2013 Remedial Law Exam Essay Questions

on October 27, 2013 I. Alfie Bravo filed with the Regional Trial Court of Caloocan, a complaint for a sum of money against Charlie Delta. The claim is for Php1. !illion. The complaint alleges that Charlie "orrowed the amount from Alfie and duly e#ecuted a promissory note as evidence of the loan. Charlie$s office secretary, %sther, received the summons at Charlie$s office. Charlie failed to file an answer within the re&uired period, and Alfie moved to declare Charlie in default and to "e allowed to present evidence e# parte. Ten days later, Charlie filed his verified answer, raising the defense of full payment with interest. 1. -. II. 0vonne, a young and lonely 12', had an intimate relationship a"road with a friend, Percy. Although 0vonne comes home to !anila every si# months, her foreign posting still left her hus"and Dario lonely so that healso engaged in his own e#tramarital activities. .n one particularlye#hilarating session with his girlfriend, Dario died. 'ithin 134 days from Dario$s death, 0vonne gives "irth in !anila to a "a"y "oy. .rate relatives of Dario contemplate criminally charging 0vonne for adultery and they hire your law firm to handle the case. 1. -. .s the contemplated criminal action a via"le option to "ring()*+, .s a civil action to impugn the paternity of the "a"y "oy feasi"le, and if so, in what proceeding may such issue "e determined( ) +, III. 'hile in his 5issan Patrol and hurrying home to 6ue7on City from his wor8 in !a8ati, 9ary figured in a vehicular mishap along that portion of %D:A within the City of !andaluyong. ;e was "umped from "ehind "y a 2ord %#pedition :<= driven "y ;orace who was o"served using his cellular phone at the time of the collision. Both vehicles > more than years old ? no longer carried insurance other than the compulsory third party lia"ility insurance. 9ary suffered physical in@uries while his 5issan Patrol sustained damage in e#cess of Php 44,444. 1. As counsel for 9ary, descri"e the process you need to underta8e starting from the point of the incident if 9ary would proceed criminally against ;orace, and identify the court with @urisdiction over the case. )*+, -. .f 9ary chooses to file an independent civil action for damages, e#plain "riefly this type of actionA its legal "asisB the different approaches in pursuing this type of actionB the evidence you would needB and types of defenses you could e#pect. ) +, 'as there proper and valid service of summons on Charlie()*+, .f declared in default, what can Charlie do to o"tain relief()/+,

I . At the Pu"lic Attorney$s 1ffice station in Taguig where you are assigned, your wor8 re&uires you to act as pu"lic defender at the local Regional Trial Court and to handle cases involving indigents. 1. .n one criminal action for &ualified theft where you are the defense attorney, you learned that the woman accused has "een in detention for si# months, yet she has not "een to a courtroom nor seen a @udge. 'hat remedy would you underta8e to address the situation and what forum would you use to invo8e this relief( )*+, -. .n another case, also for &ualified theft, the detained young domestic helper has "een "rought to court five times in the last si# months, "ut the prosecution has yet to commence the presentation of its evidence. 0ou find that the reason for this is the continued a"sence of the employer>complainant who is wor8ing overseas. 'hat remedy is appropriate and "efore which forum would you invo8e this relief( )*+, *. :till in another case, this time for illegal possession of dangerous drugs, the prosecution has rested "ut you saw from the records that the illegal su"stance allegedly involved has not "een identified "y any of the prosecution witnesses nor has it "een the su"@ect of any stipulation. :hould you now proceed posthaste to the presentation of defense evidence or consider some other remedy( %#plain the remedial steps you propose to underta8e. )*+, /. .n one other case, an indigent mother see8s assistance for her 1/>year old son who has "een arrested and detained for malicious mischief. 'ould an application for "ail "e the appropriate remedy or is there another

remedy availa"le( Custify your chosen remedy and outline the appropriate steps to ta8e. )*+, . The spouses Cuan reside in 6ue7on City. 'ith their lottery winnings, they purchased a parcel of land in Tagaytay City for P144,444.44. .n a recent trip to their Tagaytay property, they were surprised to see hastily assem"led shelters of light materials occupied "y several families of informal settlers who were not there when they last visited the property three)*, months ago. To rid the spouses$ Tagaytay property of these informal settlers, "riefly discuss the legal remedy you, as their counsel, would useB the steps you would ta8eB the court where you would file your remedy if the need arisesB and the reasonDs for your actions. )E+,

I. 'hile leisurely wal8ing along the street near her house in !ari8ina, Patty un8nowingly stepped on a garden tool left "ehind "y CCC, a construction company "ased in !a8ati. :he lost her "alance as a conse&uence and fell into an open manhole. 2ortunately, Patty suffered no ma@or in@uries e#cept for contusions, "ruises and scratches that did not re&uire any hospitali7ation. ;owever, she lost self>esteem, suffered em"arrassment and ridicule, and had "outs of an#iety and "ad dreams a"out the accident. :he wants vindication for her uncalled for e#perience and hires you to act as counsel for her and to do whatever is necessary to recover at least Php144,444 for what she suffered. 'hat action or actions may Patty pursue, against whom, where )court and venue,, and under what legal "asis( )E+,

II. 0ou are the defense counsel of Angela Bituin who has "een charged under RA *41F )Anti>9raft and Corrupt Practices Act, "efore the :andigan"ayan. 'hile Angela has posted "ail, she has yet to "e arraigned. Angela revealed to you that she has not "een investigated for any offense and that it was only when police officers showed up at her residence with a warrant of arrest that she learned of the pending case against her. :he wonders why she has "een charged "efore the :andigan"ayan when she is not in government service. 1. -. 'hat G"efore>trialH remedy would you invo8e in Angela$s "ehalf to address the fact that she had not "een investigated at all, and how would you avail of this remedy( )/+, 'hat Gduring>trialH remedy can you use to allow an early evaluation of the prosecution evidence without the need of presenting defense evidenceB when and how can you avail of this remedy( )/+, III. 1n his way to the P5P Academy in :ilang, Cavite on "oard a pu"lic transport "us as a passenger, Police .nspector !asigasig of the =alen7uela Police witnessed an on>going armed ro""ery while the "us was traversing !a8ati. ;is alertness and training ena"led him to foil the ro""ery and to su"due the malefactor. ;e disarmed the felon and while fris8ing him, discovered another handgun tuc8ed in his waist. ;e sei7ed "oth handguns and the malefactor was later charged with the separate crimes of ro""ery and illegal possession of firearm. 1. 'here should Police .nspector !asigasig "ring the felon for criminal processing( To :ilang, Cavite where he is "oundB to !a8ati where the "us actually was when the felonies too8 placeB or "ac8 to =alen7uela where he is stationed( 'hich court has @urisdiction over the criminal cases()*+, -. !ay the charges of ro""ery and illegal possession of firearm "e filed directly "y the investigating prosecutor with the appropriate court without a preliminary investigation( )/+,

I!. 2or over a year, 5enita had "een estranged from her hus"and 'alter "ecause of the latter$s suspicion that she was having an affair with =ladimir, a "arangay 8agawad who lived in near"y !andaluyong. 5enita lived in the meantime with her sister in !a8ati. 1ne day, the house of 5enita$s sister ine#plica"ly "urned almost to the ground. 5enita and her sister were caught inside the house "ut 5enita survived as she fled in time, while her sister tried to save "elongings and was caught inside when the house collapsed. As she was running away from the "urning house, 5enita was surprised to see her hus"and also running away from the scene. Dr. Carlos, 'alter$s psychiatrist who lived near the "urned house and whom 'alter medically consulted after the fire, also saw 'alter in the vicinity some minutes "efore the fire. Coincidentally, 2r. Platino, the parish priest who regularly hears 'alter$s confession and who heard it after the fire, also encountered him not too far away from the "urned house. 'alter was charged with arson and at his trial, the prosecution moved to introduce the testimonies of 5enita, the doctor and the priest>confessor, who all saw 'alter at the vicinity of the fire at a"out the time of the fire. 1. -. *. !ay the testimony of 5enita "e allowed over the o"@ection of 'alter( )*+, !ay the testimony of Dr. Carlos, 'alter$s psychiatrist, "e allowed over 'alter$s o"@ection( )*+, !ay the testimony of 2r. Platino, the priest>confessor, "e allowed over 'alter$s o"@ection( )*+, !. As a new lawyer, Attorney 5ovato limited his practice to small claims cases, legal counseling and the notari7ation of documents. ;e put up a solo practice law office and was assisted "y his wife who served as his secretaryDhelper. ;e used a ma8eshift hut in a vacant lot near the local courts and a local transport regulatory agency. 'ith this practice and location, he did not have "ig>time clients "ut en@oyed heavy patronage assisting wal8>in clients. 1. -. 'hat role can Attorney 5ovato play in small claims cases when lawyers are not allowed to appear as counsel in these cases( )*+, 'hat legal remedy, if any, may Attorney 5ovato pursue for a client who loses in a small claims case and "efore which tri"unal or court may this "e pursued( )/+,

