2014 Bar Examinations

2014 BAR EXAMINATIONS
POLITICAL LAW
October 5, 2014
8:00A.M.- 12:00 N.N.

INSTRUCTIONS
1. This Questionnaire contains THIRTEEN (13) pages including these Instructions pages. Check the number of pages and the page
numbers at the upper right hand corner of each page of this Questionnaire and make sure it has the correct number of pages and
their proper numbers.
There are THIRTY (30) Essay and Multiple Choice Questions (MCQs) to be answered within four (4) hours.
2. Read each question very carefully and write your answers in your Bar Examination Notebook in the same order the questions are
posed. Write your answers only on the front, not the back, page of every sheet in your Notebook. Note well the allocated percentage
points for each number, question, or subquestion. In your answers, use the numbering system in the questionnaire.
If the sheets provided in your Examination Notebook are not sufficient for your answers, use the back page of every sheet of your
Examination Notebook, starting at the back page of the first sheet and the back of the succeeding sheets thereafter.
3. Answer the Essay questions legibly, clearly, and concisely. Start each number on a separate page. An answer to a sub-question
under the same number may be written continuously on the same page and the immediately succeeding pages until completed.
Your answer should demonstrate your ability to analyze the facts presented by the question, to select the material from the
immaterial facts, and to discern the points upon which the question turns. It should show your knowledge and understanding of the
pertinent principles and theories of law involved and their qualifications and limitations. It should demonstrate your ability to apply the
law to the given facts, and to reason logically in a lawyerlike manner to a sound conclusion from the given premises.
A mere "Yes" or "No" answer without any corresponding explanation or discussion will not be given any credit. Thus,
always briefly but fully explain your answers although the question does not expressly ask for an explanation. At the same time,
remember that a complete explanation does not require that you volunteer information or discuss legal doctrines that are not
necessary or pertinent to the solution to the problem. You do not need to re-write or repeat the question in your Notebook.
4. MCQs are to be answered by writing in your Notebook the capital letter A, B, C, D or E, corresponding to your chosen answer.
There is only one correct answer to every MCQ; choose the BEST answer from among the offered choices. Note that some MCQs
may need careful analysis both of the questions and the choices offered.
5. Make sure you do not write your name or any extraneous note/s or distinctive marking/s on your Notebook that can serve as an
identifying mark/s (such as names that are not in the given questions, prayers, or private notes to the Examiner).
Writing, leaving or making any distinguishing or identifying mark in the exam Notebook is considered cheating and can disqualify you
for the Bar examinations.
You can use the questionnaire for notes you may wish/need to write during the examination.
YOU CAN BRING HOME THIS QUESTIONNAIRE OR HAND IT TOGETHER WITH YOUR NOTEBOOK
J. DIOSDADO M. PERALTA
Chairman
2014 Bar Examinations
I.
With the passage of time, the members of the House of Representatives increased with the creation of new legislative districts and
the corresponding adjustments in the number of party-list representatives. At a time when the House membership was already 290, a
great number of the members decided that it was time to propose amendments to the Constitution. The Senators, however, were
cool to the idea. But the members of the House insisted. They accordingly convened Congress into a constituent assembly in spite of
the opposition of the majority of the members of the Senate. When the votes were counted, 275 members of the House of
Representatives approved the proposed amendments. Only 10 Senators supported such proposals. The proponents now claim that
the proposals were validly made, since more than the required three-fourths vote of Congress has been obtained. The 14 Senators
who voted against the proposals claim that the proposals needed not three-fourths vote of the entire Congress but each house.
Since the required number of votes in the Senate was not obtained, then there could be no valid proposals, so argued the Senators.
Were the proposals validly adopted by Congress? (5%)
II.
Several citizens, unhappy with the proliferation of families dominating the political landscape, decided to take matters into their own
hands. They proposed to come up with a peoples initiative defining political dynasties. They started a signature campaign for the
purpose of coming up with a petition for that purpose. Some others expressed misgivings about a peoples initiative for the purpose
of proposing amendments to the Constitution, however. They cited the Courts decision in Santiago v. Commission on Elections, 270
SCRA 106 (1997), as authority for their position that there is yet no enabling law for s uch purpose. On the other hand, there are also
those who claim that the individual votes of the justices in Lambino v. Commission on Elections, 505 SCRA 160 (2006), mean that
Santiagos pronouncement has effectively been abandoned. If you were consulted by those behind the new attempt at a peoples
initiative, how would you advise them? (4%)
III.
In Serrano v. Gallant Maritime Services, Inc., 582 SCRA 254 (2009), the Supreme Court declared as violative of the Equal Protection
Clause the 5th paragraph of 10 R.A. No. 8042 (Migrant Workers and Overseas Filipinos Act of 1995) for discriminating against
illegally dismissed OFWs who still had mo re than a year to their contract compared to those who only had less than a year
remaining. The next year, Congress enacted R.A. No 10222, an amendment to the Migrant Workers and Overseas Filipinos Act,
which practically reinstated the provision struck down in Serrano.
Seamacho, an overseas seafarer who still had two years remaining on his contract when he was illegally terminated, and who would
only be entitled to a maximum of six-months pay under the reinstated provision, engages you as his counsel. How are you to argue
that the new law is invalid insofar as it brings back to the statute books a provision that has already been struck down by the Court?
(5%)
IV.
Beauty was proclaimed as the winning candidate for the position of Representative in the House of Representatives three (3) days
after the elections in May. She then immediately took her oath of office. However, there was a pending disqualification case against
her, which case was eventually decided by the COMELEC against her 10 days after the election. Since she has already been
proclaimed, she ignored that decision and did not bother appealing it. The COMELEC then declared in the first week of June that its
decision holding that Beauty was not validly elected had become final. Beauty then went to the Supreme Court questioning the
jurisdiction of the COMELEC claiming that since she had already been proclaimed and had taken her oath of office, such election
body had no more right to come up with a decision that the jurisdiction had already been transferred to the House of
Representatives Electoral Tribunal. How defensible is the argument of Beauty? (4%)
V.
Greenpeas is an ideology-based political party fighting for environmental causes. It decided to participate under the party-list system.
When the election results came in, it only obtained 1.99 percent of the votes cast under the party -list system. Bluebean, a political
observer, claimed that Greenpeas is not entitled to any seat since it failed to obtain at least 2% of the votes. Moreover, since it does
not represent any of the marginalized and underrepresented sectors of society, Greenpeas is not entitled to participate under the
party-list system. How valid are the observations of Bluebean? (4%)
VI.
A few months before the end of the present Congress, Strongwill was invited by the Senate to shed light in an inquiry relative to the
alleged siphoning and diverting of the pork barrel of members of Congress to non-existent or fictitious projects. Strongwill has been
identified in the news as the principal actor responsible for the scandal, the leader of a non-governmental organization which
ostensibly funnelled the funds to certain local government projects which existed only on paper. At the start of the hearings before the
Senate, Strongwill refused at once to cooperate. The Senate cited him in contempt and sent him to jail until he would have seen the
light. The Congress, thereafter, adjourned sine die preparatory to the assumption to office of the newly-elected members. In the
meantime, Strongwill languished behind bars and the remaining senators refused to have him released, claiming that the Senate is a
continuing body and , therefore, he can be detained indefinitely. Are the senators right? (4%)
VII.
Margie has been in the judiciary for a long time, starting from the lowest court. Twenty (20) years from her first year in the judiciary,
she was nominated as a Justice in the Court of Appeals. Margie also happens to be a first-degree cousin of the President. The
Judicial and Bar Council included her in the short-list submitted to the President whose term of office was about to end it was a
month before the next presidential elections. Can the President still make appointments to the judiciary during the so-called midnight
appointment ban period? Assuming that he can still make appointments, could he appoint Margie, his cousin? (4%)
VIII.
The President, concerned about persistent reports of widespread irregularities and shenanigans related to the alleged ghost projects
with which the pork barrel funds of members of Congress had been associated, decided not to release the funds authorized under a
Special Appropriations Act for the construction of a new bridge. The Chief Executive explained that, to pro perly conserve and
preserve the limited funds of the government, as well as to avoid further mistrust by the people, such a project which he considered
as unnecessary since there was an old bridge near the proposed bridge which was still functional should be scrapped. Does the
President have such authority? (4%)
IX.
Gerrymandering refers to the practice of: (1%)
(A) creating or dividing congressional districts in a manner intended to favor a particular party or candidate
(B) truancy as applied to Members of Congress
(C) loafing among members of Congress
(D) coming up with guessing game when it comes to legislation
(E) commandeering large chunks of the budget for favoured congressional districts
X.
The void-for-vagueness doctrine is a concept which means that: (1%)
(A) if a law is vague, then it must be void
(B) any law which could not be understood by laymen is a nullity
(C) if a law is incomprehensible to ordinary people such that they do not really know what is required or prohibited, then
the law must be struck down
(D) a government regulation that lacks clear standards is nonsensical and useless as a guide for human conduct
(E) clarity in legal language is a mandate of due process.
XI.
In keeping with the modern age of instant and incessant information and transformation, Congress passed Cybercrime Prevention
Act to regulate access to and use of the amenities of the cyberspace. While ostensibly the law is intended to protect the interests of
society, some of its provisions were also seen as impermissibly invading and impairing widely cherished liberties of the people
particularly the freedom of expression. Before the law could even be implemented, petitions were filed in the Supreme Court
questioning said provisions by people who felt threatened, for themselves as well as for the benefit of others who may be similarly
affected but not minded enough to challenge the law. The Solicitor General countered that there is no basis for the exercise of the
power of judicial review since there has yet been no violation of the law, and therefore, there is no actual case or controversy to
speak of, aside from the fact that the petitioners have no locus standi since they do not claim to be in imminent danger of being
prosecuted under the law. Can the Court proceed to decide the case even if the law has not yet become effective? (4%)
XII.
The Court had adopted the practice of announcing its decision in important, controversial or interesting cases the moment the votes
had been taken among the justices, even as the final printed decision and separate opinions are not yet available to the public. In a
greatly anticipated decision in a case of wide-ranging ramifications, the voting was close 8 for the majority, while 7 were for the
other side. After the Court had thus voted, it issued a press release announcing the result, with the advice that the printed copy of the
decision, together with the separate opinions, were to be issued subsequently. The following day, however, one of the members of
the Court died. The Court then announced that it would deliberate anew on the case since apparently the one who died belonged to
the majority. Citizens for Transparency, a group of civic-spirited professionals and ordinary citizens dedicated to transparency and
accountability in the government, questioned the act of the Court. The petitioners claimed the decision had already been validly
adopted and promulgated. Therefore, it could no longer be recalled by the Court. At the same time, the group also asked the Court to
disclose to the public the original decision and the separate opinions of the magistrates, together with what they had deliberated on
just before they came up with the press release about the 8-7 decision. (6%)
(A) Was the announced 8-7 decision already validly promulgated and thus not subject to recall?
(B) If the decision was not yet finalized at the time when the justice died, could it still be promulgated?
(C) If the decision was still being finalized, should the Court release to the public the majority decision and the separate
opinions as originally announced, together with their deliberations on the issues?
XIII.
Congress may increase the appellate jurisdiction of the Supreme Court: (1%)
(A) anytime it wants
(B) if requested by the Supreme Court
(C) upon recommendation of the President
(D) only with the advice and concurrence of the Supreme Court
(E) whenever it deems it appropriate, advisable or necessary
XIV.
The guarantee of freedom of expression signifies: (1%)
(A) absolute freedom to express oneself
(B) freedom from prior restraint
(C) right to freely speak on anything without limitations
(D) the right of the government to regulate speech
(E) the right of broadcast stations to air any program
XV.
Allmighty Apostles is a relatively new religious group and movement with fast-growing membership. One time, DeepThroat, an
investigative reporter, made a research and study as to what the groups leader, Maskeraid was actually doing. DeepThroat
eventually came up with the conclusion that Maskeraid was a phony who is just fooling the simple-minded people to part with their
money in exchange for the promise of eternal happiness in some far -away heaven. This was published in a newspaper which
caused much agitation among the followers of Maskeraid. Some threatened violence against DeepThroat, while some others already
started destroying properties while hurting those selling the newspaper. The local authorities, afraid of the public disorder that such
followers might do, decided to ban the distribution of the newspaper containing the article. DeepThroat went to court complaining
about the prohibition placed on the dissemination of his article. He claims that the act of the authorities partakes of the nature of
hecklers veto, thus a violation of the guaranty of press freedom. On th e other hand, the authorities counter that the act was
necessary to protect the public order and the greater interest of the community. If you were the judge, how would you resolve the
issue? (4%)
XVI.
The overbreadth doctrine posits that the government: (1%)
(A) must know the extent of its power
(B) when it exercises too much power it is like someone with bad breath it is not healthy to society
(C) can enact laws which can reach outside its borders, like long -arm statues
(D) the government is prohibited in banning unprotected speech if a substantial amount of protected speech is restrained
or chilled in the process
XVII.
Towards the end of the year, the Commission on Audit (COA) sought the remainder of its appropriation from the Department of
Budge t and Management (DBM). However, the DBM refused because the COA had not yet submitted a report on the expenditures
relative to the earlier amount released to it. And, pursuant to the "no report, no release" policy of the DBM, COA is not entitled to any
further releases in the meantime. COA counters that such a policy contravenes the guaranty of fiscal autonomy granted by the
Constitution. Is COA entitled to receive the rest of its appropriations even without complying with the DBM policy? (4%)
XVIII.
The National Building Code and its implementing rules provide, inter alia, that operators of shopping centers and malls should
provide parking and loading spaces, in accordance with a prescribed ratio. The Solicitor General, heeding the call of the public for the
provision of free parking spaces in malls, filed a case to compel said business concerns to discontinue their practice of collecting
parking fees. The mall owners and operators oppose, saying that this is an invalid taking of their property, thus a violation of due
process. The Solicitor General justifies it, however, claiming that it is a valid exercise of police power. Could the mall owners and
operators be validly compelled to provide free parking to their customers? (4%)
XIX.
Surveys Galore is an outfit involved in conducting nationwide surveys. In one such survey, it asked the people about the degree of
trust and confidence they had in several institutions of the government. When the results came in, the judiciary was shown to be less
trusted than most of the government offices. The results were then published by the mass media. Assension, a trial court judge, felt
particularly offended by the news. He then issued a show-cause order against Surveys Galore directing the survey entity to explain
why it should not be cited in contempt for coming up with such a survey and publishing the results which were so unflattering and
degrading to the dignity of the judiciary. Surveys Galore immediately assailed the show-cause order of Judge Assension, arguing that
it is violative of the constitutional guaranty of freedom of expression. Is Surveys Galores petition meritorious? (4%)
XX.
Under the so-called doctrine of qualified political agency, (1%)
(A) civil servants must first qualify before they could be appointed to office
(B) all employees in the government are merely agents of the people
(C) the acts of subordinates presumptively of those of the heads of offices disapproves them
(D) members of the Cabinet must have the absolute trust and confidence of the President
XXI.
Constituent power refers to the authority (1%)
(A) of public officials to command respect
(B) given to Congress to enact police power measures
(C) to propose constitutional amendments or revisions
(D) of the people to take back the power entrusted to those in government
(E) of the President to call out the armed forces to suppress lawless violence
XXII.
The National Power and Grid Corporation (NPGC), a government entity involved in power generation distribution, had its transmissi
on lines traverse some fields belonging to Farmerjoe. NPGC did so without instituting any expropriation proceedings. Farmerjoe, not
knowing any better, did not immediately press his claim for payment until after ten years later when a son of his took up Law and told
him that he had a right to claim compensation. That was then the only time that Farmerjoe earnestly demanded payment. When the
NPGC ignored him, he instituted a case for payment of just compensation. In defense, NPGC pointed out that the claim had already
prescribed since under its Charter it is clearly provided that "actions for damages must be filed within five years after the rights of
way, transmission lines, substations, plants or other facilities shall have been established and that after said period, no suit shall be
brought to question the said rights of way, transmission lines, substations, plants or other facilities." If you were the lawyer of
Farmerjoe, how would you protect and vindicate the rights of your client? (4%)
XXIII.
The police got a report about a shooting incident during a town fiesta. One person was killed. The police immediately went to the
scene and started asking the people about what they witnessed. In due time, they were pointed to Edward Gunman, a security
guard, as the possible malefactor. Edward was then having refreshment in one of the eateries when the police approached him. They
asked him if he had a gun to which question he answered yes. Then they asked if he had seen anybody shot in the vicinity just a few
minutes earlier and this time he said he did not know about it. After a few more questions, one of the policemen asked Edward if he
was the shooter. He said no, but then the policeman who asked him told him that several witnesses pointed to hi m as the shooter.
Whereupon Edward broke down and started explaining that it was a matter of self-defense. Edwardwas eventually charged with
murder. During his trial, the statements he made to the police were introduced as evidence against him. He obj ected claiming that
they were inadmissible since he was not given his Miranda rights. On the other hand, the prosecution countered that there was no
need for such rights to be given since he was not yet arrested at the time of the questioning. If you wer e the judge, how would you
rule on the issue? (4%)
XXIV.
Alienmae is a foreign tourist. She was asked certain questions in regard to a complaint that was filed against her by someone who
claimed to have been defrauded by her. Alienmae answered all the questions asked, except in regard to some matters in which she
invoked her right against self-incrimination. When she was pressed to elucidate, she said that the questions being asked might tend
to elicit incriminating answers insofar as her home state is concerned. Could Alienmae invoke the right against self-incrimination if
the fear of incrimination is in regard to her foreign law? (4%)
XXV.
Rosebud is a natural-born Filipino woman who got married to Rockcold, a citizen of State Frozen. By virtue of the laws of Frozen,
any person who marries its citizens would automatically be deemed its own citizen. After ten years of marriage, Rosebud, who has
split her time between the Philippines and Frozen, decided to run for Congress. Her opponent sought her disqualification, however,
claiming that she is no longer a natural-born citizen. In any event, she could not seek elective position since she never renounced
her foreign citizenship pursuant to the Citizenship Retention and Reacquisition Act (R.A. No. 9225). Is Rosebuddisqualified to run by
reason of citizenship? (4%)
XXVI.
The one-year-bar rule in impeachment proceedings is to be reckoned from the time the (1%)
(A) first impeachment complaint is filed
(B) impeachment complaint is referred to the Committee on Justice
(C) House of Representatives vote on the impeachment complaint
(D) House of Representatives endorses the Articles of Impeachment to the Senate
XXVII.
Congress enacted a law exempting certain government institutions providing social services from the payment of court fees. Atty.
Kristopher Timoteo challenged the constitutionality of the said law on the ground that only the Supreme Court has the power to fix
and exempt said entities from the payment of court fees.
Congress, on the other hand, argues that the law is constitutional as it has the power to enact said law for it was through legislative
fiat that the Judiciary Development Fund (JDF) and the Special Allowance for Judges and Justices (SAJJ), the funding of which are
sourced from the fees collected by the courts, were created. Thus, Congress further argues that if it can enact a law utilizing court
fees to fund the JDF and SAJJ, a fortiori it can enact a law exempting the payment of court fees.
Discuss the constitutionality of the said law, taking into account the arguments of both parties? (4%)
XXVIII.
From an existing province, Wideland, Congress created a new province, Hundred Isles, consisting of several islands, with an
aggregate area of 500 square kilometres. The law creating Hundred Isles was duly approved in a plebiscite called for that purpose.
Juan, a taxpayer and a resident of Wideland, assailed the creation of Hundred Isles claiming that it did not comply with the area
requirement as set out in the Local Government Code, i.e., an area of at least 2,000 square kilometres. The proponents justified the
creation, however, pointing out that the Rules and Regulations Implementing the Local Government Code states that "the land area
requirement shall not apply where the pr oposed province is composed of one (1) or more islands." Accordingly, since the new
province consists of several islands, the area requirement need not be satisfied. How tenable is the position of the proponents? (4%)
XXIX.
Ambassador Gaylor is State Juvenus diplomatic representative to State Hinterlands. During one of his vacations, Ambassador
Gaylor decided to experience for himself the sights and sounds of State Paradise, a country known for its beauty and other
attractions. While in State Paradise, Ambassador Gaylor was caught in the company of children under suspicious circumstances. He
was arrested for violation of the strict anti-pedophilia statute of State Paradise. He claims that he is immune from arrest and
incarceration by virtue of his diplomatic immunity. Does the claim of Ambassador Gaylor hold water? (4%)
XXX.
Congress passed a law, R.A. No. 15005, creating an administrative Board principally tasked with the supervision and regulation of
legal education. The Board was attached to the Department of Education. It was empowered, among others, to prescribe minimum
standards for law admission and minimum qualifications of faculty members, the basic curricula for the course of study aligned to the
requirements for admission to the Bar, law practice and social consciousness, as well as to establish a law practice internship as a
requirement for taking the Bar which a law student shall undergo anytime during the law course, and to adopt a system of continuing
legal education. Professor Boombastick, a long-time law practitioner and lecturer in several prestigious law schools, assails the
constitutionality of the law arguing; that it encroached on the prerogatives of the Supreme Court to promulgate rules relative to
admission to the pra ctice of law, the Integrated Bar, and legal assistance to the underprivileged. If you were Professor
Boombasticks understudy, how may you help him develop clear, concise and cogent arguments in support of his position based on
the present Constitution and the decisions of the Supreme Court on judicial independence and fiscal autonomy? (4%)
---ooo0ooo--2014 BAR EXAMINATIONS
LABOR LAW
October 5, 2014
2:00P.M.- 6:00 P.M.

