SUPERNOVA-RFBT

b. II only

Consider the following

I - No-par value shares may not be issued for a price lower than issued price.
II - Only par value shares may be issued at a price higher than P5.00 per share.
III - Par value share may be issued at a price lower than P5.00 per share

Which is/are false?

a. I and II
b. II only
c. II and II
d. III only

b. True, false

A has two creditors, B and C. B is a mortgage creditor for P20,000, and C is an ordinary creditor
for P10,000. C paid A's debt of P20,000 to B.

Statement I - If C's payment is with A's knowledge, C will be subrogated in the rights of B.

Statement II - If C's payment is without A's knowledge, C will not be subrogated in the rights of B

a. True, true
b. True, false
c. False, true
d. False, false

a. The fair value of the shares of stock as of the day prior to the date on which the vote was taken, inclusive of any appreciation or depreciation in anticipation of such action, shall be made the basis for payment upon surrender thereof to the corporation.

Which of the following statements relative to appraisal right is false?

a. The fair value of the shares of stock as of the day prior to the date on which the vote was taken, inclusive of any appreciation or depreciation in anticipation of such action, shall be made the basis for payment upon surrender thereof to the corporation.

b. The parties are given sixty (60) days from the date the proposed corporate action was voted upon to arrive at the fair value of the dissenting shares.

c. In the event they cannot agree on the said fair value, it shall be determined by three (3) disinterested persons (one to be named by the stockholder, another by the corporation and the third by the two thus chosen.)

d. None of the foregoing

b. Yes even if not stipulated

In case of legal pledge, if the thing held in pledged by operation of law is sold by the creditor in public auction resulting to deficiency, may there be recovery of deficiency by the creditor?

a. No even if stipulated because any stipulation for recovery of deficiency in of pledge is void.

b. Yes even if not stipulated

c. Yes but it must be stipulated by the contracting parties

d. No because it is pledged by operation of law.

b. A term in a contract which provides that the contract will terminate on the happening of a particular event.

1. Which of the following statements is the best description of a ‘condition subsequent’?

a. A term in a contract, the consequences of breach of which cannot be determined until after the breach has occurred and the seriousness of the effects of the breach

can be ascertained. - condition

b. A term in a contract which provides that the contract will terminate on the happening of a particular event.

c. A term which must be satisfied before a contract can come into existence. – condition precedent

d. A term in a contract not essential to the main purpose of the contract, non- performance of which will not entitle the plaintiff to rescind the contract.

a. Supervening loss - An unanticipated event outside the control of the contracting parties

Two parties had an agreement to buy and sell a thing. Before delivery but after the agreement, the thing was lost due to fortuitous event making it impossible for
the performance of the contract of sale. What do you call this loss? (non-verbatim)

a. Supervening loss
b. Antecedent loss
c. Prevenient loss
d. Impossible loss

b. M and X only

M made a promissory note payable to P or bearer. P specially indorsed the note to A. A also specially indorsed it to B. X stole the note from B and delivered it to C without any indorsement. Who may be held liable to C?

a. X only
b. M and X only
c. M, P, A, and X only
d. M, P, A, B and X

b. X and A only

M made a promissory note payable to P's order. X stole the note and forged P's signature as indorser to A. A indorsed the note to B as follows: "Pay to B sans recourse, (Sgd.)A." Who among the parties shall be liable to B?

a. X, M and P only
b. X and A only
c. X and M only
d. X only

c. It may be attended by means of proxy.

Which of the following statements relative to corporate stockholders or members meetings is true?

a. It is always held on any day of April each year.
b. It can be conducted anywhere in the Philippines.
c. It may be attended by means of proxy.
d. It cannot be called on a special basis.

b. Only the second statement is correct.

Consider the following:

Statement I - In all cases, an industrial partner cannot engage in business for himself.

Statement II - A capitalist partner may prohibit an industrial partner from engaging in the same kind of business as the partnership.

a. Only the first statement is correct.
b. Only the second statement is correct.
c. Both statements are correct.
d. Both statements are incorrect.

a. Filling of vacancy in the board

A non-voting preferred stock cannot vote in:

a. Filling of vacancy in the board
b. Amendment of articles of incorporation
c. Increase or decrease in capital stock
d. Dissolution of the corporation

d. It was not extinguished.

A wrote a check to B. B used the said check to pay his obligation to C. C did not encash it for several years. Eventually, the bank went bankrupt and A died. How
is the obligation of B extinguished?

a. Prescription
b. Impossibility of performance
c. Carelessness
d. It was not extinguished.

b. Ownership of the laptop was acquired by C and the contract of loan is fully extinguished by dacion en pago.

