actreg2 ce (a, o)

1. Who may become an insurer in an insurance contract?

a. Corporation duly authorized to transact insurance business

b. Partnership duly authorized to transact insurance business

c. Association duly authorized to transact insurance business

d. All of the above

d

2. Who among the following may not be insured?

a. Insane person

b. Public enemy

c. Minor

d. All of the above

b

3. It refers to an intellectual property which gives an exclusive right to the inventor over his new, inventive and useful product, process or an improvement of a product or process.

a. Copyright

b. Trademark

c. Franchise

d. Patent

d

4. S and B entered into a contract whereby S will deliver a specific laptop valued at P40,000 while B will deliver a specific laptop P20,000 plus a cash amounting to P20,000. What is the nature of contract between S and B?

a. Contract of barter

b. Contract of sale

c. Contract of lease

d. Contract for a piece of work

b

6. Which of the following transactions is covered by Maceda Law?

a. Installment sale of industrial lots

b. Installment sale of commercial buildings

c. Installment sale of residential condominium units

d. Installment sale to tenants of agricultural land covered by Agrarian Reform Law

c

7. Under Maceda Law, what is the grace period earned by buyer of residential real property in installments to pay the defaulted installment without additional interest when he has paid less than two years of installments?

a. A period not less than thirty (30) days

b. A period not less than sixty (60) days

c. A period not less than ninety (90) days

d. A period not less than one hundred twenty (120) days

b

8. Which of the following is a ground for right to rescind the sale by an unpaid seller?

a. The seller has expressly reserved the right to rescind the goods in case the buyer should make default.

b. The buyer has been in default for an unreasonable time.

c. Either a or b

d. Neither a nor b

c

9. Which of the following is a valid stipulation in a contract of real estate mortgage?

a. A stipulation which provides for tipo or upset price or maximum limit of price in the foreclosure sale of mortgaged real property.

b. A stipulation allowing the automatic appropriation by the mortgagee of the real property mortgaged in case of default of the debtor.

c. A stipulation prohibiting the mortgagor from disposing or selling his real property mortgaged.

d. A stipulation prohibiting second mortgage on a real property registered under Torrens System or with Certificate of Title.

d

10. A has an outstanding loans payable of P10,000,000 with a term of 15 years. The loan is secured by a real estate mortgage on the land of A. After 1 year, A and the bank agreed to reduce the principal amount of the loan to P5M and the term is shortened to 5 years. Which of the following statements is correct?

a. No obligation remains to exist because of novation.

b. The contract of real estate mortgage is extinguished.

c. There is no novation because novation can never be presumed.

d. The novation is void because there is no delivery of sum of money.

b

11. It is a a stipulation in a contract of pledge or contract of mortgage whereby the thing pledged or mortgaged shall automatically become the property of the creditor in the event of non-payment of the secured debt within the term fixed.

a. Pactum intentionada

b. Pactum consciente

c. Pactum commissorium

d. Pactum redhibitoria

c

12. Which of the following remedies available to the seller for the breach of contract of sale committed by the buyer is correct?

a. Assuming the goods have already been delivered to the buyer and the buyer wrongfully neglects or refuses to pay the price, the seller may maintain an action for the price of the goods or may file an action to collect a sum of money.

b. If the buyer wrongfully neglects or refuses to accept and pay for the goods, the seller may maintain an action for damages.

c. Assuming the goods have not yet been delivered to the buyer and (1) If the buyer has repudiated the sale or (2) If the buyer manifested his inability to perform his obligation to pay the price or (3) If the buyer has committed a breach of contract, the seller may rescind the contract of sale.

d. All of the above

d

13. In sale of personal property in installments whereby a chattel mortgage is constituted on the thing sold to secure the payment of the price, when the seller avails the remedy of foreclosure of chattel mortgage on the thing sold in case the buyer defaulted to pay two or more installments, may the seller recover deficiency arising from the foreclosure sale of the said personal property?

a. Yes even if not stipulated

b. Yes but only if stipulated

c. No unless there is stipulation for recovery

d. No despite stipulation for recovery

d

16. What is the status of sale of broiler chicken suffering from bird flu?

a. Rescissible contract

b. Voidable contract

c. Unenforceable contract

d. Void contract

d

17. It exists where the same person is insured by several insurers separately in respect to the same subject and interest.

a. Overinsurance

b. Underinsurance

c. Double insurance

d. Single insurance

c

18. It refers to a type of waiver of warranty against eviction that is made by the buyer when he acted in good faith because he has no knowledge of risk of eviction. In this case, the seller is still liable for eviction but only up to the extent of the value of the thing at the time of eviction.

