Republic of the Philippines RAMON MAGSAYSAY TECHNOLOGICAL UNIVERSITY Iba, Zambales COLLEGE OF ACCOUNTANCY AND BUSINESS ADMINISTRATION Qualifying

Examination for Incoming BS Accountancy/Accounting Technology -3 May 14, 2012 RET CENTER Iba Campus

BUSINESS LAWS
DIRECTION: From the given options, select the letter that corresponds to the BEST answer. BLACKEN your option on the answer sheet provided. DO NOT DETACH ANY OF THE PAGES OF THIS TEST QUESTIONNAIRE. 1. It is a juridical necessity to give, to do, or not to do. A. Obligation B. Contract

C. Quasi-contract D. Law

2. The possessor of a right; He in whose favor the obligation is constituted. A. Active subject C. Obligor B. Passive subject D. Vinculum 3. He who has the duty of giving, doing, or not doing A. Obligee B. Obligor

C. Prestation D. Juridical tie

4. The duty to refund an over change of money because of solutio indebiti, is an obligation arising from A. Law C. Quasi-contracts B. Contracts D. Quasi-delicts 5. Which of the following is an example of a determinate thing? A. a car C. this pencil B. a yellow calculator D. a 2001 BMW automobile 6. Which of the following is NOT a legal fruit? A. natural fruit B. civil fruit

C. avocado fruit D. industrial fruit

7. That kind of delivery whereby a possessor of a thing not as an owner, becomes the possessor as owner A. Traditio symbolica C. traditio longa manu B. Traditio brevi manu D. traditio constitutum possessorium 8. Which of the following is an example of traditio brevi manu? A. When the keys of bodega are given B. Pointing out the car, which is the object of the sale C. When a tenant already in possession buys the house he is renting D. The execution of a public instrument selling land 9. The following are the requisites of an obligation, EXCEPT A. Passive subject B. Active subject 10. Obligations may arise from any of the following, EXCEPT A. contracts B. quasi-contracts

C. Efficient Cause D. Demand

C. law D. prestation

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Ramon Magsaysay Technological University Iba, Zambales Qualifying Examination for Incoming BS Accountancy/Accounting Technology -3 11. It is the voluntary administration of the property of another without his consent A. Negotiorum gestio B. Solutio indebiti C. Quasi-delict 12. It is a wrong committed without any pre-existing relations between the parties A. Natural obligation C. Quasi-contract B. Quasi-delict D. Crime 13. The creditor has a right that is enforceable against a definite passive subject is known as: A. personal right B. real right C. natural right

D. Contract

D. civil right

14. It is a thing that is particularly designated or physically segregated from all others of the same class A. Generic thing C. Determinate thing B. Indeterminate thing D. Real thing 15. This refers to delay on the part of the creditor A. mora solvendi ex re B. compensatio morae

C. mora solvendi ex personae D. mora accipiendi

16. D is obliged to give C a specific car if C passes the CPA Licensure Examination. Ds obligation is an example of A. a pure obligation C. an obligation with a resolutory condition B. an obligation with a suspensive condition D. an obligation with a period 17. One of the following obligations is NOT immediately demandable A. pure obligation C. obligation with an in diem period B. obligation with a resolutory condition D. obligation with an ex die period 18. Which of the following is a void obligation? A. D is obliged to give C P5,000.00 if C does not go to the moon. B. D is obliged to give C P5,000 if D goes to Baguio. C. D is obliged to give C P5,000 if C goes to Baguio. D. D is obliged to give C if D wins first prize in the sweepstakes on a ticket that he had already purchased. 19. Whenever a period is designated in an obligation, the said period shall be presumed to have been established for the benefit of: A. the debtor C. both the debtor and the creditor B. the creditor D. neither of the parties 20. A, B, C and D are obliged to give V, W, X, Y, and Z P20,000 A. V may collect from A P20,000 C. V may collect from A P1,000 B. V may collect from A P5,000 D. V may collect from A P4,000 21. A, B, C, and D, joint debtors, are obliged to give V, W, X, Y, and Z, solidary creditors, P20,000 A. V may collect from B P20,000 C. V may collect from B P5,000 B. V may collect from B P4,000 D. V may collect from B P1,000 22. A, B, C, and D, solidary debtors, are obliged to give V, W, X, Y, and Z, joint creditors, P20,000 A. V may collect from C P20,000 C. V may collect from C P5,000 B. V may collect from C P4,000 D. V may collect from C P1,000 23. A, B, C, and D, solidary debtors, are obliged to give V, W, X, Y, and Z, solidary creditors, P20,000 A. V may collect from D P20,000 C. V may collect from D P5,000 B. V may collect from D P4,000 D. V may collect from D P1,000