INSTRUCTIONS
1. This Questionnaire contains TWELVE (12) pages including these Instructions pages. Check the number of pages and the page
There are TWENTY-SEVEN (27) Essay and Multiple Choice Questions to be answered within four (4) hours.
points for each number, question, or sub-question. In your answers, use the numbering system in the questionnaire.
law to the given facts, and to reason logically in a lawyer-like manner to a sound conclusion from the given premises.
4. MCQs are to be answered by writing in your Notebook the capital letter A, B, C, or D corresponding to your chosen answer.
There is only one correct answer to every MCQ; choose the BEST answer from among the offered choices. Note that some MCQs
may need careful analysis both of the questions and the choices offered.
Chairman
I.
Linda was employed by Sectarian University (SU) to cook for the members of a religious order who teach and live inside the campus.
While performing her assigned task, Linda accidentally burned herself. Because of the extent of her injuries, she went on medical
leave. Meanwhile, SU engaged a replacement cook. Linda filed a complaint for illegal dismissal, but her employer SU contended that
Linda was not a regular employee but a domestic househelp. Decide. (4%)
II.
Lucy was one of approximately 500 call center agents at Hambergis, Inc. She was hired as a contractual employee four years ago.
Her contracts would be for a duration of five (5) months at a time, usually after a onemonth interval. Her re-hiring was contingent on
her performance for the immediately preceding contract. Six (6) months after the expiration of her last contract, Lucy went to
Hambergis personnel department to inquire why she was not yet being recalled to work. She was told that her performance during
her last contract was "below average." Lucy seeks your legal advice about her chances of getting her job back. What will your advice
be? (4%)
III.
Lolong Law Firm (LLF), which employs around 50 lawyers and 100 regular staff, suffered losses for the first time in its history. The
management informed its employees that it could no longer afford to provide them free lunch. Consequently, it announced that a
nominal fee would henceforth be charged. Was LLF justified in withdrawing this benefit which it had unilaterally been providing to its
employees? (1%)
(A) Yes, because it is suffering losses for the first time.
(B) Yes, because this is a management prerogative which is not due to any legal or contractual obligation.
(C) No, because this amounts to a diminution of benefits which is prohibited by the Labor Code.
(D) No, because it is a fringe benefit that has already ripened into a demandable right.
IV.
Linis Manpower, Inc. (LMI) had provided janitorial services to the Philippine Overseas Employment Administration (POEA) since
March 2009. Its service contract was renewed every three months. However, in the bidding held in June 2012, LMI was disqualified
and excluded. In 2013, six janitors of LMI formerly assigned at POEA filed a complaint for underpayment of wages. Both LMI and
POEA were impleaded as respondents. Should POEA, a government agency subject to budgetary appropriations from Congress, be
held liable solidarily with LMI for the payment of salary differentials due to the complainant? Cite the legal basis of your answer. (4%)
V.
Liwayway Glass had 600 rank-and-file employees. Three rival unions A, B, and C participated in the certification elections
ordered by the Med-Arbiter. 500 employees voted. The unions obtained the following votes: A-200; B-150; C-50; 90 employees voted
"no union"; and 10 were segregated votes. Out of the segregated votes, four (4) were cast by probationary employees and six (6)
were cast by dismissed employees whose respective cases are still on appeal. (10%)
(A) Should the votes of the probationary and dismissed employees be counted in the total votes cast for the purpose of
determining the winning labor union?
(B) Was there a valid election?
(C) Should Union A be declared the winner?
(D) Suppose the election is declared invalid, which of the contending unions should represent the rank-and-file
employees?
(E) Suppose that in the election, the unions obtained the following votes: A-250; B-150; C-50; 40 voted "no union"; and 10
were segregated votes. Should Union A be certified as the bargaining representative?
VI.
Lina has been working as a steward with a Miami, U.S.A.-based Loyal Cruise Lines for the past 15 years. She was recruited by a
local manning agency, Macapagal Shipping, and was made to sign a 10-month employment contract everytime she left for Miami.
Macapagal Shipping paid for Linas round-trip travel expenses from Manila to Miami. Because of a food poisoning incident which
happened during her last cruise assignment, Lina was not re-hired. Lina claims she has been illegally terminated and seeks
separation pay. If you were the Labor Arbiter handlingthe case, how would you decide? (4%)
VII.
Non-lawyers can appear before the Labor Arbiter if: (1%)
(A) they represent themselves
(B) they are properly authorized to represent their legitimate labor organization or member thereof
(C) they are duly-accredited members of the legal aid office recognized by the DOJ or IBP
(D) they appear in cases involving an amount of less than Php5,000
VIII.
As a result of a bargaining deadlock between Lazo Corporation and Lazo Employees Union, the latter staged a strike. During the
strike, several employees committed illegal acts. Eventually, its members informed the company of their intention to return to work.
(6%)
(A) Can Lazo Corporation refuse to admit the strikers?
(B) Assuming the company admits the strikers, can it later on dismiss those employees who committed illegal acts?
(C) If due to prolonged strike, Lazo Corporation hired replacements, can it refuse to admit the replaced strikers?
IX.
Luisa Court is a popular chain of motels. It employs over 30 chambermaids who, among others, help clean and maintain the rooms.
These chambermaids are part of the union rank-and-file employees which has an existing collective bargaining agreement (CBA)
with the company. While the CBA was in force, Luisa Court decided to abolish the position of chambermaids and outsource the
cleaning of the rooms to Malinis Janitorial Services, a bona fide independent contractor which has invested in substantial equipment
and sufficient manpower. The chambermaids filed a case of illegal dismissal against Luisa Court. In response, the company argued
that the decision to outsource resulted from the new managements directive to streamline operations and save on costs. If you were
the Labor Arbiter assigned to the case, how would you decide? (4%)
X.
Luisa was hired as a secretary by the Asian Development Bank (ADB) in Manila. Luisas first boss was a Japanese national whom
she got along with. But after two years, the latter was replaced by an arrogant Indian national who did not believe her work output
was in accordance with international standards. One day, Luisa submitted a draft report filled with typographical errors to her boss.
The latter scolded her, but Luisa verbally fought back. The Indian boss decided to terminate her services right then and there. Luisa
filed a case for illegal dismissal with the Labor Arbiter claiming arbitrariness and denial of due process. If you were the Labor Arbiter,
how would you decide the case? (4%)
XI.
Lionel, an American citizen whose parents migrated to the U.S. from the Philippines, was hired by JP Morgan in New York as a call
center specialist. Hearing about the phenomenal growth of the call center industry in his parents native land, Lionel sought and was
granted a transfer as a call center manager for JP Morgans operations in Taguig City. Lionelsemployment contract did not specify a
period for his stay in the Philippines. After three years of working in the Philippines, Lionel was advised that he was being recalled to
New York and being promoted to the position of director of international call center operations. However, because of certain "family
reasons," Lionel advised the company of his preference to stay in the Philippines. He was dismissed by the company. Lionel now
seeks yo ur legal advice on: (6%)
(A) whether he has a cause of action
(B) whether he can file a case in the Philippines