2013 Le"al Et#ics Exam Essay Questions

on October 27, 2013 I. Atty. Bravo represents Carlos 5egar )an insurance agent for Dormir .nsurance Co., in a suit filed "y insurance claimant Andy Iimot who also sued Dormir .nsurance. The insurance policy re&uires the insuredDclaimant to give a written notice to the insurance company or its agent within J4 days from the occurrence of the loss. Iimot testified during the trial that he had mailed the notice of the loss to the insurance agent, "ut admitted that he lost the registry receipt so that he did not have any documentary evidence of the fact of mailing and of the timeliness of the mailed notice. Dormir .nsurance denied lia"ility, contending that timely notice had not "een given either to the company or its agent. Atty. Bravo$s client, agent 5egar, testified and confirmed that he never received any notice. A few days after 5egar testified, he admitted to Atty. Bravo that he had lied when he denied receipt of Iimot$s noticeB he did receive the notice "y mail "ut immediately shredded it to defeat Iimot$s claim. .f you were Atty. Bravo, what would you do in light of your client$s)Carlos 5egar$s, disclosure that he per@ured himself when he testified( )3+, II. Atty. :erafin Roto is the Corporate :ecretary of a construction corporation that has secured a multi>million infrastructure pro@ect from the government. .n the course of his duties as corporate secretary, he learned from the company president that the corporation had resorted to "ri"ery to secure the pro@ect and had falsified records to cut implementing costs after the award of the pro@ect. The government filed a civil action to annul the infrastructure contract and has su"poenaed Atty. Roto to testify against the company president and the corporation regarding the "ri"ery. Atty. Roto moved to &uash the su"poena, asserting that lawyer>client privilege prevents him from testifying against the president and the corporation. Resolve the motion to &uash. )3+, III. !iguel Cactar, a fourth year law student, drove his vehicle rec8lessly and hit the rear "umper of :implicio !edroso$s vehicle. .nstead of stopping, Cactar accelerated and sped away. !edroso pursued Cactar and caught up with him at an intersection. .n their confrontation, Cactar dared !edroso to sue, "ragged a"out his connections with the courts, and even uttered veiled threats against !edroso. During the police investigation that followed, !edroso learned that Cactar was reviewing for the Bar e#aminations.

<nder these facts, list and @ustify the potential o"@ections that can "e made against Cactar$s admission to the practice of law. )3+, I . Atty. Do"lar represents %va in a contract suit against 1lga. ;e is also defending !arla in a su"stantially identical contract suit filed "y %mma. .n "ehalf of %va, Atty. Do"lar claims that the statute of limitations runs from the time of the "reach of the contract. .n the action against !arla, Atty. Do"lar now argues the reverse position ? i.e., that the statute of limitation does not run until one year after discovery of the "reach. Both cases are assigned to Cudge %lrey. Although not the sole issue in the two cases, the statute of limitations issue is critical in "oth. .s there an ethicalDprofessional responsi"ility pro"lem in this situation( .f a pro"lem e#ists, what are its implications or potential conse&uences( )3+, . Atty. Repatriar, a law school classmate, approached you on your - th Class Reunion, with &uestions on how he can resume the practice of law in the Philippines. ;e left the country in 1FEE after two )-, years of initial law practice, and migrated to the <nited :tates where he was admitted to the practice of law in the :tate of 5ew 0or8. ;e as8s that you give him a formal legal opinion on his &uery. 1utline "riefly the steps and the supporting legal reasons you would state in your legal opinion on what Atty. Repatriar should do to resume his Philippine practice. )3+, I. An audit team from the 1ffice of the Court Administrator found that Cudge Contaminada committed serious infractions through the indiscriminate grant of petitions for annulment of marriage and legal separation. .n one year, the @udge granted *44 of such petitions when the average num"er of petitions of similar nature granted "y an individual @udge in his region was only -/ petitions per annum. The audit revealed many different defects in the granted petitionsA many petitions had not "een verifiedB the re&uired copies of some petitions were not furnished to the 1ffice of the :olicitor 9eneral and the 1ffice of the Provincial ProsecutorB doc8et fees had not "een fully paidB the parties were not actual residents within the territorial @urisdiction of the courtB and, in some cases, there was no record of the cross>e#aminations conducted "y the pu"lic prosecutor or any documentary evidence mar8ed and formally offered. All these, viewed in their totality, supported the improvident and indiscriminate grant that the 1CA found. .f you were the counsel for Andy !alasuerte and other litigants whose marriages had "een improperly and finally annulled, discuss your options in administratively proceeding against Cudge Contaminada, and state where and how you would e#ercise these options. )3+,

II. .n an action to prevent the condominium developer from "uilding "eyond ten )14, floors, Cudge Cerdo rendered @udgment in favor of the defendant developer. The @udgment "ecame final after the plaintiffs failed to appeal on time. Cudge Cerdo and Atty. Cocodrilo, counsel for the developer, thereafter separately purchased a condominium unit each from the developer. Did Cudge Cerdo and Atty. Cocodrilo commit any act of impropriety or violate any law for which they should "e held lia"le or sanctioned( )3+, III. The criminal case arising from the P14>Billion Peso por8 "arrel scandal was raffled to :andigan"ayan Custice !arciano Co"arde. Afraid that he would antagoni7e the parties, his political patrons and, ultimately, his @udicial career, he decided to inhi"it from participating in the case, giving Gpersonal reasonsH as his @ustification. .f you were to &uestion the inhi"ition of :B Custice Co"arde, on what legal "asis, and where and how will you do this( )3+, I!. Atty. ;ermano re&uested his fraternity "rother, Cudge Patron, to introduce him to Cudge Apestado, "efore whom he has a case that had "een pending for some time. Cudge Patron, a close friend of Cudge Apestado, acceded to the re&uest, telling the latter that Atty. ;ermano is his fraternity G"rodH and that Atty. ;ermano simply wanted to as8 for advice on how to e#pedite the resolution of his case. They met, as arranged, in the fine dining restaurant of a five>star hotel. Atty. ;ermano hosted the dinner. Did Atty. ;ermano, Cudge Patron and Cudge Apestado commit any ethicalDadministrative violation for which they can "e held lia"le( )3+, !. As a new lawyer, Attorney 5ovato started with a practice limited to small claims cases, legal counseling, and notari7ation of documents. ;e put up a solo practice law office and was assisted "y his wife who served as his secretaryDhelper. ;e used a ma8eshift hut in a vacant lot near the local courts and a local transport regulatory agency. 'ith this strategic location, he en@oyed heavy patronage assisting wal8>in clients in the preparation and filing of pleadings and in the preparation and notari7ation of contracts and documents. ;e had the foresight of investing in a good heavy duty copier machine that reproduces &uality documents, and charges a reasona"le fee for this service. ;e draws electric power from an e#tension wire connected to an ad@oining small restaurant. ;e put up a shingle that readsA GAtty. 5ovato, :pecialist in :mall Claims, 2astest in 5otari7ationB the Best and Cheapest in Copier :ervices.H

.s Attorney 5ovato$s manner of carrying out his professional practice ? i.e., mi#ing "usiness with the practice of law, announcing his activities via a shingle and locating his office as a"ove> descri"ed ? in 8eeping with appropriate ethical and professional practice( )3+,

2013 $olitical Law Exam %&Qs

on October 21, 2013 KBelow are the !ultiple Choice 6uestions as8ed in the -41* Bar %#ams in Political Iaw. 1. '#e e(ual )rotection clause is *iolated by ++++++++++. ,1-. )A, a law prohi"iting motorcycles from plying on limited access highways. )B, a law granting =alue Added Ta# e#emption to electric cooperatives that sells electricity to the Ghomeless poor.H )C, a law providing that a policeman shall "e preventively suspended until the termination of a criminal case against him. )D, a law providing higher salaries to teachers in pu"lic schools who are Gforeign hires.H )%, a law that grants rights to local 2ilipino wor8ers "ut denies the same rights to overseas 2ilipino wor8ers. 2. O//ended by t#e $resident0s remar1s t#at t#e 2ureau o/ &ustoms is a )it o/ mis/its and t#e corru)t, t#e 2ureau o/ &ustoms Em)loyees 3ssociation com)osed o/ 3,000 wor1ers see1s your le"al ad*ice on #ow best to )rotest w#at it *iews to be t#e $resident0s baseless remar1s. 3 )rudent le"al ad*ice is t#at ++++++++++. ,1-. )A, employees can go on mass leave of a"sence for one wee8 )B, employees can march and rally at !endiola every !onday )C, employees can "arricade the gates of the Port of !anila at :outh ;ar"or and call for the resignation of the incum"ent Commissioner of Customs )D, employees can wear "lac8 arm "ands and pins with the word G<52A.RH inscri"ed )%, 5one of the a"ove can legally "e done. 3. &on"ress enacted Re)ublic 3ct 4o. 1235 re(uirin" all candidates /or )ublic o//ices to )ost an election bond e(ui*alent to t#e one ,1. year salary /or t#e )osition /or w#ic# t#ey are candidates. '#e bond s#all be /or/eited i/ t#e candidates /ail to obtain at least 10- o/ t#e *otes cast. Is Re)ublic 3ct 4o. 1235 *alid6 ,1-. )A, .t is valid as the "ond is a means of ensuring fair, honest, peaceful and orderly elections. )B, .t is valid as the "ond re&uirement ensures that only candidates with sufficient means and who cannot "e corrupted, can runfor pu"lic office. )C, .t is invalid as the re&uirement effectively imposes a property &ualification to run for pu"lic office. )D, .t is invalid as the amount of the surety "ond is e#cessive and unconsciona"le. )%, .t is valid "ecause it is a reasona"le re&uirementB the Constitution itself e#pressly supports the accounta"ility of pu"lic officers.

