. The jobs were given to job contractors, not to labor-only contractors, and the dismissed employees received higher separation pay than the law required. No. The outsourcing and the employment termination were invalid since the management failed to show that it suffered severe financial losses. No. Since the outsourcing of jobs in several departments entailed the separation of many employees, the club needed the Secretary of Labor’s approval of its actions. No. Since the outsourced jobs were held by old-time regular employees, it was illegal for the club to terminate them and give the jobs to others.

13. The union filed a notice of strike due to a bargaining deadlock. But, because the Secretary of Labor assumed jurisdiction over the dispute, the strike was averted. Meanwhile, the employer observed that the union engaged in a work slowdown. Contending that the slowdown was in fact an illegal strike, the employer dismissed all the union officers. The union president complained of illegal dismissal because the employer should first prove his part in the slowdown. Is the union president correct? A. B. C. D. Yes, since the employer gave him no notice of its finding that there was a slowdown. Yes. The employer must prove the union president’s part in slowdown. No. When a strike is illegal, the management has the right to dismiss the union president. No. As the union president, it may be assumed that he led the slowdown.

B.

C.

D.

14. The existing collective bargaining unit in Company X includes some fifty “secretaries” and “clerks” who routinely record and monitor reports required by their department heads. Believing that these secretaries and clerks should not be union members because of the confidential nature of their work, the management discontinued deducting union dues from their salaries. Is the management’s action legal? A. No, only managers are prohibited from joining unions; the law does not bar “confidential employees” from joining unions. No, “confidential employees” are those who assist persons who formulate, determine, or enforce management policies in the field of labor relations. Yes, secretaries and clerks of company executives are extensions of the management and, therefore, should not join the union. No, “confidential” employees are those who handle executive records and payroll or serve as executive secretaries of top-level managers.

10. Sampaguita Company wants to embark on a retrenchment program in view of declining sales. It identified five employees that it needed to separate. The human resource manager seems to recall that she has to give the five employees and the DOLE a 30-day notice but she feels that she can give a shorter notice. What will you advise her? A. Instead of giving a 30-day notice, she can just give a 30-day advanced salary and make the separation effective immediately. So long as she gave DOLE a 30-day prior notice, she can give the employees a shorter notice. The 30-day advance notice to the employee and the DOLE cannot be shortened even with a 30-day advance salary. She can give a shorter notice if the retrenchment is due to severe and substantial losses.

B.

C.

B. C.

D.

D.

11. Under the Labor Code, its provisions on working conditions, including the eight-hour work day rule, do not apply to domestic helpers. Does it follow from this that a domestic helper's workday is not limited by law? A. B. C. D. No, since a domestic helper cannot be required to work more than ten hours a day. Yes, since a domestic helper's hours of work depend on the need of the household he or she works for. No, because a domestic helper is legally entitled to overtime pay after ten hours of work. Yes, a domestic helper may be required to work twelve hours a day or beyond.

15. Jose Lovina had been member of the board of directors and Executive Vice President of San Jose Corporation for 12 years. In 2008, the San Jose stockholders did not elect him to the board of directors nor did the board reappoint him as Executive Vice President. He filed an illegal dismissal complaint with a Labor Arbiter. Contending that the Labor Arbiter had no jurisdiction over the case since Lovina was not an employee, the company filed a motion to dismiss. Should the motion be granted? A. B. C. D. No, the Labor Arbiter has jurisdiction over all termination disputes. Yes, it is the NLRC that has jurisdiction over disputes involving corporate officers. No, a motion to dismiss is a prohibited pleading under the NLRC Rules of Procedure. Yes, jurisdiction lies with the regular courts since the complainant was a corporate officer.

12. Under the Labor Code on Working Conditions and Rest Periods, a person hired by a high company official but paid for

Labor Law
16. An employee proved to have been illegally dismissed is entitled to reinstatement and full backwages computed on the basis of his A. B. C. D. basic salary plus the regular allowances and the thirteenth month pay. basic salary plus the salary CBA increases during the pendency of his case. basic salary plus the increases mandated by wage orders issued during the pendency of his case. basic salary at the time of dismissal. 20. Is it correct to say that under Philippine law a househelper has no right to security of tenure? A. B. C. D. No, since a househelper can be dismissed only for just cause or when his agreed period of employment ends. Yes, since it is the employer who determines the period of his service. Yes, since a househelper can be dismissed with or without just cause. No, since a househelper can be dismissed only for just cause, except when he has been employed for a definite period not exceeding one year.

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17. The meal time (lunch break) for the dining crew in Glorious Restaurant is either from 10 a.m. to 11 a.m. or from 1:30 p.m. to 2:30 p.m., with pay. But the management wants to change the mealtime to 11: a.m. to 12 noon or 12:30 p.m. to 1:30 p.m., without pay. Will the change be legal? A. Yes, absent an agreement to the contrary, the management determines work hours and, by law, meal break is without pay. No, because lunchbreak regardless of time should be with pay. Yes, the management has control of its operations. No, because existing practice cannot be discontinued unilaterally.

B. C. D.

21. Reach-All, a marketing firm with operating capital of P100,000, supplied sales persons to pharmaceutical companies to promote their products in hospitals and doctors' offices. Reach-All trained these sales persons in the art of selling but it is the client companies that taught them the pharmacological qualities of their products. Reach-All’s roving supervisors monitored, assessed, and supervised their work performance. Reach-All directly paid their salaries out of contractor's fees it received. Under the circumstances, can the sales persons demand that they be absorbed as employees of the pharmaceutical firms? A. B. No, they are Reach-All’s employees since it has control over their work performance. Yes, since they receive training from the pharmaceutical companies regarding the products they will promote. No, since they are bound by the agency agreement between Reach-All and the pharmaceutical companies. Yes, since Reach-All does does not qualify as independent contractoremployer, its clients being the source of the employees’ salaries.

18. The employees’ union in San Joaquin Enterprise continued their strike despite a return to work order from the Secretary of Labor. Because of this defiance, the employer dismissed the strikers. But the Labor Arbiter declared as illegal the dismissal of those whose commission of unlawful acts had not been proved. They were ordered immediately reinstated. The employer refused, however, to reinstate them on the ground that the rule on immediate reinstatement applies only to terminations due to just or authorized causes. Is the employer’s refusal justified? A. No, every employee found to have been illegally dismissed is entitled to immediate reinstatement even pending appeal. Yes. The employer’s refusal is legal and justified as a penalty for defying the secretary’s lawful order. Yes, the rule on immediate reinstatement does not apply to employees who have defied a return-to-work order. No. The dismissal of the employees was valid; reinstatement is unwarranted.

C. D.

22. Executive Order No. 180, which protects government employees, does NOT apply to “high-level employees,” namely, A. B. C. D. presidential appointees. those performing policy-determining functions, excluding confidential employees and supervisors. confidential employees and those performing policydetermining functions. elective officials.

B. C.

D.

19. Llanas Corporation and Union X, the certified bargaining agent of its employees, concluded a CBA for the period January 1, 2000 to December 31, 2004. But, long before the CBA expired, members of Union Y, the minority union, showed dissatisfaction with the CBA under the belief that Union X was a company union. Agitated by its members, Union Y filed a petition for a Certification Election on December 1, 2002. Will the petition prosper? A. B. C. D. No, such a petition can only be filed within the freedom period of the CBA. No, since a petition for certification can be filed only upon the expiration of the CBA. Yes, a certification is the right remedy for ousting a company union. Yes, employees should be allowed to cancel at the earliest opportunity a CBA that they believed was obtained by a company union.

23. In the case of a househelper, reinstatement is not a statutory relief for unjust dismissal because of the confidentiality of his or her job. Instead, the househelper shall be paid A. B. C. D. an indemnity equivalent to 15 days' pay plus compensation already earned. a separation pay equivalent to one month's pay per year of service. a separation pay equivalent to one-half month's pay per year of service. 15 days' pay as indemnity plus wages lost from dismissal to finality of decision.

24. The CBA for the period January 2007 to December 2009 granted the employees a P40 per day increase with the understanding that it is creditable as compliance to any future wage order. Subsequently, the regional wage board increased by P20 the minimum wage in the employer’s area beginning January 2008. The management claims that the CBA increase may be considered compliance even if the Wage Order itself said that “CBA increase is not creditable as compliance to the Wage Order.” Is the management's claim valid?

Labor Law
A. A. B. Yes, since creditability of the CBA increase is the free and deliberate agreement and intention of the parties. Yes, since the Wage Order cannot prejudice the management’s vested interest in the provisions of the CBA. No, disallowing creditability of CBA pay increase is within the wage board's authority. No, the CBA increase and the Wage Order are essentially different and are to be complied with separately. B. C. D. regular employees in government instrumentalities and agencies. employees of government-owned and -controlled corporations without original charters. employees of government-owned-or-controlled corporations with original charters. employees of provincial and local government units.

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C. D.

25. 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. B. C. D. His regular daily wage multiplied by 200% plus 30% of the 200% His regular daily wage multiplied by 200% His regular daily wage plus 200% His daily regular wage

31. Celia, an OFW that Moonshine Agency recruited and deployed, died in Syria, her place of work. Her death was not work-related, it appearing that she had been murdered. Insisting that she committed suicide, the employer and the agency took no action to ascertain the cause of death and treated the matter as a “closed case.” The worker's family sued both the employer and the agency for moral and exemplary damages. May such damages be awarded? A. B. C. D. Yes, the agency and the employer’s uncaring attitude makes them liable for such damages. Yes, but only the principal is liable for such damages since the agency had nothing to do with Celia’s death. No, since her death is not at all work-related. No, since her death is not attributable to any act of the agency or the employer.

26. The employees’ rights to organize and to bargain collectively are means of exercising the broader right to participate in policy or decision-making processes. The employees' right to participate in policy and decision making processes is available A. B. C. D. if a labor-management council exists. if a labor-management council does not exist. if a union exists and it agrees to the creation of a labormanagement council. whether or not a labor-management council exists.

32. When the employer or his representative hurls serious insult on the honor or person of the employee, the law says that the employee A. B. C. D. may leave work after at least a five-day notice to the employer. may leave work at any time and file for constructive dismissal. may leave work without giving a 30-day notice to the employer. may abandon his job at once.

27. If not used by the end of the year, the service incentive leave shall be A. B. C. D. carried over to the next year. converted to its money equivalent. forfeited. converted to cash and paid when the employee resigns or retires.

28. An employee is NOT entitled to “financial assistance” in cases of legal dismissal when the dismissal A. B. C. D. is based on an offense reflecting the depraved character of the employee. is based on serious misconduct or breach of the employer's trust. is grounded on any of the just causes provided by the Labor Code. when the employee has less than 10 years of service.

33. A sugar mill in Laguna, capitalized at P300 million, suffered a P10,000.00 loss last year. This year it dismissed three young female employees who gave birth in the last three years. In its termination report to DOLE, the sugar mill gave as reason for the dismissal “retrenchment because of losses.” Did it violate any law? A. B. C. D. Yes, the law on retrenchment, the sugar mill’s loses not being substantial. Yes, the law against violence committed on women and children. No, except the natural law that calls for the protection and support of women. No, but the management action confirms suspicion that some companies avoid hiring women because of higher costs.

29. In a work-related environment, sexual harassment is committed when A. B. C. D. the offender has authority, influence, or moral ascendancy over his subordinate victim. the victim’s continued employment is conditioned on sexual favor from her. the female victim grants the demand for sexual favor against her will. the victim is not hired because she turned down the demand for sexual favor.

34. “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. B. C. D. their workplace is away from the company's principal place of work. they fail to fill up time sheets. the product pieces they do are not countable. the piece rate formula accords with the labor department’s approved rates.

30. Government employees may elect a union as their exclusive representative but this right is not available to

35. An employer may require an employee to work on the employee's rest day

Labor Law
A. B. C. D. to avoid irreparable loss to the employer. only when there is a state of calamity. provided he is paid an extra of at least 50% of his regular rate. subject to 24-hour advance notice to the employee. C. He should file his claim exceeding P5,000.00 with the office of the labor arbiters, the regional arbitrators representing the NLRC. He should go to the Employee’s Compensation Commission.

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D.

36. The State has a policy of promoting collective bargaining and voluntary arbitration as modes of settling labor disputes. To this end, the voluntary arbitrator’s jurisdiction has not been limited to interpretation and implementation of collective bargaining agreements and company personnel policies. It may extend to “all other labor disputes,” provided A. B. C. D. the extension does not cover cases of union busting. the parties agreed to such extended jurisdiction. the parties are allowed to appeal the voluntary arbitrator's decision. the parties agreed in their CBA to broaden his jurisdiction.

40. For labor, the Constitutionally adopted policy of promoting social justice in all phases of national development means A. B. C. D. the nationalization of the tools of production. the periodic examination of laws for the common good. the humanization of laws and equalization of economic forces. the revision of laws to generate greater employment.

41. To avail himself of paternity leave with pay, when must the male employee file his application for leave? A. B. C. D. Within one week from the expected date of delivery by the wife. Not later than one week after his wife’s delivery or miscarriage Within a reasonable time from the expected deliver date of his wife. When a physician has already ascertained the date the wife will give birth.

37. Philworld, a POEA-licensed agency, recruited and deployed Mike with its principal, Delta Construction Company in Dubai for a 2-year project job. After he had worked for a year, Delta and Philworld terminated for unknown reason their agency agreement. Delta stopped paying Mike's salary. When Mike returned to the Philippines, he sued both Philworld and Delta for unpaid salary and damages. May Philworld, the agency, be held liable? A. B. No, since Philworld, the recruitment agency, is not the employer liable for unpaid wages. Yes, since the agency is equally liable with the foreign principal despite the termination of their contract between them. Yes, since the law makes the agency liable for the principal’s malicious refusal to pay Mike’s salary. No, since Mike did not get paid only after Delta and Philworld terminated their contract.

42. The constitution promotes the principle of shared responsibility between workers and employers, preferring the settlement of disputes through A. B. C. D. compulsory arbitration. collective bargaining. voluntary modes, such as conciliation and mediation. labor-management councils.

C. D.

43. Which of the following is NOT a requisite for entitlement to paternity leave? A. B. C. D. The employee is cohabiting with his wife when she gave birth or had a miscarriage. The employee is a regular or permanent employee. The wife has given birth or suffered a miscarriage. The employee is lawfully married to his wife.

38. Melissa, 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. No, as victim of physical violence of her husband, she is entitled to five days paid leave to attend to her action against him. No, the employer must grant the request but the leave will be without pay. Yes, since she is not yet a permanent employee.

B.

44. Of the four grounds mentioned below, which one has been judicially affirmed as justification for an employee’s refusal to follow an employer’s transfer order? A. B. C. A transfer to another location is not in the employee's appointment paper. The transfer deters the employee from exercising his right to self-organization. The transfer will greatly inconvenience the employee and his family. The transfer will result in additional housing and travel expenses for the employee.

C. D.

39. Quiel, a househelper in the Wilson household since 2006, resigned from his job for several reasons. One reason was the daily 12-hour workday without any rest day. When he left his job he had unpaid wages totaling P13,500.00 which his employer refused to pay. He wants to claim this amount though he is not interested in getting back his job. Where should he file his claim? A. B. He should file his claim with the DSWD, which will eventually endorse it to the right agency. Since he has no interest in reinstatement, he can file his claim with the office of the regional director of the Department of Labor.

D.

45. Of the four definitions below, which one does NOT fit the definition of “solo parent” under the Solo Parents Welfare Act? A. B. C. D. Solo parenthood while the other parent serves sentence for at least one year. A woman who gives birth as a result of rape. Solo parenthood due to death of spouse. Solo parenthood where the spouse left for abroad and fails to give support for more than a year.

Labor Law
46. Albert and four others signed employment contracts with Reign Publishers from January 1 to March 31, 2011 to help clear up encoding backlogs. By first week of April 2011, however, they remained at work. On June 30 Reign’s manager notified them that their work would end that day. Do they have valid reason to complain? A. B. No, since fixed term employment, to which they agreed, is allowed. Yes, their job was necessary and desirable to the employer’s business and, therefore, they are regular employees. Yes, when they worked beyond March without an extended fixed term employment contract, they became regular employees. No, since the 3-month extension is allowed in such employment. C. D. The employer regularly employs seven employees or less. The company is located in a special economic zone.

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51. Which of the following acts is NOT considered unfair labor practice (ULP)? A. B. C. D. Restraining employees in the exercise of the right to self-organization. Union's interference with the employee's right to selforganization. Refusal to bargain collectively with the employer. Gross violation of the collective bargaining agreement by the union.

C.

D.

47. A handicapped worker may be hired as apprentice or learner, provided A. B. C. D. he waives any claim to legal minimum wage. his work is limited to apprenticeable job suitable to a handicapped worker. he does not impede job performance in the operation for which he is hired. he does not demand regular status as an employee.

52. In computing for 13th month pay, Balagtas Company used as basis both the employee’s regular base 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. B. C. D. Yes, since 13th month pay should only be one-twelfth of the regular pay. No, since the erroneous computation has ripened into an established, nonwithdrawable practice. Yes, an error is not a deliberate decision, hence may be rectified. No, employment benefits can be withdrawn only through a CBA negotiation.

48. The Secretary of Labor and Employment or his duly authorized representative, including labor regulations officers, shall have access to employer's records and premises during work hours. Why is this statement an inaccurate statement of the law? A. B. Because the power to inspect applies only to employer records, not to the premises. Because only the Secretary of Labor and Employment has the power to inspect, and such power cannot be delegated. Because the law allows inspection anytime of the day or night, not only during work hours. Because the power to inspect is already delegated to the DOLE regional directors, not to labor regulations officers.

53. Where the petition for a certification election in an unorganized establishment is filed by a federation, it shall NOT be required to disclose the A. B. C. D. names of the local chapter's officers and members. names and addresses of the federation officers. names and number of employees that initiated the union formation in the enterprise. names of the employees that sought assistance from the federation in creating the chapter.

C. D.

49. In industrial homework, the homeworker does at his home the work that his employer requires of him, using employersupplied materials. It differs from regular factory work in the sense that A. B. C. D. the workers are not allowed to form labor organizations. the workers' pay is fixed by informal agreement between the workers and their employer. the workers are under very little supervision in the performance or method of work. the workers are simply called “homeworkers,” not “employees,” hence not covered by the social security law.

54. Under the Limited Portability law, funds from the GSIS and the SSS maybe transferred for the benefit of a worker who transfers from one system to the other. For this purpose, overlapping periods of membership shall be A. B. C. D. credited only once. credited in full. proportionately reduced. equally divided for the purpose of totalization.

55. Of the four tests below, which is the most determinative of the status of alegitimate contractor-employer? A. The contractor performs activities not directly related to the principal's main business. B. The contractor has substantial investments in tools, equipment, and other devices. C. The contractor does not merely recruit, supply, or place workers. D. The contractor has direct control over the employees’ manner and method of work performance. 56. 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.

50. Which of the following grounds exempts an enterprise from the service incentive leave law? A. B. The employees already enjoy 15 days vacation leave with pay. The employer's business has been suffering losses in the past three years.

Labor Law
Would such proposal violate the “nondiminution rule” in the Labor Code? A. B. C. D. No, but it will certainly amount to negotiating in bad faith. Yes since the rule is that benefits already granted in a CBA cannot be withdrawn or reduced. No, since the law does not prohibit a negotiated discontinuance of a CBA benefit. Yes, since such discontinuance will cancel the enjoyment of existing benefits. 60. Which of the following acts is NOT part of the regulatory and visitorial power of the Secretary of Labor and Employment over recruitment and placement agencies? The power to A. B. C. D. order arrest of an illegal recruiter inspect premises, books and records cancel license or authority to recruit garnish recruiter's bond

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61. Where there is a bargaining deadlock, who may file a notice of strike? A. B. C. D. The majority members of the bargaining unit. The recognized bargaining agent. Any legitimate labor organization in the employer’s business. The majority members of the bargaining union.

57. Night differential is differentiated from overtime pay in that A. while overtime pay is given for overtime work done during day or night, night differential is given only for work done between 10:00 p.m. and 6:00 a.m. while overtime pay is paid to an employee whether on day shift or night shift, night shift differential is only for employees regularly assigned to night work. while overtime pay is for work done beyond eight hours, night differential is added to the overtime pay if the overtime work is done between 6:00 p.m. and 12 midnight. while overtime pay is 25% additional to the employee's hourly regular wage, night differential is 10% of such hourly wage without overtime pay.

B.

C.

62. When a recruitment agency fails to deploy a recruit without valid reason and without the recruit's fault, the agency is obligated to A. B. C. D. reimburse the recruit's documentary and processing expenses. reimburse the recruit’s expenses with 6% interest. pay the recruit damages equivalent to one year’s salary. find another employer and deploy the recruit within 12 months.

D.

58. Differentiate a “labor organization” from a “legitimate labor organization.” A. While the employees themselves form a “labor organization,” a “legitimate labor organization” is formed at the initiative of a national union or federation. While the members of a “labor organization” consists only of rank and file employees, a “legitimate labor organization” consists of both supervisory and rank and file employees. While a “labor organization” exists for a lawful purpose, a “legitimate labor organization” must, in addition, be registered with the labor department. While the officers in a “labor organization” are elected in an informal way, the officers in “legitimate labor organization” are formally elected according to the union's constitution and by-laws.

63. Which of the following is an essential element of illegal recruitment? A. B. C. D. The recruiter demands and gets money from the recruit but issues no receipt. The recruiter gives the impression that he is able to send the recruit abroad. The recruiter has insufficient capital and has no fixed address. The recruiter has no authority to recruit.

B.

C.

D.

59. The negotiating panels for the CBA of X Company established a rule that only employees of the company will seat in each panel. In the next session, the management panel objected to the presence of the union counsel. Still the negotiation proceeded. At the next session, the management panel again objected to the presence of the union counsel as a non-observance of the “no outsider” rule. The negotiation nonetheless proceeded. Does the management panel's objection to the presence of the union counsel constitute unfair labor practice through bad-faith bargaining? A. Yes, the management is harping on a non-mandatory matter instead of proceeding with the mandatory subjects of bargaining. No, there is no bargaining in bad faith since the bargaining proceeded anyway. Yes, the management panel has no legal basis for limiting the composition of the union negotiating panel. No, since it is the union that violates the ground rules fashioned by the parties, it is the one negotiating in bad faith.

64. A group of 15 regular rank-and-file employees of Bay Resort formed and registered an independent union. On hearing of this, the management called the officers to check who the union members were. It turned out that the members included the probationary staff, casuals, and the employees of the landscape contractor. The management contends that inclusion of nonregulars and employees of a contractor makes the union’s composition inappropriate and its registration invalid. Is this correct? A. B. Yes, union membership should be confined to directhired employees of the company. Yes, the “community of interest” criterion should be observed not only in the composition of a bargaining unit but also in the membership of a union. Yes, a union must have community of interest; the nonregulars do not have such interest. No, union membership may include non-regulars since it differs from membership in a bargaining unit.

C. D.

B. C. D.

65. Which is NOT a guideline for the dismissal of an employee on the ground of “loss of confidence”? A. B. Loss of confidence may not be arbitrarily invoked in the face of overwhelming evidence to the contrary. Loss of confidence as cause of dismissal should be expressly embodied in written company rules.

Labor Law
C. D. The employee holds a position of trust and confidence. Loss of confidence should not be simulated nor a mere afterthought to justify earlier action taken in bad faith. 70. The Securities and Exchange Commission approved a merger that allowed Broad Bank to absorb the assets and liabilities of EBank. Broad Bank also absorbed EBank’s rankand-file employees without change in tenure, salary, and benefits. Broad Bank was unionized but EBank was not. The Broad Bank bargaining union requested the management to implement the union security clause in their CBA by requiring the ex-EBank employees to join the union. Does the union security clause in the Broad Bank CBA bind the ex-EBank employees? A. A. With the DOLE regional director for Pedring and Paul’s claims with no reinstatement; with the labor arbiter for Daniel’s claim with reinstatement. With the Office of the Regional Director of the Department of Labor for all claims to avoid multiplicity of suits. With a labor arbiter for all three complainants. With the DOLE Regional Director provided they are consolidated for expediency. B. No, since the ex-EBank employees were not yet Broad Bank employees when that CBA was entered into. No, Broad Bank’s absorption of ex-EBank employees was not a requirement of law or contract; hence, the CBA does not apply. Yes, Broad Bank’s absorption of ex-EBank employees automatically makes the latter union members of Broad Bank’s bargaining union. Yes, since the right not to join a labor union is subordinate to the policy of unionism that encourages collective representation and bargaining.

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66. Pedring, Daniel, and Paul were employees of Delibakery who resigned from their jobs but wanted to file money claims for unpaid wages and 13th month pay. Pedring’s claim totals P20,000.00, Daniel’s P3,000.00, and Paul’s P22,000.00. Daniel changed his mind and now also wants reinstatement because he resigned only upon the instigation of Pedring and Paul. Where should they file their claims?

B.

C.

C. D.

D.

67. In a scenario like typhoon Ondoy, who may be required by the employer to work overtime when necessary to prevent loss of life or property? A. B. C. D. Health personnel Employees with first aid training Security and safety personnel Any employee

71. The employer must observe both substantive and procedural due process when dismissing an employee. If procedural due process is not observed, the dismissal will be regarded as A. B. C. D. defective; the dismissal process has to be repeated. an abuse of employer's discretion, rendering the dismissal void. ineffectual; the dismissal will be held in abeyance. legal and valid but the employer will be liable for indemnity.

68. The management and Union X in Atisan Mining entered into a CBA for 1997 to 2001. After 6 months, a majority of the members of Union X formed Union Y and sought management recognition. The latter responded by not dealing with either union. But, when the CBA’s economic provisions had to be renegotiated towards the end of the term of the CBA, the management chose to negotiate with Union Y, the newer union. Thus, Union X which negotiated the existing CBA charged the company with unfair labor practice (ULP). The company argued that it committed no unfair labor practice since the supposed violation had nothing to do with economic provisions of the CBA. Is the management right? A. No. Refusal to comply with the CBA’s economic provisions is not the only ground for ULP; a disregard of the entire CBA by refusing to renegotiate with the incumbent bargaining agent is also ULP, Yes. No unfair labor practice was committed because the supposed violation has nothing to do with economic provisions of the CBA. Yes. The management commits no ULP when it decided to renegotiate with the numerically majority union. Yes. A CBA violation amounts to ULP only if the violation is “gross,” meaning flagrant or malicious refusal to comply with the CBA’s economic provisions which is not the case here.

72. Mario, an expert aircon technician, owns and manages a small aircon repair shop with little capital. He employs one fulltime and two part-time technicians. When they do repair work in homes or offices, their clients do not tell them how to do their jobs since they are experts in what they do. The shop is shabby, merely rented, and lies in a small side street. Mario and the other technicians regard themselves as informal partners. They receive no regular salary and only earn commissions from service fees that clients pay. To what categories of workers do they fall? A. B. C. D. Labor-only contractors Job contractors Pakyaw workers Manpower agency contractors

B.

C.

73. How often should the collected service charges be distributed to employees in hotels and restaurants? A. B. C. D. Every end of the month Every two weeks Every week At the end of each work day

D.

69. The apprenticeship program should be supplemented by theoretical instruction to be given by A. B. C. D. the apprentice's school only where the apprentice is formally enrolled as a student. the employer if the apprenticeship is done in the plant. the civic organizations that sponsor the program. the Department of Labor and Employment.

74. Which of the following conditions justifies a licensed employment agency to charge and collect fees for employment assistance? A. B. The recruit has submitted his credentials to the employment agency. The POEA has approved the agency's charges and fees.

Political Law
C. D. The agency's principal has interviewed the applicant for the job. The worker has obtained employment through the agency's efforts. D. Yes, the doctrine of qualified political agency renders unnecessary a further appeal to the Office of the President.

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75. During the CBA negotiation the management panel proposed a redefinition of the “rank-and-file” bargaining unit to exclude “HR Specialist” in the human resource department and “Analyst” in the research and development department. The union panel objected since those affected have already been included in the bargaining unit covered by the existing CBA and so could no longer be excluded. Is the union correct in insisting that their exclusion would amount to bad faith on the part of the management panel? A. No, efforts to modify an existing CBA do not constitute bad faith if such modification does not diminish employment benefits. Yes, the proposed exclusion amounts to management’s violation of its duty to bargain because it disregards the bargaining history between the parties. Yes, once the coverage of the bargaining unit has been contractually defined, it can no longer be redefined. No, bargaining history is not the only factor that determines the coverage of the bargaining unit; seeking its redefinition is not negotiating in bad faith.

3. Where A is set for promotion to Administrative Assistant III and B to the post of Administrative Assistant II vacated by A, the appointing authority must A. B. C. D. submit to the CSC the two promotional appointments together for approval. not appoint B until the CSC has approved A’s appointment. submit to the Civil Service Commission (CSC) the second appointment after its approval of the first. simultaneously issue the appointments of A and B.

B.

4. When a witness is granted transactional immunity in exchange for his testimony on how his immediate superior induced him to destroy public records to cover up the latter's act of malversation of public funds, the witness may NOT be prosecuted for A. B. C. D. direct contempt. infidelity in the custody of public records. falsification of public documents. false testimony.

C.

D.

POLITICAL LAW
1. Filipino citizenship may be acquired through judicial naturalization only by an alien A. born, raised, and educated in the Philippines who has all the qualifications and none of the disqualifications to become a Filipino citizen. who has all the qualifications and none of the disqualifications to become a Filipino citizen. born and raised in the Philippines who has all the qualifications and none of the disqualifications to become a Filipino citizen. whose mother or father is a naturalized Filipino and who himself is qualified to be naturalized.

5. Mario, a Bureau of Customs’ examiner, was administratively charged with grave misconduct and preventively suspended pending investigation. The head of office found him guilty as charged and ordered his dismissal. The decision against him was executed pending appeal. The Civil Service Commission (CSC) subsequently found him guilty and after considering a number of mitigating circumstances, reduced his penalty to only one month suspension. Is Mario entitled to back salaries? A. B. C. D. Yes, the reduction of the penalty means restoration of his right to back salaries. No, the penalty of one month suspension carries with it the forfeiture of back salaries. No, he is still guilty of grave misconduct, only the penalty was reduced. Yes, corresponding to the period of his suspension pending appeal less one month.

B. C.

D.

2. Jax Liner applied for a public utility bus service from Bacolod to Dumaguete from the Land Transportation Franchising and Regulatory Board (LTFRB). BB Express opposed. LTFRB ruled in favor of Jax. BB appealed to the Secretary of the Department of Transportation and Communication (DOTC), who reversed the LTFRB decision. Jax appealed to the Office of the President which reinstated the LTFRB’s ruling. BB Express went to the Court of Appeals on certiorari questioning the decision of the Office of the President on the ground that Office of the President has no jurisdiction over the case in the absence of any law providing an appeal from DOTC to the Office of the President. Will the petition prosper? A. No, exhaustion of administrative remedies up to the level of the President is a pre-requisite to judicial recourse. No, the action of the DOTC Secretary bears only the implied approval of the President who is not precluded from reviewing the decision of the former. Yes, when there is no law providing an appeal to the Office of the President, no such appeal may be pursued.

6. Althea, a Filipino citizen, bought a lot in the Philippines in 1975. Her predecessors-in-interest have been in open, continuous, exclusive and notorious possession of the lot since 1940, in the concept of owner. In 1988, Althea became a naturalized Australian citizen. Is she qualified to apply for registration of the lot in her name? A. B. Yes, provided she acquires back her Filipino citizenship. No, except when it can be proved that Australia has a counterpart domestic law that also favors former Filipino citizens residing there. Yes, the lot is already private in character and as a former natural-born Filipino, she can buy the lot and apply for its registration in her name. No, foreigners are not allowed to own lands in the Philippines.

C.

D.

B.

7. The privacy of communication and correspondence shall be inviolable except upon lawful order of the court or when A. public safety or public health requires otherwise as prescribed by law.

C.

Political Law
B. C. D. dictated by the need to maintain public peace and order. public safety or order requires otherwise as prescribed by law. public safety or order requires otherwise as determined by the President. A. B. C. D. No, only Congress can exercise the power to amend the Constitution. Yes, the people can substantially amend the Constitution by direct action. Yes, provided Congress concurs in the amendment. No, since they seek, not an amendment, but a revision.

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8. One advantage of a written Constitution is its A. B. C. D. reliability. permanence. flexibility. expediency.

14. The Comelec en banc cannot hear and decide a case at first instance EXCEPT when A. B. C. D. a Division refers the case to it for direct action. the case involves a purely administrative matter. the inhibition of all the members of a Division is sought. a related case is pending before the Supreme Court en banc.

9. An appointment held at the pleasure of the appointing power A. B. C. D. essentially temporary in nature. requires special qualifications of the appointee. requires justifiable reason for its termination. is co-extensive with the term of the public officer who appointed him.

15. Each of the Constitutional Commissions is expressly described as “independent,” exemplified by its A. B. C. D. immunity from suit. fiscal autonomy. finality of action. collegiality.

10. The city government filed a complaint for expropriation of 10 lots to build a recreational complex for the members of the homeowners' association of Sitio Sto. Tomas, the most populated residential compound in the city. The lot owners challenged the purpose of the expropriation. Does the expropriation have a valid purpose? A. B. C. D. No, because not everybody uses a recreational complex. No, because it intends to benefit a private organization. Yes, it is in accord with the general welfare clause. Yes, it serves the well-being of the local residents.

16. There is double jeopardy when the dismissal of the first case is A. B. C. D. made at the instance of the accused invoking his right to fair trial. made upon motion of the accused without objection from the prosecution. made provisionally without objection from the accused. based on the objection of the accused to the prosecution's motion to postpone trial.

11. An example of a content based restraint on free speech is a regulation prescribing A. B. C. D. maximum tolerance of pro-government demonstrations. a no rally-no permit policy. when, where, and how lawful assemblies are to be conducted. calibrated response to rallies that have become violent.

17. The new Commissioner of Immigration, Mr. Suarez, issued an Office Order directing the top immigration officials to tender courtesy resignation to give him a free hand in reorganizing the agency. In compliance, Director Sison of the Administrative Department tendered his resignation in writing which Mr. Suarez immediately accepted. Director Sison went to court, assailing the validity of his courtesy resignation and Mr. Suarez’s acceptance of the same. Will the action prosper? A. No, Director Sison tendered his resignation and it was accepted. No, estoppel precludes Director Sison from disclaiming the resignation he freely tendered. Yes,for so long as no one has yet been appointed to replace him, Director Sison may still withdraw his resignation. Yes, Director Sison merely complied with the order of the head of office; the element of clear intention to relinguish office is lacking.

