rfbt Flashcards
1
Q
X received Php1,000 from Y which needs to be repaid in 90 days. In this situation:
Statement I: X is the active subject while Y is the active subject;
Statement II: The prestation involves doing something; and,
Statement III: The efficient cause or juridical tie is the law.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
A
B. All are false.
Active Subject- (Y) Passive (X): repaid in 90 days ; Contract
2
Q
D was driving a bus owned by X. D tried to outrun a jeepney which had cut through the lane, but crashed into a car privately owned and driven by C. As result, the passengers in both the bus and car were all either killed or injured. Both vehicles were insured by ABC Insurance Corp. In this situation:
Statement I: The injured passengers may separately claim damages from their respective drivers based on contract;
Statement II: C may be able to claim damages from both D and X liable based on an act or omission punished by law; and,
Statement III: The heirs of the deceased passengers of the car may file suit against the X based on quasi-delict.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
A
C. Only two are true.
3
Q
Delay or default is non-fulfillment of an obligation with respect to time. More paticluarly: Statement
I: Mora solved is delay on the part of the debtor; Statement II: Mora Accipiendi is delay on the part of the creditor; and, Statement III: compensation morae is default of both parties in any
obligation.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false
A
C. Only two are true.
4
Q
Article 1170 of the Civil Code provides for the sources of liability for damages, such as:
Statement
I: Dolo causante; Statement II: Mora Solvendi; and, Statement III: Culpa contractual.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
A
C. Only two are true.
5
Q
The Civil Code provides as a rule that no person shall be liable for fortuitous events and the corresponding loss of the thing shall extinguish the obligation to give, except:
Statement I: when the debtor has incurred delay;
Statement II: when the obligation involves the assumption of risk; and,
Statement III: when the debt is a result of a criminal offense.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
A
A. All are true.
6
Q
The Civil Code provides a condition is a future and uncertain event which may result in the demandability or extinguishment of an obligation. The following are valid conditional obligations:
Statement I: X will give Php1M if A does not swim to the earth’s core;
Statement II: X will give Php1M if A’s ticket are does not win in the lottery; and,
Statement III: X will give Php1M if A’s marriage proposal is declined by B.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
A
A. All are true.
7
Q
The Civil Code provides a “day certain” is that which must necessarily come, although it may not be known when. The following are valid obligations with a period:
Statement I: X will give Php1M when A celebrates her 100th birthday;
Statement II: X will give Php1M when A dies ahead of B; and,
Statement III: X will give Php1M when X recovers from his severe financial difficulties.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false
A
D. Only two are false
8
Q
A, B and C are solidarily liable to X for Php18,000 in 1:2:3 proportion, subject to the following stipulations: A’s share is payable on demand, B’s share is payable on the last day of the next year’s October LECPA, and C’s share is due is X’s son gets accredited as an accounting teacher. In relation thereto:
Statement I: X may demand Php3000 anytime from A, but may only demand the same amount from either B or C when the respective stipulations are fulfilled;
Statement II: Upon arrival of the last day of next year’s LECPA, X may demand Php6,000 from either A or B, but may only demand from the same amount from C only upon fulfillment of the related stipulation; and,
Statement III: Upon X’s son is accredited as an accounting teacher, X may demand Php9,000 from any of the solidary debtors.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
A
B. All are false.
9
Q
X has on obligation to give Php5M, which is secured by a specific horse also worth 5M, to A on July 31 of the current year. On the other hand, A is indebted to X for Php5M due on or before August 31 of the current year. Consider the following:
Statement I: If the horse suddenly dies on July 30, A can decide that the parties will no longer receive anything from each other due to extinguishment of their obligations;
Statement II: On July 31, A can choose not to pay and claim that the obligation as already extinguished; and,
Statement III: If on July 31, X offers the horse as payment instead of the cash and A accepts, the latter can them claim compensation so the parties will no longer have to perform their obligations.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
A
C. Only two are true.
10
Q
D owes P2200 to C which is payable in eleven monthly installments beginning the end of the current month. In this case:
Statement I. D can use coins in denominations of 0.01 to 0.25 to pay only if C agrees to accept payment in such a manner;
Statement II. D can use coins in denominations of 1.00 to 20.00 only if C does not object to such payment; or,
Statement III. D can use BSP Bank Notes to pay with or without C’s consent thereto.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
A
D. Only two are false.
11
Q
Consent is manifested by the meeting of the offer, which is certain, and the acceptance, which must
be absolute, upon the thing and the cause which are to constitute the contract. In relation thereto, 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 void; Statement II. If before the acceptance is conveyed to the offeror, either of the parties becomes insane, the resulting contract is voidable; and,
Statement III. If after the acceptance is conveyed to the offeror, either of the parties becomes insane, the resulting contract is unenforceable.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false
A
B. All are false.
12
Q
Three of the following contracts are void:
Statement I: A contract of pledge where the thing pledged remained with the pledgor;
Statement II: Sale of large cattle which does not follow the prescribed form; and,
Statement III: An undertaking to donate one’s kidneys to science in the event of death.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
A
C. Only two are true.
13
Q
S, a minor, orally sold his only iPad Pro for Php50,000 to B, a demented person, during the latter’s lucid interval. The down payment of Php12,500 was paid at the point of perfection. In this situation:
Statement I: The contract is valid;
Statement II: Only one of the parties may file a case to nullify the contract; and/or,
Statement III: Either party may sue the other to compel performance of their respective obligations in case of breach.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
A
A. All are true.
14
Q
Three of the following may objects of contracts: Statement I: All things which are not within the commerce of man; Statement II: All rights which are not transmissible; and, Statement III: All
services which are contrary to law, morals, good customs, public order or public policy.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
A
B. All are false.
15
Q
Consider the following:
Statement I: Republic Act 386 recognizes both nominate and innominate contracts;
Statement II: Do ut des (I give that you may give) is a nominate contract; and,
Statement III: Facio u facias (I do that you may do) is an innominate contract.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
A
A. All are true.
16
Q
Three of the following contracts are defective: Statement I: A court-approved sale by the guardian of a minor of property worth Php100,000 for a selling price of Php60,000; Statement II: Sale by
a mature-looking minor who pretended to be 25 years old of property worth Php100,000 for a selling price of Php600,000; and, Statement III: Sale of a minor for a selling price of Php6M in
consideration for a better life for the said minor.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false
A
D. Only two are false
17
Q
The following contracts are valid: Statement I: Sale of an son’s prospective share in the net worth his dying father; Statement II: Sale of a car that is still to be manufactured the seller; and,
Statement III: Sale of a kidney the proceeds of which are earmarked for a new iPhone.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
A
D. Only two are false.
18
Q
The following contracts are valid: Statement I: Sale of car on behalf of another without the latter’s consent; Statement II: Sale of a car that is still to be bought by the seller from a third person; and, Statement III: A contract of sale of a car where the true intention of the parties is to transfer it gratuitously.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
A
A. All are true.
19
Q
In the rules on interpretation of contracts: Statement I. If the words of the contract are clear and leave no doubt on the intention of the parties, interpretation of contracts may be proper; Statement
II. In case of gratuitous contracts, doubts shall be resolved in favor of greatest reciprocity of interest; and, Statement III. In onerous contracts, the least transmission of rights and interests shall prevail.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
A
B. All are false.
20
Q
Consider the following: Statement I. Mutual error as to the legal effect of an agreement when the
purpose of the parties is frustrated may result in the reformation of the instrument; Statement II.
Mutual mistake of the parties and the instrument does not express the true agreement will make
the contract voidable; and, Statement III. Mutual confusion as to the terms of the offer and acceptance will have no effect on the contract.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false
A
B. All are false.
21
Q
X bought a residential house from ABC Realty Corp. for a total contract price of Php6M and made
a down payment of Php600,000 and the remainder is to be paid in equal monthly installments of Php50,000. Consider the following: Statement I. If X had paid a total of Php1,200,000, he would be entitled to a grace period of not less than 60days; Statement II. If X had paid a total of
Php3,600,000, he would be entitled to a Php1,800,000; Statement III. If X had paid a total of
Php5,400,000, he would be entitled to Php3,510,000.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false
A
A. All are true.
22
Q
The Realty Installment Buyer Act or Maceda Law if Official designated as Republic Act No.:
A. 6550
B. 6551
C. 6552
D. 6553
A
C. 6552
23
Q
The price in a contract of sale is certain if: Statement I. the price fixed at the closing price of
Meralco Shares on the last trading day of this week; Statement II. the price is pegged to the value of the one ounce of gold; Statement III. if the price if fixed by the seller.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false
A
C. Only two are true.
24
Q
Hamzi, an American citizen based in the USA, went to the Philippines for a vacation. While in
Boracay, she met went on a drinking spree and eventually met Jay, a bartender. While under a
state of drunkenness, Hamzi orally agreed to buy and paid via check the land of Jay in Boracay for P5,000,000, when its fair market value was P500,000 only. Upon receipt of the check, Jay immediately handed over the Transfer Certificate of Title to Hamzi. What is the status of the contract?
