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Bar Examination Questionnaires

September 2, 2007
Political and Public International Law
Labor and Social Legislation
September 9, 2007
Civil Law
Taxation
September 16, 2007
Mercantile Law
Criminal Law
September 23, 2007
Remedial Law
Legal Ethics and Practical Exercises

BAR EXAMINATIONS 2007


POLITICAL AND PUBLIC INTERNATIONAL LAW

2 September 2007 8:00 A.M. – 12:00 Noon

INSTRUCTIONS
This questionnaire consists of ten (10) numbers
contained in eight (8) pages. Read each question
very carefully. Answer 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 immediately succeeding pages
until completed. Do not repeat the question. A
mere “Yes” or “No” answer without any
corresponding discussion will not be given any
credit.
HAND IN YOUR NOTEBOOK WITH THIS
QUESTIONNAIRE
GOOD LUCK!!!
ADOLFO S. AZCUNA
CHAIRPERSON
2007 BAR EXAMINATIONS COMMITTEE
PLEASE CHECK THE NUMBER OF PAGES IN THIS SET
WARNING: NOT FOR SALE OR UNAUTHORIZED USE

POLITICAL AND PUBLIC INTERNATIONAL LAW

INSTRUCTION: YOU WILL BE GIVEN CREDIT FOR


YOUR KNOWLEDGE OF LEGAL DOCTRINE AND FOR
THE QUALITY OF YOUR LEGAL REASONING.

I.
(10 POINTS)

True or False. Briefly explain your answer.


(a) For purposes of communication and instruction, the
official languages of the Philippines, until otherwise
provided by law, are Filipino and English.
(b) The 1987 Constitution has increased the scope of
academic freedom recognized under the previous
Constitution.
II.
(10 POINTS)
The City Mayor issues an Executive Order declaring
that the city promotes responsible parenthood and upholds
natural family planning. He prohibits all hospitals operated by
the city from prescribing the use of artificial methods of
contraception, including condoms, pills, intrauterine devices
and surgical sterilization. As a result, poor women in his city
lost their access to affordable family planning programs.
Private clinics, however, continue to render family planning
counsel and devices to paying clients.
(a) Is the Executive Order in any way constitutionally
infirm? Explain.
(b) Is the Philippines in breach of any obligation under
international law? Explain.
(c) May the Commission on Human Rights order the Mayor
to stop the implementation of the Executive Order?
Explain.
III.
(10 POINTS)
Lawrence is a Filipino computer expert based in Manila
who invented a virus that destroys all the files stored in a
computer. Assume that in May 2005, this virus spread all
over the world and caused $50 million in damage to
in the United States, and that in June 2005, he was
criminally charged before United States courts under their
anti-hacker law. Assume that in July 2005, the Philippines
adopted its own anti-hacker law, to strengthen existing
sanctions already provided against damage to property. The
United States has requested the Philippines to extradite him
to US courts under the RP-US Extradition Treaty.
(a) Is the Philippines under an obligation to extradite
Lawrence? State the applicable rule and its rationale.
(b) Assume that the extradition request was made after the
Philippines adopted its anti-hacker legislation. Will that
change your answer?
IV.
(10 POINTS)
In 1993, historians confirmed that during World War II,
“comfort women” were forced into serving the Japanese
military. These women were either abducted or lured by
false promises of jobs as cooks or waitresses, and
eventually forced against their will to have sex with
Japanese soldiers on a daily basis during the course of the
war, and often suffered from severe beatings and venereal
diseases. The Japanese government contends that the
“comfort stations” were run as “onsite military brothels” (or
prostitution houses) by private operators, and not by the
Japanese military. There were many Filipina “comfort
women.”
(a) Name at least one basic principle or norm of
international humanitarian law that was violated by the
Japanese military in the treatment of the “comfort
women.”
(b) The surviving Filipina “comfort women” demand that the
Japanese government apologize and pay them
compensation. However, under the 1951 San Francisco
Peace Agreement – the legal instrument that ended the
state of war between Japan and the Allied Forces – all
the injured states, including the Philippines, received
war reparations and, in return, waived all claims against
Japan arising from the war. Is that a valid defense?
(c) The surviving Filipina “comfort women” sue the
Japanese government for damages before Philippine
courts. Will that case prosper?
V.
(10 POINTS)
The Destilleria Felipe Segundo is famous for its 15-year
old rum, which it has produced and marketed successfully
for the past 70 years. Its latest commercial advertisement
uses the line: “Nakatikim ka na ba ng kinse anyos?” Very
soon, activist groups promoting women’s and children’s
rights were up in arms against the advertisement.
(a) All advertising companies in the Philippines have
formed an association, the Philippine Advertising
Council, and have agreed to abide by all the ethical
guidelines and decisions by the Council. In response to
the protests, the Council orders the pull-out of the
“kinse anyos” advertising campaign. Can Destilleria
Felipe Segundo claim that its constitutional rights are
thus infringed?
(b) One of the militant groups, the Amazing Amazonas, call
on all government-owned and controlled corporations
(GOCC) to boycott any newspaper, radio or TV station
that carries the “kinse anyos” advertisements. They call
on all government nominees in sequestered
corporations to block any advertising funds allocated for
any such newspaper, radio or TV station. Can the
GOCCs and sequestered corporations validly comply?
VI.
(10 POINTS)
True or False. Briefly explain your answer.
(a) An amendment to the Constitution shall be valid upon a
vote of three-fourths of all the Members of the
Congress.
(b) All public officers and employees shall take an oath to
uphold and defend the Constitution.
VII.
(10 POINTS)
Batas Pambansa 880, the Public Assembly Law of
1985, regulates the conduct of all protest rallies in the
Philippines.
(a) Salakay, Bayan! held a protest rally and planned to
march from Quezon City to Luneta in Manila. They
received a permit from the Mayor of Quezon City, but
not from the Mayor of Manila. They were able to march
in Quezon City and up to the boundary separating it
from the City of Manila. Three meters after crossing the
boundary, the Manila Police stopped them for posing a
danger to public safety. Was this a valid exercise of
police power?
(b) The security police of the Southern Luzon Expressway
spotted a caravan of 20 vehicles, with paper banners
taped on their sides and protesting graft and corruption
in government. They were driving at 50 kilometers per
hour in a 40-90 kilometers per hour zone. Some
banners had been blown off by the wind, and posed a
hazard to other motorists. They were stopped by the
security police. The protesters then proceeded to march
instead, sandwiched between the caravan vehicles.
They were also stopped by the security force. May the
security police validly stop the vehicles and the
marchers?
VIII.
(10 POINTS)
The Provincial Governor of Bataan requested the
Department of Budget and Management (DBM) to release its
Internal Revenue Allocation (IRA) of P100 million for the
current budget year. However, the General Appropriations
Act provided that the IRA may be released only if the
province meets certain conditions as determined by an
Oversight Council created by the President.
(a) Is this requirement valid?
(b) The Provincial Governor is a party-mate of the
President. May the Bataan Representative instead
file a petition to compel the DBM to release the
funds?
IX.
(10 POINTS)
The Department of Education (DepEd) requires that
any school applying for a tuition fee increase must, as a
condition for the increase, offer full tuition scholarships to
students from low-income families. The Sagrada Familia
Elementary School is a Catholic school and has applied for a
tuition fee increase. Under this regulation by the DepEd, it
will end up giving tuition scholarships to a total of 21
students next year. At a cost of P50,000 per student, the
school will lose a total of P1.05 million for next year.
(a) Is this DepEd requirement valid?
(b) If instead the DepEd requires a full tuition scholarship
for the highest ranking students in each grade,
determined solely on the basis of academic grades and
rank, will the DepEd requirement be valid?
X.
(10 POINTS)
The Supreme Court has provided a formula for
allocating seats for party-list representatives.
(a) The twenty percent allocation – the combined
number of all party-list congressmen shall not
exceed twenty percent of the total membership of
the House of Representatives, including those
elected under the party list;
(b) The two percent threshold – only those parties
garnering a minimum of two percent of the total
valid votes cast for the party-list system are
"qualified" to have a seat in the House of
Representatives;
(c) The three-seat limit – each qualified party,
regardless of the number of votes it actually
obtained, is entitled to a maximum of three seats;
that is, one "qualifying" and two additional seats;
and
(d) The first-party rule – additional seats which a
qualified party is entitled to shall be determined in
relation to the total number of votes garnered by
the party with the highest number of votes.
For each of these rules, state the constitutional or legal
basis, if any, and the purpose.
NOTHING FOLLOWS.
BAR EXAMINATIONS 2007
LABOR AND SOCIAL LEGISLATION