a. Waiver consciente

b. Waiver intentionada

c. Waiver possessionada

d. Waiver reindivicatoria

a

19. What are the requisites in order for the processing of sensitive personal information to achieve the lawful and noncommercial objectives of public organizations and their associations to be allowed?

a. Processing is confined and related to the bona fide members of these organizations or their associations.

b. The sensitive personal information are not transferred to third parties.

c. Consent of the data subject was obtained prior to processing.

d. All of the above

d

20. He refers to an officer of a natural or juridical person involved in the processing of personal data who will be accountable for ensuring compliance with applicable laws and regulations for the protection of data privacy and security.

a. Data privacy officer

b. Internal auditor

c. Controller

d. Accountant

a

21. B borrowed P100,000 from L. In order to secure his obligation, B mortgaged his house under contract of chattel mortgage. B defaulted in the payment of the principal obligation. Which of the following statements is correct?

a. The contract of chattel mortgage is not binding because the subject matter of the chattel mortgage must be personal property.

b. The contract of loan is void.

c. Unsecured creditor of B cannot ask for declaration of nullity of the contract of chattel mortgage because of the concept of relativity of contract.

d. L may still foreclose the chattel mortgage constituted over the house.

d

22. Which of the following statements regarding the sale of the thing mortgaged in public auction regarding contract of real estate mortgage is correct?

a. The mortgagor is generally entitled to the excess unless there is stipulation to the contrary.

b. The mortgagee may generally recover the deficiency unless there is stipulation to the contrary.

c. Both A and B.

d. Neither A nor B.

c

23. What is the classification of contract of chattel mortgage as to its perfection?

a. Solemn contract

b. Consensual contract

c. Real contract

d. Legal contract

a

24. It refers to the passing off (or palming off) or attempting to pass off upon the public of the goods or business of one person as the goods or business of another with the end and probable effect of deceiving the public.

a. Trademark infringement

b. Unfair competition

c. Trademark misappropriation

d. Unfair theft

b

25. This test of trademark infringement focuses on the similarity of the main, prevalent or essential features of the competing trademarks that might cause confusion.

a. Literal infringement test

b. Doctrine of equivalents test

c. Dominancy test

d. Holistic test

c

26. With regard to retention of electronic data message or electronic document, the requirement in any provision of law that certain documents be retained in their original form is satisfied by retaining them in the form of an electronic data message or electronic document which satisfies which condition?

a. Remains accessible so as to be usable for subsequent reference

b. Is retained in the format in which it was generated, sent or received, or in a format which can be demonstrated to accurately represent the electronic data message or electronic document generated, sent or received

c. Enables the identification of its originator and addressee, as well as the determination of the date and the time it was sent or received.

d. All of the above

d

27. Unless otherwise agreed between the originator and the addressee, what is the disputable place of dispatch of electronic data message or electronic document?

a. Place of business of originator

b. Place of business of addressee

c. Domicile of debtor

d. Domicile of creditor

a

28. What is the effect of employment by the seller of by-bidders or puffers without notice to the other bidders in a perfected contract of sale by auction?

a. The sale may be considered voidable.

b. The sale may be considered void.

c. The sale may be considered unenforceable.

d. The sale may be considered rescissible.

a

29. In a contract of sale, what is the operative act that transfers ownership of the thing sold from the seller to the buyer?

a. Delivery whether actual or constructive

b. Consent of the contracting parties on the determinate thing and price certain in money

c. Full payment of the price

d. Execution of the written deed of sale

a

30. S promised to sell his car to B for P200,000 giving B one month to decide whether to buy or not. B accepted the promise and gave a consideration of P10,000 for the one month period. Which is correct?

a. If B decides to buy the car, B should only pay P190,000 to S because the amount given is arras money.

b. If B decides to buy the car, B should still pay P200,000 to S because the amount given is option money.

c. S may sell the car to other persons before the lapse of the one month period without incurring any liability for damages.

d. Upon payment of the P10,000 cash, the contract of sale is perfected.

b

31. If the originator or addressee has more than one place of business, what will be considered the place of business for determining the disputable place of dispatch or receipt of electronic data message or electronic document?

a. Place of business which has the closest relationship to the underlying transaction

b. Principal place of business

c. Nominal place of business

d. Place of head office

a

32. The following requisites are essential to the contracts of pledge, real estate mortgage and chattel mortgage, except

a. That they be constituted to secure the fulfillment of a principal obligation such as contract of loan.