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Ramon Magsaysay Technological University Iba, Zambales Qualifying Examination for Incoming BS Accountancy/Accounting Technology -3 24. The following obligations are divisible, EXCEPT an obligation: A. to give definite things. B. which has for its object the execution of a certain number of days of work. C. which has for its object the accomplishment of work by metrical units. D. which by its nature is susceptible of partial performance. 25. D obtained from ABC Bank a loan of P12,000,000 payable at the end of 10 years. Before maturity, an extraordinary inflation supervened causing the value of the debt to fall to P4,000,000 on the date of maturity. On due date, D must pay ABC Bank: A. P12,000,000 B. P4,000,000 C. P36,000,000 D. P3,000,000 26. B borrowed from XYZ Bank P2,000,000 payable at the end of 5 years. Before maturity, an extraordinary deflation supervened causing the value of the debt to rise to P5,000,000 on the date of maturity. On due date, B must pay XYZ Bank: A. P2,000,000 B. P5,000,000 C. P800,000 D. P20,000,000 27. The money or currency which the debtor may compel the creditor to accept in payment of a debt, whether public or private is known as: A. notes payable to order C. bill of exchange B. legal tender D. mercantile document 28. M owes N P10,000. The obligation is evidenced by a promissory note. Subsequently, N assigned the note to A, A to B, B to C, and C back to M. The obligation of M is extinguished by: A. compensation C. condonation B. confusion D. The obligation is not extinguished because there was no payment. 29. D borrowed P50,000 from C. Subsequently, D proposed to C that T would assume his (Ds) debt. C accepted the proposal of D. This substitution of debtor is known as A. expromision B. delegacion C. tradition D. dacion en pago 30. On July 1, 2011, D obliged himself to give C P50,000 if C will marry X on or before December 31, 2011. The condition of the obligation is a: A. positive condition C. joint condition B. negative condition D. impossible condition 31. On July 1, 2011, D obliged himself to give C P50,000 if C will not marry X on or before December 31, 2011. The condition of the obligation is a: A. positive condition C. divisible condition B. negative condition D. impossible condition 32. An obligation where various prestations are due but the performance of all of them is required in order to extinguish the obligation is known as: A. alternative obligation C. conjunctive obligation B. facultative obligation D. simple obligation 33. One peso, P5.00, and P10.00 coins are legal tender up to what amount? A. P100.00 B. P500.00 C. P1,000.00 34. One centavo, P0.05, P0.10, and P0.25 centavo coins are legal tender up to what amount? A. P100.00 B. P500.00 C. P1,000.00

D. Any amount

D. Any amount

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Ramon Magsaysay Technological University Iba, Zambales Qualifying Examination for Incoming BS Accountancy/Accounting Technology -3 35. All bills are legal tender up to what amount? A. P5,000.00 B. P10,000.00

C. P100,000.00

D. Any amount

36. D is obliged to give P50,000 to C if C tops the CPA Examination and a specific car if C can reduce the taxes to be paid by D in Ds tax return by unlawful means. A. Both conditions must be fulfilled so that C may demand the payment of P50,000 and the delivery of the specific lot. B. C may demand the payment of P50,000 if he tops the CPA Examination. C. C may demand the delivery of the specific lot if can reduce through unlawful means the taxes to be paid by D. D. C may not demand the payment of P50,000 and the delivery of the specific lot even if he fulfils both conditions since the conditions are indivisible. Use the following information to answer Questions 37-38 D appointed C as his agent to purchase a parcel of land belonging to X. D promised to give a commission of P10,000 to C if C can present to D the deed of absolute sale signed by X in favour of D on or before December 31, 2012. 37. The condition of the obligation is: A. negative B. positive

C. impossible

D. no condition exists

38. Which of the following statements is NOT correct? A. Ds obligation is extinguished if it is already January 1, 2013 and C has not yet presented to D the deed of absolute sale duly signed by X. B. Ds obligation is extinguished on December 5, 2012 if X dies on such date without his having signed the deed of absolute sale. C. Ds obligation is demandable if C presents to D on or before December 31, 2012 the deed of absolute sale. D. Ds obligation is demandable if it is already January 1, 2012 and C has not yet presented to D the deed of absolute sale duly signed by X. 39. Darwin is obliged to deliver 20 sacks of Dinorado rice to Charles. This parties agreed that should Darwin fail to perform his obligation as stipulated, Darwin will pay a penalty of P10,000. On due date, Darwin made a delivery of 20 sacks of rice but each sack contained a mixture of Dinorado rice and another variety of lower quality. Charles discovered the fraud. A. Charles may demand the payment of the stipulated penalty only. B. Charles may demand the payment of the stipulated penalty as well as damages although there was no stipulation on the latter. C. Charles may demand the payment of damages in addition to the stipulated penalty only if there was a stipulation with respect to damages. D. Charles may demand the payment of damages in addition to the stipulated penalty only if Darwin refuses to pay the penalty. 40. Donna received a check for P50,000 drawn against RMTU Bank in payment of a debt due him. Upon cashing the check, Donna requested the latter to give him 100 pieces of P500.00 bill and to place the money in an envelope. As he was in a hurry, Donna left the bank without bothering to count the cash. Shortly after reaching her house, Donna counted the money in the envelope and discovered that it contained 10 pieces of P1,000 bill or an excess of P50,000. A. Donna does not have the obligation to return the excess of P50,000 because it was not her fault that the teller would pay her an amount in excess of what was stated in the check. B. Donna does not have the obligation to return the excess of P50,000 because the bank will not likely know who among the bank clients received such excess amount. C. Donna must return the excess of P50,000 because she has the obligation to do so under the principle of solutio indebiti. D. Donna must return the excess of P50,000 because she has the obligation to do so under the principle of negotiorum gestio.