D borrowed P3,000 from C. In order to secure the fulfillment of the contract of loan. D pledged and delivered his specific laptop to C as collateral for his obligation. At the maturity date of the loan, D defaulted in the payment of the
obligation. At the maturity date of the loan, D and C voluntarily agreed that the said laptop shall be used in full settlement of the secured loan. Which is correct?

a. The said agreement is pactum commissorium and therefore null and void.

b. Ownership of the laptop was acquired by C and the contract of loan is fully extinguished by dacion en pago.

c. Ownership of the laptop was acquired by C by reason of pactum commissorium.

d. The contract of loan is extinguished only if the value of the laptop is equal to the amount of the loan.

b. File an action for annulment of contract because A is guilty of causal fraud which vitiated Sun Life's consent.

A applied for a life insurance with Sun Life Company. During the medical examination, A sent his healthy twin brother. Based on the result of the medical examination, Sun Life Company approved the life insurance applied by A. What is the remedy available to Sun Life Company upon discovery of the substitution?

a. File an action for damages because A is guilty of incidental fraud or dolo incidente.

b. File an action for annulment of contract because A is guilty of causal fraud which vitiated Sun Life's consent.

c. File an action for declaration of nullity because of the want of consent.

d. File an action for rescission of contract because it is intended to defraud

d. If the goods are rejected by the buyer, and the carrier or other bailee continues in possession of them, even if the seller has refused to receive them back.

In which of the following instances are the goods still in transit which allow the unpaid seller to exercise his right of stoppage in transitu in case of insolvency of the buyer?

a. If the buyer obtains delivery of the goods before arrival at the appointed destination.

b. If the carrier or other bailee acknowledges to the buyer or his agent, that he is holding the goods in his behalf, after arrival of the goods at their appointed destination.

c. If the carrier or other bailee wrongfully refuses to deliver the goods to buyer or his agent.

d. If the goods are rejected by the buyer, and the carrier or other bailee continues in possession of them, even if the seller has refused to receive them back.

c. 1 year from the date of contract of sale or from the discovery of burden.

What is the prescriptive period of the right to file an action based on breach of warranty of sale of immovable against non-apparent and unregistered burden or servitude?

a. 40 days from the date of contract of sale or from the discovery of burden.

b. 6 months from the date of contract of sale or from the discovery of burden.

c. 1 year from the date of contract of sale or from the discovery of burden.

d. 3 days from the date of contract of sale or from discovery of burden.

c. C may still foreclose the chattel mortgage on the land on the basis of doctrine of estoppel.

D borrowed P100,000 from C and entered into a chattel mortgage involving his land to secure the payment of his loan. D failed to pay the loan at maturity date. Which of the following statements is correct?

a. The contract of chattel mortgage is null and void in so far as the contracting parties are concerned because the subject matter is a land.

b. C cannot foreclose the chattel mortgage over the land because the subject matter must be a movable property.

c. C may still foreclose the chattel mortgage on the land on the basis of doctrine of estoppel.

d. Third person directly affected by the contract of chattel mortgage is not allowed to file an action for declaration of nullity

b. To both the partnership credit and M's credit proportionately at P1,500 and P3,000, respectively.

T is indebted for P5,000 to MACE trading company, a partnership managed by M to whom T also owes P10,000. The two debts which are both demandable are unsecured. T
remits P4,500 to M in payment of his debt to him. Accordingly, M issues a receipt for his own credit. To which credit should the payment be applied?

a. To M's credit because the payment made by T is intended for his debt to M who issues his own receipt.

b. To both the partnership credit and M's credit proportionately at P1,500 and P3,000, respectively.

c. To M's credit because its amount is greater than that of the partnership credit.

d. To the partnership credit because the managing partner should not prefer his own interest to that of the partnership.

b. The payment will be applied in its entirety to M's personal credit.

MAGIC Company is a partnership composed of M, A, G, I, and C, with M as manager who is authorized to collect the credits of the partnership. T owes M P4,000 which is due on December 10, 2050. She also owes MAGIC Company P6,000 which is due on December 20, 2050. On December 15, 2050, T tendered payment in the amount of P4,000 to M in payment of her debt to the latter. M issued her own receipt acknowledging the payment. Which is correct?

a. The payment will be applied proportionately to the credits of MAGIC Company and M in the amount of P1,600 and P2,400, respectively.

b. The payment will be applied in its entirety to M's personal credit.

c. The payment will be applied in its entirety to MAGIC Company's credit.

d. The payment will be applied equally to the two debts of T.

d. Insanity of a partner

Which of the following will not cause the automatic dissolution of a general partnership?

a. Death of a partner
b. Insolvency of a partner
c. When the partnership business becomes unlawful
d. Insanity of a partner

d. The inspection of partnership book or account of partnership transactions.