A. Rescissible
B. Voidable
C. Unenforceable
D. Void
A
D. Void
25
The law on sales provides for an implied warranty against eviction imposed on the seller. The
parties may however provide for an exemption for the seller via stipulation, which produces the
following effects: Statement I. If the seller acted in bad faith, the stipulation is rendered voidable
due to fraud; Statement II. If the seller if in good faith and the vendee assumed the consequences,
the stipulation remains enforceable; and, Statement III. If the seller if in good faith but the vendee
was unaware of the consequences, the stipulation becomes unenforceable because all the terms
need to be in writing.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
D. Only two are false.
26
The law on sales provides: Statement I. If a team of six horses are bought and one of them has a
redhibitory defect, accion redhibitoria can be availed of for only two of the horses that constitute
a pair; Statement II. If the guide dog was bought as a companion for a visually impaired person turn out to be blind, the sale is voidable due to fraud; Statement III. If a goat was bought and it died within 3 days due to a disease, the seller shall be liable for a proportionate reduction in price
for the number of days it was alive in relation to the average lifespan of a goat.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false
B. All are false.
27
The following are the characteristics of a contract of sale: Statement I. a contract of sale can exist by itself and is not dependent on any other contract; Statement II. requires the delivery of the object of the contract of sale for its perfection; Statement III. rights are acquired in exchange for
a valuable consideration.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
C. Only two are true.
28
On June 1, 20x0, S sold to B 50 units of machines which were scheduled to arrive from Japan. The
sale was evidenced by an invoice identifying each machine by serial number. Each machine was
priced at P100,000.00. Unknown to the parties, 30 units were damaged beyond repair by
seawater on May 31, 20x0. In relation thereto, consider the following: Statement I. B and S retain
their respective rights to compel delivery of 50 machines and to compel payment of the corresponding price; Statement II. B may rescind the whole contract; and, Statement III. S may be compelled to delivery of the remaining 20 units subject to payment of the price therefor.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
C. Only two are true.
29
S and B entered into an agreement and executed a document entitled “Contract of Sale” whereby
S transferred to B a specific car for specific price, while B gave to S a specific amount of cash and
a diamond ring valued at a specific amount. In relation thereto, consider the following: Statement
I. The contract here is a Sale regardless of the values of the items therein; Statement II. The contract here is a Barter or an Exchange if the value of the thing exceeds the money given as part of the
consideration; and, Statement III. The contract here is a Sale if the value of the money given is
greater than the thing given as part of the consideration.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
D. Only two are false.
30
In foreclosures of Real Estate Mortgages: Statement I. There is generally no right of redemption in
judicial foreclosure; Statement II. In case of judicial foreclosures where the bank is the creditor and
extrajudicial foreclosures, there is a 1-year redemption period for natural persons; Statement III. In case of extrajudicial foreclosures where the mortgagor is a juridical person, the redemption
period is at least 90 days.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
C. Only two are true.
31
Pledges are extinguished: Statement I. Upon appropriation by the creditor of the thing pledged if there is a failure to sell in the first and second notarial sale; Statement II. Renunciation or
abandonment, whether express or implied, of the pledge by the pledgee; Statement III. Return of
the thing pledged to the pledgor.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
C. Only two are true.
32
In a Notarial sale of pledges: Statement I. This sale will extinguish the pledge (accessory contract)
but not the principal obligation in case the proceeds are deficient; Statement II. In case the
proceeds of the sale are deficient, the creditor cannot recover the deficiency even if there is a stipulation; Statement III. In case the proceeds exceed the principal obligation, the excess goes to
the creditor even if there is a stipulation.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false
D. Only two are false
33
If in a pledge or mortgage where there are several things are pledged or mortgaged: Statement
I. the debtor who has paid a part of the debt can ask for the proportionate extinguishment of the pledge or mortgage; Statement II. the debtor’s heir who has paid a part of the debt can ask for the proportionate extinguishment of the pledge or mortgage; and, Statement III. the creditor’s heir
who received his share of the debt can return the pledge or cancel the mortgage.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
B. All are false.
34
Pledges and mortgages have common characteristics, such as: Statement I. The contract of pledge
or mortgage may secure all kinds of obligations, be they natural, pure or subject to a suspensive
or resolutory condition, valid obligations embodied in voidable or unenforceable contracts, even
those which are void; Statement II. It is the essence of pledges and mortgages that when the principal obligation becomes due, the things in which the pledge or mortgage consists may be alienated for the payment to the creditor;
Statement III. The creditor cannot appropriate the things given by way of pledge or mortgage, or dispose of them. The parties, however, can stipulate to the contrary.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false
D. Only two are false
35
Chattel mortgages: Statement I. require the existence of a principal contract because the chattel
mortgage cannot exist on its own; Statement II. require registration and an affidavit of good faith
to be binding upon third persons; and, Statement III. can only cover obligations existing at the time of execution and cannot extend to after-incurred obligations.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false
A. All are true.
36
In pledges created by operation of law: Statement I. a thing under a pledge by operation of law
may be sold only after demand of the amount for which the thing is retained and the public auction shall take place within one month after such demand; Statement II. if, without just grounds, the creditor does not cause the public sale to be held within such period, the debtor may require the return of the thing; and, Statement III. after payment of the debt and expenses, the remainder of
the price of the sale shall be delivered to the obligor; however, in case of a deficiency, the rules
on conventional pledges shall apply.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false
C. Only two are true.
37
In relation to the contract of real estate mortgage: Statement I. In addition to the requisites stated
in article 2085, it is indispensable, in order that a mortgage may be validly constituted, that the document in which it appears be recorded in the Registry of Property, otherwise, it is void;
Statement II. The persons in whose favor the law establishes a mortgage have no right to demand
the execution and the recording of the document in which the mortgage is formalized; and,
Statement III. A contract of mortgage is essentially a formal contract.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
B. All are false.
38
. D borrowed 1M from C. The is secured by the property of X worth 1.5M. On due date, D was not able to pay the proper amount. Consider the following: Statement I. If this were a chattel mortgage, the excess of the proceeds from the foreclosure sale will go to D; Statement II. if this were a pledge, the excess of the proceeds from the notarial sale would not go to C; and, Statement III. if this were a real estate mortgage, C cannot demand payment from X.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false
B. All are false.
39
Republic Act No. 3591 is the law that created the Philippine Deposit Insurance Corporation or
PDIC. It has been amended several time over the years, and the most recent amendatory law is
Republic Act No:
A. 10864.
B. 11840.
C. 10149.
D. 11211
B. 11840.
40
RA 3591 as amended provides: Statement I. PDIC is a Government Owned and Controlled
Corporation attached to the Bangko Sentral ng Pilipinas for policy and program coordination;
Statement II. The Vice President and other officials of PDIC shall be appointed and may be removed by its (PDIC’s) President; and, Statement III. PDIC enjoys fiscal and administrative
autonomy.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false
D. Only two are false
41
RA 3591 as amended provides PDIC shall exercise its authority to examine banks and deposit
records, jointly with the BSP, in the following cases: Statement I. There is finding of unsafe and
unsound banking related to deposit-taking; Statement II. There is a failure of prompt corrective
action as declared by the Monetary Board due to capital deficiency; and, Statement III. Whenever
the PDIC deems it appropriate and necessary to join BSP in the conduct of the examination of a
bank..
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
C. Only two are true.
42
RA 3591 as amended provides: Statement I. PDIC is now mandated to provide insurance cover to
Islamic bank products or arrangements classified as deposits by the BSP; Statement II. PDIC may adjust the maximum deposit insurance coverage (beyond Php500,000.00) based on inflation and other relevant economic indicators without the need for legislation; and, Statement III. PDIC shall exclude from deposit insurance coverage deposit account/s or transaction/s subject of the Directive
to Cease and Desist (DCD) issued by the BSP which exclusion shall be effective upon the publication
of the DCD.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
A. All are true.
43
The New Central Bank Act as amended (RA 7653) provides for the “close now, hear later” policy.
This is allowed whenever, upon report of the head of the supervising or examining department,
the Monetary Board finds that a bank: Statement I. has notified the Bangko Sentral or publicly
announced a unilateral closure; Statement II. has been dormant for at least thirty (30) days or in any manner has suspended the payment of its deposit/deposit substitute liabilities; Statement III.
or is unable to pay its liabilities as they become due in the ordinary course of business.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
C. Only two are true.
44
AMLA and its implementing regulations provide for certain principles in the country’s fight against
money laundering. In relation thereto, consider the following: Statement I: Covered persons may be held liable for violation of the Data Privacy Act for reporting covered and suspicious
transactions; Statement II: Covered persons are required to keep records even for longer than 5
years as long as the case is active relative to said transactions; and, Statement III: Lawyers are
generally required to file suspicious transaction reports.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false
C. Only two are true.
45
. In determining the identity of the beneficial owners, CPs should establish the customer’s ownership
structure and understand the ownership at each layer. Usually, the beneficial owner is not one
individual; there may be several beneficial owners in a structure. When there are complex
ownership layers and no reasonable explanation for them, CPs should consider the possibility that
the structure is being used to hide the beneficial owner. In relation thereto: Statement I. Any natural person who directly or indirectly owns more than twenty percent (20%) of the legal person who is a customer of the CP (“Ownership Prong”) shall be considered the beneficial owner; and, Statement
II. Any individual who has “significant” responsibility to control, manage, or direct the legal person (“Effective Control Prong”) will be also be considered the beneficial owner.
A. Both are true.
B. None are true.
C. Only I is true.
D. Only II is true.
D. Only II is true.
46
The following circumstances warrants the filing of a suspicious transaction report: Statement I: The
client is a politically exposed person; Statement II: The client is a casino junket operator; or,
Statement III: The client is not properly identified.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false
D. Only two are false
47
The Financial Action Task Force (FATF) is an inter-governmental body established in 1989 by the
Ministers of its Member jurisdictions. Statement I. The Financial Action Task Force (FATF) is the
global money laundering and terrorist financing guide dog; Statement II. The mandate of the FATF
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,
and other related threats to the integrity of the international financial system; and, Statement III.