5. 7#at is t#e le"al e//ect o/ decisions o/ t#e International &ourt o/ 8ustice in cases submitted to it /or resolution6 ,1-. )A, The decision is "inding on other countries in similar situations. )B, The decision is not "inding on any country, even the countries that are parties to the case. )C, The decision is "inding only on the parties "ut only with respect to that particular case. )D, The decision is not "inding on the parties and is only advisory. )%, The "inding effect on the parties depends on their su"mission agreement. 9. :nder t#e :4 &on*ention on t#e Law o/ t#e ;ea, t#e exclusi*e economic <one re/ers to an area. ,1-. )A, that is at least 144 miles from the "aselines from which the outer limit of the territorial sea is measured )B, that is at least -44 miles "ut not to e#ceed *44 miles from the "aselines from which the outer limit of the territorial sea is measured )C, "eyond and ad@acent to a country$s territorial sea which cannot go "eyond -44 nautical miles from the "aselines from which the outer limit of the territorial sea is measured )D, that can go "eyond * nautical miles "ut cannot e#tend *44 nautical miles from the "aselines from which the outer limit of the territorial sea is measured )%, 5one of the a"ove. =. 3 c#ild born under eit#er t#e 1>73 or t#e 1>?7 &onstitution, w#ose /at#er or mot#er is a @ili)ino citi<en at t#e time o/ #is birt#, is ++++++++++. ,1-. )A, not a 2ilipino citi7en as his father and mother must "oth "e 2ilipino citi7ens at the time of his "irth )B, not a 2ilipino citi7en if his mother is a 2ilipino citi7en "ut his father is not, at the time of his "irth )C, a 2ilipino citi7en no matter where he or she may "e "orn )D, a 2ilipino citi7en provided the child is "orn in the Philippines )%, a 2ilipino citi7en if he or she so elects upon reaching the age of -1 7. 7#o #as control o/ t#e ex)enditure o/ )ublic /unds6 ,1-. )A, The 1ffice of the President through the Department of Budget and !anagement. )B, The ;ouse of Representatives from where all appropriation "ills emanate. )C, The :enate through its Committee on 2inance. )D, The Congress of the Repu"lic of the Philippines. )%, Both the mem"ers of Congress and the President acting @ointly, if so provided "y the 9eneral Appropriations Act.

?. %ay t#e )ower o/ cities to raise re*enues be limited by an executi*e order o/ t#e $resident6 ,1-. )A, 0es, "ecause local government units are under the administrative control of the President through the Department of .nterior and Iocal 9overnment. )B, 5o, "ecause local government units now en@oy full local fiscal autonomy. )C, 5o, "ecause only limitations esta"lished "y Congress can define and limit the powers of local governments. )D, 0es, "ecause the President has the power and authority to impose reasona"le restrictions on the power of cities to raise revenues. )%, 0es, if so provided in a city$s charter. >. '#e )ro*ision under t#e &onstitution At#at any member w#o too1 no )art, dissented, or in#ibited /rom a decision or resolution must state t#e reason /or #is dissent or nonA )artici)ation B a))lies ++++++++++. ,1-. )A, only to the :upreme Court )B, to "oth the :upreme Court and the Court of Appeals )C, to the :upreme Court, Court of Appeals and the :andigan"ayan )D, to the :upreme Court, the Court of Appeals, the :andigan"ayan and the Court of Ta# Appeals )%, to all collegial @udicial and &uasi>@udicial ad@udicatory "odies 10. &#oose t#e least accurate statement about t#e inde)endence "uaranteed by t#e 1>?7 &onstitution to t#e /ollowin" constitutional bodiesC ,1-. )A, The Constitution guarantees the C1!%I%C decisional and institutional independence similar to that granted to theCudiciary. )B, All "odies la"eled as GindependentH "y the Constitution en@oyfiscal autonomy as an attri"ute of their independence. )C, 5ot all "odies la"eled as GindependentH "y the Constitution were intended to "e independent from the %#ecutive "ranch of government. )D, The Constitution guarantees various degrees of independence from the other "ranches of government when it la"els "odies as GindependentH. )%, The C1!%I%C, the C1A, and the C:C en@oy the same degree of independence. 11. 3t t#e ;enate im)eac#ment trial o/ 8ustice $ablo $. ;an Quintin, Don. Emilio 3. 'an, &on"ressman and Im)eac#ment $anel %ana"er, wrote t#e ;u)reme &ourt re(uestin" t#at t#e )rosecutors be allowed to examine t#ecourt records o/ ;tewards 3ssociation o/ t#e $#ili))ines, Inc. ,;3$E. *. @ili)inas 3ir, et al., F.R. 4o. >?7=95, a case t#at is still )endin". '#e Di"# &ourt ++++++++++. ,1-. )A, may grant the re&uest "y reason of inter>departmental courtesy )B, may grant the re&uest as the records of the 2ilipinas Air case are pu"lic records

)C, should deny the re&uest since records of cases that are pending for decision are privileged e#cept only for pleadings, orders and resolutions that are availa"le to the pu"lic )D, should deny the re&uest "ecause it violates the Court$s independence and the doctrine of separation of powers )%, should grant the re&uest "ecause of the sui generis nature of the power of impeachment, provided that the Bill of Rights is not violated 12. %r. ;inco sued t#e "o*ernment /or dama"es. 3/ter trial, t#e court ruled in #is /a*or and awarded dama"es amountin" to $90 million a"ainst t#e "o*ernment. 'o satis/y t#e Gud"ment a"ainst t#e "o*ernment, w#ic# *alid o)tion is a*ailable to %r. ;inco6 , 1-. )A, 9arnish the government funds deposited at the Iand Ban8. )B, 2ile a claim with the Commission on Audit )C1A, pursuant to Commonwealth Act *-E, as amended "y Presidential Decree1// . )C, !a8e representations with the Congress to appropriate the amount to satisfy the @udgment. )D, 2ile a petition for mandamus in court to compel Congress to appropriate P 4 million to satisfy the @udgment. )%, Proceed to e#ecute the @udgment as provided "y the Rules of Court "ecause the :tate allowed itself to "e sued. 13. 7#ic# o/ t#e /ollowin" )ro*isions o/ t#e &onstitution does not con/er ri"#ts t#at can be en/orced in t#e courts but only )ro*ides "uidelines /or le"islati*e or executi*e action6 ,l-. )A, The maintenance of peace and order, the protection of life, li"erty, and property, and promotion of the general welfare are essential for the en@oyment "y all the people of the "lessings of democracy. )B, The :tate shall give priority to education, science and technology, arts, culture, and sports to foster patriotism and nationalism, accelerate social progress, and promote total human li"eration and development. )C, The natural and primary right and duty of parents in the rearing of the youth for civic efficiency and the development of moral character shall receive the support of the 9overnment. )D, The right of the people to information on matters. of pu"lic concern shall "e recogni7ed. Access to official records, and to documents and papers pertaining to official acts, transactions, or decisions, as well as to government research data used as "asis for policy development, shall "e afforded the citi7en, su"@ect to such limitations as may "e provided "y law. )%, All the a"ove only provide guidelines and are not self>e#ecuting. 15. '#e $resident entered into an executi*e a"reement wit# ietnam /or t#e su))ly to t#e $#ili))ines o/ animal /eeds not to exceed 50,000 tons in any one year. '#e 3ssociation o/ 3nimal @eed ;ellers o/ t#e $#ili))ines (uestioned t#e executi*e a"reement /or bein" contrary to R.3. 5=2 w#ic# )ro#ibits t#e im)ortation o/ animal /eeds /rom 3sian countries. Is t#e c#allen"e correct6 ,1-. )A, 0es, the e#ecutive agreement is contrary to an e#isting domestic law.