2 September 2007 2:00 P.M. – 5:00 P.M.

INSTRUCTIONS
This questionnaire consists of twenty (20)
numbers contained in seven (7) pages. Read
each question very carefully. Answer 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 immediately succeeding
pages until completed. Do not repeat the
question. A mere “Yes” or “No” answer without
any corresponding discussion will not be given
any credit.
HAND IN YOUR NOTEBOOK WITH THIS
QUESTIONNAIRE
GOOD LUCK!!!
ADOLFO S. AZCUNA
CHAIRPERSON
2007 BAR EXAMINATIONS COMMITTEE
PLEASE CHECK THE NUMBER OF PAGES IN THIS SET
WARNING: NOT FOR SALE OR UNAUTHORIZED USE

I.
(5 POINTS)
1. a) What is the principle of codetermination?
b) What, if any, is the basis under the Constitution
for adopting it?

II.
(5 POINTS)
2. a) Discuss the statutory restrictions on the
employment of minors?
b) May a househelp be assigned to non-household
work?
III.
(5 POINTS)
3. a) Discuss the types of illegal recruitment under the
Labor Code.
b) In initiating actions against alleged illegal
recruiters, may the Secretary of Labor and
Employment issue search and arrest warrants?
IV.
(5 POINTS)
4. Explain:
a) The Globe Doctrine.
b) The Community of Interest Rule.
LABOR AND SOCIAL LEGISLATION Page 3 of 7
V.
(5 POINTS)
May non-lawyers appear before the NLRC or Labor
Arbiter? May they charge attorney’s fee for such
appearance provided it is charged against union funds and
in an amount freely agreed upon by the parties? Discuss
fully.
VI.
(5 POINTS)
Procedurally, how do you stay a decision, award or
order of the Labor Arbiter? Discuss fully.
VII.
(5 POINTS)
7. a) May the NLRC or the courts take jurisdictional
cognizance over compromise agreements/
settlements involving labor matters?
b) How sacrosanct are statements/data made at
conciliation proceedings in the Department of
Labor and Employment? What is the philosophy
behind your answer?
VIII.
(5 POINTS)
Discuss in full the jurisdiction over the civil and criminal
aspects of a case involving an unfair labor practice for which
a charge is pending with the Department of Labor and
Employment.
IX.
(5 POINTS)
Discuss the legal requirements of a valid strike.
X.
(5 POINTS)
Discuss briefly the instances when non-compliance by
the employer with a reinstatement order of an illegally
dismissed employee is allowed.
XI.
(5 POINTS)
11. a) As a rule, when is retirement due?
b) When is retirement due for underground miners?
XII.
(5 POINTS)
12. a) How do you execute a labor judgment which, on
appeal, had become final and executory? Discuss
fully.
b) Cite two instances when an order of execution
may be appealed.
XIII.
5 POINTS
May a decision of the Labor Arbiter which has become
final and executory be novated through a compromise
agreement of the parties?

XIV.
5 POINTS
AB, single and living-in with CD (a married man), is
pregnant with her fifth child. She applied for maternity leave
but her employer refused the application because she is not
married. Who is right? Decide.
XV.
(5 POINTS)
Some officers and rank-and-file members of the union
staged an illegal strike. Their employer wants all the strikers
dismissed. As the lawyer, what will you advise the
employer? Discuss fully.
XVI.
(5 POINTS)
A carpenter is employed by a private university in
Manila. Is the carpenter a regular or a casual employee?
Discuss fully.
XVII.
(5 POINTS)
P.D. 1508 requires the submission of disputes before
the Barangay Lupong Tagapamayapa prior to the filing of
cases with the courts or other government bodies. May this
decree be used to defeat a labor case filed directly with the
Labor Arbiter? Discuss fully.
XVIII.
(5 POINTS)
Inday was employed by mining company X to perform
laundry service at its staffhouse. While attending to her
assigned task, she slipped and hit her back on a stone.
Unable to continue with her work, she was permitted to go
on leave for medication, but thereafter she was not allowed
to return to work. She filed a complaint for illegal dismissal
but her employer X contended that Inday was not a regular
employee but a mere househelp. Decide.