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. All are true.
B. All are false.
C. Only two are true.
D. Only two are false
C. Only two are true.
48
AMLA defines several terms, and one of which is “Unlawful activity,” which includes any act or
omission or series or combination thereof involving or having direct relation to a violation of Section
254 of Chapter II, Title X of the National Internal Revenue Code of 1997, as amended: Statement
I. where the deficiency basic tax due in the preliminary assessment is in excess of Twenty-five
million pesos (P25,000,000.00) per taxable year, for all tax types covered and there has been a
finding of probable cause by the competent authority; Statement II. Provided, further, That there
need not be a finding of fraud, willful misrepresenting or malicious intent on the part of the
taxpayer; and, Statement III. Provided, finally, AMLC shall institute forfeiture proceedings to
recover monetary instruments, property or proceeds representing, involving, or relating to a tax crime, even if the same has already been recovered or collected by the Bureau of Internal Revenue (BIR) in a separate proceeding.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
B. All are false.
49
Under the AMLA, the Anti-Money Laundering Council or AMLC, which shall act unanimously in the discharge of its functions, is tasked to implement targeted financial sanctions: Statement I. in relation to proliferation of weapons of mass destruction and its financing; Statement II. including
ex parte freeze, within 24 hours, against all funds and other assets that are owned and controlled,
directly or indirectly, including funds and assets derived or generated therefrom; Statement III. by
individuals or entities designated and listed under United Nations Security Council Resolution
Numbers 1718 of 2006 and 2231 of 2015 and their successor resolutions as well as any binding
resolution of the Security Council.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false
C. Only two are true.
50
AMLA defines several terms, and one of which is “Covered Transaction,” which is: Statement I. a
transaction in cash or other equivalent monetary instrument involving a total amount in excess of
Five hundred thousand pesos (P500,000.00) within one (1) banking day; Statement II. for covered persons under Section 3(a)(8), a single casino cash transaction involving an amount in excess of Five million pesos (P5,000,000.00) or its equivalent in any other currency; and, Statement III. for
covered persons under Section 3(a)(9) herein, a single cash transaction involving an amount in
excess of Seven million five hundred thousand pesos (P7,500,000.00) or its equivalent in any other currency.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
A. All are true.
51
What term refers to the statement “no administrative, criminal, or civil proceedings, shall lie against any person for having made a covered transaction report of a suspicious transaction report in the regular performance of his duties and in good faith, whether or not such reporting results in any
criminal prosecution under this Act or any other Philippine law”?
A. Safe harbor provision
B. Prosecutorial Immunity
C. Nulla Poena Sine Lege
D. These all mean the same thing
A. Safe harbor provision
52
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. 11521.
53
The Guidelines provide that should the beneficial owner be determined to be a “Politically Exposed
Person” (“PEP”), Covered Persons: Statement I. need not obtain senior management approval
before establishing (or continuing, for relationships; existing customers) such business; Statement II.
Conduct enhanced ongoing monitoring on that relationship; and, Statement III. Reassess the risk
profile of the customer and beneficial owner based on the CPs existing policy.
A. All are true.
B. Only two are true.
C. Only one is true.
D. None are true.
B. Only two are true.
54
Under BP 22, consider the following: Statement I: It shall not be the duty of the drawee of any check, when refusing to pay the same to the holder thereof upon presentment, to cause to be
written, printed, or stamped in plain language thereon, or attached thereto, the reason for
drawee’s dishonor or refusal to pay the same; Statement II: When there are no sufficient funds in
or credit with such drawee bank, such fact shall always be explicitly stated in the notice of dishonor
or refusal; and, Statement III. Where the check is drawn by a corporation, company or entity, the person or persons who actually signed the check on behalf of such drawer shall not be liable.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
D. Only two are false.
55
Under B.P. 22, the prosecution must prove: Statement I. the accused issued a check that was
subsequently dishonored; Statement II. the accused was actually notified, via written or oral notice,
that the check was dishonored; and, Statement III. the accused failed, within three banking days
from the date of the check, to pay the holder of the check the amount due thereon or to make
arrangements for its payment.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
D. Only two are false.
56
Our Supreme Court has sanctioned numerous defenses which have acquitted individuals charged
with a violation of BP 22, such as: Statement I. payment of the value of the dishonored check within
three banking days from receipt of the notice of dishonor; Statement II. payment of the value of the check while the criminal case is pending in court; and, Statement III. failure to properly serve a notice of dishonor, orally or in writing, to the issuer.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
B. All are false.
57
Consider the following distinctions: Statement I. a drawer of a dishonored check may be convicted
under Article 315 (2-d) of the Revised Penal Code even if he had issued the same for a preexisting obligation, while under BP 22, such circumstance negates criminal liability; Statement II.
estafa is essentially a crime against property, while violation of BP 22 is principally a crime against public interest as it does injury to the entire banking system; and, Statement III. violations of Article
315 of the Revised Penal Code are mala prohibita, while those of BP22 are mala in se.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false
D. Only two are false
58
As such, this type of estafa (under Art. 315, paragraph 2(d) of the RPC) has the following elements:
Statement I. the offender has postdated or issued a check on account or for value; Statement 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; and, Statement III. regardless
of whether or not the payee has been defrauded.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
D. Only two are false.
59
According to the General Banking Act (RA 8791) and related issuances: Statement I. the fiduciary
nature of banking that requires high standards of integrity and performance; Statement II. the
diligence of good father of a family required of banks where the fiduciary nature of their
relationship with their depositors is concerned; and, Statement III. operations and activities of
banks shall be subject to supervision of the Bangko Sentral.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
C. Only two are true.
60
In relation to the laws on bank secrecy, consider the following: Statement I. According to RA 8791,
no director, officer, employee, or agent of any bank shall, without order of a court of competent
jurisdiction, disclose to any unauthorized person any information relative to the funds or properties
in the custody of the bank belonging to private individuals, corporations, or any other entity,
including bank deposits; Statement II. When the bank deposit is denominated in pesos, the
provisions of RA 6426 shall govern; and, Statement III. If, on the other hand, the deposit is in
foreign currency, RA 1405 should be followed.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
B. All are false.
61
Notwithstanding the laws on bank secrecy, the following are the exceptional cases when the
Commissioner of Internal Revenue may inspect bank deposits: Statement I. When there is
application of compromise liability by a taxpayer on the ground of financial incapacity; Statement
II. To determine the gross estate for computation of estate tax’s liability; and, Statement III. To
determine the taxable income of politicians pursuant to a duly issued letter of authority (LOA) from
the Commissioner of Internal Revenue.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
C. Only two are true.
62
In relation to bank secrecy of foreign currency deposits, consider the following: Statement I. The AMLC can perform a bank inquiry if the deposit is in foreign currency; Statement II. The heirs can
look into the foreign currency deposit previously opened by the deceased; and, Statement III. The
foreign currency deposit of a tourist who committed rape and escaped can be garnished to satisfy
a judgment for damages in favor of the victim.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
A. All are true.
63
In relation to the laws on bank secrecy, the following are considered exceptions common to both Peso and Foreign currency deposits: Statement I. The Financial Rehabilitation and Insolvency Act
(RA 10142); Statement II. The Plunder Law (RA 7080); and, Statement III. Unclaimed Balances Act (Act 3936).
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false
C. Only two are true.
64
The Implementing Rules and Regulations of the Securities Regulation Code define define: Statement I. "Registration statement" as the application for the registration of securities required to be filed with the Commission; and, Statement II. "Prospectus" as the document made by or on behalf of an
issuer, underwriter or dealer to sell or offer securities for sale to the public through a registration
statement filed with the Commission.
A. Both are true.
B. None are true.
C. Only I is true.
D. Only II is true.
A. Both are true.
65
The Implementing Rules and Regulations of the Securities Regulation Code state that no securities shall be sold or offered for sale, or distributed by any person or entity within the Philippines:
Statement I. unless such securities are duly registered with the Commission through Form 12-1, and the registration statement has been declared effective by the Commission; Statement II. except
of a class exempt under Section 9 of the Code or unless sold in any transaction exempt under Section 10 thereof and these Rules; and, Statement III. no information relating to an offering of
securities shall be disseminated unless a registration statement has been filed with the Commission
and the written communication proposed to be released contains the required information under SRC Rule 8.3.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
A. All are true.
65
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: Statement I. Any
evidence of indebtedness issued by a financial institution that has been licensed by the BSP to engage in banking or quasi-banking shall be exempt from registration under Section 8.1 of the
Code; Statement II. Evidence of indebtedness issued to the BSP under its open market and/or
rediscounting operations; and, Statement III. Bills of exchange arising from a bona fide sale of goods and services that are distributed and/or traded by banks or investment houses duly licensed
by the Commission and BSP through an organized market that is operated under the rules
approved by the Commission.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
B. All are false.
66
The law entitled “The Securities Regulation Code” is designated as Republic Act No.:
A. 8798.
B. 8799.
C. 8797.
D. 8796
B. 8799.
67
The Implementing Rules and Regulations of the Securities Regulation Code also state that public and reporting companies shall file with the Commission: Statement I. An annual report on SEC Form 17-A for the fiscal year in which the registration statement was rendered effective by the Commission, and for each fiscal year thereafter, within one hundred five (105) calendar days after the end of the fiscal year; Statement II. A quarterly report on SEC Form 17-Q within forty five
(45) calendar days after the end of each quarter of each fiscal year; and, Statement III. A current
report on SEC Form 17-C, as may be necessary, to make a full, fair and accurate disclosure to the
public of every material fact or event that occurs which would reasonably be expected to affect
the investors' decisions in relation to those securities.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
C. Only two are true.
68
The mandatory tender offer requirement shall not apply to the following: Statement I. Purchases
in connection with corporate rehabilitation under court supervision; Statement II. Any purchase of
securities from an increase in authorized capital stock; Statement III. Purchase in connection with
foreclosure proceedings involving a duly constituted pledge or security arrangement where the
acquisition is made by the debtor or creditor.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
A. All are true.
69
According to the Securities Regulation Code, proxies must be issued, and proxy solicitation must
be made in accordance with rules and regulations to be issued by the Commission. As such:
Statement I. Proxies must be in writing, signed by the stockholder or his duly authorized
representative and filed before or after the scheduled meeting with the corporate secretary;
Statement II. Unless otherwise provided in the proxy, it shall be valid until it is revoked; Statement
III. No proxy shall be valid and effective for a period longer than five (5) years at one time.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false
D. Only two are false
70
Under the SRC, an issuer also shall devise and maintain a system of internal accounting controls
sufficient to provide reasonable assurances that: Statement I. Transactions and access to assets are
pursuant to management authorization; Statement II. Financial statements are prepared in
conformity with generally accepted accounting principles that are adopted by the Accounting
Standards Council and the rules promulgated by the Commission with regard to the preparation
of financial statements; and, Statement III. These are so that recorded assets are accurate and need not be compared with existing assets.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
C. Only two are true.
71
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: Statement I. Employ any device, scheme, or artifice to defraud; Statement II. 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; or, Statement III. Engage in any act, transaction,
practice or course of business which operates or would operate as a fraud or deceit upon any
person.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false
A. All are true.
72
The Implementing Rules and Regulations further provide that Issuers of Registered Securities:
Statement I. shall enter into an underwriting agreement with a commercial bank, investment house
or any other financial institution duly licensed under the Investment Houses Law; however, Statement
II. if the underwriter is part of a group composed of such institutions, the group shall agree on a syndicate manager that shall act on behalf of, and be responsible to, the group and whose actions shall be binding on the members of the group; but, Statement III. An underwriting agreement shall
be always be necessary, including for issuers proprietary/non-proprietary securities and timeshares.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
D. Only two are false.
73
Republic Act No. 10173 refers to:
A. Intellectual Property Code
B. Data Privacy Act
C. Electronic Commerce Act
D. Ease of Doing Business and Efficient Government Service Delivery Act
B. Data Privacy Act
74
Under RA 8293, in relation to copyright, consider the following: Statement I. A satirical version of a song cannot be fair use of the original song; Statement II. The photo-copying of a book which is
out of stock made by a library is may not be shown; or, Statement III. The public performance of a work by a charitable organization where no admission fee is charged is not allowed.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
B. All are false.
75
Under RA 8293, in relation to trademarks, consider the following: Statement I. A trademark need
not be a visible sign as long as it has the quality of distinctiveness; Statement II. A trademark
requires no actual use prior to registration or even thereafter; or, Statement III. A trademark
registration once granted by the IPO is already conclusive regardless of the circumstances.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
B. All are false.
76
RA 8293 provides for the following: Statement I. An invention qualifies for registration as a utility model if it is new, industrially applicable, and involves an inventive step; Statement II. a “mark" cannot be registered if it consists of the name, signature, or portrait of Benigno S. Aquino, Jr.; or,Statement III. a copyright can be obtained for the original iPhone model.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false
B. All are false.
77
Under RA 8293, in relation to patents, consider the following: Statement I. A device which can
quickly detect fake coins being used in self-operated gambling machines used in non-PAGCOR
accredited venues is patentable; Statement II. If Albert Einstein were alive today and applied for
a patent over his theory of general relativity (E = mc2), the application will be granted by the IPO; or, Statement III. X, the wife of Y, together with Atty. M formed a corporation for the purpose of
filing a patent application for X’s invention. Shortly after filing the application, X died due to undisclosed causes. Thereafter, Y (who, while still married, has long been living separately from X)
opposed the application and filed an application of his own. In this case, IPO should decide against of Y.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
B. All are false.
78
RA 8293 and jurisprudence provide for the following definitions: Statement I. An invention patent
is a government-issued grant, bestowing an exclusive right to an inventor over a product or process
that provides any technical solution to a problem in any field of human activity which is new,
inventive, and industrially applicable; Statement II. "Mark" means any visible sign capable of
distinguishing the goods (trademark) or services (service mark) of an enterprise and shall include a stamped or marked container of goods; or, Statement III. “Copyright” is the legal protection
extended to the owner of the rights in an original or derivative work.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false
A. All are true.
79
Republic Act No. 11032 refers to:
A. Intellectual Property Code
B. Data Privacy Act
C. Electronic Commerce Act
D. Ease of Doing Business and Efficient Government Service Delivery Act
D. Ease of Doing Business and Efficient Government Service Delivery Act
80
RA 10173 defines the term “Personal Data Breach,” which may be in the nature of: Statement I.
an availability resulting from the unauthorized disclosure of or access to personal data; Statement
II. an integrity breach resulting from alteration of personal data; and/or, Statement III. a confidentiality breach resulting from loss, accidental or unlawful destruction of personal data.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
D. Only two are false.
81
. RA 10173 and its related issuances require the mandatory registration of the Data Processing
Systems of the following: Statement I. A PIC or PIP that employs one hundred fifty (150) or more persons; Statement II. those processing sensitive personal information of one hundred (100) or more individuals; or, Statement III. those processing data that will likely pose a risk to the rights and freedoms of PICs or PIPs.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
B. All are false.
82
Under the Data Privacy Act, the data subject has the right to furnished certain information before
the entry (or at the next practical opportunity) of personal information into a processing system of a PIC. However, this is not applicable if the: Statement I. personal information be needed pursuant
to a subpoena; Statement II. collection and processing are for obvious purposes; or, Statement III.
information is being collected and processed as a result of legal obligation.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
A. All are true.
83
RA 10173 defines the term “Personal Information Controller” as: Statement I. a person or organization who controls the collection, holding, processing or use of personal information;
Statement II. a person or organization who instructs another person or organization to performs
such functions; and/or, Statement III. an individual who performs such functions in connection with
the individual’s personal, family or household affairs.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false
C. Only two are true.
84
Under the RA 10173, the following are considered personal information: Statement I. Data
collected discloses the number of PhilHealth-covered persons; Statement II. Data collected is
composed of fingerprints; and/or, Statement III. Data collected reveals 20% of the employees in
a company are between 25 to 35 years old.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false
D. Only two are false
85
Under RA 10173 “Sensitive Personal Information” may refer to: Statement I. any and all forms of
data which under the Rules of Court and other pertinent laws constitute privileged communication;
Statement II. personal information specifically established by an executive order or an act of Congress to be kept classified; and/or, Statement III. personal information issued by government
agencies peculiar to an individual.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
C. Only two are true.
86
In relation to the right to privacy, one of the following statements is not correct:
A. The right to privacy means “to be free from unwarranted publicity,” or “to live without
unwarranted interference by the public in matters in which the public is not necessarily
concerned.”
B. Our Constitution and other laws have created “zones of privacy which are recognized and
protected in our laws. Within these zones, any form of intrusion is impermissible unless excused by law and in accordance with customary legal process.”
C. The three strands of the right to privacy, are: (1) locational or situational privacy; (2) informational privacy; and (3) interdimensional privacy.
D. The Data Privacy Act is concerned with only one strand of the right to privacy
C. The three strands of the right to privacy, are: (1) locational or situational privacy; (2) informational privacy; and (3) interdimensional privacy.
87
Republic Act No. 8293 refers to:
A. Intellectual Property Code
B. Data Privacy Act
C. Electronic Commerce Act
D. Ease of Doing Business and Efficient Government Service Delivery Act
A. Intellectual Property Code
88
RA 8792 provides for the following concepts: Statement I. Statutory Interpretation - Unless otherwise expressly provided for, the interpretation of this Act shall give due regard to its national
origin and the need to promote uniformity in its application and the observance of good faith in domestic trade relations. Statement II. Variation by Agreement - As between parties involved in
generating, sending, receiving, storing or otherwise processing electronic data message or
electronic document, any provision of this Act shall be obligatory and may not be varied by
agreement between and among them. Statement III. Reciprocity - All benefits, privileges,
advantages or statutory rules established under this Act, including those involving practice of
profession, shall be enjoyed only by parties whose country of origin grants the same benefits and
privileges or advantages to Filipino citizens.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
D. Only two are false.
89
RA 8792’s IRR provides a service provider shall not be subject to any civil or criminal liability in
respect of the electronic data message or electronic document for which it merely provides access
to as long as the service provider: Statement I. is not aware of the facts or circumstances from
which it is apparent, that the making, publication, dissemination or distribution of such material is
unlawful or infringes any rights subsisting in or in relation to such material; or, Statement II. does
not knowingly receive a financial benefit directly attributable to the unlawful or infringing activity; or Statement III. does not directly commit any infringement or other unlawful act and does not
induce or cause another person or party to commit any infringement or other unlawful act and/or does not benefit financially from the infringing activity or unlawful act of another person or party.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
A. All are true.
90
RA 8792 provides for the following violations and penalties: Statement I. Hacking or cracking shall be punished by a minimum fine of one hundred thousand pesos (P100,000.00) and a maximum
commensurate to the damage incurred and a mandatory imprisonment of six (6) months to three
(3) years; Statement II. Piracy shall be punished by a minimum fine of one hundred thousand pesos
(P100,000.00) and a maximum commensurate to the damage incurred and a mandatory
imprisonment of six (6) months to three (3) years; and, Statement III. Other violations of the
provisions of RA 8792 shall be penalized with a maximum penalty of one million pesos
(P1,000,000.00) or six-(6) years imprisonment.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
A. All are true.
91
RA 8792’s IRR provides for the following definitions: Statement I. “Electronic data message” refers
to information or the representation of information, data, figures, symbols or other modes of written
expression, described or however represented, by which a right is established or an obligation
extinguished, or by which a fact may be proved and affirmed, which is received, recorded,
transmitted, stored, processed, retrieved or produced electronically; Statement II. “Electronic
document” refers to information generated, sent, received or stored by electronic, optical or similar means, but not limited to, electronic data interchange (EDI), electronic mail, telegram, telex or
telecopy; Statement III. “Electronic signature” 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. All are true.