)B, 5o, the President is solely in charge of foreign relations and all his actions in this role form part of the law of the land. )C, 5o, international agreements are sui generis and stand independently of our domestic laws. )D, 0es, the e#ecutive agreement is actually a treaty which does not ta8e effect without ratification "y the :enate. )%, 0es, the challenge is correct "ecause there is no law empowering the President to underta8e the importation. 19. '#e se)aration o/ &#urc# and ;tate is most clearly *iolated w#en ++++++++++. ,1-. )A, the :tate funds a road pro@ect whose effect is to ma8e a church more accessi"le to its adherents )B, the :tate declares the "irthplace of a founder of a religious sect as a national historical site )C, the :tate e#propriates church property in order to construct an e#pressway that, among others, provides easy access to the Church$s main cathedral )D, the :tate gives vehicles to "ishops to assist them in church>related charita"le pro@ects )%, the :tate allows prayers in schools for minor children without securing the prior consent of their parents 1=. $atricio was elected member o/ t#e Douse o/ Re)resentati*e in t#e %ay 2010 Elections. Dis o))onent 8ose (uestioned $atricio0s *ictory be/ore t#e Douse o/ Re)resentati*es Electoral 'ribunal and later wit# t#e ;u)reme &ourt. In a decision )romul"ated in 4o*ember 2011, t#e &ourt ruled in 8ose0s /a*orH t#us, $atricio was ousted /rom #is seat in &on"ress. 7it#in a year /rom t#at decision, t#e $resident can a))oint $atricio ++++++++++. ,1-. )A, only as a mem"er of the "oard of directors of any government owned and controlled corporation )B, only as a deputy 1m"udsman )C, only as a Commissioner of the Civil :ervice Commission )D, only as Chairman of the Commission on %lections )%, to any position as no prohi"ition applies to Patricio 17. ;enator F;& )ro)osed a bill increasin" excise taxes on tobacco and alco#ol )roducts. '#e "enerated incremental re*enues s#all be used /or t#e uni*ersal #ealt# care )ro"ram /or all @ili)inos and /or tobacco /armers0 li*eli#ood. 3/ter t#e ;enate )assed t#e bill on t#ird readin", it was transmitted to t#e Douse o/ Re)resentati*es w#ic# a))ro*ed t#e bill in toto. '#e $resident e*entually si"ned it into law. 3tty. 8@& /iled a )etition be/ore t#e ;u)reme &ourt, (uestionin" t#e constitutionality o/ t#e new law. Is t#e law constitutional6 ,1-. )A, The law is constitutional "ecause it is for a pu"lic purpose and has duly satisfied the three> readings>on>separate>days rule in "oth ;ouses.

)B, The law is unconstitutional "ecause it violates the e&ual protection clause of the ConstitutionB it is limited only to alcohol and li&uor products. )C, .t is constitutional "ecause of the %nrolled Bill Theory. )D, .t is constitutional "ecause it is valid in form and su"stance and complied with the re&uired lawma8ing procedures.)%, 5one of the a"ove is correct. 1?. 7#ic# o/ t#e /ollowin" statements is correct6 ,1-. )A, The President, with the concurrence of the !onetary Board, can guarantee a foreign loan on "ehalf of the Repu"lic of the Philippines. )B, Congress may, "y law, provide limitations on the President$s power to contract or guarantee foreign loans on "ehalf of the Repu"lic of the Philippines. )C, .n order to "e valid and effective, treaties and e#ecutive agreements must "e concurred in "y at least two>thirds of all the !em"ers of the :enate. )D, The President shall, at the end of every &uarter of the calendar year, su"mit to Congress a complete report of the loans contracted or guaranteed "y the 9overnment or government> owned and controlled corporations. )%, All the a"ove choices are defective in some respects. 1>. &andida #as been administrati*ely c#ar"ed o/ immorality /or o)enly li*in" wit# %anuel, a married man. &andida ar"ues t#at #er conGu"al arran"ement wit# %anuel /ully con/orms wit# t#eir reli"ious belie/s and wit# t#e teac#in"s o/ t#eir c#urc#. In resol*in" w#et#er &andida s#ould be administrati*ely )enali<ed, w#ic# is t#e best test to a))ly6 ,1-. )A, Clear and Present Danger Test )B, Compelling :tate .nterest Test )C, Balancing of interests Test )D, Conscientious 1"@ector Test )%, Dangerous Tendency Test 20. Ra/ael (uestioned t#e (uali/ications o/ &arlos as con"ressman o/ t#e '#ird Iistrict o/ %anila on t#e "round t#at &arlos is a citi<en o/ t#e :;3. '#e decision dis(uali/yin" &arlos /or bein" a :; citi<en came only in %arc# 2010, i.e., a/ter t#e adGournment o/ t#e session o/ &on"ress on t#e 3Jd year o/ t#e )osition0s t#reeAyear term. 7#at was &arlos0 status durin" #is incumbency as con"ressman6 ,1-. )A, ;e was a de @ure officer, having "een duly elected and proclaimed. )B, ;e was not a pu"lic officer "ecause he effectively was not entitled to "e a congressman. )C, ;e was a de @ure officer since he completed the service of his term "efore he was dis&ualified. )D, ;e was a de facto officer since he had served and was only dis&ualified later. )%, ;e neither possesses de @ure nor de facto status as such determination is pointless.

-41* Civil Iaw %#am !C6s

on October 21, 2013

KBelow are the !ultiple Choice 6uestions as8ed in the -41* Bar %#ams in Ia"or Iaw. Answers are highlighted.L 1. 3rmand died intestate. Dis /ullAblood brot#ers, 2obby and &onrad, and #al/Ablood brot#ers, Ianny, Edward and @loro, all )redeceased #im. '#e /ollowin" are t#e sur*i*in" relati*esC 1. 2enny and 2onnie, le"itimate c#ildren o/ 2obbyH 2. &esar, le"itimate c#ild o/ &onradH 3. Iante, ille"itimate c#ild o/ IannyH 5. Ernie, ado)ted c#ild o/ EdwardH and 9. @elix, "randson o/ @loro. '#e net *alue o/ 3rmand0s estate is $1,200,000. 1.a. Dow muc# do 2enny and 2onnie stand to in#erit by ri"#t o/ re)resentation6 ,1-. )A, P-44,444 )B, P*44,444 )C, P/44,444 )D, P1 4,444 )%, 5one of the a"ove. 1.b. Dow muc# is Iante0s s#are in t#e net estate6 ,1-. )A, P1 4,444. )B, P-44,444. )C, P*44,444. )D, P/44,444. )%, 5one of the a"ove. 1.c. Dow muc# is Ernie0s s#are in t#e net estate . ,1-. )A, P 4. )B, P/44,444. )C, P1 4,444. )D, P-44,444. )%, 5one of the a"ove. 1.d. Dow muc# is @elix0s s#are in t#e net estate6 ,1-. )A, P/44,444. )B, P1 4,444. )C, P*44,444. )D, P4 )%, 5one of the a"ove.

2. 3, 2, & and I are t#e solidary debtors o/ ! /or $50,000. ! released I /rom t#e )ayment o/ #is s#are o/ $I 0,000. 7#en t#e obli"ation became due and demandable, & turned out to be insol*ent. ;#ould t#e s#are o/ insol*ent debtor & be di*ided only between t#e two ot#er remainin" debtors, 3 and 26 ,1-. )A, 0es. Remission of D$s share carries with it total e#tinguishment of his o"ligation to the "enefit of the solidary de"tors. )B, 0es. The Civil Code recogni7es remission as a mode of e#tinguishing an o"ligation. This clearly applies to D. )C, 5o. The rule is that gratuitous acts should "e restrictively construed, allowing only the least transmission of rights. )D, 5o, as the release of the share of one de"tor would then increase the "urden of the other de"tors without their consent. 3. 3mador obtained a loan o/ $300,000 /rom 2asilio )ayable on %arc#29, 2012. 3s security /or t#e )ayment o/ #is loan, 3mador constituted a mort"a"e on #is residential #ouse and lot in 2asilio0s /a*or. &ac#o, a "ood /riend o/ 3mador, "uaranteed and obli"ated #imsel/ to )ay 2asilio, in case 3mador /ails to )ay #is loan at maturity. 3.a. I/ 3mador /ails to )ay 2asilio #is loan on %arc# 29, 2012, can 2asilio com)el &ac#o to )ay6 ,1-. )A, 5o, Basilio cannot compel Cacho to pay "ecause as guarantor, Cacho can invo8e the principle of e#cussion, i.e., all the assets of Basilio must first "e e#hausted. )B, 5o, Basilio cannot compel Cacho to pay "ecause Basilio has not e#hausted the availa"le remedies against Amador. )C, 0es, Basilio can compel Cacho to pay "ecause the nature of Cacho$s underta8ing indicates that he has "ound himself solidarily with Amador. )D, 0es, Basilio can compel Cacho who "ound himself to unconditionally pay in case Amador fails to payB thus the "enefit of e#cussion will not apply. 3.b. I/ 3mador sells #is residential #ouse and lot to Iie"o, can 2asilio /oreclose t#e real estate mort"a"e6 ,1-. )A, 0es, Basilio can foreclose the real estate mortgage "ecause real estate mortgage creates a real right that attaches to the property. )B, 0es, Basilio can foreclose the real estate mortgage. .t is "inding upon Diego as the mortgage is em"odied in a pu"lic instrument. )C, 5o, Basilio cannot foreclose the real estate mortgage. The sale confers ownership on the "uyer, Diego, who must therefore consent.