b. That the pledgor or mortgagor be the absolute owner of the thing pledged or mortgaged.

c. That the persons constituting the pledge or mortgage have the free disposal of their property, and in the absence thereof, that they be legally authorized for the purpose.

d. That when the principal obligation becomes due, the things in which the pledge or mortgage consists may be alienated for the payment of the creditor.

e. That the thing pledged or mortgaged be placed in the possession of the creditor, or of a third person by common agreement.

e

33. What is the nature of a contract of pledge, of chattel mortgage, of real estate mortgage or of antichresis?

a. It is divisible if the principal contract is joint.

b. It is indivisible if the principal contract is solidary.

c. It is divisible whether the principal contract is joint or solidary.

d. It is indivisible whether the principal contract is joint or solidary.

d

34. The following are the obligations of the debtor-pledgor, except

a. To pay the debt and its interest, with expenses, in a property case, when they are due.

b. To pay damages that the pledgee may suffer by reason of the flaws of the thing pledged, if he was aware of such flaws but he did not advise the pledgee of the same.

c. To pay for the expenses which are necessary for the preservation of the thing pledged.

d. To warrant the thing pledged for its quality and merchantability.

d

35. January 1, 2001, Steve Jobs invented the technology of Soft Touch which he registered in the Intellectual Property Office of USA on January 1, 2001. On April 1, 2001, Juan Gaya also invented the same technology of Soft Touch which he registered in the Intellectual Property Office of the Philippines on April 1, 2001. A certified copy of Steve Job's application in USA was filed on June 1, 2001 to Intellectual Property Office of the Philippines. Who has better right over the patent of the Soft Touch in so far as the Philippine jurisdiction is concerned?*

a. Steve Job

b. Juan Gaya

c. Both Steve and Juan equally

d. None of them

a

36. On January 1, 2001, S and B agreed in writing for the sale of specific TV at a price of P10,000. The terms of the contract provide the delivery of the TV shall be made on January 5, 2001 while the payment of the price is on a deferred term to be made on April 1, 2001. On January 5, 2001, S failed to deliver the TV set despite extrajudicial demand for the delivery made by B. Which of the following is correct?

a. S may exercise his right of possessory lien because he has not yet received the price.

b. S may exercise his right of stoppage in transitu because he is an unpaid seller.

c. B may file an action for specific performance with damages against S.

d. B may file an action for declaration of nullity of the contract of sale.

c

37. Mr. A orally sold his specific land to Mr. B at a selling price of P499. The delivery and payment will be made after two months. On the agreed date of performance of contract, Mr A did not perform his obligation. What is the remedy available to Mr. B?

a. File an action for specific performance

b. He has no remedy.

c. File an action to compel Mr. A to execute a written contract

d. File an action for declaration of nullity

b

38. A person insured by a contract of marine insurance may abandon the thing insured, or any particular portion thereof separately valued by the policy, or otherwise separately insured, and recover for a total loss thereof, when the cause of the loss is a peril insured against, except

a. If more than three-fourths (¾) thereof in value is actually lost, or would have to be expended to recover it from the peril

b. If it is injured to such an extent as to reduce its value more than three-fourths (¾)

c. If the thing insured is a ship, and the contemplated voyage cannot be lawfully performed without incurring either an expense to the insured of more than three-fourths (¾) the value of the thing abandoned or a risk which a prudent man would not take under the circumstances

d. If the thing insured, being cargo or freightage, and the voyage cannot be performed, nor another ship procured by the master, within a reasonable time and with reasonable diligence, to forward the cargo, without incurring the like expense or risk mentioned in the preceding subparagraph. But freightage cannot in any case be abandoned unless the ship is also abandoned.

e. None of the above

e

39. A ship is seaworthy when reasonably fit to perform the service and to encounter the ordinary perils of the voyage contemplated by the parties to the policy. The seaworthiness covers the

a. Perils of the sea

b. Perils of the ship

c. Both a and b

d. Neither a nor b

b

40. As a general rule, what is the effect of nonpayment of premium in a contract of insurance?

a. The contract of insurance is valid and binding.

b. The contract of insurance is not valid and binding.

c. The contract of insurance is enforceable.

d. The contract of insurance is voidable.

b

41. It is an intellectual property that refers to any visible sign capable of distinguishing the goods of an enterprise and shall include a stamped or marked container of goods.

