Professional Documents
Culture Documents
#UPLawEvening
2009
Bar Q&A
public office, the Ombudsman
may order the bank concerned to
MERCANTILE LAW allow in camera inspection of
bank records and documents.
PART I
SUGGESTED ANSWER:
I
False. The Bank Secrecy Law
TRUE or FALSE. Answer TRUE if the
prohibits the inspection of a bank account
statement is true, or FALSE if the statement is
unless the permission of the account
false. Explain your answer in not more than
holder is obtained, or upon lawful order of
two (2) sentences. (5%)
the court or when the deposit is the
INTELLECTUAL PROPERTY CODE; IP subject of litigation. Investigation by the
RIGHTS (2009) Ombudsman is not considered as a pending
litigation to allow the examination of the
[a] The Denicola Test in intellectual bank records and documents (Marquez v.
property law states that if design Desierto, 359 SCRA 772 [2001]).
elements of an article reflect a
merger of aesthetic and
functional considerations, the
BULK SALES (2009)
artistic aspects of the work
cannot be conceptually separable [c] Even if the seller and the buyer
from the utilitarian aspects; thus in a sale in bulk violate the Bulk
the article cannot be Sales Law, the sale would still be
copyrighted. valid.
SUGGESTED ANSWER: SUGGESTED ANSWER:
True. Applying the Denicola Test in False. When the Bulk Sales Law is
Brandir International, Inc. v. Cascade violated, the sale is null and void. When
Pacific Lumber Co. (834 F. 2d 1142, 1988 the provisions of the said law have not
Copr.L.Dec. P26), the United States Court been complied with, the sale is considered
of Appeals for the Second Circuit held that as being fraudulent and void and even
if there is any aesthetic element which can when coupled with delivery, the title over
be separated from the utilitarian elements, the goods does not transfer to the buyer.
then the aesthetic element may be However, civil liabilities arising from the
copyrighted. transaction remain enforceable between
the parties thereto.
[Note: It is suggested that the candidate be
given full credit for whatever answer or
lack of it. Further it is suggested that
terms or any matter originating from CORPORATION CODE; CORPORATE
foreign laws or jurisprudence should not POWERS; SPECIFIC POWER; DECLARE
be asked.] DIVIDENDS (2009)
XI
SRC; SECURITIES REQUIRED TO BE
REGISTERED; EXEMPT SECURITIES (2009) TRUE or FALSE. Answer TRUE if the
statement is true, or FALSE if the statement is
X false. Explain your answer in not more than
two (2) sentences. (5%)
What are the so-called exempt
securities under the Securities Regulation TRUTH IN LENDING ACT [NOT IN
Code? (2%) SYLLABUS] (2009)
The
Preferred shares
[c] For injunction in order to stop shall have the
Lacoste International from following rights
featuring him in their preferences,
commercials. (2%) qualifications,
and limitations,
Will these actions prosper? Explain.
to wit:
SUGGESTED ANSWER:
1. The
The complaint for injunction to stop right to receive a
Lacoste International from featuring him in quarterly
its advertisements will prosper. This is a dividend of One
violation of subsection 123.4 (c) of the IPC Per Centum (1%)
and Art. 169 in relation to Art. 170 of the cumulative and
IPC. participating;
XVII
XVIII
Philippine Palaces Realty (PPR) had
Triple A Corporation (Triple A) was
been representing itself as a registered broker
incorporated in 1960, with 500 founders
of securities, duly authorized by the Securities
shares and 78 common shares as its initial
and Exchange Commission (SEC). On October
capital stock subscription. However, Triple A
6, 1996, PPR sold to spouses Leon and Carina
registered its stock and transfer book only in
one (1) timeshare of Palacio del Boracay for
1978, and recorded merely 33 common shares
US$7,500.00. However, its Registration
as the corporations issues and outstanding
Statement became effective only on February
shares.
11, 1998 after the SEC issued a resolution
declaring that PPR was authorized to sell CORPORATION LAW; INCORPORATION AND
securities, including timeshares. ORGANIZATION; ARTICLES OF
INCORPORATION (2009)
On March 30, 1998, Leon and Carina
wrote PPR rescinding their purchase [a] In 1982, Juancho, the sole heir
agreement and demanding the refund of the of one of the original
amount they paid, because the Palacio del incorporators filed a petition with
Boracay timeshare was sold to them by PPR the Securities and Exchange
without the requisite license or authority from Commission (SEC) for the
the SEC. PPR contended that the grant of the registration of his property rights
SEC authority had the effect of ratifying the over 120 founders shares and
12 common shares. The petition
XX
TRANSPORTATION LAW; COMMON
CARRIERS (2009) Under the Securities Regulation Code,
what is the Margin Trading Rule? (2%)
[c] What, if any, are the valid
defenses that CTC and UTI can SUGGESTED ANSWER:
raise in the respective actions
against them? Explain. (3%) Under the Margin Trading Rule, no
registered broker or dealer, or member of
SUGGESTED ANSWER: an exchange shall extend credit on any