Which right is not available to an assignee of a limited partner?

a. The receipt of the assignor's share of the profits.
b. The receipt of the assignor's other compensation by way of income.
c. The return of the assignor's contribution.
d. The inspection of partnership book or account of partnership transactions.

b. Merger

Equitable-PCI Bank and BDO Unibank entered into business combination which will result to BDO Unibank absorbing all the net assets of Equitable-PCI Bank. What type
of business combination is present in this case?

a. Consolidation
b. Merger
c. Dissolution
d. Spin-off

c. Secretary only

Under the old and revised corporation code, which corporate officer is required to be resident-citizen of the Philippines?

a. President, Secretary and Treasurer
b. Secretary and Treasurer only
c. Secretary only
d. None of the above

b. Regular member

Which member in a cooperative may invest in the common stocks of the cooperative?

a. Associate member
b. Regular member
c. Provisionary member
d. Temporary member

a. The payment of A is fully applied to the obligation of C.

A is indebted to the partnership for P9,000. B is the managing partner and C is another partner, to whom A is also indebted for P3,000. A paid the P3,000 to C and C receipted the payment in his own name. Which is correct?

a. The payment of A is fully applied to the obligation of C.

b. The payment of A shall be applied as follows: P2,250 to partnership's credit and P750 to C's credit.

c. The payment of A shall be applied as follows: P750 to partnership's credit and P2,250 to C's credit.

d. The payment is fully applied to the obligation to the partnership.

b. 24 hours

What is the maximum period given to Court of Appeals to resolve petition filed by AMLC for the issuance of bank inquiry order involving bank accounts of suspected
launderer or freeze order involving bank accounts of suspected launderer?

a. 12 hours
b. 24 hours
C. 36 hours
d. 48 hours

a. Report Card Survey

It refers to the document to be used to obtain information and/or estimates of hidden costs incurred by applicants or requesting parties to access government services which may include, but is not limited to, bribes and payment to fixers. The result of the survey shall also become basis for the grant of awards, recognition and/or incentives for excellent delivery of services in all government agencies.

a. Report Card Survey
b. Feedback mechanism
c. Business one stop shop
d. Automatic approval mechanism

d. Right of representation to which they maybe entitled under the law.

Removal of directors by the stockholders may be with or without cause provided that removal without cause may not be used to deprive the minority stockholders of their
a. Appraisal right
b. Pre-emptive rights
C. Right to file derivative suit against the majority stockholders
d. Right of representation to which they maybe entitled under the law.

Under Revised Corporation Code, in case the by-laws is silent, what is the minimum number of days of giving notice in case of meeting of stockholders or board of directors?

b. Fraudulent intent is essential in an action for unfair competition.

Which of the following statements relative to infringement and unfair competition is correct?

a. Infringement of trademark is the act of passing off one's goods as those of another.

b. Fraudulent intent is essential in an action for unfair competition.

c. Registration of the tradename is necessary in an action for infringement of tradename.

d. None of the above.

b. Abandonment due to voluntary cessation of business operations

Under the Intellectual Property Code, which of the following cases will result into the cancellation of a mark?

a. Lack of funds
b. Abandonment due to voluntary cessation of business operations
c. Abandonment due to government order
d. None of the above.

b. It is an incorporeal right

One of the following is a feature of a shares of stock

a. It makes the stockholders a creditor of the corporation
b. It is an incorporeal right
c. It represents property of the corporation
d. It requires a certificate of stock to vest ownership.

a. Valid

X is a director owning 20% of the outstanding capital stock of ABC Corporation and 40% of RST Corporation. The two corporation entered into a contract whereby ABC
Corporation sold its commercial lot to RST Corporation. The contract was approved as follows;

ABC Corporation - 4 out of 5 directors voted in the affirmative, including X;

RST Corporation - 5 out of 7 directors voted in the affirmative, including X.

The contract entered into by the two corporation is:

a. Valid
b. Voidable
c. Unenforceable
d. Void

c. X and Y have the right to inspect corporate books.

X entered into a voting trust agreement with Y whereby the former transferred the legal title of all his shares of stock to the latter.

a. X is qualified to run for a seat in the board of directors.
b. X has the right to collect the dividends.
c. X and Y have the right to inspect corporate books.
d. X and Y have the right to vote in the election of the board of directors.

B shall own 600 shares and X shall retain 400 shares.

X subscribed for 1,000 shares of P500 par value common stock for P500,000. He was able to pay only P200,000 and so the 600 unpaid shares declared delinquent.

Accrued interest to date amounted to P21,000 and expense for the public sale amounted to P4,000. The following bids were offered:

A - P325,000 for 800 shares
B - P325,000 for 600 shares
C - P250,000 for 600 shares
D - P200,000 for 400 shares

What is the consequence of the sale to the highest bidder?

D shall own 400 shares and X shall retain 600 shares.
A shall own 800 shares and X shall retain 200 shares.
B shall own 600 shares and the corporation shall own 400 shares.
B shall own 600 shares and X shall retain 400 shares.

d. None of the above.