12. The President forged an executive agreement with Vietnam for a year supply of animal feeds to the Philippines not to exceed 40,000 tons. The Association of Animal Feed Sellers of the Philippines questioned the executive agreement for being contrary to R.A. 462 which prohibits the importation of animal feeds from Asian countries. Is the challenge correct? A. B. Yes, the executive agreement is contrary to our existing domestic law. No, the President is the sole organ of the government in external relations and all his actions as such form part of the law of the land. No, international agreements are sui generis which must stand independently of our domestic laws. Yes, the executive agreement is actually a treaty which does not take effect without ratification by the Senate.

B. C.

D.

18. An administrative rule that fixes rates is valid only when the proposed rates are A. B. C. D. published and filed with the UP Law Center. published and hearings are conducted. published and posted in three public places. published and all stakeholders are personally notified.

C. D.

13. Jose Cruz and 20 others filed a petition with the COMELEC to hold a plebiscite on their petition for initiative to amend the Constitution by shifting to a unicameral parliamentary form of government. Assuming that the petition has been signed by the required number of registered voters, will it prosper?

19. The government sought to expropriate a parcel of land belonging to Y. The law provides that, to get immediate possession of the land, the government must deposit the equivalent of the land's zonal value. The government insisted, however, that what apply are the rules of court which require an

Political Law
initial deposit only of the assessed value of the property. Which should prevail on this matter, the law or the rules of court? A. Both law and rules apply because just compensation should be fixed based on its zonal or assessed value, whichever is higher. Both law and rules apply because just compensation should be fixed based on its zonal or assessed value, whichever is lower. The law should prevail since the right to just compensation is a substantive right that Congress has the power to define. The rules of court should prevail since just compensation is a procedural matter subject to the rule making power of the Supreme Court. Council (JBC) submitted to the President. What should the President do? A. B. C. D. Request the JBC to consider adding A to the list. Decline to appoint from the list. Appoint from the list. Return the list to JBC.

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B.

C.

25. Courts may still decide cases that have otherwise become academic when they involve A. B. C. D. the basic interest of people. petitions for habeas corpus. acts of the Chief Executive. Presidential election protests.

D.

20. After X, a rape suspect, was apprised of his right to silence and to counsel, he told the investigators that he was waiving his right to have his own counsel or to be provided one. He made his waiver in the presence of a retired Judge who was assigned to assist and explain to him the consequences of such waiver. Is the waiver valid? A. B. No, the waiver was not reduced in writing. Yes, the mere fact that the lawyer was a retired judge does not cast doubt on his competence and independence. Yes, the waiver was made voluntarily, expressly, and with assistance of counsel. No, a retired Judge is not a competent and independent counsel.

26. The right of the State to prosecute crimes by available evidence must yield to the right of A. B. C. D. the accused against self-incrimination. another State to extradite a fugitive from justice. the State to deport undesirable aliens. the complainant to drop the case against the accused.

27. A temporary appointee to a public office who becomes a civil service eligible during his tenure A. B. C. D. loses his temporary appointment without prejudice to his re-appointment as permanent. has the right to demand conversion of his appointment to permanent. automatically becomes a permanent appointee. retains his temporary appointment.

C. D.

21. Governor Paloma was administratively charged with abuse of authority before the Office of the President. Pending hearing, he ran for reelection and won a second term. He then moved to dismiss the charge against him based on this supervening event. Should the motion be granted? A. Yes, Governor Paloma's reelection is an expression of the electorate's obedience to his will. B. No, Governor Paloma's reelection cannot extinguish his liability for malfeasance in office. C. No, Governor Paloma's reelection does not render moot the administrative case already pending when he filed his certificate of candidacy for his reelection bid. D. Yes, Governor Paloma's reelection is an expression of the electorate's restored trust. 22. The decision of the Regional Trial Court on appeals pertaining to inclusions or exclusions from the list of voters A. B. C. D. is inappealable. is subject to an action for annulment. may be brought straight to the Supreme Court. is appealable to the Commission on Elections.

28. Upon endorsement from the Senate where it was first mistakenly filed, the House of Representatives Committee on Justice found the verified complaint for impeachment against the President sufficient in form but insufficient in substance. Within the same year, another impeachment suit was filed against the President who questioned the same for being violative of the Constitution. I the President correct? A. No, “initiated” means the Articles of Impeachment have been actually filed with the Senate for trial; this did not yet happen. No, the first complaint was not deemed initiated because it was originally filed with the Senate. Yes, the dismissal of the first impeachment proceeding bars the initiation of another during the same term of the President. Yes, no impeachment proceeding can be filed against the President more than once within a year.

B. C.

D.

23. The equal protection clause allows valid classification of subjects that applies A. B. C. D. only to present conditions. so long as it remains relevant to the government. for a limited period only. for as long as the problem to be corrected exists.

29. The Solicitor General declines to institute a civil action on behalf of a government agency due to his strained relation with its head, insisting that the agency’s lawyers can file the action. Is the Solicitor General correct? A. B. Yes, when he deems he cannot harmoniously and effectively work with the requesting agency. No, he must, in choosing whether to prosecute an action, exercise his discretion according to law and the best interest of the State. Yes, as in any lawyer-client relationship, he has the right to choose whom to serve and represent. No, the Solicitor General's duty to represent the government, its offices and officers is mandatory and absolute.

24. The President wants to appoint A to the vacant post of Associate Justice of the Supreme Court because of his qualifications, competence, honesty, and efficiency. But A’s name is not on the list of nominees that the Judicial and Bar

C. D.

Political Law
D. 30. A department secretary may, with the President's consent, initiate his appearance before the Senate or the House of Representatives which A. B. C. D. must seek the concurrence of the other House before acting. must hold an executive session to hear the department secretary. may altogether reject the initiative. must accept such initiated appearance. the issue of validity of law was not timely raised.

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35. Alfredo was elected municipal mayor for 3 consecutive terms. During his third term, the municipality became a city. Alfredo ran for city mayor during the next immediately succeeding election. Voltaire sought his disqualification citing the 3 term limit for elective officials. Will Voltaire's action prosper? A. B. No, the 3 term limit should not apply to a person who is running for a new position title. Yes, the 3 term limit applies regardless of any voluntary or involuntary interruption in the service of the local elective official. Yes, the 3 term limit uniformly applies to the office of mayor, whether for city or municipality. No, the 3 term limit should not apply to a local government unit that has assumed a different corporate existence.

31. The Metro Manila Development Authority (MMDA) passed a rule authorizing traffic enforcers to impound illegally parked vehicles, for the first offense, and confiscate their registration plates for the second. The MMDA issued this rule to implement a law that authorized it to suspend the licenses of drivers who violate traffic rules. Is the MMDA rule valid? A. B. C. D. No, since the MMDA does not have rule-making power. Yes, it is a valid exercise of the power of subordinate legislation. Yes, it is an implicit consequence of the law upon which it acted. No, the rule goes beyond the sphere of the law.

C. D.

36. In what scenario is an extensive search of moving vehicles without warrant valid? A. B. C. The police became suspicious on seeing something on the car’s back seat covered with blanket. The police suspected an unfenced lot covered by rocks and bushes was planted to marijuana. The police became suspicious when they saw a car believed to be of the same model used by the killers of a city mayor. The driver sped away in his car when the police flagged him down at a checkpoint.

32. Senator Bondoc was charged with murder and detained at the Quezon City Jail. He invoked, in seeking leave from the court to attend the session of the Senate, his immunity from arrest as a Senator. How should the court rule on his motion? A. Deny the motion unless the Senate issues a resolution certifying to the urgency of his attendance at its sessions. Grant the motion provided he posts bail since he is not a flight risk. Grant the motion so as not to deprive the people who elected him their right to be represented in the Senate. Deny the motion since immunity from arrest does not apply to a charge of murder.

D.

37. Pre-proclamation controversies shall be heard A. B. C. D. summarily without need of trial. through trial by commissioner. ex parte. through speedy arbitration.

B. C. D.

33. X, an administrative officer in the Department of Justice, was charged with grave misconduct and preventively suspended for 90 days pending investigation. Based on the evidence, the Secretary of Justice found X guilty as charged and dismissed him from the service. Pending appeal, X's dismissal was executed. Subsequently, the Civil Service Commission (CSC) reversed the Secretary’s decision and the reversal became final and executory. What is the effect of X's exoneration? A. X is entitled to reinstatement and back salaries both during his 90 day preventive suspension and his suspension pending appeal. X is entitled to reinstatement and back salaries corresponding only to the period of delay caused by those prosecuting the case against him. X is entitled to reinstatement but not to back salaries on ground of “damnum absque injuria.” X is entitled to reinstatement and back salaries during his suspension pending appeal.

38. When the President orders the Chief of the Philippine National Police to suspend the issuance of permits to carry firearms outside the residence, the President exercises A. B. C. D. the power of control. the Commander-in-Chief power. the power of supervision. the calling out power.

B.

C. D.

34. Courts may dismiss a case on ground of mootness when A. B. C. the case is premature. petitioner lacks legal standing. the questioned law has been repealed.

39. Carlos, a foreign national was charged with and convicted of a serious crime in State X and sentenced to life imprisonment. His country applied for relief with the International Court of Justice (ICJ), arguing that State X did not inform Carlos of his right under Article 36 of the Vienna Convention to be accorded legal assistance by his government. State X, as signatory to the Vienna Convention, agreed to ICJ's compulsory jurisdiction over all disputes regarding the interpretation or application of the Vienna Convention. ICJ ruled that State X violated its obligation to provide consular notification to the foreign national's country. ICJ also required State X to review and reconsider the life sentence imposed on the foreign national. State X then wrote the United Nations informing that it was withdrawing from the Optional Protocol on Vienna Convention and was not bound by the ICJ decision. What principle of international law did State X violate? A. Pacta Sunt Servanda

Political Law
B. C. D. Act of State Doctrine Protective Principle Jus Cogens B. C. D. Yes, because Maria’s position does not fall within the prohibition. No, because her mother is not the designating authority. No, because Maria is related to the supervising authority within the prohibited degree of consanguinity.

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40. An informer told the police that a Toyota Car with plate ABC 134 would deliver an unspecified quantity of ecstacy in Forbes Park, Makati City. The officers whom the police sent to watch the Forbes Park gates saw the described car and flagged it down. When the driver stopped and lowered his window, an officer saw a gun tucked on the driver's waist. The officer asked the driver to step out and he did. When an officer looked inside the car, he saw many tablets strewn on the driver's seat. The driver admitted they were ecstacy. Is the search valid? A. B. C. D. No, the rule on warrantless search of moving vehicle does not allow arbitrariness on the part of the police. Yes, the police officers had the duty to verify the truth of the information they got and pursue it to the end. Yes, the police acted based on reliable information and the fact that an officer saw the driver carrying a gun. No, police officers do not have unbridled discretion to conduct a warrantless search of moving vehicles.

45. The President's appointment of an acting secretary although Congress is in session is A. B. C. D. voidable. valid. invalid. unenforceable.

46. Congress passed a bill appropriating P50 million in assistance to locally based television stations subject to the condition that the amount would be available only in places where commercial national television stations do not operate. The President approved the appropriation but vetoed the condition. Was the veto valid? A. B. C. D. Yes, since the vetoed condition may be separated from the item. Yes, the President's veto power is absolute. No, since the veto amounted to a suppression of the freedom to communicate through television. No, since the approval of the item carried with it the approval of the condition attached to it.

41. The Commission on Elections is an independent body tasked to enforce all laws relative to the conduct of elections. Hence, it may A. B. C. D. conduct two kinds of electoral count: a slow but official count; and a quick but unofficial count. make an advance and unofficial canvass of election returns through electronic transmission. undertake a separate and unofficial tabulation of the results of the election manually. authorize the citizens arm to use election returns for unofficial count.

47. In the exercise of its power of legislative inquiries and oversight functions, the House of Representatives or the Senate may only ask questions A. B. C. D. that the official called is willing to answer. that are relevant to the proposed legislation. to which the witness gave his prior consent. material to the subject of inquiry.

42.The President may proclaim martial law over a particular province subject to revocation or extension A. B. C. D. by Congress,subject to ratification by the Supreme Court. by the Supreme Court. by Congress alone by Congress, upon recommendation of the respective Sangguniang Panlalawigan.

43. During his incumbency, President Carlos shot to death one of his advisers during a heated argument over a game of golf that they were playing. The deceased adviser’s family filed a case of homicide against President Carlos before the city prosecutor’s office. He moved to dismiss the case, invoking presidential immunity from suit. Should the case be dismissed? A. B. A. E. Yes, his immunity covers his interactions with his official family, including the deceased adviser. No, his immunity covers only work-related crimes. C. Yes, his immunity holds for the whole duration of his tenure. No, his immunity does not cover crimes involving moral turpitude.

48. An ordinance prohibits “notorious street gang members” from loitering in public places. The police are to disperse them or, if they refuse, place them under arrest. The ordinance enumerates which police officers can make arrest and defines street gangs, membership in them, and public areas. The ordinance was challenged for being vague regarding the meaning of “notorious street gang members.” Is the ordinance valid? A. B. C. D. No, it leaves the public uncertain as to what conduct it prohibits. No, since it discriminates between loitering in public places and loitering in private places. Yes, it provides fair warning to gang members prior to arrest regarding their unlawful conduct. Yes, it is sufficiently clear for the public to know what acts it prohibits.

49. The people may approve or reject a proposal to allow foreign investors to own lands in the Philippines through an electoral process called A. B. C. D. referendum. plebiscite. initiative. certification.

44. The School Principal of Ramon Magsaysay High School designated Maria, her daughter, as public school teacher in her school. The designation was assailed on ground of nepotism. Is such designation valid? A. No, because the law prohibits relatives from working within the same government unit.

Political Law
50. Where a candidate for the Senate stated in his certificate of candidacy that he is single, when he is very much married, though separated, his certificate of candidacy A. B. C. D. may be canceled. will subject him to a quo warranto action. remains valid. may be denied due course. D. Yes, any conflict between the law and the Constitution relative to COMELEC's jurisdiction must be resolved in favor of the Constitution.

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56. When the Supreme Court nullified the decisions of the military tribunal for lack of jurisdiction, it excluded from their coverage decisions of acquittal where the defendants were deemed to have acquired a vested right. In so doing, the Supreme Court applied A. B. C. D. the operative fact doctrine. the rule against double jeopardy. the doctrine of supervening event. the orthodox doctrine.

51. A candidate who commits vote buying on Election Day itself shall be prosecuted by the A. B. C. D. COMELEC. Secretary of Justice. police and other law enforcement agencies. City or Provincial Prosecutor.

52. A law authorized the Secretary of Agriculture to require the quarantine of animals that suffer from dangerous communicable diseases at such place and for such time he deems necessary to prevent their spread. The Secretary of Agriculture issued a regulation, imposing a penalty of imprisonment for 10 days on persons transporting quarantined animals without his permission. The regulation is A. B. C. D. a valid exercise of the power of subordinate legislation. invalid for being ultra vires. a valid exercise of police power. invalid for being discriminatory.

57. Accused X pleaded not guilty to the charge of homicide against him. Since he was admitted to bail, they sent him notices to attend the hearings of his case. But he did not show up, despite notice, in four successive hearings without offering any justification. The prosecution moved to present evidence in absentia but the court denied the motion on the ground that the accused has a right to be present at his trial. Is the court correct? A. No, the court is mandated to hold trial in absentia when the accused had been arraigned, had notice, and his absence was unjustified. Yes, it remains discretionary on the court whether to conduct trial in absentia even if the accused had been arraigned and had notice and did not justify his absence. Yes, it is within the court's discretion to determine how many postponements it will grant the accused before trying him in absentia. No, the court may reject trial in absentia only on grounds of fraud, accident, mistake, or excusable negligence.

B.

53. Small-scale utilization of natural resources by Filipino citizens may be allowed by A. B. A. C. Congress. either the Senate or the House of Representatives. the President. the President with the consent of Congress.

C.

D.

54. When the Civil Service Commission (CSC) approves the appointment of the Executive Director of the Land Transportation Franchising and Regulatory Board who possesses all the prescribed qualifications, the CSC performs A. B. C. D. a discretionary duty. a mix discretionary and ministerial duty. a ministerial duty. a rule-making duty.

58. Following COMELEC Chairman Bocay's conviction for acts of corruption in the impeachment proceedings, he was indicted for plunder before the Sandiganbayan and found guilty, as charged. Can he get Presidential pardon on the plunder case? A. B. No, plunder is not a pardonable offense. No, conviction in a criminal case for the same acts charged in the impeachment proceedings is not pardonable. Yes, convictions in two different fora for the same acts, are too harsh that they are not beyond the reach of the President’s pardoning power. Yes, conviction in court in a criminal action is subject to the President's pardoning power.

C. 55. Xian and Yani ran for Congressman in the same district. During the canvassing, Yani objected to several returns which he said were tampered with. The board of canvassers did not entertain Yani's objections for lack of authority to do so. Yani questions the law prohibiting the filing of pre-proclamation cases involving the election of Congressmen since the Constitution grants COMELEC jurisdiction over all pre-proclamation cases, without distinction. Is Yani correct? A. B. Yes, the Constitution grants jurisdiction to COMELEC on all pre-proclamation cases, without exception. No, COMELEC’s jurisdiction over pre-proclamation cases pertains only to elections for regional, provincial, and city officials. No, COMELEC’s jurisdiction over pre-proclamation cases does not include those that must be brought directly to the courts.

D.

59. A private person constituted by the court as custodian of property attached to secure a debt sought to be recovered in a civil proceeding is A. B. C. D. a private sheriff. a public officer. a private warehouseman. an agent of the party to whom the property will ultimately be awarded.

C.

60. The COMELEC en banc shall decide a motion for reconsideration of A. the House or Representatives and the Senate electoral tribunals.

Political Law
B. C. D. the decision of the election registrar. the decision of the COMELEC division involving an election protest. its own decision involving an election protest. B. C. D. 61. Adela served as Mayor of Kasim for 2 consecutive terms. On her third term, COMELEC ousted her in an election protest that Gudi, her opponent, filed against her. Two years later, Gudi faced recall proceedings and Adela ran in the recall election against him. Adela won and served as Mayor for Gudi's remaining term. Can Adela run again for Mayor in the next succeeding election without violating the 3 term limit? A. No, she won the regular mayoralty election for two consecutive terms and the recall election constitutes her third term. A. No, she already won the mayoralty election for 3 consecutive terms. Yes, her ouster from office in her third term interrupted the continuity of her service as mayor. Yes, the fresh mandate given her during the recall election erased her disqualification for a third term. Congress increases the budget proposal of the President. the President does not release the countryside development funds to members of Congress. Congress expands the appellate jurisdiction of the Supreme Court, as defined by the Constitution.

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67. The price of staple goods like rice may be regulated for the protection of the consuming public through the exercise of A. B. C. D. power of subordinate legislation. emergency power. police power. residual power.

B. C. D.

68. Associate Justice A retires from the Supreme Court 90 days before the forthcoming Presidential election. May the incumbent President still appoint Justice A's successor? A. B. C. No, it will violate the Constitutional prohibition against midnight appointments. Yes, vacancies in the Supreme Court should be filled within 90 days from occurrence of the vacancy. Yes, vacancies in the Supreme Court should be filled within 90 days from submission of JBC nominees to the President. No, the incumbent President must yield to the choice of the next President

62. A child born in the United States to a Filipino mother and an American father is A. B. C. D. a Filipino citizen by election. a repatriated Filipino citizen. a dual citizen. a natural born Filipino citizen.

D.

69. The President may set a limit on the country's import quota in the exercise of his A. B. C. D. delegated power. concurring power. residual power. inherent power.

63. Involuntary servitude may be required as A. B. C. D. part of rehabilitation of one duly charged with a crime. substitute penalty for one who has been duly tried for a crime. punishment for a crime where one has been duly convicted. condition precedent to one's valid arraignment.

64. Van sought to disqualify Manresa as congresswoman of the third district of Manila on the ground that the latter is a greencard holder. By the time the case was decided against Manresa, she had already served her full term as congresswoman. What was Manresa's status during her incumbency as congresswoman? A. B. C. D. She was a de jure officer, having been duly elected. She was not a public officer because she had no valid existing public office. She was a de jure officer since she completed her term before she was disqualified. She was a de facto officer since she was elected, served, and her disqualification only came later.

70. Amor sued for annulment of a deed of sale of Lot 1. While the case was ongoing, Baltazar, an interested buyer, got a Certification from Atty. Crispin, the Clerk of Court, that Lot 1 was not involved in any pending case before the court. Acting on the certification, the Register of Deeds canceled the notice of lis pendens annotated on Lot 1’s title. Amor filed a damage suit against Atty. Crispin but the latter invoked good faith and immunity from suit for acts relating to his official duty, claiming he was not yet the Clerk of Court when Amor filed his action. Decide. A. B. C. D. Atty. Crispin is immune from suit since he enjoys the presumption of regularity of performance of public duty. Atty. Crispin's defense is invalid since he issued his certification recklessly without checking the facts. Atty. Crispin's defense is valid since he was unaware of the pendency of the case. As Clerk of Court, Atty. Crispin enjoys absolute immunity from suit for acts relating to his work.

65. Whose appointment is NOT subject to confirmation by the Commission on Appointments? A. B. C. D. Chairman of the Civil Service Commission Chief Justice of the Supreme Court Chief of Staff of the Armed Forces of the Philippines Executive Secretary

66. The system of checks and balances operates when A. the President nullifies a conviction in a criminal case by pardoning the offender.

71. The Housing and Land Use Regulatory Board (HLURB) found Atlantic Homes, Inc. liable in damages arising from its delayed release of the title to the house and lot that it sold to Josephine. Atlantic appealed to the Office of the President which rendered a one page decision, affirming the attached HLURB judgment. Atlantic challenges the validity of the decision of the Office of the President for not stating the facts and the law on which it is based. Is the challenge correct? A. No, the Office of the President is governed by its own rules respecting review of cases appealed to it.

Political Law
B. Yes, the decision of the Office of the President must contain its own crafted factual findings and legal conclusions. Yes, administrative due process demands that the Office of the President make findings and conclusions independent of its subordinate. No, the Office of the President is not precluded from adopting the factual findings and legal conclusions contained in the HLURB decision.

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C.

A. B. C. D.

corporations wholly owned and managed by Filipinos. corporations 60% owned by Filipinos. corporations wholly owned by Filipinos. corporations 60% owned and managed by Filipinos.

D.

77. Procedural due process in administrative proceedings A. B. C. D. requires the tribunal to consider the evidence presented. allows the losing party to file a motion for reconsideration. requires hearing the parties on oral argument. permits the parties to file memoranda.

72. A collision occurred involving a passenger jeepney driven by Leonardo, a cargo truck driven by Joseph, and a dump truck driven by Lauro but owned by the City of Cebu. Lauro was on his way to get a load of sand for the repair of the road along Fuente Street, Cebu City. As a result of the collision, 3 passengers of the jeepney died. Their families filed a complaint for damages against Joseph who in turn filed a third party complaint against the City of Cebu and Lauro. Is the City of Cebu liable for the tort committed by its employee? A. The City of Cebu is not liable because its employee was engaged in the discharge of a governmental function. The City of Cebu is liable for the tort committed by its employee while in the discharge of a nongovernmental function. The City of Cebu is liable in accord with the precept of respondeat superior. The City of Cebu is not liable as a consequence of its non-suitability.

78. The Constitution prohibits cruel and inhuman punishments which involve A. B. C. D. torture or lingering suffering. primitive and gross penalties. unusual penal methods. degrading and queer penalties.

B.

C. D.

73. During promulgation of sentence, the presence of the accused is mandatory but he may appear by counsel or representative when A. B. C. D. he is charged with a light offense. he was able to cross-examine the prosecution’s witnesses. he waives his right to be present. he is convicted of a bailable offense.

79. Judge Lloyd was charged with serious misconduct before the Supreme Court. The Court found him guilty and ordered him dismissed. Believing that the decision was not immediately executory, he decided a case that had been submitted for resolution. The decision became final and executory. But the losing party filed a certiorari action with the Court of Appeals seeking to annul the writ of execution issued in the case and bar Judge Lloyd from further acting as judge. Can the relief against Judge Lloyd be granted? A. B. No, Judge Lloyd's right to stay as judge may be challenged only by direct proceeding, not collaterally. Yes, the action against Judge Lloyd may be consolidated with the case before the Court of Appeals and decided by it. Yes, Judge Lloyd 's right to stay as judge may be challenged as a necessary incident of the certiorari action. No, the losing party has no standing to challenge Judge Lloyd's right to stay as judge.

C.

74. An information for murder was filed against X. After examining the case records forwarded to him by the prosecution, the trial judge granted bail to X based on the prosecution's manifestation that it was not objecting to the grant of bail. Is the trial judge correct? A. Yes, the trial judge may evaluate the strength or weakness of the evidence based on the case records forwarded to him. No, the trial judge should have held a hearing to ascertain the quality of the evidence of guilt that the prosecution had against X. No, the trial judge should have conducted a hearing to ascertain first whether or not X was validly arrested. Yes, the trial judge may reasonably rely on the prosecution's manifestation that he had no objection to the grant of bail.

D.

B.

80. Executive Secretary Chua issued an order prohibiting the holding of rallies along Mendiola because it hampers the traffic flow to Malacanang. A group of militants questioned the order for being unconstitutional and filed a case against Secretary Chua to restrain him from enforcing the order. Secretary Chua raised state immunity from suit claiming that the state cannot be sued without its consent. Is the claim correct? A. B. C. D. No, public officers may be sued to restrain him from enforcing an act claimed to be unconstitutional. Yes, the order was not a proprietary act of the government. No, only the president may raise the defense of immunity from suit. Yes, Secretary Chua cannot be sued for acts done in pursuance to his public office.

C. D.

75. The President CANNOT call out the military A. B. C. D. to enforce customs laws. to secure shopping malls against terrorists. to arrest persons committing rebellion. to raid a suspected haven of lawless elements.

76. Mass media in the Philippines may be owned and managed by

81. Anton was the duly elected Mayor of Tunawi in the local elections of 2004. He got 51% of all the votes cast. Fourteen months later, Victoria, who also ran for mayor, filed with the Local Election Registrar, a petition for recall against Anton. The COMELEC approved the petition and set a date for its signing by other qualified voters in order to garner at least 25% of the total number of registered voters or total number of those who

Political Law
actually voted during the local election in 2005, whichever is lower. Anton attacked the COMELEC resolution for being invalid. Do you agree with Anton? A. No, the petition, though initiated by just one person, may be ratified by at least 25% of the total number of registered voters. No, the petition, though initiated by just one person may be ratified by at least 25% of those who actually voted during the 2004 local elections. Yes, the petition should be initiated by at least 25% of the total number of registered voters who actually voted during the 2004 local elections. Yes, the petition should be initiated by at least 25% of the total number of registered voters of Tunawi.

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A. B. C. D.

eminent domain power. zoning power. police power. taxing power.

B.

87. In the valid exercise of management prerogative consistent with the company's right to protect its economic interest, it may prohibit its employees From A. B. C. D. joining rallies during their work shift. marrying employees of competitor companies. publicly converging with patrons of competitor companies. patronizing the product of competitor companies.

C.

D.

82. Using the description of the supplier of shabu given by persons who had been arrested earlier for selling it, the police conducted a surveillance of the area indicated. When they saw a man who fitted the description walking from the apartment to his car, they approached and frisked him and he did not object. The search yielded an unlicensed gun tucked on his waist and shabu in his car. Is the search valid? A. No, the man did not manifest any suspicious behavior that would give the police sufficient reason to search him. Yes, the police acted on reliable information which proved correct when they searched the man and his car. Yes, the man should be deemed to have waived his right to challenge the search when he failed to object to the frisking. No, reliable information alone, absent any proof beyond reasonable doubt that the man was actually committing an offense, will not validate the search.

88. The President issued an executive order directing all department heads to secure his consent before agreeing to appear during question hour before Congress on matters pertaining to their departments. Is the executive order unconstitutional for suppressing information of public concern? A. No, because those department heads are his alter egos and he is but exercising his right against selfincrimination. Yes, the President cannot control the initiative of the department heads to conform with the oversight function of Congress. Yes, the President cannot withhold consent to the initiative of his department heads as it will violate the principle of check and balance. No, the President has the power to withhold consent to appearance by his department heads during question hour.

B.

B.

C.

C.

D.

D.

83. A law interfering with the rights of the person meets the requirements of substantive due process when A. B. C. D. the means employed is not against public policy. it is in accord with the prescribed manner of enforcement as to time, place, and person. all affected parties are given the chance to be heard. the interest of the general public, as distinguished from those of a particular case, requires such interference.

89. When the President contracted a personal loan during his incumbency, he may be sued for sum of money A. B. C. D. during his term of office. during his tenure of office. after his term of office. after his tenure of office.

84. A judge of the Regional Trial Court derives his powers and duties from A. B. C. D. statute. the President, the appointing power. Supreme Court issuances. the rules of court.

90. The Senate Blue Ribbon Committee summoned X, a former department secretary, to shed light on his alleged illicit acquisition of properties claimed by the Presidential Commission on Good Government. X sought to restrain the Committee from proceeding with its investigation because of a pending criminal case against him before the Sandiganbayan for ill-gotten wealth involving the same properties. Decide. The investigation may A. B. C. D. not be restrained on ground of separation of powers. be restrained on ground of prejudicial question. not be restrained on ground of presumed validity of legislative action. be restrained for being subjudice.

85. When an elective official's preventive suspension will result in depriving his constituents of his services or representation, the court may A. B. C. D. require the investigating body to expedite the investigation. hold in abeyance the period of such suspension. direct the holding of an election to fill up the temporary vacancy. shorten the period of such suspension.

91. A government that actually exercises power and control as opposed to the true and lawful government is in terms of legitimacy A. B. C. D. a government of force. an interim government. a de facto government. an illegitimate government.

86. When the State requires private cemeteries to reserve 10% of their lots for burial of the poor, it exercises its

Taxation
92. The Special Committee on Naturalization is headed by A. B. C. D. the Secretary of Justice. the Secretary of Foreign Affairs. the National Security Adviser. the Solicitor General. C. No, X's appointment, although in the government, is not in the Executive Department that the President heads. No, the position to which X was appointed is not among those prohibited under the Constitution.

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D.

93. The President issued Proclamation 9517 declaring a state of emergency and calling the armed forces to immediately carry out necessary measures to suppress terrorism and lawless violence. In the same proclamation, he directed the government's temporary takeover of the operations of all privately owned communication utilities, prescribing reasonable terms for the takeover. Is the takeover valid? A. B. C. D. Yes, it is an implied power flowing from the President's exercise of emergency power. No, it is a power reserved for Congress alone. Yes, subject to ratification by Congress. No, it is a power exclusively reserved for the People's direct action.

98. May an incumbent Justice of the Supreme Court be disbarred as a lawyer? A. B. C. D. No, it will amount to removal. No, his membership in the bar is secure. Yes, by the Supreme Court itself. Yes, by Congress in joint session.

99. Mayor Lucia of Casidsid filed her certificate of candidacy for congresswoman of the district covering Casidsid. Still, she continued to act as mayor of Casidsid without collecting her salaries as such. When she lost the election and a new mayor assumed office, she filed an action to collect the salaries she did not get while serving as mayor even when she ran for congresswoman. Is her action correct? A. B. C. D. No, salaries can be waived and she waived them. No, because her acts as de facto officer are void insofar as she is concerned. Yes, public policy demands that a de facto officer enjoy the same rights of a de jure officer. A. Yes, it is but just that she be paid for the service she rendered.

94. A candidate for Senator must be at least 35 years old on A. B. C. D. the day he is duly proclaimed. the day the election is held. the day he files his certificate of candidacy. the day he takes his oath of office.

95. The Office of the Special Prosecutor may file an information against a public officer for graft A. B. C. D. on its own initiative subject to withdrawal of the information by the Ombudsman. independently of the Ombudsman, except in plunder cases. only when authorized by the Ombudsman. independently of the Ombudsman.

100. X, a Filipino and Y, an American, both teach at the International Institute in Manila. The institute gave X a salary rate of P1,000 per hour and Y, P1,250 per hour plus housing, transportation, shipping costs, and leave travel allowance. The school cited the dislocation factor and limited tenure of Y to justify his high salary rate and additional benefits. The same package was given to the other foreign teachers. The Filipino teachers assailed such differential treatment, claiming it is discriminatory and violates the equal protection clause. Decide. A. B. C. D. The classification is based on superficial differences. The classification undermines the “Filipino First” policy. The distinction is fair considering the burden of teaching abroad. The distinction is substantial and uniformly applied to each class.

96. Since the Constitution is silent as to who can appoint the Chairman of the Commission on Human Rights, the President appointed W to that position without submitting his appointment to the Commission on Appointments for confirmation. Is W’s appointment by the President valid? A. No, since the position of Chairman of the Commission was created by statute, the appointment of its holder requires the consent of Congress. Yes, since the power to appoint in the government, if not lodged elsewhere, belongs to the President as Chief Executive. Yes, since the power to fill up all government positions mentioned in the Constitution has been lodged in the President. No, because absent any express authority under the Constitution, the power to appoint does not exist.

B.

TAXATION
1. A municipality may levy an annual ad valorem tax on real property such as land, building, machinery, and other improvement only if A. B. C. D. the real property is within the Metropolitan Manila Area. the real property is located in the municipality. the DILG authorizes it to do so. the power is delegated to it by the province.

C.

D.

97. The Chief Justice appointed X, the President’s sister, as Assistant Court Administrator in the Supreme Court during the President's tenure. Claiming that the Constitution prohibits the appointment in government of a President’s relative, a taxpayer asks for its nullification. Will the challenge prosper? A. B. Yes, since the appointment essentially violates the law against nepotism. Yes, because relatives of the President within the fourth civil degree cannot be appointed as heads of offices in any department of government.

