[PINNACLE] FINAL PREBOARD

According to the Civil Code, obligations may either be:

I. Civil obligations, which are the juridical necessity to

give, to do or not to do, give a right of action to compel

their performance; or,

II. Natural obligations, not being based on positive law but

on equity and natural law, do not grant a right of action to

enforce their performance, but after voluntary fulfillment by

the obligor, they authorize the retention of what has been

delivered or rendered by reason thereof.

A. Both are true.

B. None are true.

C. Only I is true.

D. Only II is true.

A - TT

Marites owed Beshiecakes Php1,000,000.00 due on 01 October

20X0 but failed to pay her on due date. Beshiecakes sent a

demand letter to Marites giving her 5 days from receipt within

which to pay. Two days after receipt of the letter, Marites

personally offered to pay Beshiecakes in manager's check but

the latter refused to accept the same. The 5 days lapsed. May

Marites’ obligation be considered extinguished?

A. Yes, since Beshiecakes’ refusal of the manager’s check,

which is presumed funded, amounts to a satisfaction of the

obligation.

B. No, since tender of payment even in cash, if refused, will

not discharge the obligation without proper consignation

in court.

C. Yes, since Marites tendered payment of the full amount due.

D. No, since a manager’s check is not considered legal tender

in the Philippines.

B

In 2024, A promise to give to B his land if B passes the CPA

board examination in 2025. If the condition is fulfilled,

does A give the fruits for the period of 1 year?

A. Yes, in obligation to give, once the condition is fulfilled

the obligation shall retroact to the day of the

constitution of the obligation.

B. Yes, the creditor shall appropriate the fruits and

interest, unless there is contrary intent.

C. No, if the obligation is unilateral, the debtor shall

appropriate the fruits and interest unless there is

contrary intent.

D. A and B will divide the fruits equally.

C

X obliged himself to give to Y his car on Feb 15, 20X4. There

was no delivery until Feb 20, 20X4 when the garage of Bob’s

house collapsed due to a strong typhoon and the car was

totally destroyed. Is X still liable?

A. No, even if X was already in default, he could plead

impossibility of performance

B. Yes, the obligation to deliver the car is changed to pay

the equivalent value because X is in legal delay

C. No, because there was no demand by Y to deliver the car

and the specific object was lost due to fortuitous event.

The obligation is extinguished

D. Yes, because the contract is perfected

suspensive condition

C

A, B, C, and D are solidary debtors of X for Php40,000. X

released D from the payment of his share of Php10,000. When

the obligation became due and demandable, C turned out to be

insolvent. Should the share of the insolvent debtor C be

divided only between the two other remaining debtors, A and

B?

A. Yes. Remission of D's share carries with it total

extinguishment of his obligation to the benefit of the

solidary debtors.

B. Yes. The Civil Code recognizes remission as a mode of

extinguishing an obligation. This clearly applies to D.

C. No. The rule is that gratuitous acts should be

restrictively construed, allowing only the least

transmission of rights.

D. No. As the release of the share of one debtor would then

increase the burden of the other debtors without their

consent.

D

A issued a check dated January 2, 20X0, in favor of B in

payment of A's obligation to B amounting to Php100,000. B

kept the check in his drawer and failed to encash it due to

his busy schedule. On January 2, 20X1, B presented the check

to the drawee bank for payment. The bank refused to pay the

check for failure of B to present the check within the

reasonable time after its issue. In this case:

Statement I. A's obligation to B is extinguished because the

impairment of the check is due to B’s fault.

Statement II. B can sue the bank because as drawee it is the

party primarily liable.

Statement III. When B accepted the check when A tendered

payment, A's obligation is extinguished.

A. All are true.

B. All are false.

C. Only two are true.

D. Only two are false.

B - FF

M, a minor owns a unique necklace worth Php200,000. G, the

guardian of M, by means of fraud induced X, another minor to

buy the ring for Php150,000, which X did so and G effected

delivery to X. The contract is not in writing. Which is

correct? The contract is:

A. Voidable but G cannot ask for annulment of the contract.

B. Voidable but X can only ask for annulment within 4years

from discovery of the fraud.

C. Unenforceable because M and X are both incapacitated to

give consent.

D. Rescissible because M suffered a lesion of 1/4 of the value

of the ring.

A

As exceptions to the principle of relativity, the third

persons are affected in:

I. Contracts creating real rights.

II. Contracts with stipulations pour autrui.

III. Contracts to defraud creditors.

A. All are true.

B. All are false.

C. Only two are true.

D. Only two are false.

A - TT

A, desiring to buy a certain property, hired an expert to

ascertain its true value. But the expert's opinion turned out

to be wrong and A, the buyer, was therefore misled. May A ask

for the annulment of the contract?