An executive committee can validly act on the:

a. Amendment of the articles of incorporation of the corporation.
b. Preparation of the plan for merger of the corporation with another corporation.
c. Filing of vacancy in the board of directors.
d. None of the above.

c. P700,000

ABC Bank was liquidated by the Bangko Sentral ng Pilipinas due to financial reverses. How much is the UNINSURED deposits of Juan Dela Cruz?
a. P500,000
b. P400,000
c. P700,000
d. None of the choices

d. Unascertained goods are in effect all goods that are not specific.

What are "unascertained goods"?

a. Unascertained goods are goods that need to be specifically ordered

b. Unascertained goods are goods that have not been paid for when the contract is made.

c. Unascertained goods are goods that are not usually stocked by the seller and are therefore unusual.

d. Unascertained goods are in effect all goods that are not specific.

c. Criminal intent to defraud

Which of the following is not a valid defense in BP 22 as compared to estafa?

a. Lack of knowledge
b. Good faith
c. Criminal intent to defraud
d. Lack of notice of dishonor

C. Only I
Sec. 50 RCC - Notices must be sent to All (denial of due process if not sent to
all)

ABC Inc. has 7 shareholders, T, U, V, W, X, Y, and, Z, who are concurrently members of the Board of Directors. Notices of a special meeting was sent to all directors, except Z because the corporation has no record of her current address.

The meeting was attended by T, U, V, W and they unanimously voted in favor of all motions brought forward.

I. The meeting is void because notices must be sent to all the directors of record;
II. The meeting is valid because there was a quorum and the
required votes were obtained.

Which is/are true?
a. All
b. None
C. Only I
d. Only II

b. At least majority of the board of directors with ratification of at least majority of the stockholders for both managing corporation and managed corporation.

What is the required vote for the approval of management contract in the absence of interlocking directors between the managing and managed corporation?

a. At least majority of the board of directors with ratification of at least 2/3 of the stockholders for both managing corporation and managed corporation.

b. At least majority of the board of directors with ratification of at least majority of the stockholders for both managing corporation and managed corporation.

c. At least majority of the board of directors with ratification of at least 2/3 of the stockholders for managing corporation and at least majority of the board of
directors with ratification of at least majority of the stockholders for managed corporation.

d. At least majority of the board of directors with ratification of at least 2/3 of the stockholders for managed corporation and at least majority of the board of directors with ratification of at least majority of the stockholders for managing
corporation.

b. The bank

Who is liable for the payment of the insurance premium for deposits covered by the PDIC?

a. The depositor
b. The bank
c. The President of the Philippines
d. Both A and B, equally

c. Appraisal right

The board of directors approved the issuance of new shares without asking for the stockholder's permission. A stockholder complains that his right was violated.
What right was violated?

a. Pre-emptive right
b. Stockholder right
c. Appraisal right
d. Right of first refusal

c. Claire and Miggy, respectively

Claire commissioned Miggy to paint her garden. Who owns the painting and the copyright on the painting, respectively?

a. Both Claire
b. Both Miggy
c. Claire and Miggy, respectively
d. Miggy and Claire, respectively

b. False; False; True

The following statements relative to liquidation and dissolution of cooperatives are presented to you for evaluation:

I. Upon the dissolution of the cooperative, the reserve fund shall be distributed

among the members. – F; “shall not be”

II. All subsidies, donations, legacies, grants, aids and other assistance from any local or foreign institutions whether public or private shall donated to the community where the cooperative operates. – F; “shall be escheated” CDA Memorandum Circular 2010-08 Section 10

III. Payment of creditors shall be in accordance with the contract upon which it is based and the provision of the New Civil Code on the preference and concurrence

of credits. – T; CDA Memorandum Circular 2010-08 Section 8

What is the correct evaluation?

a. False; False; False

b. False; False; True

c. True; True; False

d. True; True; True

b. 50% plus 1 or 1/2 plus 1 (except amendments to AOI)

The quorum requirement for cooperative banks is

a. At least 25%
b. 50% plus 1 or 1/2 plus 1 (except amendments to AOI)
c. 1/3
d. 1/4

a. Bangko Sentral ng Pilipinas

Financial cooperatives are supervised by

a. Bangko Sentral ng Pilipinas
b. Cooperative Development Authority
c. BSP for specific transactions
d. CDA for specific transactions

b. It has not carried on its business for two consecutive years. - dissolution by failure to operate

The CDA will automatically dissolve a cooperative even without revoking the authority when (choose the exception)

a. Failure to meet the required minimum number of members.

b. It has not carried on its business for two consecutive years. - dissolution by failure to operate

c. Having obtained its registration by fraud.

d. Existing for an illegal purpose.

c. I and II

Consider the following:

I. Credit Cooperative is one that promotes and undertakes savings and lending services among its members, which generates a common pool of funds in order to provide financial assistance to its members for productive and provident purposes and whose operations are subject primarily to the regulatory powers and supervision
of the CDA.

II. Financial Service Cooperative is one organized for the primary purpose of engaging in savings and credit services and other financial services whose operations are subject primarily to the regulatory powers and supervision of the
CDA.