(C) what are his chances of winning
XII.
Which of the following groups does not enjoy the right to selforganization? (1%)
(A) those who work in a non-profit charitable institution
(B) those who are paid on a piece-rate basis
(C) those who work in a corporation with less than 10 employees
(D) those who work as legal secretaries
XIII.
Don Luis, a widower, lived alone in a house with a large garden. One day, he noticed that the plants in his garden needed trimming.
He remembered that Lando, a 17-year old out-of-school youth, had contacted him in church the other day looking for work. He
contacted Lando who immediately attended to Don Luiss garden a nd finished the job in three days. (4%)
(A) Is there an employer-employee relationship between Don Luis and Lando?
(B) Does Don Luis need to register Lando with the Social Security System (SSS)?
XIV.
Luisito has been working with Lima Land for 20 years. Wanting to work in the public sector, Luisito applied with and was offered a job
at Livecor. Before accepting the offer, he wanted to consult you whether the payments that he and Lima Land had made to the Social
Security System (SSS) can be transferred or credited to the Government Service Insurance System (GSIS). What would you advice?
(4%)
XV.
Our Lady of Peace Catholic School Teachers and Employees Labor Union (OLPCS-TELU) is a legitimate labor organization
composed of vice principals, department heads, coordinators, teachers, and non-teaching personnel of Our Lady of Peace Catholic
School (OLPCS).
OLPCS-TELU subsequently filed a petition for certification election among the teaching and non-teaching personnel of OLPCS
before the Bureau of Labor Relations (BLR) of the Department of Labor and Employment (DOLE). The Med-Arbiter subsequently
granted the petition and ordered the conduct of a joint certification election for the teaching and non-teaching personnel of OLPCS.
May OLPCS-TELU be considered a legitimate labor organization? (5%)
XVI.
Samahang East Gate Enterprises (SEGE) is a labor organization composed of the rank-and-file employees of East Gate Enterprises
(EGE), the leading manufacturer of all types of gloves and aprons.
EGE was later requested by SEGE to bargain collectively for better terms and conditions of employment of all the rank -and-file
employees of EGE. Consequently, EGE filed a petition for certification election before the Bureau of Labor Relations (BLR).
During the proceedings, EGE insisted that it should participate in the certification process. EGE reasoned that since it was the one
who filed the petition and considering that the employees concerned were its own rankand-file employees, it should be allowed to
take an active part in the certification process.
Is the contention of EGE proper? Explain. (5%)

XVII.
Philhealth is a government-owned and controlled corporation employing thousands of Filipinos. Because of the desire of the
employees of Philhealth to obtain better terms and conditions of employment from the government, they formed the Philhealth
Employees Association (PEA) and demanded Philhealth to enter into negotiations with PEA regarding terms and conditions of
employment which are not fixed by law. (4%)
(A) Are the employees of Philhealth allowed to self-organize and form PEA and thereafter demand Philhealth to enter into
negotiations with PEA for better terms and conditions of employment?
(B) In case of unresolved grievances, can PEA resort to strikes, walkouts, and other temporary work stoppages to pressure
the government to accede to their demands?
XVIII.
The procedural requirements of a valid strike include: (1%)
(A) a claim of either unfair labor practice or deadlock in collective bargaining
(B) notice of strike filed at least 15 days before a ULP-grounded strike or at least 30 days prior to the deadlock in a
bargaining grounded strike
(C) majority of the union membership must have voted to stage the strike with notice thereon furnished to the National
Conciliation and Mediation Board (NCMB) at least 24 hours before the strike vote is taken
(D) strike vote results must be furnished to the NCMB at least seven (7) days before the intended strike
XIX.
Lincoln was in the business of trading broadcast equipment used by television and radio networks. He employed Lionel as his agent.
Subsequently, Lincoln set up Liberty Communications to formally engage in the same business. He requested Lionel to be one of the
incorporators and assigned to him 100 Liberty shares. Lionel was also given the title Assistant Vice-President for Sales and Head of
Technical Coordination. After several months, there were allegations that Lionel was engaged in "under the table dealings" and
received "confidential commissions" from Libertys clients and suppliers. He was, therefore, charged with serious misconduct and
willful breach of trust, and was given 48 hours to present his explanation on the charges. Lionel was unable to comply with the 48
-hour deadline and was subsequently barred from entering company premises. Lionel then filed a complaint with the Labor Arbiter
claiming constructive dismissal. Among others, the company sought the dismissal of the complaint alleging that the case involved an
intra-corporate controversy which was within the jurisdiction of the Regional Trial Court (RTC).
If you were the Labor Arbiter assigned to the case, how would you rule on the companys motion to dismiss? (5%)
XX.
Lito was anticipating the bonus he would receive for 2013. Aside from the 13th month pay, the company has been awarding him and
his other co-employees a two to three months bonus for the last 10 years. However, because of poor over-all sales performance for
the year, the company unilaterally decided to pay only a one month bonus in 2013. Is Litos employer legally allowed to reduce the
bonus? (4%)
XXI.
An accidental fire gutted the JKL factory in Caloocan. JKL decided to suspend operations and requested its employees to stop
reporting for work. After six (6) months, JKL resumed operations but hired a new set of employees. The old set of employees filed a
case for illegal dismissal. If you were the Labor Arbiter, how would you decide the case? (4%)
XXII.
Despite a reinstatement order, an employer may choose not to reinstate an employee if: (1%)
(A) there is a strained employer-employee relationship
(B) the position of the employee no longer exists
(C) the employers business has been closed
(D) the employee does not wish to be reinstated.
XXIII.
Luningning Foods engaged the services of Lamitan Manpower, Inc., a bona fide independent contractor, to provide "tasters" that will
check on food quality. Subsequently, these "tasters" joined the union of rank -and-file employees of Luningning and demanded that
they be made regular employees of the latter as they are performing functions necessary and desirable to operate the companys
business. Luningning rejected the demand for regularization. On behalf of the "tasters", the union then filed a notice of strike with the
Department of Labor and Employment (DOLE). In response, Luningning sought a restraining order from the Regional Trial Court
(RTC) arguing that the DOLE does not have jurisdiction over t he case since it does not have an employer-employee relationship
with the employees of an independent contractor. If you were the RTC judge, would you issue a restraining order against the union?
(4%)
XXIV.
Lanz was a strict and unpopular Vice-President for Sales of Lobinsons Land. One day, Lanz shouted invectives against Lee, a poor
performing sales associate, calling him, among others, a "brown monkey." Hurt, Lee decided to file a criminal complaint for grave
defamation against Lanz. The prosecutor found probable cause and filed an information in court. Lobinsons decided to terminate
Lanz for committing a potential crime and other illegal acts prejudicial to business. Can Lanz be legally terminated by the company
on these grounds? (4%)
XXV.
Lizzy Lu is a sales associate for Luna Properties. The latter is looking to retrench Lizzy and five other sales associates due to
financial losses. Aside from a basic monthly salary, Lizzy and her colleagues receive commissions on the sales they make as well as
cost of living and representation allowances. In computing Lizzys separation pay, Luna Properties should consider her: (1%)
(A) monthly salary only
(B) monthly salary plus sales commissions
(C) monthly salary plus sales commissions, plus cost of living allowance
(D) monthly salary plus sales commissions, plus cost of living allowance and representation allowance
XXVI.
Liwanag Corporation is engaged in the power generation business. A stalemate was reached during the collective bargaining
negotiations between its management and the union. After following all the requisites provided by law, the union decided to stage a
strike. The management sought the assistance of the Secretary of Labor and Employment, who assumed jurisdiction over the strike
and issued a return-to-work order. The union defied the latter and continued the strike. Without providing any notice, Liwanag
Corporation declared everyone who participated in the strike as having lost their employment. (4%)
(A) Was Liwanag Corporations action valid?
(B) If, before the DOLE Secretary assumed jurisdiction, the striking union members communicated in writing their desire to
return to work, which offer Liwanag Corporation refused to accept, what remedy, if any, does the union have?
XXVII.
The jurisdiction of the National Labor Relations Commission does not include: (1%)
(A) exclusive appellate jurisdiction over all cases decided by the Labor Arbiter
(B) exclusive appellate jurisdiction over all cases decided by Regional Directors or hearing officers involving the recovery
of wages and other monetary claims and benefits arising from employer-employee relations where the aggregate money
claim of each does not exceed five thousand pesos (Php5,000)
(C) original jurisdiction to act as a compulsory arbitration body over labor disputes certified to it by the Regional Directors
(D) power to issue a labor injunction
CIVIL LAW
October 12, 2014
8:00 A.M.- 12:00 N.N.

INSTRUCTIONS
1. This Questionnaire contains FOURTEEN (14) pages including these Instructions pages. Check the number of pages and the page
There are THIRTY (30) Essay and Multiple Choice Questions (MCQs) to be answered within four (4) hours.
The essay portion contains questions that are equivalent to not less than 80% of the whole examination, while the MCQ portion
contains questions equivalent to not more than 20%.
points for each number, question, or subquestion. In your answers, use the numbering system in the questionnaire.
law to the given facts, and to reason logically in a lawyerlike manner to a sound conclusion from the given premises.
4. MCQs are to be answered by writing in your Notebook the capital letter A, B, C, or D corresponding to your chosen answer. There
is only one correct answer to every MCQ; choose the BEST answer from among the offered choices. Note that some MCQs may
need careful analysis both of the questions and the choices offered.
Chairman
I.
Ariz and Paz were officemates at Perlas ng Silangan Bank (PSB). They fell in love with each other and had a civil and church
wedding. Meanwhile, Paz rapidly climbed the corporate ladder of PSB and eventually became its Vice President, while Ariz remained
one of its bank supervisors, although he was short of 12 units to finish his Masters of Business Administration (MBA) degree.
Ariz became envious of the success of his wife. He started to drink alcohol until he became a drunkard. He preferred to join his
"barkadas"; became a wifebeater; would hurt his children without any reason; and failed to contribute to the needs of the family.
Despite rehabilitation and consultation with a psychiatrist, his ways did not change.
After 19 years of marriage, Paz, a devout Catholic, decided to have their marriage annulled by the church. Through the testimony of
Paz and a psychiatrist, it was found that Ariz was a spoiled brat in his youth and was sometimes involved in brawls. In his teens, he
was once referred to a psychiatrist for t reatment due to his violent tendencies. In due time, the National Appellate Matrimonial
Tribunal (NAMT) annulled the union of Ariz and Paz due to the failure of Ariz to perform and fulfill his duties as a husband and as a
father to their children. The NAMT concluded that it is for the best interest of Paz, Ariz and their children to have the marriage
annulled.
In view of the NAMT decision, Paz decided to file a Petition for Declaration of Nullity of Marriage of their civil wedding before the
Regional Trial Court (RTC) of Makati City using the NAMT decision and the same evidence adduced in the church annulment
proceedings as basis.
If you are the judge, will you grant the petition? Explain. (5%)
II.
Crispin died testate and was survived by Alex and Josine, his children from his first wife; Rene and Ruby, his children from his
second wife; and Allan, Bea, and Cheska, his children from his third wife.
One important provision in his will reads as follows:
"Ang lupa at bahay sa Lungsod ng Maynila ay ililipat at ilalagay sa pangalan nila Alex at Rene hindi bilang pamana ko sa kanila kundi
upang pamahalaan at pangalagaan lamang nila at nang ang sinuman sa aking mga anak, sampu ng aking mga apo at kaapuapuhan
ko sa habang panahon, ay may tutuluyan kung magnanais na mag-aral sa Maynila o sa kalapit na mga lungsod."
Is the provision valid? (4%)
III.
The Roman Catholic Church accepted a donation of a real property located in Lipa City. A deed of donation was executed, signed by
the donor, Don Mariano, and the donee, the Church, as represented by Fr. Damian. Before the deed could be notarized, Don
Mariano died. Is the donation valid? (4%)
IV.
Nante, a registered owner of a parcel of land in Quezon City, sold the property to Monica under a deed of sale which reads as
follows:
"That for and in consideration of the sum of P500,000.00, value to be paid and delivered to me, and receipt of which shall be
acknowledged by me to the full satisfaction of Monica, referred to as Vendee, I hereby sell, transfer, cede, convey, and assign, as by
these presents, I do have sold, transferred, ceded, conveyed and assigned a parcel of land covered by TCT No. 2468 in favor of the
Vendee."
After delivery of the initial payment of P100,000.00, Monica immediately took possession of the property. Five (5) months after,
Monica failed to pay the remaining balance of the purchase price. Nante filed an action for the recovery of possession of the property.
Nante alleged that the agreement was one to sell,which was not consummated as the full contract price was not paid. Is the
contention of Nante tenable? Why? (4%)
V.
What is the effect of preterition ? (1%)
(A) It annuls the devise and legacy
(B) It annuls the institution of heir
(C) It reduces the devise and legacy
(D) It partially annuls the institution of heir
VI.
Miko and Dinah started to live together as husband and wife without the benefit of marriage in 1984. Ten (10) years after, they
separated. In 1996, they decided to live together again, and in 1998, they got married.
On February 17, 2001, Dinah filed a complaint for declaration of nullity of her marriage with Miko on the ground of psychological
incapacity under Article 36 of the Family Code. The court rendered the following decision:
"1. Declaring the marriage null and void;
2. Dissolving the regime of absolute community of property; and
3. Declaring that a decree of absolute nullity of marriage shall only be issued after liquidation, partition and distribution of the parties
properties under Article 147 of the Family Code."
Dinah filed a motion for partial reconsideration questioning the portion of the decision on the issuance of a decree of nullity of
marriage only after the liquidation, partition and distribution of properties under Article 147 of the Code.
If you are the judge, how will you decide petitioners motion for partial reconsideration? Why? (4%)
VII.
Due to the continuous heavy rainfall, the major streets in Manila became flooded. This compelled Cris to check-in at Square One
Hotel. As soon as Crisgot off from his Toyota Altis, the Hotels parking attendant got the key of his car and gave him a valet parking
customers claim stub. The attendant parked his car at the basement of the hotel. Early in the morning, Cris was informed by the
hotel manager that his car was carnapped. (4%)
(A) What contract, if any, was perfected between Cris and the Hotel when Cris surrendered the key of his car to the Hotels
parking attendant?
(B) What is the liability, if any, of the Hotel for the loss of Cris car?
VIII.
Tess leased her 1,500 sq. m. lot in Antipolo City to Ruth for a period of three (3) years, from January 2010 to February 2013.
On March 19, 2011, Tess sent a letter to Ruth, part of which reads as follows:
"I am offering you to buy the property you are presently leasing at P5,000.00 per sq. m. or for a total of P7,500,000.00. You can pay
the contract price by installment for two (2) years without interest.
I will give you a period of one (1) year from receipt of this letter to decide whether you will buy the property."
After the expiration of the lease contract, Tess sold the property to her niece for a total consideration of P4 million.
Ruth filed a complaint for the annulment of the sale, reconveyance and damages against Tess and her niece. Ruth alleged that the
sale of the leased property violated her right to buy under the principle of right of first refusal.
Is the allegation of Ruth tenable? (4%)
IX.
Spouses Macario and Bonifacia Dakila entered into a contract to sell with Honorio Cruz over a parcel of industrial land in Valenzuela,
Bulacan for a price of Three Million Five Hundred Thousand Pesos (P3,500,000.00). The spouses would give a downpayment of Five
Hundred Thousand Pesos (P500,000.00) upon the signing of the contract, while the balance would be paid for the next three (3)
consecutive months in the amount of One Million Pesos (P1,000,000.00) per month. The spouses paid the first two (2) installments
but not the last installment. After one (1) year, the spouses offered to pay the unpaid balance which Honorio refused to accept.
The spouses filed a complaint for specific performance against Honorio invoking the application of the Maceda Law. If you are the
judge, how will you decide the case? (4%)
X.
Dorotea leased portions of her 2,000 sq. m. lot to Monet, Kathy, Celia, and Ruth for five (5) years. Two (2) years before the expiration
of the lease contract, Dorotea sold the property to PM Realty and Development Corporation. The following month, Dorotea and PM
Realty stopped accepting rental payments from all the lessees because they wanted to terminate the lease contracts.
Due to the refusal of Dorotea to accept rental payments, the lessees , Ruth, et al., filed a complaint for consignation of the rentals
before the Regional Trial Court (RTC) of Manila without notifying Dorotea.
Is the consignation valid? (4%)
XI.
An easement that can be acquired by prescription: (1%)
(A) Right of way
(B) Watering of an animal
(C) Lateral and subjacent support
(D) Light and view
XII.
J.C. Construction (J.C.) bought steel bars from Matibay Steel Industries (MSI) which is owned by Buddy Batungbacal. J.C. failed to
pay the purchased materials worth P500,000.00 on due date. J.C. persuaded its client Amoroso with whom it had receivables to pay
its obligation to MSI. Amoroso agreed and paid MSI the amount of P50,000.00. After two (2) other payments, Amoroso stopped
making further payments.