a. Distinguishing mark

b. Trademark

c. Patent

d. Copyright

b

42. It is an intellectual property that refers to any visible sign capable of distinguishing services of an enterprise and shall include a stamped or marked container of services.

a. Distinguishing mark

b. Service mark

c. Patent

d. Copyright

b

43. What is the legal term of a patent that gives its owner the exclusive right to use the covered invention?

a. 20 years

b. 10 years

c. 15 years

d. 25 years

a

44. Which of the following statements regarding the protection afforded to data subjects is correct?

a. The personal information controller or personal information processor shall uphold the rights of data subjects, and adhere to general data privacy principles and the requirements of lawful processing.

b. The burden of proving that the Data Privacy Act and its IRR are not applicable to a particular information falls on those involved in the processing of personal data or the party claiming the non-applicability.

c. In all cases, the determination of any exemption from the applicability of Data Privacy Act shall be liberally interpreted in favor of the rights and interests of the data subject.

d. All of the above

d

45. It refers to an independent body mandated to administer and implement the Data Privacy Act, and to monitor and ensure compliance of the country with international standards set for personal data protection.

a. Philippine Competition Commission

b. National Privacy Commission

c. Anti-Money Laundering Council

d. Social Security Services

b

46. Electronic documents shall have the legal effect, validity or enforceability as any other document or legal writing. When do electronic documents satisfy a requirement of law of a document to be in writing?

a. When the said electronic document maintains its integrity and reliability

b. When the said electronic document can be authenticated so as to be usable for subsequent reference

c. Both a and b

d. Neither a nor b

c

47. Where the law requires information to be presented or retained in its original form, when is that requirement met by an electronic data message or electronic document?

a. The integrity of the information from the time when it was first generated in its final form, as an electronic data message or electronic document is shown by evidence aliunde or otherwise.

b. Where it is required that information be resented, that the information is capable of being displayed to the person to whom it is to be presented.

c. Both a and b

d. Neither a nor b

c

48. P authorized A to sell his specific car at a price of P100,000. Instead of finding a buyer, A decided to acquire the said specific car at a price of P90,000 and remitted the payment to P who accepted the payment after obtaining knowledge that A is the buyer. What legal remedy is available to P?

a. Action for rescission of contract of sale

b. Action for annulment of contract of sale

c. Action for declaration of nullity of contract of sale

d. None of the above

d

49. LA Lakers entered into a contract with Nike Inc to provide two pairs of basketball shoes for Kobe Bryant and Andrew Bynum. No pair was, however, available at the time of perfection of the contracts. Kobe wears 10” basketball shoes which Nike normally manufactures for the general market while Andrew wears 20” basketball shows which will be manufactured specially for Andrew. What contracts are entered into by the parties?

a. Both contracts of sale

b. Both contracts for a piece of work

c. Contract of sale for Kobe’s shoes and contract for a piece of work for Andrew’s shoes

d. Contract of sale for Andrew’s shoes and contract for a piece of work for Kobe’s shoes

c

50. What is the effect of gross inadequacy of price in a contract of sale?

a. It renders the contract of sale void.

b. In renders the contract of sale unenforceable.

c. It does not affect a contract of sale, except as it may indicate a defect in the consent which makes the contract voidable or except as it may indicate that the intention is another contract.

d. It does not affect a contract of sale even if the parties really intended a donation or some other act or contract.

c

51. Which of the following statements regarding the sale of the thing mortgaged in public auction regarding contract of chattel mortgage is correct?

a. The mortgagor is generally entitled to the excess unless there is stipulation to the contrary.

b. The mortgagee may generally recover the deficiency unless there is stipulation to the contrary.

c. Both A and B.

d. Neither A nor B.

c

52. D orally borrowed P1,000 cash from C evidenced with conventional interest of 1% per month. In order to secure the said loan, P orally pledged and delivered the cellphone of D to C. Aside from that, G orally guaranteed the contract of loan of D to C. Among the agreements entered into, which is valid?

a. Contract of loan and contract of guaranty

b. Contract of loan and contract of pledge

c. Contract of guaranty and agreement to pay interest

d. Contract of pledge and contract of guaranty

b

53. It refers to any set of information relating to natural or juridical persons to the extent that, although the information is not processed by equipment operating automatically in response to instructions given for that purpose, the set is structured, either by reference to individuals or by reference to criteria relating to individuals, in such a way that specific information relating to a particular individual is readily accessible.