XIX.
(5 POINTS)
Cite five grounds for disciplinary action by the Philippine
Overseas Employment Administration (POEA) against
overseas workers.
XX.
(5 POINTS)
AB, a non-resident American, seeks entry to the
country to work as Vice-President of a local
telecommunications company. You are with the Department
of Labor and Employment (DOLE). What permit, if any, can
the DOLE issue so that AB can assume as Vice-President in
the telecommunications company? Discuss fully.
NOTHING FOLLOWS.
BAR EXAMINATIONS 2007
CIVIL LAW

9 September 2007 8:00 A.M. – 12:00 Noon

INSTRUCTIONS
This questionnaire consists of ten (10) numbers
contained in seven (7) pages. Read each question
very carefully. Answer 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 immediately succeeding pages
until completed. Do not repeat the question. A
mere “Yes” or “No” answer without any
corresponding discussion will not be given any
credit.
HAND IN YOUR NOTEBOOK WITH THIS
QUESTIONNAIRE.
GOOD LUCK!!!
ADOLFO S. AZCUNA
CHAIRPERSON
2007 BAR EXAMINATIONS COMMITTEE
PLEASE CHECK THE NUMBER OF PAGES IN THIS SET.
WARNING: NOT FOR SALE OR UNAUTHORIZED USE
I.
Distinguish the following concepts:
(a) Occupation v. possession. (5%)
(b) Illegal and impossible conditions in a simple donation v.
illegal and impossible conditions in an onerous
donation. (5%)

II.
(10%)
Manila Petroleum Co. owned and operated a petroleum
operation facility off the coast of Manila. The facility was
located on a floating platform made of wood and metal, upon
which was permanently attached the heavy equipment for
the petroleum operations and living quarters of the crew.
The floating platform likewise contained a garden area,
where trees, plants and flowers were planted. The platform
was tethered to a ship, the MV 101, which was anchored to
the seabed.
(a) Is the platform movable or immovable property?
(b) Are the equipment and living quarters movable or
immovable property?
(c) Are the trees, plants and flowers immovable or movable
property?
Please briefly give the reason for your answers.
III.
Explain the following concepts and doctrines and give
an example of each:
(a) concept of trust de son tort (constructive trust) (5%)
(b) doctrine of discovered peril (last clear chance) (5%)
IV.
(10%)
Bedrock Land & Property Development Corp. is a
development company engaged in developing and selling
subdivisions, condominium units and industrial estates. In
order to replenish its inventories, it embarked on an
aggressive land banking program. It employed “scouts” who
roam all over the Philippines to look for and conduct
investigations on prospective sites for acquisition and
development, whether developed, semi-developed or raw
land. The management of Bedrock asks you as the
company counsel to prepare a manual containing a
summary of the pertinent laws and regulations relating to
land registration and acquisition of title to land. The manual
should include the following items:
(a) What is the governing law?
(b) What properties are not registrable?
Supply this information.
V.
(10%)
What are “obligations without an agreement”? Give five
examples of situations giving rise to this type of obligations?
VI.
(10%)
Clara, thinking of her mortality, drafted a will and asked
Roberta, Hannah, Luisa and Benjamin to be witnesses.
During the day of the signing of her will, Clara fell down the
stairs and broke both her arms. Coming from the hospital,
Clara insisted on signing her will by thumb mark and said
that she can sign her full name later. While the will was
being signed, Roberta experienced a stomach ache and kept
going to the restroom for long periods of time. Hannah,
while waiting for her turn to sign the will, was reading the 7th
Harry Potter book on the couch, beside the table on which
everyone was signing. Benjamin, aside from witnessing the
will, also offered to notarize it. A week after, Clara was run
over by a drunk driver while crossing the street in Greenbelt.
May the will of Clara be admitted to probate? Give your
reasons briefly.
VII.
Write “TRUE” if the statement is true or “FALSE” if the
statement is false. If the statement is FALSE, state the
reason. (2% each)
1. Roberta, a Filipino, 17 years of age, without the
knowledge of his parents, can acquire a house in
Australia because Australian Laws allow aliens to
acquire property from the age of 16.
2. If a man commits several acts of sexual infidelity,
particularly in 2002, 2003, 2004, 2005, the prescriptive
period to file for legal separation runs from 2002.
3. An individual, while single, purchases a house and lot in
1990, and borrows money in 1992 to repair it. In 1995,
such individual gets married while the debt is still being
paid. After the marriage, the debt is still the
responsibility of such individual.
4. The day after John and Marsha got married, John told
her that he was impotent. Marsha continued to live with
John for 2 years. Marsha is now estopped from filing
an annulment case against John.
5. Amor gave birth to Thelma when she was 15 years old.
Thereafter, Amor met David and they got married when
she was 20 years old. David had a son, Julian, with his
ex-girlfriend Sandra. Julian and Thelma can get
married.
VIII.
(10%)
In 1986, Jennifer and Brad were madly in love. In
1989, because a certain Picasso painting reminded Brad of
her, Jennifer acquired it and placed it in his bedroom. In
1990, Brad and Jennifer broke up. While Brad was mending
his broken heart, he met Angie and fell in love. Because the
Picasso painting reminded Angie of him, Brad in his will
bequeathed the painting to Angie. Brad died in 1995.
Saddened by Brad’s death, Jennifer asked for the Picasso
painting as a remembrance of him. Angie refused and
claimed that Brad, in his will, bequeathed the painting to her.
Is Angie correct? Why or why not?
IX.
Multiple choice: Choose the right answer. (2% each)
1. The parties to a bailment are the:
a) bailor;
b) bailee;
c) comodatario;
d) all of the above;
e) letters a and b
2. A deposit made in compliance with a legal obligation is:
a) an extrajudicial deposit;
b) a voluntary deposit;
c) a necessary deposit;
d) a deposit with a warehouseman;
e) letters a and b.
3) A contract of antichresis is always:
a) a written contract;
b) a contract with a stipulation that the debt will be
paid through receipt of the fruits of an immovable;
c) involves the payment of interests, if owing;
d) all of the above;
e) letters a and b.
4) An assignee in a proceeding under the Insolvency Law
does not have the duty of:
a) suing to recover the properties of the estate of the
insolvent debtor;
b) selling property of the insolvent debtor;
c) ensuring that a debtor corporation operate the
business efficiently and effectively while the
proceedings are pending;
d) collecting and discharging debts owed to the
insolvent debtor.
5) In order to obtain approval of the proposed settlement
of the debtor in an insolvency proceeding:
a) the court must initiate the proposal;
b) 2/3 of the number of creditors should agree to the
settlement;
c) 3/5 of the number of creditors should agree to the
settlement;
d) 1/3 of the total debts must be represented by the
approving creditors;
e) letters a and b.
X.
(10%)
For purposes of this question, assume all formalities
and procedural requirements have been complied with.
In 1970, Ramon and Dessa got married. Prior to their
marriage, Ramon had a child, Anna. In 1971 and 1972,
Ramon and Dessa legally adopted Cherry and Michelle,
respectively. In 1973, Dessa died while giving birth to Larry.
Anna had a child, Lia. Anna never married. Cherry, on the
other hand, legally adopted Shelly. Larry had twins, Hans
and Gretel, with his girlfriend, Fiona. In 2005, Anna, Larry,
and Cherry died in a car accident. In 2007, Ramon died.
Who may inherit from Ramon and who may not? Give your
reasons briefly.
NOTHING FOLLOWS.
BAR EXAMINATIONS 2007
TAXATION