Buddy filed a complaint for collection of the balance of the obligation and damages against J.C. J.C. denied any liability claiming that
its obligation was extinguished by reason of novation which took place when MSI accepted partial payments from Amoroso on its
behalf.
Was the obligation of J.C. Construction to MSI extinguished by novation? Why? (4%)
XIII.
Esteban and Martha had four (4) children: Rolando, Jun, Mark, and Hector. Rolando had a daughter, Edith, while Mark had a son,
Philip. After the death of Esteban and Martha, their three (3) parcels of land were adjudicated to Jun. After the death of Jun, the
properties passed to his surviving spouse Anita, and son Cesar. When Anita died, her share went to her son Cesar. Ten (10) years
after, Cesar died intestate without any issue. Peachy, Anitas sister, adjudicated to herself the properties as the only surviving heir of
Anita and Cesar. Edith and Philip would like to recover the properties claiming that they should have been reserved by Peachy in
their behalf and must now revert back to them.
Is the contention of Edith and Philip valid? (4%)
XIV.
A pedestrian, who was four (4) months pregnant, was hit by a bus driver while crossing the street. Although the pedestrian survived,
the fetus inside her womb was aborted. Can the pedestrian recover damages on account of the death of the fetus? (1%)
(A) Yes, because of Article 2206 of the Civil Code which allows the surviving heirs to demand damages for mental anguish
by reason of the death of the deceased.
(B) Yes, for as long as the pedestrian can prove that she was not at fault and the bus driver was the one negligent.
(C) No, because a fetus is not a natural person.
(D) No, if the fetus did not comply with the requirements under Article 41 of the Civil Code.
XV.
Mr. Bong owns several properties in Pasig City. He decided to build a condominium named Flores de Manila in one of his lots. To
fund the project, he obtained a loan from the National Bank (NB) secured by a real estate mortgage over the adjoining property
which he also owned.
During construction, he built three (3) pumps on the mortgaged property to supply water to the condominium. After one (1) year, the
project was completed and the condominium was turned over to the buyers. However, Mr. Bong failed to pay his loan obligation to
NB. Thus, NB foreclosed the mortgaged property where the pumps were installed. During the sale on public auction of the
mortgaged property, Mr. Simon won in the bidding. When Mr. Simon attempted to take possession of the property, the condominium
owners, who in the meantime constituted themselves into Flores de Manila Inc. (FMI), claimed that they have earlier filed a case for
the declaration of the existence of an easement before the Regional Trial Court (RTC) of Pasig City and prayed that the easement be
annotated in the title of the property foreclosed by NB. FMI further claimed that when Mr. Bong installed the pumps in his adjoining
property, a voluntary easement was constituted in favor of FMI.
Will the action prosper? (4%)
XVI.
A congregation for religious women, by way of commodatum, is using the real property owned and registered in the name of
Spouses Manuel as a retreat house.
Maria, a helper of the congregation discovered a chest in the backyard. When she opened the chest, it contained several pieces of
jewelry and money. (4%)
(A) Can the chest containing the pieces of jewelry and money be considered as hidden treasure?
(B) Who has the right to claim ownership of it?
XVII.
On March 30, 2000, Mariano died intestate and was survived by his wife, Leonora, and children, Danilo and Carlito. One of the
properties he left was a piece of land in Alabang where he built his residential house.
After his burial, Leonora and Marianos children extrajudicially settled his estate. Thereafter, Leonora and Danilo advised Carlito of
their intention to partition the property. Carlito opposed invoking Article 159 of the Family Code. Carlito alleged that since his minor
child Lucas still resides in the premises, the family home continues until that minor beneficiary becomes of age.
Is the contention of Carlito tenable? (4%)
XVIII.
Spouses Magtanggol managed and operated a gasoline station on a 1,000 sq.m. lot which they leased from Francisco Bigla-awa.
The contract was for a period of three (3) years. When the contract expired, Francisco asked the spouses to peacefully vacate the
premises. The spouses ignored the demand and continued with the operation of the gasoline station.
One month after, Francisco, with the aid of a group of armed men, caused the closure of the gasoline station by constructing fences
around it.
Was the act of Francisco and his men lawful? Why? (4%)
XIX.
Who enjoys the Right of Retention? (1%)
(A) Depositary until full payment of what may be due him in deposit.
(B) Lessee if he advances the expenses for the repair of the leased premises.
(C) Bailee if bailor owes him something.
(D) Builder in bad faith for the recovery of necessary and useful expenses.
XX.
Mabuhay Elementary School organized a field trip for its Grade VI students in Fort Santiago, Manila Zoo, and Star City. To be able to
join, the parents of the students had to sign a piece of paper that reads as follows:
"I allow my child (name of student), Grade Section, to join the schools field trip on February 14, 2014.
I will not file any claim against the school, administrator or teacher in case something happens to my child during the trip."
Joey, a 7-year-old student of Mabuhay Elementary School was bitten by a snake while the group was touring Manila Zoo. The
parents of Joey sued the school for damages. The school, as a defense, presented the waiver signed by Joeys parents.
Was there a valid waiver of right to sue the school? Why? (4%)
XXI.
A delayed accession is: (1%)
(A) formation of an island

(B) avulsion
(C) alluvium
(D) change in the course of the riverbed
XXII.
On March 27, 1980, Cornelio filed an application for land registration involving a parcel of agricultural land that he had bought from
Isaac identified as Lot No. 2716 with an area of one (1) hectare. During the trial, Cornelio claimed that he and his predecessors-ininterest had been in open, continuous, uninterrupted, public and adverse possession and occupation of the land for more than thirty
(30) years. He likewise introduced in evidence a certification dated February 12, 1981 citing a presidential declaration to the effect
that on June 14, 1980, agricultural lands of the public domain, including the subject matter of the application, were declared alienable
and disposable agricultural land. (4%)
(A) If you are the judge, will you grant the application for land registration of Cornelio?
(B) Can Cornelio acquire said agricultural land through acquisitive prescription, whether ordinary or extraordinary?
XXIII.
After undergoing sex reassignment in a foreign country, Jose, who is now using the name of "Josie," married his partner Ador. Is the
marriage valid? (1%)
(A) Yes, the marriage is valid for as long as it is valid in the place where it is celebrated following Article 17 of the Civil
Code.
(B) Yes, the marriage is valid if all the essential and formal elements of marriage under the Family Code are present.
(C) No, the marriage is not valid because one essential element of marriage is absent.
(D) No, the marriage is not valid but is voidable because "Josie" concealed her real identity.
XXIV.
Ted, married to Annie, went to Canada to work. Five (5) years later, Ted became a naturalized Canadian citizen. He returned to the
Philippines to convince Annie to settle in Canada. Unfortunately, Ted discovered that Annie and his friend Louie were having an affair.
Deeply hurt, Ted returned to Canada and filed a petition for divorce which was granted. In December 2013, Ted decided to marry his
childhood friend Corazon in the Philippines. In preparation for the wedding, Ted went to the Local Civil Registry of Quezon City where
his marriage contract with Annie was registered. He asked the Civil Register to annotate the decree of divorce on his marriage
contract with Annie. However, he was advised by the National Statistics Office (NSO) to file a petition for judicial recognition of the
decree of divorce in the Philippines.
Is it necessary for Ted to file a petition for judicial recognition of the decree of divorce he obtained in Canada before he can contract a
second marriage in the Philippines? (4%)
XXV.
Mario executed his last will and testament where he acknowledges the child being conceived by his live-in partner Josie as his own
child; and that his house and lot in Baguio City be given to his unborn conceived child. Are the acknowledgment and the donation
mortis causa valid? Why? (4%)
XXVI.
Isaac leased the apartment of Dorotea for two (2) years. Six (6) months after, Isaac subleased a portion of the apartment due to
financial difficulty. Is the sublease contract valid? (1%)

(A) Yes, it is valid for as long as all the elements of a valid sublease contract are present.
(B) Yes, it is valid if there is no express prohibition for subleasing in the lease contract.
(C) No, it is void if there is no written consent on the part of the lessor.
(D) No, it is void because of breach of the lease contract.
XXVII.
Fe, Esperanza, and Caridad inherited from their parents a 500 sq. m. lot which they leased to Maria for three (3) years. One year
after, Fe, claiming to have the authority to represent her siblings Esperanza and Caridad, offered to sell the leased property to Maria
which the latter accepted. The sale was not reduced into writing, but Maria started to make partial payments to Fe, which the latter
received and acknowledged. After giving the full payment, Maria demanded for the execution of a deed of absolute sale which
Esperanza and Caridad refused to do. Worst, Maria learned that the siblings sold the same property to Manuel. This compelled Maria
to file a complaint for the annulment of the sale with specific performance and damages.
If you are the judge, how will you decide the case? (4%)
XXVIII.
Spouses Esteban and Maria decided to raise their two (2) nieces, Faith and Hope, both minors, as their own children after the
parents of the minors died in a vehicular accident.
Ten (10) years after, Esteban died. Maria later on married her boss Daniel, a British national who had been living in the Philippines
for two (2) years.
With the permission of Daniel, Maria filed a petition for the adoption of Faith and Hope. She did not include Daniel as her copetitioner because for Maria, it was her former husband Esteban who raised the kids.
If you are the judge, how will you resolve the petition? (4%)
XXIX.
Timothy executed a Memorandum of Agreement (MOA) with Kristopher setting up a business venture covering three (3) fastfood
stores known as "Hungry Toppings" that will be established at Mall Uno, Mall Dos, and Mall Tres.
The pertinent provisions of the MOA provides:
1. Timothy shall be considered a partner with thirty percent (30%) share in all of the stores to be set up by Kristopher;
2. The proceeds of the business, after deducting expenses, shall be used to pay the principal amount of P500,000.00 and
the interest therein which is to be computed based on the bank rate, representing the bank loan secured by Timothy;
3. The net profits, if any, after deducting the expenses and payments of the principal and interest shall be divided as
follows: seventy percent (70%) for Kristopher and thirty percent (30%) for Timothy;
4. Kristopher shall have a free hand in running the business without any interference from Timothy, his agents,
representatives, or assigns , and should such interference happen, Kristopher has the right to buy back the share of
Timothy less the amounts already paid on the principal and to dissolve the MOA; and
5. Kristopher shall submit his monthly sales report in connection with the business to Timothy.
What is the contractual relationship between Timothy and Kristopher? (4%)
XXX.
Joe Miguel, a well-known treasure hunter in Mindanao, executed a Special Power of Attorney (SPA) appointing his nephew, John
Paul, as his attorney-infact. John Paul was given the power to deal with treasure-hunting activities on Joe Miguels land and to file
charges against those who may enter it without the latters authority. Joe Miguel agreed to give John Paul forty percent (40%) of the
treasure that may be found on the land.
Thereafter, John Paul filed a case for damages and injunction against Lilo for illegally entering Joe Miguels land. Subsequently, he
hired the legal services of Atty. Audrey agreeing to give the latter thirty percent (30%) of Joe Miguels share in whatever treasure that
may be found in the land.
Dissatified however with the strategies implemented by John Paul, Joe Miguel unilaterally revoked the SPA granted to John Paul.
Is the revocation proper? (4%)
---oo0ooo--2014 BAR EXAMINATIONS
TAXATION LAW
October 12, 2014
2:00 P.M.- 6:00 P.M.

INSTRUCTIONS
1. This Questionnaire contains THIRTEEN (13) pages including these Instructions pages. Check the number of pages and the page
There are TWENTY-NINE (29) Essay and Multiple Choice Questions (MCQs) to be answered within four (4) hours.
A mere "Yes" or "No" answer without any corresponding explanation or discussion will not be given any credit.Thus, always briefly
but fully explain your answers although the question does not expressly ask for an explanation. At the same time, remember that a
complete explanation does not require that you volunteer information or discuss legal doctrines that are not necessary or pertinent to
the solution to the problem. You do not need to re-write or repeat the question in your Notebook.
4. MCQs are to be answered by writing in your Notebook the capital letter A, B, C, D, or E corresponding to your chosen
answer. There is only one correct answer to every MCQ; choose the BEST answer from among the offered choices. Note that some
MCQs may need careful analysis both of the questions and the choices offered.
Chairman
I.
On March 27, 2012, the Bureau of Internal Revenue (BIR) issued a notice of assessment against Blue Water Industries Inc. (BWI), a
domestic corporation, informing the latter of its alleged deficiency corporate income tax for the year 2009. On April 20, 2012, BWI
filed a letter protest before the BIR contesting said assessment and demanding that the same be cancelled or set aside.
However, on May 19, 2013, that is, after more than a year from the filing of the letter protest, the BIR informed BWI that the latters
letter protest was denied on the ground that the assessment had already become final, executory and demandable. The BIR
reasoned that its failure to decide the case within 180 days from filing of the letter protest should have prompted BWI to seek
recourse before the Court of Tax Appeals (CTA) by filing a petition for review within thirty (30) days after the expiration of the 180-day
period as mandated by the provisions of the last paragraph of Section 228 of the National Internal Revenue Code (NIRC).
Accordingly, BWIs failure to file a petition for review before the CTA rendered the assessment final, executory and demandable. Is
the contention of the BIR correct? Explain. (5%)
II.
Mr. De Sarapen is a candidate in the upcoming Senatorial elections. Mr. De Almacen, believing in the sincerity and ability of Mr. De
Sarapen to introduce much needed reforms in the country, contributed P500,000.00 in cash to the campaign chest of Mr. De
Sarapen. In addition, Mr. De Almacen purchased tarpaulins, t-shirts, umbrellas, caps and other campaign materials that he also
donated to Mr. De Sarapen for use in his campaign. Is the contribution of cash and campaign materials subject to donors tax? (4%)
III.
Dr. Taimtim is an alumnus of the College of Medicine of Universal University (UU), a privately-owned center for learning which grants
yearly dividends to its stockholders.
UU has a famous chapel located within the campus where the old folks used to say that anyone who wanted to pass the medical
board examinations should offer a dozen roses on all the Sundays of October. This was what Dr. Taimtim did when he was still
reviewing for the board examinations. In his case, the folk saying proved to be true because he is now a successful cardiologist.
Wanting to give back to the chapel and help defray the costs of its maintenance, Dr. Taimtim donated P50,000.00 to the caretakers of
the chapel which was evidenced by an acknowledgment receipt.
In computing his net taxable income, can Dr.Taimtim use his donation to the chapel as an allowable deduction from his gross income
under the National Internal Revenue Code (NIRC)? (4%)
IV.
Gangwam Corporation (GC) filed its quarterly tax returns for the calendar year 2012 as follows:
First quarter - April 25, 2012
Second quarter - July 23, 2012