a. Information and communication system

b. Filing system

c. Data processing system

d. Database system

b

54. He refers to any natural or juridical person or any other body to whom a personal information controller may outsource or instruct the processing of personal data pertaining to a data subject.

a. Personal information controller

b. Personal information processor

c. Personal information custodian

d. Personal information verifier

b

55. It refers to any operation or any set of operations performed upon personal data including, but not limited to, the collection, recording, organization, storage, updating or modification, retrieval, consultation, use, consolidation, blocking, erasure or destruction of data.

a. Evaluating

b. Processing

c. Profiling

d. Assessing

b

56. In sale of personal property in installments whereby a chattel mortgage is constituted on the personal property sold to secure the payment of the price , when is the remedy of foreclosure of chattel mortgage available to the seller?

a. Only when the buyer defaulted in one installment

b. Only when the buyer defaulted in two or more installments

c. When the buyer defaulted to pay any installment

d. When the contract of sale is unenforceable

b

57. In sale of personal property in installments, when the seller avails the remedy of exact fulfillment in case the buyer defaulted to pay any installment, may the seller recover deficiency arising from the public sale of the said personal property?

a. Yes even if not stipulated

b. Yes but only if stipulated

c. No unless there is stipulation for recovery

d. No despite stipulation for recovery

d

61. Under PD 957 also known as Subdivision and Condominium buyer's Protective Decree, who shall pay the Real estate tax and assessment on a lot or unit being developed before the passage of title to buyer?

a. Developer or owner of the project subject to reimbursement by the buyer.

b. Owner or developer without recourse to the buyer.

c. Buyer of the unit.

d. Developer and buyer equally.

b

62. It is an agreement whereby one undertakes for a consideration to indemnify another against loss, damage or liability arising from an unknown or contingent event.

a. Contract of sales

b. Contract of insurance

c. Contract of common carrier

d. Contract of lease

b

63. If two or more persons have made an invention separately and independently of each other, who shall own the right to the patent where two or more applications for registration are filed for the same invention?

a. The applicant who has the earliest filing date or, the earliest priority date.

b. The applicant who has the latest filing date or, the latest priority date.

c. The first person who invented the technology.

d. The first person who presented the technology to a convention.

a

64. On January 1, 2001, Mang Tomas invented the technology of Bamboo Lamp and was using it already for three years. On January 1, 2004, Mang Pedro invented the same technology of Bamboo Lamp. Mang Pedro made an application for registration with Intellectual Property Office. Who has better right over the patent of the technology?*

a. Mang Pedro

b. Mang Tomas

c. Both Pedro and Tomas equally

d. None of them

a

65. L delivered P1,000,000 cash to B as consideration for the orally entered contract of loan. In order to secure the payment of the contract of loan, B and L orally entered into a contract of real estate mortgage over B’s land. Which of the following statements is correct?

a. The contract of loan is unenforceable because it is not in writing.

b. The contract of real estate mortgage is not binding because it is not in public instrument.

c. The contracts of loan and real estate mortgage are binding.

d. The contract of real estate mortgage is unenforceable because it is not registered in Registry of Property.

c

66. Which of the following accessory contracts is divisible by its nature?

a. Contract of pledge

b. Contract of real estate mortgage

c. Contract of chattel mortgage

d. None of the above

d

67. Cherry Mobile Co. commissioned Engineer Reyes to develop a new phone. Engineer Reyes was able to develop the commissioned phone. Who owns the patent over the new phone?

a. Always Cherry Mobile Co.

b. Always Engineer Reyes

c. Generally Cherry Mobile Co. unless otherwise provided in the contract

d. Generally Engineer Reyes unless otherwise provided in the contract

c

68. Samsung Co. employs Engineer Cruz to develop a new phone. Engineer Cruz was able to develop the phone in the course of performance of his regular duties. Who owns the patent over the new phone?

a. Always Samsung Co.

b. Always Engineer Cruz

c. Generally Samsung Co. unless otherwise provided in the contract

d. Generally Engineer Cruz unless otherwise provided in the contract

c

69. In which type of accessory contract is the secured creditor not allowed to recover deficiency from the foreclosure sale of the collateral?

a. Contract of pledge

b. Contract of chattel mortgage

c. Contract of real estate mortgage

d. None of the above

a

70. Which of the following statements is incorrect?

a. The consent of the spouse is not necessary for the validity of an insurance policy taken out by a married person on his or her life or that of his or her children.