9 September 2007 2:00 P.M. – 5:00 P.M.

INSTRUCTIONS
This questionnaire consists of thirteen (13)
numbers contained in seven (7) pages. Read
each question very carefully. Answer 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 immediately succeeding
pages until completed. Do not repeat the
question. A mere “Yes” or “No” answer without
any corresponding discussion will not be given
any credit.
HAND IN YOUR NOTEBOOK WITH THIS
QUESTIONNAIRE.
GOOD LUCK!!!
ADOLFO S. AZCUNA
CHAIRPERSON
2007 BAR EXAMINATIONS COMMITTEE
PLEASE CHECK THE NUMBER OF PAGES IN THIS SET.
WARNING: NOT FOR SALE OR UNAUTHORIZED USE
I.
(5%)
What is the nature of the taxing power of the provinces,
municipalities and cities? How will the local government
units be able to exercise their taxing powers?

II.
(10%)
The Local Government Code took effect on January 1,
1992.
PLDT’s legislative franchise was granted sometime
before 1992. Its franchise provides that PLDT will only pay
3% franchise tax in lieu of all taxes.
The legislative franchises of Smart and Globe
Telecoms were granted in 1998. Their legislative franchises
state that they will pay only 5% franchise tax in lieu of all
taxes.
The Province of Zamboanga del Norte passed an
ordinance in 1997 that imposes a local franchise tax on all
telecommunication companies operating within the province.
The tax is 50% of 1% of the gross annual receipts of the
preceding calendar year based on the incoming receipts, or
receipts realized, within its territorial jurisdiction.
Is the ordinance valid? Are PLDT, Smart and Globe
liable to pay franchise taxes? Reason briefly.
III.
(5%)
What kind of taxes, fees and charges are considered as
National Internal Revenue Taxes under the National Internal
Revenue Code (NIRC)?
IV.
(10%)
XYZ Corporation, an export oriented company, was
able to secure a Bureau of Internal Revenue (BIR) ruling in
June 2005 that exempts from tax the importation of some of
its raw materials. The ruling is of first impression, which
means the interpretations made by the Commissioner of
Internal Revenue is one without established precedents.
Subsequently, however, the BIR issued another ruling which
in effect would subject to tax such kind of importation. XYZ
Corporation is concerned that said ruling may have a
retroactive effect, which means that all their importations
done before the issuance of the second ruling could be
subject to tax.
a) What are BIR rulings?
b) What is required to make a BIR ruling of first impression
a valid one?
c) Does a BIR ruling have a retroactive effect, considering
the principle that tax exemptions should be interpreted
strictly against the taxpayer?
V.
(10%)
ABC Corporation sold a real property in Malolos,
Bulacan to XYZ Corporation. The property has been
classified as residential and with a zonal valuation of P1,000
per square meter. The capital gains tax was paid based on
the zonal value. The Revenue District Officer (RDO),
however, refused to issue the Certificate Authorizing
Registration for the reason that based on his ocular
inspection the property should have a higher zonal valuation
determined by the Commissioner of Internal Revenue
because the area is already a commercial area.
Accordingly, the RDO wanted to make a recomputation of
the taxes due by using the fair market value appearing in a
nearby bank’s valuation list which is practically double the
existing zonal value. The RDO also wanted to assess a
donor’s tax on the difference between the selling price based
on the zonal value and the fair market value appearing in a
nearby bank’s valuation list.
a) Does the RDO have the authority or discretion to
unilaterally use the fair market value as the basis for
determining the capital gains tax and not the zonal
value as determined by the Commissioner of Internal
Revenue? Reason briefly.
b) Should the difference in the supposed taxable value be
legally subject to donor’s tax? Reason briefly.
VI.
(5%)
Z is a Filipino immigrant living in the United States for
more than 10 years. He is retired and he came back to the
Philippines as a balikbayan. Every time he comes to the
Philippines, he stays here for about a month. He regularly
receives a pension from his former employer in the United
States, amounting to US$1,000 a month. While in the
Philippines, with his pension pay from his former employer,
he purchased three condominium units in Makati which he is
renting out for P15,000 a month each.
a) Does the US$1,000 pension become taxable because
he is now residing in the Philippines? Reason briefly.
b) Is his purchase of the three condominium units subject
to any tax? Reason briefly.
c) Will Z be liable to pay income tax on the P45,000
monthly income? Reason briefly.
VII.
(10%)
Antonia Santos, 30 years old, gainfully employed, is the
sister of Edgardo Santos. She died in an airplane crash.
Edgardo is a lawyer and he negotiated with the airline
company and insurance company and they were able to
agree to a total settlement of P10 Million. This is what
Antonia would have earned as somebody who was gainfully
employed. Edgardo was her only heir.
a) Is the P10 Million subject to estate tax? Reason briefly.
b) Should Edgardo report the P10 Million as his income
being Antonia’s only heir? Reason briefly.
VIII.
(5%)
Nutrition Chippy Corporation gives all its employees
(rank and file, supervisors and managers) one sack of rice
every month valued at P800 per sack. During an audit
investigation made by the Bureau of Internal Revenue (BIR),
the BIR assessed the company for failure to withhold the
corresponding withholding tax on the amount equivalent to
the one sack of rice received by all the employees,
contending that the sack of rice is considered as additional
compensation for the rank and file employees and additional
fringe benefit for the supervisors and managers. Therefore,
the value of the one sack of rice every month should be
considered as part of the compensation of the rank and file
subject to tax. For the supervisors and managers, the
employer should be the one assessed pursuant to Section
33 (a) of the NIRC. Is there a legal basis for the assessment
made by the BIR? Explain your answer.
IX.
(10%)
Weber Realty Company which owns a three-hectare
land in Antipolo entered into a Joint Venture Agreement
(JVA) with Prime Development Company for the
development of said parcel of land. Weber Realty as owner
of the land contributed the land to the Joint Venture and
Prime Development agreed to develop the same into a
residential subdivision and construct residential houses
thereon. They agreed that they would divide the lots
between them.
a) Does the JVA entered into by and between Weber and
Prime create a separate taxable entity? Explain briefly.
b) Are the allocation and distribution of the saleable lots to
Weber and Prime subject to income tax and to
expanded withholding tax? Explain briefly.
c) Is the sale by Weber or Prime of their respective shares
in the saleable lots to third parties subject to income tax
and to expanded withholding tax? Explain briefly.
X.
(10%)
Noel Santos is a very bright computer science
graduate. He was hired by Hewlett Packard. To entice him
to accept the offer for employment, he was offered the
arrangement that part of his compensation would be an
insurance policy with a face value of P20 Million. The
parents of Noel are made the beneficiaries of the insurance
policy.
a) Will the proceeds of the insurance form part of the
income of the parents of Noel and be subject to income
tax? Reason briefly.
b) Can the company deduct from its gross income the
amount of the premium? Reason briefly.
XI.
(5%)
The Congregation of the Mary Immaculate donated a
land and a dormitory building located along España St. in
favor of the Sisters of the Holy Cross, a group of nuns
operating a free clinic and high school teaching basic
spiritual values. Is the donation subject to donor’s tax?
Reason briefly.
XII.
(10%)
Remedios, a resident citizen, died on November 10,
2006. She died leaving three condominium units in Quezon
City valued at P5 Million each. Rodolfo was her only heir.
He reported her death on December 5, 2006 and filed the
estate tax return on March 30, 2007. Because he needed to
sell one unit of the condominium to pay for the estate tax, he
asked the Commissioner of Internal Revenue to give him
one year to pay the estate tax due. The Commissioner
approved the request for extension of time provided that the
estate tax be computed on the basis of the value of the
property at the time of payment of the tax.
a) Does the Commissioner of Internal Revenue have the
power to extend the payment of estate tax? If so, what
are the requirements to allow such extension?
b) Does the condition that the basis of the estate tax will
be the value at the time of the payment have legal
basis? Reason briefly.
XIII.
(5%)
ABC Corporation won a tax refund case for P50 Million.
Upon execution of the judgment and when trying to get the
Tax Credit Certificates (TCC) representing the refund, the
Bureau of Internal Revenue (BIR) refused to issue the TCC
on the basis of the fact that the corporation is under audit by
the BIR and it has a potential tax liability. Is there a valid
justification for the BIR to withhold the issuance of the TCC?
Explain your answer briefly.
NOTHING FOLLOWS.
BAR EXAMINATIONS 2007
MERCANTILE LAW

16 September 2007 8:00 A.M. – 12:00 Noon

INSTRUCTIONS
This questionnaire consists of thirteen (13)
numbers contained in six (6) pages. Read each
question very carefully. Answer 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 immediately succeeding pages
until completed. Do not repeat the question. A
mere “Yes” or “No” answer without any
corresponding discussion will not be given any
credit.
HAND IN YOUR NOTEBOOK WITH THIS
QUESTIONNAIRE.
GOOD LUCK!!!
ADOLFO S. AZCUNA
CHAIRPERSON
2007 BAR EXAMINATIONS COMMITTEE
PLEASE CHECK THE NUMBER OF PAGES IN THIS SET.
WARNING: NOT FOR SALE OR UNAUTHORIZED USE