Third quarter - October 25, 2012
Fourth quarter - January 27, 2013
On December 22, 2013, GC filed with the Bureau of Internal Revenue (BIR) an administrative claim for refund of its unutilized input
Value-Added Tax (VAT) for the calendar year 2012. After several months of inaction by the BIR on its claim for refund, GC decided to
elevate its claim directly to the Court of Tax Appeals (CTA) on April 22, 2014.
In due time, the CTA denied the tax refund relative to the input VAT of GC for the first quarter of 2012, reasoning that the claim was
filed beyond the two-year period prescribed under Section 112(A) of the National Internal Revenue Code (NIRC).
(A) Is the CTA correct? (3%)
(B) Assuming that GC filed its claim before the CTA on February 22, 2014, would your answer be the same? (3%)
V.
The City of Liwliwa assessed local business taxes against Talin Company. Claiming that there is double taxation, Talin Company filed
a Complaint for Refund or Recovery of Illegally and/or Erroneously-collected Local Business Tax; Prohibition with Prayer to Issue
Temporary Restraining Order and Writ of Preliminary Injunction with the Regional Trial Court (RTC). The RTC denied the application
for a Writ of Preliminary Injunction. Since its motion for reconsideration was denied, Talin Company filed a special civil action for
certiorari with the Court of Appeals (CA). The government lawyer representing the City of Liwliwa prayed for the dismissal of the
petition on the ground that the same should have been filed with the Court of Tax Appeals (CTA). Talin Company, through its lawyer,
Atty. Frank, countered that the CTA cannot entertain a petition for certiorari since it is not one of its powers and authorities under
existing laws and rules.
Decide. (5%)
VI.
Choose the correct answer. Smuggling - (1%)
(A) does not extend to the entry of imported or exported articles by means of any false or fraudulent invoice, statement or
practices; the entry of goods at less than the true weight or measure; or the filing of any false or fraudulent entry for the
payment of drawback or refund of duties.
(B) is limited to the import of contraband or highly dutiable cargo beyond the reach of customs authorities.
(C) is committed by any person who shall fraudulently import or bring into the Philippines, or assist in so doing, any article,
contrary to law, or shall receive, conceal, buy, sell or any manner facilitate the transportation, concealment or sale of such
article after importation, knowing the same to have been imported contrary to law.
VII.
In accordance with the Local Government Code (LGC), the Sangguniang Panglungsod (SP) of Baguio City enacted Tax Ordinance
No. 19, Series of 2014, imposing a P50.00 tax on all the tourists and travellers going to Baguio City. In imposing the local tax, the SP
reasoned that the tax collected will be used to maintain the cleanliness of Baguio City and for the beautification of its tourist
attractions. (D) is punishable by administrative penalty only.
Claiming the tax to be unjust, Baguio Travellers Association (BTA), an association of travel agencies in Baguio City, filed a petition for
declaratory relief before the Regional Trial Court (RTC) because BTA was apprehensive that tourists might cancel their bookings with
BTAs member agencies. BTA also prayed for the issuance of a Temporary Restraining Order (TRO) to enjoin Baguio City from
enforcing the local tax on their customers and on all tourists going to Baguio City.
The RTC issued a TRO enjoining Baguio City from imposing the local tax. Aggrieved, Baguio City filed a petition for certiorari before
the Supreme Court (SC) seeking to set aside the TRO issued by the RTC on the ground that collection of taxes cannot be enjoined.
Will the petition prosper? (5%)

VIII.
Masarap Kumain, Inc. (MKI) is a Value-Added Tax (VAT)-registered company which has been engaged in the catering business for
the past 10 years. It has invested a substantial portion of its capital on flat wares, table linens, plates, chairs, catering equipment, and
delivery vans. MKI sold its first delivery van, already 10 years old and idle, to Magpapala Gravel and Sand Corp. (MGSC), a
corporation engaged in the business of buying and selling gravel and sand. The selling price of the delivery van was way below its
acquisition cost. Is the sale of the delivery van by MKI to MGSC subject to VAT? (4%)
IX.
Mr. Gipit borrowed from Mr. Maunawain P100,000.00, payable in five (5) equal monthly installments. Before the first installment
became due, Mr. Gipit rendered general cleaning services in the entire office building of Mr. Maunawain, and as compensation
therefor, Mr. Maunawain cancelled the indebtedness of Mr. Gipit up to the amount of P75,000.00. Mr. Gipit claims that the
cancellation of his indebtedness cannot be considered as gain on his part which must be subject to income tax, because according
to him, he did not actually receive payment from Mr. Maunawain for the general cleaning services. Is Mr. Gipit correct? Explain. (4%)
X.
Which of the following is an exclusion from gross income? (1%)
(A) Salaries and wages
(B) Cash dividends
(C) Liquidating dividends after dissolution of a corporation
(D) De minimis benefits
(E) Embezzled money
XI.
Triple Star, a domestic corporation, entered into a Management Service Contract with Single Star, a non-resident foreign corporation
with no property in the Philippines. Under the contract, Single Star shall provide managerial services for Triple Stars Hongkong
branch. All said services shall be performed in Hongkong.
Is the compensation for the services of Single Star taxable as income from sources within the Philippines? Explain. (4%)
XII.
Which of the following should not be claimed as deductions from gross income? (1%)
(A) discounts given to senior citizens on certain goods and services.
(B) advertising expense to maintain some form of goodwill for the taxpayers business.
(C) salaries and bonuses paid to employees.
(D) interest payment on loans for the purchase of machinery and equipment used in business.
XIII.
Hopeful Corporation obtained a loan from Generous Bank and executed a mortgage on its real property to secure the loan. When
Hopeful Corporation failed to pay the loan, Generous Bank extrajudicially foreclosed the mortgage on the property and acquired the
same as the highest bidder. A month after the foreclosure, Hopeful Corporation exercised its right of redemption and was able to
redeem the property. Is Generous Bank liable to pay capital gains tax as a result of the foreclosure sale? Explain. (4%)
XIV.
Mr. X, a Filipino residing in Alabama, U.S.A., died on January 2, 2013 after undergoing a major heart surgery. He left behind to his
wife and two (2) kids several properties, to wit: (4%)
(1) Family home in Makati City;
(2) Condominium unit in Las Pias City;
(3) Proceeds of health insurance from Take Care, a health maintenance organization in the Philippines; and
(4) Land in Alabama, U.S.A.
The following expenses were paid:
(1) Funeral expenses;
(2) Medical expenses; and
(3) Judicial expenses in the testate proceedings.
(A) What are the items that must be considered as part of the gross estate income of Mr. X?
(B) What are the items that may be considered as deductions from the gross estate?
XV.
When is a pre-assessment notice required under the following cases? (1%)
(A) When the finding for any deficiency tax is the result of mathematical error in the computation of the tax as appearing on
the face of the return.
(B) When a discrepancy has been determined between the tax withheld and the amount actually remitted by the
withholding agent.
(C) When the excise tax due on excisable articles has been paid.
(D) When an article locally purchased or imported by an exempt person, such as, but not limited to vehicles, capital
equipment, machineries and spare parts, has been sold, traded or transferred to non-exempt persons.
XVI.
Mr. Tiaga has been a law-abiding citizen diligently paying his income taxes. On May 5, 2014, he was surprised to receive an
assessment notice from the Bureau of Internal Revenue (BIR) informing him of a deficiency tax assessment as a result of a
mathematical error in the computation of his income tax, as appearing on the face of his income tax return for the year 2011, which
he filed on April 15, 2012. Mr. Tiaga believes that there was no such error in the computation of his income tax for the year 2011.
Based on the assessment received by Mr. Tiaga, may he already file a protest thereon? (4%)
XVII.
In a civil case for Annulment of Contract of Sale, plaintiff Ma. Reklamo presented in evidence the Contract of Sale which she sought
to be annulled. No documentary stamp tax on the Contract of Sale was paid because according to plaintiff Ma. Reklamo, there was
no need to pay the same since the sale was not registered with the Register of Deeds. Plaintiff Ma. Reklamo is now offering the
Contract of Sale as her evidence. Is the Contract of Sale admissible? (4%)

XVIII.
Madam X owns real property in Caloocan City. On July 1, 2014, she received a notice of assessment from the City Assessor,
informing her of a deficiency tax on her property. She wants to contest the assessment. (4%)
(A) What are the administrative remedies available to Madam X in order to contest the assessment and their respective
prescriptive periods?
(B) May Madam X refuse to pay the deficiency tax assessment during the pendency of her appeal?
XIX.
The Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. 65-2012 imposing Value-Added Tax (VAT)
on association dues and membership fees collected by condominium corporations from its member condominium-unit owners. The
RMCs validity is challenged before the Supreme Court (SC) by the condominium corporations.
The Solicitor General, counsel for BIR, claims that association dues, membership fees, and other assessment/charges collected by a
condominium corporation are subject to VAT since they constitute income payments or compensation for the beneficial services it
provides to its members and tenants.
On the other hand, the lawyer of the condominium corporations argues that such dues and fees are merely held in trust by the
condominium corporations exclusively for their members and used solely for administrative expenses in implementing the
condominium corporations purposes. Accordingly, the condominium corporations do not actually render services for a fee subject to
VAT.
Whose argument is correct? Decide. (5%)
XX.
During his lifetime, Mr. Sakitin obtained a loan amounting to P10 million from Bangko Uno for the purchase of a parcel of land located
in Makati City, using such property as collateral for the loan. The loan was evidenced by a duly notarized promissory note.
Subsequently, Mr. Sakitin died. At the time of his death, the unpaid balance of the loan amounted to P2 million. The heirs of Mr.
Sakitin deducted the amount of P2 million from the gross estate, as part of the "Claims against the Estate." Such deduction was
disallowed by the Bureau of Internal Revenue (BIR) Examiner, claiming that the mortgaged property was not included in the
computation of the gross estate. Do you agree with the BIR? Explain. (4%)
XXI.
On August 31, 2014, Haelton Corporation (HC), thru its authorized representative Ms. Pares, sold a 16-storey commercial building
known as Haeltown Building to Mr. Belly for P100 million. Mr. Belly, in turn, sold the same property on the same day to Bell Gates,
Inc. (BGI) for P200 million. These two (2) transactions were evidenced by two (2) separate Deeds of Absolute Sale notarized on the
same day by the same notary public.
Investigations by the Bureau of Internal Revenue (BIR) showed that:
(1) the Deed of Absolute Sale between Mr. Belly and BGI was notarized ahead of the sale between HC and Mr. Belly; (2) as early as
May 17, 2014, HC received P40 million from BGI, and not from Mr. Belly; (3) the said payment of P40 million was recorded by BGI in
its books as of June 30, 2014 as investment in Haeltown Building; and (4) the substantial portion of P40 million was withdrawn by
Ms. Pares through the declaration of cash dividends to all its stockholders.
Based on the foregoing, the BIR sent Haeltown Corporation a Notice of Assessment for deficiency income tax arising from an alleged
simulated sale of the aforesaid commercial building to escape the higher corporate income tax rate of thirty percent (30%). What is
the liability of Haeltown Corporation, if any? (4%)
XXII.
Choose the correct answer. Double Taxation - (1%)

(A) is one of direct duplicate taxations wherein two (2) taxes must be imposed on the same subject matter, by the same
taxing authority, within the same jurisdiction, during the same period, with the same kind or character of tax, even if the
purposes of imposing the same are different.
(B) is forbidden by law; and therefore, it is a valid defense against the validity of a tax measure.
(C) means taxing the same property twice when it should be taxed only once; it is tantamount to taxing the same person
twice by the same jurisdiction for the same thing.
(D) exists when a corporation is assessed with local business tax as a manufacturer, and at the same time, value-added
tax as a person selling goods in the course of trade or business.
XXIII.
Choose the correct answer. Tax Avoidance (1%)
(A) is a scheme used outside of those lawful means and, when availed of, it usually subjects the taxpayer to further or
additional civil or criminal liabilities.
(B) is a tax saving device within the means sanctioned by law.
(C) is employed by a corporation, the organization of which is prompted more on the mitigation of tax liabilities than for
legitimate business purpose.
(D) is any form of tax deduction scheme, regardless if the same is legal or not.
XXIV.
A, B, and C, all lawyers, formed a partnership called ABC Law Firm so that they can practice their profession as lawyers. For the year
2012, ABC Law Firm received earnings and paid expenses, among which are as follows: (6%)
Earnings:
(1) Professional/legal fees from various clients
(2) Cash prize received from a religious society in recognition of the exemplary service of ABC Law Firm
(3) Gains derived from sale of excess computers and laptops
Payments:
(1) Salaries of office staff
(2) Rentals for office space
(3) Representation expenses incurred in meetings with clients
(A) What are the items in the above mentioned earnings which should be included in the computation of ABC Law Firms
gross income? Explain.
(B) What are the items in the above-mentioned payments which may be considered as deductions from the gross income
of ABC Law Firm? Explain.
(C) If ABC Law Firm earns net income in 2012, what, if any, is the tax consequence on the part of ABC Law Firm insofar as
the payment of income tax is concerned? What, if any, is the tax consequence on the part of A, B, and C as individual
partners, insofar as the payment of income tax is concerned?
XXV.
Which of the following transactions is subject to Value-Added Tax (VAT)? (1%)
(A) Sale of shares of stock-listed and traded through the local stock exchange
(B) Importation of personal and household effects belonging to residents of the Philippines returning from abroad subject to
custom duties under the Tariff and Customs Code
(C) Services rendered by individuals pursuant to an employeremployee relationship
(D) Gross receipts from lending activities by credit or multi-purpose cooperatives duly registered with the Cooperative
Development Authority
XXVI.
Freezy Corporation, a domestic corporation engaged in the manufacture and sale of ice cream, made payments to an officer of
Frosty Corporation, a competitor in the ice cream business, in exchange for said officers revelation of Frosty Corporations trade
secrets.
May Freezy Corporation claim the payment to the officer as deduction from its gross income? Explain. (4%)
XXVII.
In January 2013, your friend got his first job as an o ffice clerk. He is single and lives with his family who depends upon him for
financial support. His parents have long retired from their work, and his two (2) siblings are still minors and studying in grade school.
In February 2014, he consulted you as he wanted to comply with all the rules pertaining to the preparation and filing of his income tax
return. He now asks you the following:
(A) Is he entitled to personal exemptions? If so, how much? (1%)
(B) Is he entitled to additional exemptions? If so, how much? (1%)
(C) What is the effect of the taxes withheld from his salaries on his taxable income? (2%)
XXVIII.
Choose the correct answer. Tax laws - (1%)
(A) may be enacted for the promotion of private enterprise or business for as long as it gives incidental advantage to the
public or the State
(B) are inherently legislative; therefore, may not be delegated
(C) are territorial in nature; hence, they do not recognize the generally-accepted tenets of international law
(D) adhere to uniformity and equality when all taxable articles or kinds of property of the same class are taxable at the
same rate
XXIX.
Doa Evelina, a rich widow engaged in the business of currency exchange, was assessed a considerable amount of local business
taxes by the City Government of Bagnet by virtue of Tax Ordinance No. 24. Despite her objections thereto, Doa Evelina paid the
taxes. Nevertheless, unsatisfied with said Tax Ordinance, Doa Evelina, through her counsel Atty. ELP, filed a written claim for
recovery of said local business taxes and contested the assessment. Her claim was denied, and so Atty. ELP elevated her case to
the Regional Trial Court (RTC).
The RTC declared Tax Ordinance No. 24 null and void and without legal effect for having been enacted in violation of the public ation
requirement of tax ordinances and revenue measures under the Local Government Code (LGC) and on the ground of double
taxation. On appeal, the Court of Tax Appeals (CTA) affirmed the decision of the RTC. No motion for reconsideration was filed and
the decision became final and executory. (4%)
(A) If you are Atty. ELP, what advice will you give Doa Evelina so that she can recover the subject local business taxes?
(B) If Doa Evelina eventually recovers the local business taxes, must the same be considered as income taxable by the
national government?
COMMERCIAL LAW
October 19, 2014
8:00 A.M.- 12:00 N.N.