b. All rights, title and interest in the policy of insurance taken out by an original owner on the life or health of the person insured shall automatically vest in the latter upon the death of the original owner, unless otherwise provided for in the policy.

c. Both a and b

d. Neither a nor b

d

71. Which of the following is a valid insurance?

a. Insurance for or against the drawing of any lottery

b. Insurance for or against any chance or ticket in a lottery drawing a prize

c. Both a and b

d. Neither a nor b

d

72. What is the nature of a contract of pledge?

a. Consensual contract

b. Real contract

c. Formal contract

d. Solemn contract

b

73. Which of the following is not an obligation of a principal debtor-pledgor?

a. To pay the debt and its interest, with expenses, in a property case, when they are due

b. To pay damages that the pledgee may suffer by reason of the flaws of the thing pledged, if he was aware of such flaws but did not advise the pledgee of the same

c. To pay for the expenses which are necessary for the preservation of the thing pledged

d. To pay to the pledgee the value of the offspring of the animal pledged that arises during the pendency of the contract of pledge

d

74. It is type of foreclosure made through the filling of a petition in court under Rule 68 of Rules of Court and availed of when the deed of real estate mortgage does not contain a special power of attorney (SPA) authorizing the mortgagee-creditor to foreclosure it extrajudicially.

a. Judicial Foreclosure

b. Extrajudicial Foreclosure

c. Legal Foreclosure

d. Conventional Foreclosure

a

75. BDO borrowed P10,000,000 from DLSU-Manila and mortgaged its land. If the mortgagee validly foreclosed the mortgage on the land extra judicially, what is the period allowed by law for the exercise of redemption on the part of mortgagor?

a. Within one year from the date of foreclosure

b. Within three months from the date of foreclosure

c. Within a period of not less 90 days but not more than 120 days from the date of foreclosure

d. Within six months from the date of foreclosure

a

76. In which of the following instances are the goods still in transit?

I. From the time they are delivered to the carrier or other bailee for the purpose of transmission to the buyer, until the buyer or his agent, takes delivery of them from such carrier or other bailee.

II. 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

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

IV. 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.

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

a. I and II

b. III, IV and V

c. I and V

d. II, III and IV

a

77. In what type of waiver by the buyer of warranty against eviction will the seller become fully exempted from liability in case of eviction?

a. Waiver quanti minoris

b. Waiver consciente

c. Waiver redhibitoria

d. Waiver intentionada

d

78. Who shall be entitled to the fruits of the personal property covered by the contract of pledge?

a. Pledgor

b. Pledgee

c. Pledgor and pledgee equally

d. State

a

80. D borrowed P10,000 from C whereby D delivered and pledged his specific watch to C to secure the payment of the loan. Aside from that, G guaranteed in writing the loan of D. At the maturity date of the loan, C voluntarily returned the said watch to D. Which contract is/are extinguished by the return of the watch?

a. Contract of pledge only

b. Contract of pledge and contract of guaranty only

c. Contract of pledge and contract of loan only

d. Contract of pledge, contract of guaranty and contract of loan

a

81. Where shall contract of chattel mortgage involving shares of stocks be registered?

a. Chattel Mortgage Registry where the mortgagor resides

b. Chattel Mortgage Registry where the principal office of the corporation is located

c. Both A and B

d. Neither A nor B

c

82. D borrowed P3,000 cash from C evidenced by a promissory note. In order to secure the said loan, D pledged and delivered his specific watch to C. At the maturity date of the loan, D defaulted in the payment of the loan. This prompted C to sell in public auction the pledged watch which resulted to net proceeds of P2,500. Which contract is extinguished?

a. Contract of loan

b. Contract of pledge

c. Both a and b

d. Neither a nor b

c

83. Which of the following is not a characteristic of contract of real estate mortgage?

a. Accessory contract

b. Formal contract

c. Indivisible contract

d. Inseperable contract

b

84. Which of the following stipulations in a contract of real estate mortgage is valid?

a. A stipulation forbidding the mortgagor-owner from alienating the immovable mortgaged.

b. A stipulation providing that the mortgagee shall become the automatic owner of the property mortgaged upon failure of the debtor to pay the principal obligation.

c. Tipo or upset price which refers to price set by the parties as the amount at which the property at which the property will be sold at public auction.

d. A stipulation prohibiting a second mortgage with respect to property registered under the Torrens System.

d

86. It refers to the right of the mortgagor to repurchase the property within a certain period after it was sold in public auction for the payment of the mortgage debt.