)D, 5o, Basilio cannot foreclose the real estate mortgage. To deprive the new owner of ownership and possession is un@ustand ine&uita"le. 5. &ru< lent 8ose #is car until 8ose /inis#ed #is 2ar exams. ;oon a/ter &ru< deli*ered t#e car, 8ose brou"#t it to %itsubis#i &ubao /or maintenance c#ec1 u) and incurred costs o/ $?,000. ;eein" t#e car0s )eelin" and /aded )aint, 8ose also #ad t#e car re)ainted /or $10,000. 3nswer t#e two (uestions below based on t#ese common /acts. 5.a. 3/ter t#e bar exams, &ru< as1ed /or t#e return o/ #is car. 8ose said #e would return it as soon as &ru< #as reimbursed #im /or t#e car maintenance and re)aintin" costs o/ $ 1?,000. Is 8ose0s re/usal Gusti/ied6 ,1-. )A, 5o, Cose$s refusal is not @ustified. .n this 8ind of contract, Cose is o"liged to pay for all the e#penses incurred for the preservation of the thing loaned. )B, 0es, Cose$s refusal is @ustified. ;e is o"liged to pay forall the ordinary and e#traordinary e#penses, "ut su"@ect to reim"ursement from Cru7. )C, 0es, Cose$s refusal is @ustified. The principle of un@ust enrichment warrants the reim"ursement of Cose$s e#penses. )D, 5o, Cose$s refusal is not @ustified. The e#penses he incurred are useful for the preservation of the thing loaned. .t is Cose$s o"ligation to shoulder these useful e#penses. 5.b. Iurin" t#e bar exam mont#, 8ose lent t#e car to #is "irl/riend, 8olie, w#o )ar1ed t#e car at t#e %all o/ 3sia0s o)en )ar1in" lot, wit# t#e i"nition 1ey inside t#e car. &ar t#ie*es bro1e into and too1 t#e car. Is 8ose liable to &ru< /or t#e loss o/ t#e car due to 8olie0s ne"li"ence6 ,1-. )A, 5o, Cose is not lia"le to Cru7 as the loss was not due to his fault or negligence. )B, 5o, Cose is not lia"le to Cru7. .n the a"sence of any prohi"ition, Cose could lend the car to Colie. :ince the loss was due to force ma@eure, neither Cose nor Colie is lia"le. )C, 0es, Cose is lia"le to Cru7. :ince Cose lent the car to Colie without Cru7$s consent, Cose must "ear the conse&uent loss of the car. )D, 0es, Cose is lia"le to Cru7. The contract "etween them is personal in nature. Cose can neither lend nor lease the car to a third person. 9. In 2009, L, %, 4, 0 and $ /ormed a )artners#i). L, % and 4 were ca)italist )artners w#o contributed $900,000 eac#, w#ile 0, a limited )artner, contributed $1 ,000,000. $ Goined as an industrial )artner, contributin" only #is ser*ices. '#e 3rticles o/ $artners#i), re"istered wit# t#e ;ecurities and Exc#an"e &ommission, desi"nated L and 0 as mana"in" )artnersH L was liable only to t#e extent o/ #is ca)ital contributionH and $ was not liable /or losses. In 200=, t#e )artners#i) earned a net )ro/it o/ $?00,000. In t#e same year, $ en"a"ed in a di//erent business wit# t#e consent o/ all t#e )artners. Dowe*er, in 2007, t#e )artners#i) incurred a net

loss o/ $900,000. In 200?,t#e )artners dissol*ed t#e )artners#i). '#e )roceeds o/ t#e sale o/ )artners#i) assets were insu//icient to settle its obli"ation. 3/ter li(uidation, t#e )artners#i) #ad an un)aid liability o/$300,000. 9.a. 3ssumin" t#at t#e Gust and e(uitable s#are o/ t#e industrial )artner, $, in t#e )ro/it in 200= amounted to $1 00,000, #ow muc# is t#e s#are o/ 0, a limited )artner, in t#e $?00,000 net )ro/it6 ,1-. )A, P1J4,444. )B, P1E ,444. )C, P-34,444. )D, P-44,444. )%, 5one of the a"ove. 9.b. In 2007, #ow muc# is t#e s#are o/ 0, a limited )artner, in t#e net loss o/ $900,0006 ,1-. )A, P 4. )B, P1 44,444. )C, P1- ,444. )D, P-44,444. )%, 5one of the a"ove. 9.c. &an t#e )artners#i) creditors #old L, 0 and $liable a/ter all t#e assets o/ t#e )artners#i) are ex#austed6 ,1-. )A, 0es. The stipulation e#empting P from losses is valid only among the partners. I is lia"le "ecause the agreement limiting his lia"ility to his capital contri"ution is not valid insofar as the creditors are concerned. ;aving ta8en part in the management of the partnership, 4 is lia"le as capitalist partner. )B, 5o. P is not lia"le "ecause there is a valid stipulation e#empting him from losses. :ince the other partners allowed him to engage in an outside "usiness activity, the stipulation a"solving P from lia"ility is valid. 2or 4, it is "asic that a limited partner is lia"le only up to the e#tent of his capital contri"ution. )C, 0es. The stipulations e#empting P and I from losses are not "inding upon the creditors. 4 is li8ewise lia"le "ecause the partnership was not formed in accordance with the re&uirements of a limited partnership. )D, 5o. The Civil Code allows the partners to stipulate that a partner shall not "e lia"le for losses. The registration of the Articles of Partnership em"odying such stipulations serves as constructive notice to the partnership creditors.)%, 5one of the a"ove is completely accurate. =. Fary is a tobacco trader and also a lendin" in*estor. De sold tobacco lea*es to Domer /or deli*ery wit#in a mont#, alt#ou"# t#e )eriod /or deli*ery was not "uaranteed. Ies)ite Fary0s e//orts to deli*er on time, trans)ortation )roblems and "o*ernment red ta)e #indered #is e//orts and #e could only deli*er a/ter 30 days. Domer re/used to acce)t t#e late deli*ery and to )ay on t#e "round t#at t#e a"reed term #ad not been com)lied wit#.

3s lendin" in*estor, Fary "ranted a $l,000,000 loan to Isaac to be )aid wit#in two years /rom execution o/ t#e contract. 3s security /or t#e loan, Isaac )romised to deli*er to Fary #is 'oyota Inno*a wit#in se*en ,7. days, but Isaac /ailed to do so. Fary was t#us com)elled to demand )ayment /or t#e loan be/ore t#e end o/ t#e a"reed twoAyear term. =.a. 7as Domer Gusti/ied in re/usin" to acce)t t#e tobacco lea*es6 ,1-. )A, 0es. ;omer was @ustified in refusing to accept the to"acco leaves. The delivery was to "e made within a month. 9ary$s promise of delivery on a G"est effortH "asis made the delivery uncertain. The term, therefore, was am"iguous. )B, 5o. ;omer was not @ustified in refusing to accept the to"acco leaves. ;e consented to the terms and conditions of the sale and must a"ide "y it. 1"ligations arising from contract have the force of law "etween the contracting parties. )C, 0es. ;omer was @ustified in his refusal to accept the delivery. The contract contemplates an o"ligation with a term. :ince the delivery was made after *4 days, contrary to the terms agreed upon, 9ary could not insist that ;omer accept the to"acco leaves. )D, 5o. ;omer was not @ustified in refusing to accept the to"acco leaves. There was no term in the contract "ut a mi#ed condition. The fulfillment of the condition did not depend purely on 9ary$s will "ut on other factors, e.g., the shipping company and the government. ;omer should comply with his o"ligation. =.b. &an Fary com)el Isaac to )ay #is loan e*en be/ore t#e end o/ t#e twoAyear )eriod6 ,1-. )A, 0es, 9ary can compel .saac to immediately pay the loan. 5on>compliance with the promised guaranty or security renders the o"ligation immediately demanda"le. .saac lost his right to ma8e use of the period. )B, 0es, 9ary can compel .saac to immediately pay the loan. The delivery of the Toyota .nnova is a condition for the loan. .saac$s failure to deliver the car violated the condition upon which the loan was granted. .t is "ut fair for 9ary to demand immediate payment. )C, 5o, 9ary cannot compel .saac to immediately pay the loan. The delivery of the car as security for the loan is an accessory contractB the principal contract is still the P 1,444,444 loan. Thus, .saac can still ma8e use of the period. )D, 5o, 9ary cannot compel .saac to immediately pay the loan. %&uity dictates that 9ary should have granted a reasona"le e#tension of time for .saac to deliver his Toyota .nnova. .t would "e unfair and "urdensome for .saac to pay the P1,444,444 simply "ecause the promised security was not delivered. 7. Lito was a commercial )ilot w#o /lew /or $aci/icA%icronesian 3ir. In 1>>?, #e was t#e coA)ilot o/ t#e airline0s @li"#t %3>1= t#at mysteriously disa))eared two #ours a/ter ta1eAo// /rom 3"ana, Fuam, )resumably o*er t#e $aci/ic Ocean. 4o trace o/ t#e )lane and its 109 )assen"ers and crew was e*er /ound des)ite dili"ent searc#H Lito #imsel/ was ne*er #eard o/ a"ain. Lito le/t be#ind #is wi/e, Lita, and t#eir two c#ildren. In 200?, Lita met and and married 8aime. '#ey now #a*e a c#ild o/ t#eir own.