INSTRUCTIONS
1. This Questionnaire contains FOURTEEN (14) pages including these Instructions pages. Check the number of pages and the page
There are TWENTY-NINE (29) Essay and Multiple Choice Questions (MCQs) to be answered within four (4) hours.
posed. Write your answers only on the front,not the back, page of every sheet in your Notebook. Note well the allocated percentage
is only one correct answer to every MCQ; choose the BEST answer from among the offered choices.
Chairman
I.
Carlo and Bianca met in the La Boracay festivities. Immediately, they fell in love with each other and got married soon after. They
have been cohabiting blissfully as husband and wife, but they did not have any offspring. As the years passed by, Carlo decided to
take out an insurance on Biancaslife for P1,000,000.00 with him (Carlo) as sole beneficiary, given that he did not have a steady
source of income and he always depended on Bianca both emotionally and financially. During the term of the insurance, Bianca died
of what appeared to bea mysterious cause so that Carlo immediately requested for an autopsy tobe conducted. It was established
that Bianca died of a natural cause. More than that, it was also established that Bianca was a transgender all along a fact unknown
to Carlo. Can Carlo claim the insurance benefit? (5%)
II.
Bong bought 300 bags of rice from Ben for P300,000.00. As payment, Bong indorsed to Bena Bank of the Philippine Islands (BPI)
check issued by Baby in the amount of P300,000.00. Upon presentment for payment, the BPI check was dishonored because Babys
account from which it was drawn has been closed. To replace the dishonored check, Bong indorsed a crossed Development Bank of
the Philippines (DBP) check issued also by Baby for P300,000.00. Again, the check was dishonored because of insufficient funds.
Ben sued Bong and Baby on the dishonored BPI check. Bong interposed the defense that the BPI check was discharged by novation
when Ben accepted the crossed DBP check as replacement for the BPI check. Bong cited Section 119 of the Negotiable Instruments
Law which provides that a negotiable instrument is discharged "by any other act which will discharge a simple contractfor the
payment of money." Is Bong correct? (4%)
III.
Under the Financial Rehabilitation and Insolvency Act (FRIA), the filing of a petition for voluntary rehabilitation must be approved by:
(1%)
(A) a majority vote of the Board of Directors and authorized by the vote of the stockholders representing at least a majority
of the outstanding capital stock
(B) a majority vote of the Board of Directors and authorized by the vote of the stockholders representing at least two-thirds
(C) two-thirds vote of the Board of Directors and authorized by the vote of the stockholders representing at least a majority
(D) two-thirds vote of the Board of Directors and authorized by the vote of the stockholders representing at least two-thirds
IV.
DC is a unit owner of Medici Condominium located in Pasig City. On September 7, 2011, Medici Condominium Corp. (Medici)
demanded from DC payment for alleged unpaid association dues and assessments amounting toP195,000.00. DC disputed the
claim, saying that he paid all dues as shown by the fact that he was previously elected as Director and President of Medici. Medici,
on the other hand, claimed that DCs obligation was a carry-over of his obligations to the condominium developer, Medici
Construction Corporation. Consequently, DCwas prevented from exercising his right to vote and be voted for during the 2011 election
of Medicis Board of Directors. This prompted DC to file a complaint for damages before the Special Commercial Court of Pasig City.
Medici filed a motion to dismiss on the ground that the court has no jurisdiction over the intra-corporate dispute which the Housing
and Land Use Regulatory Board (HLURB) has exclusive jurisdiction over. Is Medici correct? (4%)
V.
A corporation organized under the Corporation Code commences to have corporate existence and juridical personality and is
deemed incorporated: (1%)
(A) from the date the application for incorporation is filed with the Securities and Exchange Commission (SEC)
(B) from the date the SEC issues a certificate of incorporation under its official seal
(C) thirty (30) days after the date the application for incorporation is filed with the SEC
(D) thirty (30) days after the datethe SEC issues a certificate of incorporation under its official seal
VI.
On May 26, 2014, Jess insured with Jack Insurance (Jack) his 2014 Toyota Corolla sedan under a comprehensive motor vehicle
insurance policy for one year. On July 1, 2014, Jess car was unlawfully taken. Hence, he immediately reported the theft to the Traffic
Management Command (TMC) of the Philippine National Police (PNP), which made Jess accomplish a complaint sheet as part of its
procedure. In the complaint sheet, Jess alleged that a certain Ric Silat(Silat) took possession of the subject vehicle to add
accessories and improvements thereon. However, Silat failed to return the subject vehicle within the agreed 3-day period. As a result,
Jess notified Jack of his claim for reimbursement of the value of the lost vehicle under the insurance policy. Jack refused to pay
claiming that there is no theft as Jess gave Silat lawful possession of the car. Is Jack correct? (4%)
VII.
Jinggy went to Kluwer University(KU) in Germany for his doctorate degree (Ph.D.). He completed his degree with the highest honors
in the shortest time. When he came back, he decided to set-up his own graduate school in his hometown in Zamboanga. After
seeking free legal advice from his high-flying lawyer-friends, he learned that the Philippines follows the territoriality principle in
trademark law, i.e., trademark rights are acquired through valid registration in accordance with the law. Forth with, Jinggy named his
school the Kluwer Graduate School of Business of Mindanao and immediately secured registration with the Bureau of Trademarks.
KU did not like the unauthorized use of its name by its top alumnus no less. KU sought your help. What advice can you give KU?
(4%)
VIII.
As a rule, an insurance contract is consensual and voluntary. The exception is in the case of: (1%)
(A) Inland Marine Insurance
(B) Industrial Life Insurance
(C) Motor Vehicle Liability Insurance
(D) Life Insurance
IX.
On February 21, 2013, Barrack entered into a contract of insurance with Matino Insurance Company (Matino) involving a motor
vehicle. The policy obligates Matino to pay Barrack the amount of Six Hundred Thousand Pesos (P600,000.00) in case of loss or
damage to said vehicle during the period covered, which is from February 26, 2013 to February 26, 2014.
On April 16, 2013, at about 9:00 a.m., Barrack instructed his driver, JJ, to bring the motor vehicle to a near by auto shop for tune-up.
However, JJno longer returned and despite diligent efforts to locate the said vehicle, the efforts proved futile. Resultantly, Barrack
promptly notified Matino of the said loss and demanded payment of the insurance proceeds of P600,000.00.
In a letter dated July 5, 2013. Matino denied the claim, reasoning as stated in the contract that "the company shall not be liable for
any malicious damage caused by the insured, any member of his family or by a person in the insureds service. Is Matino correct in
denying the claim? (4%)
X.
A person is said to have an insurable interest in the subject matter insured where he has a relation or connection with, or concern in
it that he will derive pecuniary benefit or advantage from its preservation. Which among the following subject matters is not
considered insurable? (1%)
(A) A partner in a firm on its future profits
(B) A general creditor on debtors property
(C) A judgment creditor on debtors property
(D) A mortgage creditor on debtors mortgaged property
XI.
PA Assurance (PA) was incorporated in 1980 toengage in the sale of pre-need educational plans. It sold open-ended educational
plans which guaranteed the payment of tuition and other fees to planholders irrespective of the cost at the time of availment. Italso
engaged in the sale of fixed value plans which guaranteed the payment of a pre-determined amount to planholders. In 1982, PAwas
among the countrys top corporations. However, it subsequently suffered financial difficulties.
On September 8, 2005, PA filed a Petition for Corporate Rehabilitation before the Regional Trial Court (RTC) of Makati City. On
October 17, 2005, ten (10) plan holders filed an Opposition and Motion to Exclude Planholders from Stay Order on the ground that
planholders are not creditors as they (planholders) have a trust relationship with PA. Are the planholders correct? (4%)
XII.
To constitute a quorum for the transaction of corporate business, only a majority of the number of Board of Directors is required: (1%)
(A) as fixed by the corporate by-laws
(B) as fixed in the articles of incorporation
(C) actually serving in the board
(D) actually serving in the board but constituting a quorum
XIII.
Pursuant to its By-Laws, Soei Corporations Board of Directors created an Executive Committee to manage the affairs of the
corporation in between board meetings. The Board of Directors appointed the following members of the Executive Committee: the
President, Sarah L; the Vice President, Jane L; and, a third member from the board, Juan Riles. On December 1, 2013, the
Executive Committee, with Sarah L and Jane L present, met and decided on the following matters:
1. Purchase of a delivery van for use in the corporations retail business;
2. Declaration and approval of the 13th month bonus;
3. Purchase of an office condominium unit at the Fort; and
4. Declaration of P10.00 per share cash dividend.
Are the actions of the Executive Committee valid? (4%)

XIV.
On September 25, 2013, Danny Marcial (Danny) procured an insurance on his life with a face value ofP5,000,000.00 from RN
Insurance Company (RN), with his wife Tina Marcial(Tina) as sole beneficiary. On the same day, Danny issued an undated check to
RN for the full amount of the premium. On October 1, 2013, RN issued the policy covering Dannys life insurance. On October 5,
2013, Dannymet a tragic accident and died. Tina claimed the insurance benefit, but RN was quick to deny the claim because at the
time of Dannys death, the check was not yet encashed and therefore the premium remained unpaid.
Is RN correct? Will your answer be the same if the check is dated October 15, 2013? (4%)
XV.
A, B, C, D, and Ewere members of the 2003-2004 Board of Directors of FLP Corporation. At the election for the 2004-2005 Board of
Directors, not one of them was elected. They filed in court a derivative suit on behalf of FLP Corporation against the newly-elected
members of the Board of Directors. They questioned the validity of the election as it was allegedly marred by lack of quorum, and
prayed for the nullification of the said election. The 2004-2005 Board of Directorsmoved to dismiss the complaint because the
derivative suit is not proper. Decide. (4%)
XVI.
In intellectual property cases, fraudulent intent is not an element of the cause of action except in cases involving: (1%)
(A) trademark infringement
(B) copyright infringement
(C) patent infringement
(D) unfair competition
XVII.
On December 1, 2010, Kore A Corporationshipped from South Korea to LT Corporation in Manila some 300,000 sheets of high-grade
special steel. The shipment was insured against all risks by NA Insurance(NA). The carrying vessel arrived at the Portof Manila on
January 10, 2011. When the shipment was discharged, it was noted that 25,000 sheets were damaged and in bad order. The entire
shipment was turned over to the custody of ATI, the arrastre operator, on January 21, 2011 for storage and safekeeping, pending its
withdrawal by the consignees authorized customs broker, RVM.
On January 26 and 29, 2011, the subject shipment was withdrawn by RVM from the custody of ATI. On January 29, 2011, prior to the
withdrawal of the last batch of the shipment, a joint inspection of the cargo was conducted per the Request for Bad Order Survey
(RBO) dated January 28, 2011. The examination report showed that 30,000 sheets of steel were damaged and in bad order.
NA Insurance paid LT Corporationthe amount of P30,000,000.00 for the 30,000 sheets that were damaged, as shown in the
Subrogation Receipt dated January 13, 2013. Thereafter, NA Insurance demanded reparation against ATI for the goods damaged in
its custody, in the amount of P5,000,00.00. ATI refused to pay claiming that the claim was already barred by the statute of limitations.
ATI alleged that the Carriage of Goods by Sea Act (COGSA) applies in this case since the goods were shipped from a foreign port to
the Philippines. NA Insurance claims that the COGSA does not apply, since ATIis not a shipper or carrier. Who is correct? (5%)
XVIII.
Skechers Corporation sued Inter-Pacific for trademark infringement, claiming that Inter-Pacificused Skechers registered "S" logo
mark on Inter-Pacifics shoe products without its consent. Skechers has registered the trademark "SKECHERS" and the trademark
"S" (with an oval design) with the Intellectual Property Office (IPO).
In its complaint, Skechers points out the following similarities: the color scheme of the blue, white and gray utilized by Skechers.
Even the design and "wave-like" pattern of the mid-sole and outer sole of Inter Pacifics shoes are very similar to Skechers shoes, if
not exact patterns thereof. On the side of Inter-Pacifics shoes, near the upper part, appears the stylized "S" placed in the exact
location as that of the stylized "S" the Skechers shoes. On top of the "tongue" of both shoes, appears the stylized "S" in practically
the same location and size.
In its defense, Inter-Pacific claims that under the Holistic Test, the following dissimilarities are present: the mark "S" found in Strong
shoes is not enclosed in an "oval design"; the word "Strong" is conspicuously placed at the backside and insoles; the hang tags
labels attached to the shoes bear the word "Strong" for Inter-Pacific and "Skechers U.S.A." for Skechers; and, Strong shoes are
modestly priced compared to the costs of Skechers shoes.
Under the foregoing circumstances, which is the proper test to be applied Holistic or Dominancy Test? Decide. (4%)
XIX.
Guetze and his wife have three (3) children: Neymar, 25, who is now based in Rio de Janeiro, Brazil; Muelter, 23, who has migrated
to Munich, Germany; and James, 21, who resides in Bogota, Colombia. Neymar and Muelter have since renounced their Philippine
citizenship in favor of their country of residence. Nearing 70 years old, Guetze decided to incorporate his business in Binondo,
Manila. He asked his wife and three (3) children to act as incorporators with one (1) share of stock each, while he owned 999,996
shares of the 1,000,000 shares of the capital stock. (6%)
(A) Assuming all other requirements are met, should the Securities and Exchange Commission (SEC) accept or reject the
Articles of Incorporation? Why?
(B) Being the control freak and micro-manager that he is, Guetze asked you his astute legal adviser if he can serve as
Chairman of the Board of Directors, as President, and as General Manager of the corporation, all at the same time. Please
advise Guetze.
(C) Assuming the corporation has beenproperly registered, may the Articles of Incorporation now beamended to reduce the
number of directors to two (2) Guetze and his wife to reflect the real owners of the shares of stock?
XX.
On May 13, 1996, PAM, Inc. obtained a P15,000,000.00 fire insurance policy from Ilocano Insurance covering its machineries and
equipment effective for one (1) yearor until May 14, 1997. The policy expressly stated that the insured properties were located at
"Sanyo Precision Phils. Building, Phase III, Lots 4 and 6, Block 15, PEZA, Rosario, Cavite." Before its expiration, the policy was
renewed on "as is" basis for another year or until May 13, 1998. The subject properties were later transferred to Pace Factory also in
PEZA. On October 12, 1997, during the effectivity of the renewed policy, a fire broke out at the Pace Factory which totally burned the
insured properties.
The policy forbade the removal of the insured properties unless sanctioned by Ilocano. Condition 9(c) of the policy provides that "the
insurance ceases to attach as regards the property affected unless the insured, before the occurrence of any loss or damage,
obtains the sanction of the company signified by endorsement upon the policy x x x (c) if the property insured is removed to any
building or place other than in that which is herein stated to be insured." PAM claims that it has substantially complied with notifying
Ilocano through its sister company, the RBC, which, in fact, referred PAM to Ilocano for the insurance coverage. Is Ilocano liable
under the policy? (4%)
XXI.
On July 3, 1993, Delia Sotero (Sotero) took out a life insurance policy from Ilocos Bankers Life Insurance Corporation (Ilocos Life)
designating Creencia Aban(Aban), her niece, as her beneficiary. Ilocos Life issued Policy No. 747, with a face value of P100,000.00,
in Soteros favor on August 30, 1993, after the requisite medical examination and payment of the premium.
On April 10, 1996, Sotero died. Aban filed a claim for the insurance proceeds on July 9, 1996. Ilocos Life conducted an investigation
into the claim and came out withthe following findings:
1. Soterodid not personally apply for insurance coverage, as she was illiterate.
2. Soterowas sickly since 1990.
3. Soterodid not have the financial capability to pay the premium on the policy.
4. Soterodid not sign the application for insurance.