I.
(10%)
R issued a check for P1M which he used to pay S for
killing his political enemy.
(a) Can the check be considered a negotiable instrument?
(b) Does S have a cause of action against R in case of
dishonor by the drawee bank?
(c) If S negotiated the check to T, who accepted it in good
faith and for value, may R be held secondarily liable by
T?
Reason briefly in (a), (b) and (c).
II.
(10%)
Alex deposited goods for which Billy, a warehouseman,
issued a negotiable warehouse receipt wherein the goods
were deliverable to Alex or order. Alex negotiated the
receipt to Caloy. Thereafter, Dario, a creditor, secured
judgment against Alex and served notice of levy over the
goods on the warehouseman.
(a) To whom should the warehouseman deliver the goods
upon demand?
(b) Would your answer be the same if the warehouseman
issued a non-negotiable warehouse receipt? Reason
briefly.
III.
(5%)
Diana and Piolo are famous personalities in
showbusiness who kept their love affair secret. They use a
special instant messaging service which allows them to see
one another’s typing on their own screen as each letter key
is pressed. When Greg, the controller of the service facility,
found out their identities, he kept a copy of all the messages
Diana and Piolo sent each other and published them. Is
Greg liable for copyright infringement? Reason briefly.
IV.
(10%)
Alfredo took out a policy to insure his commercial
building against fire. The broker for the insurance company
agreed to give a 15-day credit within which to pay the
insurance premium. Upon delivery of the policy on May 15,
2006, Alfredo issued a postdated check payable on May 30,
2006. On May 28, 2006, a fire broke out and destroyed the
building owned by Alfredo.
(a) May Alfredo recover on the insurance policy?
(b) Would your answer in (a) be the same if it was found
that the proximate cause of the fire was an explosion
and that fire was but the immediate cause of loss and
there is no excepted peril under the policy?
(c) If the fire was found to have been caused by Alfredo’s
own negligence, can he still recover on the policy?
Reason briefly in (a), (b) and (c).
V.
(5%)
C contracted D to renovate his commercial building. D
ordered construction materials from E and received delivery
thereof. The following day, C went to F Bank to apply for a
loan to pay for the construction materials. As security for the
loan, C was made to execute a trust receipt. One year later,
after C failed to pay the balance on the loan, F Bank charged
him with violation of the Trust Receipts Law.
(a) What is a Trust Receipt?
(b) Will the case against C prosper? Reason briefly.
VI.
(5%)
Discuss the trust fund doctrine.
VII.
(10%)
In a stockholders’ meeting, S dissented from the
corporate act converting preferred voting shares to
nonvoting
shares. Thereafter, S submitted his certificates of
stock for notation that his shares are dissenting. The next
day, S transferred his shares to T to whom new certificates
were issued. Now, T demands from the corporation the
payment of the value of his shares.
(a) What is the meaning of a stockholder’s appraisal right?
(b) Can T exercise the right of appraisal? Reason briefly.
VIII.
(10%)
Due to growing financial difficulties, Z Bank was unable
to finish construction of its 21-storey building on a prime lot
located in Makati City. Inevitably, the Bangko Sentral
ordered the closure of Z Bank and consequently placed it
under receivership. In a bid to save the bank’s property
investment, the President of Z Bank entered into a financing
agreement with a group of investors for the completion of the
construction of the 21-storey building in exchange for a
tenyear
lease and the exclusive option to purchase the building.
(a) Is the act of the President valid? Why or why not?
(b) Will a suit to enforce the exclusive right of the investors
to purchase the property prosper? Reason briefly.
IX.
(5%)
On December 4, 2003, RED Corporation executed a
real estate mortgage in favor of BLUE Bank. RED
Corporation defaulted in the payment of its loan.
Consequently, on June 4, 2004, BLUE Bank extrajudicially
foreclosed the property. Being the highest bidder in the
auction sale conducted, the Bank was issued a Certificate of
Sale which was registered on August 4, 2004.
Does RED Corporation still have the right to redeem the
property as of September 14, 2007? Reason briefly.
X.
(5%)
Name at least five (5) predicate crimes to money
laundering.
XI.
(10%)
Two vessels figured in a collision along the Straits of
Guimaras resulting in considerable loss of cargo. The
damaged vessels were safely conducted to the Port of Iloilo.
Passenger A failed to file a maritime protest. B, a
nonpassenger
but a shipper who suffered damage to his cargo,
likewise did not file a maritime protest at all.
(a) What is a maritime protest?
(b) Can A and B successfully maintain an action to recover
losses and damages arising from the collision? Reason
briefly.
XII.
(5%)
Seeking to streamline its operations and to bail out its
losing ventures, the stockholders of X Corporation
unanimously adopted a proposal to sell substantially all of
the machineries and equipment used in and about its
manufacturing business and to sink the proceeds of the sale
for the expansion of its cargo transport services.
(a) Would the transaction be covered by the provisions of
the Bulk Sales Law?
(b) How would X Corporation effect a valid sale?
XIII.
(10%)
(a) What are the preferred claims that shall be satisfied first
from the assets of an insolvent corporation?
(b) How shall the remaining non-preferred creditors share
in the estate of the insolvent corporation above?
NOTHING FOLLOWS.
BAR EXAMINATIONS 2007
CRIMINAL LAW

16 September 2007 2:00 P.M. – 5:00 P.M.

INSTRUCTIONS
This questionnaire consists of ten (10) numbers
contained in five (5) pages. Read each question
very carefully. Answer 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 immediately succeeding pages
until completed. Do not repeat the question. A
mere “Yes” or “No” answer without any
corresponding discussion will not be given any
credit.
HAND IN YOUR NOTEBOOK WITH THIS
QUESTIONNAIRE.
GOOD LUCK!!!
ADOLFO S. AZCUNA
CHAIRPERSON
2007 BAR EXAMINATIONS COMMITTEE
PLEASE CHECK THE NUMBER OF PAGES IN THIS SET.
WARNING: NOT FOR SALE OR UNAUTHORIZED USE
I.
(10%)
What are the penalties that may be served
simultaneously?