7#ile on a tour wit# #er /ormer #i"# sc#ool classmates in a remote )ro*ince o/ &#ina in 2010, Lita was sur)rised to see Lito or somebody w#o loo1ed exactly li1e #im, but s#e was sure it was Lito because o/ t#e extreme sur)rise t#at re"istered in #is /ace w#en #e also saw #er. ;#oc1ed, s#e immediately /led to #er #otel and )ost #aste returned to t#e country t#e next day. Lita now comes to you /or le"al ad*ice. ;#e as1s you t#e /ollowin" (uestionsC 7.a. I/ Lito is ali*e, w#at is t#e status o/ #is marria"e to Lita6 ,1-. )A, The marriage su"sists "ecause the marital "ond has not "een terminated "y death. )B, The marriage was terminated when Iita married Caime. )C, The marriage su"sists "ecause Iita$s marriage to Caime is void. )D, The marriage is terminated "ecause Iito is presumed dead after his plane has "een missing for more than / years. )%, The marriage can "e formally declared terminated if Iito would not resurface. 7.b. I/ Lito is ali*e, w#at is t#e status o/ Lita0s marria"e to 8aime6 ,1-. )A, The marriage is valid "ecause Iita$s marriage to Iito was terminated upon Iito$s disappearance for more than seven years. )B, The marriage is valid. After an a"sence of more than 14 years, Iito is already presumed dead for all purposes. )C, The marriage is void. Iito$s mere a"sence, however lengthy, is insufficient to authori7e Iita to contract a su"se&uent marriage. )D, The marriage is void. .f Iito is indeed alive, his marriage to Iita was never dissolved and they can resume their marital relations at any time. ?. 7#ic# o/ t#e /ollowin" actions or de/enses are meritoriousC ,1-. )A, An action for recovery of downpayment paid under a rescinded oral sale of real property. )B, A defense in an action for e@ectment that the lessor ver"ally promised to e#tend or renew the lease. )C, An action for payment of sum of money filed against one who orally promised to answer another$s de"t in case the latter defaults. )D, A defense in an action for damages that the de"tor has sufficient, "ut unli&uidated assets to satisfy the credit ac&uired when it "ecomes due. )%, 5one of the a"ove. >. 2etty entrusted to #er a"ent, 3ida, se*eral )ieces o/ Gewelry to be sold on commission wit# t#e ex)ress obli"ation to turn o*er to 2etty t#e )roceeds o/ t#e sale, or to return t#e Gewelries i/ not sold in a mont#0s time. Instead o/ sellin" t#e Gewelries, 3ida )awned t#em wit# t#e 'ambuntin"

$awns#o), and used t#e money /or #ersel/. 3ida /ailed to redeem t#e )awned Gewelries and a/ter a mont#, 2etty disco*ered w#at 3ida #ad done. 2etty brou"#t criminal c#ar"es w#ic# resulted in 3ida0s con*iction /or esta/a. 2etty t#erea/ter /iled an action a"ainst 'ambuntin" $awns#o) /or t#e reco*ery o/ t#e Gewelries. 'ambuntin" raised t#e de/ense o/ owners#i), additionally ar"uin" t#at it is duly licensed to en"a"e in t#e )awns#o) and lendin" business, and t#at it acce)ted t#e mort"a"e o/ t#e Gewelry in "ood /ait# and in t#e re"ular course o/ its business. I/ you were t#e Gud"e, #ow will you decide t#e case6 ,1-. )A, . will rule in favor of Betty. !y ruling is "ased on the Civil Code provision that one who has lost any mova"le or has "een unlawfully deprived thereof may recover it from the person in possession of the same. Tam "unting$s claim of good faith is inconse&uential. )B, . will rule in favor of Betty. Tam"unting$s claim of good faith pales into insignificance in light of the unlawful deprivation of the @ewelries. ;owever, e&uity dictates that Tam"unting must "e reim"ursed for the pawn value of the @ewelries. )C, . will rule in favor of Tam"unting. .ts good faith ta8es precedence over the right of Betty to recover the @ewelries. )D, . will rule in favor of Tam"unting. 9ood faith is always presumed. Tam"unting$s lawful ac&uisition in the ordinary course of "usiness coupled with good faith gives it legal right over the @ewelries. 10. 3rlene owns a row o/ a)artment #ouses in Kamunin", Que<on &ity. ;#e a"reed to lease 3)artment 4o. 1 to 8anet /or a )eriod o/ 1? mont#s at t#e rate o/ $10,000 )er mont#. '#e lease was not co*ered by any contract. 8anet )rom)tly "a*e 3rlene two ,2. mont#s de)osit and 1? c#ec1s co*erin" t#e rental )ayment /or 1? mont#s. '#is s#ow o/ "ood /ait# )rom)ted 3rlene to )romise 8anet t#at s#ould 3rlene decide to sell t#e )ro)erty, s#e would "i*e 8anet t#e ri"#t o/ /irst re/usal. 10.a. 4ot lon" a/ter 8anet mo*ed in, s#e recei*ed news t#at #er a))lication /or a %aster o/ Laws sc#olars#i) at Kin"0s &olle"e in London #ad been a))ro*ed. ;ince #er acce)tance o/ t#e sc#olars#i) entailed a trans/er o/ residence, 8anet as1ed 3rlene to return t#e ad*ance rental )ayments s#e made. 3rlene re/used, )rom)tin" 8anet to /ile an action to reco*er t#e )ayments. 3rlene /iled a motion to dismiss, claimin" t#at t#e lease on w#ic# t#e action is based, is unen/orceable. I/ you were t#e Gud"e, would you "rant 3rlene0s motion6 ,1-. )A, 0es, . will grant the motion "ecause the lease contract "etween Arlene and Canet was not in writing, hence, Canet may not enforce any right arising from the same contract. )B, 5o, . will not grant the motion "ecause to allow Arlene to retain the advance payments would amount to un@ust enrichment. )C, 0es, . will grant the motion "ecause the action for recovery is prematureB Canet should first secure a @udicial rescission of the contract of lease.

)D, 5o. . will not grant the motion "ecause the cause of action does not see8 to enforce any right under the contract of lease. 10.b. 3ssume t#at 8anet decided not to acce)t t#e sc#olars#i) and continued leasin" 3)artment 4o. 1. %idway t#rou"# t#e lease )eriod, 3rlene decided to sell 3)artment 4o. 1 to 8un in breac# o/ #er )romise to 8anet to "rant #er t#e ri"#t o/ /irst re/usal. '#us, 8anet /iled an action see1in" t#e reco"nition o/ #er ri"#t o/ /irst re/usal, t#e )ayment o/ dama"es /or t#e *iolation o/ t#is ri"#t, and t#e rescission o/ t#e sale between 3rlene and 8un. Is 8anet0s action meritorious6 ,1-. )A, 0es, under the Civil Code, a promise to "uy and sell a determinate thing is reciprocally demanda"le. )B, 5o, the promise to "uy and sell a determinate thing was not supported "y a consideration. )C, 0es, Canet$s right of first refusal was clearly violated when the property was not offered for sale to her "efore it was sold to Cun. )D, 5o, a right of first refusal involves an interest over real property that must "e em"odied in a written contract to "e enforcea"le. )%, 5one of the a"ove.