5. Aban was the one who filed the insurance application and designated herself as the beneficiary.
For the above reasons and claiming fraud, Ilocos Life denied Abans claim on April 16, 1997, but refunded the premium paid on the
policy. (6%)
(A) May Sotero validly designate her niece as beneficiary?
(B) May the incontestability period set in even in cases of fraud as alleged in this case?
(C) Is Aban entitled to claim the proceeds under the policy?
XXII.
Paul George Pua (Pua) filed a complaint for a sum of money against the spouses Benito and Caroline James (Spouses James). In
the complaint, Pua prayed that the defendants pay Pua the amount of P8,500,000.00, covered by a check. Pua asserts that
defendants owed him a sum of money way back in 1988 for which the Spouses James gave him several checks. These checks,
however, had all been dishonored and Pua has not been paid the amount of the loan plus the agreed interest. In 1996, the Spouses
James approached Pua to get the computation of their liability including the 2% compounded interest. After bargaining to lower the
amount of their liability, the Spouses James gave Puaa postdated check bearing the discounted amount of P8,500,000.00. Like the
1988 checks, the drawee bank likewise dishonored this check. To prove his allegations, Pua submitted the original copies of the 17
checks issued by Caroline in 1988 and the check issued in 1996, Manila trust Check No. 750. The Spouses James, on the other
hand, completely denied the existence of the debt asserting that they had never approached Pua to borrow money in 1988 or in
1996. They assert, instead, that Pua is simply acting at the instance of his sister, Lilian, to file a false charge against them using a
check left to fund a gambling business previously operated by Lilian and Caroline. Decide. (5%)
XXIII.
What vote is needed to consider every decision to be a valid corporate act? (1%)
(A) a majority of the directors present at the meeting
(B) two-thirds of the directors present at the meeting
(C) a majority of the directors present at the meeting at which there is a quorum
(D) two-thirds of the directors present at the meeting at which there is a quorum
XXIV.
A criminal complaint for violation of B.P. 22 was filed by Foton Motors (Foton), an entity engaged in the business of car dealership,
against Pura Felipe (Pura) with the Office of the City Prosecutor of Quezon City. The Office found probable cause to indict Pura and
filed an information before the Metropolitan Trial Court (MeTC) of Quezon City, for her issuance of a postdated check in the amount
of P1,020,000.00 which was subsequently dishonored upon presentment due to "Stop Payment."
Pura issued the check because her son, Freddie, attracted by a huge discount of P220,000.00, purchased a Foton Blizzard 4x2 from
Foton. The term of the transaction was Cash-on-Delivery and no downpayment was required. The car was delivered on May 14,
1997, but Freddie failed to pay upon delivery. Despite non-payment, Freddie took possession of the vehicle.
Pura was eventually acquitted of the charge of violating B.P. 22 but was found civilly liable for the amount of the check plus legal
interest. Pura appealed the decision as regards the civil liability, claiming that there was no privity of contract between Foton and
Pura. No civil liability could be adjudged against her because of her acquittal from the criminal charge. It was Freddie who was civilly
liable to Foton, Pura claimed. Pura added that she could not be an accommodation party either because she only came in after
Freddie failed to pay the purchase price, or six (6) months after the execution of the contract between Foton and Freddie. Her liability
was limited to her act of issuing a worthless check, but by her acquittal in the criminal charge, there was no more basis for her to be
held civilly liable to Foton. Puras act of issuing the subject check did not, by itself, assume the obligation of Freddie to Foton or
automatically make her a party to the contract. Is Pura liable? (5%)
XXV.
In an action for collection of a sum of money, the Regional Trial Court (RTC) of Makati City issued a decision finding D-Securities,
Inc. liable to Rehouse Corporation for P10,000,000.00. Subsequently, the writ of execution was issued but returned unsatisfied
because D-Securities had no more assets to satisfy the judgment. Rehouse moved for an Alias Writ of Execution against Fairfield
Bank (FB), the parent company of D-Securities. FB opposed the motion on the grounds that it is a separate entity and that it was
never made a party to the case. The RTC granted the motion and issued the Alias Writ of Execution. In its Resolution, the RTC relied
on the following facts: 499,995 out of the 500,000 outstanding shares of stocks of D-Securities are owned by FB; FB had actual
knowledge of the subject matter of litigation as the lawyers who represented D-Securities are also the lawyers of FB. As an alter ego,
there is no need for a finding of fraud or illegality before the doctrine of piercing the veil of corporate fiction can be applied. The RTC
ratiocinated that being one and the same entity in the eyes of the law, the service of summons upon D-Securities has bestowed
jurisdiction over both the parent and wholly-owned subsidiary. Is the RTC correct? (4%)
XXVI.
DMP Corporation (DMP) obtained a loan of P20 million from National Bank (NB) secured by a real estate mortgage over a 63,380square-meter land situated in Cabanatuan City. Due to the Asian Economic Crisis, DMP experienced liquidity problems disenabling it
from paying its loan on time. For that reason, NB sought the extra judicial foreclosure of the said mortgage by filing a petition for sale
on June 30, 2003. On September 4, 2003, the mortgaged property was sold at public auction, which was eventually awarded to
NBas the highest bidder. That same day, the Sheriff executed a Certificate of Sale in favor of NB.
On October 21, 2003, DMP filed a Petition for Rehabilitation before the Regional Trial Court (RTC). Pursuant to this, a Stay Order
was issued by the RTC on October 27, 2003.
On the other hand, NB caused the recording of the Sheriffs Certificate of Sale on December 3, 2003 with the Register of Deeds of
Cabanatuan City. NB executed an Affidavit of Consolidation of Ownership and had the same annotated on the title of DMP.
Consequently, the Register of Deeds cancelled DMPs title and issued a new title in the name of NB on December 10, 2003.
NB also filed on March 17, 2004 an Ex-Parte Petition for Issuance of Writ of Possession before the RTC of Cabanatuan City. After
hearing, the RTC issued on September 6, 2004 an Order directing the Issuance of the Writ of Possession, which was issued on
October 4, 2004.
DMP claims that all subsequent actions pertaining to the Cabanatuan property should have been held in abeyance after the Stay
Order was issued by the rehabilitation court. Is DMP correct? (4%)
XXVII.
ELP Insurance, Inc. issued Marine Policy No. 888 in favor of FCL Corp. to insure the shipment of 132 bundles of electric copper
cathodes against all risks. Subsequently, the cargoes were shipped on board the vessel "M/V Menchu" from Leyte to Pier 10, North
Harbor, Manila.
Upon arrival, FCL Corp. engaged the services of CGM, Inc. for the release and withdrawal of the cargoes from the pier and the
subsequent delivery to its warehouses/plants in Valenzuela City. The goods were loaded on board twelve (12) trucks owned by CGM,
Inc., driven by its employed drivers and accompanied by its employed truck helpers. Of the twelve (12) trucks en routeto Valenzuela
City, only eleven (11) reached the destination. One (1) truck, loaded with eleven (11) bundles of copper cathodes, failed to deliver its
cargo.
Because of this incident, FCL Corp. filed with ELP Insurance, Inc. a claim for insurance indemnity in the amount of P1,500,000.00.
After the requisite investigation and adjustment, ELP Insurance, Inc. paid FCL Corp. the amount of P1,350,000.00 as insurance
indemnity.
ELP Insurance, Inc., thereafter, filed a complaint for damages against CGM, Inc. before the Regional Trial Court (RTC), seeking
reimbursement of the amount it had paid to FCL Corp. for the loss of the subject cargo. CGM, Inc. denied the claim on the basis that
it is not privy to the contract entered into by and between FCL Corp. and ELP Insurance, Inc., and hence, it is not liable therefor. If
you are the judge, how will you decide the case? (4%)
XXVIII.
Which of the following instruments is negotiable if all the other requirements of negotiability are met? (1%)
(A) A promissory note with promise to pay out of the U.S. Dollar account of the maker in XYZ Bank
(B) A promissory note which designates the U.S. Dollar currency in which payment is to be made
(C) A promissory note which contains in addition a promise to paint the portrait of the bearer
(D) A promissory note made payable to the order of Jose Cruz or Josefa Cruz
XXIX.
KKis from Bangkok, Thailand. She studies medicine in the Pontifical University of Santo Tomas (UST). She learned that the same
foreign books prescribed in UST are 40-50% cheaper in Bangkok. So she ordered 50 copies of each book for herself and her
classmates and sold the books at 20% less than the price in the Philippines. XX, the exclusive licensed publisher of the books in the
Philippines, sued KK for copyright infringement. Decide. (4%)
---oo0ooo--2014 BAR EXAMINATIONS
CRIMINAL LAW
October 19, 2014
2:00 P.M.- 6:00 P.M.