2. Anne Lapada, a student activist, wants to impugn the validity of a tax on text messages. Aside from claiming that the law adversely affects her since she sends messages by text, what may she allege that would strengthen her claim to the right to file a taxpayer’s suit? A. That she is entitled to the return of the taxes collected from her in case the court nullifies the tax measure.

Taxation
B. That tax money is being extracted and spent in violation of the constitutionally guaranteed right to freedom of communication. That she is filing the case in behalf of a substantial number of taxpayers. That text messages are an important part of the lives of the people she represents. 2011. The parcel of land has a zonal valuation of P420,000.00. What is the most efficient mode of donating the property? A. The spouses should first donate in 2011 a portion of the property valued at P20,000.00 then spread the P400,000.00 equally for 2012, 2013, 2014 and 2015. Spread the donation over a period of 5 years by the spouses donating P100,000.00 each year from 2011 to 2015. The spouses should each donate a P110,000.00 portion of the value of the property in 2011 then each should donate P100,000.00 in 2012. The spouses should each donate a P100,000.00 portion of the value of the property in 2011, and another P100,000.00 each in 2012. Then, in 2013, Helena should donate the remaining P20,000.00.

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C. D.

B.

3. There is no taxable income until such income is recognized. Taxable income is recognized when the A. B. C. D. taxpayer fails to include the income in his income tax return. income has been actually received in money or its equivalent. income has been received, either actually or constructively. transaction that is the source of the income is consummated.

C.

D.

4. Keyrand, Inc., a Philippine corporation, sold through the local stock exchange 10,000 PLDT shares that it bought 2 years ago. Keyrand sold the shares for P2 million and realized a net gain of P200,000.00. How shall it pay tax on the transaction? A. It shall declare a P2 million gross income in its income tax return, deducting its cost of acquisition as an expense. It shall report the P200,000.00 in its corporate income tax return adjusted by the holding period. It shall pay 5% tax on the first P100,000.00 of the P200,000.00 and 10% tax on the remaining P100,000.00. It shall pay a tax of one-half of 1% of the P2 million gross sales.

8. Mia, a compensation income earner, filed her income tax return for the taxable year 2007 on March 30, 2008. On May 20, 2011, Mia received an assessment notice and letter of demand covering the taxable year 2007 but the postmark on the envelope shows April 10, 2011. Her return is not a false and fraudulent return. Can Mia raise the defense of prescription? A. No. The 3 year prescriptive period started to run on April 15, 2008, hence, it has not yet expired on April 10, 2011. Yes. The 3 year prescriptive period started to run on April 15, 2008, hence, it had already expired by May 20, 2011. No. The prescriptive period started to run on March 30, 2008, hence, the 3 year period expired on April 10, 2011. Yes. Since the 3-year prescriptive period started to run on March 30, 2008, it already expired by May 20, 2011.

B.

B. C.

C.

D.

D.

5. Amaretto, Inc., imported 100 cases of Marula wine from South Africa. The shipment was assessed duties and valueadded taxes of P300,000 which Amaretto, Inc. immediately paid. The Bureau of Customs did not, however, issue the release papers of the shipment yet since the Food and Drug Administration (FDA) needed to test the suitability of the wine for human consumption. Is the Bureau of Customs at fault for refusing to release the shipment just as yet? A. B. Yes, because the importation was already terminated as a result of the payment of the taxes due. Yes, the Bureau of Customs is estopped from holding the release of the shipment after receiving the payment. No, if the amount paid as duties and value-added taxes due on the importation was insufficient. No, because the Bureau of Customs has not yer issued the legal permit for withdrawal pending the FDA's findings.

9. Double taxation in its general sense means taxing the same subject twice during the same taxing period. In this sense, double taxation A. B. C. D. violates substantive due process. does not violate substantive due process. violates the right to equal protection. does not violate the right to equal protection.

10. The payor of passive income subject to final tax is required to withhold the tax from the payment due the recipient. The withholding of the tax has the effect of A. B. C. D. a final settlement of the tax liability on the income. a credit from the recipient's income tax liability. consummating the transaction resulting in an income. a deduction in the recipient's income tax return.

C. D.

6. Which theory in taxation states that without taxes, a government would be paralyzed for lack of power to activate and operate it, resulting in its destruction? A. B. C. D. Power to destroy theory Lifeblood theory Sumptuary theory Symbiotic doctrine

11. Guidant Resources Corporation, a corporation registered in Norway, has a 50 MW electric power plant in San Jose, Batangas. Aside from Guidant's income from its power plant, which among the following is considered as part of its income from sources within the Philippines? A. B. Gains from the sale to an Ilocos Norte power plant of generators bought from the United States. Interests earned on its dollar deposits in a Philippine bank under the Expanded Foreign Currency Deposit System. Dividends from a two-year old Norwegian subsidiary with operations in Zambia but derives 60% of its gross income from the Philippines.

7. The spouses Helena and Federico wanted to donate a parcel of land to their son Dondon who is getting married in December,

C.

Taxation
D. Royalties from the use in Brazil of generator sets designed in the Philippines by its engineers. D. No, because the taxpayer is not shown to be a publicly-listed corporation, a bank, or an insurance company.

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12. Tong Siok, a Chinese billionaire and a Canadian resident, died and left assets in China valued at P80 billion and in the Philippines assets valued at P20 billion. For Philippine estate tax purposes the allowable deductions for expenses, losses, indebtedness, and taxes, property previously taxed, transfers for public use, and the share of his surviving spouse in their conjugal partnership amounted to P15 billion. Tong's gross estate for Philippine estate tax purposes is A. B. C. D. P20 billion. P5 billion. P100 billion. P85 billion.

16. The actual effort exerted by the government to effect the exaction of what is due from the taxpayer is known as A. B. C. D. assessment. levy. payment. collection.

17. Although the power of taxation is basically legislative in character, it is NOT the function of Congress to A. B. C. D. fix with certainty the amount of taxes. collect the tax levied under the law. identify who should collect the tax. determine who should be subject to the tax.

13. Anktryd, Inc., bought a parcel of land in 2009 for P7 million as part of its inventory of real properties. In 2010, it sold the land for P12 million which was its zonal valuation. In the same year, it incurred a loss of P6 million for selling another parcel of land in its inventory. These were the only transactions it had in its real estate business. Which of the following is the applicable tax treatment? A. B. C. D. Anktryd shall be subject to a tax of 6% of P12 million. Anktryd could deduct its P6 million loss from its P5 million gain. Anktryd's gain of P5 million shall be subject to the holding period. Anktryd's P6 million loss could not be deducted from its P5 million gain.

18. Passive income includes income derived from an activity in which the earner does not have any substantial participation. This type of income is A. B. C. D. usually subject to a final tax. exempt from income taxation. taxable only if earned by a citizen. included in the income tax return.

14. Aplets Corporation is registered under the laws of the Virgin Islands. It has extensive operations in Southeast Asia. In the Philippines, Its products are imported and sold at a mark-up by its exclusive distributor, Kim's Trading, Inc. The BIR compiled a record of all the imports of Kim from Aplets and imposed a tax on Aplets net income derived from its exports to Kim. Is the BIR correct? A. B. C. D. Yes. Aplets is a non-resident foreign corporation engaged in trade or business in the Philippines. No. The tax should have been computed on the basis of gross revenues and not net income. No. Aplets is a non-resident foreign corporation not engaged in trade or business in the Philippines. Yes. Aplets is doing business in the Philippines through its exclusive distributor Kim's Trading. Inc.

19. In 2010, Juliet Ulbod earned P500,000.00 as income from her beauty parlor and received P250,000.00 as Christmas gift from her spinster aunt. She had no other receipts for the year. She spent P150,000.00 for the operation of her beauty parlor. For tax purposes, her gross income for 2010 is A. B. C. D. P750,000.00. P500,000.00. P350,000.00. P600,000.00.

20. Exempted from donor’s taxation are gifts made A. B. C. D. for the use of the barangay. in consideration of marriage. to a school which is a stock corporation. to a for-profit government corporation.

21. Federico, a Filipino citizen, migrated to the United States some six years ago and got a permanent resident status or green card. He should pay his Philippine income taxes on A. B. the gains derived from the sale in California, U.S.A. of jewelry he purchased in the Philippines. the proceeds he received from a Philippine insurance company as the sole beneficiary of life insurance taken by his father who died recently. the gains derived from the sale in the New York Stock Exchange of shares of stock in PLDT, a Philippine corporation. dividends received from a two year old foreign corporation whose gross income was derived solely from Philippine sources.

15. In 2009, Spratz, Inc.’s net profit before tax was P35 million while its operating expenses was P31 million. In 2010, its net profit before tax was P40 million and its operating expenses was P38 million. It did not declare dividends for 2009 and 2010. And it has no proposed capital expenditures for 2011 and the immediate future. May Spratz be subject to the improperly accumulated tax on its retained profits for 2009 and 2010? A. Yes, since the accumulated amounts are reasonable for operations in relation to what it usually needed annually. Yes, since the accumulation is not reasonably necessary for the immediate needs of the business. No, because there is no showing that the taxpayer's 2009 and 2010 net profit before tax exceeded its paidup capital.

C.

D.

B. C.

22. An example of a tax where the concept of progressivity finds application is the A. B. income tax on individuals. excise tax on petroleum products.

Taxation
C. D. value-added tax on certain articles. amusement tax on boxing exhibitions. D. Yes, since he had already acquired a vested right in the favorable BIR ruling.

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23. A corporation may change its taxable year to calendar or fiscal year in filing its annual income tax return, provided A. B. C. D. it seeks prior BIR approval of its proposed change in accounting period. it simultaneously seeks BIR approval of its new accounting period. it should change its accounting period two years prior to changing its taxable year. its constitution and by-laws authorizes the change.

28. Don Fortunato, a widower, died in May, 2011. In his will, he left his estate of P100 million to his four children. He named his compadre, Don Epitacio, to be the administrator of the estate. When the BIR sent a demand letter to Don Epitacio for the payment of the estate tax, he refused to pay claiming that he did not benefit from the estate, he not being an heir. Forthwith, he resigned as administrator. As a result of the resignation, who may be held liable for the payment of the estate tax? A. B. C. D. Don Epitacio since the tax became due prior to his resignation. The eldest child who would be reimbursed by the others. All the four children, the tax to be divided equally among them. The person designated by the will as the one liable.

24. What is the rule on the taxability of income that a government educational institution derives from its school operations? Such income is A. B. C. D. subject to 10% tax on its net taxable income as if it is a proprietary educational institution. Exempt from income taxation if it is actually, directly, and exclusively used for educational purposes. subject to the ordinary income tax rates with respect to incomes derived from educational activities. Exempt from income taxation in the same manner as government-owned and controlled corporations.

29. On July 31, 2011, Esperanza received a preliminary assessment notice from the BIR demanding that she pays P180,000.00 deficiency income taxes on her 2009 income. How many days from July 31, 2011 should Esperanza respond to the notice? A. B. C. D. 180 days. 30 days. 60 days. 15 days.

25. Which among the following reduces the gross estate (not the net estate) of a citizen of the Philippines for purposes of estate taxation? A. B. C. D. Transfers for public use Property previously taxed Standard deduction of P1 million Capital of the surviving spouse

30. The BIR could not avail itself of the remedy of levy and distraint to implement, through collection, an assessment that has become final, executory, and demandable where A. B. C. D. the subject of the assessment is an income tax. the amount of the tax involved does not exceed P100.00. the corporate taxpayer has no other uncollected tax liability. the taxpayer is an individual compensation income earner.

26. Ka Pedring Matibag, a sole proprietor, buys and sells “kumot at kulambo” both of which are subject to value-added tax. Since he is using the calendar year as his taxable year, his taxable quarters end on the last day of March, June, September, and December. When should Ka Pedring file the VAT quarterly return for his gross sales or receipts for the period of June 1 to September 30? A. B. C. D. Within 25 days from September 30 Within 45 days from September 30 Within 15 days from September 30 Within 30 days from September 30

31. Alain Descartes, a French citizen permanently residing in the Philippines, received several items during the taxable year. Which among the following is NOT subject to Philippine income taxation? A. Consultancy fees received for designing a computer program and installing the same in the Shanghai facility of a Chinese firm. Interests from his deposits in a local bank of foreign currency earned abroad converted to Philippine pesos. Dividends received from an American corporation which derived 60% of its annual gross receipts from Philippine sources for the past 7 years. Gains derived from the sale of his condominium unit located in The Fort, Taguig City to another resident alien.

27. In January 2011, the BIR issued a ruling that Clemen's vodka imports were not subject to increased excise tax based on his claim that his net retail price was only P200 per 750 milliliter bottle. This ruling was applied to his imports for May, June, and July 2011. In September 2011, the BIR revoked its ruling and assessed him for deficiency taxes respecting his May, June and July 2011 vodka imports because it discovered that his net retail price for the vodka was P250 per bottle from January to September 2011. Does the retroactive application of the revocation violate Clemen's right to due process as a taxpayer? A. B. C. Yes, since the presumption is that the BIR ascertained the facts before it made its ruling. No, because he acted in bad faith when he claimed a lower net retail price than what he actually used. No, since he could avail of remedies available for disputing the assessment.

B. C.

D.

32. Income is considered realized for tax purposes when A. B. C. it is recognized as revenue under accounting standards even if the law does not do so. the taxpayer retires from the business without approval from the BIR. the taxpayer has been paid and has received in cash or near cash the taxable income.

Taxation
D. the earning process is complete or virtually complete and an exchange has taken place. B. C. D. sixty days from the appointment of an administrator. six months from the time he died on July 31, 2011. sixty days from the time he died on July 31, 2011.

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33. Which among the following circumstances negates the prima facie presumption of correctness of a BIR assessment? A. B. C. D. The BIR assessment was seasonably protested within 30 days from receipt. No preliminary assessment notice was issued prior to the assessment notice. Proof that the assessment is utterly without foundation, arbitrary, and capricious. The BIR did not include a formal letter of demand to pay the alleged deficiency.

38. Income from dealings in property (real, personal, or mixed) is the gain or loss derived A. B. C. D. only from the cash sales of property. from cash and gratuitous receipts of property. from sale and lease of property. only from the sale of property.

34. On March 30, 2005 Miguel Foods, Inc. received a notice of assessment and a letter of demand on its April 15, 2002 final adjustment return from the BIR. Miguel Foods then filed a request for reinvestigation together with the requisite supporting documents on April 25, 2005. On June 2, 2005, the BIR issued a final assessment reducing the amount of the tax demanded. Since Miguel Foods was satisfied with the reduction, it did not do anything anymore. On April 15, 2010 the BIR garnished the corporation's bank deposits to answer for the tax liability. Was the BIR action proper? A. B. C. D. Yes. The BIR has 5 years from the filing of the protest within which to collect. Yes. The BIR has 5 years from the issuance of the final assessment within which to collect. No. The taxpayer did not apply for a compromise. No. Without the taxpayer’s prior authority, the BIR action violated the Bank Deposit Secrecy Law.

39. In March 2009, Tonette, who is fond of jewelries, bought a diamond ring for P750,000.00, a bracelet for P250,000.00, a necklace for P500,000.00, and a brooch for P500,000.00. Tonette derives income from the exercise of her profession as a licensed CPA. In October 2009, Tonette sold her diamond ring, bracelet, and necklace for only P1.25 million incurring a loss of P250,000.00. She used the P1.25 million to buy a solo diamond ring in November 2009 which she sold for P1.5 million in September 2010. Tonette had no other transaction in jewelry in 2010. Which among the following describes the tax implications arising from the above transactions? A. B. C. D. Tonette may deduct his 2009 loss only from her 2009 professional income. Tonette may carry over and deduct her 2009 loss only from her 2010 gain. Tonette may carry over and deduct her 2009 loss from her 2010 professional income as well as from her gain. Tonette may not deduct her 2009 loss from both her 2010 professional income and her gain.

35. Which among the following taxpayers is required to use only the calendar year for tax purposes? A. Partnership exclusively for the design of government infrastructure projects considered as practice of civil engineering. Joint-stock company formed for the purpose of undertaking construction projects. Business partnership engaged in energy operations under a service contract with the government. Joint account (cuentas en participacion) engaged in the trading of mineral ores.

B. C. D.

40. Anion, Inc. received a notice of assessment and a letter from the BIR demanding the payment of P3 million pesos in deficiency income taxes for the taxable year 2008. The financial statements of the company show that it has been suffering financial reverses from the year 2009 up to the present. Its asset position shows that it could pay only P500,000.00 which it offered as a compromise to the BIR. Which among the following may the BIR require to enable it to enter into a compromise with Anion, Inc.? A. B. C. D. Anion must show it has faithfully paid taxes before 2009. Anion must promise to pay its deficiency when financially able. Anion must waive its right to the secrecy of its bank deposits. Anion must immediately deposit the P500,000.00 with the BIR.

36. Spanflex Int’l Inc. received a notice of assessment from the BIR. It seasonably filed a protest with all the necessary supporting documents but the BIR failed to act on the protest. Thirty days from the lapse of 180 days from the filing of its protest, Spanflex still has not elevated the matter to the CTA. What remedy, if any, can Spanflex take? A. It may file a motion to admit appeal if it could prove that its failure to appeal was due to the negligence of counsel. It may no longer appeal since there is no BIR decision from which it could appeal. It may wait for the final decision of the BIR on his protest and appeal it to the CTA within 30 days from receipt of such decision. None. Its right to appeal to the CTA has prescribed.

41. Real property owned by the national government is exempt from real property taxation unless the national government A. B. C. D. transfers it for the use of a local government unit. leases the real property to a business establishment. gratuitously allows its use for educational purposes by a school established for profit. sells the property to a government-owned non-profit corporation.

B. C.

D.

37. Gerardo died on July 31, 2011. His estate tax return should be filed within A. six months from filing of the notice of death.

42. Dondon and Helena were legally separated. They had six minor children, all qualified to be claimed as additional exemptions for income tax purposes. The court awarded custody of two of the children to Dondon and three to Helena, with Dondon directed to provide full financial support for them as well. The court awarded the 6th child to Dondon's father with

Taxation
Dondon also providing full financial support. Assuming that only Dondon is gainfully employed while Helena is not, for how many children could Dondon claim additional exemptions when he files his income tax return? A. B. C. D. Six children. Five children. Three children. Two children. 48. Zygomite Minerals, Inc., a corporation registered and holding office in Australia, not operating in the Philippines, may be subject to Philippine income taxation on A. gains it derived from sale in Australia of an ore crusher it bought from the Philippines with the proceeds converted to pesos. gains it derived from sale in Australia of shares of stock of Philex Mining Corporation, a Philippine corporation. dividends earned from investment in a foreign corporation that derived 40% of its gross income from Philippine sources. interests derived from its dollar deposits in a Philippine bank under the Expanded Foreign Currency Deposit System.

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B. C.

43. Political campaign contributions are NOT deductible from gross income D. A. B. C. D. if they are not reported to the Commission on Elections. if the candidate supported wins the election because of possible corruption. since they do not help earn the income from which they are to be deducted. since such amounts are not considered as income of the candidate to whom given.

49. As a general rule, within what period must a taxpayer elevate to the Court of Tax Appeals a denial of his application for refund of income tax overpayment? A. B. C. D. Within 30 days from receipt of the Commissioner’s denial of his application for refund. Within 30 days from receipt of the denial which must not exceed 2 years from payment of income tax. Within 2 years from payment of the income taxes sought to be refunded. Within 30 days from receipt of the denial or within two years from payment.

44. When a BIR decision affirming an assessment is appealed to the CTA, the BIR's power to garnish the taxpayer's bank deposits A. B. C. D. is suspended to await the finality of such decision. is suspended given that the CTA can reverse BIR decisions when prejudicial to the taxpayer. is not suspended because only final decisions of the BIR are subject to appeal. is not suspended since the continued existence of government depends on tax revenues.

50. After the province has constructed a barangay road, the Sangguniang Panglalawigan may impose a special levy upon the lands specifically benefitted by the road up to an amount not to exceed A. B. C. 60% of the actual cost of the road without giving any portion to the barangay. 100% of the actual project cost without giving any portion to the barangay. 100% of the actual project cost, keeping 60% for the province and giving 40% to the barangay. 60% of the actual cost, dividing the same between the province and the barangay.

45. Real property taxes should not disregard increases in the value of real property occurring over a long period of time. To do otherwise would violate the canon of a sound tax system referred to as A. B. C. D. theoretical justice. fiscal adequacy. administrative feasibility. symbiotic relationship.

D.

46. The power to tax is the power to destroy. Is this always so? A. B. No. The Executive Branch may decide not to enforce a tax law which it believes to be confiscatory. Yes. The tax collectors should enforce a tax law even if it results to the destruction of the property rights of a taxpayer. Yes. Tax laws should always be enforced because without taxes the very existence of the State is endangered. No. The Supreme Court may nullify a tax law, hence, property rights are not affected.

51. Celia donated P110,000.00 to her friend Victoria who was getting married. Celia gave no other gift during the calendar year. What is the donor's tax implication on Celia’s donation? A. B. C. D. The P100,000.00 portion of the donation is exempt since given in consideration of marriage. A P10,000.00 portion of the donation is exempt being a donation in consideration of marriage. Celia shall pay a 30% donor's tax on the P110,000.00 donation. The P100,000.00 portion of the donation is exempt under the rate schedule for donor's tax.

C.

D.

47. Jeopardy assessment is a valid ground to compromise a tax liability A. B. C. D. involving deficiency income taxes only, but not for other taxes. because of doubt as to the validity of the assessment. if the compromise amount does not exceed 10% of the basic tax. only when there is an approval of the National Evaluation Board.

52. Levox Corporation wanted to donate P5 million as prize money for the world professional billiard championship to be held in the Philippines. Since the Billiard Sports Confederation of the Philippines does not recognize the event, it was held under the auspices of the International Professional Billiards Association, Inc. Is Levox subject to the donor's tax on its donation? A. B. No, so long as the donated money goes directly to the winners and not through the association. Yes, since the national sports association for billiards does not sanction the event.

Taxation
C. D. No, because it is donated as prize for an international competition under the billiards association. Yes, but only that part that exceeds the first P100,000.00 of total Levox donations for the calendar year.

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58. The proceeds received under a life insurance endowment contract is NOT considered part of gross income A. B. C. D. if it is so stated in the life insurance endowment policy. if the price for the endowment policy was not fully paid. where payment is made as a result of the death of the insured. where the beneficiary was not the one who took out the endowment contract.

53. A violation of the tariff and customs laws is the failure to A. B. C. D. pay the customs duties and taxes and to comply with the rules on customs procedures. pay the customs duties and taxes or to comply with the rules on customs procedures. pay the customs duties and taxes. comply with the rules on customs procedures.

59. The excess of allowable deductions over gross income of the business in a taxable year is known as A. B. C. D. net operating loss. ordinary loss. net deductible loss. NOLCO.

54. What is the effect on the tax liability of a taxpayer who does not protest an assessment for deficiency taxes? A. The taxpayer may appeal his liability to the CTA since the assessment is a final decision of the Commissioner on the matter. The BIR could already enforce the collection of the taxpayer's liability if it could secure authority from the CTA. The taxpayer's liability becomes fixed and subject to collection as the assessment becomes final and collectible. The taxpayer's liability remains suspended for 180 days from the expiration of the period to protest.

60. No action shall be taken by the BIR on the taxpayer’s disputed issues until the taxpayer has paid the deficiency taxes A. B. C. D. when the assessment was issued against a false and fraudulent return. if there was a failure to pay the deficiency tax within 60 days from BIR demand. if the Regional Trial Court issues a writ of preliminary injunction to enjoin the BIR. attributable to the undisputed issues in the assessment notice.

B.

C.

D.

55. A non-stock, non-profit school always had cash flow problems, resulting in failure to recruit well-trained administrative personnel to effectively manage the school. In 2010, Don Leon donated P100 million pesos to the school, provided the money shall be used solely for paying the salaries, wages, and benefits of administrative personnel. The donation represents less than 10% of Don Leon's taxable income for the year. Is he subject to donor's taxes? A. B. C. D. No, since the donation is actually, directly, and exclusively used for educational purposes. Yes, because the donation is to be wholly used for administration purposes. Yes, since he did not obtain the requisite NGO certification before he made the donation. No, because the donation does not exceed 10% of his taxable income for 2010.

61. Is an article previously exported from the Philippines subject to the payment of customs duties? A. B. C. D. Yes, because all articles that are imported from any foreign country are subject to duty. No, because there is no basis for imposing duties on articles previously exported from the Philippines. Yes, because exemptions are strictly construed against the importer who is the taxpayer. No, if it is covered by a certificate of identification and has not been improved in value.

56. What is the tax base for the imposition by the province of professional taxes? A. B. C. D. That which Congress determined. The pertinent provision of the local Government Code. The reasonable classification made by the provincial sanggunian. That which the Dept. of Interior and Local Government determined.

62. Prior to the enactment of the Local Government Code, consumer's cooperatives registered under the Cooperative Development Act enjoyed exemption from all taxes imposed by a local government. With the Local Government Code’s withdrawal of exemptions, could these cooperatives continue to enjoy such exemption? A. Yes, because the Local Government Code, a general law, could not amend a special law such as the Cooperative Development Act. No, Congress has not by the majority vote of all its members granted exemption to consumers' cooperatives. No, the exemption has been withdrawn to level the playing field for all taxpayers and preserve the LGUs' financial position. Yes, their exemption is specifically mentioned among those not withdrawn by the Local Government Code.

B.

C.

57. There is prima facie evidence of a false or fraudulent return where the A. B. C. D. tax return was amended after a notice of assessment was issued. tax return was filed beyond the reglementary period. taxpayer changed his address without notifying the BIR. deductions claimed exceed by 30% the actual deductions.

D.

63. Under the Tariff and Customs Code, abandoned imported articles becomes the property of the A. B. C. government whatever be the circumstances. insurance company that covered the shipment. shipping company in case the freight was not paid.

Taxation
D. bank if the shipment is covered by a letter of credit. C. Subsequent adjustment in tax computation and the application of the excess payment to future real property tax liabilities. Pass a new ordinance providing for the refund of real property taxes that have been erroneously or illegally collected.

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64. Ka Tato owns a parcel of land in San Jose, Batangas declared for real property taxation, as agricultural. In 1990, he used the land for a poultry feed processing plant but continued to declare the property as agricultural. In March 2011, the local tax assessor discovered Ka Tato’s change of use of his land and informed the local treasurer who demanded payment of deficiency real property taxes from 1990 to 2011. Has the action prescribed? A. B. No, the deficiency taxes may be collected within five years from when they fell due. No. The deficiency taxes for the period 1990 up to 2011 may still be collected within 10 years from March 2011. Yes. More than 10 years had lapsed for the period 1990 up to 2000, hence the right to collect the deficiency taxes has prescribed. Yes. More than 5 years had lapsed for the collection of the deficiency taxes for the period 1990 up to 2005.

D.

68. What should the BIR do when the prescriptive period for the assessment of a tax deficiency is about to prescribe but the taxpayer has not yet complied with the BIR requirements for the production of books of accounts and other records to substantiate the claimed deductions, exemptions or credits? A. B. C. D. Call the taxpayer to a conference to explain the delay. Immediately conduct an investigation of the taxpayer's activities. Issue a jeopardy assessment coupled with a letter of demand. Issue a notice of constructive distraint to protect government interest.

C.

D.

65. Pierre de Savigny, a Frenchman, arrived in the Philippines on January 1, 2010 and continued to live and engage in business in the Philippines. He went on a tour of Southeast Asia from August 1 to November 5, 2010. He returned to the Philippines on November 6, 2010 and stayed until April 15, 2011 when he returned to France. He earned during his stay in the Philippines a gross income of P3 million from his investments in the country. For the year 2010, Pierre’s taxable status is that of A. B. C. D. a non-resident alien not engaged in trade or business in the Philippines. a non-resident alien engaged in trade or business in the Philippines. a resident alien not engaged in trade or business in the Philippines. a resident alien engaged in trade or business in the Philippines.

69. Money collected from taxation shall not be paid to any religious dignitary EXCEPT when A. B. C. D. the religious dignitary is assigned to the Philippine Army. it is paid by a local government unit. the payment is passed in audit by the COA. it is part of a lawmaker’s pork barrel.

70. Discriminatory duties may NOT be imposed upon articles A. B. C. D. wholly manufactured in the discriminating country but carried by vessels of another country. not manufactured in the discriminating country but carried by vessels of such country. partly manufactured in the discriminating country but carried by vessels of another country. not manufactured in the discriminating country and carried by vessels of another country.

66. Lualhati Educational Foundation, Inc., a stock educational institution organized for profit, decided to lease for commercial use a 1,500 sq. m. portion of its school. The school actually, directly, and exclusively used the rents for the maintenance of its school buildings, including payment of janitorial services. Is the leased portion subject to real property tax? A. B. C. D. Yes, since Lualhati is a stock and for profit educational institution. No, since the school actually, directly, and exclusively used the rents for educational purposes. No, but it may be subject to income taxation on the rents it receives. Yes, since the leased portion is not actually, directly, and exclusively used for educational purposes.

71. The taxpayer seasonably filed his protest together with all the supporting documents. It is already July 31, 2011, or 180 days from submission of the protest but the BIR Commissioner has not yet decided his protest. Desirous of an early resolution of his protested assessment, the taxpayer should file his appeal to the Court of Tax Appeals not later than A. B. C. D. August 31, 2011. August 30, 2011. August 15, 2011. August 1, 2011.

72. Which of the following are NOT usually imposed when there is a tax amnesty? A. B. C. D. Civil, criminal, and administrative penalties Civil and criminal penalties Civil and administrative penalties Criminal and administrative penalties

67. Apparently the law does not provide for the refund of real property taxes that have been collected as a result of an erroneous or illegal assessment by the provincial or city assessor. What should be done in such instance to avoid an injustice? A. B. Question the legality of the no-refund rule before the Supreme Court. Enact a new ordinance amending the erroneous or illegal assessment to correct the error.

73. Which among the following concepts of taxation is the basis for the situs of income taxation? A. B. C. D. Lifeblood doctrine of taxation Symbiotic relation in taxation Compensatory purpose of taxation Sumptuary purpose of taxation

Civil Law
became insolvent and defaulted in his obligation. What is the effect of the new debtor’s default upon the original debtor? A. B. C. D. The original debtor is freed of liability since novation took place and this relieved him of his obligation. The original debtor shall pay or perform the obligation with recourse to the new debtor. The original debtor remains liable since he gave no consent to the substitution. The original debtor shall pay or perform 50% of the obligation to avoid unjust enrichment on his part.

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74. In “Operation Kandado,” the BIR temporarily closed business establishments, including New Dynasty Corporation that failed to comply with VAT regulations. New Dynasty contends that it should not be temporarily closed since it has a valid and existing VAT registration, it faithfully issued VAT receipts, and filed the proper VAT returns. The contention may be rejected if the BIR investigation reveals that A. B. C. D. the taxpayer has not been regularly filing its income tax returns for the past 4 years. the taxpayer deliberately filed a false and fraudulent return with deliberate intention to evade taxes. the taxpayer used falsified documents to support its application for refund of taxes. there was an understatement of taxable sales or receipts by 30% or more for the taxable quarter.

75. The head priest of the religious sect Tres Personas Solo Dios, as the corporation sole, rented out a 5,000 sq. m. lot registered in its name for use as school site of a school organized for profit. The sect used the rentals for the support and upkeep of its priests. The rented lot is A. B. C. D. not exempt from real property taxes because the user is organized for profit. exempt from real property taxes since it is actually, directly, and exclusively used for religious purposes. not exempt from real property taxes since it is the rents, not the land, that is used for religious purposes. exempt from real property taxes since it is actually, directly, and exclusively used for educational purposes.

5. Lennie bought a business class ticket from Alta Airlines. As she checked in, the manager downgraded her to economy on the ground that a Congressman had to be accommodated in the business class. Lennie suffered the discomfort and embarrassment of the downgrade. She sued the airlines for quasi-delict but Alta Airlines countered that, since her travel was governed by a contract between them, no quasi-delict could arise. Is the airline correct? A. No, the breach of contract may in fact be tortious as when it is tainted as in this case with arbitrariness, gross bad faith, and malice. No, denying Lennie the comfort and amenities of the business class as provided in the ticket is a tortious act. Yes, since the facts show a breach of contract, not a quasi-delict. Yes, since quasi-delict presupposes the absence of a pre-existing contractual relation between the parties.

B.

C. D.

CIVIL LAW
1. When does a declaration of absence of a missing person take effect? A. Immediately from the issuance of the declaration of absence. B. 3 months after the publication of the declaration of absence. C. 6 months after the publication of the declaration of absence. D. 15 days from the issuance of the declaration of absence. 2. The authority that school administrators exercise over school children under their supervision, instruction, or custody is called A. B. C. D. legal parental authority. substitute parental authority. ordinary parental authority. special parental authority.

6. Which of the following is an indispensable requirement in an action for “quieting of title” involving real property? The plaintiff must A. B. C. D. be in actual possession of the property. be the registered owner of the property. have legal or equitable title to the property. be the beneficial owner of the property.

7. X and Y were to marry in 3 months. Meantime, to express his affection, X donated a house and lot to Y, which donation X wrote in a letter to Y. Y wrote back, accepting the donation and took possession of the property. Before the wedding, however, Y suddenly died of heart attack. Can Y’s heirs get the property? A. B. C. D. No, since the marriage did not take place. Yes, since all the requisites of a donation of an immovable are present. No, since the donation and its acceptance are not in a public instrument. Yes, since X freely donated the property to Y who became its owner.

3. Can future inheritance be the subject of a contract of sale? A. B. C. D. No, since it will put the predecessor at the risk of harm from a tempted buyer, contrary to public policy. Yes, since the death of the decedent is certain to occur. No, since the seller owns no inheritance while his predecessor lives. Yes, but on the condition that the amount of the inheritance can only be ascertained after the obligations of the estate have been paid.

8. Rene and Lily got married after a brief courtship. After one month, Lily discovered that while Rene presented himself as a macho man he was actually gay. He would not go to bed with her. He kept obscene magazines of nude men and always sought the company of handsome boys. What legal remedy does Lily have? A. B. C. She can file an action for annulment of marriage on ground of fraud. She can seek a declaration of nullity of the marriage based on Rene’s psychological incapacity. She can go abroad and file for divorce in a country that can grant it.