III. Cooperative Bank is one organized for the primary purpose of providing a wide range of financial services to cooperatives and their members whose operations are
subject primarily to the regulatory powers and supervision of the CDA.

IV. Insurance Cooperative is one engaged in the business of insuring life and poverty of cooperatives and their members whose operations are subject primarily to the regulatory powers and supervision of the CDA.

Which is/are true?
a. I only
b. All except IV
c. I and II
d. III and IV

b. 10%

7% optional fund
3% community development fund

What is the required reserve fund for an ordinary cooperative?
a. 50% - in the first five years of operation
b. 10%
c. 7%
d. 3%

d. An Elective Officer may be removed by 2/3 vote of the regular members present and constituting a quorum in a regular or special general assembly meeting called
for the purpose - should be 3/4

45. Which of the following is not a characteristic of Financial Service Cooperative?

a. The Net Worth of the Financial Service Cooperate shall, at all times, not be less than an amount equal to eight percent (8%) of its risk assets.

b. Financial Service Cooperative shall maintain a Liquidity Reserve Fund that will be restricted in nature equivalent to at least two percent (2%) of their savings and time deposit liabilities.

c. Only those cooperatives with minimum Paid-up capital of at least Ten Million pesos (Php 10,000,000.00) shall qualify to register as Financial Service Cooperative.

d. An Elective Officer may be removed by 2/3 vote of the regular members present and constituting a quorum in a regular or special general assembly meeting called
for the purpose

c. Numerous and dispersed membership

It shall refer to a cooperative whose membership are in large number and geographically scattered/distributed by reason of geographical location, work shift or other similar conditions making it impossible and difficult to conduct their general assembly meeting.

a. Distributed membership
b. Scattered membership
c. Numerous and dispersed membership
d. Geographical membership

b. II only

A borrows P6M from B. A executes a deed of assignment by way of security over the shares of stock in favor of B in order to secure payment of the loan. It is stipulated
that upon payment of the loan by A, B will re-convey the shares of stock to A.

I. On due date, if A fails to pay, the shares will remain with B as the owner because this is a sale with a right of repurchase

II. On due date, if A fails to pay, B must foreclose upon the shares to avoid pactum commissorium because this is a pledge.

Which is/are true?

a. I only
b. II only
c. Neither
d. Both

b. It shall be escheated in favor of the government.

What will happen to the dormant deposit after 10 years?

a. It shall be reinstated
b. It shall be escheated in favor of the government.
c. Either A or B
d. Neither A or B

A. Financing of terrorism

In which predicate crime of money laundering is the AMLC allowed to inquire bank deposits of suspected laundered despite the absence of court order from Court of Appeals?

A. Financing of terrorism
b. Plunder
c. Smuggling
d. Human trafficking

b. Layering - involves sending money through various financial transactions to change its form and make it more difficult to follow.

Money is already deposited in a bank and asked his lawyer if he could deposit it to various banks. What stage of money laundering is stated in this scenario?

a. Placement - the launderer inserts dirty money into a legitimate financial institution.

b. Layering - involves sending money through various financial transactions to change its form and make it more difficult to follow.

c. Integration - the money re-enters mainstream economy in legitimate-looking form, appearing to have come from legitimate transaction.

d. Conversion - eme lang to, wag kang ano.

d. Compliance Officer

Under the Code of Corporate Governance for Publicly-listed companies, which of the following officers should appear before the SEC when summoned in relation to compliance with the Code?

a. Chairman of the Board
b. Chief Executive Office
c. Corporate Secretary
d. Compliance Officer

a. Anti-Money Laundering Council

It refers to the financial intelligence unit of the Republic of the Philippines which is entrusted with the implementation of Anti-Money Laundering Law

a. Anti-Money Laundering Council
b. Monetary Board of Bangko Sentral ng Pilipinas
c. Insurance Commission
d. Securities and Exchange Commission

a. I and IV

I - no level of originality; desktop functions are not copyrightable
II - violative; essentially making a copy
III - Picture to statue; form is changed but same in the picture
IV - if transformative, not infringement, fair use will apply.

Consider the following:

I. Apple claimed that version 2.03 of Microsoft's Window's operating environment computer software and H-P's New Wave desktop computer software which operates with Windows, both infringed the audiovisual copyrights in Apple's Macintosh visual displays and images.

II. A case involving a service that allowed users to "resell" digital mp3 files.

III. Photographer Art Rogers shot a photograph of a couple holding a line of puppies in a row and sold it for use in greeting cards and similar products. Internationally,
renowned artist Jeff Koons in the process of creating an exhibit on the banality of everyday items, ran across Rodgers' photograph and used it to create a set of statues
based on the image. Koons sold several of these structures, making a significant profit. Upon discovering the copy, Rodgers sued Koons for copyright. Koons responded
by claiming fair use by parody;

IV. For an exhibition in the Gagosian Gallery, Prince appropriated 41 images from a photography book by French photographer Patrick Cariou, claiming fair use that he created new meaning out of the photographs. Cariou argued that it wasn't fair use, but copyright infringement.