A. Yes, because the opinion was made by an expert

B. No, a mere expression of an opinion does not signify fraud

C. No, because A's own expert committed the error

D. Yes, A has relied on the expert's special knowledge

C

The interpretation that will be used in case of ambiguity

in incidental matters to a contract shall be the least

transmission of rights when the contract is:

A. Onerous

B. Gratuitous

C. Remuneratory

D. Commutative

B

Consider the following:

Statement I. If at the time of making the offer or acceptance

one of the parties was insane, the resulting contract is

voidable.

Statement II. If before the acceptance is conveyed to the

offeror, either of the parties becomes insane, the resulting

contract is void.

Statement III. If after the acceptance is conveyed to the

offeror, either of the parties becomes insane, the resulting

contract is valid.

A. All are true.

B. All are false.

C. Only two are true.

D. Only two are false.

A - TT

The following contracts are not void:

Statement I. Oral contract of donation of a brand-new Apple

Macbook pro.

Statement II. Oral contract of services executed by an agent

with an oral authorization form the principal.

Statement III. Oral contract of partnership which included a

piece of land as contribution from one of the partners.

A. All are true.

B. All are false.

C. Only two are true.

D. Only two are false.

D - FTF

A, B, and C are co-owners 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 cannot 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 one-half of the interest sold by A to B

B

In the following sales of animals there is no warranty

for hidden defects:

I. Sales of animals in fairs.

II. Sales of animals at public auctions.

III. Sales of livestock as condemned.

A. All are true.

B. All are false.

C. Only two are true.

D. Only two are false.

A - TTT

B purchased a residential lot from S for Php1,000,000 on

installment under the following terms: Php200,000 down

payment on January 2, 20X1; Php100,000 every year thereafter

until fully paid. Assume that B defaulted on the very first

installment due on January 2, 20X2. What is the grace period

to pay without additional interest and cash surrender value

earned by B?

A. 60 days and P0 respectively

B. 60 days and P100,000 respectively

C. 30 days and 100,000 respectively

D. No grace period and no cash surrender value

A

The automatic appropriation by the creditor of the thing

pledged or mortgaged upon the failure of the debtor to pay

the principal obligation is called:

A. Nemo Dat Quod Non Habet.

B. Consummatum Est.

C. Pactum commissorium.

D. Constitutum possessorium.

C

X Bank borrowed P100M from ABC Corporation, giving its

warehouse by way of real estate mortgage. X was not able to

pay and ABC Corporation extrajudicially foreclosed the

mortgage. How long is the redemption period in this case?

A. 1 year.

B. 90 to 120 days.

C. Registration of the sale or 3 months, whichever is shorter.

D. There is no right of redemption.

A

The following requisites are essential to the contracts

of pledge and mortgage:

I. these contracts must be constituted to secure the

fulfillment of a principal obligation.

II. the pledgor or mortgagor, who cannot not be a third

person, be the absolute owner of the thing pledged or

mortgaged.

III. 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.

A. All are true.

B. All are false.

C. Only two are true.

D. Only two are false.

C - TFT

The document indicating the required information under

the Truth in Lending Act is called:

A. The customer signature card.

B. The promissory note.

C. The disclosure statement.

D. The mortgage redemption insurance.

C

If there is non-compliance with the requirements of the

Truth in Lending Act, the:

I. contract of loan becomes void.

II. creditor becomes civilly liable to the debtor.

III. creditor incurs criminally liability.

A. All are true.

B. All are false.

C. Only two are true.

D. Only two are false.

C - FTT

A violation of BP 22, has the following elements:

I. the making, drawing, and issuance of any check to apply

for account or for value.

II. the knowledge of the maker, drawer, or issuer that at the

time of issue he does not have sufficient funds in or credit

with the drawee bank for the payment of the check in full

upon its presentment.

III. the subsequent dishonor of the check by the drawee bank

for insufficiency of funds or credit or dishonor for the same

reason had not the drawer, without any valid cause, ordered

the bank to stop payment.

A. Only one is true.

B. Only one is false.

C. All are true.

D. All are false.

C - TTT

Estafa under Art. 315, paragraph 2(d) of the RPC has the

following elements:

I. the offender has postdated or issued a check in payment of

an obligation contracted at the time of the postdating or

issuance.

II. at the time of postdating or issuance of said check, the

offender has no funds in the bank or the funds deposited are

not sufficient to cover the amount of the check.

III. regardless if the payee has been defrauded or not.

A. Only one is true.

B. Only one is false.

C. All are true.

D. All are false.

B - TTF

X is the managing partner in CDA Partnership. Mr. AB, a

third person, owe P10,000 from X personally. Likewise, Mr. AB

also owe P20,000 from the CDA Partnership. One day, Mr. AB

paid P6,000 to X. The managing partner issued a receipt for

Mr. AB’s liability to the CDA Partnership. How much of the

P6,000 should go to X?