B. All are false.
C. Only two are true.
D. Only two are false
D. Only two are false
92
According to RA 8792, the State recognizes: Statement I. the vital role of information and communications technology (ICT) in nation-building; Statement II. the need to create an information friendly environment which supports and ensures the availability, diversity and affordability of ICT products and services; and, Statement III. the primary responsibility of the public sector in
contributing investments and services in telecommunications and information technology.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
C. Only two are true.
93
Republic Act No. 8792 refers to:
A. Intellectual Property Code
B. Data Privacy Act
C. Electronic Commerce Act
D. Ease of Doing Business and Efficient Government Service Delivery Act
C. Electronic Commerce Act
94
RA 11032 provides that all offices and agencies providing government services shall be subjected
to a Report Card Survey (“RCS”). Its objectives are to: Statement I. obtain feedback on ow the
provisions in the Citizen’s Charter and provisions of RA No. 11032 are being followed and how
the agency is performing; Statement II. obtain information and/or estimates of hidden costs incurred by applicants or requesting parties to access government service which may include, but
are not limited to, bribes and payment to fixers; and, Statement III. provide for the basis for the
grant of awards, recognition and/or incentives for excellent delivery of services in all government services.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false
A. All are true.
95
RA 11032 provides for the adoption of a zero-contact policy which means contact with any applicant or requesting party is prohibited unless contact is allowed by law or is strictly necessary, such as when: Statement I. during preliminary assessment of the request and evaluation of
sufficiency of submitted requirements; Statement II. it is time for payment of required fees when
the government agency or office does not have an electronic/online payment facility; and,
Statement III. inspection, training or meeting with the applicant is an integral part of the application process for a simple, complex, or highly technical transaction.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
C. Only two are true.
96
RA No. 11032 provides that the processing and approval or licenses, clearances, permits,
certifications or authorizations for the installation and operation of telecommunication, broadcast
towers, facilities, equipment and service shall be: Statement I. a nonextendible period of seven (7)
working days for those issued by the barangay, LGUs and NGAs; Statement II. a nonextendible
period of twenty (20) working days when the approval of the appropriate local legislative body
is necessary; and, Statement III. a nonextendible period of thirty (30) working days is granted the
officers of the homeowners association to give its consent or disapproval for homeowners and other community clearances.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
D. Only two are false.
97
RA No. 11032 provides for the following members of the Anti-Red Tape Authority: Statement I. the Director General whose tenure is co-terminous with the President of the Philippines; Statement II. the three (3) Deputy Directors General whose tenure is co-terminous with the President of the
Philippines; and, Statement III. the Secretaries of DTI, DICT, DILG and DOF whose tenure is co terminous with the President of the Philippines:
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
D. Only two are false.
98
RA No. 11032 applies to all government offices and agencies whether located in the Philippines
or abroad, that provide services covering business and nonbusiness related transactions as defined in this Act, including: Statement I. Business Permits and Licensing Department Quezon City; Statement II. RDO No. 39 of the Bureau of Internal Revenue; and, Statement III. Notarial Division
of the Regional Trial Court of Makati.
A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.
C. Only two are true
99
That when the consumer transaction was entered into, the consumer was unable to receive a substantial benefit from the subject of the transaction. This is an example of:
a. Unfair sales practices
b. Unconscionable sales practices
c. Deceptive sales practices
d. All of the choices
d. All of the choices
100
A dealer of a consumer product would be liable for the warranty if he fails to provide a sales report to the manufacturer within __ days from the sale.
a. 15 days
b. 30 days
c. 60 days
d. 90 days
b. 30 days
101
Which of the following is NOT considered mislabeling for Food, Cosmetics, Drugs and Devices?
a. if its labeling is false or misleading in any way
b. if its in package form unless it bears a label conforming to the requirements
of the Consumer Protection Act or the regulations promulgated therefor
c. if any word, statement or other information required by or under authority
of the Consumer Protection Act to appear on the principal display panel of the label or labeling is not prominently placed thereon with such
conspicuousness as compared with other words, statements, designs or devices
in the labeling and in such terms as to render it likely to be read and understood by the ordinary individual under customary conditions of purchase and use
d. if its container is so made, formed or filled as to be misleading
e. None of the choices
e. None of the choices
102
Under the Philippine Lemon Law, any defect on the vehicle must undergo 4 separate attempts. What’s the next step?
a. File a case with the DTI
b. File a request for mediation
c. Bring the vehicle for a last repair attempt
d. Provide notice of the intention to invoke the Lemon Law
d. Provide notice of the intention to invoke the Lemon Law
103
If a vehicle would be replaced or the purchase price refunded, a reasonable allowance for use will be provided. If the vehicle was originally purchased for P2,000,000, indicated a distance in the odometer of 12,000 kms over the 6 months of use, how much would be such reasonable allowance for use?
a. P120,000
b. P200,000
c. P240,000
d. P300,000
b. P200,000
reasonable allowance for use: whichever is LOWER
a) 20% x price x months used/12 or
20% x 2M x 6/12 = 200,000 = LOWER
b) (distance travelled/100k kms) x price
12k/100k x 2M = 240,000
104
If a petition for rehabilitation is filed and the court finds that the rehabilitation
is not feasible, the course of action to be taken would be:
a. To give course to the petition
b. To deny the petition
c. To convert the proceedings to liquidation
d. To require to debtor to submit additional proof
c. To convert the proceedings to liquidation
105
Which of the following may be approved by the court even without the required support
of the creditors?
a. Court-supervised rehabilitation
b. Pre-negotiated rehabilitation
c. Out-of-court rehabilitation
d. None of the choices
a. Court-supervised rehabilitation
106
A stay order would be applicable to ____ and would last _____.
a. Court-supervised rehabilitation; 3 months
b. Suspension of payments; 3 months
c. Court-supervised rehabilitation; as long as the proceedings continue
d. Suspension of payments; as long as the proceedings continue
c. Court-supervised rehabilitation; as long as the proceedings continue
107
Involuntary liquidation of an juridical debtor would require debts of:
a. At least P500,000
b. More than P500,000
c. P1,000,000 or 25% of the outstanding capital, whichever is higher
d. P1,000,000 or 25% of the outstanding capital, whichever is lower
c. P1,000,000 or 25% of the outstanding capital, whichever is higher
108
The period of confirmation of a rehabilitation plan in a court-supervised
rehabilitation must not exceed:
a. 6 months
b. 1 year
c. 18 months
d. 2 years
b. 1 year
more than 1 year - convert to liquidation
109
Which of the following apply only to a Suspension of Payments proceeding:
a. Applies to both individual and juridical debtors
b. It may be voluntary or involuntary
c. It may apply only to a debtor who is technically insolvent
d. Secured debtors rights are suspended
c. It may apply only to a debtor who is technically insolvent
110
The following are the options available to a secured creditor in the event of liquidation, except:
a. waive his right under the security or lien, prove his claim in the liquidation
proceedings and share in the distribution of assets of the debtor
b. Maintain his rights under the security or lien. In which case, the value of the property may be fixed by the liquidator
c. The liquidator may sell the property and satisfy the secured creditor’s entire
claim from the proceeds of the sale
d. The secured creditor may enforce the lien and foreclose on the property
b. Maintain his rights under the security or lien. In which case, the value of the property may be fixed by the liquidator
111
Imposing barriers to entry or committing acts that prevent competitors from growing
within the market in an anti-competitive manner is an example of:
a. Anti-Competitive Agreement
b. Abuse of Dominant Position
c. Prohibited Mergers and Acquisitions
d. All of the choices require at least two parties
b. Abuse of Dominant Position
112
Which of the following is prohibited per se under the Philippine Competition Act?
a. Restricting competition as to price, or components thereof, or other terms of trade
b. Having a dominant position in a relevant market
c. Acquiring an entity and obtaining control over the same who is a competitor
d. All of the choices
a. Restricting competition as to price, or components thereof, or other terms of trade
113
Which of the following is market allocation?
a. Restricting competition as to price, or components thereof, or other terms of trade
b. Fixing price at an auction or in any form of bidding including cover bidding, bid suppression, bid rotation and market allocation and other analogous practices of bid manipulation
c. Setting, limiting, or controlling production, markets, technical development, or investment
d. Dividing or sharing the market, whether by volume of sales or purchases, territory, type of goods or services, buyers or sellers or any other means
d. Dividing or sharing the market, whether by volume of sales or purchases, territory, type of goods or services, buyers or sellers or any other means
114
Parties to the merger or acquisition agreement wherein the value of the transaction
exceeds _____ are prohibited from consummating their agreement until thirty (30) days after providing notification to the Commission in the form and containing the information specified in the regulations issued by the Commission.
a. P1,000,000,000
b. P3,200,000,000
c. P5,000,000,000
d. P10,000,000,000
a. P1,000,000,000
115
The following may be covered by the compulsory notification requirement under the Philippine Competition Act, except:
a. Two companies joining together where one is absorbed by the other
b. Two companies joining together to form a new corporation
c. Acquisition by one company of all or substantially all the assets or shares
of another corporation thereby obtaining control
d. None is an exception
d. None is an exception
116
First Statement: Having a dominant position is generally prohibited unless otherwise proven.