II.
(10%)
Tiburcio asked Anastacio to join their group for a
“session.” Thinking that it was for a mahjong session,
Anastacio agreed. Upon reaching Tiburcio’s house,
Anastacio discovered that it was actually a shabu session.
At that precise time, the place was raided by the police, and
Anastacio was among those arrested.
What crime can Anastacio be charged with, if any?
Explain your answer.
III.
(10%)
Jervis and Marlon asked their friend, Jonathan, to help
them rob a bank. Jervis and Marlon went inside the bank,
but were unable to get any money from the vault because
the same was protected by a time-delay mechanism. They
contented themselves with the customers’ cellphones and a
total of P5,000 in cash. After they dashed out of the bank
and rushed into the car, Jonathan pulled the car out of the
curb, hitting a pedestrian which resulted in the latter’s death.
What crime or crimes did Jervis, Marlon and Jonathan
commit? Explain your answer.
IV.
(10%)
Macky, a security guard, arrived home late one night
after rendering overtime. He was shocked to see Joy, his
wife, and Ken, his best friend, in the act of having sexual
intercourse. Macky pulled out his service gun and shot and
killed Ken. Macky was charged with murder for the death of
Ken.
The court found that Ken died under exceptional
circumstances and exonerated Macky of murder but
sentenced him to destierro, conformably with Article 247 of
the Revised Penal Code. The court also ordered Macky to
pay indemnity to the heirs of the victim in the amount of
P50,000.
(a) Did the court correctly order Macky to pay indemnity
even though he was exonerated of murder? Explain
your answer.
(b) While serving his sentence, Macky entered the
prohibited area and had a pot session with Ivy (Joy’s
sister). Is Macky entitled to an indeterminate sentence
in case he is found guilty of use of prohibited
substances? Explain your answer.
V.
(10%)
(a) Distinguish between an accomplice and a conspirator.
(b) What are the three (3) classes of offenders in the crime
of qualified seduction? Give an example of each.
VI.
(10%)
What are the different acts of inciting to sedition?
VII.
(10%)
Eddie brought his son Randy to a local faithhealer
known as “Mother Himala.” He was diagnosed by the
faithhealer as being possessed by an evil spirit. Eddie
thereupon authorized the conduct of a “treatment” calculated
to drive the “spirit” from the boy’s body. Unfortunately, the
procedure conducted resulted in the boy’s death.
The faithhealer and three others who were part of the
healing ritual were charged with murder and convicted by the
lower court. If you were the appellate court Justice, would
you sustain the conviction upon appeal? Explain your
answer.
VIII.
(10%)
Fe is the manager of a rice mill in Bulacan. In order to
support a gambling debt, Fe made it appear that the rice
mill was earning less than it actually was by writing in a
“talaan” or ledger a figure lower than what was collected
and paid by their customers. Fe then pocketed the
difference. What crime/s did Fe commit, if any? Explain
your answer.
IX.
(10%)
During a concert of Gary V., and in order to prevent the
crowd from rushing to the stage, Rafael Padilla (a security
guard) pointed his gun at the onrush of people. When the
crowd still pushed forward, Rafael fired his gun into the air to
scare them off. However, the bullet hit one of the metal roof
supports, ricocheted and then hit one of the stage crew
members, causing injuries which resulted in the latter’s
confinement in a hospital for twelve days.
What crime/s did Rafael commit? Explain your answer.
X.
(10%)
Pinky was a lessee of a market stall owned by
Giovanni. When Pinky refused to pay her rental, Giovanni
nailed some wooden barricades on one of the sides of the
market stall and posted this warning: “We have closed this
portion of the door. Do not open it or else something may
happen to you.”
What crime/s did Giovanni commit, if any? Explain your
answer.
NOTHING FOLLOWS.
BAR EXAMINATIONS 2007
REMEDIAL LAW

23 September 2007 8:00 A.M. – 12:00 Noon

INSTRUCTIONS
This questionnaire consists of ten (10) numbers
contained in six (6) pages. Read each question
very carefully. Answer 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 immediately succeeding pages
until completed. Do not repeat the question. A
mere “Yes” or “No” answer without any
corresponding discussion will not be given any
credit.
HAND IN YOUR NOTEBOOK WITH THIS
QUESTIONNAIRE.
GOOD LUCK!!!
ADOLFO S. AZCUNA
CHAIRPERSON
2007 BAR EXAMINATIONS COMMITTEE
PLEASE CHECK THE NUMBER OF PAGES IN THIS SET.
WARNING: NOT FOR SALE OR UNAUTHORIZED USE

I.
(Total 10%)
(a) What are the rules on the recognition and enforcement
of foreign judgments in our courts? (6%)
(b) Can a foreign arbitral award be enforced in the
Philippines under those rules? Explain briefly. (2%)
(c) How about a global injunction issued by a foreign court
to prevent dissipation of funds against a defendant
therein who has assets in the Philippines? Explain
briefly. (2%)
II.
(Total 10%)
True or False. If the answer is false, explain your