Which are not copyright infringement?

a. I and IV
b. II and III
c. III and IV
d. II and IV

d. Information about the platform of a candidate for national elective position that is discussed in a public debate televised in national television network.

Which of the following is not considered a sensitive personal information?

a. Information about a individual's health, education, genetic or sexual life of a person, or to any proceeding for any offense committed or alleged to have been committed
by such person, the disposal of such proceedings, or the sentence of any court in such proceedings.

b. Information issued by government agencies peculiar to an individual which includes, but not limited to, social security numbers, previous or current health records,
licenses or its denials, suspension or revocation, and tax returns.

c. Information specifically established by an executive order or an act of Congress to be kept classified.

d. Information about the platform of a candidate for national elective position that is discussed in a public debate televised in national television network.

c. Generally pledgee unless granted to the pledgor

Who shall be entitled to the excess of the proceeds from the sale at public auction of the thing conventionally pledged after application to the secured loan?

a. Always pledgee
b. Always pledgor
c. Generally pledgee unless granted to the pledgor
d. Generally pledgor unless granted to the pledgee

a. Industrial partner who engages in any business for himself without express permission from the partnership.

In the absence of stipulation in the Articles of Co-partnership, which of the following partners may be excluded from the partnership?

a. Industrial partner who engages in any business for himself without express permission from the partnership.

b. Capitalist partner who engaged in a similar business of the partnership without express permission from the partnership.

c. Managing partner who engages in any business for himself without express permission from the partnership.

d. Dormant partner who engaged in a similar business of the partnership without express permission from the partnership.

a. I, II & III

I - Sec. 90 NIL; II - B and C not discharged if NOD is received; III - E is not a prior party; IV - E is discharged, he is not liable.

A issues promissory note to B which is successively indorsed to C, D, E and F, who is the current holder. F presents the PN to A who dishonors it. F, the holder,
sends a notice of dishonor only to D, therefore, B, C and E are discharged.

I. D can also send notices to B and C to hold them liable

II. If D sends the notices B and C, they also become liable to F

III. If D sends the notice to E, it has no effect on the discharge of E

IV. If E sends the notices to B, C and D, they all become liable to F.

Which are true?

a. I, II & III
b. II, III & IV
c. I, III & IV
d. I, II & IV

b. P20,000

ABC Furniture undertook to deliver to Mr. M specified pieces of tables. The contract had a penal clause that any violation of the contract would entitle the aggrieved party
to damages in the amount of P10,000. The furniture delivered by ABC Furniture was made of substandard materials. In a case filed by Mr. M, he was able to prove actual damages he sustained in the amount of P20,000.

If you were to decide based on legal ground, how much would you award to Mr. M?

a. P30,000
b. P20,000
c. P10,000
d. P5,000

a. Photographs taken by a reporter of a sexy movie star.

Which of the following matters are accorded copyright protection?

a. Photographs taken by a reporter of a sexy movie star.
b. Illustration of playing a board game.
c. News about the assassination of a Senator.
d. Civil code of the Philippines.

a. Only Statement I is true

Consider the following:

Statement I: The chairman of the audit committee of a corporation is an independent director

Statement II: The compliance officer reports directly to the President of the board of
directors

a. Only Statement I is true
b. Only Statement II is true
c. Both are true
d. Both are false

a. Three

What is the maximum number of signatories in any document involving government services?

a. Three
b. Two
c. Four
d. Five

a. the representative acquires legal title to the shares to be voted

One of the distinctions between a proxy and a voting trust agreement is that in a voting trust agreement

a. the representative acquires legal title to the shares to be voted

b. the exercise of the right to vote is limited to a particular meeting

c. the representative cannot vote if the stockholder is present during the meeting

d. the agreement need not be recorded with the Securities and Exchange Commission

a. Aesthetic creations

Which of the following is non-patentable?

a. Aesthetic creations
b. Salt lamp technology
c. Car driven by water-engine
d. Microorganisms

d. The trademark "RHEUMAPAS" for medicated plaster.

Which of the following marks is most likely to be accorded exclusive registration in accordance with our intellectual property laws?

a. The trademark "SHINEE" for floor wax.
b. The trademark "INSTAGLUE" for adhesive glue that has been manufactured and sold in
the Philippines for three years now.
c. The tradename "ROPE FACTORY, INC." For manufacturer of ropes and strings.
d. The trademark "RHEUMAPAS" for medicated plaster.

d. I and II

I-cooperative bank
II- financial service cooperative

Consider the following:

I - Financial service cooperative is one organized for the primary purpose of providing a wide range of financial cooperatives and their members.

II - Cooperative bank is one organized for the primary purpose of engaging in savings and credit services and other financial services.