A. Php6,000.

B. Php0.

C. Php2,000.

D. Php4,000.

B

Which of the following is included as partnership

property in a universal partnership of all present property

even without stipulation:

A. Properties acquired by gratuitous title.

B. Income from properties acquired by gratuitous title.

C. Profits from properties contributed.

D. Profits from other sources.

C

Brad and Tom orally agreed to form a partnership. Each

contributed cash and real properties worth Php500,000 to a

common fund. But they did not register the partnership with

the SEC. In this case, the partnership contract is:

A. Valid.

B. Void.

C. Voidable.

D. Unenforceable.

B

The following may become part of a limited partnership:

I. Industrial Partner

II. Capitalist Partner

A. Both are true.

B. Both are false.

C. Only I is true.

D. Only II is true.

A - TT

A and B are equal partners in AB partnership by

contributing Php50,000 each on July 1, 20X5. On July 2, 20X5,

the partnership contracted an obligation to pay Z the amount

of Php180,000 payable on August 15, 2025. On August 1, 20X5,

C was admitted as a new partner. C contributed Php50,000. How

will the obligation be paid?

A. A, Php60,000; B, Php60,000; C, Php60,000

B. A, Php90,000; B, Php90,000; C, none

C. A, Php65,000; B, Php65,000; C, Php50,000

D. A, Php180,000 or B, Php180,000 and C, none

C

In relation to the distribution of partnership profit or

loss, consider the following:

I. a stipulation excluding a capitalist partner from losses

is valid.

II. a stipulation excluding a limited partner from losses is

valid.

III. a stipulation excluding an industrial partner from

losses is valid.

A. Only one is true

B. Only one is false

C. All are true

D. All are false

A - FFT

In case of delinquent shares, when a dividend is declared

by the board of directors:

I. Cash dividends shall be applied to the unpaid subscription

balance plus costs and expenses.

II. Stock dividends shall be withheld until unpaid

subscription is fully paid.

III. Property dividends shall not be affected.

A. All are true.

B. All are false.

C. Only one is true.

D. Only one is false.

A - TTT

ABC Corporation issued redeemable shares. Under the

terms of the issuance, the shares shall be redeemed at the

end of 10years from date of issuance at par value plus a

premium of 10%. In relation thereto, consider the following:

I. ABC Corporation would need unrestricted retained earnings

to be able to redeem the shares.

II. Corporations are not allowed to issue redeemable shares;

thus, the issuance by ABC Corporation is ultra vires act.

III. Holders of redeemable shares enjoy a preference over

creditors.

A. All are true.

B. All are false.

C. Only one is true.

D. Only one is false.

B - FFF

The following are not allowed to incorporate as a One

Person Corporation, except:

A. An estate.

B. A bank.

C. An insurance company.

D. A professional for the purpose of exercising his

profession.

A

Vacancy in the board of directors can be filled up by

the remaining directors if still constituting a quorum in the

following cases, except:

A. Resignation of a director.

B. Death of a director.

C. Increase in the number of directors.

D. Absence of a director.

C

In a one person corporation:

I. the president is elected by the single shareholder.

II. the president may be the treasurer at the same time.

III. the president may appoint the same person as both

treasurer and secretary.

A. All are true

B. All are false

C. Only one is true

D. Only one is false

D - FTT

Brad sold all his shares in AAA Hotel Corporation to

Lester. Brad owns 99% of AAA Hotel Corporation. As the new

owner, Lester wanted a reorganization of the hotel which is

to include primarily the separation of all existing employees

and the hiring of new employees. Which statement is most

accurate?

A. With the change in ownership, in effect there is a new

juridical entity and therefore all employees are considered

separated.

B. Despite the change in shareholder, there is actually no

change in the juridical entity and therefore existing

employees can not automatically be considered separated.

C. Lester, as the new shareholder, has the right to retain

only those employees who in his judgment are qualified.

D. For as long as the existing employees are given their

separation pay, they can be terminated.

B

Which of the following corporate acts will not require

the approval of the stockholders or the members of the private

corporation?

A. To amend the bylaws.

B. To increase the capital stock.

C. To invest corporate funds in another corporation or

business.

D. To elect the officers of the corporation.

D

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 appointing Brad as corporate

treasurer. Consider the following:

Statement I. The meeting may be held anywhere even outside

the Philippines.

Statement II. The quorum was majority of 7.

Statement III. The required vote was a majority of the people

constituting the quorum.

A. All are true

B. All are false

C. Only two are true.

D. Only two are false.

C - TTF

A corporate secretary is required to be:

A. A director.

B. A resident of the Philippines.

C. A citizen of the Philippines

D. A resident and citizen of the Philippines.

D

Brad subscribed to 10,000 shares of XYZ Corporation with

a par value of Php 100/share. However, he paid only 25% of

the subscription or Php 250,000. No call has been made on the

unpaid subscription. How many shares is he entitled to vote

at the annual meeting of stockholders of XYZ?