Second Statement: An agreement may not necessarily be deemed a violation of the Philippine Competition Act, if the transaction contributes to improving the
production or distribution of goods and services or to promoting technical or economic progress, while allowing consumers a fair share of the resulting benefits.
Third Statement: The acquisition of the stock or other share capital of one or more corporations solely for investment and not used for voting or exercising control and not to otherwise bring about, or attempt to bring about the prevention, restriction,
or lessening of competition in the relevant market is still prohibited
a. Only 1 statement is correct
b. Only 2 statements are correct
c. All 3 statements are correct
d. None of the 3 statements are correct
a. Only 1 statement is correct
False; True; False (not prohibited)
117
Which of the following stages of competitive bidding in the Government Procurement
Law uses a pass/fail criteria?
a. Preliminary Examination
b. Post-Qualification
c. Eligibility Check
d. Opening of Bids
a. Preliminary Examination
118
In the preliminary examination of bids,
a. The technical component is opened first
b. The financial component is opened first
c. Both the technical and financial components are opened together
d. The Bids and Awards Committee decides which component to open first
a. The technical component is opened first
119
A bid for consulting services that passes the post-qualification stage is referred
to as:
a. The lowest calculated responsive bid
b. The highest calculated responsive bid
c. The lowest rated responsive bid
d. The highest rated responsive bid
d. The highest rated responsive bid
calculated responsive bid - for goods and infrastructure
rated responsive bid - services
120
The approval of the recommendation of the BAC of the winning bidder is ____ if a higher authority approval is needed:
a. 10 calendar days
b. 15 calendar days
c. 20 calendar days
d. 30 calendar days
c. 20 calendar days
121
Those sold by an exclusive dealer or manufacturer, which does not have sub-dealers selling at lower prices and for which no suitable substitute can be obtained at more
advantageous terms to the government:
a. Limited Source Bidding
b. Direct Contracting
c. Negotiated Procurement
d. Repeat Order
b. Direct Contracting
no choice and government
122
Resort to Repeat Order would be allowable if the additional quantity of goods to be secured does not exceed ___ of the original quantity:
a. 10%
b. 25%
c. 50%
d. 100%
b. 25%
123
Payments under the insurance contract is contingent upon the happening of an event which may or may not happen or that which may happen at an indeterminate time. This refers to which characteristic of an insurance contract?
a. Risk-distributing device
b. Contract of adhesion
c. Aleatory
d. Contract of indemnity
c. Aleatory
124
Insurable interest is required to exist both at the time the insurance was taken out and at the time of loss:
a. Life Insurance
b. Property Insurance
c. Both Life and Property Insurance
d. Neither Life nor Property Insurance
b. Property Insurance
Life Insurance - required only at the time it was taken out only
125
Precious stones, jewels, jewelry, precious metals, whether in course of
transportation or otherwise may be covered by which type of insurance?
a. Marine insurance
b. Fire insurance
c. Casualty insurance
d. Variable insurance
a. Marine insurance
Marine insurance - perils of the sea and perils of the ship
Fire Insurance - covered all natural calamities (earthquake/tornado/lightning)
Casualty Insurance - accidents/mishaps
Variable insurance - value varies
126
The maximum pay-out in an industrial life insurance
a. 50x the statutory minimum wage
b. 100x the statutory minimum wage
c. 500x the statutory minimum wage
d. 1000x the statutory minimum wage
c. 500x the statutory minimum wage
127
Which of the following would require materiality before it can be a ground to cancel
the insurance contract?
a. False Representation
b. Concealment
c. Breach of Warranty
d. All of the choices
d. All of the choices
ALL = Uberrimae fidei or "uberrima fides" means "utmost
good faith"
128
A claim under a life insurance is required to be settled ___ days after the presentation of the claim and proof of death.
a. 15 days
b. 30 days
c. 60 days
d. 90 days
c. 60 days
129
Sanji’s regular working hours are 1-10pm with a 1 hour lunch break from 5-6pm. In a particular day, he worked 3 hours overtime. How much would be the total pay he would
receive for that day if he receives a regular pay of P800/day?
a. P1,212.50
b. P1,205.00
c. P1,190.00
d. P1,175.00
a. P1,212.50
8 hours - 800
overtime pay - (3hrs*100) *125%
night shift differential - 375*10%
130
If an employee worked during his rest day that is at the same time a regular holiday, the pay he would be entitled to is equivalent to:
a. 130%
b. 150%
c. 169%
d. 260%
d. 260%
An employee who works on a regular holiday which falls on their rest day shall be paid an additional 30% of the daily rate of 200%.(Basic wage x 200% x 130).
131
Under Proclamation No. 368 dated 11 October 2023, which of the following is a regular holiday?
a. Ninoy Aquino Day
b. Christmas Day
c. All Saints’ Day
d. Feast of the Immaculate Conception of Mary
b. Christmas Day
a, c, d - special holidays
132
Which of the following entitles an employee to 5 days leave with pay?
a. Solo Parent Leave
b. Paternity Leave
c. VAWC Victims’ Leave
d. Service Incentive Leave
d. Service Incentive Leave
Cumulative and convertible to cash is
for Service Incentive Leave only
7 days; 7 days; 10 days; 5 days
133
First Statement: The 13th month pay is equivalent to 1 month salary
Second Statement: The 13th month pay must be paid not later than November 30
Third Statement: The 13th month pay may be given as Christmas bonus in the form of goods
a. Only 1 statement is true
b. Only 2 statements are true
c. All 3 statements are true
d. All 3 statements are false
d. All 3 statements are false
total basic pay/12; not later than December 24; cash only
134
Which of the following compulsory members is not required to pay the entire 14%
contribution for 2024?
a. Employees
b. Self-employed individuals
c. Overseas Filipino Workers
d. All of the choices are required
a. Employees
135
If an employee had CYS of service equivalent to 25 years and an average monthly salary credit of P15,000, how much is his monthly pension in case of permanent total
disability?
a. P9,300
b. P8,800
c. P8,300
d. P7,800
a. P9,300
136
First Statement: In no case shall the daily sickness benefit be paid longer than 90
days in one 1 calendar year.
Second Statement: Any unused portion of the sickness benefit in a year can be carried forward and added to the total number of compensable days allowable in the subsequent year
Third Statement: The daily sickness benefit shall not be paid for more than 240 days
on account of the same confinement
Fourth Statement: The sickness benefit is equivalent to 90% of the average monthly salary credit
a. Only 1 statement is correct
b. Only 2 statements are correct
c. Only 3 statements are correct
d. All 4 statements are correct
a. Only 1 statement is correct
should be 120 days; noncumulative; true; daily
137
The maternity leave with pay that a female member is entitled to in case of
miscarriage if she avails of the additional 30 days allowable by law:
a. 60 days
b. 75 days
c. 90 days
d. 120 days
a. 60 days
138
For the year 2024, if a kasambahay receives P3,000 monthly salary, what would be his/her monthly salary credit for purposes of determining the SSS contribution?
a. P3,000
b. P3,500
c. P4,000
d. P5,000
a. P3,000
139
Luffy obliged himself to deliver the Wado Ichimonji to Zoro. If Luffy fails to perform his obligation, what is/are the remedies of Zoro?
a. Specific Performance
b. Substitute Performance
c. Both A and B
d. Neither A nor B
a. Specific Performance
140
Which of the following is not a conditional obligation?
a. D will pay C P10,000, 15 days after the former’s graduation
b. D will pay C P10,000, as soon as his financial means permit him to do so
c. D will pay C P10,000, after passing the 2024 October CPA Board Exams
d. D will pay C P10,000, 10 days after he marries X
b. D will pay C P10,000, as soon as his financial means permit him to do so
obligation with a period
141
Chopper, while driving recklessly the cab of his employer Usopp, hit a Meralco post and caused injury to Nami, a passenger. Nami can sue Usopp under:
I. Contract
II. Quasi-Contract
III. Delict
IV. Quasi-Delict
a. All of the above
b. All except II
c. III and IV only
d. I and IV only
b. All except II
142
The defense that the employer exercised due diligence in the selection and
supervision of the employee is valid against which liability?