III - Credit cooperative is one that promotes and undertakes savings and lending services among its members.

Which is/are false?
a. III only
b. I and III
c. II and III
d. I and II

b. C can not exercise the right of redemption because the sale was made in favor of a co-owner.

A, B, and C are co-owner of an undivided parcel of land. A sold his 1/3 interest to B absolutely. Which is correct?

a. C may exercise his right of redemption on the interest sold by A to B.

b. C can not exercise the right of redemption because the sale was made in favor of a co-owner.

c. The sale made by A to B is void because it was not made in favor of a stranger.

d. C may redeem only 1/2 of the interest sold by A to B.

d. Certificate of time deposit or money market placement issued by a bank

Which of the following securities is exempted from registration before Securities and Exchange Commission?

a. Participation in profit sharing agreement in a partnership

b. Investment contracts issued by networking company

c. Trust certificates and voting trust certificates in a mining company

d. Certificate of time deposit or money market placement issued by a bank

b. None
Even if stipulated, you cannot recover deficiency.

68. A mortgaged his land worth P5M in favor of B to secure a debt of P6M. A sold the land to C.

I. On due date, B should demand payment of the P6M from A, and if A fails to pay, B may foreclose the mortgage.

II. B may choose to collect P5M from C, and if C pays B, C can go after A for reimbursement.

Which is/are true?

a. All
b. None
c. Only one
d. Only two

b. Must be residents of the Philippines

Which of the following is not a qualification for organizers of a primary cooperative?

a. Must be 15 or more natural persons
b. Must be residents of the Philippines
c. Must be of legal age
d. None of the above

b. Holistic test

This test mandates that the entirety of the marks in question must be considered in determining confusing similarity.

a. Dominancy test
b. Holistic test
c. Idem Sonans test
d. None of the above

a. Probable cause or prima facie evidence

What is the quantum of evidence required to sue or file a criminal case for criminal offense involving violation of BP 22 for issuance of worthless checks?

a. Probable cause or prima facie evidence
b. Clear and convincing evidence
c. Preponderance of evidence
d. Proof beyond reasonable doubt

a. approval of the compensation of directors

A non-voting stock may vote in the following corporate acts, except in case of

a. approval of the compensation of directors
b. merger or consolidation
c. increase or decrease in capital stock
d. sale, lease, exchange, mortgage, pledge, or other disposition of all or substantially
all of corporate property.

c. Marketing Cooperative

A cooperative that engages in the supply of production inputs to members and markets their products.

a. Credit Cooperative
b. Consumers Cooperative
c. Marketing Cooperative
d. Producers Cooperative

c. Regulation

It refers to any legal instrument that gives effect to a government policy intervention and includes licensing, imposing information obligation, compliance to standards or payment of any form of fee, levy, charge or any other statutory and regulatory requirements necessary to carry out activity

a. Control
b. System
c. Regulation
d. Process

a. A single transaction exceeding P7,500,000 in cash

What is the quantitative threshold for a covered transaction in by real estate developers and brokers?

a. A single transaction exceeding P7,500,000 in cash
b. A single transaction exceeding P7,500,000 in cash or cash equivalents
c. A single transaction exceeding P7,500,000 in cash or on account
d. A single transaction exceeding P7,050,000 on account

d. Both

A mortgaged his land worth P5M in favor of B to secure a debt of P6M. A sold the land to C.

I. On due date, B should demand payment of the P6M from A, and if A fails to pay, B may foreclose the mortgage.

II. B may choose to collect P5M from C, and if C pays B, C can go after A for reimbursement.

Which is/are true?
a. I only
b. II only
c. Neither
d. Both

d. Joint since the conversion of their liability to one of indemnity for damages made it joint.

Roy and Carlos both undertook a contract to deliver to Sam in Manila a boat docked in Subic. Before they could deliver it, however, the boat sank in a storm. The contract provides that fortuitous event shall not exempt Roy and Carlos from their obligation.

Owing to the loss of the motor boat, such obligation is deemed converted into one of indemnity for damages. Is the liability of Roy and Carlos joint or solidary?

a. Neither solidary nor joint since they cannot waive the defense of fortuitous event to which they are entitled.

b. Solidary or joint upon the discretion of Sam.

c. Solidary since Roy and Carlos failed to perform their obligation to deliver the motor boat.

d. Joint since the conversion of their liability to one of indemnity for damages made it joint.

c. Payment will be applied in its entirety to C's credit.