A. 0.

B. 2,500.

C. 5,000.

D. 10,000.

D

Brad subscribed to 10,000, Php1 par value, shares of

Pinnacle, Inc. He was able to pay Php6,000 but was not able

to pay the balance and eventually declared delinquent. In the

delinquency sale with a bid price of Php12,000 (including

costs and expenses relative to the sale), there was no bidder

except the corporation. How many shares will Brad get?

A. 6,000.

B. 5,000.

C. 4,000.

D. None.

D

As a rule, the term of the Trustees of a Non-Stock

Corporation is:

A. 1 year.

B. 2 years.

C. 3 years.

D. 5 years.

C

In a corporation vested with public interest:

I. Independent directors must constitute at least 20% of the

Board of Directors.

II. a compliance officer must be elected.

III. an independent trustee need not be a member of the

corporation.

A. Only one is true.

B. Only one is false.

C. All are true.

D. All are false.

C - TTT

X subscribed 10,000 shares in the capital stocks of AAA

Corporation. He paid 50% of the 10,000 shares. X asked the

Corporate Secretary to issue him the corresponding stock

certificate representing the 50% of what he already paid. The

Corporate Secretary of the corporation refused. Was the

Corporate Secretary correct?

A. The Corporate Secretary is correct because the Revised

Corporation Code provides that no certificate of stock

shall be issued to a subscriber until the shares as

subscribed have been fully paid.

B. The Corporate Secretary cannot refuse because a Stock

Certificate can be issued corresponding to the percentage

of shares which were paid.

C. The Corporate Secretary cannot refuse because a Certificate

of Stock can be issued provided it is indicated in the

Certificate the actual percentage of what has been paid.

D. The Corporate Secretary cannot refuse because it is his

legal duty to issue a stock certificate corresponding to

the number of shares actually subscribed regardless of the

actual payment.

A

This type vacancy in the board of directors may be filled

by the board of directors if the remaining directors still

constitute a quorum.

A. Removal of a director.

B. Increase in the number of directors.

C. Death of a director.

D. Expiration of the term of a director.

C

The following may be the consideration of the shares of

stock of a corporation, except:

A. Previously incurred indebtedness of the corporation

B. Actual cash paid to the corporation

C. Amounts transferred from unrestricted retained earnings

D. Services to be rendered for the corporation.

D

A President, under the Revised Corporation Code, is

required to be the following, except:

A. A shareholder.

B. A resident of the Philippines.

C. A director.

D. A natural person.

B

When by-laws are adopted and filed prior to

incorporation, which of the following is correct?

A. Approved and signed by all the incorporators.

B. Approved by the stockholders representing at least 2/3 of

the outstanding capital stock.

C. Approved by the stockholders representing at least a

majority of the outstanding capital stock.

D. d. Approved and signed by at least 2/3 of the

incorporators.

A

A, B, C, D and E distributed calling cards identifying

themselves as directors of Pinnacle Corporation, to several

individuals during a business conference. In reality,

however, no such corporation is registered with the

Securities and Exchange Commission. X, who received a calling

card granted a loan amounting to Php50,000.00 to “Pinnacle

Corporation” believing that such a corporation really

existed. When the supposed corporation was unable to pay, X

brought a court action against it. At that time, “Pinnacle

Corporation” had assets of Php30,000.00.

A. “Pinnacle Corporation” is liable only up to P30,000.00,

its remaining assets, since it is different from A, B, C,

D and E who are not liable in their individual capacities.

B. X can go after the separate assets of A, B, C, D and E

after exhausting the assets of “Pinnacle Corporation.”

C. A, B, C, D and E can move for the dismissal of the court

action because “Pinnacle Corporation” has no personality

of its own.

D. X cannot allege the lack of juridical personality on the

part of “Pinnacle Corporation” because he is estopped from

doing so.

B

According to the Securities Regulation Code, the

following are considered “qualified buyers,” except:

A. Registered General Professional Partnerships.

B. Banks.

C. Insurance Companies.

A. Registered Investment Houses.

A

According to the Securities Regulation Code, a Reporting

Company may be a:

I. Registered Issuer.

II. Public Company.

A. Both are true.

B. Both are false.

C. Only I is true.

D. Only II is true.

A - TT

According to the Securities Regulation Code, in relation

to “Fraudulent Transactions,” it shall be unlawful for any

person, directly or indirectly, in connection with the

purchase or sale of any securities to engage in the following,

except:

A. Take advantage of a shortage of securities in the market

by controlling the demand side and exploiting market

congestion during such shortages in a way as to create

artificial prices (squeezing the float).

B. Employ any device, scheme, or artifice to defraud.

C. Obtain money or property by means of any untrue statement

of a material fact of any omission to state a material fact

necessary in order to make the statements made, in the

light of the circumstances under which they were made, not

misleading.