a. Equity of redemption

b. Right of redemption

c. Conventional redemption

d. Right of preemption

b

87. What is the prescriptive period of the accion redhibitoria, accion quanti minoris or all other actions to enforce the seller’s liability for hidden defect?

a. 1 year from the delivery of the thing sold

b. 1 month from the delivery of the thing sold

c. 6 months from the delivery of the thing sold

d. 3 months from the delivery of the thing sold

c

88. S and B entered into a contract of sale of the grains inside the warehouse of S. S delivered the key of the warehouse to B. What type of constructive delivery is present?

a. Traditio clavium

b. Traditio longa manu

c. Traditio brevi manu

d. Traditio constitution possessorium

a

89. It refers to the unauthorized usage by any person of a mark without the consent of the registrant of mark. It also pertains to any reproduction, counterfeiting, copying or colorable imitation of any registered mark or trade-name in connection with the sale, offering for sale, or advertising of any goods, business or services on or in connection with which such use is likely to cause confusion or mistake or to deceive purchasers or others as to the source or origin of such goods or services, or identity of such business.

a. Trademark infringement

b. Unfair competition

c. Trademark misappropriation

d. Unfair theft

a

90. In sale of personal property in installments, when the seller avails the remedy of cancellation of sale in case the buyer defaulted to pay two or more installments, may the seller still retain all the installments he collected from the buyer?

a. Yes provided the stipulation is in writing

b. No despite the agreement for retention or forfeiture

c. Yes provided the forfeiture is not unconscionable under the circumstances

d. No even if the retention is not contra bonus mores

c

91. Which of the following transactions is covered by Recto Law?

a. Loan transaction payable in installment whereby a chattel mortgage is constituted on a movable property

b. Sale of residential house and lot in installment whereby a real estate mortgage is constituted on the said house and lot

c. Both A and B

d. Neither A nor B

d

92. Sony Co. employs Engineer Santos to develop a new phone. Engineer Santos was able to develop new laptop during his breaktime using the resources of Sony Co. Who owns the patent over the new phone?

a. Always Sony Co.

b. Always Engineer Santos

c. Generally Sony Co. unless otherwise provided in the contract

d. Generally Engineer Santos unless otherwise provided in the contract

d

93. It means the unauthorized, replication or use of patented invention or process.

a. Patent laundering

b. Patent infringement

c. Patent misappropriation

d. Patent destruction

b

94. This test of patent infringement means that a resort must be had, in the first instance, to the words of the claim.

a. Literal infringement test

b. Doctrine of equivalents infringement test

c. Dominancy test

d. Holistic test

a

95. A, B and C are co-owners of a specific land. On October 1,2020, A sold his 1/3 share in the said land to D under a deed of pacto de retro sale. On October 2,2020, B also sold his 1/3 share in the said land to D a deed of under pacto de retro sale. On October 3,2020, C also sold his 1/3 share in the said land to D under a deed of pacto de retro sale. Which of the following statements is correct?

a. C may legally compel D for the redemption or repurchase of his 1/3 share in the said land.

b. A cannot legally compel D for the redemption or repurchase of his 1/3 share in the said land.

c. D may legally demand A, B and C to come to an agreement upon the repurchase of the whole land, and if they fail to do so, D cannot be compelled to consent to a partial redemption of the said land.

d. None of the above

a

96. Aligada orally offered to sell his two-hectare rice land to Balane for P 10Million. The offer was orally accepted. By agreement, the land was to be delivered (through execution of a notarized Deed of Sale) and the price was to be paid exactly one-month from their oral agreement. Which statement is most accurate?

a. If Aligada refuses to deliver the land on the agreed date despite payment by Balane, the latter may not successfully sue Aligada because the contract is oral.

b. If Aligada refused to deliver the land, Balane may successfully sue for fulfillment of the obligation even if he has not tendered payment of the purchase price.

c. The contract between the parties is rescissible.

d. The contract between the parties is subject to ratification by the parties.

d

97. It refers to any distinctive mark, characteristic and/or sound in electronic form, representing the identity of a person and attached to or logically associated with the electronic data message or electronic document or any methodology or procedures employed or adopted by a person and executed or adopted by such person with the intention of authenticating or approving an electronic data message or electronic document.

a. Electronic Data Message

b. Electronic Signature

c. Electronic Document

d. Electronic Key

b

98. A and B orally entered into a contract of sale of a specific authentic Coach bag at a price of P10,000. A paid an arras money amounting to P500 at the time of constitution of the contract. The parties agreed that the balance of the price will be paid after one month while the said bag will delivered after one week. At the agreed date of delivery of the bag, B delivered a counterfeited coach bag. What is the best legal remedy available to A?