I. Vicarious liability under Quasi-Delict
II. Subsidiary liability under Delict
a. Both I and II
b. I only
c. II only
d. Neither I nor II
b. I only
143
Robin promised to deliver to Franky the Radical Beam, a laser machine subject to the condition that the latter would have to complete the construction of the Thousand Sunny. During the pendency of the condition, however, the Radical Beam was lost without the fault of Robin. In this case,
a. The obligation is extinguished
b. The obligation is extinguished but Robin is liable for damages
c. Franky can choose to have the delivery still and ask for damages
d. Franky suffers the impairment
a. The obligation is extinguished
144
W, X, Y, Z are solidarily indebted to C for P40,000. When C demanded payment from W, the latter refused claiming that X is a minor, Y’s share was already condoned and that Z is undergoing a rehabilitation in court. How much is W required to pay C?
a. P40,000
b. P30,000
c. P20,000
d. P10,000
c. P20,000
145
There is ______ when, through insidious words or machinations of one of the contracting parties, the other is induced to enter into a contract which, without them, he would not have agreed to
a. Violatio
b. Dolo
c. Culpa
d. Mora
b. Dolo
breach; fraud; negligence; delay
146
D is indebted to C for P100,000 secured by a mortgage executed by M on his lot and
a guaranty by G. Which of the following is false if M offers to pay the loan?
a. C can be compelled to accept the payment
b. M will be subrogated to the rights of C
c. M can later on collect from G if D fails to pay M
d. If it turns out that D already paid half of the loan, M can only collect P50,000
d. If it turns out that D already paid half of the loan, M can only collect P50,000
147
Ms. Lessee rented an apartment unit from Mr. Lessor. They agreed that Ms. Lessee would pay for a one-month deposit and one-month advance and would shoulder all utility costs during the length of her possession. Ms. Lessee, without notice, left the apartment unit and never returned, leaving an unpaid electric bill of P4,800.
From whom can the electric company collect?
a. Ms. Lessee
b. Mr. Lessor
c. Both, equally
d. Neither
b. Mr. Lessor
148
Compensation is not proper in all of the following cases, except:
a. Deposit on the part of the depositary
b. Bail as to the bailor
c. Support as to the one obliged to give support
d. Civil liability arising from a penal offense
b. Bail as to the bailor
should be bailee
149
Which of the following is considered legal tender?
a. Manager’s check
b. Certified check
c. Cashier’s check
d. None of the choices
d. None of the choices
Coins above 1 peso - 2,000 (old 1,000)
Coins below 1 peso -200(old 100)
150
The following are void contracts, except:
a. Contract of sale between the guardian and his ward concerning the property of the latter.
b. Contract of long-term lease between the executors and administrators and the estate concerning the property of the estate under administration.
c. Contract of sale where the buyer is a government official entrusted with the
administration of the subject property
d. Contract of loan between the principal and an agent, where the latter was authorized to borrow money.
d. Contract of loan between the principal and an agent, where the latter was authorized to borrow money.
151
The following are real contracts which require delivery for perfection, except:
a. Pledge
b. Chattel mortgage
c. Mutuum
d. Deposit
b. Chattel mortgage
152
Which of the following is a preparatory contract?
a. Lease
b. Agency
c. Mortgage
d. Loan
b. Agency
Preparatory contract:
1) Agency
2) Partnership
Real contracts:
1) Pledge - involves using movable property as collateral for a loan WITH DELIVERY
2) Mutuum - contract of loan where the lender delivers to the
borrower money or other consumable or fungible thing
3) Deposit - obligation of safely keeping it and of returning the
same
4) Commodatum - contract of loan where the bailor delivers to the bailee a non-consumable thing
153
Juan, who is indebted to Pedro for P100,000, sold his only remaining property to Jose. There would be a presumption that the sale was in fraud of Pedro:
a. If Juan did not reserve sufficient properties to pay all debts contracted
before the sale.
b. If Juan did not reserve sufficient properties to pay all debts contracted
before and after the sale.
c. When there has been some judgment obtained by Pedro issued against Juan before the sale.
d. When there has been some judgment issued against Juan before the sale even
if not obtained by Pedro.
d. When there has been some judgment issued against Juan before the sale even
if not obtained by Pedro.
154
Which of the following can validly give consent to a contract:
a. Insane persons
b. Demented persons
c. Minors
d. Deaf-mutes
d. Deaf-mutes
will be incapacitated if do not know how to write
155
The following contracts are unenforceable if not in writing, except
a. Sale of personal property at least P500
b. Lease of real property with a term of more than 1 year
c. Sale of large cattle
d. Contract for a piece of work not to be performed within a year
c. Sale of large cattle
a,b, d refers to the statute of frauds.
Formal requirement for validity of
sale of large cattle:
1) public instrument
2) registration of sale
3) certificate of transfer/sale
156
An action for rescission of a sale of land on the ground of fraud would prescribe in 4 years from:
a. Date of sale
b. Discovery thereof
c. Registration of the sale
d. Delivery
c. Registration of the sale
GR: 4 years from discovery of fraud
XPN: land - from registration of sale
157
A orally sold his cellphone to B for P15,000, where the latter paid P499 down-payment
and the balance to be paid 30 days after. The contract entered into is:
a. Valid and enforceable
b. Rescissible
c. Void
d. Unenforceable
a. Valid and enforceable
158
Juan obliged himself to deliver one of his five cars to Pedro, it was not specified
which car. In this case,
a. The contract would be interpreted following the least transmission of rights
b. The contract would be interpreted following the greatest reciprocity of interests
c. The contract is void
d. They would need to undergo reformation to clarify which car.
c. The contract is void
if principal object is the one in DOUBT
159
Which of the following is false with regards the person who can institute annulment of a contract?
a. Only the incapacitated or injured party or his guardian can ask for annulment.
b. Creditors of the incapacitated party can ask for the annulment of the contract entered into by their incapacitated debtor
c. Those who are capacitated cannot allege the incapacity of the other
contracting party
d. Answer not given
b. Creditors of the incapacitated party can ask for the annulment of the contract entered into by their incapacitated debtor
160
Juan offered to sell his house and lot to Pedro for P1,500,000. Pedro was convinced and accepted the same. Pedro gave P500 and was given 30 days to make good the balance of the price. Before the expiration of the 30 days, Juan withdrew and returned Pedro’s P500 because he found a new buyer who would pay twice. In this case,
a. Juan validly withdrew the offer since it is within the 30 day period.
b. Juan cannot validly withdraw the offer since there was an option money of P500 that was given.
c. Juan validly withdrew the offer since he is still the owner thereof pending delivery.
d. Juan cannot validly withdraw the offer since there was already a perfected
contract of sale.
d. Juan cannot validly withdraw the offer since there was already a perfected
contract of sale.
161
S sold to B 1,000 sacks of rice for P1,000 per sack. On delivery date, however, S delivered 1,100 sacks. In this case, which of the following is not an available remedy for B?
a. Accept the quantity agreed upon and reject the rest.
b. Accept the quantity delivered and pay at the contract rate.
c. Reject the whole if the contract is indivisible.
d. Reject the whole and ask for damages.
d. Reject the whole and ask for damages.
applicable if there is deficiency in delivery
162
Insolvency is a requisite in which rights of an unpaid seller?
a. Possessory Lien
b. Stoppage in Transitu
c. Right of Resale
d. All of the above
b. Stoppage in Transitu
163
A sold his land to B with a right to repurchase the same within 10 years. A died, leaving A1 and A2 as heirs, prior to the expiration of the 10 year period. Which of the following is incorrect?
a. A1 can demand the exercise of the right of redemption only as to half the
land.
b. A2 can demand the exercise of the right of redemption as to the whole land.
c. B can compel the heirs to redeem jointly and cannot be compelled to consent to a partial redemption.
d. B can allow partial redemption of A2 of half only
b. A2 can demand the exercise of the right of redemption as to the whole land.
164
Juan bought a condominium unit from Bellagio Development Corporation (BDC) for P15,000,000 paying P3,000,000 as down-payment and the balance payable in monthly installments of P100,000. It was agreed that should the buyer fail to pay 2 or more
installments, the contract shall automatically be cancelled and that all payments shall be forfeited in favor of BDC by way of rent. After paying 26 months’ worth of
installments, Juan failed to pay the 27th and 28th installment and BDC deemed the
contract rescinded. In this case (which is incorrect)?
a. The rescission is not valid since the provision providing for automatic
cancellation is void.
b. Juan is entitled to 90 days grace period
c. Juan is entitled to P2,800,000 cash surrender value
d. The stipulation providing for forfeiture of the payments is void
b. Juan is entitled to 90 days grace period
165
S sold a motorcycle to B for P80,000, payable in 8 monthly installments of P10,000 each. The same motorcycle was subject of a chattel mortgage to secure the payment
of the monthly installments. B failed to pay the 3rd and 4th installments. Accordingly, S foreclosed the mortgage on the motorcycle. In this case,
a. If the proceeds from the foreclosure sale amounted to P50,000, S would be
entitled to the deficiency.
b. If the proceeds from the foreclosure sale amounted to P80,000, B would be
entitled to the excess.
c. There can be no foreclosure since the non-payment covers only 2 installments.
d. The proper remedy of S would be to collect the balance or cancel the contract
b. If the proceeds from the foreclosure sale amounted to P80,000, B would be
entitled to the excess.