D. Engage in any act, transaction, practice or course of

business which operates or would operate as a fraud or

deceit upon any person.

A

Redeemable shares may vote in which of the following

cases?

A. Denial of pre-emptive right.

B. Declaring stock dividends.

C. Amendment of the bylaws.

D. Entering a management contract.

C

According to the Securities Regulation Code, this term

means: (a) the issuer; (b) a director or officer (or person

performing similar functions) of, or a person controlling the

issuer; (c) a person whose relationship or former

relationship to the issuer gives or gave him access to

material information about the issuer or the security that is

not generally available to the public; (d) a government

employee, or director, or officer of an exchange, clearing

agency and/or self-regulatory organization who has access to

material information about an issuer or a security that is

not generally available to the public; or (e) a person who

learns such information by a communication from any of the

foregoing insiders.

A. Beneficial Owner.

B. Related Party.

C. Corporate Raider.

D. Insider.

D

A mandatory Tender Offer shall not be required in the

following instances, except:

A. Any purchase of securities from an increase in authorized

capital stock.

B. Any purchase of securities from the unissued capital stock

resulting to such percentage sufficient to gain control of

the board.

C. Purchase in connection with foreclosure proceedings

involving a duly constituted pledge or security arrangement

where the acquisition is made by the debtor or creditor.

D. Purchases in connection with a privatization undertaken by

the government of the Philippines.

B

According to the Securities Regulation Code, the

requirement of registration under Subsection 8.1 shall not

apply to the sale of any security in any of the following

transactions:

I. At any judicial sale, or sale by an executor,

administrator, guardian or receiver or trustee in insolvency

or bankruptcy.

II. The distribution by a corporation, actively engaged in

the business authorized by its articles of incorporation, of

securities to its stockholders or other security holders as

a stock dividend or other distribution out of surplus.

III. The sale of securities by an issuer to fewer than twenty

(20) persons in the Philippines during any twelve-month

period.

A. All are true.

B. All are false.

C. Only two are true.

D. Only two are false.

A - TTT

The Board should designate a lead director among the

independent directors if the Chairman of the Board is not

independent, including if the positions of the Chairman of

the Board and CEO are held by one person. The functions of

the lead director, among others are the following, except:

A. Serves as an intermediary between the Chairman and the

other directors when necessary.

B. Convenes and chairs meetings of the both executive and non-

executive directors.

C. Contributes to the performance evaluation of the Chairman,

as required.

D. All of the above are functions of the lead director.

B

It means any corporation with a class of equity

securities listed on an Exchange, or with assets in excess of

Fifty Million Pesos (Php50,000,000.00) and has two hundred

(200) or more holders each holding at least one hundred (100)

shares of a class of its equity securities.

A. Two’s Company.

B. Covered Company.

C. Reporting Company.

D. Public Company.

D

POGO, Inc. is 60% owned by Filipinos and 40% owned by

Chinese citizens. QuadComm, Inc. is owned 60% by AFAM Inc.,

25% by other Filipino citizens and the remaining interest by

Koreans. QuadComm, Inc., a public utility, comply with the

minimum Filipino ownership?

A. Yes, under the place of incorporation test

B. Yes, under the grandfather rule

C. No, under the grandfather rule

D. No, under the place of incorporation test

B

In relation to the Codes of Corporate Governance:

I. the revised code of corporate governance requires a minimum

of two (2) independent directors.

II. the code of corporate governance for publicly listed

companies recommends at least three (3) independent directors

a number to constitute at least 1/3 of the board whichever is

higher.

III. the code of corporate governance for public companies

and registered issuers recommends at least two (2)

independent directors or a number to constitute at least 1/3

of the board whichever is higher.

A. Only one is true

B. Only one is false

C. All are true

D. All are false

C - TTT

According to the Cooperative Code, termination of

membership may occur:

I. by withdrawal for any valid reason of a member from the

cooperative by giving a ninety (90) day notice to the board

of directors.

II. with the death or insanity of a member in a primary

cooperative.

III. though the insolvency or dissolution of a member in a

secondary or tertiary cooperative.

A. All are true.

B. All are false.

C. Only two are true.

D. Only two are false.

C - FTT

The following data are provided by ABC Credit

Cooperative, a cooperative already existing for at least five

years:

Based on the Cooperative Code, how much of the net surplus

should be distributed for the community development fund

(CDF)?

A. Php5,400.00

B. Php12,600.00

C. Php90,000.00

D. Php18,000.00

A

In the context of cooperatives, “Bond of Membership”

refers to the conditions where members group themselves to

attain their common goals and objectives which may either be

any of the following, except:

A. Residential

B. Occupational

C. Associational

D. Patriarchal

D

Which fund requires a minimum of 10% for Net Surplus to

be set aside?