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Ramon Magsaysay Technological University Iba, Zambales Qualifying Examination for Incoming BS Accountancy/Accounting Technology -3 41. The obligation is not extinguished by reason of the loss of the thing through a fortuitous event in the following cases, EXCEPT: A. When the nature of the obligation requires the assumption of risks. B. When the debtor has incurred in delay. C. When the obligation is to give a determinate thing and the parties have not stipulated whether or not there shall be liability in case of fortuitous event. D. When the debtor has promised to deliver the same thing to two or more persons who do not have the same interest. 42. Dinamulag owes Carabao the following debts: P30,000 due on July 1 P50,000 due on July 6 P20,000 due on July 15, and P20,000 due on July 25 If today is July 22, 2012, and Dinamulag gives P20,000 to Carabao but neither he nor Carabao indicates the debt to which the payment shall apply, the payment shall be applied to: A. The debt due on July 15 or July 25 because the payment is of the same amount as the said debts. B. To any of the debts due on July 1 or July 6 in partial payment or to the debt due on July 15 in full payment, since the said debts have already become due as of the time the payment is made. C. To the debts due on July 1, July 6, and July 15 proportionately at P6,000, P10,000, and P4,000 respectively. D. To all the debts proportionately in the ratio of 3:5:2:2 43. Donita obtained a loan of P300,000 from Carmina with Gavanna as guarantor. Carmina on the other hand, owes Gavanna P300,000. Both debts are due. I. If Carmina sues Donita, Donita may successfully put up the defense of compensation because Carmina owes Gavanna, Donitas guarantor II. If Carmina sues Donita, Donita may not put up the defense of compensation as to what Carmina owes Gavanna. III. If Donita cannot pay, and Carmina sues Gavanna, Gavanna can put up compensation because Carmina owes her P300,000 IV. Both Donitas debt to Carmina, and Carminas debt to Gavanna are extinguished by legal compensation. In your evaluation of the foregoing statements: A. I and II are true. B. II and IV are true. C. I and IV are true. D. II and III are true. 44. Which of the following is an obligation with a period with a suspensive effect? A. I will give you P100,000 per month as a support beginning January 1, 2014. B. I will give you P100,000 per month as support until you finish your law course. C. I will give you P100,000 per month for your medicines if your physical examination says you are sick. D. I will give you P100,000 per month as support until you are able to find work. 45. When the debtor binds himself to pay as soon as he has the means, the obligation is: A. void because payment is depended upon a condition that is potestative on his part. B. valid, but the creditor must got to and ask the court to fix the period for the payment of the obligation. C. void because there is no meeting of minds between the parties as to an essential element thereof. D. suspended until the debtor has the means to pay his debt. 46. A meeting of minds between two persons whereby one binds himself with respect to the other to give something or to render some service is known as: A. obligation B. consent C. contract D. stipulation