4. Upon the proposal of a third person, a new debtor substituted the original debtor without the latter’s consent. The creditor accepted the substitution. Later, however, the new debtor

Civil Law
D. She has none since she had the opportunity to examine the goods and freely entered into the marriage. D. No, since Manuel already served the penalty for his crime.

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9. Lucio executed a simple deed of donation of P50 million on time deposit with a bank in favor of A, B, C, D, and E, without indicating the share of each donee. All the donees accepted the donation in writing. A, one of the donees, died. Will B, C, D, and E get A’s share in the money? A. B. C. D. Yes, accretion will automatically apply to the jointdonees in equal shares. Yes, since the donor’s intention is to give the whole of P50 million to the joint-donees in equal shares. No, A”s share will revert to the donor because accretion applies only if the joint-donees are spouses. No, A’s share goes to his heirs since the donation did not provide for reversion to donor.

14. Arthur and Helen, both Filipinos, got married and had 2 children. Arthur later worked in Rome where he acquired Italian citizenship. He got a divorce from Helen in Rome but, on returning to the Philippines, he realized his mistake, asked forgiveness of his wife, and resumed living with her. They had 2 more children. What is the status of their 4 children? A. The children born before the divorce are legitimate but those born after it are not since Arthur got the divorce when he had ceased to be a Filipino. The divorce rendered illegitimate the children born before it since the marriage that begot them had been nullified. The children born before and after the divorce are all legitimate since Philippine law does not recognize divorce. All the children are legitimate since they were born of the same father and mother.

B.

C.

10. Raul, Ester, and Rufus inherited a 10-hectare land from their father. Before the land could be partitioned, however, Raul sold his hereditary right to Raffy, a stranger to the family, for P5 million. Do Ester and Rufus have a remedy for keeping the land within their family? A. Yes, they may be subrogated to Raffy’s right by reimbursing to him within the required time what he paid Raul. Yes, they may be subrogated to Raffy’s right provided they buy him out before he registers the sale. No, they can be subrogated to Raffy’s right only with his conformity. No, since there was no impediment to Raul selling his inheritance to a stranger.

D.

15. Who can make a donation? A. B. C. D. All persons who can enter into contracts and dispose of their property. All persons who are of legal age and suffer from no civil interdiction. All persons who can make a last will and testament. All persons, whether natural or artificial, who own property.

B. C. D.

16. The liability of the partners, including industrial partners for partnership contracts entered into in its name and for its account, when all partnership assets have been exhausted is A. B. C. D. Pro-rata. Joint. Solidary. Voluntary.

11. When one exercises a right recognized by law, knowing that he thereby causes an injustice to another, the latter is entitled to recover damages. This is known as the principle of A. B. C. D. res ipsa loquitur. damnum absque injuria. vicarious liability. abuse of rights.

17. When can a missing person who left someone to administer his property be declared an absentee by the court? When he has been missing for A. B. C. D. 2 years from the receipt of the last news about him. 7 years from the receipt of the last news about him. 10 years from the receipt of the last news about him. 5 years from the receipt of the last news about him.

12. Which of the following is NOT a basis for rendering a disinheritance defective or imperfect? A. B. C. D. Its cause comes from the guilt of a spouse in a legal separation case, the innocent-spouse having died. The truth of its cause is denied and not sufficiently proved by evidence. Its cause is not authorized by the law. Its cause is not specified.

18. Which of the following claims against the debtor enjoys preference over the others with respect to his specific immovable property and real rights? A. B. C. D. Unpaid price of real property sold, upon the immovable property. Mortgage credits recorded in the registry of property, upon the mortgaged real estate. Taxes due, upon the land or building. Expenses for the preservation and improvement of property, when the law authorizes reimbursement, upon the preserved or improved immovable.

13. Manuel came to Manila and married Marianne. Unknown to Marianne, Manuel had been previously convicted in Palawan of theft and served time for it. After Marianne learned of his previous conviction, she stopped living with him. Can Marianne seek the annulment of the marriage based on Manuel’s nondisclosure of his previous crime? A. B. C. No, since the assumption is that marriage forgives all past wrongs. Yes, since the non-disclosure of that crime is the equivalent of fraud, which is a ground for annulment. No, in case of doubt, the law must be construed to preserve the institution of marriage.

19. When bilateral contracts are vitiated with vices of consent, they are rendered A. B. rescissible. void.

Civil Law
C. D. unenforceable. voidable. procedure will they follow in disposing of their assets? A. 20. An agent, authorized by a special power of attorney to sell a land belonging to the principal succeeded in selling the same to a buyer according to the instructions given the agent. The agent executed the deed of absolute sale on behalf of his principal two days after the principal died, an event that neither the agent nor the buyer knew at the time of the sale. What is the standing of the sale? A. B. C. D. Voidable. Valid. Void. Unenforceable. They will follow the rule governing the liquidation of a conjugal partnership of gains where the party who acted in bad faith forfeits his share in the net profits. Since the marriage has been declared void, the rule for liquidation of absolute community of property shall be followed. The liquidation of a co-ownership applies since the annulment brought their property relation under the chapter on property regimes without marriage. The law on liquidation of partnerships applies.

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B.

C.

D.

21. Spouses A and B leased a piece of land belonging to B's parents for 25 years. The spouses built their house on it worth P300,000.00. Subsequently, in a case that C filed against A and B, the court found the latter liable to C for P200,000.00. When the sheriff was attaching their house for the satisfaction of the judgment, A and B claimed that it was exempt from execution, being a family home. Is this claim correct? A. Yes, because while B’s parents own the land, they agreed to have their daughter build her family home on it. No, because there is no judicial declaration that it is a family home. No, since the land does not belong to A and B, it cannot qualify as a family home. Yes, because the A and B’s family actually lives in that house.

25. X and Y agreed verbally before their marriage (a) on the paternity of the illegitimate child of Y and (b) on the economic regime that will govern X and Y’s property relations. Is the verbal agreement valid? A. B. C. D. No, because a marriage settlement to be valid should be in writing. Yes, since ante-nuptial agreements need not be in writing. No, because a marriage settlement cannot include an agreement on the paternity of an illegitimate child. Yes, since even if it is not a valid marriage settlement, it is a valid verbal contract.

B. C. D.

26. Spouses X and Y have a minor daughter, Z, who needs support for her education. Both X and Y, who are financially distressed, could not give the needed support to Z. As it happens, Z’s other relatives are financially capable of giving that support. From whom may Z first rightfully demand support? From her A. B. C. D. grandfather. brother. uncle. first cousin.

22. Solomon sold his coconut plantation to Aragon, Inc. for P100 million, payable in installments of P10 million per month with 6% interest per annum. Solomon married Lorna after 5 months and they chose conjugal partnership of gains to govern their property relations. When they married, Aragon had an unpaid balance of P50 million plus interest in Solomon’s favor. To whom will Aragon’s monthly payments go after the marriage? A. B. C. The principal shall go to the conjugal partnership but the interests to Solomon. Both principal and interests shall go to Solomon since they are his exclusive properties. Both principal and interests shall go to the conjugal partnership since these become due after the marriage. The principal shall go to Solomon but the interests to the conjugal partnership.

27. Fidel, a Filipino with fair complexion, married Gloria. Before the marriage, Gloria confessed to Fidel that she was two-month pregnant with the child of a black African who had left the country for good. When the child was born, Fidel could not accept it being too black in complexion. What is the status of the child? A. B. C. D. Illegitimate, because Gloria confessed that the child is not Fidel’s. Illegitimate, because by the color of its skin, the child could not possibly be that of Fidel. Legitimate, because the child was born within a valid marriage. Legitimate, because Fidel agreed to treat the child as his own after Gloria told him who the father was.

D.

23. X and Y, although not suffering from any impediment, cohabited as husband and wife without the benefit of marriage. Following the birth of their child, the couple got married. A year after, however, the court annulled the marriage and issued a decree of annulment. What is the present status of the child? A. B. C. D. Legitimated. Illegitimate. Natural child. Legitimate.

28. The husband’s acts of forcibly ejecting his wife without just cause from the conjugal dwelling and refusing to take her back constitutes A. B. C. D. desertion. recrimination. constructive abandonment. de facto separation.

24. When A and B married, they chose conjugal partnership of gains to govern their property relations. After 3 years, B succeeded in getting her marriage to A annulled on ground of the latter’s psychological incapacity. What liquidation

29. In his will, the testator designated X as a legatee to receive P2 million for the purpose of buying an ambulance that the residents of his Barangay can use. What kind of institution is this?

Civil Law
35. Lino entered into a contract to sell with Ramon, undertaking to convey to the latter one of the five lots he owns, without specifying which lot it was, for the price of P1 million. Later, the parties could not agree which of five lots he owned Lino undertook to sell to Ramon. What is the standing of the contract? A. B. C. D. Unenforceable. Voidable. Rescissible. Void.

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A. B. C. D.

a fideicomissary institution. a modal institution. a conditional institution. a collective institution.

30. X insured himself for P5 million, designating Y, his wife, as his sole beneficiary. The designation was irrevocable. A few years later, X had their marriage annulled in court on the ground that Y had an existing prior marriage. X subsequently died, Is Y entitled to the insurance benefits? A. B. C. Yes, since the insurance was not dependent on the marriage. Yes, since her designation as beneficiary was irrevocable. No, X’s designation of Y is revoked by operation of law upon the annulment of their marriage based on Y’s fault. Yes, since without judicial revocation, X’s designation of Y remains valid and binding.

36. 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 was 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? A. B. 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 engine without prior demand. No, because Y waived the warranty against hidden defects.

D.

31. May a spouse freely donate communal or conjugal property without the consent of the other? A. B. C. D. Absolutely not, since the spouses co-own such property. Yes, for properties that the family may spare, regardless of value. Yes, provided the donation is moderate and intended for charity or family rejoicing. Yes, in a donation mortis causa that the donor may still revoke in his lifetime.

C. D.

37. Acme Cannery produced sardines in cans known as “Sards.” Mylene bought a can of Sards from a store, ate it, and suffered from poisoning caused by a noxious substance found in the sardines. Mylene filed a case for damages against Acme. Which of the following defenses will hold? A. B. C. D. The expiry date of the “Sards” was clearly printed on its can, still the store sold and Mylene bought it. Mylene must have detected the noxious substance in the sardines by smell, yet she still ate it. Acme had no transaction with Mylene; she bought the “Sards” from a store, not directly from Acme. Acme enjoys the presumption of safeness of its canning procedure and Mylene has not overcome such presumption.

32. The decedent died intestate leaving an estate of P10 million. He left the following heirs: a) Marlon, a legitimate child and b) Cecilia, the legal spouse. Divide the estate. A. B. C. D. Marlon gets 1/4 and Cecilia gets 3/4. Marlon gets 2/3 and Cecilia 1/3. Marlon gets 1/2 and Cecilia gets 1/2. Marlon gets 3/4 and Cecilia 1/4.

33. Contracts take effect only between the parties or their assigns and heirs, except where the rights and obligations arising from the contract are not transmissible by their nature, by stipulation, or by provision of law. In the latter case, the assigns or the heirs are not bound by the contracts. This is known as the principle of A. B. C. D. Relativity of contracts. Freedom to stipulate. Mutuality of contracts. Obligatory force of contracts.

38. Fernando executed a will, prohibiting his wife Marina from remarrying after his death, at the pain of the legacy of P100 Million in her favor becoming a nullity. But a year after Fernando’s death, Marina was so overwhelmed with love that she married another man. Is she entitled to the legacy, the amount of which is well within the capacity of the disposable free portion of Fernando’s estate? A. B. Yes, since the prohibition against remarrying is absolute, it is deemed not written. Yes, because the prohibition is inhuman and oppressive and violates Marina’s rights as a free woman. No, because the nullity of the prohibition also nullifies the legacy. No, since such prohibition is authorized by law and is not repressive; she could remarry but must give up the money.

34. A buyer ordered 5,000 apples from the seller at P20 per apple. The seller delivered 6,000 apples. What are the rights and obligations of the buyer? A. B. C. D. He can accept all 6,000 apples and pay the seller at P20 per apple. He can accept all 6,000 apples and pay a lesser price for the 1,000 excess apples. He can keep the 6,000 apples without paying for the 1,000 excess since the seller delivered them anyway. He can cancel the whole transaction since the seller violated the terms of their agreement.

C. D.

39. X, the owner, constituted a 10-year usufruct on his land as well as on the building standing on it in Y’s favor. After flood totally destroyed the building 5 years later, X told Y that an act of God terminated the usufruct and that he should vacate the land. Is X, the owner of the land, correct?

Civil Law
D. A. B. C. D. No, since the building was destroyed through no fault of Y. No, since Y still has the right to use the land and the materials left on it. Yes, since Y cannot use the land without the building. Yes, since the destruction of the building without the X’s fault terminated the usufruct. the need for support of a brother or sister, already of age, is due to the latter's fault.

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40. In gratitude, the groom’s parents made a donation of a property in writing to the bride’s parents shortly before their children’s wedding. The donation was accepted. What is the nature of the donation? A. B. C. D. It is an ordinary donation since it was not given to the bride or groom. It is donation propter nuptias since it was given with the marriage in mind. It is an indirect donation propter nuptias since the bride would eventually inherit the property from her parents. It is a remunatory donation.

45. Virgilio owned a bare and simple swimming pool in his garden. MB, a 7-year old child, surreptitiously entered the garden and merrily romped around the ledges of the pool. He accidentally tripped, fell into the pool, and drowned. MB’s parents sued Virgilio for damages arising from their child’s death, premised on the principle of “attractive nuisance”. Is Virgilio liable for the death of MB? A. B. C. No, the child was 7 years old and knew the dangers that the pool offered. Yes, being an attractive nuisance, Virgilio had the duty to prevent children from coming near it. No, since the pool was bare and had no enticing or alluring gadgets, floats, or devices in it that would attract a 7-year old child. Yes, since Virgilio did not cover the swimming pool while not in use to prevent children from falling into it.

D.

41. X and Y, both Filipinos, were married and resided in Spain although they intend to return to the Philippines at some future time. They have not executed any marriage settlements. What law governs their property relations? A. B. C. D. They may choose between Spanish law and Philippine law. Philippine law since they are both Filipinos. No regime of property relations will apply to them. Spanish law since they live in Spain.

46. The term of a 5-year lease contract between X the lessor and Y the lessee, where rents were paid from month to month, came to an end. Still, Y continued using the property with X’s consent. In such a case, it is understood that they impliedly renewed the lease A. B. C. D. from month to month under the same conditions as to the rest. under the same terms and conditions as before. under the same terms except the rent which they or the court must fix. for only a year, with the rent raised by 10% pursuant to the rental control law.

42. Birth determines personality. Death extinguishes it. Under what circumstances may the personality of a deceased person continue to exist? A. B. C. D. In case of re-appearance of a missing person presumed dead. In protecting the works of a deceased under intellectual property laws. In case of declaration of presumptive death of a missing spouse. In the settlement of the estate of a deceased person.

47. Rex, a philanthropist, donated a valuable lot to the municipality on the condition that it will build a public school on such lot within 2 years from its acceptance of the donation. The municipality properly accepted the donation but did not yet build the public school after 2 years. Can Rex revoke the donation? A. B. C. D. Yes, since the donation is subject to a resolutory condition which was not fulfilled. No, but Rex is entitled to recover the value of the land from the municipality. No, the transfer of ownership has been completed. Yes, the donation is not deemed made until the suspensive condition has been fulfilled.

43. Six tenants sued X, the landowner, for willfully denying them water for their farms, which water happened to flow from land under X’s control, his intention being to force them to leave his properties. Is X liable for his act and why? A. B. C. D. No, because the tenants must be content with waiting for rainfall for their farms. No, since X owns both the land and the water. Yes, because the tenants’ farms have the natural right of access to water wherever it is located. Yes, since X willfully caused injury to his tenants contrary to morals, good customs or public policy.

48. Illegitimate children, those not recognized by their biological fathers, shall use the surname of their A. B. C. D. biological father subject to no condition. mother or biological father, at the mother’s discretion. mother. biological father unless he judicially opposes it.

44. Illegitimate brothers and sisters, whether of full or half-blood, are bound to support each other, EXCEPT when A. B. C. the brother or sister who needs support lives in another place. such brothers and sisters are not recognized by their father. the brother or sister in need stops schooling without valid reason.

49. Asiong borrowed P1 million from a bank, secured by a mortgage on his land. Without his consent, his friend Boyong paid the whole loan. Since Asiong benefited from the payment, can Boyong compel the bank to subrogate him in its right as mortgagee of Asiong's land? A. B. C. No, but the bank can foreclose and pay Boyong back. No, since Boyong paid for Asiong’s loan without his approval. Yes, since a change of creditor took place by novation with the bank’s consent.

Civil Law
D. Yes, since it is but right that Boyong be able to get back his money and, if not, to foreclose the mortgage in the manner of the bank. B. C. D. The State which has interest in the welfare of overseas contract workers. Any one who is outraged by B’s claim. No one since A died.

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50. Congress passed a law imposing taxes on income earned out of a particular activity that was not previously taxed. The law, however, taxed incomes already earned within the fiscal year when the law took effect. Is the law valid? A. B. C. D. No, because laws are intended to be prospective, not retroactive. No, the law is arbitrary in that it taxes income that has already been spent. Yes, since tax laws are the lifeblood of the nation. Yes, tax laws are an exception; they can be given retroactive effect.

55. QR and TS who had a marriage license requested a newly appointed Judge in Manila to marry them on the beach of Boracay. Since the Judge maintained Boracay as his residence, he agreed. The sponsors were all public officials. What is the status of the marriage? A. Valid, since the improper venue is merely an irregularity; all the elements of a valid marriage are present. Void, because the couple did not get local permit for a beach wedding. Voidable, because the Judge acted beyond his territorial jurisdiction and is administratively liable for the same. Void, because the Judge did not solemnize the marriage within the premises of his court.

B. C.

51. Rudolf borrowed P1 million from Rodrigo and Fernando who acted as solidary creditors. When the loan matured, Rodrigo wrote a letter to Rudolf, demanding payment of the loan directly to him. Before Rudolf could comply, Fernando went to see him personally to collect and he paid him. Did Rudolf make a valid payment? A. B. C. D. No, since Rudolf should have split the payment between Rodrigo and Fernando. No, since Rodrigo, the other solidary creditor, already made a prior demand for payment from Rudolf. Yes, since the payment covers the whole obligation. Yes, since Fernando was a solidary creditor, payment to him extinguished the obligation.

D.

56. X and Y, Filipinos, got married in Los Angeles, USA, using a marriage license issued by the Philippine consul in Los Angeles, acting as Civil Registrar. X and Y did not know that they were first cousins because their mothers, who were sisters, were separated when they were quite young. Since X did not want to continue with the relation when he heard of it, he left Y, came to the Philippines and married Z. Can X be held liable for bigamy? A. B. No since X’s marriage to Y is void ab initio or did not exist. No since X acted in good faith, conscious that public policy did not approve of marriage between first cousins. Yes since he married Z without first securing a judicial declaration of nullity of his marriage to Y. Yes since his first marriage to Y in Los Angeles is valid.

52. What happens to the property regimes that were subsisting under the New Civil Code when the Family Code took effect? A. B. The original property regimes are immutable and remain effective. Those enjoying specific regimes under the New Civil Code may adopt the regime of absolute community of property under the Family Code. Those that married under the New Civil Code but did not choose any of its regimes shall now be governed by the regime of absolute community of property. They are superseded by the Family Code which has retroactive effect.

C. D.

C.

D.

53. The testator executed a will following the formalities required by the law on succession without designating any heir. The only testamentary disposition in the will is the recognition of the testator's illegitimate child with a popular actress. Is the will valid? A. B. C. D. Yes, since in recognizing his illegitimate child, the testator has made him his heir. No, because the non-designation of heirs defeats the purpose of a will. No, the will comes to life only when the proper heirs are instituted. Yes, the recognition of an illegitimate heir is an ample reason for a will.

57. Allan bought Billy’s property through Carlos, an agent empowered with a special power of attorney (SPA) to sell the same. When Allan was ready to pay as scheduled, Billy called, directing Allan to pay directly to him. On learning of this, Carlos, Billy's agent, told Allan to pay through him as his SPA provided and to protect his commission. Faced with two claimants, Allan consigned the payment in court. Billy protested, contending that the consignation is ineffective since no tender of payment was made to him. Is he correct? A. No, since consignation without tender of payment is allowed in the face of the conflicting claims on the plaintiff. Yes, as owner of the property sold, Billy can demand payment directly to himself. Yes, since Allan made no announcement of the tender. Yes, a tender of payment is required for a valid consignation.

B. C. D.

54. A left B, his wife, in the Philippines to work in Egypt but died in that country after a year’s continuous stay. Two months after A’s death, B gave birth to a child, claiming it is A’s child. Who can assail the legitimacy of the child? A. A’s other heirs apart from B.

58. X sold Y 100 sacks of rice that Y was to pick up from X’s rice mill on a particular date. Y did not, however, appear on the agreed date to take delivery of the rice. After one week, X automatically rescinded the sale without notarial notice to Y. Is the rescission valid? A. Yes, automatic rescission is allowed since, having the character of movables and consumables, rice can easily deteriorate.

Civil Law
B. No, the buyer is entitled to a customary 30-day extension of his obligation to take delivery of the goods. No, since there was no express agreement regarding automatic rescission. No, the seller should first determine that Y was not justified in failing to appear. C. D. Cicero automatically becomes administrator of Ricardo’s estate until judicially relieved. Cicero’s alienations of Ricardo's property will be set aside.

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C. D.

59. The wife filed a case of legal separation against her husband on the ground of sexual infidelity without previously exerting earnest efforts to come to a compromise with him. The judge dismissed the case for having been filed without complying with a condition precedent. Is the dismissal proper? A. B. No, efforts at a compromise will only deepen the wife’s anguish. No, since legal separation like validity of marriage is not subject to compromise agreement for purposes of filing. Yes, to avoid a family feud that is hurtful to everyone. Yes, since the dispute could have been settled with the parties agreeing to legal separation.

63. Baldo, a rejected suitor, intimidated Judy into marrying him. While she wanted to question the validity of their marriage two years after the intimidation ceased, Judy decided in the meantime to freely cohabit with Baldo. After more than 5 years following their wedding, Judy wants to file a case for annulment of marriage against Baldo on ground of lack of consent. Will her action prosper? A. B. Yes, the action for annulment is imprescriptible. No, since the marriage was merely voidable and Judy ratified it by freely cohabiting with Baldo after the force and intimidation had ceased . No, since the action prescribed 5 years from the date of the celebration of the marriage. Yes, because the marriage was celebrated without Judy's consent freely given.

C. D.

C. D.

60. An Australian living in the Philippines acquired shares of stock worth P10 million in food manufacturing companies. He died in Manila, leaving a legal wife and a child in Australia and a live-in partner with whom he had two children in Manila. He also left a will, done according to Philippine laws, leaving all his properties to his live-in partner and their children. What law will govern the validity of the disposition in the will? A. B. Australia law since his legal wife and legitimate child are Australians and domiciled in Australia. Australian law since the intrinsic validity of the provisions of a will is governed by the decedent’s national law. Philippine law since the decedent died in Manila and he executed his will according to such law. Philippine law since the decedent’s properties are in the Philippines.

64. Is the wife who leaves her husband without just cause entitled to support? A. B. No, because the wife must always be submissive and respectful to the husband. Yes. The marriage not having been dissolved, the husband continues to have an obligation to support his wife. No, because in leaving the conjugal home without just cause, she forfeits her right to support. Yes, since the right to receive support is not subject to any condition.

C. D.

C. D.

65. In the order of intestate succession where the decedent is legitimate, who is the last intestate heirs or heir who will inherit if all heirs in the higher level are disqualified or unable to inherit? A. B. C. D. Nephews and nieces. Brothers and sisters. State. Other collateral relatives up to the 5th degree of consanguinity.

61. X bought a land from Y, paying him cash. Since they were friends, they did not execute any document of sale. After 7 years, the heirs of X asked Y to execute a deed of absolute sale to formalize the verbal sale to their father. Unwilling to do so, X’s heirs filed an action for specific performance against Y. Will their action prosper? A. B. C. D. No, after more than 6 years, the action to enforce the verbal agreement has already elapsed. No, since the sale cannot under the Statute of Frauds be enforced. Yes, since X bought the land and paid Y for it. Yes, after full payment, the action became imprescriptible.

66. Roy and Carlos both undertook a contract to deliver to Sam in Manila a boat docked in Subic. Before they could deliver it, however, the boat sank in a storm. The contract provides that fortuitous event shall not exempt Roy and Carlos from their obligation. Owing to the loss of the motor boat, such obligation is deemed converted into one of indemnity for damages. Is the liability of Roy and Carlos joint or solidary? A. B. C. D. Neither solidary nor joint since they cannot waive the defense of fortuitous event to which they are entitled. Solidary or joint upon the discretion of Sam. Solidary since Roy and Carlos failed to perform their obligation to deliver the motor boat. Joint since the conversion of their liability to one of indemnity for damages made it joint.

62. A court declared Ricardo, an old bachelor, an absentee and appointed Cicero administrator of his property. After a year, it was discovered that Ricardo had died abroad. What is the effect of the fact of his death on the administration of his property? A. With Ricardo no longer an absentee but a deceased person, Cicero will cease to be administrator of his properties. The administration shall be given by the court having jurisdiction over the intestate proceedings to a new administrator whom it will appoint.

B.

67. Joanne married James, a person with no known relatives. Through James' hard work, he and his wife Joane prospered. When James died, his estate alone amounted to P100 million. If, in his will, James designates Joanne as his only heir, what will be the free portion of his estate. A. Joanne gets all; estate has no free portion left.

Civil Law
B. C. D. Joanne gets 1/2; the other half is free portion. Joanne gets 1/3; the remaining 2/3 is free portion. Joanne gets 1/4; the remaining 3/4 is free portion. take place. significance? A. 68. A warranty inherent in a contract of sale, whether or not mentioned in it, is known as the B. A. B. C. D. warranty on quality. warranty against hidden defects. warranty against eviction. warranty in merchantability. C. D. Does the marriage settlement have any

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None, since the instrument containing the marriage settlement is essentially void for containing an unrelated matter. Yes, insofar as Arnold acknowledged Mary as his illegitimate child. None, since the marriage did not take place. Yes, if they acquired properties while living together as husband and wife.

69. The doctrine of stare decisis prescribes adherence to precedents in order to promote the stability of the law. But the doctrine can be abandoned A. B. C. D. When adherence to it would result in the Government’s loss of its case. When the application of the doctrine would cause great prejudice to a foreign national. When necessary to promote the passage of a new law. When the precedent has ceased to be beneficial and useful.

73. Joseph, a 17-year old Filipino, married Jenny, a 21-year old American in Illinois, USA, where the marriage was valid. Their parents gave full consent to the marriage of their children. After three years, Joseph filed a petition in the USA to promptly divorce Jenny and this was granted. When Joseph turned 25 years, he returned to the Philippines and married Leonora. What is the status of this second marriage? A. Void, because he did not cause the judicial issuance of declaration of the nullity of his first marriage to Jenny before marrying Leonora. Valid, because Joseph's marriage to Jenny is void, he being only 17 years of age when he married her. Valid, because his marriage to Leonora has all the elements of a valid marriage. Void, because Joseph is still considered married to Jenny since the Philippines does not recognize divorce.

B. 70. Ric and Josie, Filipinos, have been sweethearts for 5 years. While working in a European country where the execution of joint wills are allowed, the two of them executed a joint holographic will where they named each other as sole heir of the other in case either of them dies. Unfortunately, Ric died a year later. Can Josie have the joint will successfully probated in the Philippines? A. B. Yes, in the highest interest of comity of nations and to honor the wishes of the deceased. No, since Philippine law prohibits the execution of joint wills and such law is binding on Ric and Josie even abroad. Yes, since they executed their joint will out of mutual love and care, values that the generally accepted principles of international law accepts. Yes, since it is valid in the country where it was executed, applying the principle of “lex loci celebrationis.” C. D.

74. T died intestate, leaving an estate of P9,000,000. He left as heirs three legitimate children, namely, A, B, and C. A has two children, D and E. Before he died, A irrevocably repudiated his inheritance from T in a public instrument filed with the court. How much, if any, will D and E, as A’s children, get from T’s estate? A. Each of D and E will get P1,500,000 by right of representation since their father repudiated his inheritance. Each of D and E will get P2,225,000 because they will inherit from the estate equally with B and C. D and E will get none because of the repudiation; “B” and “C” will get A’s share by right of accretion. Each of D and E will get P2,000,000 because the law gives them some advantage due to the demise of “A”.

C.

D.

B. C.

71. ML inherited from his father P5 million in legitime but he waived it in a public instrument in favor of his sister QY who accepted the waiver in writing. But as it happened, ML borrowed P6 million from PF before the waiver. PF objected to the waiver and filed an action for its rescission on the ground that he had the right to ML’s P5 million legitime as partial settlement of what ML owed him since ML has proved to be insolvent. Does PF, as creditor, have the right to rescind the waiver? A. B. C. D. No, because the waiver in favor of his sister QY amounts to a donation and she already accepted it. Yes, because the waiver is prejudicial to the interest of a third person whose interest is recognized by law. No, PF must wait for ML to become solvent and, thereafter, sue him for the unpaid loan. Yes, because a legitime cannot be waived in favor of a specific heir; it must be divided among all the other heirs.

D.

75. No decree of legal separation can be issued A. unless the children’s welfare is attended to first. B. without prior efforts at reconciliation shown to be futile. C. unless the court first directs mediation of the parties. D. without prior investigation conducted by a public prosecutor. 76. X, who was abroad, phoned his brother, Y, authorizing him to sell X’s parcel of land in Pasay. X sent the title to Y by courier service. Acting for his brother, Y executed a notarized deed of absolute sale of the land to Z after receiving payment. What is the status of the sale? A. B. C. Valid, since a notarized deed of absolute sale covered the transaction and full payment was made. Void, since X should have authorized agent Y in writing to sell the land. Valid, since Y was truly his brother X’s agent and entrusted with the title needed to effect the sale.

72. While engaged to be married, Arnold and Josephine agreed in a public instrument to adopt out the economic regime of absolute community of property. Arnold acknowledged in the same instrument that Josephine’s daughter Mary, is his illegitimate child. But Josephine died before the marriage could

Civil Law
D. Valid, since the buyer could file an action to compel X to execute a deed of sale. C. D. 77. In a true pacto de retro sale, the title and ownership of the property sold are immediately vested in the vendee a retro subject only to the resolutory condition of repurchase by the vendor a retro within the stipulated period. This is known as A. B. C. D. equitable mortgage. conventional redemption. legal redemption. equity of redemption. Yes, since Anne tendered payment of the full amount due. No, since a manager’s check is not considered legal tender in the Philippines.

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82. The residents of a subdivision have been using an open strip of land as passage to the highway for over 30 years. The owner of that land decided, however, to close it in preparation for building his house on it. The residents protested, claiming that they became owners of the land through acquisitive prescription, having been in possession of the same in the concept of owners, publicly, peacefully, and continuously for more than 30 years. Is this claim correct? A. No, the residents have not been in continuous possession of the land since they merely passed through it in going to the highway. No, the owner did not abandon his right to the property; he merely tolerated his neighbors’ use of it for passage. Yes, residents of the subdivision have become owners by acquisitive prescription. Yes, community ownership by prescription prevails over private claims.

78. A natural obligation under the New Civil Code of the Philippines is one which A. B. C. D. the obligor has a moral obligation to do, otherwise entitling the obligee to damages. refers to an obligation in writing to do or not to do. the obligee may enforce through the court if violated by the obligor. cannot be judicially enforced but authorizes the obligee to retain the obligor’s payment or performance.

B.

C. D.

79. The husband assumed sole administration of the family’s mango plantation since his wife worked abroad. Subsequently, without his wife’s knowledge, the husband entered into an antichretic transaction with a company, giving it possession and management of the plantation with power to harvest and sell the fruits and to apply the proceeds to the payment of a loan he got. What is the standing of the contract? A. B. C. D. It is void in the absence of the wife’s consent. It is void absent an authorization from the court. The transaction is void and can neither be ratified by the wife nor authorized by the court. It is considered a continuing offer by the parties, perfected only upon the wife’s acceptance or the court’s authorization.

83. The owner of a thing cannot use it in a way that will injure the right of a third person. Thus, every building or land is subject to the easement which prohibits its proprietor or possessor from committing nuisance like noise, jarring, offensive odor, and smoke. This principle is known as A. B. C. D. Jus vindicandi. Sic utere tuo ut alienum non laedas. Jus dispondendi. Jus abutendi.

80. When the donor gives donations without reserving sufficient funds for his support or for the support of his dependents, his donations are A. B. C. D. Rescissible, since it results in economic lesion of more than 25% of the value of his properties. Voidable, since his consent to the donation is vitiated by mindless kindness. Void, since it amounts to wanton expenditure beyond his means. Reducible to the extent that the donations impaired the support due to himself and his dependents.

84. Janice and Jennifer are sisters. Janice sued Jennifer and Laura, Jennifer’s business partner for recovery of property with damages. The complaint did not allege that Janice exerted earnest efforts to come to a compromise with the defendants and that such efforts failed. The judge dismissed the complaint outright for failure to comply with a condition precedent. Is the dismissal in order? A. B. C. No, since Laura is a stranger to the sisters, Janice has no moral obligation to settle with her. Yes, since court should promote amicable settlement among relatives. Yes, since members of the same family, as parties to the suit, are required to exert earnest efforts to settle their disputes before coming to court. No, the family council, which would ordinarily mediate the dispute, has been eliminated under the Family Code.

D.

81. 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? A. Yes, since Bessy’s refusal of the manager’s check, which is presumed funded, amounts to a satisfaction of the obligation. No, since tender of payment even in cash, if refused, will not discharge the obligation without proper consignation in court.

85. X borrowed money from a bank, secured by a mortgage on the land of Y, his close friend. When the loan matured, Y offered to pay the bank but it refused since Y was not the borrower. Is the bank’s action correct? A. B. C. D. Yes, since X, the true borrower, did not give his consent to Y’s offer to pay. No, since anybody can discharge X’s obligation to his benefit. No, since Y, the owner of the collateral, has an interest in the payment of the obligation. Yes, since it was X who has an obligation to the bank.

B.