A. Reserve Fund

B. Education and Training Fund

C. Optional Fund

D. Community Development Fund

A

As a requirement in registration with the Cooperative

Development Authority, paid-up share capital shall not be

less than what amount?

A. Php5,000

B. Php10,000

C. Php15,000

D. There is no minimum capitalization requirement.

C

Under the PDIC Charter, in relation to entities

classified as banks in the Philippines, the PDIC is:

I. a co-regulator.

II. an insurer.

III. the statutory receiver.

A. All are true

B. All are false

C. Only two are true

D. Only two are false

A - TTT

A bank may be placed under receivership and may

thereafter be liquidated based on any of the following

grounds, except:

A. has notified the Bangko Sentral or publicly announced a

unilateral closure.

B. has insufficient realizable assets, as determined by the

Bangko Sentral, to meet its liabilities.

C. cannot continue in business without involving probable

losses to its depositors or creditors.

D. has willfully violated a cease and desist order under

Section 37 of this Act that has yet to become final.

D

The following exceptions apply to the secrecy of bank

deposits denominated in both foreign local currency and

Philippine pesos:

I. with written permission of the depositor.

II. in cases of impeachment.

III. involving violations of the AMLA.

A. All are true

B. All are false

C. Only two are true

D. Only two are false

C - TFT

S, the creditor of B, filed and won a case for collection

against the latter (B). The court ordered that B’s account be

garnished the amount of $100,000 to satisfy the judgment. B

objected on the ground that the garnishment violated the law

on secrecy of bank deposits.

A. B is not correct because only the Court of Appeals can

order garnishment, as this is equivalent to a bank inquiry

B. B is correct because the Bank Secrecy Law protects the

disclosure of the existence of bank accounts of

depositors.

C. B is not correct because upon order of the court, all

deposits are subject to the rules on garnishment, and the

Bank can comply with the order of garnishment without

violating the Bank Secrecy Law Act

D. B is correct because deposits may not be garnished,

executed upon, attached, and are legally exempt from any

other court process.

D

The Financial Action Task Force (FATF) is an inter-

governmental body established in 1989 by the Ministers of its

Member jurisdictions. The following statements pertain to

FATF, except:

A. In furtherance of its mandate, the FATF can issue freeze

orders and perform bank inquiries without need of a court

order.

B. The FATF is the global money laundering and terrorist

financing watchdog.

C. The FATF is mandated is to set standards and to promote

effective implementation of legal, regulatory and

operational measures for combating money laundering,

terrorist financing and the financing of proliferation.

D. In collaboration with other international stakeholders,

the FATF also works to identify national-level

vulnerabilities with the aim of protecting the

international financial system from misuse.

A

According to the AMLA, the following pertain to a freeze

order issued by the Court of Appeals, except:

A. Upon a verified ex parte petition by the AMLC, the Court

of Appeals should act within 24 hours to determine that

probable cause exists that any monetary instrument or

property is in any way related to an unlawful activity as

defined in Section 3(i).

B. The Freeze Order issued by the Court of Appeals shall be

immediately effective for a period of thirty (30) days.

C. The original period of the Freeze Order may be extended

for a total period of six (6) months.

D. If there is no case filed against a person whose account

has been frozen within the period determined by the Court

of Appeals, not exceeding six (6) months, the freeze order

shall be deemed ipso facto lifted.

B

The law entitled “An Act Defining The Crime Of Money

Laundering, Providing Penalties Therefor And For Other

Purposes” or The Anti-Money Laundering Act of 2001 is

designated as Republic Act No. 9160. Over the years, it have

done through several amendments, the latest one being

Republic Act No.:

A. 11520.

B. 11521.

C. 11522.

D. 11523.

B

Under the AMLA, the term “Covered transaction” refers

to:

Statement I. A transaction in cash or other equivalent

monetary instrument at least Five Hundred Thousand pesos

(Php500,000.00).

Statement II. A transaction at least Five Million pesos

(Php5,000,000.00) or its equivalent in other currencies in

case of casinos.

Statement III. A single transaction at least Seven Million

Five Hundred Thousand pesos (Php7,500,000.00) in cash or its

equivalent in any other currency in cases of real estate

developers and brokers.

A. All are true

B. All are false

C. Only two are true

D. Only two are false

B - FFF

According to the AMLA, the following pertain to a freeze

order issued by the AMLC, except:

A. For purposes of implementing targeted financial sanctions

the AMLC shall have the power to issue, ex parte, an order

to freeze without delay.

B. The freeze order shall be effective until the lapse of six

(6) months from its issuance.

C. The AMLC, if circumstance warrant, may initiate civil

forfeiture proceedings to preserve the assets and to

protect it from dissipation.

D. No court shall issue a temporary restraining order or a

writ of injunction against the freeze order, except the

Court of Appeals or the Supreme Court.