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Ramon Magsaysay Technological University Iba, Zambales Qualifying Examination for Incoming BS Accountancy/Accounting Technology -3 47. Danica borrowed P1,000,000 from Chanda. The obligation is secured by a mortgage on Danicas land and building. Chanda registered the mortgage with the Register of Deeds. Thereafter, Danica sold the land and building to Liza who was not personally aware of the existence of the mortgage at the time of sale since only the photocopy of the transfer certificate of title which did not yet contain the annotation of the mortgage was shown to him. It was only when she went to the Register of Deeds to register the sale of the land and building to him that he learned of the mortgage. A. Charice can collect from Danica and Danica cannot pay, Chanda can foreclose the mortgage although the land and building are now owned by Liza. B. Charice can collect from Danica, but if Danica cannot pay, Chanda cannot foreclose the mortgage because Liza was not aware of the existence of the mortgage at the time she bought the land and building. C. Charice cannot collect from Danica. She can only go after the mortgage which was given as security. D. Charice cannot foreclose the mortgage because Liza was not a party thereto. 48. On July 1, 2012, Serrano offered to sell his only Mercedes Benz car for P1,400,000 to Benitez who was interested in buying the same. In his letter to Benitez, Serrano stated that he was giving Benitez up to July 31, 2012 to make up his mind whether to buy the car or not. On July 25, 2012, Serrano personally went to Benitez to inform him that he was no longer willing to sell the car unless the price was increased to P1,800,000 because another buyer was interested in buying the car for the said amount of P1,800,000. A. Benitez may compel Serrano to sell to him the car for P1,400,000 B. Serrano may validly withdraw his offer to Benitez because the option was not founded upon a consideration. C. Serrano may not withdraw his offer until the lapse of the option period that he gave to Benitez. D. The increase in price made by Serrano was not valid because it was made within the option period. 49. Rockman and Company published an advertisement in the newspapers which reads as follows INVITATION TO BID: Construction of the companys warehouse located at 123 Luzon Street, Sta. Quiteria, Quezon City. The advertisement also included the specifications of the warehouse to be constructed. Three companies submitted their bids: ABC Company, with a bid price of P4,000,000; DEF Company, P4,750,000; and GHI Company, P5,000,000. After considering the financial capability, reputation, and experience of the bidders, the kind and quality of materials to be used and other factors, Rockman and Company accepted the bid of DEF Company. ABC Company, the lowest bidder, now questions the award made by Rockman and Company to DEF Company which submitted a higher bid. A. The award to DEF Company is voidable because it was only the second lowest bidder. B. ABC Company should be the winning bidder having submitted the lowest bid. C. The award to DEF Company is valid because Rockman and Company was not bound to accept the lowest bidder. D. The award to DEF Company is void by reason of Rockmans violation of the terms of the invitation to bid. 50. Which of the following contracts is valid because it is NOT vitiated by intimidation, or violation? A. A contract of sale which was signed by a party because his arm was being twisted by a third person. B. A contract of sale which was entered into because the other party was pointing a gun at his wife. C. A contract where a party was compelled to assign his property to the other party to pay a just debt because the latter threatened to sue him in court if he does not pay his debt. D. A contract of donation of a parcel of land which a party signed because the other party threatened to burn the house. 51. Which of the following obligations is void? A. D to give C P50,000 if C does not rut 100 miles without stopping. B. D to give C P50,000 when D has the means. C. D to give C P50,000 if D buys a brand-new car. D. D to give C P50,000 if C runs for barangay chairman next year. 52. One of the following is not incapable of giving his consent A. Insane persons B. Unemancipated minors

C. Deaf-mutes who know how to read D. Deaf-mutes who do not know how to write

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Ramon Magsaysay Technological University Iba, Zambales Qualifying Examination for Incoming BS Accountancy/Accounting Technology -3 53. Contracts entered into in a state of drunkenness or during hypnotic spell are A. valid B. voidable C. rescissible 54. It involves the employment of serious or irresistible force to obtain consent A. Intimidation B. Threat C. Violence 55. Aside from fraud and undue influence, the following are the vices of consent, EXCEPT A. violence B. intimidation C. mistake

D. void

D. Moral coercion D. dealers risk

56. Fraud exists in the following cases, EXCEPT A. When through the insidious words or machinations of one of the contracting parties, the other is induced to enter into a contract which, without them, he would not have agreed to. B. When there is a failure to disclose facts, when there is a duty to reveal them, as when the parties are bound by confidential relations. C. When there is an expression of an opinion by an expert which turned out to be wrong, and the other party relied upon such expert knowledge. D. When the misrepresentation refers to the usual exaggerations in trade, and the other party had an opportunity to know the facts. 57. Which of the following does NOT pertain to a relatively simulated contract? A. The parties conceal their real agreement. B. The parties are bound by their real agreement provided it does not prejudice third persons. C. The parties are bound by their real agreement provided it is not contrary to law, morals, third persons, public order, or public safety. D. The parties do not intend to be bound at all. 58. Which of the following is NOT a requisite of the object of a contract? A. It must be within the commerce of man. B. If it is a right, it must be intransmissible. C. It must not be contrary to law, morals, good customs, public order or public policy. D. It must be determinate as to its kind or capable of being made determinate without the need of the parties entering into a new agreement. 59. Sheverett and Bernadette entered into a contract whereby Sheverett sold his one-year production of eggs in his poultry farm to B for P50,000 which amount Bernadette immediately gave in cash to Sheverett. The contract between Sheverett and Bernadette is A. void because the object was not existing at the time of execution of the contract. B. valid because future things may be the object of contracts. C. rescissible because Bernadette will likely suffer damage if the eggs do not come into existence. D. unenforceable because the contract was not in writing. 60. The following are the requisites of a rescissible payment, EXCEPT A. the debt is already due C. the debtor pays the debt B. the debtor is insolvent D. the payment is not yet due --- END OF EXAMINATION ---

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