Civil Law
86. 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 A. B. C. D. accion publiciana. equity of redemption. pacto de retro. right of redemption. D. Yes, as long as they leave sufficient property for themselves and for their dependents.

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92. X owed Y P1.5 million. In his will, X gave Y legacy of P1 million but the will provided that this legacy is to be set off against the P1.5 million X owed Y. After the set off, X still owed Y P500,000. Can Y still collect this amount? A. Yes, because the designation of Y as legatee created a new and separate juridical relationship between them, that of testator-legatee. It depends upon the discretion of the probate court if a claim is filed in the testate proceedings. No, because the intention of the testator in giving the legacy is to abrogate his entire obligation to Y. No, because X had no instruction in his will to deliver more than the legacy of P1 million to Y.

87. When does the regime of conjugal partnership of gains begin to exist? A. B. C. At the moment the parties take and declare each other as husband and wife before officiating officer. At the time the spouses acquire properties through joint efforts. On the date the future spouses executed their marriage settlements because this is the starting point of their marital relationship. On the date agreed upon by the future spouses in their marriage settlements since their agreement is the law between them.

B. C. D.

D.

93. Josie owned a lot worth P5 million prior to her marriage to Rey. Subsequently, their conjugal partnership spent P3 million for the construction of a house on the lot. The construction resulted in an increase in the value of the house and lot to P9 million. Who owns the house and the lot? A. Josie and the conjugal partnership of gains will own both on a 50-50 basis. Josie will own both since the value of the house and the increase in the property’s value is less than her lot’s value; but she is to reimburse conjugal partnership expenses. Josie still owns the lot, it being her exclusive property, but the house belongs to the conjugal partnership. The house and lot shall both belong to the conjugal partnership, with Josie entitled to reimbursement for the value of the lot.

88. Josie, 18, married Dante, 25, without her parents’ knowledge and consent, and lived with him. After a year, Josie returned to her parents’ home, complained of the unbearable battering she was getting from Dante, and expressed a desire to have her marriage with him annulled. Who may bring the action? A. B. C. D. Dante. Her parents. Josie herself. The State.

B.

C. D.

89. X, a married man, cohabited with Y, an unmarried woman. Their relation bore them BB, a baby boy. Subsequently, after X became a widower, he married Y. Was BB legitimated by that marriage? A. B. C. D. Yes, since his parents are now lawfully married. Yes, since he is an innocent party and the marriage rectified the wrong done him. No, since once illegitimate, a child shall always remain illegitimate. No, since his parents were not qualified to marry each other when he was conceived.

94. An action for reconveyance of a registered piece of land may be brought against the owner appearing on the title based on a claim that the latter merely holds such title in trust for the plaintiff. The action prescribes, however, within 10 years from the registration of the deed or the date of the issuance of the certificate of title of the property as long as the trust had not been repudiated. What is the exception to this 10-year prescriptive period? A. B. C. When the plaintiff had no notice of the deed or the issuance of the certificate of title. When the title holder concealed the matter from the plaintiff. When fortuitous circumstances prevented the plaintiff from filing the case sooner. When the plaintiff is in possession of the property.

90. The presence of a vice of consent vitiates the consent of a party in a contract and this renders the contract A. B. C. D. Rescissible. Unenforceable. Voidable. Void.

D.

91. Can common-law spouses donate properties of substantial value to one another? A. B. No, they are only allowed to give moderate gifts to each other during family rejoicing. No, they cannot give anything of value to each other to prevent placing their legitimate relatives at a disadvantage. Yes, unlike the case of legally married spouses, such donations are not prohibited.

95. Conrad and Linda, both 20 years old, applied for a marriage license, making it appear that they were over 25. They married without their parents’ knowledge before an unsuspecting judge. After the couple has been in cohabitation for 6 years, Linda’s parents filed an action to annul the marriage on ground of lack of parental consent. Will the case prosper? A. No, since only the couple can question the validity of their marriage after they became 21 of age; their cohabitation also convalidated the marriage. No, since Linda’s parents made no allegations that earnest efforts have been made to come to a compromise with Conrad and Linda and which efforts failed.

B.

C.

Remedial Law
C. D. Yes, since the marriage is voidable, the couple being below 21 years of age when they married. Yes, since Linda’s parents never gave their consent to the marriage. A. B. C. 96. Pepito executed a will that he and 3 attesting witnesses signed following the formalities of law, except that the Notary Public failed to come. Two days later, the Notary Public notarized the will in his law office where all signatories to the will acknowledged that the testator signed the will in the presence of the witnesses and that the latter themselves signed the will in the presence of the testator and of one another. Was the will validly notarized? A. B. No, since it was not notarized on the occasion when the signatories affixed their signatures on the will. Yes, since the Notary Public has to be present only when the signatories acknowledged the acts required of them in relation to the will. Yes, but the defect in the mere notarization of the will is not fatal to its execution. No, since the notary public did not require the signatories to sign their respective attestations again. D. Yes, since the foetus is already regarded as a child from conception, though unborn. No, since X’s would not have known that the accident would result in Y’s abortion. No, since birth determines personality, the accident did not result in the death of a person. Yes, since the mother believed in her heart that she lost a child.

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REMEDIAL LAW
1. Anna filed a petition for appointment as regular administratrix of her fathers' estate. Her sister Sophia moved to dismiss the petition on the ground that the parties, as members of the same family, have not exerted earnest effort toward a compromise prior to the filing of the petition. Should the petition be dismissed? A. B. C. D. Yes, since such earnest effort is jurisdictional in all estate cases. No, since such earnest effort is not required in special proceedings. Yes, since such earnest effort is required prior to the filing of the case. No, since such earnest effort toward a compromise is not required in summary proceedings.

C. D.

97. Venecio and Ester lived as common-law spouses since both have been married to other persons from whom they had been separated in fact for several years. Hardworking and bright, each earned incomes from their respective professions and enterprises. What is the nature of their incomes? A. B. C. D. Conjugal since they earned the same while living as husband and wife. Separate since their property relations with their legal spouses are still subsisting. Co-ownership since they agreed to work for their mutual benefit. Communal since they earned the same as commonlaw spouses.

2. A pending criminal case, dismissed provisionally, shall be deemed permanently dismissed if not revived after 2 years with respect to offenses punishable by imprisonment A. B. C. D. of more than 12 years. not exceeding 6 years or a fine not exceeding P1,000.00. of more than 6 years or a fine in excess of P1,000.00. of more than 6 years.

98. What is the prescriptive period for filing an action for revocation of a donation based on acts of ingratitude of the donee? A. B. C. D. 5 years from the perfection of the donation. 1 year from the perfection of the donation. 4 years from the perfection of the donation. Such action does not prescribe.

3. Angie was convicted of false testimony and served sentence. Five years later, she was convicted of homicide. On appeal, she applied for bail. May the Court of Appeals deny her application for bail on ground of habitual delinquency? A. B. C. D. Yes, the felonies are both punishable under the Revised Penal Code. Yes, her twin convictions indicated her criminal inclinations. No, the felonies fall under different titles in the Revised Penal Code. No, the charges are both bailable.

99. Before Karen married Karl, she inherited P5 million from her deceased mother which amount she brought into the marriage. She later used part of the money to buy a new Mercedes Benz in her name, which Karen and her husband used as a family car. Is the car a conjugal or Karen’s exclusive property? A. B. C. D. It is conjugal property since the spouses use it as a family car. It is Karen’s exclusive property since it is in her name. It is conjugal property having been bought during the marriage. It is Karen’s exclusive property since she bought it with her own money.

4. Which of the following is NOT CONSISTENT with the rules governing expropriation proceedings? A. The court shall declare the defendant who fails to answer the complaint in default and render judgment against him. The court shall refer the case to the Board of Commissioners to determine the amount of just compensation. The plaintiff shall make the required deposit and forthwith take immediate possession of the property sought to be expropriated. The plaintiff may appropriate the property for public use after judgment and payment of the compensation fixed in it, despite defendant’s appeal.

B.

C.

100. Because of X’s gross negligence, Y suffered injuries that resulted in the abortion of the foetus she carried. Y sued X for, among other damages, P1 million for the death of a family member. Is Y entitled to indemnity for the death of the foetus she carried?

D.

5. Which of the following is a correct statement of the rule on

Remedial Law
amendment of the information in a criminal proceeding? A. B. C. D. An amendment that downgrades the offense requires leave of court even before the accused pleads. Substantial amendments are allowed with leave of court before the accused pleads. Only formal amendments are permissible before the accused pleads. After the plea, a formal amendment may be made without leave of court. 11. Which of the following is in accord with the applicable rules on receivership? A. B. The court may appoint the plaintiff as receiver of the property in litigation over the defendant’s objection. A receiver may be appointed after judgment if the judgment obligor refuses to apply his property to satisfy the judgment. The trial court cannot appoint a receiver when the case is on appeal. The filing of bond on appointment of a receiver is mainly optional.

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C. D.

6. Gary who lived in Taguig borrowed P1 million from Rey who lived in Makati under a contract of loan that fixed Makati as the venue of any action arising from the contract. Gary had already paid the loan but Rey kept on sending him letters of demand for some balance. Where is the venue of the action for harassment that Gary wants to file against Rey? A. In Makati since the intent of the party is to make it the venue of any action between them whether based on the contract or not. In Taguig or Makati at the option of Gary since it is a personal injury action. In Taguig since Rey received the letters of demand there. In Makati since it is the venue fixed in their contract.

12. Bearing in mind the distinction between private and public document, which of the following is admissible in evidence without further proof of due execution or genuineness? A. B. C. D. Baptismal certificates. Official record of the Philippine Embassy in Singapore certified by the Vice-Consul with official seal. Documents acknowledged before a Notary Public in Hong Kong. Unblemished receipt dated December 20, 1985 signed by the promisee, showing payment of a loan, found among the well-kept file of the promissor.

B. C. D.

7. Which of the following is NOT within the power of a judicial receiver to perform? A. B. C. D. Bring an action in his name. Compromise a claim. Divide the residual money in his hands among the persons legally entitled to the same. Invest the funds in his hands without court approval.

13. Ramon witnessed the commission of a crime but he refuses to testify for fear of his life despite a subpoena being served on him. Can the court punish him for contempt? A. B. C. D. No, since no person can be compelled to be a witness against another. Yes, since public interest in justice requires his testimony. No, since Ramon has a valid reason for not testifying. Yes, since litigants need help in presenting their cases.

8. Which of the following precepts forms part of the rules governing small claims? A. B. C. D. Permissive counterclaim is not allowed. The court shall render its decision within 3 days after hearing. Joinder of separate claims is not allowed. Motion to declare defendant in default is allowed.

14. The right to intervene is not absolute. In general, it CANNOT be allowed where A. B. C. the intervenor has a common interest with any of the parties. it would enlarge the issues and expand the scope of the remedies. the intervenor fails to put up a bond for the protection of the other parties. the intervenor has a stake in the property subject of the suit.

9. The Metropolitan Trial Court convicted Virgilio and Dina of concubinage. Pending appeal, they applied for bail, claiming they are entitled to it as a matter of right. Is their claim correct? A. B. C. D. No, bail is not a matter of right after conviction. Yes, bail is a matter of right in all cases not involving moral turpitude. No, bail is dependent on the risk of flight. Yes, bail is a matter of right in the Metropolitan Trial Court before and after conviction.

D.

15. Which of the following grounds for dismissal invoked by the court will NOT PRECLUDE the plaintiff from refiling his action? A. B. C. D. Res judicata. Lack of jurisdiction over the subject matter. Unenforceability under the Statutes of Fraud. Prescription.

10. As a rule, the judge shall receive the evidence personally. In which of the following circumstances may the court delegate the reception of evidence to the clerk of court? A. B. C. D. When a question of fact arises upon a motion. When the trial of an issue of fact requires the examination of a long account. In default or ex-parte hearings. Upon motion of a party on reasonable grounds.

16. When may a co-owner NOT demand the partition of the thing owned in common? A. B. C. D. When the creditor of one of the co-owners has attached the property. When the property is essentially indivisible. When related co-owners agreed to keep the property within the family. When a co-owner uses the property as his residence.

17. The city prosecutor of Manila filed, upon Soledad’s

Remedial Law
complaint, a criminal action for estafa against her sister, Wella, before the RTC of Manila for selling to Victor a land that she previously sold to Soledad. At the same time Soledad filed a civil action to annul the second sale before the RTC of Quezon City. May the Manila RTC motu proprio suspend the criminal action on ground of prejudicial question? A. B. C. D. Yes, if it may be clearly inferred that complainant will not object to the suspension of the criminal case. No, the accused must file a motion to suspend the action based on prejudicial question. Yes, if it finds from the record that such prejudicial question exists. Yes, if it is convinced that due process and fair trial will be better served if the criminal case is suspended. C. D. to overcome a disputable presumption, clear and convincing evidence. to rebut the presumptive validity of a notarial document, substantial evidence.

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22. The accused jumps bail and fails to appear on promulgation of judgment where he is found guilty. What is the consequence of his absence? A. B. C. D. Counsel may appeal the judgment in the absence of the accused. The judgment shall be promulgated in his absence and he loses his right of appeal. The promulgation of the judgment shall be suspended until he is brought to the jurisdiction of the court. The judgment shall be void.

18. Which of the following conforms to the applicable rule on replevin? A. The applicant must file a bond executed to the adverse party in an amount equal to the value of the property as determined by the court. The property has been wrongfully detained by the adverse party. The applicant has a contingent claim over the property object of the writ. The plaintiff may apply for the writ at any time before judgment.

23. What should the court sheriff do if a third party serves on him an affidavit of claim covering the property he had levied? A. Ask the judgment obligee to file a court-approved indemnity bond in favor of the third-party claimant or the sheriff will release the levied property. Ask the judgment obligee to file a court-approved bond for the sheriff’s protection in case he proceeds with the execution. Immediately lift the levy and release the levied property. Ask the third-party claimant to support his claim with an indemnity bond in favor of the judgment obligee and release the levied property if such bond is filed.

B. C. D.

B.

C. D.

19. Gerry sued XYZ Bus Co. and Rico, its bus driver, for injuries Gerry suffered when their bus ran off the road and hit him. Of the two defendants, only XYZ Bus Co. filed an answer, alleging that its bus ran off the road because one of its wheels got caught in an open manhole, causing the bus to swerve without the driver’s fault. Someone had stolen the manhole cover and the road gave no warning of the danger it posed. On Gerry’s motion and over the objection of XYZ Bus Co., the court declared Rico, the bus driver, in default and rendered judgment ordering him to pay P50,000 in damages to Gerry. Did the court act correctly? A. B. C. D. No, since the court should have tried the case against both defendants upon the bus company’s answer. No, the court should have dropped Rico as defendant since the moneyed defendant is the bus company. Yes, the court can, under the rules, render judgment against the defendant declared in default. Yes, since, in failing to answer, Rico may be deemed to have admitted the allegations in the complaint.

24. Which of the following is NOT REGARDED as a sufficient proof of personal service of pleadings? A. B. C. D. Official return of the server. Registered mail receipt. Written admission of the party served. Affidavit of the server with a statement of the date, place and manner of service.

25. A sued B for ejectment. Pending trial, B died, survived by his son, C. No substitution of party defendant was made. Upon finality of the judgment against B, may the same be enforced against C? A. Yes, because the case survived B’s death and the effect of final judgment in an ejectment case binds his successors in-interest. No, because C was denied due process. Yes, because the negligence of B’s counsel in failing to ask for substitution, should not prejudice A. No, because the action did not survive B’s death.

20. Which of the following has NO PLACE in an application for a replevin order? A statement A. B. C. D. that the property is wrongfully detained by the adverse party. that the property has not been distrained for a tax assessment or placed under custodia legis. of the assessed value of the property. that the applicant owns or has a right to the possession of the property.

B. C. D.

26. What is the proper remedy to secure relief from the final resolutions of the Commission On Audit? A. B. C. D. Petition for review on certiorari with the Supreme Court. Special civil action of certiorari with the Court of Appeals. Special civil action of certiorari with the Supreme Court. Appeal to the Court of Appeals.

21. In which of the following instances is the quantum of evidence ERRONEOUSLY applied? A. B. in Writ of Amparo cases, substantial evidence. to satisfy the burden of proof in civil cases, preponderance of evidence.

27. Which of the following is a duty enjoined on the guardian and covered by his bond? A. B. Provide for the proper care, custody, and education of the ward. Ensure the wise and profitable investment of the

Remedial Law
ward’s financial resources. Collect compensation for his services to the ward. Raise the ward to become a responsible member of society. the items. Will this deficiency destroy the chain of custody rule in the drug case? A. B. C. No, a breach of the chain of custody rule in drug cases, if satisfactorily explained, will not negate conviction. No, a breach of the chain of custody rule may be offset by presentation in court of the drugs. Yes, chain of custody in drug cases must be strictly observed at all times to preserve the integrity of the confiscated items. Yes, compliance with the chain of custody rule in drug cases is the only way to prove the accused’s guilt beyond reasonable doubt.

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C. D.

28. Berto was charged with and convicted of violating a city ordinance against littering in public places punishable by imprisonment of one month or a fine of P1,000.00. But the city mayor pardoned him. A year later, he was charged with violating a city ordinance against jaywalking which carried the same penalty. Need Berto post bail for such offense? A. B. C. D. Yes, his previous conviction requires posting of bail for the present charge. Yes, since he may be deemed to have violated the terms of his pardon. No, because he is presumed innocent until proven otherwise. No, one charged with the violation of a city ordinance is not required to post bail, notwithstanding a previous pardon.

D.

33. A sued B in the RTC of Quezon City, joining two causes of action: for partition of real property and breach of contract with damages. Both parties reside in Quezon City but the real property is in Manila. May the case be dismissed for improper venue? A. B. Yes, since causes of action pertaining to different venues may not be joined in one action. No, since causes of action pertaining to different venues may be joined in the RTC if one of the causes of action falls within its jurisdiction. Yes, because special civil action may not be joined with an ordinary civil action. No, since plaintiff may unqualifiedly join in one complaint as many causes of action as he has against opposing party.

29. Which of the following claims survive the death of the defendant and need not be presented as a claim against the estate? A. B. Contingent money claims arising from contract. Unenforced money judgment against the decedent, with death occurring before levy on execution of the property. Claims for damages arising from quasi-delict. Claims for funeral expenses.

C. D.

C. D.

34. What is the doctrine of judicial stability or non interference? A. B. Once jurisdiction has attached to a court, it can not be deprived of it by subsequent happenings or events. Courts will not hear and decide cases involving issues that come within the jurisdiction of administrative tribunals. No court has the authority to interfere by injunction with the judgment of another court of coordinate jurisdiction. A higher court will not entertain direct resort to it unless the redress sought cannot be obtained from the appropriate court.

30. In a case, the prosecutor asked the medical expert the question, “Assuming that the assailant was behind the deceased before he attacked him, would you say that treachery attended the killing?” Is this hypothetical question permissible? A. B. No, since it asks for his legal opinion. Yes, but conditionally, subject to subsequent proof that the assailant was indeed behind the deceased at that time. Yes, since hypothetical questions may be asked of an expert witness. No, since the medical expert has no personal knowledge of the fact.

C. D.

C. D.

35. Which of the following admissions made by a party in the course of judicial proceedings is a judicial admission? A. B. C. D. Admissions made in a pleading signed by the party and his counsel intended to be filed. An admission made in a pleading in another case between the same parties. Admission made by counsel in open court. Admissions made in a complaint superseded by an amended complaint.

31. The city prosecutor charged Ben with serious physical injuries for stabbing Terence. He was tried and convicted as charged. A few days later, Terence died due to severe infection of his stab wounds. Can the prosecution file another information against Ben for homicide? A. B. C. Yes, since Terence’s death shows irregularity in the filing of the earlier charge against him. No, double jeopardy is present since Ben had already been convicted of the first offense. No, there is double jeopardy since serious physical injuries is necessarily included in the charge of homicide. Yes, since supervening event altered the kind of crime the accused committed.

36. What defenses may be raised in a suit to enforce a foreign judgment? A. B. C. That the judgment is contrary to Philippine procedural rules. None, the judgment being entitled to full faith and credit as a matter of general comity among nations. That the foreign court erred in the appreciation of the evidence. That extrinsic fraud afflicted the judgment.

D.

32. Arvin was caught in flagrante delicto selling drugs for P200,000.00. The police officers confiscated the drugs and the money and brought them to the police station where they prepared the inventory duly signed by police officer Oscar Moreno. They were, however, unable to take pictures of

D.

37. Cindy charged her husband, George, with bigamy for a prior subsisting marriage with Teresa. Cindy presented Ric and Pat,

Remedial Law
neighbors of George and Teresa in Cebu City, to prove, first, that George and Teresa cohabited there and, second, that they established a reputation as husband and wife. Can Cindy prove the bigamy by such evidence? A. B. Yes, the circumstantial evidence is enough to support a conviction for bigamy. No, at least one direct evidence and two circumstantial evidence are required to support a conviction for bigamy. No, the circumstantial evidence is not enough to support a conviction for bigamy. No, the circumstantial evidence cannot overcome the lack of direct evidence in any criminal case. A. B. C. D. Answer the complaint. File an administrative action for gross ignorance of the law against the trial judge. File a special civil action of certiorari on ground of grave abuse of discretion. Appeal the orders of denial.

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C. D.

42. During trial, plaintiff offered evidence that appeared irrelevant at that time but he said he was eventually going to relate to the issue in the case by some future evidence. The defendant objected. Should the trial court reject the evidence in question on ground of irrelevance? A. B. C. D. No, it should reserve its ruling until the relevance is shown. Yes, since the plaintiff could anyway subsequently present the evidence anew. Yes, since irrelevant evidence is not admissible. No, it should admit it conditionally until its relevance is shown.

38. To prove payment of a debt, Bong testified that he heard Ambo say, as the latter was handing over money to Tessie, that it was in payment of debt. Is Bong’s testimony admissible in evidence? A. B. C. D. Yes, since what Ambo said and did is an independently relevant statement. No, since what Ambo said and did was not in response to a startling occurrence. No, since Bong’s testimony of what Ambo said and did is hearsay. Yes, since Ambo’s statement and action, subject of Bong’s testimony, constitutes a verbal act.

43. Ben testified that Jaime, charged with robbery, has committed bag-snatching three times on the same street in the last six months. Can the court admit this testimony as evidence against Jaime? A. B. No, since there is no showing that Ben witnessed the past three robberies. Yes, as evidence of his past propensity for committing robbery. Yes, as evidence of a pattern of criminal behavior proving his guilt of the present offense. No, since evidence of guilt of a past crime is not evidence of guilt of a present crime.

39. Considering the qualifications required of a would-be witness, who among the following is INCOMPETENT to testify? A. B. C. D. A person under the influence of drugs when the event he is asked to testify on took place. A person convicted of perjury who will testify as an attesting witness to a will. A deaf and dumb. A mental retardate.

C. D.

44. What is the right correlation between a criminal action and a petition for Writ of Amparo both arising from the same set of facts? A. B. C. D. When the criminal action is filed after the Amparo petition, the latter shall be dismissed. The proceeding in an Amparo petition is criminal in nature. No separate criminal action may be instituted after an Amparo petition is filed. When the criminal action is filed after the Amparo petition, the latter shall be consolidated with the first.

40. Arthur, a resident foreigner sold his car to Bren. After being paid but before delivering the car, Arthur replaced its original sound system with an inferior one. Bren discovered the change, rejected the car, and demanded the return of his money. Arthur did not comply. Meantime, his company reassigned Arthur to Singapore. Bren filed a civil action against Arthur for contractual fraud and damages. Upon his application, the court issued a writ of preliminary attachment on the grounds that (a) Arthur is a foreigner; (b) he departed from the Philippines; and (c) he was guilty of fraud in contracting with Bren. Is the writ of preliminary attachment proper? A. B. No, Arthur is a foreigner living abroad; he is outside the court’s jurisdiction. Yes, Arthur committed fraud in changing the sound system and its components before delivering the car bought from him. Yes the timing of his departure is presumptive evidence of intent to defraud. No, since it was not shown that Arthur left the country with intent to defraud Bren.

45. Alex filed a petition for writ of amparo against Melba relative to his daughter Toni's involuntary disappearance. Alex said that Melba was Toni's employer, who, days before Toni disappeared, threatened to get rid of her at all costs. On the other hand, Melba countered that she had nothing to do with Toni's disappearance and that she took steps to ascertain Toni's whereabouts. What is the quantum of evidence required to establish the parties' respective claims? A. B. C. D. For Alex, probable cause; for Melba, substantial evidence. For Alex, preponderance of evidence; for Melba, substantial evidence. For Alex, proof beyond reasonable doubt; for Melba, ordinary diligence. For both, substantial evidence.

C. D.

41. What is the movant’s remedy if the trial court incorrectly denies his motion to dismiss and related motion for reconsideration?

46. In which of the following situations is the declaration of a deceased person against his interest NOT ADMISSIBLE against him or his successors and against third persons?

Remedial Law
C. A. B. C. D. Declaration of a joint debtor while the debt subsisted. Declaration of a joint owner in the course of ownership. Declaration of a former co-partner after the partnership has been dissolved. Declaration of an agent within the scope of his authority. Yes, the right of the intervenor is merely in aid of the right of the original party, which in this case had ceased to exist. No, since having been allowed to intervene, the intervenor became a party to the action, entitled to have the issue it raised tried and decided.

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D.

47. Defendant Dante said in his answer: "1. Plaintiff Perla claims that defendant Dante owes her P4,000 on the mobile phone that she sold him; 2. But Perla owes Dante P6,000 for the dent on his car that she borrowed." How should the court treat the second statement? A. B. C. D. A cross claim A compulsory counterclaim A third party complaint A permissive counterclaim

52. The accused was convicted for estafa thru falsification of public document filed by one of two offended parties. Can the other offended party charge him again with the same crime? A. B. C. D. Yes, since the wrong done the second offended party is a separate crime. No, since the offense refers to the same series of act, prompted by one criminal intent. Yes, since the second offended party is entitled to the vindication of the wrong done him as well. No, since the second offended party is in estoppel, not having joined the first criminal action.

48. How will the court sheriff enforce the demolition of improvements? A. He will give a 5-day notice to the judgment obligor and, if the latter does not comply, the sheriff will have the improvements forcibly demolished. He will report to the court the judgment obligor’s refusal to comply and have the latter cited in contempt of court. He will demolish the improvements on special order of the court, obtained at the judgment obligee’s motion. He will inform the court of the judgment obligor’s noncompliance and proceed to demolish the improvements.

53. Henry testified that a month after the robbery Asiong, one of the accused, told him that Carlos was one of those who committed the crime with him. Is Henry’s testimony regarding what Asiong told him admissible in evidence against Carlos? A. B. C. D. No, since it is hearsay. No, since Asiong did not make the statement during the conspiracy. Yes, since it constitutes admission against a coconspirator. Yes, since it part of the res gestae.

B.

C. D.

49. When may the bail of the accused be cancelled at the instance of the bondsman? A. B. C. D. When the accused jumps bail. When the bondsman surrenders the accused to the court. When the accused fails to pay his annual premium on the bail bond. When the accused changes his address without notice to the bondsman.

54. Dorothy filed a petition for writ of habeas corpus against her husband, Roy, to get from him custody of their 5 year old son, Jeff. The court granted the petition and required Roy to turn over Jeff to his mother. Roy sought reconsideration but the court denied it. He filed a notice of appeal five days from receipt of the order denying his motion for reconsideration. Did he file a timely notice of appeal? A. B. C. D. No, since he filed it more than 2 days after receipt of the decision granting the petition. No, since he filed it more than 2 days after receipt of the order denying his motion for reconsideration. Yes, since he filed it within 15 days from receipt of the denial of his motion for reconsideration. Yes, since he filed it within 7 days from receipt of the denial of his motion for reconsideration.

50. Which of the following MISSTATES a requisite for the issuance of a search warrant? A. B. C. D. The warrant specifically describes the place to be searched and the things to be seized. Presence of probable cause. The warrant issues in connection with one specific offense. Judge determines probable cause upon the affidavits of the complainant and his witnesses.

51. Ranger Motors filed a replevin suit against Bart to recover possession of a car that he mortgaged to it. Bart disputed the claim. Meantime, the court allowed, with no opposition from the parties, Midway Repair Shop to intervene with its claim against Bart for unpaid repair bills. On subsequent motion of Ranger Motors and Bart, the court dismissed the complaint as well as Midway Repair Shop’s intervention. Did the court act correctly? A. B. No, since the dismissal of the intervention bars the right of Bart to file a separate action. Yes, intervention is merely collateral to the principal action and not an independent proceeding.

55. Angel Kubeta filed a petition to change his first name “Angel.” After the required publication but before any opposition could be received, he filed a notice of dismissal. The court confirmed the dismissal without prejudice. Five days later, he filed another petition, this time to change his surname “Kubeta.” Again, Angel filed a notice of dismissal after the publication. This time, however, the court issued an order, confirming the dismissal of the case with prejudice. Is the dismissal with prejudice correct? A. B. C. D. Yes, since such dismissal with prejudice is mandatory. No, since the rule on dismissal of action upon the plaintiff’s notice does not apply to special proceedings. No, since change of name does not involve public interest and the rules should be liberally construed. Yes, since the rule on dismissal of action upon the plaintiff’s notice applies and the two cases involve a change in name.

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B. C. D. None since such order is final and executory. Ask for reconsideration; if denied, file petition for certiorari and prohibition. Appeal the order denying the motion for preliminary investigation.

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56. A complaint without the required “verification” A. B. C. D. shall be treated as unsigned. lacks a jurisdictional requirement. is a sham pleading. is considered not filed and should be expunged.

62. Which of the following renders a complaint for unlawful detainer deficient? A. B. C. D. The defendant claims that he owns the subject property. The plaintiff has tolerated defendant’s possession for 2 years before demanding that he vacate it. The plaintiff’s demand is for the lessee to pay back rentals or vacate. The lessor institutes the action against a lessee who has not paid the stipulated rents.

57. The decisions of the Commission on Elections or the Commission on Audit may be challenged by A. B. C. D. petition for review on certiorari filed with the Supreme Court under Rule 45. petition for review on certiorari filed with the Court of Appeals under Rule 42. appeal to the Supreme Court under Rule 54. special civil action of certiorari under Rule 65 filed with the Supreme Court.

58. Which of the following states a correct guideline in hearing applications for bail in capital offenses? A. B. The hearing for bail in capital offenses is summary; the court does not sit to try the merits of the case. The prosecution’s conformity to the accused’s motion for bail is proof that its evidence of his guilt is not strong. The accused, as applicant for bail, carries the burden of showing that the prosecution’s evidence of his guilt is not strong. The prosecution must have full opportunity to prove the guilt of the accused.

63. In a judicial foreclosure proceeding, under which of the following instances is the court NOT ALLOWED to render deficiency judgment for the plaintiff? A. B. If the mortgagee is a banking institution. if upon the mortgagor’s death during the proceeding, the mortgagee submits his claim in the estate proceeding. If the mortgagor is a third party who is not solidarily liable with the debtor. If the mortgagor is a non-resident person and cannot be found in the Philippines.

C. D.

C.

D.

64. In which of the following cases is the plaintiff the real party in interest? A. B. C. D. A creditor of one of the co-owners of a parcel of land, suing for partition An agent acting in his own name suing for the benefit of a disclosed principal Assignee of the lessor in an action for unlawful detainer An administrator suing for damages arising from the death of the decedent

59. Apart from the case for the settlement of her parents' estate, Betty filed an action against her sister, Sigma, for reconveyance of title to a piece of land. Betty claimed that Sigma forged the signatures of their late parents to make it appear that they sold the land to her when they did not, thus prejudicing Betty’s legitime. Sigma moved to dismiss the action on the ground that the dispute should be resolved in the estate proceedings. Is Sigma correct? A. B. C. D. Yes, questions of collation should be resolved in the estate proceedings, not in a separate civil case. No, since questions of ownership of property cannot be resolved in the estate proceedings. Yes, in the sense that Betty needs to wait until the estate case has been terminated. No, the filing of the separate action is proper; but the estate proceeding must be suspended meantime.

65. The defendant in an action for sum of money filed a motion to dismiss the complaint on the ground of improper venue. After hearing, the court denied the motion. In his answer, the defendant claimed prescription of action as affirmative defense, citing the date alleged in the complaint when the cause of action accrued. May the court, after hearing, dismiss the action on ground of prescription? A. B. Yes, because prescription is an exception to the rule on Omnibus Motion. No, because affirmative defenses are barred by the earlier motion to dismiss. Yes, because the defense of prescription of action can be raised at anytime before the finality of judgment. No, because of the rule on Omnibus Motion.

60. What is the consequence of the unjustified absence of the defendant at the pre-trial? A. B. C. D. The trial court shall declare him as in default. The trial court shall immediately render judgment against him. The trial court shall allow the plaintiff to present evidence ex-parte. The trial court shall expunge his answer from the record.

C. D.

66. What is the effect of the failure of the accused to file a motion to quash an information that charges two offenses? A. B. C. D. He may be convicted only of the more serious offense. He may in general be convicted of both offenses. The trial shall be void. He may be convicted only of the lesser offense.

61. What is the remedy of the accused if the trial court erroneously denies his motion for preliminary investigation of the charge against him? A. Wait for judgment and, on appeal from it, assign such denial as error.

67. Which of the following is a correct application of the rules

Remedial Law
involved in consolidation of cases? A. B. Consolidation of cases pending in different divisions of an appellate court is not allowed. The court in which several cases are pending involving common questions of law and facts may hear initially the principal case and suspend the hearing in the other cases. Consolidation of cases pending in different branches or different courts is not permissible. The consolidation of cases is done only for trial purposes and not for appeal. D. That a young person, absent for 5 years, it being unknown whether he still lives, is considered dead for purposes of succession.

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73. Which of the following is NOT REQUIRED in a petition for mandamus? A. B. C. D. The act to be performed is not discretionary. There is no other adequate remedy in the ordinary course of law. The respondent neglects to perform a clear duty under a contract. The petitioner has a clear legal right to the act demanded.

C. D.

68. Summons was served on “MCM Theater,” a business entity with no juridical personality, through its office manager at its place of business. Did the court acquire jurisdiction over MCM Theater’s owners? A. B. C. D. Yes, an unregistered entity like MCM Theater may be served with summons through its office manager. No, because MCM has no juridical personality and cannot be sued. No, since the real parties in interest, the owners of MCM Theater, have not been served with summons. Yes since MCM, as business entity, is a de facto partnership with juridical personality.