-41* Ia"or Iaw %#am !C6s

on October 21, 2013

KBelow are the !ultiple Choice 6uestions as8ed in the -41* Bar %#ams in Ia"or Iaw. Answers are highlighted.L 1. '#e )arties to a labor dis)ute can *alidly submit to *oluntary arbitration +++++++++. ,1-. )A, any disputed issue they may agree to voluntarily ar"itrate )B, only matters that do not fall within the e#clusive @urisdiction of the Ia"or Ar"iter )C, any disputed issue "ut only after conciliation at the 5ational Conciliation and !ediation Board fails )D, any disputed issue provided that the Ia"or Ar"iter has not assumed @urisdiction over the case on compulsory ar"itration )%, only matters relating to the interpretation or implementation of a collective "argaining agreement 2. 7#en t#ere is no reco"ni<ed collecti*e bar"ainin" a"ent, can a le"itimate labor or"ani<ation *alidly declare a stri1e a"ainst t#e em)loyer6 ,1-. )A, 0es, "ecause the right to stri8e is guaranteed "y the Constitution and cannot "e denied to any group of employees. )B, 5o, "ecause only an e#clusive "argaining agent may declare a stri8e against the employer. )C, 0es, "ecause the right to stri8e is a "asic human right that the country$s international agreements and the .nternational Ia"or 1rgani7ation recogni7e. )D, 0es, "ut only in case of unfair la"or practice. )%, 5o, in the a"sence of a recogni7ed "argaining agent, the wor8ers$ recourse is to file a case "efore the Department of Ia"or and %mployment. 3. %r. Iel &armen, unsure i/ #is /oray into business ,messen"erial ser*ice caterin" )urely to law /irms. would succeed but intendin" to "o lon"Aterm i/ #e #urdles t#e /irst y

-41* Ta#ation Iaw %#am !C6s

on October 21, 2013

KBelow are the !ultiple Choice 6uestions as8ed in the -41* Bar %#ams in Ia"or Iaw.

1. 32& &or). was dissol*ed and li(uidatin" di*idends were declared and )aid to t#e stoc1#olders. 7#at tax conse(uence /ollows6 ,1-. )A, ABC Corp. should deduct a final ta# of 14+ from the dividends. )B, The stoc8holders should declare their gain from their investment and pay income ta# at the ordinary rates. )C, The dividends are e#empt from ta#. )D, ABC Corp. should withhold a 14+ credita"le ta#. 2. %F& &or). secured an income tax #oliday /or 9 years as a )ioneer industry. On t#e /ourt# year o/ t#e tax #oliday, %F& &or). declared and )aid cas# di*idends to its stoc1#olders, all o/ w#om are indi*iduals. 3re t#e di*idends taxable6 ,1-. )A, The dividends are ta#a"leB the ta# e#emption of !9C Corp. does not e#tend to its stoc8holders. )B, The dividends are ta# e#empt "ecause of !9C Corp.$s income ta# holiday. )C, The dividends are ta#a"le if they e#ceed 4+ of !9C Corp.$s retained earnings. )D, The dividends are e#empt if paid "efore the end of !9C Corp.$s fiscal year. 3. %r. 3las sells s#oes in %a1ati t#rou"# a retail store. De )ays t#e 3' on #is "ross sales to t#e 2IR and t#e munici)al license tax based on t#e same "ross sales to t#e &ity o/ %a1ati. De comes to you /or ad*ice because #e t#in1s #e is bein" subGected to double taxation. 7#at ad*ice will you "i*e #im6 ,1-. )A, 0es, there is dou"le ta#ation and it is oppressive. )B, The City of !a8ati does not have this power. )C, 0es, there is dou"le ta#ation and this is illegal m the Philippines. )D, Dou"le ta#ation is allowed where one ta# is imposed "y the national government and the other "y the local government.

5. &on"ress )assed a sin tax law t#at increased t#e tax rates on ci"arettes by 1,000-. '#e law was t#ou"#t to be su//icient to dri*e many ci"arette com)anies out o/ business, and was (uestioned in court by a ci"arette com)any t#at would "o out o/ business because it would not be able to )ay t#e increased tax. '#e ci"arette com)any is ++++++++++ ,1-. )A, wrong "ecause ta#es are the life"lood of the government

)B, wrong "ecause the law recogni7es that the power to ta# is the power to destroy )C, correct "ecause no government can deprive a person of his livelihood )D, correct "ecause Congress, in this case, e#ceeded its power to ta# 9. %r. 3l*are< is in t#e retail business. De recei*ed a de/iciency tax assessment /rom t#e 2IR containin" only t#e com)utation o/ t#e de/iciency tax and t#e )enalties, wit#out any ex)lanation o/ t#e /actual and le"al bases /or t#e assessment. Is t#e assessment *alid6 ,1-. )A, The assessment is validB all that !r. Alvare7 has to 8now is the amount of the ta#. )B, The assessment is invalidB the law re&uires a statement of the facts and the law upon which the assessment is "ased. )C, The assessment is valid "ut !r. Alvare7 can still contest it. )D, The assessment is invalid "ecause !r. Alvare7 has no way to determine if the computation is erroneous. =. In 2010, %r. $laton sent #is sister Delen L1 ,000 *ia a tele"ra)#ic trans/er t#rou"# t#e 2an1 o/ $I. '#e ban10s remittance cler1 made a mista1e and credited Delen wit# L1,000,000 w#ic# s#e )rom)tly wit#drew. '#e ban1 demanded t#e return o/ t#e mista1enly credited excess, but Delen re/used. '#e 2IR entered t#e )icture and in*esti"ated Delen. 7ould t#e 2IR be correct i/ it determines t#at Delen earned taxable income under t#ese /acts6 ,1-. )A, 5o, she had no income "ecause she had no right to the mista8enly credited funds. )B, 0es, income is income regardless of the source. )C, 5o, it was not her fault that the funds in e#cess of M1,444 were credited to her. )D, 5o, the funds in e#cess ofM1,444 were in effect donated to her. 7. '#e munici)ality o/ ;an Isidro )assed an ordinance im)osin" a tax on installation mana"ers. 3t t#at time, t#ere was only one installation mana"er in t#e munici)alityH t#us, only #e would be liable /or t#e tax. Is t#e law constitutional6 ,1-. )A, .t is unconstitutional "ecause it clearly discriminates against this person. )B, .t is unconstitutional for lac8 of legal "asis. )C, .t is constitutional as it applies to all persons in that class. )D, .t is constitutional "ecause the power to ta# is the power to destroy.

?. !MN &or)oration manu/actures "lass )anels and is almost at t#e )oint o/ insol*ency. It #as no more cas# and all it #as are unsold "lass )anels. It recei*ed an assessment /rom t#e 2IR /or de/iciency income taxes. It wants to )ay but due to lac1 o/ cas#, it see1s )ermission to )ay in 1ind wit# "lass )anels. ;#ould t#e 2IR "rant t#e re(uested )ermission6 ,1-. )A, .t should grant permission to ma8e payment convenient to ta#payers. )B, .t should not grant permission "ecause a ta# is generally a pecuniary "urden. )C, .t should grant permissionB otherwise, N0O Corporation would not "e a"le to pay. )D, .t should not grant permission "ecause the government does not have the storage facilities for glass panels. >. $rior to t#e 3' law, sales o/ cars were subGect to a sales tax but t#e tax a))lied only to t#e

ori"inal or t#e /irst saleH t#e second and subse(uent sales were not subGect to tax. Ieltoid %otors, Inc. ,Ieltoid. #it on t#e idea o/ settin" u) a w#ollyAowned subsidiary, Fonmad %otors, Inc. ,Fonmad., and o/ sellin" its assembled cars to Fonmad at a low )rice so it would )ay a lower tax on t#e /irst sale. Fonmad would t#en sell t#e cars to t#e )ublic at a #i"#er )rice wit#out )ayin" any sales tax on t#is subse(uent sale. &#aracteri<e t#e arran"ement. ,1-. A. The plan is a legitimate e#ercise of ta# planning and merely ta8es advantage of a loophole in the law. B. The plan is legal "ecause the government collects ta#es anyway. C. The plan is improperB the veil of corporate fiction can "e pierced so that the second sale will "e considered the ta#a"le sale. D. The government must respect 9onmad$s separate @uridical personality and Deltoid$s ta#a"le sale to it. 10. $R' &or). )urc#ased a residential #ouse and lot wit# a swimmin" )ool in an u)scale subdi*ision and re(uired t#e com)any )resident to stay t#ere wit#out )ayin" rentH it reasoned out t#at t#e com)any )resident must maintain a certain ima"e and be able to entertain "uests at t#e #ouse to )romote t#e com)any0s business. '#e com)any )resident declared t#at because t#ey are c#ildless, #e and #is wi/e could *ery well li*e in a smaller #ouse. 7as t#ere a taxable /rin"e bene/it6 ,1-. )A, There was no ta#a"le fringe "enefit since it was for the convenience of the employer and was necessary for its "usiness. )B, There was a ta#a"le fringe "enefit since the stay at the house was for free. )C, There was a ta#a"le fringe "enefit "ecause the house was very lu#urious. )D, There was no ta#a"le fringe "enefit "ecause the company president was only re&uired to stay there and did not demand free housing.