answer briefly.
(a) The surviving parties rule bars Maria from testifying for
the claimant as to what the deceased Jose had said to
her, in a claim filed by Pedro against the estate of Jose.
(3%)
(b) A defendant who has been declared in default can avail
of a petition for relief from the judgment subsequently
rendered in the case. (3%)
(c) A motion is a pleading. (2%)
(d) A counterclaim is a pleading. (2%)
III.
(Total 10%)
(a) What is the hearsay rule? (5%)
(b) In relation to the hearsay rule, what do the following
rules of evidence have in common? (5%)
(1) The rule on statements that are part of the res
gestae;
(2) The rule on dying declarations;
(3) The rule on admissions against interest.
IV.
(10%)
Husband H files a petition for declaration of nullity of
marriage before the RTC of Pasig City. Wife W files a
petition for habeas corpus before the RTC of Pasay City,
praying for custody over their minor child. H files a motion to
dismiss the wife’s petition on the ground of the pendency of
the other case. Rule.
V.
(Total 10%)
(a) Distinguish the effects of the filing of a demurrer to the
evidence in a criminal case and its filing in a civil case.
(5%)
(b) What is reverse trial and when may it be resorted to?
Explain briefly. (5%)
VI.
(Total 10%)
(a) On his way home, a member of the Caloocan City
police force witnesses a bus robbery in Pasay City and
effects the arrest of the suspect. Can he bring the
suspect to Caloocan City for booking since that is
where his station is? Explain briefly. (5%)
(b) In the course of serving a search warrant, the police
finds an unlicensed firearm. Can the police take the
firearm even if it is not covered by the search warrant?
If the warrant is subsequently quashed, is the police
required to return the firearm? Explain briefly. (5%)
VII.
(Total 10%)
(a) B files a petition for cancellation of the birth certificate of
her daughter R on the ground of falsified material
entries therein made by B’s husband as the informant.
The RTC sets the case for hearing and directs the
publication of the order once a week for three
consecutive weeks in a newspaper of general
circulation. Summons was served on the Civil Registrar
but there was no appearance during the hearing. The
RTC granted the petition. R filed a petition for
annulment of judgment before the Court of Appeals,
saying that she was not notified of the petition and
hence, the decision was issued in violation of due
process. B opposed saying that the publication of the
court order was sufficient compliance with due process.
Rule. (5%)
(b) G files a complaint for recovery of possession and
damages against F. In the course of the trial, G marked
his evidence but his counsel failed to file a formal offer
of evidence. F then presented in evidence tax
declarations in the name of his father to establish that
his father is a co-owner of the property. The court ruled
in favor of F, saying that G failed to prove sole
ownership of the property in the face of F’s evidence.
Was the court correct? Explain briefly. (5%)
VIII.
(Total 10%)
(a) X files an unlawful detainer case against Y before the
appropriate Metropolitan Trial Court. In his answer, Y
avers as a special and affirmative defense that he is a
tenant of X’s deceased father in whose name the
property remains registered. What should the court do?
Explain briefly. (5%)
(b) The heirs of H agree among themselves that they will
honor the division of H’s estate as indicated in her Last
Will and Testament. To avoid the expense of going to
court in a Petition for Probate of the Will, can they
instead execute an Extrajudicial Settlement Agreement
among themselves? Explain briefly. (5%)
IX.
(10%)
L was charged with illegal possession of shabu before
the RTC. Although bail was allowable under his indictment,
he could not afford to post bail, and so he remained in
detention at the City Jail. For various reasons ranging from
the promotion of the Presiding Judge, to the absence of the
trial prosecutor, and to the lack of notice to the City Jail
Warden, the arraignment of L was postponed nineteen times
over a period of two years. Twice during that period, L’s
counsel filed motions to dismiss, invoking the right of the
accused to a speedy trial. Both motions were denied by the
RTC. Can L file a petition for mandamus? Reason briefly.
X.
(Total 10%)
(a) RC filed a complaint for annulment of the foreclosure
sale against Bank V. In its answer, Bank V set up a
counterclaim for actual damages and litigation
expenses. RC filed a motion to dismiss the
counterclaim on the ground that Bank V’s Answer with
Counterclaim was not accompanied by a certification
against forum shopping. Rule. (5%)
(b) A files a case against B. While awaiting decision on
the case, A goes to the United States to work. Upon
her return to the Philippines, seven years later, A
discovers that a decision was rendered by the court in
her favor a few months after she had left. Can A file a
motion for execution of the judgment? Reason briefly.
(5%)
NOTHING FOLLOWS.
BAR EXAMINATIONS 2007
LEGAL ETHICS and PRACTICAL EXERCISES