74. When is the defendant entitled to the return of the property taken under a writ of replevin? A. B. C. D. When the plaintiff’s bond is found insufficient or defective and is not replaced. When the defendant posts a redelivery bond equal to the value of the property seized. When the plaintiff takes the property and disposes of it without the sheriff’s approval. When a third party claims the property taken yet the applicant does not file a bond in favor of the sheriff.

69. Fraud as a ground for new trial must be extrinsic as distinguished from intrinsic. Which of the following constitutes extrinsic fraud? A. B. C. D. Collusive suppression by plaintiff’s counsel of a material evidence vital to his cause of action. Use of perjured testimony at the trial. The defendant’s fraudulent representation that caused damage to the plaintiff. Use of falsified documents during the trial.

75. Character evidence is admissible A. in criminal cases, the accused may prove his good moral character if pertinent to the moral trait involved in the offense charged. in criminal cases, the prosecution may prove the bad moral character of the accused to prove his criminal predisposition. in criminal cases, the bad moral character of the offended party may not be proved. when it is evidence of the good character of a witness even prior to impeachment.

B.

C. D.

70. Upon review, the Secretary of Justice ordered the public prosecutor to file a motion to withdraw the information for estafa against Sagun for lack of probable cause. The public prosecutor complied. Is the trial court bound to grant the withdrawal? A. B. C. D. Yes, since the prosecution of an action is a prerogative of the public prosecutor. No, since the complainant has already acquired a vested right in the information. No, since the court has the power after the case is filed to itself determine probable cause. Yes, since the decision of the Secretary of Justice in criminal matters is binding on courts.

76. X’s action for sum of money against Y amounting to P80,000.00 accrued before the effectivity of the rule providing for shortened procedure in adjudicating claims that do not exceed P100,000.00. X filed his action after the rule took effect. Will the new rule apply to his case? A. B. C. D. No since what applies is the rule in force at the time the cause of action accrued. No, since new procedural rules cover only cases where the issues have already been joined. Yes, since procedural rules have retroactive effect. Yes, since procedural rules generally apply prospectively to pending cases.

71. Unexplained or unjustified non-joinder in the Complaint of a necessary party despite court order results in A. B. C. D. the dismissal of the Complaint. suspension of proceedings. contempt of court. waiver of plaintiff’s right against the unpleaded necessary party.

77. A motion for reconsideration of a decision is pro forma when A. B. C. it does not specify the defects in the judgment. it is a second motion for reconsideration with an alternative prayer for new trial. it reiterates the issues already passed upon but invites a second look at the evidence and the arguments. its arguments in support of the alleged errors are grossly erroneous.

72. Which of the following CANNOT be disputably presumed under the rules of evidence? A. B. C. That the thing once proved to exist continues as long as is usual with things of that nature. That the law has been obeyed. That a writing is truly dated.

D.

78. Which of the following correctly states the rule on foreclosure of mortgages?

Remedial Law
A. B. C. D. The rule on foreclosure of real estate mortgage is suppletorily applicable to extrajudicial foreclosures. In judicial foreclosure, an order of confirmation is necessary to vest all rights in the purchaser. There is equity of redemption in extra-judicial foreclosure. A right of redemption by the judgment obligor exists in judicial foreclosure. trial? A. The court’s decision shall be held in suspension until the defendant could show at the reopening of trial that it has to be abandoned. The court shall maintain the part of its judgment that is unaffected and void the rest. The evidence taken upon the former trial, if material and competent, shall remain in use. The court shall vacate the judgment as well as the entire proceedings had in the case.

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B. C. D.

79. The information charges PNP Chief Luis Santos, (Salary Grade 28), with "taking advantage of his public position as PNP Head by feloniously shooting JOSE ONA, inflicting on the latter mortal wounds which caused his death." Based solely on this allegation, which court has jurisdiction over the case? A. B. C. D. Sandiganbayan only Sandiganbayan or Regional Trial Court Sandiganbayan or Court Martial Regional Trial Court only

84. Which of the following is sufficient to disallow a will on the ground of mistake? A. B. C. An error in the description of the land devised in the will. The inclusion for distribution among the heirs of properties not belonging to the testator. The testator intended a donation intervivos but unwittingly executed a will. An error in the name of the person nominated as executor.

80. Distinguish between conclusiveness of judgment and bar by prior judgment. A. Conclusiveness of judgment bars another action based on the same cause; bar by prior judgment precludes another action based on the same issue. Conclusiveness of judgment bars only the defendant from questioning it; bar by prior judgment bars both plaintiff and defendant. Conclusiveness of judgment bars all matters directly adjudged; bar by prior judgment precludes all matters that might have been adjudged. Conclusiveness of judgment precludes the filing of an action to annul such judgment; bar by prior judgment allows the filing of such an action.

D.

B.

85. As a rule, the estate shall not be distributed prior to the payment of all charges to the estate. What will justify advance distribution as an exception? A. B. C. D. The estate has sufficient residual distributees file sufficient bond. The specific property sought to be suffer in value. An agreement among the heirs distribution. The conformity of the majority of the distribution. assets and the distributed might regarding such creditors to such

C.

D.

81. Which of the following matters is NOT A PROPER SUBJECT of judicial notice? A. B. C. D. Persons have killed even without motive. Municipal ordinances in the municipalities where the MCTC sits. Teleconferencing is now a way of conducting business transactions. British law on succession personally known to the presiding judge.

86. A party aggrieved by an interlocutory order of the Civil Service Commission (CSC) filed a petition for certiorari and prohibition with the Court of Appeals. May the Court of Appeals take cognizance of the petition? A. B. C. D. Yes, provided it raises both questions of facts and law. No, since the CSC Chairman and Commissioners have the rank of Justices of the Court of Appeals. No, since the CSC is a Constitutional Commission. Yes, since the Court of Appeals has jurisdiction over the petition concurrent with the Supreme Court.

82. The RTC of Malolos, Branch 1, issued a writ of execution against Rene for P20 million. The sheriff levied on a school building that appeared to be owned by Rene. Marie, however, filed a third party claim with the sheriff, despite which, the latter scheduled the execution sale. Marie then filed a separate action before the RTC of Malolos, Branch 2, which issued a writ of preliminary injunction enjoining the sheriff from taking possession and proceeding with the sale of the levied property. Did Branch 2 correctly act in issuing the injunction? A. Yes, since the rules allow the filing of the independent suit to check the sheriff’s wrongful act in levying on a third party’s property. Yes, since Branch 2, like Branch 1, is part of the RTC of Malolos. No, because the proper remedy is to seek relief from the same court which rendered the judgment. No, since it constitutes interference with the judgment of a co-equal court with concurrent jurisdiction.

87. Which of the following is appealable? A. B. C. D. An order of default against the defendant. The denial of a motion to dismiss based on improper venue. The dismissal of an action with prejudice. The disallowance of an appeal.

88. Which of the following is NOT REQUIRED of a declaration against interest as an exception to the hearsay rule? A. B. C. D. The declarant had no motive to falsify and believed such declaration to be true. The declarant is dead or unable to testify. The declaration relates to a fact against the interest of the declarant. At the time he made said declaration he was unaware that the same was contrary to his aforesaid interest.

B. C. D.

83. What is the effect and ramification of an order allowing new

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89. To prove the identity of the assailant in a crime of homicide, a police officer testified that, Andy, who did not testify in court, pointed a finger at the accused in a police lineup. Is the police officer’s testimony regarding Andy's identification of the accused admissible evidence? A. B. C. D. Yes, since it is based on his personal knowledge of Andy’s identification of the accused. Yes, since it constitutes an independently relevant statement. No, since the police had the accused identified without warning him of his rights. No, since the testimony is hearsay. filed in Makati or Quezon City. 94. Allan was riding a passenger jeepney driven by Ben that collided with a car driven by Cesar, causing Allan injury. Not knowing who was at fault, what is the best that Allan can do? A. B. C. D. File a tort action against Cesar. Await a judicial finding regarding who was at fault. Sue Ben for breach of contract of carriage. Sue both Ben and Cesar as alternative defendants.

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90. In which of the following cases is the testimony in a case involving a deceased barred by the Survivorship Disqualification Rule or Dead Man Statute? A. B. C. D. Testimony against the heirs of the deceased defendant who are substituted for the latter. The testimony of a mere witness who is neither a party to the case nor is in privity with the latter. The testimony of an oppositor in a land registration case filed by the decedent’s heirs. The testimony is offered to prove a claim less than what is established under a written document signed by the decedent.

95. A surety company, which provided the bail bond for the release of the accused, filed a motion to withdraw as surety on the ground of the accused’s non-payment of the renewal premium. Can the trial court grant the withdrawal? A. B. C. D. No, since the surety’s undertaking is not annual but lasts up to judgment. Yes, since surety companies would fold up otherwise. No, since the surety company technically takes the place of the accused with respect to court attendance. Yes, since the accused has breached its agreement with the surety company.

91. The prosecution moved for the discharge of Romy as state witness in a robbery case it filed against Zoilo, Amado, and him. Romy testified, consistent with the sworn statement that he gave the prosecution. After hearing Romy, the court denied the motion for his discharge. How will denial affect Romy? A. B. C. D. His testimony shall remain on record. Romy will be prosecuted along with Zoilo and Amado. His liability, if any, will be mitigated. The court can convict him based on his testimony.

96. To prove that Susan stabbed her husband Elmer, Rico testified that he heard Leon running down the street, shouting excitedly, “Sinasaksak daw ni Susan ang asawa niya! (I heard that Susan is stabbing her husband!)” Is Leon's statement as narrated by Rico admissible? A. B. C. D. No, since the startling event had passed. Yes, as part of the res gestae. No, since the excited statement is itself hearsay. Yes, as an independently relevant statement.

97. Which of the following NOT TRUE regarding the doctrine of judicial hierarchy? A. It derives from a specific and mandatory provision of substantive law. The Supreme Court may disregard the doctrine in cases of national interest and matters of serious implications. A higher court will not entertain direct recourse to it if redress can be obtained in the appropriate courts. The reason for it is the need for higher courts to devote more time to matters within their exclusive jurisdiction.

92. In proceedings for the settlement of the estate of deceased persons, the court in which the action is pending may properly A. B. pass upon question of ownership of a real property in the name of the deceased but claimed by a stranger. pass upon with the consent of all the heirs the issue of ownership of estate asset, contested by an heir if no third person is affected. rule on a claim by one of the heirs that an estate asset was held in trust for him by the deceased. rescind a contract of lease entered into by the deceased before death on the ground of contractual breach by the lessee.

B.

C. D.

C. D.

98. Plaintiff Manny said in his complaint: “3. On March 1, 2001 defendant Letty borrowed P1 million from plaintiff Manny and made a promise to pay the loan within six months.” In her answer, Letty alleged: “Defendant Letty specifically denies the allegations in paragraph 3 of the complaint that she borrowed P1 million from plaintiff Manny on March 1, 2001 and made a promise to pay the loan within six months.” Is Letty’s denial sufficient? A. B. C. D. Yes, since it constitutes specific denial of the loan. Yes, since it constitutes positive denial of the existence of the loan. No, since it fails to set forth the matters defendant relied upon in support of her denial. No, since she fails to set out in par. 2 of her answer her special and affirmative defenses.

93. Which of the following stipulations in a contract will supersede the venue for actions that the rules of civil procedure fix? A. In case of litigation arising from this contract of sale, the preferred venue shall be in the proper courts of Makati. Should the real owner succeed in recovering his stolen car from buyer X, the latter shall have recourse under this contract to seller Y exclusively before the proper Cebu City court. Venue in case of dispute between the parties to this contract shall solely be in the proper courts of Quezon City. Any dispute arising from this contract of sale may be

B.

C.

D.

E. 99. When may an information be filed in court without the preliminary investigation required in the particular case being

Criminal Law
first conducted? A. B. Following an inquest, in cases of those lawfully arrested without a warrant. When the accused, while under custodial investigation, informs the arresting officers that he is waiving his right to preliminary investigation. When the accused fails to challenge the validity of the warrantless arrest at his arraignment. When the arresting officers take the suspect before the judge who issues a detention order against him. 5. He is an accomplice who A. B. C. D. agreed to serve as a lookout after his companions decided to murder the victim. watched quietly as the murderer stabbed his victim. helped the murderer find the victim who was hiding to avoid detection. provided no help, when he can, to save the victim from dying.

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C. D.

100. In a civil action involving three separate causes of action, the court rendered summary judgment on the first two causes of action and tried the third. After the period to appeal from the summary judgment expired, the court issued a writ of execution to enforce the same. Is the writ of execution proper? A. No, being partial, the summary judgment is interlocutory and any appeal from it still has to reckon with the final judgment. Yes since, assuming the judgment was not appealable, the defendant should have questioned it by special civil action of certiorari. No, since the rules do not allow a partial summary judgment. No, since special reason is required for execution pending rendition of a final decision in the case.

6. Principles of public international law exempt certain individuals from the Generality characteristic of criminal law. Who among the following are NOT exempt from the Generality rule? A. B. C. D. Ministers Resident Commercial Attache of a foreign country Ambassador Chiefs of Mission

7. As a modifying circumstance, insanity A. B. C. D. is in the nature of confession and avoidance. may be presumed from the offender’s previous behavior may be mitigating if its presence becomes apparent subsequent to the commission of the crime. exempts the offender from criminal liability whatever the circumstances.

B.

C. D.

CRIMINAL LAW
1. Isabel, a housemaid, broke into a pawnshop intent on stealing items of jewelry in it. She found, however, that the jewelry were in a locked chest. Unable to open it, she took the chest out of the shop. What crime did she commit? A. B. C. D. Robbery in an uninhabited place or in a private building Theft Robbery in an inhabited house or public building. Qualified theft

8. Zeno and Primo asked Bert to give them a sketch of the location of Andy’s house since they wanted to kill him. Bert agreed and drew them the sketch. Zeno and Primo drove to the place and killed Andy. What crime did Bert commit? A. B. C. D. Accomplice to murder, since his cooperation was minimal. Accessory to murder, since his map facilitated the escape of the two. None, since he took no step to take part in executing the crime. Principal to murder, since he acted in conspiracy with Zeno and Primo.

2. The alternative circumstance of relationship shall NOT be considered between A. B. C. D. mother-in-law and daughter-in-law. adopted son and legitimate natural daughter. aunt and nephew. stepfather and stepson.

9. A police officer surreptitiously placed a marijuana stick in a student’s pocket and then arrested him for possession of marijuana cigarette. What crime can the police officer be charged with? A. B. C. D. None, as it is a case of entrapment Unlawful arrest Incriminating an innocent person Complex crime of incriminating an innocent person with unlawful arrest

3. Arthur, Ben, and Cesar quarreled with Glen while they were at the latter’s house. Enraged, Arthur repeatedly stabbed Glen while Ben and Cesar pinned his arms. What aggravating circumstance if any attended the killing of Glen? A. B. C. D. Evident premeditation. None. Abuse of superior strength. Treachery.

4. The presence of a mitigating circumstance in a crime A. B. C. D. increases the penalty to its maximum period. changes the gravity of the offense. affects the imposable penalty, depending on other modifying circumstances. automatically reduces the penalty.

10. The police officer in civilian clothes asked X where he can buy shabu. X responded by asking the officer how much of the drug he needed. When he told him, X left, returned after a few minutes with the shabu, gave it to the officer, and took his money. X is A. liable for selling since the police operation was a valid entrapment. B. not liable for selling since the police operation was an invalid entrapment. C. liable for selling since the police operation was a valid form of instigation. D. not liable since the police operation was an invalid

Criminal Law
instigation. 11. Plaintiff X said in his civil complaint for damages that defendant Y, employing fraud, convinced him to buy a defective vehicle. Y filed a criminal action for libel against X for maliciously imputing fraud on him. Will the action prosper if it turns out that the civil complaint for damages was baseless? A. No, since pleadings filed in court are absolutely privileged. B. No, since malice is not evident. C. Yes, given the fact that the imputation of fraud was baseless. D. Yes, parties must state the truth in their pleadings. 12. The maxim "Nullum crimen nula poena sine lege" means that A. the act is criminal at the time of its commission and recognized as such at the time of its commission but the penalty therefor is prescribed in a subsequently enacted law. the act is criminal and punished under and pursuant to common law. there is a crime for as long as the act is inherently evil. crime is a product of the law. B. C. D. a principal in violation of the Anti-Torture Act. a principal in violation of the Anti-Hazing Law. an accomplice in violation of the Anti-Hazing Law.

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17. Dr. Chow, a government doctor, failed to submit his Daily Time Record (DTR) from January to March 2000 and did not get approval of his sick leave application for April because of evidence that he was actually moonlighting elsewhere. Thus, the medical Director caused the withholding of his salary for the periods in question until he submitted his DTRs in May 2000. Can Dr. Chow prosecute the medical director for causing him undue injury in violation of the Anti-Graft and Corrupt Practices Act? A. B. C. D. Yes, since the medical Director acted with evident bad faith. No, since the medical director has full discretion in releasing the salary of government doctors. Yes, since his salary was withheld without prior hearing. No, since Dr. Chow brought it upon himself, having failed to submit the required DTRs.

B. C. D.

18. When a penal law is absolutely repealed such that the offense is decriminalized, a pending case charging the accused of the repealed crime is to be A. B. C. D. prosecuted still since the charge was valid when filed. dismissed without any precondition. dismissed provided the accused is not a habitual delinquent. prosecuted still since the offended party has a vested interest in the repealed law.

13. X, a tabloid columnist, wrote an article describing Y, a public official, as stupid, corrupt, and having amassed ill-gotten wealth. X relied on a source from Y's own office who fed him the information. Did X commit libel? A. B. C. D. Yes, since the article was libelous and inconsistent with good faith and reasonable care. No, since X but made a fair commentary on a matter of public interest. No, since X’s article constitutes privileged communication. No, since he wrote his article under the freedom enjoyed by the press.

19. In malversation of public funds, the offender’s return of the amount malversed has the following effect A. B. C. It is exculpatory. It is inculpatory, an admission of the commission of the crime. The imposable penalty will depend on what was not returned. It is mitigating.

14. The husband has for a long time physically and mentally tortured his wife. After one episode of beating, the wife took the husband’s gun and shot him dead. Under the circumstances, her act constitutes A. B. C. D. mitigating vindication of grave offense. battered woman syndrome, a complete self-defense. incomplete self-defense. mitigating passion and obfuscation.

D.

20. The exchanges of highly offensive words between two quarrelling women in the presence of a crowd of people constitute A. B. one count of grave slander against the woman who uttered the more insulting expressions. grave slander against the woman who started it and light slander against the other woman. two separate counts of light slander, one for each woman. two separate counts of grave slander, one against each of them.

15. There is violation of Art. 316, RPC (Other forms of Swindling) where A. B. C. D. the owner of property sells a property and subsequently rescinds the sale. the real property subject of the sale does not exist. the property was mortgaged for a usurious contract of loan. the owner disposes of his encumbered real property as if it is free from encumbrances.

C. D.

21. Any person who, having found lost property, shall fail to deliver the same to the local authorities or to its owner is liable for A. B. C. D. occupation or usurpation of personal property. civil damages only. theft. other deceits.

16. X, a police officer, placed a hood on the head of W, a suspected drug pusher, and watched as Y and Z, police trainees, beat up and tortured W to get his confession. X is liable as A. as accomplice in violation of the Anti-Torture Act.

22. A crime resulting from negligence, reckless imprudence, lack of foresight or lack of skill is called

Criminal Law
D. A. B. C. D. dolo. culpa. tortious crimes. quasi delict. Yes, since malice is not presumed in libel.

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28. X killed B, mistakenly believing that she was his wife, upon surprising her having sex with another man in a motel room. What is the criminal liability of X? A. B. C. D. None since he killed her under exceptional circumstances. None since he acted under a mistake of fact. Parricide. Homicide.

23. To mitigate his liability for inflicting physical injury to another, an accused with a physical defect must prove that such defect restricted his freedom of action and understanding. This proof is not required where the physical defect consists of A. B. C. D. a severed right hand. complete blindness. being deaf mute and dumb. a severed leg.

24. An extenuating circumstance, which has the same effect as a mitigating circumstance, is exemplified by A. B. C. D. the mother killing her 2-day old child to conceal her dishonor. the accused committing theft out of extreme poverty. the accused raping his victim in extreme state of passion. the accused surrendering the weapon he used in his crime to the authorities.

29. X draws a check upon request of Y, the payee, who told X that he would merely show the check to his creditor to gain more time to pay his account. The check bounced upon presentation by the creditor. Under the circumstances, who can be prosecuted for estafa based on the dishonored check? A. B. C. D. Y as the one who negotiated the check contrary to the agreement X as the drawer of the check Both X and Y based on conspiracy None

25. Three men gave Arnold fist blows and kicks causing him to fall. As they surrounded and continued hitting him, he grabbed a knife he had in his pocket and stabbed one of the men straight to the heart. What crime did Arnold commit? A. B. C. D. Homicide with incomplete self-defense, since he could have run from his aggressors. Homicide, since he knew that stabbing a person in the heart is fatal. Homicide mitigated by incomplete self-defense, since stabbing a person to the heart is excessive. No crime, since he needed to repel the aggression, employing reasonable means for doing so.

30. Ana visited her daughter Belen who worked as Caloy’s housemaid. Caloy was not at home but Debbie, a casual visitor in the house, verbally maligned Belen in Ana’s presence. Irked, Ana assaulted Debbie. Under the circumstances, dwelling is NOT regarded as aggravating because A. B. C. D. Dwelling did nothing to provoke Ana into assaulting Debbie. Caloy, the owner of the house, was not present. Debbie is not a dweller of the house. Belen, whom Debbie maligned, also dwells in the house.

31. It is a matter of judicial knowledge that certain individuals will kill others or commit serious offenses for no reason at all. For this reason, A. B. C. D. lack of motive can result in conviction where the crime and the accused's part in it are shown. motive is material only where there is no evidence of criminal intent. lack of motive precludes conviction. the motive of an offender is absolutely immaterial.

26. A, B, and C agreed to rob a house of its cash. A and B entered the house while C remained outside as lookout. After getting the cash, A and B decided to set the house on fire to destroy any evidence of their presence. What crime or crimes did C commit? A. B. C. D. Robbery and arson since arson took place as an incident of the robbery. Robbery and arson since C took no step to stop the arson. Just for robbery since he only agreed to it and served as lookout. Accomplice to robbery since his role in the crime was minimal.

32. Minority is a privileged mitigating circumstance which operates to reduce the penalty by a degree where the child is A. B. C. D. 15 years and below acting without discernment. above 15 years but below 18 acting without discernment. below 18 years acting with discernment. 18 years old at the time of the commission of the crime acting with discernment.

27. X, a court employee, wrote the presiding judge a letter, imputing to Y, also a court employee, the act of receiving an expensive gift from one of the parties in a pending case. Because of this, Y accused X of libel. Does Y need to prove the element of malice in the case? A. B. No, since malice is self-evident in the letter. Yes, malice is not presumed since X wrote the letter to the presiding judge who has a duty to act on what it states. No, since malice is presumed with respect to defamatory imputations.

33. The crime of robbery in an inhabited house or public building is mitigated when the offenders A. B. C. D. entered the house using false keys. although armed did not fire their weapons. entered through a window without breaking it. although armed took property valued at only P200.

C.

34. A private person who assists the escape of a person who committed robbery shall be liable

Criminal Law

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A. B. C. D.

as a principal to the crime of robbery. as an accessory to the crime of robbery. as a principal to the crime of obstruction of justice. as an accessory to the crime of obstruction of justice.

41. Culpa can either be a crime by itself or a mode of committing a crime. Culpa is a crime by itself in A. B. C. D. reckless imprudence resulting in murder. medical malpractice. serious physical Injuries thru reckless imprudence. complex crime of reckless imprudence resulting in serious physical injuries.

35. Which among the following circumstances do NOT qualify the crime of kidnapping? A. B. C. D. The victim is killed as a consequence of the detention. The offender is a public officer. Ransom is demanded. The victim is raped.

42. The mitigating circumstance of immediate vindication of a grave offense cannot be appreciated in a case where A. Following the killing of his adopted brother, P went to the place where it happened and killed S whom he found there. X kills Y who attempted to rape X’s wife. P severely maltreats S, a septuagenarian, prompting the latter to kill him. M killed R who slandered his wife.

36. Removing, concealing or destroying documents to defraud another constitutes the crime of estafa if committed by A. B. C. D. any public officer. a public officer officially entrusted with the document. private individuals who executed the same. private individuals. B. C. D.

37. Dagami concealed Bugna’s body and the fact that he killed him by setting Bugna’s house on fire. What crime or crimes did Dagami commit? A. B. C. D. Murder, the arson being absorbed already Separate crimes of murder and arson Arson, the homicide being absorbed already Arson with murder as a compound crime

43. To save himself from crashing into an unlighted truck abandoned on the road, Jose swerved his car to the right towards the graveled shoulder, killing two bystanders. Is he entitled to the justifying circumstance of state of necessity? A. B. C. No, because the bystanders had nothing to do with the abandoned truck on the road. No, because the injury done is greater than the evil to be avoided. Yes, since the instinct of self-preservation takes priority in an emergency. Yes, since the bystanders should have kept off the shoulder of the road.

38. Sam wrote a letter to his friends stating that Judge Odon loves obscene magazines and keeps these in his desk. Charged with libel, can Sam present proof that Judge Odon indeed loves obscene magazines and keeps these in his desk? A. B. C. D. No, since the imputation is not related to the duties of a judge. No, since Sam does not impute a crime to Judge Odon. No, since Sam imputes the commission of a crime to Judge Odon. Yes, since truth can be a valid defense in libel.

D.

44. The accused was shocked to discover his wife and their driver sleeping in the master’s bedroom. Outraged, the accused got his gun and killed both. Can the accused claim that he killed the two under exceptional circumstances? A. B. C. D. No, since the accused had time to reflect when he got his gun. No, since the accused did not catch them while having sexual intercourse. Yes, since the wife and their driver desecrated the marital bed. Yes, since the scene shows that they had an intimate relationship.

39. X, without intent to kill, aimed his gun at Z and fired it, hitting the latter who died as a consequence. Under the circumstances A. B. C. D. X cannot plead praetor intentionem since the intent to kill is presumed from the killing of the victim. X may plead praetor intentionem since he intended only to scare, not kill Z. X may plead aberratio ictus as he had no intention to hit Z. X may plead commission of only Discharge of Firearm as he had no intent to kill Z when he fired his gun.

45. The three accused forcibly took their victim from his car but the latter succeeded in freeing himself from their grip. What crime did the three accused commit? A. B. C. D. forcible abduction. frustrated kidnapping. attempted kidnapping. grave coercion.

40. Which of the following statements constitute Inciting to Sedition? A. B. Utterance of statements irritating or obnoxious to the ears of the police officers. Speeches extolling communism and urging the people to hold a national strike and paralyze commerce and trade. Leaders of jeepney and bus associations shouting “Bukas tuloy ang welga hanggang sa magkagulo na!” Speeches calling for resignation of high government officials.

46. Deeply enraged by his wife’s infidelity, the husband shot and killed her lover. The husband subsequently surrendered to the police. How will the court appreciate the mitigating circumstances of (i) passion or obfuscation, (ii) vindication of a grave offense, and (iii) voluntary surrender that the husband invoked and proved? A. It will appreciate passion or obfuscation and voluntary surrender as one mitigating circumstance and vindication of a grave offense as another.

C. D.

Criminal Law
B. C. D. It will appreciate all three mitigating circumstances separately. It will appreciate the three mitigating circumstances only as one. It will appreciate passion or obfuscation and vindication of a grave offense as just one mitigating circumstance and voluntary surrender as another.

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A. B. C. D.

Violation of the Trademark Law committed by an alien in the Philippines. Forgery of US bank notes committed in the Philippines. Crime committed by a Filipino in the disputed Spratly's Island. Plunder committed at his place of assignment abroad by a Philippine public officer.

47. The aggravating circumstance of uninhabited place is aggravating in murder committed A. B. C. D. on a banca far out at sea. in a house located in cul de sac. in a dark alley in Tondo. in a partly occupied condominium building.

54. X, Y and Z agreed among themselves to attack and kill A, a police officer, but they left their home-made guns in their vehicle before approaching him. What crime have they committed? A. B. C. D. Conspiracy to commit indirect assault. Attempted direct assault. Conspiracy to commit direct assault. Illegal possession of firearms.

48. The penalty of perpetual or temporary special disqualification for the exercise of the right of suffrage does NOT deprive the offender of the right A. B. C. D. to be elected to a public office. to vote in any popular election for a public office. to vote in a plebiscite. to hold any public office.

55. On hearing a hospital ward patient on the next bed, shrieking in pain and begging to die, Mona shut off the oxygen that was sustaining the patient, resulting in his death. What crime if any did Mona commit? A. B. C. D. Homicide. Murder if she deliberated on her action. Giving Assistance to Suicide. Euthanasia.

49. Without meaning anything, Z happened to stare into the eye of one of four men hanging out by a store which he passed. Taking offense, the four mauled and robbed him of his wages. Z went home, took a knife, and stabbed one of his attackers to death. Charged with murder, Z may raise the mitigating circumstance of A. B. C. D. praeter intentionem. incomplete self-defense provocation. passion or obfuscation. complete self-defense.

56. When committed outside the Philippine territory, our courts DO NOT have jurisdiction over the crime of A. B. C. D. treason. piracy. espionage. rebellion.

preceded

by

undue

57. Motive is generally IMMATERIAL in determining criminal liability EXCEPT when A. B. C. D. several offenders committed the crime but the court wants to ascertain which of them acted as leader. the evidence of the crime consists of both direct and circumstantial evidence. ascertaining the degree of penalty that may be imposed on the offender. the evidence of guilt of the accused is circumstantial.

50. A public officer who immediately returns the bribe money handed over to him commits A. B. C. D. no crime. attempted bribery. consummated bribery. frustrated bribery.

51. Direct bribery is a crime involving moral turpitude. From which of the following elements of direct bribery can moral turpitude be inferred? A. B. C. D. The offender receives a gift by himself or through another. The offender is a public officer. The offender takes a gift with a view to committing a crime in exchange. The act which the offender agrees to perform or which he executes is connected with his official duties.

58. Which of the following circumstances of dishonor of a check can be a basis for prosecution under the bouncing checks law? A. B. C. D. The check was returned unpaid with stamp “stop payment,” although the drawer’s deposit was sufficient. The check, drawn and issued in the Philippines, was dishonored by the drawee bank in a foreign country. The check was presented to the bank for payment 6 months after the date of issue. The drawer of the dishonored check paid its value within 5 days from notice of dishonor.

52. Insuperable cause is an exempting circumstance which may be applied to A. B. C. D. robbery. misprision of treason. homicide. rebellion.

59. X and his step-father have a long-standing enmity. One day, irked by an argument with his step-father, X smashed the windshield of his step-father’s brand new Audi sports car. X is liable for A. B. C. malicious mischief. malicious mischief with the alternative mitigating circumstance of relationship. malicious mischief with the alternative aggravating

53. Which of the following crimes is an exception to the Territoriality Rule in Criminal law?

Criminal Law
circumstance of relationship. the civil damage he caused. C. D. raises the penalty by two periods higher. is one which applies only in conjunction with another aggravating circumstance.

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D.

60. The classification of felonies into grave, less grave, and light is important in ascertaining A. B. C. D. if certain crimes committed on the same occasion can be complexed. the correct penalty for crimes committed through reckless imprudence. whether the offender is liable as an accomplice. what stage of the felony has been reached.

67. X inflicted serious injuries on Y. Because of delay in providing medical treatment to Y, he died. Is X criminally liable for the death of Y? A. Yes because the delay did not break the causal connection between X's felonious act and the injuries sustained by Y. Yes because any intervening cause between the infliction of injury and death is immaterial. No because the infliction of injury was not the immediate cause of the death. No because the delay in the administration of the medical treatment was an intervening cause.

B. C. D.

61. A child in conflict with the law shall enjoy all the rights of a child until A. B. C. D. he is found to have acted with discernment. his minority is setoff by some aggravating circumstance. he is proved to be 18 years or older. he forfeits such rights by gross misconduct and immorality.

68. In an attempted felony, the offender’s preparatory act A. B. C. D. itself constitutes an offense. must seem connected to the intended crime. must not be connected to the intended crime. requires another act to result in a felony.

62. Mr. P owns a boarding house where he knowingly allowed children to be videotaped while simulating explicit sexual activities. What is Mr. P's criminal liability, if any? A. B. C. D. Corruption of minors under the Penal Code Violation of the Child Pornography Act Violation of the Child Abuse Law None

69. X inflicted violent kicks on vital parts of E's body. E nevertheless was able to flee for fear of his life. Refusing to undergo treatment for his injuries, E died 3 days later. Is X liable for E’s death? A. B. C. D. No, since kicks on the body cannot cause death. No, since it took too long for death to occur. Yes, since E cannot be compelled to undergo medical treatment. Yes, since it was a natural result of the injuries X inflicted on E.

63. W allowed a man to have sex with her thinking that he was her husband. After realizing that the man was not her husband, W stabbed him to death. Under the circumstances, the mitigating circumstance in attendance constitutes A. B. C. D. defense of honor. immediate vindication of a grave offense. passion or obfuscation. self-defense.

70. A criminal action for rape is extinguished when the offender is forgiven by A. B. C. D. the offender’s wife who herself is the rape victim. his wife for having raped another woman. the rape victim’s husband. the rape victim herself.

64. The prescriptive period for bigamy is 15 years counted from the date of the A. B. C. D. discovery of the second marriage by the offended spouse. registration of the second marriage in the Local Civil Registry. celebration or solemnization of the second marriage. discovery of the second marriage by the authorities.

71. A battered woman claiming self-defense under the AntiViolence against Women and Children must prove that the final acute battering episode was preceded by A. B. C. D. 3 battering episodes. 4 battering episodes. 5 battering episodes. 2 battering episodes.

65. After properly waiving his Miranda rights, the offender led the police to where he buried the gun he used in shooting the victim. How does this affect his liability? A. B. C. D. This serves as an analogous mitigating circumstance of voluntary surrender. It has no effect at all since the law provides none. He is considered to have confessed to murder. This serves as aggravating circumstance of concealment of weapon.