T owes P3,000 to CHAMP Company, a partnership composed of C, H, A, M, and P, with M as the manager who is authorised to collect all credits of the firm. He also owes C the amount of P6,000. Both debts are already due. T gives P3,000 to C in payment of his debt to the latter. C, thus issues his own receipt. Which is correct?

a. Payment will be applied proportionately to the two credits at P1,000 for C's credit and P2,000 for CHAMP Company's credit.
b. Payment will be applied equally to the two credits.
c. Payment will be applied in its entirety to C's credit.
d. Payment will be applied in its entirety to CHAMP Company's credit.

a. Data Processing Systems and Policies and Planning

What are the two responsibilities of the Deputy Privacy Commissioner?

a. Data Processing Systems and Policies and Planning
b. Data Collection Systems and Policies and Planning
c. Data Processing Systems and Finance
d. Data Privacy Systems and Policies and Performance

d. P2,180,000

360,000 x 50% = 180,000
360,000/10,000 = 36/12 = 3 years = 50%
4,360,000 x 50% = 2,180,000

A sold a residential house and lot a price of P10,000,000 payable at P4,000,000 down-payment and the balance of P6,000,000 payable in 50 years at P10,000 per month to
B. After total payments of P4,360,000, B defaulted on the next installment. After following the necessary procedures required by law, the contract of sale is properly cancelled. How much cash surrender value is B entitled from A?

a. P2,000,000
b. P2,240,000
c. P180,000
d. P2,180,000

a. Condition precedent

What is the term for the condition when the obligation will only arise after the arrival of suspensive condition?

a. Condition precedent
b. Condition subsequent
c. Condition antecedent
d. Condition subsequent

c. Intermediary

Which of the following terms is not within the scope of Data Privacy Act?

a. Third party
b. Profiling
c. Intermediary
d. Security incident

c. Chairman of the Board of Directors

Which position may be concurrently held by a president of the same corporation aggregate?

a. Treasurer
b. Corporate Secretary
c. Chairman of the Board of Directors
d. None of the above

b. Intermediary

Refers to a person who in behalf of another person and with respect to a particular electronic document sends, receives and/or stores or provides other services in respect of that electronic document.

a. Originator
b. Intermediary
c. Service provider
d. Addressee

b. III and IV

Which of the following are not required in a contract of sale?

I. Identifiable goods and price
II. Transfer of ownership of goods
III. Delivery of possession
IV. Third party insurers in case of loss

a. I and II
b. III and IV
c. II and III
d. I and IV

d. Pay to the order of D P10,000. Reimburse yourself out of the rental of my house in Manila. To B. Sgd. E.

Which of the following instruments is negotiable?

a. Pay to bearer, D P10,000. Reimburse yourself out of the rental of my house in Manila. To B. Sgd. E

b. Pay to D P10,000 or his order out of the rental of my house in Manila. To B. Sgd. E

c. Pay to D P10,000 and reimburse yourself out of the rental of my house in Manila. To B. Sgd. E.

d. Pay to the order of D P10,000. Reimburse yourself out of the rental of my house in Manila. To B. Sgd. E.

d. The in existence can be assailed by third person

Characteristic of void contracts, except

a. Defense of illegality cannot be waived
b. Cannot be ratified
c. Action for declaration of in existence does not prescribe
d. The in existence can be assailed by third person

b. It must contain an unconditional promise to pay a certain sum of money.

Which of the following is not a requisite of a negotiable promissory note?

a. It must be in writing and signed by the maker.
b. It must contain an unconditional promise to pay a certain sum of money.
c. It must be payable on demand or at a fixed time or at a determinable future time.
d. It must be payable to order or to bearer.

b. Electronic key

It refers to a secret code which secures and defends sensitive information that cross over public channels into a form decipher able only with a matching electronic
key.

a. Digital signature
b. Electronic key
c. Password
d. Manual key

d. All statements are false

Consider the following

I - Chattel mortgage is a consensual contract and the creditor gets possession of the thing mortgaged.

II - Pledge is a consensual contract and gives a personal right.

III - Real estate mortgage is a real contract and creates a real right if registered with the Registry of Property.

IV - Antichresis is an accessory and gives a real right.

a. Only one statement is true
b. Two statements are true
c. Three statements are true
d. All statements are false

d. When the debtor delivers a wrong thing on due date.

Demand is necessary in this situation for the debtor to be in delay:

a. When the time is a controlling motive.
b. When the obligor has rendered it beyond his power to perform.
c. When the obligation has been fulfilled.
d. When the debtor delivers a wrong thing on due date.

b. both answers are false

The board of directors of a corporation consists of nine members, where two were removed and two have resigned, who fills up the vacancy?

I - The remaining members of the board
II - The stockholders

a. both answers are true
b. both answers are false
c. only the first answer is true
d. only the second answer is true

a. 15 or more natural persons

What is the number of cooperators or founders of a primary cooperative?

a. 15 or more natural persons
b. Not less than 5 but not more than 15 natural persons
c. 5 but not more than 10 natural persons
d. 10 or more natural persons

b. allows a partner to use such property for partnership business

A partner is a co-owner with his partners of specific partnership property. Such co-ownership

a. allows a partner to assign his right in such property

b. allows a partner to use such property for partnership business

c. entitles the spouse, children and other relatives of the partner to claim support from such property

d. gives the private creditors of a partner to attach his right in such property