B

What is the proper order of the stages of money

laundering?

A. Layering – Placement – Integration

B. Placement – Layering – Integration

C. Integration – Layering – Placement

D. Placement – Integration – Layering

B

According to the Financial Rehabilitation and Insolvency

Act (FRIA) of 2010, the term debtor does not include the

following, except:

A. Bank of the Philippine Islands (BPI)

B. Sun Life of Canada (Philippines), Inc. (Sunlife)

C. St. Peter Life Plan, Inc. (St. Peter)

D. Philippine Postal Corporation (PhilPost)

D

According to FRIA, a petition for suspension of

payments, requires the following, except:

A. Petitioner is a person, whether natural or juridical.

B. Petitioner has sufficient property to cover all debts.

C. Petitioner foresees the impossibility of meeting the debts

when they fall due.

D. Petitioner files it in the court of the province or city

he has resided for six (6) months prior to the filing.

A

According to FRIA, of 2010, a Stay or Suspension Order

shall have the following effects, except:

A. suspend all actions or proceedings, in court or otherwise,

for the enforcement of claims against the debtor.

B. prohibit the debtor from selling, encumbering,

transferring or disposing in any manner any of its

properties except in the ordinary course of business.

C. suspend any criminal action against the individual debtor

or owner, partner, director or officer of a debtor.

D. prohibit the debtor from making any payment of its

liabilities outstanding as of the commencement date except

as may be provided herein.

C

According to FRIA, existing management may be displaced

by the rehabilitation receiver or management committee upon

clear and convincing evidence of any of the following

circumstances:

Statement I. Actual or imminent danger of dissipation, loss,

wastage or destruction of the debtor’s assets or other

properties.

Statement II. Paralyzation of the business operations of the

debtor.

Statement III. Gross mismanagement of the debtor, or fraud or

other wrongful conduct on the part of, or gross or willful

violation of this Act by, existing management of the debtor

or the owner, partner, director, officer or representative/s

in management of the debtor.

A. All are true

B. All are false

C. Only two are true

D. Only two are false

A - TTT

According to FRIA, in order for an out-of-court or

informal restructuring/workout agreement (OCRA) to be

recognized, it must meet the following minimum requirements,

except:

A. The debtor must agree to the out-of-court or informal

restructuring/workout agreement or Rehabilitation Plan.

B. It must be approved by creditors representing at least

sixty-seven percent (67%) of the secured obligations of

the debtor.

C. It must be approved by creditors representing at least

seventy-five percent (75%) of the unsecured obligations of

the debtor.

D. It must be approved by creditors holding at least eighty

percent (80%) of the total liabilities, secured and

unsecured, of the debtor.

D

According to the Philippine Competition Act, the

“Relevant Market” refers to the market in which a particular

good or service is sold and which is a combination of the:

I. Relevant product market.

II. Relevant geographic market.

A. Both are true

B. Both are false

C. Only I is true

D. Only I is false

A

According to the Philippine Competition Act, the

following are prohibited:

I. Participating in Anti-competitive Agreements.

II. Acquiring a Dominant Position in the Relevant Market.

III. Entering into Mergers and Acquisitions.

A. All are true.

B. All are false.

C. Only one is true.

D. Only one is false.

C

The Government Procurement Reform Act (repealed by RA

No. 12009), is designated as Republic Act No.:

A. 9814.

B. 9418.

C. 9148.

D. 9184.

D

According to the now-repealed Government Procurement

Reform Act, its provisions shall apply to the procurement of:

I. Infrastructure Projects.

II. Goods.

III. Consulting Services.

A. All are true.

B. All are false.

C. Only one is true.

D. Only one is false.

A - TTT

In all insurance contracts, the insured must have

insurable interest. In addition, the following are the other

elements of an insurance contract, except:

A. The insured is subject to a risk of loss by the happening

of the designated peril.

B. The insurer assumes the risk.

C. Such assumption of risk is part of a general scheme to

distribute actual losses among a large group of persons

bearing a similar risk.

D. In consideration of the insurer's promise, the insured may

or may not pay a premium.

D

According to the Insurance Code:

I. An interest in property insured must exist from the time

the insurance takes effect and all throughout, until the loss

occurs.

II. Interest in the life or health of a person insured must

exist when the insurance takes effect but need not exist

thereafter or when the loss occurs.

A. Both are true.

B. Both are false.

C. Only I is true.

D. Only II is true.

D

In a life insurance policy, after proper presentation of

the claim and filing of the proof of death, the claim for

insurance must be settled within:

A. 30 days.

B. 60 days.

C. 90 days.

D. 120 days.

B

XY is a minimum wage earner with a salary of Php570.00

per day. If XY works for 2 hours between 10 p.m. and 6 a.m.,

the salary for the hours covered by the night shift

differential should be:

I. Php156.75 if it were a regular day.

II. Php203.78 if it were a special day.

III. Php313.50 if it were a holiday.

A. All are true.

B. All are false.

C. Only one is true.

D. Only one is false.

A - TTT

According to the Expanded Maternity Leave Law, a female

employee is entitled to the following on account of pregnancy:

I. In case of live childbirth, 105days paid leave benefit,

regardless of mode of delivery.