72. A special complex crime is a composite crime A. B. C. D. made up of 2 or more crimes defined in the Penal Code. with its own definition and special penalty provided by the Penal Code. with its own definition and special penalty provided by a special penal law. made up of 2 or more crimes defined in the Penal Code and special penal laws.

66. A qualifying aggravating circumstance A. B. changes the description and the nature of the offense. increases the penalty to its next degree but absorbs all the other aggravating circumstances.

73. What court has jurisdiction when an Indonesian crew murders the Filipino captain on board a vessel of Russian registry while the vessel is anchored outside the breakwaters of

Commercial Law
the Manila bay? A. B. C. D. The Indonesian court. The Russian court. The Philippine court. Any court that first asserts jurisdiction over the case. sell my house worth Php1 Million. Signed, A.” Is the note negotiable? A. B. C. D. No, because the exercise of the option to pay lies with A, the maker and debtor. No, because it authorizes the sale of collateral securities in case the note is not paid at maturity. Yes, because the note is really payable to B or his order, the other provisions being merely optional. Yes, because an election to require something to be done in lieu of payment of money does not affect negotiability.

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74. X, intending to kill Y, a store owner, fired at Y from the street, but the shot killed not only Y but also Z who was in the store. As a case of aberratio ictus, it is punishable as a A. B. C. D. complex crime proper. special complex crime. continuing crime. compound crime.

75. A proposal to commit a felony is punishable only when the law specifically provides a penalty for it as in the case of proposal to commit A. B. C. D. rebellion. sedition. espionage. highway robbery.

4. ABC Corp. increased its capital stocks from Php10 Million to Php15 Million and, in the process, issued 1,000 new shares divided into Common Shares “B” and Common Shares “C.” T, a stockholder owning 500 shares, insists on buying the newly issued shares through a right of pre-emption. The company claims, however, that its By-laws deny T any right of preemption. Is the corporation correct? A. B. C. D. No, since the By-Laws cannot deny a shareholder his right of pre-emption. Yes, but the denial of his pre-emptive right extends only to 500 shares. Yes, since the denial of the right under the By-laws is binding on T. No, since pre-emptive rights are governed by the articles of incorporation.

COMMERCIAL LAW
1. P rode a Sentinel Liner bus going to Baguio from Manila. At a stop-over in Tarlac, the bus driver, the conductor, and the passengers disembarked for lunch. P decided, however, to remain in the bus, the door of which was not locked. At this point, V, a vendor, sneaked into the bus and offered P some refreshments. When P rudely declined, V attacked him, resulting in P suffering from bruises and contusions. Does he have cause to sue Sentinel Liner? A. Yes, since the carrier's crew did nothing to protect a passenger who remained in the bus during the stopover. No, since the carrier's crew could not have foreseen the attack. Yes, since the bus is liable for anything that goes wrong in the course of a trip. No, since the attack on P took place when the bus was at a stop-over.

5. M makes a promissory note that states: “I, M, promise to pay Php5,000.00 to B or bearer. Signed, M.” M negotiated the note by delivery to B, B to N, and N to O. B had known that M was bankrupt when M issued the note. Who would be liable to O? A. B. C. D. M and N since they may be assumed to know of M's bankruptcy N, being O's immediate negotiator of a bearer note B, M, and N, being indorsers by delivery of a bearer note B, having known of M's bankruptcy

B. C. D.

2. A cargo ship of X Shipping, Co. ran aground off the coast of Cebu during a storm and lost all its cargo amounting to Php50 Million. The ship itself suffered damages estimated at Php80 Million. The cargo owners filed a suit against X Shipping but it invoked the doctrine of limited liability since its vessel suffered an Php80 Million damage, more than the collective value of all lost cargo. Is X Shipping correct? A. B. C. D. Yes, since under that doctrine, the value of the lost cargo and the damage to the ship can be set-off. No, since each cargo owner has a separate and individual claim for damages. Yes, since the extent of the ship’s damage was greater than that of the value of the lost cargo. No, since X Shipping neither incurred a total loss nor abandoned its ship.

6. S delivered 10 boxes of cellphones to Trek Bus Liner, for transport from Manila to Ilocos Sur on the following day, for which S paid the freightage. Meanwhile, the boxes were stored in the bus liner’s bodega. That night, however, a robber broke into the bodega and stole S’s boxes. S sues Trek Bus Liner for contractual breach but the latter argues that S has no cause of action based on such breach since the loss occurred while the goods awaited transport. Who is correct? A. B. C. D. The bus liner since the goods were not lost while being transported. S since the goods were unconditionally placed with T for transportation. S since the freightage for the goods had been paid. The bus liner since the loss was due to a fortuitous event.

3. A writes a promissory note in favor of his creditor, B. It says: “Subject to my option, I promise to pay B Php1 Million or his order or give Php1 Million worth of cement or to authorize him to

7. X Corp. operates a call center that received orders for pizzas on behalf of Y Corp. which operates a chain of pizza restaurants. The two companies have the same set of corporate officers. After 2 years, X Corp. dismissed its call agents for no apparent reason. The agents filed a collective suit for illegal dismissal against both X Corp. and Y Corp. based on the doctrine of piercing the veil of corporate fiction. The latter set up the defense that the agents are in the employ of X Corp. which

Commercial Law
is a separate juridical entity. Is this defense appropriate? A. B. No, since the doctrine would apply, the two companies having the same set of corporate officers. No, the real employer is Y Corp., the pizza company, with X Corp. serving as an arm for receiving its outside orders for pizzas. Yes, it is not shown that one company completely dominates the finances, policies, and business practices of the other. Yes, since the two companies perform two distinct businesses. Z, to whom Y owed Php30,000.00. If X has no defense at all against Y, for how much may Z collect from X? A. Php20,000.00, as he is a holder for value to the extent of the difference between Y's debt and the value of the note. Php30,000.00, as he is a holder for value to the extent of his lien. Php50,000.00, but with the obligation to hold Php20,000.00 for Y's benefit. D. None, as Z's remedy is to run after his debtor, Y.

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B. C. D.

C.

D.

8. A negotiable instrument can be indorsed by way of a restrictive indorsement, which prohibits further negotiation and constitutes the indorsee as agent of the indorser. As agent, the indorsee has the right, among others, to A. B. C. D. demand payment of the instrument only. notify the drawer of the payment of the instrument. receive payment of the instrument. instruct that payment be made to the drawee.

14. 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. B. C. D. those doing business with such clients. unknown principals. the covered institution. such clients.

9. Under the Negotiable Instruments Law, a signature by procuration operates as a notice that the agent has but a limited authority to sign. Thus, a person who takes a bill that is drawn, accepted, or indorsed by procuration is duty-bound to inquire into the extent of the agent's authority by: A. B. C. D. examining the agent’s special power of attorney. examining the bill to determine the extent of such authority. asking the agent about the extent of such authority. asking the principal about the extent of such authority.

15. It is settled that neither par value nor book value is an accurate indicator of the fair value of a share of stock of a corporation. As to unpaid subscriptions to its shares of stock, as they are regarded as corporate assets, they should be included in the A. B. C. D. capital value. book value. par value. market value.

10. Under the Negotiable Instruments Law, if the holder has a lien on the instrument which arises either from a contract or by implication of law, he would be a holder for value to the extent of A. B. C. D. his successor's interest. his predecessor's interest. the lien in his favor. the amount indicated on the instrument's face.

16. P sold to M 10 grams of shabu worth Php5,000.00. As he had no money at the time of the sale, M wrote a promissory note promising to pay P or his order Php5,000. P then indorsed the note to X (who did not know about the shabu), and X to Y. Unable to collect from P, Y then sued X on the note. X set up the defense of illegality of consideration. Is he correct? A. B. C. No, since X, being a subsequent indorser, warrants that the note is valid and subsisting. No, since X, a general indorser, warrants that the note is valid and subsisting. Yes, since a void contract does not give rise to any right. Yes, since the note was born of an illegal consideration which is a real defense.

11. The liability of a common carrier for the goods it transports begins from the time of A. B. C. D. conditional receipt. constructive receipt. actual receipt. either actual or constructive receipt.

D.

17. In a contract of carriage, the common carrier is liable for the injury or death of a passenger resulting from its employee’s fault although the latter acted beyond the scope of his authority. This is based on the A. B. C. D. rule that the carrier has an implied duty to transport the passenger safely. rule that the carrier has an express duty to transport the passenger safely Doctrine of Respondeat Superior. rule in culpa aquiliana.

12. On X’s failure to pay his loan to ABC Bank, the latter foreclosed the Real Estate Mortgage he executed in its favor. The auction sale was set for Dec. 1, 2010 with the notices of sale published as the law required. The sale was, however, cancelled when Dec. 1, 2010 was declared a holiday and rescheduled to Jan. 10, 2011 without republication of notice. The auction sale then proceeded on the new date. Under the circumstances, the auction sale is A. B. C. D. rescissible. unenforceable. void. voidable.

18. A holder in due course holds the instrument free from any defect of title of prior parties and free from defenses available to prior parties among themselves. An example of such a defense is A. B. C. fraud in inducement. duress amounting to forgery. fraud in esse contractus.

13. X executed a promissory note with a face value of Php50,000.00, payable to the order of Y. Y indorsed the note to

Commercial Law
D. alteration. order, with Y as maker. X then indorsed it as follows: “Subject to no recourse, pay to Z. Signed, X.” When Z went to collect from Y, it turned out that Y's signature was forged. Z now sues X for collection. Will it prosper? A. B. C. D. Yes, because X, as a conditional indorser, warrants that the note is genuine. Yes, because X, as a qualified indorser, warrants that the note is genuine. No, because X made a qualified indorsement. No, because a qualified indorsement does not include the warranty of genuineness.

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19. In elections for the Board of Trustees of non-stock corporations, members may cast as many votes as there are trustees to be elected but may not cast more than one vote for one candidate. This is true A. B. C. D. unless set aside by the members in plenary session. in every case even if the Board of Trustees resolves otherwise. unless otherwise provided in the Articles of Incorporation or in the By-laws. in every case even if the majority of the members decide otherwise during the elections.

20. The rule is that the valuation of the shares of a stockholder who exercises his appraisal rights is determined as of the day prior to the date on which the vote was taken. This is true A. B. C. D. regardless of any depreciation or appreciation in the share's fair value. regardless of any appreciation in the share's fair value. regardless of any depreciation in the share's fair value. only if there is no appreciation or depreciation in the share's fair value.

25. A bill of exchange has T for its drawee, U as drawer, and F as holder. When F went to T for presentment, F learned that T is only 15 years old. F wants to recover from U but the latter insists that a notice of dishonor must first be made, the instrument being a bill of exchange. Is he correct? A. B. C. D. Yes, since a notice of dishonor is essential to charging the drawer. No, since T can waive the requirement of notice of dishonor. No, since F can treat U as maker due to the minority of T, the drawee. Yes, since in a bill of exchange, notice of dishonor is at all times required.

21. T Shipping, Co. insured all of its vessels with R 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 ship, 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. B. C. D. Yes, because the insurance policy covered any or all damage arising from perils of the sea. Yes, since there appears to have been no fault on the part of the shipowner and shipcaptain. No, since the proximate cause of the damage was the breach of warranty of seaworthiness of the ship. 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.

26. 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. B. C. D. at the time of the issuance of the policy. at any time before the payment of premium. at the time of the payment of the premium. at any time before the policy becomes effective.

27. T, 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. No, because no reasonable ground for avoiding a peril existed at the time of the deviation. No, because T relied merely on his supposed gift of prophecy. Yes, because the deviation took place based on a reasonable belief of the captain.

22. 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. B. C. D. Yes, since X and Y render services to Z. No, since X and Y have no pecuniary interest on the life of Z arising from their employment with him. No, since Z has no pecuniary interest in the lives of X and Y arising from their employment with him. Yes, since X and Y are Z’s employees.

B. C. D.

23. 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. B. C. D. No one, as there is merely a partnership contract among A, B and C. Both B and C, as they are your partners. Only C, as he is an industrial partner. Only B, as he is a capitalist partner.

28. X, drawee of a bill of exchange, wrote the words: “Accepted, with promise to make payment within two days. Signed, X.” The drawer questioned the acceptance as invalid. Is the acceptance valid? A. B. C. D. Yes, because the acceptance is in reality a clear assent to the order of the drawer to pay. Yes, because the form of the acceptance is really immaterial. No, because the acceptance must be a clear assent to the order of the drawer to pay. No, because the document must not express that the drawee will perform his promise within two days.

24. X is the holder of an instrument payable to him (X) or his

Commercial Law
29. X came up with a new way of presenting a telephone directory in a mobile phone, which he dubbed as the “iTel” and which uses lesser time for locating names and telephone numbers. May X have his “iTel” copyrighted in his name? A. B. C. D. No, because it is a mere system or method. Yes, because it is an original creation. Yes, because it entailed the application of X's intellect. No, because it did not entail any application of X's intellect. an election for its six-member Board of Trustees. X, Y and Z, who are minority members of the foundation, wish to exercise cumulative voting in order to protect their interest, although the Foundation's Articles and By-laws are silent on the matter. As to each of the three, what is the maximum number of votes that he/she can cast? A. B. C. D. 6 9 12 3

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30. D, debtor of C, wrote a promissory note payable to the order of C. C's brother, M, misrepresenting himself as C’s agent, obtained the note from D, then negotiated it to N after forging C's signature. N indorsed it to E, who indorsed it to F, a holder in due course. May F recover from E? A. B. C. D. No, since the forgery of C's signature results in the discharge of E. Yes, since only the forged signature is inoperative and E is bound as indorser. No, since the signature of C, the payee, was forged. Yes, since the signature of C is immaterial, he being the payee.

36. If the drawer and the drawee are the same person, the holder may present the instrument for payment without need of a previous presentment for acceptance. In such a case, the holder treats it as a A. B. C. D. non-negotiable instrument. promissory note. letter of credit. check.

31. A material alteration of an instrument without the assent of all parties liable thereon results in its avoidance, EXCEPT against a A. B. C. D. prior indorsee. subsequent acceptor. subsequent indorser. prior acceptor.

37. D draws a bill of exchange that states: “One month from date, pay to B or his order Php100,000.00. Signed, D.” The drawee named in the bill is E. B negotiated the bill to M, M to N, N to O, and O to P. Due to non-acceptance and after proceedings for dishonor were made, P asked O to pay, which O did. From whom may O recover? A. B. C. D. B, being the payee N, as indorser to O E, being the drawee D, being the drawer

32. X constituted a chattel mortgage on a car (valued at Php1 Million pesos) to secure a P500,000.00 loan. For the mortgage to be valid, X should have A. B. C. D. the right to mortgage the car to the extent of half its value. ownership of the car. unqualified free disposal of his car. registered the car in his name.

38. T, an associate attorney in XYZ Law Office, wrote a newspaper publisher a letter disputing a columnist’s claim about an incident in the attorney’s family. T used the law firm’s letterhead and its computer in preparing the letter. T also requested the firm’s messenger to deliver the letter to the publisher. Who owns the copyright to the letter? A. B. T, since he is the original creator of the contents of the letter. Both T and the publisher, one wrote the letter to the other who has possession of it. The law office since T was an employee and he wrote it on the firm’s letterhead. The publisher to whom the letter was sent.

33. B borrowed Php1 million from L and offered to him his BMW car worth Php1 Million as collateral. B then executed a promissory note that reads: “I, B, promise to pay L or bearer the amount of Php1 Million and to keep my BMW car (loan collateral) free from any other encumbrance. Signed, B.” Is this note negotiable? A. B. C. D. Yes, since it is payable to bearer. Yes, since it contains an unconditional promise to pay a sum certain in money. No, since the promise to just pay a sum of money is unclear. No, since it contains a promise to do an act in addition to the payment of money.

C. D.

39. E received goods from T for display and sale in E's store. E was to turn over to T the proceeds of any sale and return the ones unsold. To document their agreement, E executed a trust receipt in T’s favor covering the goods. When E failed to turn over the proceeds from his sale of the goods or return the ones unsold despite demand, he was charged in court for estafa. E moved to dismiss on the ground that his liability is only civil. Is he correct? A. No, since he committed fraud when he promised to pay for the goods and did not. No, since his breach of the trust receipt agreement subjects him to both civil and criminal liability for estafa. Yes, since E cannot be charged with estafa over goods covered a trust receipt. Yes, since it was merely a consignment sale and the buyer could not pay.

34. A bank can be placed under receivership when, if allowed to continue in business, its depositors or creditors would incur A. B. C. D. probable losses inevitable losses possible losses a slight chance of losses

B.

C. D.

35. EFG Foundation, Inc., a non-profit organization, scheduled

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40. The authorized alteration of a warehouse receipt which does not change its tenor renders the warehouseman liable according to the terms of the receipt A. B. C. D. in its original tenor if the alteration is material. in its original tenor. as altered if there is fraud. as altered. freed from liability? A. B. C. D. No, since by accepting, E admits the existence of the drawer. No, since by accepting, E warrants that he is solvent. Yes, if E was not aware of that fact at the time of acceptance. Yes, since a bill of exchange with a fictitious drawer is void and inexistent.

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41. Any agreement binding upon the holder to extend the time of payment or to postpone the holder's right to enforce the instrument results in the discharge of the party secondarily liable unless made with the latter's consent. This agreement refers to one which the holder made with the A. B. C. D. principal debtor. principal creditor. secondary creditor. secondary debtor.

46. Due to his debt to C, D wrote a promissory note which is payable to the order of C. C's brother, M, misrepresenting himself as agent of C, obtained the note from D. M then negotiated the note to N after forging the signature of C. May N enforce the note against D? A. B. C. D. Yes, since D is the principal debtor. No, since the signature of C was forged. No, since it is C who can enforce it, the note being payable to the order of C. Yes, since D, as maker, is primarily liable on the note.

42. Upon execution of a trust receipt over goods, the party who is obliged to release such goods and who retains security interest on those goods, is called the A. B. C. D. holder. shipper. entrustee. entrustor.

43. X, warehouseman, sent a text message to Y, to whom X had issued a warehouse receipt for Y's 500 sacks of corn, notifying him of the due date and time to settle the storage fees. The message stated also that if Y does not settle the warehouse charges within 10 days, he will advertise the goods for sale at a public auction. When Y ignored the demand, X sold 100 sacks of corn at a public auction. For X’s failure to comply with the statutory requirement of written notice to satisfy his lien, the sale of the 100 sacks of corn is A. B. C. D. voidable. rescissible. unenforceable. void.

47. T Corp. has a corporate term of 20 years under its Articles of Incorporation or from June 1, 1980 to June 1, 2000. On June 1, 1991 it amended its Articles of Incorporation to extend its life by 15 years from June 1, 1980 to June 1, 2015. The SEC approved this amendment. On June 1, 2011, however, T Corp decided to shorten its term by 1 year or until June 1, 2014. Both the 1991 and 2011 amendments were approved by majority vote of its Board of Directors and ratified in a special meeting by its stockholders representing at least 2/3 of its outstanding capital stock. The SEC, however, disapproved the 2011 amendment on the ground that it cannot be made earlier than 5 years prior to the expiration date of the corporate term, which is June 1, 2014. Is this SEC disapproval correct? A. No, since the 5-year rule on amendment of corporate term applies only to extension, not to shortening, of term. Yes, any amendment affecting corporate term cannot be made earlier than 5 years prior to the corporation’s expiration date. No, since a corporation can in fact have a corporate life of 50 years. Yes, the amendment to shorten corporate term cannot be made earlier than 5 years prior to the corporation’s expiration date.

B.

C. D.

44. On June 1, 2011, X mailed to Y Insurance, Co. his application for life insurance, with payment for 5 years of premium enclosed in it. On July 21, 2011, 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, 2011. But, as it happened, on August 4, 2011, 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. No, since there is no privity of contract between the insurer and X’s heirs. No, since X had no knowledge of the insurer's acceptance of his application before he died. Yes, since under the Manifestation Theory, the insurance contract was perfected upon acceptance of the insurer of X's application.

48. B, while drunk, accepted a passenger in his taxicab. B then drove the taxi recklessly, and inevitably, it crashed into an electric post, resulting in serious physical injuries to the passengers. The latter then filed a suit for tort against B's operator, A, but A raised the defense of having exercised extraordinary diligence in the safety of the passenger. Is his defense tenable? A. B. Yes, as a common carrier can rebut the presumption of negligence by raising such a defense. No, as in tort actions, the proper defense is due diligence in the selection and supervision of the employee by the employer. No, as B, the common carrier's employee, was obviously negligent due to his intoxication. Yes, as a common carrier can invoke extraordinary diligence in the safety of passengers in tort cases.

B. C. D.

C. D.

45. A bill of exchange has D as drawer, E as drawee and F as payee. The bill was then indorsed to G, G to H, and H to I. I, the current holder presented the bill to E for acceptance. E accepted but, as it later turned out, D is a fictitious person. Is E

49.X is a director in T Corp. who was elected to a 1-year term on Feb. 1, 2010. On April 11, 2010, X resigned and was

Commercial Law
replaced by R, who assumed as director on May 17, 2010. On Nov. 21, 2010, R died. S was then elected in his place. Until which time should S serve as director? A. B. C. D. April 11, 2011. Feb. 1, 2011. May 17, 2011. Nov. 21, 2011. subject to registration. 54. 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. B. C. D. actual. constructive first and if it fails, then actual. either actual or constructive. constructive.

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50. M, the maker, issued a promissory note to P, the payee which states: “I, M, promise to pay P or order the amount of Php1 Million. Signed, M.” P negotiated the note by indorsement to N, then N to O also by indorsement, and O to Q, again by indorsement. But before O indorsed the note to Q, O's wife wrote the figure “2” on the note after “Php1” without O's knowledge, making it appear that the note is for Php12 Million. For how much is O liable to Q? A. B. C. D. Php1 Million since it is the original tenor of the note. Php1 Million since he warrants that the note is genuine and in all respects what it purports to be. Php12 Million since he warrants his solvency and that he has a good title to the note. Php12 Million since he warrants that the note is genuine and in all respects what it purports to be.

55. The Corporation Code sanctions a contract between two or more corporations which have interlocking directors, provided there is no fraud that attends it and it is fair and reasonable under the circumstances. The interest of an interlocking director in one corporation may be either substantial or nominal. It is nominal if his interest: A. B. C. D. does not exceed 25% of the outstanding capital stock. exceeds 25% of the outstanding capital stock. exceeds 20% of the outstanding capital stock. does not exceed 20% of the outstanding capital stock.

51. X Corp., whose business purpose is to manufacture and sell vehicles, invested its funds in Y Corp., an investment firm, through a resolution of its Board of Directors. The investment grew tremendously on account of Y Corp.'s excellent business judgment. But a minority stockholder in X Corp. assails the investment as ultra vires. Is he right and, if so, what is the status of the investment? A. B. C. D. Yes, it is an ultra vires act of the corporation itself but voidable only, subject to stockholders’ ratification. Yes, it is an ultra vires act of its Board of Directors and thus void. Yes, it is an ultra vires act of its Board of Directors but voidable only, subject to stockholders’ ratification. Yes, it is an ultra vires act of the corporation itself and, consequently, void.

56. X, an amateur astronomer, stumbled upon what appeared to be a massive volcanic eruption in Jupiter while peering at the planet through his telescope. The following week, X, without notes, presented a lecture on his findings before the Association of Astronomers of the Philippines. To his dismay, he later read an article in a science journal written by Y, a professional astronomer, repeating exactly what X discovered without any attribution to him. Has Y infringed on X's copyright, if any? A. B. C. No, since X did not reduce his lecture in writing or other material form. Yes, since the lecture is considered X’s original work. No, since no protection extends to any discovery, even if expressed, explained, illustrated, or embodied in a work. Yes, since Y’s article failed to make any attribution to X.

D.

52. Notice of dishonor is not required to be made in all cases. One instance where such notice is not necessary is when the indorser is the one to whom the instrument is supposed to be presented for payment. The rationale here is that the indorser A. B. C. D. already knows of the dishonor and it makes no sense to notify him of it. is bound to make the acceptance in all cases. has no reason to expect the dishonor of the instrument. must be made to account for all his actions.

57. In case of disagreement between the corporation and a withdrawing stockholder who exercises his appraisal right regarding the fair value of his shares, a three-member group shall by majority vote resolve the issue with finality. May the wife of the withdrawing stockholder be named to the three-member group? A. B. C. D. No, the wife of the withdrawing shareholder is not a disinterested person. Yes, since she could best protect her husband's shareholdings. Yes, since the rules do not discriminate against wives. No, since the stockholder himself should sit in the three-member group.

53. “Eagleson Refillers, Co.,” a firm that sells water to the public, opposes the trade name application of “Eagleson Laundry, Co.,” on the ground that such trade name tends to deceive trade circles or confuse the public with respect to the water firm’s registered trade name. Will the opposition prosper? A. B. C. D. Yes, since such use is likely to deceive or confuse the public. Yes, since both companies use water in conducting their business. No, since the companies are not engaged in the same line of business. No, since the root word “Eagle” is a generic name not

58. Apart from economic rights, the author of a copyright also has moral rights which he may transfer by way of assignment. The term of these moral rights shall last A. B. C. D. during the author's lifetime and for 50 years after his death. forever. 50 years from the time the author created his work. during the author's lifetime.

59. Which of the following indorsers expressly warrants in negotiating an instrument that 1) it is genuine and true; 2) he

Commercial Law
has a good title to it; 3) all prior parties have capacity to negotiate; and 4) it is valid and subsisting at the time of his indorsement? A. B. C. D. The irregular indorser. The regular indorser. The general indorser. The qualified indorser. 64. If an insurance policy prohibits additional insurance on the property insured without the insurer's consent, such provision being valid and reasonable, a violation by the insured A. B. C. D. 60. 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. B. C. D. Their express stipulation in the contract of insurance. The equitable assignment that results from the insurer’s payment of the insured. The insured’s formal assignment of his right to indemnification to the insurer. The insured’s endorsement of its claim to the insurer. reduces the value of the policy. avoids the policy. offsets the value of the policy with the additional insurances’s value. forfeits premiums already paid.

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65. X found a check on the street, drawn by Y against ABC Bank, with Z as payee. X forged Z's signature as an indorser, then indorsed it personally and delivered it to DEF Bank. The latter, in turn, indorsed it to ABC Bank which charged it to the Y’s account. Y later sued ABC Bank but it set up the forgery as its defense. Will it prosper? A. B. C. D. No, since the payee's signature has been forged. No, since Y’s remedy is to run after the forger, X. Yes, since forgery is only a personal defense. Yes, since ABC Bank is bound to know the signature of Y, its client.

61. X invented a device which, through the use of noise, can recharge a cellphone battery. He applied for and was granted a patent on his device, effective within the Philippines. As it turns out, a year before the grant of X's patent, Y, also an inventor, invented a similar device which he used in his cellphone business in Manila. But X files an injunctive suit against Y to stop him from using the device on the ground of patent infringement. Will the suit prosper? A. B. C. D. No, since the correct remedy for X is a civil action for damages. No, since Y is a prior user in good faith. Yes, since X is the first to register his device for patent registration. Yes, since Y unwittingly used X’s patented invention.

66. The rule is that no stock dividend shall be issued without the approval of stockholders representing at least 2/3 of the outstanding capital stock at a regular or special meeting called for the purpose. As to other forms of dividends: A. B. C. D. a mere majority of the entire Board of Directors applies. a mere majority of the quorum of the Board of Directors applies. a mere majority of the votes of stockholders representing the outstanding capital stock applies. the same rule of 2/3 votes applies.

62. P, a sales girl in a flower shop at the Ayala Station of the Metro Rail Transit (MRT) bought two tokens or tickets, one for her ride to work and another for her ride home. She got to her flower shop where she usually worked from 8 a.m. to 5 p.m. At about 3 p.m., while P was attending to her duties at the flower shop, two crews of the MRT got into a fight near the flower shop, causing injuries to P in the process. Can P sue the MRT for contractual breach as she was within the MRT premises where she would shortly take her ride home? A. B. C. No, since the incident took place, not in an MRT train coach, but at the MRT station. No, since P had no intention to board an MRT train coach when the incident occured. Yes, since she already had a ticket for her ride home and was in the MRTs premises at the time of the incident. Yes, since she bought a round trip ticket and MRT had a duty while she was at its station to keep her safe for her return trip.

67. X, at Y’s request, executed a Real Estate Mortgage (REM) on his (X’s) land to secure Y's loan from Z. Z successfully foreclosed the REM when Y defaulted on the loan but half of Y's obligation remained unpaid. May Z sue X to enforce his right to the deficiency? A. B. C. D. Yes, but solidarily with Y. Yes, since X’s is deemed to warrant that his land would cover the whole obligation. No, since it is the buyer at the auction sale who should answer for the deficiency. No, because X is not Z’s debtor.

68. May a publicly listed universal bank own 100% of the voting stocks in another universal bank and in a commercial bank? A. B. C. D. Yes, if with the permission of the Bangko Sentral ng Pilipinas. No, since it has no power to invest in equities. Yes, as there is no prohibition on it. No, since under the law, the 100% ownership on voting stocks must be in either bank only.

D.

63. Forgery of bills of exchange may be subdivided into, a) forgery of an indorsement on the bill and b) forgery of the drawer's signature, which may either be with acceptance by the drawee, or A. B. C. D. with acceptance but the bill is paid by the drawee. without acceptance but the bill is paid by the drawer. without acceptance but the bill is paid by the drawee. with acceptance but the bill is paid by the drawer.

69. Perils of the ship, under marine insurance law, refer to loss which in the ordinary course of events results from A. B. C. D. natural and inevitable actions of the sea. natural and ordinary actions of the sea. unnatural and inevitable actions of the sea. unnatural and ordinary actions of the sea.

70. Under the Intellectual Property Code, lectures, sermons,

Commercial Law
addresses or dissertations prepared for oral delivery, whether or not reduced in writing or other material forms, are regarded as C. A. B. C. D. non-original works. original works. derivative works. not subject to protection. there must first be presentment for payment and dishonor by the maker. No, since the absolute rule is that there is no need for presentment for payment and dishonor to hold an indorser liable. Yes, since the secondary liability of Y and Z would only arise after presentment for payment and dishonor by the maker.

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D.

71. Can a drawee who accepts a materially altered check recover from the holder and the drawer? A. B. C. D. No, he cannot recover from either of them. Yes from both of them. Yes but only from the drawer. Yes but only from the holder.

76. The Board of Directors of XYZ Corp. unanimously passed a Resolution approving the taking of steps that in reality amounted to willful tax evasion. On discovering this, the government filed tax evasion charges against all the company’s members of the board of directors. The directors invoked the defense that they have no personal liability, being mere directors of a fictional being. Are they correct? A. No, since as a rule only natural persons like the members of the board of directors can commit corporate crimes. Yes, since it is the corporation that did not pay the tax and it has a personality distinct from its directors. Yes, since the directors officially and collectively performed acts that are imputable only to the corporation. No, since the law makes directors of the corporation solidarily liable for gross negligence and bad faith in the discharge of their duties.

72. The rule is that the intentional cancellation of a person secondarily liable results in the discharge of the latter. With respect to an indorser, the holder's right to cancel his signature is: A. B. C. D. without limitation. not limited to the case where the indorsement is necessary to his title. limited to the case where the indorsement is not necessary to his title. limited to the case where the indorsement is necessary to his title.

B. C.

D.

73. 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. B. C. D. Yes, since the previous hospitalization would influence the insurer in deciding whether to grant X's application. No, since Y may be regarded as ABC’s agent and he already knew of X’s previous hospitalization. Yes, it would constitute concealment that amounts to misrepresentation on X's part. No, since the previous illness is not a material fact to the insurance coverage.

77. T is the registered trademark owner of "CROCOS" which he uses on his ready-to-wear clothes. Banking on the popularity of T's trade mark, B came up with his own "CROCOS" mark, which he then used for his "CROCOS" burgers. T now sues B for trademark infringement but B argues that his product is a burger, hence, there is no infringement. Is B correct? A. No, since the owner of a well-known mark registered in the Philippines has rights that extends even to dissimilar kinds of goods. Yes, since the right of the owner of a well-known mark registered in the Philippines does not extend to goods which are not of the same kind. Yes, as B was in bad faith in coming up with his own "CROCOS" mark. No, since unlike T, he did not register his own "CROCOS" mark for his product.

B.

C. D.

74. Several American doctors wanted to set up a group clinic in the Philippines so they could render modern medical services. If the clinic is to be incorporated under our laws, what is the required foreign equity participation in such a corporation? A. B. C. D. 40% 0% 60% 70%

78. A, the proprietor of a fleet of ten taxicabs, decides to adopt, as his business name, “A Transport Co., Inc.” May this be allowed? A. B. C. D. No, it would be deceptive since he is a proprietor, not a corporation. No, since “A” is a generic name, not suitable for registration. Yes, since his line of business is public transportation. Yes, since such name would give his business a corporate identity.

75. X executed a promissory note in favor of Y by way of accommodation. It says: “Pay to Y or order the amount of Php50,000.00. Signed, X.” Y then indorsed the note to Z, and Z to T. When T sought collection from Y, the latter countered as indorser that there should have been a presentment first to the maker who dishonors it. Is Y correct? A. No, since Y is the real debtor and thus, there is no need for presentment for payment and dishonor by the maker. Yes, since as an indorser who is secondarily liable,

79. T delivers two refrigerators to the warehouse of W who then issues a negotiable receipt undertaking the delivery of the refrigerators to “T or bearer.” T entrusted the receipt to B for safekeeping only. B negotiated it, however, to F who bought it in good faith and for value. Who is entitled to the delivery of the refrigerators? A. B. T, since he is the real owner of the refrigerators. F, since he is a purchaser in good faith and for value.

B.