INSTRUCTIONS
1. This Questionnaire contains TWELVE (12) pages including these Instructions pages. Check the number of pages and the page
There are TWENTY-SIX (26) Essay and Multiple Choice Questions (MCQs) to be answered within four (4) hours.
is only one correct answer to every MCQ; choose the BEST answer from among the offered choices.
Chairman
I.
Ms. Ahad been married to Mr. B for 10 years. Since their marriage, Mr. B had been jobless and a drunkard, preferring to stay with his
"barkadas" until the wee hours of the morning. Ms. A was the breadwinner and attended to the needs of their three (3) growing
children. Many times, when Mr. Bwas drunk, he would beat Ms. Aand their three (3) children, and shout invectives against them. In
fact, in one of the beating incidents, Ms. A suffered a deep stab wound on her tummy that required a prolonged stay in the hospital.
Due to the beatings and verbal abuses committed against her, she consulted a psychologist several times, as she was slowly
beginning to lose her mind. One night, when Mr. Barrived dead drunk, he suddenly stabbed Ms. Aseveral times while shouting
invectives against her. Defending herself from the attack, Ms. A grappled for the possession of a knife and she succeeded. She then
stabbed Mr. B several times which caused his instantaneous death. Medico-Legal Report showed that the husband suffered three (3)
stab wounds. Can Ms. Avalidly put up a defense? Explain. (5%)
II.
Macho married Ganda, a transgender. Macho was not then aware that Ganda was a transgender. On their first night, after their
marriage, Macho discovered that Ganda was a transgender. Macho confronted Ganda and a heated argument ensued. In the course
of the heated argument, a fight took place wherein Ganda got hold of a knife to stab Macho. Macho ran away from the stabbing
thrusts and got his gun which he pointed at Ganda just to frighten and stop Ganda from continuing with the attack. Macho had no
intention at all to kill Ganda. Unfamiliar with guns, Macho accidentally pulled the trigger and hit Ganda that caused the latters death.
What was the crime committed? (4%)
III.
City Engr. A, is the city engineer and the Chairman of the Bids and Awards Committee (BAC) of the City of Kawawa. In 2009, the City
of Kawawa, through an ordinance,allotted the amount of P100 million for the construction of a road leading to the poblacion. City
Engr. A instead, diverted the construction of the road leading to his farm. Investigation further showed that he accepted money in the
amount of P10 million each from three (3) contending bidders, who eventually lost in the bidding.
Audit report likewise showed that service vehicles valued at P2 million could not be accounted for although reports showed that
these were lent to City Engr. As authorized drivers but the same were never returned. Further, there were funds under City Engr. As
custody amounting to P10 million which were found to be missing and could not be accounted for. In another project, he was
instrumentalin awarding a contract for the construction of a city school building costing P10 million to a close relative, although the
lowest bid was P8 million. Investigation also revealed that City Engr. A has a net worth of more than P50 million, which was way
beyond his legitimate income. (8%)
(A) If you are the Ombudsman, what charge or charges will you file against City Engr. A?
(B) Suppose the discovered net worth of City Engr. Ais less than P50 million, will your answer still be the same?
IV.
Madam X, a bank teller, received from depositor Madam Y a check payable to cash in the amount of P1 million, to be deposited to
the account of Madam Y. Because the check was not a crossed check, Madam X credited the amount to the account of her good
friend, Madam W, by accomplishing a deposit slip. Seven (7) days after, Madam X contacted her good friend, Madam W and told her
that the amount of P1 million was wrongfully credited to Madam W, thus, Madam X urged Madam W to withdraw the amount of P1
million from her accountand to turn over the same to Madam X. As a dutiful friend, Madam W readily acceded. She was gifted by
Madam X with an expensive Hermes bag after the withdrawal of the amount. What crime/s, if any, did Madam X and Madam W
commit? Explain. (5%)
V.
Congress passed a law reviving the Anti-Subversion Law, making it a criminal offense again for a person to join the Communist Party
of the Philippines. Reporma, a former high-ranking member of the Communist Party, was charged under the new law for his
membership in the Communist Party when he was a student in the 80s. He now challenges the charge against him. What objections
may he raise? (3%)
VI.
Awas caught peeping through a small hole in the bathroom door while a young 16-year-old lady was taking a bath. Ais liable for: (1%)
(A) Violation of R.A. 9262 or Violence Against Women and their Children
(B) Violation of R.A. 7610 Child Abuse Law
(C) Light coercion
(D) Acts of lasciviousness
VII.
Filthy, a very rich businessman, convinced Loko, a clerk of court, to issue an order of release for Takas, Filthys cousin, who was in
jail for a drug charge. After receiving P500,000.00, Loko forged the signature of the judge on the order of release and accompanied
Filthyto the detention center. At the jail, Loko gave the guard P10,000.00 to open the gate and let Takas out.
What crime or crimes did Filthy, Loko, and the guard commit? (4%)
VIII.
Pretty was a campus beauty queen who, because of her looks and charms, attracted many suitors. Having decided that she would
become a nun, Pretty turned down all her suitors. Guapo, one of her most persistent suitors, could not handle rejection and one
night, decided to accost Pretty as she walked home. Together with Pogi, Guapo forced Pretty into his car and drove her to an
abandoned warehouse where heand Pogi forced Pretty to dance for them. Later, the two took turns in raping her.After satisfying their
lusts, Guapo and Pogi dropped her off at her house. (4%)
(A) What crime or crimes did Guapo and Pogi commit?
(B) Pretty, after the ordeal, decided to take her own life by hanging herself one hour after the rape. Would Guapo and Pogi
be liable for Prettys death? Explain.
IX.
A, B, and C agreed to rob the house of Mr. Dat 10 oclock in the evening, with Cas the driver of the tricycle which they would use in
going to and leaving the house of Mr. D, and Aand Bas the ones who would enter the house to get the valuables of Mr. D. As
planned, C parked the tricycle in a dark place, while A and B entered the house thru an open door. Once inside, A entered the
masters bedroom and started getting all the valuables he could see, while Bentered another room. While inside the room, B saw a
male person and immediately Bbrought out his gun but he accidentally pulled its trigger. The bullet went through the window, hitting a
neighbor that killed him. Neighbors were then awakened by the gunfire and policemen were alerted. Not long after, policemen
arrived. Aand B panicked and got hold of a young boy and shouted to the policemen who were already outside of the house that they
would harm the boy if the policemen did not disperse. Aand B demanded that they should be allowed to use a vehicle to bring them
to a certain place and that would be the time that they would release the young boy. The policemen acceded. In the meantime, Cwas
arrested by the policemen while he was about to flee, while Aand B, after releasing the young boy, were arrested.
What crime/s did A, B, and Ccommit, and what modifying circumstances attended the commission of the crime/s? (6%)
X.
Loko advertised on the internet that he was looking for commercial models for a TV advertisement. Ganda, a 16-year-old beauty,
applied for the project. Loko offered her a contract, which Ganda signed. She was asked to report to an address which turned out to
be a high-end brothel. Ganda became one of its most featured attraction. What is Lokos liability, if any? What effect would Gandas
minority have on Lokos liability? (4%)
XI.
A, in a public place, fired his gun at B with the intention of killing B, but the gun did not fire because the bullet is a dud. The crime is:
(1%)
(A) attempted homicide
(B) grave threat
(C) impossible crime
(D) alarm and scandal
XII.
Sexy boarded a taxi on her way home from a party. Because she was already tipsy, she fell asleep. Pogi, the taxi driver, decided to
take advantage of the situation and drove Sexyto a deserted place where he raped her for a period of two (2) weeks. What crime did
Pogi commit? (4%)
XIII.
Puti detested Pula, his roommate, because Pula was courting Ganda, whom Puti fancied. One day, Puti decided to teach Pula a
lesson and went to a veterinarian (Vet) to ask for poison on the pretext that he was going to kill a sick pet, when actually Puti was
intending to poison Pula.
The Vetinstantly gave Puti a non-toxic solution which, when mixed with Pulas food, did not kill Pula. (4%)
(A) What crime, if any, did Puti commit?
(B) Would your answer be the same if, as a result of the mixture, Pula got an upset stomach and had to be hospitalized for
10 days?
XIV.
Malo, a clerk of court of a trial court, promised the accused in a drug case pending before the court, that he would convince the judge
to acquit him for a consideration of P5 million. The accused agreed and delivered the money, through his lawyer, to the clerk of court.
The judge, not knowing of the deal, proceeded to rule on the evidence and convicted the accused. (4%)
(A) Malowas charged with violation of Section 3(b), Republic Act (R.A.) No. 3019, which prohibits a public officer from
directly or indirectly requesting or receiving any gift, present, share percentage or benefit wherein the public officer, in his
official capacity, has to intervene under the law. He was later charged also with indirect bribery under the Revised Penal
Code. Malo claims he can no longer be charged under the Revised Penal Code for the same act under R.A. 3019. Is he
correct?
(B) Malowas charged with estafa under Article 315 because he misrepresented that he had influence, when he actually
had none. Is the charge correct?
XV.
Which of the following is not a privilege mitigating circumstance? (1%)
(A) 17-year-old offender
(B) 14-year-old offender
(C) incomplete self-defense
(D) incomplete defense of a relative
XVI.
Mr. Benjie is the owner of a hardware store specializing in the sale of plumbing materials. On February 1, 2014, Mr. Ed, a friend and
regular customer of Mr. Benjie, visited the hardware store and purchased several plumbing materials in the total amount of P5
million. Mr. Benjiereadily accepted Mr. Eds payment of three (3) postdated checks in the amount of P1 million Pesos each in view of
the assurance of Mr. Ed that the checks will be honored upon presentment for payment. Mr. Benjie, as a consequence, immediately
delivered the materials to the house of Mr. Ed. The following day, Mr. Ed went back to Mr. Benjie to tender another two (2) postdated
checks in the amount of P1 million each to complete the payment, with the same assurance that the checks will be honored upon
presentment for payment. When the checks were presented for payment, all were dishonored for insufficiency of funds and
corresponding notices of dishonor were sent and received by Mr. Ed. One month after receipt of the notices of dishonor, Mr. Ed failed
to make good the checks. Thereafter, Mr. Benjie filed before the public prosecutors office a complaint against Mr. Ed, although no
demand letter was earlier sent to Mr. Ed.
During the preliminary investigation, Mr. Benjie accepted several amounts from Mr. Edas partial payments. The wife of Mr. Benjie
protested and insisted that the complaint should continue despite the partial payments. On the other hand, Mr. Ed counters that no
demand letter was earlier sent to him, that the obligation is merely civil in character and that novation took place when Mr. Benjie
accepted the partial payments. Discuss the criminal liability, if any, of Mr. Ed. (6%)
XVII.
Pierceis a French diplomat stationed in the Philippines. While on EDSA and driving with an expired license, he hit a pedestrian who
was crossing illegally. The pedestrian died. Pierce was charged with reckless imprudence resulting in homicide. In his defense, he
claimed diplomatic immunity. Is Pierce correct? (3%)
XVIII.
Manolo, an avid art collector, was invited to Tonios house. There, Manolo noticed a nice painting that exactly looked like the painting
which he reported was stolen from him some years back. Manolo confronted Tonio about the painting, but Tonio denied any
knowledge, claiming that he bought the painting legitimately from a friend. Manolo later proved to Toniothat the painting was indeed
the stolen painting. (4%)
(A) What crime/s, if any, may Tonio be charged with?
(B) Manolo decided to take matters into his own hands and, one night, broke into Tonios house by destroying the wall and
taking the painting. What, if any, would be the liability of Manolo?
XIX.
Clepto went alone to a high-end busy shop and decided to take one of the smaller purses without paying for it. Overcame by
conscience, she decided to leave her own purse in place of the one she took. Her act was discovered and Cleptowas charged with
theft. She claimed that there was no theft, as the store suffered no injuryor prejudice because she had left a purse in place of the one
she took. Comment on her defense. (3%)
XX.
Which of the following is not a qualifying aggravating circumstance? (1%)

(A) treachery
(B) evident premeditation
(C) dwelling
(D) cruelty
XXI.
During trial for theft in 2014, the prosecution managed to show that accused AA has also been convicted by final judgment for
robbery in 2003, but she eluded capture. A subsequent verification showed that AA had several convictions, to wit:
(1.) In 1998, she was convicted of estafa;
(2.) In 2002, she was convicted of theft;
(3.) In 2004, she was convicted of frustrated homicide;
The judge trying the theft case in 2014 is about to convict AA. What circumstances affecting the liability or penalty may the judge
appreciate against AA? (4%)
XXII.
Mr. Red was drinking with his buddies, Mr. White and Mr. Blue when he saw Mr. Green with his former girlfriend, Ms. Yellow. Already
drunk, Mr. Red declared in a loud voice that if he could not have Ms. Yellow, no one can. He then proceeded to the mens room but
told Mr. White and Mr. Blue to take care of Mr. Green. Mr. Blue and Mr. White asked Mr. Red what he meant but Mr. Red simply said,
"You already know what I want," and then left. Mr. Blue and Mr. White proceeded to kill Mr. Green and hurt Ms. Yellow. (4%)
(A) What, if any, are the respective liabilities of Mr. Red, Mr. White and Mr. Blue for the death of Mr. Green?
(B) What, if any, are the respective liabilities of Mr. Red, Mr. White and Mr. Blue for the injuries of Ms. Yellow?
XXIII.
Carla, four (4) years old, was kidnapped by Enrique, the tricycle driver engaged by her parents to drive her to and from school every
day. Enrique wrote a ransom note demanding that Carlas parents pay him P500,000.00 ransom in exchange for her liberty.
However, before the ransom note could be received by Carlas parents, Enriques hideout was discovered by the police. Carla was
rescued while Enrique was arrested. The prosecutor considered that the ransom note was never received by Carlas parents and
filed a case of "Impossible crime to commit kidnapping" against Enrique. Is the prosecutor correct? If he is not correct, can he instead
file a case of grave coercion? (4%)
XXIV.
A, a young boy aged sixteen (16) at the time of the commission of the crime, was convicted when he was already seventeen (17)
years of age for violation of Section 11 of R.A. 9165 or Illegal Possession of Dangerous Drugs for which the imposable penalty is life
imprisonment and a fine. Section 98 of the same law provides that if the penalty imposed is life imprisonment to death on minor
offenders, the penalty shall be reclusion perpetuato death. Under R.A. 9344, a minor offender is entitled to a privilege mitigating
circumstance. (8%)
(A) May the privilege mitigating circumstance of minority be appreciated considering that the penalty imposed by law is life
imprisonment and fine?
(B) Is the Indeterminate Sentence Law applicable considering that life imprisonment has no fixed duration and the
Dangerous Drugs Law is malum prohibitum?

(C) If the penalty imposed is more than six (6) years and a notice of appeal was filed by Aand given due course by the
court, may A still file an application for probation?
(D) If probation is not allowed by the court, how will Aserve his sentence?
XXV.
Mr. Gray opened a savings account with Bank A with an initial deposit of P50,000.00. A few days later, he deposited a check
for P200,000.00 drawn from Bank B and endorsed by Mr. White. Ten days later, Mr. Gray withdrew the P200,000.00 from his
account. Mr. White later complained to Bank B when the amount ofP200,000.00 was later debited to his account, as he did not issue
the check and his signature thereon was forged. Mr. Gray subsequently deposited another check signed by Mr.
Whitefor P200,000.00, which amount he later withdrew. Upon receiving the amount, Mr. Gray was arrested by agents of the National
Bureau of Investigation (NBI).
Mr. Gray was convicted of estafa and attempted estafa, both through the use of commercial documents. (4%)
(A) Mr. Gray claims as defense that, except for Mr. Whites claim of forgery, there was no evidence showing that he was
the author of the forgery and Mr. White did not suffer any injuries as to the second check (attempted estafa). Rule on the
defense of Mr. Gray.
(B) Mr. Gray claims that he was entrapped illegally because there was no showing that the second check was a forgery
and, therefore, his withdrawal based on the second check was a legal act. Is Mr. Gray correct?
XXVI.
Awas bitten by a dog owned by a neighbor. The following day, angered by the incident, Atook the dog without the knowledge of the
owner, had it butchered and cooked the meat. Hethen invited his friends to partake of the dish with his friends who knew fully well
that the dog was taken without the knowledge of the owner. What are the friends of Aliable for? (1%)
(A) Theft
(B) Malicious mischief
(C) Accessories
(D) Obstruction of Justice
---oo0ooo---

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2014 Bar Examinations

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2014 BAR EXAMINATIONS

8:00A.M.- 12:00 N.N.

2:00P.M.- 6:00 P.M.

(B) whether he can file a case in the Philippines

Is the contention of EGE proper? Explain. (5%)

October 12, 2014

8:00 A.M.- 12:00 N.N.

making further payments.

(A) formation of an island

financial difficulty. Is the sublease contract valid? (1%)

October 12, 2014

2:00 P.M.- 6:00 P.M.

Second quarter - July 23, 2012

Will the petition prosper? (5%)

Contract of Sale as her evidence. Is the Contract of Sale admissible? (4%)

Choose the correct answer. Double Taxation - (1%)

October 19, 2014

8:00 A.M.- 12:00 N.N.

Are the actions of the Executive Committee valid? (4%)

4. Soterodid not sign the application for insurance.

October 19, 2014

2:00 P.M.- 6:00 P.M.

Which of the following is not a qualifying aggravating circumstance? (1%)

Dangerous Drugs Law is malum prohibitum?

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