II. In case of miscarriage and emergency termination of

pregnancy, 60days paid leave benefit.

III. In either case, there is also an option to extend for an

additional 30days without pay.

A. All are true.

B. All are false.

C. Only one is true.

D. Only one is false.

D - TTF

According to the Social Security Act of 2018, the

following may be covered by SSS on a voluntary basis, except:

A. An OFW upon the termination of his/her employment overseas.

B. A covered employee who was separated from employment who

continues to pay his/her contributions.

C. A self-employed member who realizes no income in any given

month who continues to pay his/her contributions.

D. All may be covered by SSS on a voluntary basis.

D

According to the Social Security Act of 2018, if the

disability is permanent partial, the monthly pension shall be

that for permanent total disability, but payable for not

longer than the following periods, except:

A. Complete and Permanent Loss of/Use of one thumb – 10

months.

B. Complete and Permanent Loss of/Use of one big toe – 6

months.

C. Complete and Permanent Loss of/Use of both ears - 31

months.

D. Complete and Permanent Loss of/Use of hearing of both ears

– 50 months.

C

Under the Philippine Lemon Law, the following causes of

non-conformity shall exempt manufacturers, distributors,

authorized dealers or retailers from being held responsible

for defective motor vehicles, except:

A. due to damage to the vehicle due to accident or force

majeure.

B. noncompliance by the consumer of the obligations stipulated

under the warranty.

C. modifications not authorized by the manufacturer,

distributor, authorized dealer or retailer.

D. abuse or neglect of the second hand motor vehicle.

D

A consumer experiencing issues concerning a brand new

motor vehicle, may file a law suit based on:

A. The Philippine Lemon Law only.

B. The Consumer Act only.

C. Both A and B at the same time.

D. Either A or B, alternatively.

D

According to the Intellectual Property Code, one of the

following may not be the subject of copyright:

A. Pictorial illustrations and advertisements.

B. Computer programs.

C. Other literary, scholarly, scientific and artistic works.

D. Reality show format.

D

Based on the Intellectual Property Code, under the Law

on Copyright, the “right of attribution” is considered:

A. A human right.

B. A neighboring right.

C. A moral right.

D. An economic right.

C

The law entitled “An Act Protecting Individual Personal

Information in Information and Communications Systems in the

Government and the Private Sector, Creating for this Purpose

a National Privacy Commission, and for Other Purposes” or The

Data Privacy Act of 2012 is designated as Republic Act No:

A. 10172.

B. 10173.

C. 10174.

D. 10175.

B

Under the Data Privacy Act, the following may be

considered personal information controllers:

I. Persons or organizations who collect, hold, process, use,

transfer or disclose personal information as instructed by

another person or organization; and,

II. Individuals who collect, hold, processe or use personal

information in connection with the individuals’ personal,

family or household affairs.

A. Both are true.

B. Both are false.

C. Only I is true.

D. Only II is true.

B

Under the Data Privacy Act, the following are considered

sensitive personal information:

I. A person’s marital status;

II. A person’s driver’s license details,

III. A person’s scholastic records.

A. All are true.

B. All are false.

C. Only two are true.

D. Only two are false.

A - TTT

Brad, using his own laptop, sent an email to Lester

offering to give his only condominium as a gift. Lester read

the said email and accepted the offer of Brad via direct

message (DM) on Brad’s X (formerly Twitter) account. Consider

the following:

Statement I: The email and the DM are functional equivalents

of written documents.

Statement II. The elements of the contract are in the form of

an electronic data message or electronic document.

Statement III: The contract between Brad and Lester is valid.

A. All are true.

B. All are false.

C. Only two are true.

D. Only two are false.

C - TTF

An acknowledgment of receipt of an electronic document

or electronic message is required:

A. If the law so requires.

B. If the parties have agreed.

C. If the addressee requests for it in writing.

D. If the originator verbally demands for it.

B

The Ease of Doing Business and Efficient Government

Service Delivery Act of 2018 applies to the following:

I. Bureau of Internal Revenue.

II. House of Representatives.

III. Supreme Court.

A. All are true.

B. Only one is true.

C. Only one is false.

D. All are false.

B - TFF

According to the Ease of Doing Business and Efficient

Government Service Delivery Act of 2018, simple transactions

shall be acted upon by the assigned officer or employee within

the prescribed processing time stated in the Citizen’s

Charter which shall not be longer than:

A. three (3) working days.

B. three (3) calendar days.

C. three (3) banking days.

D. three (3) special days.

A