Commercial Law
C. D. B, since T entrusted the receipt to him. W, since he has as a warehouseman a lien on the goods. D. Y, being the owner of the goods 85. A promissory note states, on its face: “I, X, promise to pay Y the amount of Php 5,000.00 five days after completion of the ongoing construction of my house. Signed, X.” Is the note negotiable? A. B. C. D. 81. In a special meeting called for the purpose, 2/3 of the stockholders representing the outstanding capital stock in X. Co. authorized the company's Board of Directors to amend its Bylaws. By majority vote, the Board then approved the amendment. Is this amendment valid? A. B. C. D. No since the stockholders cannot delegate their right to amend the By-laws to the Board. Yes since the majority votes in the Board was sufficient to amend the By-laws. No, because the voting in the Board should have been by majority of a quorum. Yes since the votes of 2/3 of the stockholders and majority of the Board were secured. Yes, since it is payable at a fixed period after the occurrence of a specified event. No, since it is payable at a fixed period after the occurrence of an event which may not happen. Yes, since it is payable at a fixed period or determinable future time. No, since it should be payable at a fixed period before the occurrence of a specified event.

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80. The Articles of Incorporation must be accompanied by a Treasurer's Affidavit certifying under oath, among others, that the total subscription paid is: A. B. C. D. not less than P25,000.00. not more than P5,000.00. not less than P5,000.00. not more than P25,000.00.

86. P sold to M a pair of gecko (tuko) for Php50,000.00. M then issued a promissory note to P promising to pay the money within 90 days. Unknown to P and M, a law was passed a month before the sale that prohibits and declares void any agreement to sell gecko in the country. If X acquired the note in good faith and for value, may he enforce payment on it? A. B. C. D. No, since the law declared void the contract on which the promissory note was founded. No, since it was not X who bought the gecko. Yes, since he is a holder in due course of a note which is distinct from the sale of gecko. Yes, since he is a holder in due course and P and M were not aware of the law that prohibited the sale of gecko.

82. A group of Malaysians wanted to invest in the Philippines’ insurance business. After negotiations, they agreed to organize "FIMA Insurance Corp." with a group of Filipino businessmen. FIMA would have a PhP50 Million paid up capital, PhP40 Million of which would come from the Filipino group. All corporate officers would be Filipinos and 8 out of its 10- member Board of Directors would be Filipinos. Can FIMA operate an insurance business in the Philippines? A. B. No, since an insurance company must have at least PhP75 Million paid-up capital. Yes, since there is substantial compliance with our nationalization laws respecting paid-up capital and Filipino dominated Board of Directors. Yes, since FIMA’s paid up capital more than meets the country’s nationalization laws. No, since an insurance company should be 100% owned by Filipinos.

87. P authorized A to sign a bill of exchange in his (P’s) name. The bill reads: “Pay to B or order the sum of Php1 million. Signed, A (for and in behalf of P) .” The bill was drawn on P. B indorsed the bill to C, C to D, and D to E. May E treat the bill as a promissory note? A. B. C. D. No, because the instrument is payable to order and has been indorsed several times. Yes, because the drawer and drawee are one and the same person. No, because the instrument is a bill of exchange. Yes, because A was only an agent of P.

C. D.

83. Under the Public Service Act, an administrative agency has the power to approve provisionally the rates of public utilities without a hearing in case of urgent public needs. The exercise of this power is A. B. C. D. supervisory. absolute. discretionary. mandatory.

88. Z wrote out an instrument that states: “Pay to X the amount of Php1 Million for collection only. Signed, Z.” X indorsed it to his creditor, Y, to whom he owed Php1 million. Y now wants to collect and satisfy X's debt through the Php1 million on the check. May he validly do so? A. B. C. D. Yes, since the indorsement to Y is for Php1 Million. No, since Z is not a party to the loan between X and Y. No, since X is merely an agent of Z, his only right being to collect. D. Yes, since X owed Y Php1 Million.

84. X, creditor of Y, obtained a judgment in his favor in connection with Y's unpaid loan to him. The court's sheriff then levied on the goods that Y stored in T's warehouse, for which the latter issued a warehouse receipt. A month before the levy, however, Z bought the warehouse receipt for value. Who has a better right over the goods? A. B. C. T, being the warehouseman with a lien on the goods Z, being a purchaser for value of the warehouse receipt X, being Y’s judgment creditor

89. 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 right? A. Yes, since X Shipping should have ratified its agent’s

Commercial Law
action. No, since T, as agent of X Shipping who procured the insurance, can also give notice of abandonment for his principal. Yes, since only the agent of X Shipping relayed the fact of abandonment. No, since in the first place, the damage was more than ¾ of the ship's value. B. C. D. Yes, since X’ services may be regarded as the consideration. No, since Y actually made a conditional donation in X’s favor. No, since it is in fact an innominate contract between X and Y.

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B.

C. D.

90. A law was passed disqualifying former members of Congress from sitting in the Board of Directors of governmentowned or controlled corporations. Because of this, the Board of Directors of ABC Corp., a government-owned and controlled corporation, disqualified C, a former Congressman, from continuing to sit as one of its members. C objected, however, insisting that under the Corporation Code members of the board of directors of corporations may only be removed by vote of stockholders holding 2/3 of its outstanding capital stock in a regular or special meeting called for that purpose. Is C correct? A. Yes, since the new law cannot be applied to members of the board of directors already elected prior to its passage. No, since the disqualification takes effect by operation of law, it is sufficient that he was declared no longer a member of the board. Yes, since the provisions of the Corporation Code applies as well to government-owned and controlled corporations. No, since the board has the power to oust him even without the new law.

94. A bill of exchange states on its face: “One (1) month after sight, pay to the order of Mr. R the amount of Php50,000.00, chargeable to the account of Mr. S. Signed, Mr. T.” Mr. S, the drawee, accepted the bill upon presentment by writing on it the words “I shall pay Php30,000.00 three (3) months after sight.” May he accept under such terms, which varies the command in the bill of exchange? A. B. C. D. Yes, since a drawee accepts according to the tenor of his acceptance. No, since, once he accepts, a drawee is liable according to the tenor of the bill. Yes, provided the drawer and payee agree to the acceptance. No, since he is bound as drawee to accept the bill according to its tenor.

B.

95. May the indorsee of a promissory note indorsed to him “for deposit” file a suit against the indorser? A. B. C. Yes, as long as the indorser received value for the restrictive indorsement. Yes, as long as the indorser received value for the conditional indorsement. Yes, whether or not the indorser received value for the conditional indorsement. Yes, whether or not the indorser received value for the restrictive indorsement.

C.

D.

91. 002-38-0001 G, a grocery goods supplier, sold 100 sacks of rice to H who promised to pay once he has sold all the rice. H meantime delivered the goods to W, a warehouseman, who issued a warehouse receipt. Without the knowledge of G and W, H negotiated the receipt to P who acquired it in good faith and for value. P then claimed the goods from W, who released them. After the rice was loaded on a ship bound for Manila, G invokes his right to stop the goods in transit due to his unpaid lien. Who has a better right to the rice? A. B. C. D. P, since he has superior rights as a purchaser for value and in good faith. P, regardless of whether or not he is a purchaser for value and in good faith. G, since as an unpaid seller, he has the right of stoppage in transitu. W, since it appears that the warehouse charges have not been paid.

D.

96. X issued a check in favor of his creditor, Y. It reads: “ Pay to Y the amount of Seven Thousand Hundred Pesos (Php700,000.00). Signed, X”. What amount should be construed as true in such a case? A. B. C. D. Php700,000.00. Php700.00. Php7,000.00. Php700,100.00.

97. 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. B. C. D. Yes, because there was breach of implied warranty. No, because there was no intent to breach an implied warranty. Yes, because it relates to a material representation. No, because there was only representation of intention.

92. In a signature by procuration, the principal is bound only in case the agent acted within the actual limits of his authority. The signature of the agent in such a case operates as notice that he has A. B. C. D. a qualified authority to sign. a limited authority to sign. a special authority to sign. full authority to sign.

93. In return for the 20 years of faithful service of X as a househelper to Y, the latter promised to pay Php100,000.00 to X’s heirs if he (X) dies in an accident by fire. X agreed. Is this an insurance contract? A. Yes, since all the elements of an insurance contract are present.

98. The Articles of Incorporation of ABC Transport Co., a public utility, provides for ten (10) members in its Board of Directors. What is the prescribed minimum number of Filipino citizens in its Board? A. B. C. D. 10 6 7 5

Legal Ethics
99. P authorized A to sign a negotiable instrument in his (P’s) name. It reads: “Pay to B or order the sum of Php1 million. Signed, A (for and in behalf of P).” The instrument shows that it was drawn on P. B then indorsed to C, C to D, and D to E. E then treated it as a bill of exchange. Is presentment for acceptance necessary in this case? A. B. C. D. No, since the drawer and drawee are the same person. No, since the bill is non-negotiable, the drawer and drawee being the same person. Yes, since the bill is payable to order, presentment is required for acceptance. Yes, in order to hold all persons liable on the bill.

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3. Atty. Francisco’s retainer agreement with RXU said that his attorney's fees in its case against CRP “shall be 15% of the amounts collected.” Atty. Francisco asked the trial court to issue a temporary restraining order against CRP but this was denied, prompting him to file a petition for certiorari with the Court of Appeals to question the order of denial. At this point, RXU terminated Atty. Francisco’s services. When the parties later settled their dispute amicably, CRP paid RXU P100 million. Because of this, Atty. Francisco came around and claimed a 15% share in the amount. What should be his attorney’s fees? A. B. C. D. Nothing because the compromise came after RXU terminated him. 15% of what CRP paid RXU or P15 million. A reasonable amount that the court shall fix upon proof of quantum meruit. Nothing since he was unable to complete the work stated in the retainer contract.

100. The corporate term of a stock corporation is that which is stated in its Articles of Incorporation. It may be extended or shortened by an amendment of the Articles when approved by majority of its Board of Directors and: A. B. C. D. approved and ratified by at least 2/3 of all stockholders. approved by at least 2/3 of the stockholders representing the outstanding capital stock. ratified by at least 2/3 of all stockholders. ratified by at least 2/3 of the stockholders representing the outstanding capital stock.

LEGAL ETHICS
1. Atty. Mike started teaching Agrarian Reform and Taxation in June 2001 at the Arts and Sciences Department of the Far Eastern University. In 2005, he moved to San Sebastian Institute of Law where he taught Political Law. Is Atty. Mike exempt from complying with the MCLE for the 4th compliance period in April 2013? A. B. C. D. No, since he has yet to complete the required teaching experience to be exempt. No, because he is not yet a bar reviewer. Yes, since by April 2013, he will have been teaching law for more than 10 years. Yes, since he updated himself in law by engaging in teaching.

4. Lee became a lawyer in 1988 under a claim that he is a Filipino like his parents. Efren sought Lee’s disbarment on the ground that he really is a Chinese. To prove he is a Filipino, Lee cited an Albay regional trial court’s final judgment in an action to recover real property which mentioned his citizenship as Filipino. This final judgment resulted in the correction of his birth records in a separate special proceeding to show he is a Filipino, not Chinese as there stated. Is Lee’s claim to Filipino citizenship valid? A. B. C. D. No, since the mention of his citizenship in the land case was just incidental. No, since those rulings were not appealed to the Supreme Court. Yes, because the rulings in his favor have become final and executory. Yes, since his parents are Filipinos based on what he said in his bar exam petition.

2. The acknowledgment appearing in a deed of sale reads: “Before me personally appeared this 30 August 2010 Milagros A. Ramirez, who proved her identity to me through witnesses: 1. Rosauro S. Balana, Passport UU123456; 1-5-2010/ Baguio City; and 2. Elvira N. Buela, Passport VV200345; 1-17-2009/ Manila. “Both witnesses, of legal ages, under oath declare that: Milagros A. Ramirez is personally known to them; she is the same seller in the foregoing deed of sale; she does not have any current identification document nor can she obtain one within a reasonable time; and they are not privy to or are interested in the deed he signed.” What is the status of such a notarial acknowledgment? A. B. C. D. Questionable since the notary public is not shown to personally know the principal party. Ineffective since it included parties not privy to the deed. Invalid since the evidence of identity is non-compliant with the notarial rules. Valid since it is a manner of establishing the identity of the person executing the document.

5. Sheryl, Eric's counsel, once asked for postponement and the court granted it since the opposing counsel, Bernadine, did not object. Eric then asked Sheryl not to allow any further postponements because his case has been pending for 8 years. When trial resumed, Bernadine moved to reset the trial because of her infant's ailment. What must Sheryl do? A. B. C. D. Remind the Court that it has the duty to promptly decide the case. Interpose no objection since she too once sought postponement without Bernadine's objection. Vehemently oppose Bernadine's motion for being contrary to Eric's wishes. Submit the motion to the Court's sound discretion.

6. In a verified complaint, Kathy said that Judge Florante decided a petition for correction of entry involving the birth record of her grandson, Joshua, who happened to be child of Judge Florante's daughter, Pilita. Judge Florante insisted that he committed no wrong since the proceeding was nonadversarial and since it merely sought to correct an erroneous entry in the child’s birth certificate. Is Judge Florante liable? A. B. C. Yes, because Florante breached the rule on mandatory disqualification. No, because Judge Florante has no pecuniary interest in the proceeding. No, because it is true the proceeding was nonadversarial so it prejudiced no one.

Legal Ethics
D. Yes, since the correction in the child’s record affects the details of birth of the child. A. Notarizing a verification and certification against forum shopping in Manila Hotel at the request of his Senatorclient. Refusing to notarize an extra-judicial settlement deed after noting that Ambo, a friend, was delisted as heir when he was in fact one. Performing signature witnessing involving his brotherin-law and recording it in his register. Notarizing a deed of sale for someone he knew without requiring any proof of identity.

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7. Which of the following statements best describes the distinct traditional dignity that the legal profession enjoys over other professions? A. B. C. D. People are quite dependent on lawyers for their skills in getting them out of trouble with the law. Its members strive to maintain honesty even in their private dealings. Its members earn by charging specified emoluments or fees. The profession is anchored on a fiduciary relation with the client.

B.

C. D.

8. Raul sought Ely's disbarment for notarizing a deed of sale knowing that four of the sellers were dead. Ely admitted that he notarized the deed of sale but only after his client assured him that the signatures of the others were authentic. Later, Raul moved to have the complaint against him dismissed on the ground that it was filed because of a misunderstanding which had already been clarified. This prompted the IBP to recommend the dismissal of the complaint. Can the dismissal be allowed? A. B. C. D. No, unless the complainant executes an affidavit of desistance. Yes, since no compelling reason remained to continue with it. Yes, but recall Ely's notarial commission since the charge against him seems meritorious. No, given Ely’s admission that he notarized the document when some signatories were absent.

12. Justice Frank, a retired Court of Appeals justice, appeared before the Supreme Court on behalf of Landbank, a government bank, in a case involving the compensable value of the property taken from a landowner under the agrarian reform law. The landowner questioned Justice Frank's appearance in the case, pointing out that the same is unethical and smacks of opportunism since he obviously capitalizes on his judicial experience. Is Justice Frank's appearance in the case valid? A. B. C. D. Yes, because the law allows such appearance as long as the government is not the adverse party. No, because he cannot enjoy his retirement pay and at the same time work for a government institution. Yes, since Landbank does not perform government function. No, he should have waited for at least a year to avoid improprieties.

9. When will Atty. Antonio's notarial commission expire if he applied for and was given such commission on 12 November 2010? A. B. C. D. 31 December 2012 31 December 2011 11 November 2011 11 November 2012

13. On appeal, RTC Judge Rudy affirmed the MTC’s conviction of Lorna for violation of the bouncing checks law and awarded Agnes, the complainant, Php1.6 million in damages. Two years later, upon Lorna’s motion and after ascertaining that her counsel never received the court's decision, Judge Rudy recalled the entry of judgment in the case, reversed himself, and absolved Lorna of guilt. Claiming an unjust judgment, Agnes filed an administrative complained against Judge Rudy, saying that it is plain from the circumstances that he connived with Lorna, her counsel, and the handling prosecutor. But she offered no further evidence. Rudy denied the charges and asserted that any error in his judgment is correctible only by an appeal, not by an administrative suit. Should Judge Rudy be disciplined? A. No, because Agnes' complaint is merely based on suspicions and speculations. No, because Agnes has yet to establish that Rudy's decision is plainly erroneous. Yes, because he gravely abused his discretion in recalling the entry of judgment. Yes, because reconsidering the judgment of conviction that the MTC and he earlier issued shows anomaly in Judge Rudy's action.

10. Elaine filed a complaint against Fely before their barangay concerning a contract that they entered into. During conciliation, Fely came with Sarah, who claimed the right to represent her minor sister. The barangay captain let Sarah assist her sister. Eventually, the barangay issued a certificate to file action after the parties failed to settle their differences. When Sarah formally appeared as lawyer for her sister, Elaine filed an administrative complaint against her for taking part in the barangay conciliation and preventing the parties from taking meaningful advantage of the same. Is Sarah liable? A. B. C. D. No, because she has to represent her sister who was a minor. No, because the Court can always dismiss the case without prejudice to a genuine conciliation. Yes, because what Sarah did was deceitful and amounts to fraud. Yes, because as a lawyer, she is absolutely forbidden to appear in barangay conciliations.

B. C. D.

14. After Atty. Benny got a P2 million final judgment in his client’s favor, he promptly asked the court, without informing his client, to allow him a charging lien over the money in the amount of P500,000, his agreed fees, The Court issued a writ of execution for the whole judgment in Atty. Benny's name with an order for him to turn over the excess to his client. Is Atty. Benny’s action correct? A. B. C. D. No, since his fees are excessive. Yes, since he was merely asserting his right to collect his fees. Yes, since he would anyway give the excess to his client after getting his fees. No, since he did not disclose to his client the matter of

11. Which of the following will subject Atty. Lyndon, a Manila notary public, to sanctions under the notarial rules?

Legal Ethics
getting a charging lien and a writ of execution in his name. 15. On 17 April 2006 NWD, a local water district entity, hired Atty. Chito as private counsel for a year with the consent of the Office of the Government Corporate Counsel (OGCC). Shortly after, a leadership struggle erupted in NWD between faction A and faction B. Siding with the first, Atty. Chito filed several actions against the members of faction B. Eventually, the court upheld Faction B which thus revoked Atty. Chito’s retainer on 14 January 2007. With OGCC’s approval, NWD hired Atty. Arthur in his place. When Atty. Arthur sought the dismissal of the actions that Atty. Chito had instituted, the latter objected on the ground that his term had not yet expired and Atty. Arthur had no vacancy to fill up. Is Atty. Chito right? A. No, because Atty. Chito’s continued appearances in the cases was without authority since 14 January 2007. No, because Atty. Arthur would have violated the rule on forum shopping. Yes, because Atty. Chito’s retainer and authority remained valid until 17 April 2006. No, because Atty. Chito has the duty to expose the irregularities committed by the members of Faction B. is involved in fund management. She can teach law and deliver lectures on law but not do the other things. All of her activities are legal.

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C. D.

19. One of the foundation principles of the Bangalore Draft of the Code of Judicial Conduct is the importance in a modern democratic society of A. B. C. D. a judicial system that caters to the needs of the poor and the weak. public confidence in its judicial system and in the moral authority and integrity of its judiciary. the existence of independent and impartial tribunals that have the support of its government. judges who are learned in law and jurisprudence.

B. C. D.

20. After representing Lenie in an important lawsuit from 1992 to 1995, Atty. Jennifer lost touch of her client. Ten years later in 2005, Evelyn asked Atty. Jennifer to represent her in an action against Lenie. Such action involved certain facts, some confidential, to which Atty. Jennifer was privy because she handled Lenie's old case. Can Atty. Jennifer act as counsel for Evelyn? A. No, but she can assist another lawyer who will handle the case. Yes, but she must notify Lenie before accepting the case. No, because her duty to keep the confidences of previous clients remains. Yes, but she cannot reveal any confidential information she previously got.

16.Noel and Emily who were involved in a road accident sued Ferdie, the driver of the other car, for damages. Atty. Jose represented only Noel but he called Emily to testify for his client. During direct examination, Emily claimed that her injuries were serious when Atty. Jose knew that they were not. Still, Atty. Jose did not contest such claim. Ferdie later sued Emily for giving false testimony since her own doctor’s report contradicted it. He also sued Atty. Jose for foisting a false testimony in court. Is Atty. Jose liable? A. B. C. D. No, because he did not knowingly arrange for Emily to lie in court. Yes, because he did not advise his client to settle the case amicably. No, because Emily did not permit him to reveal the falsity to the court. Yes, because he knowingly let Emily's false testimony pass for truth.

B. C. D.

21. Eric, a labor federation president, represented Luisa, a dismissed WXT employee, before the NLRC. Atty. John represented Luisa's two co-complainants. In due course, the NLRC reinstated the three complainants with backwages and awarded 25% of the backwages as attorney’s fees, 15% for Atty. John and 10% for Eric, a non-lawyer. When WXT appealed to the Court of Appeals, Atty. John questioned Eric’s continued appearance before that court on Luisa’s behalf, he not being a lawyer. Is Eric's appearance before the Court of Appeals valid? A. Yes, for Eric has a personal stake, the fees awarded to him, in defending the NLRC's decision in the case. No, since John can very well represent Luisa, she being in the same situation as his own clients. No, because the representation of another in courts can be entrusted only to lawyers. Yes, since that appeal is a mere continuation of the labor dispute that began at the NLRC.

17. In settling his client's claims, Atty. Cruz received from the adverse party P200,000 in cash for his client. Which of the following is an IMPROPER way for Atty. Cruz to handle the money? A. B. C. D. Ask his client to prepare a check for his fees for swapping with the cash. Deposit the cash in his own bank account and later issue his personal check to his client, less his fees. Turn over the cash to his client with a request that the latter pay him his fees. Tell his client about the settlement and the cash and wait for the client's instructions.

A. B. C. D.

22. In what documented act will a notary public’s failure to affix the expiration date of his commission warrant administrative sanction? A. B. C. D. In the jurat of a secretary's certificate. In the will acknowledged before him. In the signature witnessing he performed. In the document copy he certified.

18. Judge Cristina has many law-related activities. She teaches law and delivers lectures on law. Some in the government consult her on their legal problems. She also serves as director of a stock corporation devoted to penal reform, where she participates in both fund raising and fund management. Which of the following statements applies to her case? A. B. She should not engage in fund raising activities. Her activities are acceptable except the part where she

23. Provincial Governors and Municipal Mayors who are lawyers are MCLE exempt because A. B. they handle cases of their constituents for free. the Local Government Code prohibits them from

Legal Ethics
practicing their profession. they are rendering public service. As experts in local governance, it may be assumed that they are updated on legal developments. the Environment Secretary. Yes, since he was evidently shopping for a sympathetic forum, a condemnable practice. No, since his appeal to the Environment Secretary was administrative, not judicial. No, since he has to exhaust all available remedies to serve his client’s interest.

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C. D.

B. C. D.

24. A difficult client directed his counsel to bring up to the Supreme Court the trial court’s dismissal of their action. Counsel believes that the trial court acted correctly and that an appeal would be futile. Which of the following options should counsel take? A. B. C. D. Withdraw from the case to temper the client’s propensity to litigate. Engage a collaborating counsel who can assist in the case. Submit a new retainer proposal to the client for a higher fee. Elevate the case to the Supreme Court as directed by client.

29. Atty. Melissa witnessed the car accident that resulted in injury to Manny, a friend of hers. While visiting him at the hospital, she advised him about what action he needed to take regarding the accident. Is Atty. Melissa subject to disciplinary action if she eventually handles the case for him? A. B. C. D. No, because Melissa did not directly volunteer her services. No, because Manny happened to be a friend. Yes, she engaged in typical ambulance chasing. Yes, because she should have offered her services for free.

25. Although not counsel in a particular case, Atty. Anthony asked Lisa, the RTC clerk of court, if the case records have already been remanded to the MTC as the Court of Appeals directed. Lisa said no, saying that the RTC had not yet received a certified copy of the Court of Appeals’ decision. When Lisa suggested that Atty. Anthony first secure such a copy, the latter scolded her. Shamed by this, Lisa filed a disciplinary action against him for encroaching on the work of the lawyers of record. Anthony defends his follow-up action by claiming good faith and the possibility of entering his appearance later. Is Anthony liable for his record follow up? A. B. C. D. Yes, because he did not inform Lisa of the basis of his interest in the case. Yes, because none of the parties to the case authorized him to do such follow-up. No, because he acted in good faith with a view to a possible retainer. No, because following up the records of any case does not constitute practice of law.

30. A Court Administrator's auditing team found that Judge Ruby used business cards which stated, in addition to her official title as presiding judge of her court, that she is bar topnotcher, her law school’s “class valedictorian,” and “one of the most sought after private law practitioners” before she joined the judiciary, all of which are true. Asked to explain this seeming impropriety, Ruby pointed out that business cards can include the person’s “title” which is broad enough to include in her case her standing in the bar and all the honors she earned. Did Ruby commit an impropriety? A. B. C. D. Yes, unless the cards were given to her as a gift. No, because all she stated in her business cards are true. Yes, because she showed a hunger for publicity and recognition that debases her judicial post . No, because she is free to include in her business cards details that say who she is.

26. Administrative proceedings against Judges of all courts and Justices of the Court of Appeals and the Sandiganbayan shall be A. B. C. D. private and confidential. public but subdued. private but transparent. public.

31. Serving as counsel de oficio, Atty. Mamerto advised John of the consequences of his plea of not guilty to the charge. Before trial could be held, however, the presiding judge died. As it happened, Atty. Mamerto was appointed judge and John’s case was assigned to him by raffle. John quickly moved for the judge’s disqualification. Is Judge Mamerto under obligation to inhibit himself from the case? A. B. C. D. No, because his service to John was just momentary. Yes, because his knowledge of John’s case affects his judgment. No, because he was merely a counsel de oficio. Yes, because he served as John's counsel.

27.When does the initial MCLE compliance period of a newly admitted member of the bar begin? A. B. C. D. On the first day of the month of his admission. On the tenth day of the month of his admission. On the third year after his admission as member. On the first year of the next succeeding compliance period.

28. Counsel for Philzea Mining appealed a decision of the Bureau of Mines, which was adverse to his client, to the Environment Secretary. At about the same time, he filed a special civil action of certiorari with the Court of Appeals for the annulment of the same decision. Did counsel commit any ethical impropriety in his actions? A. Yes, since the action he filed with the Court of Appeals was barred by the pendency of a similar action before

32. Myra asked Atty. Elma to notarize her deed of sale. When Elma asked for Myra's competent evidence of identity, she explained that she does not have any current identification document nor could she get one soon. Instead, she presented her friend, Alex, who showed Atty. Elma his driver’s license and confirmed her Myra’s identity. Is Alex’s identification of Myra valid? A. B. C. D. Yes, provided Alex states in the deed of sale that he knew Myra personally. No, Myra needs to produce a valid identification document of herself. No, since Alex is not himself a party to the document. Yes, since Alex had a valid identification document.

Legal Ethics
B. C. D. Payment of withdrawal fee. Opposing counsel’s conformity to the withdrawal. Client's written consent filed in court.

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33. Atty. Eliseo represented Allan in a collection suit against the Philippine Charity Sweepstakes Office (PCSO). After his election as sangguniang bayan member, the court rendered a decision in PCSO’s favor. Still, Atty. Eliseo appeared for Allan in the latter’s appeal, prompting the PCSO to question his right to do so. In response, Atty. Eliseo claimed that the local government code authorizes him to practice law as long it does not conflict with his duties. Is Atty. Eliseo right? A. B. C. D. No, because he cannot appear against a government instrumentality in a civil case. Yes, because his official duties do not conflict with his private practice. No, because he works on his private case at the sacrifice of public service. Yes, because he does not appear in the case as a municipal official.

39. Which of the following demonstrates the lawyer's duty to give the court the respect it deserves? A. B. C. D. Counsel consistently appearing in court on time. Counsel obeying court's orders and processes. Woman counsel appearing in court dressed in business attire. Counsel addressing the court as “Your Honor” at all times.

34. Which of the following instances demonstrates counsel’s LACK of diligence in serving his client's interest? A. Failing to file his client’s appeal brief despite 2 extensions upon the excuse that the client did not coordinate with him. Failing to send to client a requested legal opinion until after the latter gave him the additional documents he requested. Failing to rehearse his client on his testimony before the trial. Updating his client about the status of his case by phone and electronic mail.

40. Atty. Arthur agreed to represent Patrick in a personal injury case after the latter signed a retainer agreement for a 33% fee contingent on their winning the case. In the course of trial, Patrick dismissed Atty. Arthur after he presented their evidence in chief and engaged Atty. Winston another lawyer. They lost the case. What fee would Atty. Arthur be entitled to? A. B. C. D. Thirty three percent of the fee actually paid to Winston. The reasonable value of his services. A flat hourly rate for the time he invested in the case. Absolutely nothing.

B.

C. D.

41. Ronnie, a paralegal in a law firm, helped Beth in a property dispute in which she was involved by giving her legal advice and preparing a complaint that she eventually filed in court under her own signature. When the lawyer for the defendant learned of it, he told Ronnie to desist from practicing law. But he disputed this, claiming that he had not practiced law since he did not receive compensation from Beth for his help. Is Ronnie correct? A. B. C. D. Yes, because he could as a paralegal provide competent legal help to litigants. Yes, for so long as he did not sign the complaint or appeared as Beth's lawyer. No, unless Beth was ill-advised in filing her complaint in court. No, because receipt of compensation is not the sole determinant of legal practice.

35. What is the method of national inquiry into the conduct of Supreme Court magistrates? A. B. C. D. Administrative investigation. Disqualification. Impeachment. Disbarment.

36. What unhealthy attitude of mind should a judge avoid falling into? A. B. C. D. Hearing and adjudicating cases is an important job. Courts are made for litigants. Litigants are made for the courts. Courts should dispose of their cases on time.

42. Which of the following characteristics pertains to a charging lien? A. B. It cannot attach to judgments for delivery of real estates. It involves documents placed in the lawyer's possession by reason of the retainer. It does not need any notice to the client to make it effective. It may be exercised before judgment or execution.

37. After hearing in a sensational criminal case, counsel for the accused told television viewers how the judge unfairly ruled to stop his witness from testifying fully about certain aspects of the case that would help the accused. Counsel said that the public should know the injustice to which his client was being subjected. Can counsel be disciplined for his utterances? A. B. C. D. Yes, because rather than defend the judicial system as was his duty, he attacked it. No, since counsel did not use obscene language. No, so long as counsel did not knowingly make false statements or act in reckless disregard of truth. Yes, even if the judge may have actually made unfair rulings in the course of trial.

C. D.

43. To whom may the Supreme Court refer complaints against lawyers for investigation? A. B. C. D. Integrated Bar of the Philippines. Office of the Bar Confidant. Judicial and Bar Council. Office of the Court Administrator.

38. Which of the following is required of counsel when withdrawing his services to a client in a case? A. Counsel's desire to withdraw, expressed in his motion.

44. After several years as a private practitioner, Ben got appointed as Regional Trial Court judge. Five years after his appointment, he received summons directing him to answer a disbarment complaint that pertained to a document he notarized more than 10 years ago from appointment date. He sought the dismissal of the complaint arguing that the cause of action has

Legal Ethics
prescribed. Must the complaint be dismissed? A. B. C. D. No, because such complaints do not prescribe. Yes, because the complaint creates a chilling effect on judicial independence. No, but the complaint should be verified to ensure transparency. Yes, because actions on contracts prescribe in 10 years. latter’s counsel to move to expunge the judge’s questions for building on the prosecution's case. Judge Pedro denied the motion, insisting that bolstering a party’s case is incidental to the court’s desire to be clarified. Did Pedro commit an impropriety? A. B. A. 45. On November 28 Atty. Patrick wrote in a newspaper column that the Supreme Court already decided in favor of the validity of the Executive Order that created the Truth Commission upon a vote of 13- 2. But, as it turned out, the Court actually rendered an adverse decision only on December 7, and upon a vote of 10-5. Asked to explain his misleading article, Patrick said that his constitutionally protected right to free expression covered what he wrote. Can the Court cite Patrick for contempt? A. B. C. D. Yes, because his article obstructs and degrades the administration of justice. No, because the right to free expression occupies a high rank in the hierarchy of cherished rights. No, because courts must simply ignore public opinion and the media when rendering decisions. Yes, because he wrote a lie in his column. No, his ten questions could not be considered an undue intervention. No, because the judge is free to inquire into any aspect of the case that would clarify the evidence for him. C.Yes, because he effectively deprived the defense of its right to due process when he acted both as prosecutor and judge. Yes, because nothing connects his desire to be clarified with the questions he asked.

67

C.

49. Administrative penalties imposed on judges are A. B. C. D. curative. punitive. corrective. both punitive and corrective.

50. Which of the following demonstrates a lawyer’s fidelity to known practices and customs of the bar regarding a case he is handling? A. Treating his client’s disclosures as confidential but not the documents he submits for review. Meeting with his client’s opponent over lunch to discuss settlement without telling his client. Accepting a tough case although he is new in practice, trusting that his diligence would make up for lack of experience. Inviting the judge hearing the case to dinner with no purpose to discuss the case with him.

46. Atty. Ramon borrowed his client's (Menchu) land title. After eight months, Menchu demanded its return but he failed to comply and changed his residence. After Menchu tracked him down, she confronted him about the title. He then offered to just buy the property and gave her five checks for it but these bounced. Charged with malpractice, Atty. Ramon answered that his license to practice law cannot be in issue. He merely incurred civil liability for a failed transaction. Will the malpractice action prosper? A. B. C. D. No, because his failure to pay his obligation only makes him civilly liable. No, since Menchu did not transact business with Atty. Ramon as a lawyer. Yes, because it is professionally reprehensible for a lawyer to be unavailable to a person in need. Yes, he having taken advantage of Menchu who was not fully protected and had no independent advice.

B. C.

D.

47. Atty. Alfredo Prado appeared in a case as legal officer of the Land Registration Authority (LRA). His opponent, Atty. Armando, knew an Atty. Alfredo Prado from his province who had been dead for years. When Atty. Armando checked with the Supreme Court, only one Alfredo Prado was in the roll of attorneys. What action can Atty. Armado take against Vicente who had taken a dead lawyer’s identity? A. B. C. D. File direct contempt action against Vicente for deceiving the court. Criminally prosecute Vicente for estafa for making money upon false pretense. Criminally prosecute Vicente for theft of Alfredo's identity and law practice. Institute a disbarment case against Vicente for misrepresenting himself as lawyer.

48. After the prosecution cross-examined Shiela, a witness for the accused, Judge Pedro asked her ten additional questions that were so intense they made her cry. One question forced Sheila to admit that her mother was living with another man, a fact that weighed on the case of the accused. This prompted the