11. 'ax)ayer 3 was re(uired by t#e 2IR to si"n and submit a wai*er o/ t#e statute o/ limitations on t#e assessment )eriod, to "i*e t#e 2IR more time to com)lete its in*esti"ation. '#e 2IR acce)ted t#e wai*er but /ailed to indicate t#e date o/ its acce)tance. 7#at is t#e le"al status o/ t#e wai*er6 ,1-. )A, The waiver is valid "ecause the date of acceptance is immaterial and unimportant. )B, The waiver is invalidB the ta#payer cannot "e re&uired to waive the statute of limitations. )C, The waiver is invalidB the date of acceptance is crucial in counting the start of the period of suspension of the prescriptive period. )D, The waiver is valid, having "een accepted "y the B.R. 12. 'ax)ayer 3ndy recei*ed on 8anuary 3, 2010 a )reliminary assessment notice ,$34. /rom t#e 2IR, statin" t#at #e #ad /i/teen ,19. days /rom its recei)t to comment or to /ile a )rotest. Ei"#t ,?. days later ,or on 8anuary11, 2010., be/ore #e could comment or /ile a )rotest, 3ndy recei*ed t#e /inal assessment notice ,@34.. Iecide on t#e *alidity o/ t#e @34. ,1-. )A, The 2A5 is invalidB Andy was not given the chance to respond to the PA5, in violation of his due process rights. )B, The 2A5 is invalid for "eing premature. )C, The 2A5 is valid since it was issued "efore the right to assess prescri"ed. )D, The 2A5 is valid. There is no legal re&uirement that the 2A5 should await the protest to the PA5 "ecause protest to the PA5 is not mandatory. 13. %;I &or). im)orts oran"e and lemon concentrates as raw materials /or t#e /ruit drin1s it sells locally. '#e 2ureau o/ &ustoms ,2O&. im)osed a 1- duty rate on t#e concentrates. ;ubse(uently, t#e 2O& c#an"ed its )osition and #eld t#at t#e concentrates s#ould be taxed at 7- duty rate. %;I disa"reed wit# t#e rulin" and (uestioned it in t#e &'3 w#ic# u)#eld %;I0s )osition. '#e &ommissioner o/ &ustoms a))ealed to t#e &'3 en bane wit#out /ilin" a motion /or reconsideration. Resol*e t#e a))eal. ,1-. )A, The appeal should "e dismissed "ecause a motion for reconsideration is mandatory. )B, The appeal should "e dismissed for having "een filed out of time. )C, The appeal should "e given due course since a motion for reconsideration is a useless e#ercise. )D, The appeal should "e upheld to "e fair to the government which needs ta#es. 15. '#e s)ouses 8un and El*ira ;ando*al )urc#ased a )iece o/ land /or $9,000,000 and included t#eir two ,2. minor c#ildren as coA)urc#asers in t#e Ieed o/ 3bsolute ;ale. '#e &ommissioner o/

Internal Re*enue ,&IR. ruled t#at t#ere was an im)lied donation and assessed donors0 taxes a"ainst t#e s)ouses. Rule on t#e &IR0s action. ,1-. )A, The C.R is wrongB a donation must "e e#press. )B, The C.R is wrongB financial capacity is not a re&uirement for a valid sale. )C, The C.R is correctB the amount involved is huge and ultimately ends up with the children. )D, The C.R is correctB there was animus donandi since the children had no financial capacity to "e co> purchasers. 19. $#eleco is a )ower "eneration and distribution com)any o)eratin" mainly /rom t#e &ity o/ 'a"ui". It owns electric )oles w#ic# it also rents out to ot#er com)anies t#at use )oles suc# as tele)#one and cable com)anies. 'a"ui" )assed an ordinance im)osin" a /ee e(ui*alent to 1- o/ t#e annual rental /or t#ese )oles. $#eleco (uestioned Ot#e le"ality o/ t#e ordinance on t#e "round t#at it im)oses an income tax w#ic# local "o*ernment units ,LF:s. are )ro#ibited /rom im)osin". Rule on t#e *alidity o/ t#e ordinance. ,1-. )A, The ordinance is voidB the fee is "ased on rental income and is therefore a ta# on income. )B, The ordinance is valid as a legitimate e#ercise of police power to regulate electric poles. )C, The ordinance is voidB 1+ of annual rental is e#cessive and oppressive. )D, The ordinance is validB an I9< may impose a ta# on income. 1=. 3leta sued 2oboy /or breac# o/ )romise to marry. 2oboy lost t#e case and duly )aid t#e court0s award t#at included, amon" ot#ers, $l00,000 as moral dama"es /or t#e mental an"uis# 3leta su//ered. Iid 3leta earn a taxable income6 ,1-. )A, :he had a ta#a"le income of P144,444 since income is income from whatever source. )B, :he had no ta#a"le income "ecause it was a donation. )C, :he had ta#a"le income since she made a profit. )D, :he had no ta#a"le income since moral damages are compensatory. 17. %r. %ayu"a donated #is residential #ouse and lot to #is son and duly )aid t#e donor0s tax. In t#e Ieed o/ Ionation, %r. %ayu"a ex)ressly reser*ed /or #imsel/ t#e usu/ruct o*er t#e )ro)erty /or as lon" as #e li*ed. Iescribe t#e donated )ro)erty /rom t#e taxation )ers)ecti*e. ,1-. )A, The property will form part of !r. !ayuga$s gross estate when he dies. )B, The property will not fom1 part of !r. !ayuga$s gross estate when he dies "ecause he paid the donor$s ta#.

)C, The property will form part of !r. !ayuga$s gross estate "ecause he died soon after the donation. )D, The property will not form part of !r. !ayuga$s gross estate "ecause it is no longer his. 1?. %r. N made an im)ortation w#ic# #e declared at t#e 2ureau o/ &ustoms ,2O&. as P:sed 'ruc1 Re)lacement $artsQ. :)on in*esti"ation, t#e container *ans contained 19 units o/ $orsc#e and @errari cars. &#aracteri<e %r. N0s action. ,1-. )A, !r. O committed smuggling. )B, !r. O did not commit smuggling "ecause he su"mitted his shipment to B1C e#amination. )C, !r. O only made a misdeclaration, "ut did not commit smuggling. )D, !r. O did not commit smuggling "ecause the shipment has not left the customs area. 1>. %r. 3 was )re)arin" #is income tax return and #ad some doubt on w#et#er a commission #e earned s#ould be declared /or t#e current year or /or t#e succeedin" year. De sou"#t t#e o)inion o/ #is lawyer w#o ad*ised #im to re)ort t#e commission in t#e succeedin" year. De #eeded #is lawyer0s ad*ice and re)orted t#e commission in t#e succeedin" year. '#e lawyer0s ad*ice turned out to be wron"H in %r. 30s )etition a"ainst t#e 2IR assessment, t#e court ruled a"ainst %r. 3. Is %r. 3 "uilty o/ /raud6 ,1-. )A, !r. A is not guilty of fraud as he simply followed the advice of his lawyer. )B, !r. A is guilty of fraudB he deli"erately did not report the commission in the current year when he should have done so. )C, !r. A$s lawyer should pay the ta# for giving the wrong advice. )D, !r. A is guilty for failing to consult his accountant. 20. '#e 2IR, t#rou"# t#e &ommissioner, instituted a system re(uirin" tax)ayers to submit to t#e 2IR a summary list o/ t#eir sales and )urc#ases durin" t#e year, indicatin" t#e name o/ t#e seller or t#e buyer and t#e amount. 2ased on t#ese lists, t#e 2IR disco*ered t#at in 2005 32& &or). )urc#ased /rom !MN &or). "oods wort#$9,000,000. !MN &or). did not declare t#ese /or income tax )ur)oses as its re)orted "ross sales /or 2005was only $l,000,000. 7#ic# o/ t#e /ollowin" de/enses may !MN &or). inter)ose in an assessment a"ainst it by t#e 2IR6 ,1-. )A, The B.R has no authority to o"tain third party information to assess ta#payers. )B, The third party information is inadmissi"le as hearsay evidence. )C, The system of re&uiring ta#payers to su"mit third party information is illegal for violating the right to privacy. )D, 5one of the a"ove.