23 September 2007 2:00 P.M. – 5:00 P.M.

INSTRUCTIONS
This questionnaire consists of ten (10) numbers
contained in five (5) pages. Read each question
very carefully. Answer 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 immediately succeeding pages
until completed. Do not repeat the question. A
mere “Yes” or “No” answer without any
corresponding discussion will not be given any
credit.
HAND IN YOUR NOTEBOOK WITH THIS
QUESTIONNAIRE.
GOOD LUCK!!!
ADOLFO S. AZCUNA
CHAIRPERSON
2007 BAR EXAMINATIONS COMMITTEE
PLEASE CHECK THE NUMBER OF PAGES IN THIS SET.
WARNING: NOT FOR SALE OR UNAUTHORIZED USE
I.
(10%)
What are the duties of an attorney?

II.
(10%)
C engaged the services of attorney D concerning
various mortgage contracts entered into by her husband
from whom she is separated, fearful that her real estate
properties will be foreclosed and of impending suits for sums
of money against her. Attorney D advised C to give him her
land titles covering her lots so he could sell them to enable
her to pay her creditors. He then persuaded her to execute
deeds of sale in his favor without any monetary or valuable
consideration, to which C agreed on condition that he would
sell the lots and from the proceeds pay her creditors. Later
on, C came to know that attorney D did not sell her lots but
instead paid her creditors with his own funds and had her
land titles registered in his name.
Did attorney D violate the Code of Professional
Responsibility? Explain.
III.
(10%)
Attorney M accepted a civil case for the recovery of title
and possession of land in behalf of N. Subsequently, after
the Regional Trial Court had issued a decision adverse to N,
the latter filed an administrative case against attorney M for
disbarment. He alleged that attorney M caused the adverse
ruling against him; that attorney M did not file an opposition
to the Demurrer to Evidence filed in the case, neither did he
appear at the formal hearing on the demurrer, leading the
trial court to assume that plaintiff’s counsel (attorney M)
appeared convinced of the validity of the demurrer filed; that
attorney M did not even file a motion for reconsideration,
causing the order to become final and executory; and that
even prior to the above events and in view of attorney M’s
apparent loss of interest in the case, he verbally requested
attorney M to withdraw, but attorney M refused.
Complainant N further alleged that attorney M abused his
client’s trust and confidence and violated his oath of office in
failing to defend his client’s cause to the very end.
Attorney M replied that N did not give him his full
cooperation; that the voluminous records turned over to him
were in disarray, and that when he appeared for N, he had
only half of the information and background of the case; that
he was assured by N’s friends that they had approached the
judge; that they requested him (M) to prepare a motion for
reconsideration which he did and gave to them; however,
these friends did not return the copy of the motion.
Will the administrative case prosper? Give reasons for
your answer.
IV.
(10%)
When is recovery of attorney’s fees based on quantum
meruit allowed?
V.
(10%)
During the hearing of an election protest filed by his
brother, Judge E sat in the area reserved for the public, not
beside his brother’s lawyer. Judge E’s brother won the
election protest. Y, the defeated candidate for mayor, filed
an administrative case against Judge E for employing
influence and pressure on the judge who heard and decided
the election protest.
Judge E explained that the main reasons why he was
there in the courtroom were because he wanted to observe
how election protests are conducted as he has never
conducted one and because he wanted to give moral
support to his brother.
Did Judge E commit an act of impropriety as a member
of the judiciary? Explain.
VI.
(Total 10%)
(a) A and B are accused of Estafa by C, the wife of
Regional Trial Court Judge D. Judge D testified as a
witness for the prosecution in the Estafa case. Did
Judge D commit an act of impropriety? Give reasons
for your answer. (5%)
(b) What qualities should an ideal judge possess under the
New Code of Judicial Conduct for the Philippine
Judiciary? (5%)
VII.
(Total 10%)
(a) What evidence of identity does the 2004 Rules on
Notarial Practice require before a notary public can
officially affix his notarial seal on and sign a document
presented by an individual whom the notary public does
not personally know? (5%)
(b) When can Judges of the Municipal Trial Courts (MTC)
and Municipal Circuit Trial Courts (MCTC) perform the
function of notaries public ex officio, even if the
notarization of the documents are not in connection with
the exercise of their official functions and duties? (5%)
VIII.
(10%)
Prepare a clause stipulating a right of first refusal to be
embodied in a contract of lease, in case of sale of the
property leased.
IX.
(10%)
Prepare an affidavit of merits to be attached to a
Petition for Relief.
X.
(10%)
Prepare an arbitration clause to be included in a
contract.
NOTHING FOLLOWS.

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