a. File an action for damages for breach of contract of sale.

b. File an action for annulment of voidable contract of sale.

c. File an action for declaration of nullity of void contract of sale.

d. He has no action because the contract of sale is unenforceable.

a

99. This test of patent infringement means that infringement also takes place when a device appropriates a prior invention by incorporating its innovative concept and, although with some modification and change, performs substantially the same function in substantially the same way to achieve substantially the same result.

a. Literal infringement test

b. Doctrine of equivalents infringement test

c. Dominancy test

d. Holistic test

b

100. This defense may be set up by a respondent in an action for patent infringement when the respondent is any prior user, who, in good faith was using the invention or has undertaken serious preparations to use the invention in his enterprise or business, before the filing date or priority date of the application on which a patent is granted.

a. Doctrine of fair use

b. Doctrine of prior use

c. Doctrine of good faith

d. Doctrine of bad faith

b

104. This general data privacy principle means that the data subject must be aware of the nature, purpose, and extent of the processing of his or her personal data, including the risks and safeguards involved, the identity of personal information controller, his or her rights as a data subject, and how these can be exercised. Any information and communication relating to the processing of personal data should be easy to access and understand, using clear and plain language.

a. Transparency

b. Legitimate purpose

c. Proportionality

d. None of the above

a

105. Which of the following securities measures is not classified as physical security measures?

a. Design of office space and work stations, including the physical arrangement of furniture and equipment, shall provide privacy to anyone processing personal data, taking into consideration the environment and accessibility to the public.

b. The duties, responsibilities and schedule of individuals involved in the processing of personal data shall be clearly defined to ensure that only the individuals actually performing official duties shall be in the room or work station, at any given time.

c. Policies and procedures that prevent the mechanical destruction of files and equipment shall be established. The room and workstation used in the processing of personal data shall, as far as practicable, be secured against natural disasters, power disturbances, external access, and other similar threats.

d. Encryption of personal data during storage and while in transit, authentication process, and other technical security measures that control and limit access

d

106. In entering into any contract with a private service provider that may involve accessing or requiring sensitive personal information, when shall the government agency require such service provider and its employees to register their personal data processing system with the National Privacy Commission?

a. When the processing of sensitive personal information involves one thousand (1,000) or more individuals

b. When the processing of sensitive personal information involves one hundred (100) or more individuals

c. When the processing of sensitive personal information involves ten thousands (10,000) or more individuals

a

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

a. Electronic Data Message

b. Electronic Signature

c. Electronic Document

d. Electronic Key

d

108. It refers to a system intended for and capable of generating, sending, receiving, storing, or otherwise processing electronic data messages or electronic documents and includes the computer system or other similar device by or in which data is recorded or stored and any procedures related to the recording or storage of electronic data message or electronic document.

a. Information and Communication System

b. Database

c. Internal control

d. Computer

a

109. Which of the following statements is correct?

a. The term “addressee” includes a person acting as an intermediary with respect to that electronic data message or electronic data document.

b. The term “originator” includes a person acting as an intermediary with respect to that electronic document.

c. The service provider shall have authority to modify or alter the content of the electronic data message or electronic document received or to make any entry therein on behalf of the originator, addressee or any third party unless specifically prohibited to do so.

d. The service provider shall retain the electronic document in accordance with the specific request or as necessary for the purpose of performing the services it was engaged to perform.

d

110. In property insurance, when must an interest in property insured exist for the insurance contract to be valid?

a. When the property insurance takes effect

b. When the loss occurs

c. Throughout the duration of property insurance contract

d. When the property insurance takes effect and when the loss occurs but need not exist in the meantime

d

1. Samantha bought a Toyota Land Cruiser from Andrew for a total amount of P3,600,000.00 payable in 12 equal monthly installments. The purchase price is secured by a chattel mortgage over the Toyota Land Cruiser. Samantha was able to pay for 6 installments but defaulted in the next 4 installments. Andrew then foreclosed the chattel mortgage. In this case,

a. If the proceeds of the sale is P2,800,000, Andrew can still recover the deficiency.

b. If the proceeds of the sale is P4,000,000, Samantha is entitled to the excess.

c. Andrew may cancel the sale and retain the installment payments.

d. If the proceeds if the sale is P3,000,000, Andrew can no longer recover the deficiency.

d