166
I. Real Estate Mortgage
II. Chattel Mortgage
III. Pledge
In this accessory contract, the excess of the proceeds in the foreclosure sale over the unpaid obligation would, as a rule, go to the creditor:
a. All
b. I and II only
c. II and III only
d. III only
d. III only
167
I. Real Estate Mortgage
II. Chattel Mortgage
III. Pledge
In this accessory contract, the sale of the thing given by way of security, may
result in criminal liability.
a. All
b. I and II only
c. II only
d. III only
c. II only
168
There is a right of redemption:
a. All
b. I only
c. I and II only
d. II and III only
b. I only
169
In order for the knowledge of insufficiency of funds to be presumed, to prosecute for the violation of BP Blg. 22, the check must be presented within __ days from its
date:
a. 30
b. 60
c. 90
d. 100
c. 90
170
On October 9, 2024, Juan purchased from Pedro P10,000 worth of goods and the latter agreed to deliver since Juan issued a post-dated check for them claiming it to be a good check. Juan believed his brother would put in the money 2 days after and informed Pedro of this, hence the post-dating of the check. Later on, however, Juan’s brother called and informed him that he would not be able to make the deposit until 5 days after the date indicated in the check. Juan then called Pedro and informed him of
the said delay. Pedro nevertheless deposited the check and it bounced. In this case,
a. Juan is guilty of estafa since Pedro only parted with his goods on the
expectation that the check will be funded.
b. Juan is not guilty of estafa since he was in good faith and he informed Pedro of the circumstances.
c. Good faith is not a valid defense for estafa.
d. Juan is not guilty of estafa since the check was given in payment of a preexisting obligation.
b. Juan is not guilty of estafa since he was in good faith and he informed Pedro of the circumstances.
c. Good faith is not
171
A drew a check for P100,000 and issued the same to B for the payment of a pre-existing obligation. B then issued said check to C representing the same to be a good check which the former believed in good faith and agreed to enter the
transaction. However, the check was later on dishonored for insufficient funds.
Assuming that the notice requirements were complied with and both A and B were not able to make any payment, is A guilty of violating BP Blg 22 and estafa?
a. Yes Yes
b. No No
c. Yes No
d. No Yes
c. Yes No
172
The following are characteristics of a contract of partnership, except:
a. Consensual
b. Unilateral
c. Onerous
d. Preparatory
b. Unilateral
173
In a universal partnership of all present property, all of the following becomes common property, except:
a. Properties which belong to the partners at the time of the constitution of
the partnership.
b. Any profits derive from properties belonging to each partner at the time of the constitution of the partnership.
c. Any after-acquired property from a donation, legacy, inheritance including
the profits thereof.
d. All of the above are included in the partnership
c. Any after-acquired property from a donation, legacy, inheritance including the profits thereof.
174
On September 30, 2024, A, B and C agreed to form a partnership where C promised to contribute money to be delivered on October 5, 2024. C failed to deliver the same and B made a demand therefor on October 15, 2024. C was only able to give the promised money on October 31, 2024. C would:
a. Not be liable for damages since he is not yet in delay.
b. Be liable for interest and damages from October 5, 2018
c. Be liable for interest and damages from October 15, 2018
d. Be liable for interest only from the time demand was made
b. Be liable for interest and damages from October 5, 2018
175
First statement: a partner is deemed to be a co-owner of his co-partners of specific partnership property.
Second statement: A partner’s right in specific partnership property is assignable
provided there is consent from the other partners.
a. Both statements are correct
b. Both statements are incorrect
c. Only the first statement is correct
d. Only the second statement is correct
c. Only the first statement is correct
176
A capitalist partner:
a. Cannot engage in business for himself of whatever industry except if with
consent of the partners.
b. Can engage in business of the same industry as that of the partnership even
against the will of the other partners.
c. Can engage in business for himself in an industry different from that of the partnership even without the consent of the partners
d. Can engage in business of whatever industry even without the consent of the partners
c. Can engage in business for himself in an industry different from that of the partnership even without the consent of the partners
177
A, B, C and D contributed P25,000 each to the partnership and agreed to distribute
losses 1:1:2:2. For the year, the partnership earned a profit of P12,000. How much would be the share of C?
a. 2,000
b. 3,000
c. 4,000
d. 6,000
b. 3,000
178
V, W, X, Y and Z are partners with 5%, 10%, 15%, 30%, 40% interest, respectively.
V, W and Y were appointed as managing partners without specification as to their duties. V wanted to purchase raw materials from a particular supplier to which Y opposed. Which of the following is correct?
a. Y’s opposition would prevail since he has more interest than that of V.
b. Y’s opposition would prevail even if W agrees with V, since their combined
interest is smaller than that of Y.
c. If W agrees with V, V’s decision would prevail.
d. X and Z would have to intervene and vote also, to determine whose decision will prevail.
c. If W agrees with V, V’s decision would prevail.
179
X, Y and Z are partners of XYZ partnership. X, acting within the scope of his authority, received P20,000 from C, a creditor of the partnership, and misapplied the same. From whom can C collect the P20,000?
a. X only
b. X, Y and Z, solidarily
c. X, Y and Z, jointly
d. X, Y, Z and XYZ partnership, solidarily
d. X, Y, Z and XYZ partnership, solidarily
180
. Where a partner has become insolvent, the claims against his separate property shall
be satisfied in the following order:
a. Those owing to partnership creditors; Those owing to separate creditors; Those
owing to partners by way of contribution.
b. Those owing to partners by way of contribution; Those owing to partnership
creditors; Those owing to separate creditors.
c. Those owing to separate creditors; Those owing to partnership creditors; Those
owing to partners by way of contribution.
d. Those owing to separate creditors; Those owing to partners by way of
contribution; Those owing to partnership creditors.
c. Those owing to separate creditors; Those owing to partnership creditors; Those owing to partners by way of contribution.
181
As to whether a corporation has some governmental purpose or not, it may be classified
as:
a. De jure or de facto
b. Private or public
c. Open or close
d. Ecclesiastical or lay
b. Private or public
182
Which of the following corporations acquire juridical personality from the filing of the verified application with the SEC and not the issuance of a Certificate of
Registration?
a. Aggregate corporation
b. Eleemosynary corporation
c. Ecclesiastical Corporation
d. Corporation Sole
d. Corporation Sole
183
Under the Corporation Code, as amended, minors are allowed to become:
a. Corporators
b. Incorporators
c. Both
d. Neither
a. Corporators
184
A, B, C, D and E is organizing a corporation whose Authorized Capital Stock is
P10,000,000. Each of them subscribed to P500,000 or equivalent to 5%. A, B and C paid 50% of their subscribed capital but D and E did not. In this case,
a. D and E must pay at least 25% of their subscribed capital to comply with the
requirements of the law.
b. There can still be valid incorporation, provided that D and E pay within 30
days from submission to the SEC.
c. The requirement that 25% of the authorized capital stock has not been met.
d. D and E need not pay at least 25% of their subscription and there is still a
valid incorporation
d. D and E need not pay at least 25% of their subscription and there is still a
valid incorporation
185
If the corporation was able to commence business but became inoperative for __ years, it will result to ____:
a. 2 years; automatic dissolution.
b. 5 years; the corporation being placed under a delinquent status
c. 5 years; a ground for suspension or revocation.
d. 5 years; automatic dissolution.
b. 5 years; the corporation being placed under a delinquent status
186
ABC Corporation, through Mr. X its general manager, entered into a contract of sale
with WYZ Corporation. Later on, ABC Corporation unilaterally rescinded the said contract. In this case, Mr. X cannot be sued on his personal capacity under which principle?
a. Piercing the Veil of Corporate Entity
b. Doctrine of Limited Liability
c. Corporate Entity Doctrine
d. Presumption of Good Faith
c. Corporate Entity Doctrine
187
A corporation’s assets is P500,000 while its liabilities amounted to P15,000,000.
In this case, the stockholders cannot be made liable beyond their investment under
which principle?
a. Piercing the Veil of Corporate Entity
b. Doctrine of Limited Liability
c. Corporate Entity Doctrine
d. Presumption of Good Faith
b. Doctrine of Limited Liability
188
Which of the following is a qualification found under the Corporation Code, as
amended, for directors?
a. They must own at least 1 share
b. Majority must be residents of the Philippines
c. There exists no conflict of interest
d. At least 5 but not more than 15
a. They must own at least 1 share
189
As a rule, directors are not entitled to receive any compensation. Except in the
following cases (choose which is not an exception):
a. Reasonable per diems
b. As provided in the by-laws
c. Upon a majority vote of the stockholders
d. None of the above is not an exception
d. None of the above is not an exception
190
A preferred shareholder is not entitled to vote in this corporate act:
a. Amendment of the articles of incorporation
b. Adoption and amendment of by-laws
c. Sale of all or substantially all of the corporate’s inventories
d. Incurring, creating or increasing bonded indebtedness
c. Sale of all or substantially all of the corporate’s inventories
MUST BE CORPORATE ASSETS
191
Which of the following, as a general rule, is regarded as voidable at the instance
of the corporation?
a. Transaction of a self-dealing director
b. Transaction of an interlocking director
c. Transaction of a director in violation of confidentiality of information
d. Transaction of a director in violation of his duty of loyalty
a. Transaction of a self-dealing director
192
Which of the following corporate officers is required to be a member of the Board of Directors?
a. The President
b. The Treasurer
c. The Secretary
d. The Compliance Officer
a. The President
193
A, B, C, D, E, F, G, H, I are members of the Board of Directors. In the meeting to
appoint corporate officers, only A, B, C, D and E are present. How many votes are
required to elect corporate officers?
a. 2
b. 3
c. 4
d. 5
d. 5
GR: quorum to have a valid meeting = majority of all members
valid vote = majority of all present in the meeting
other transaction other than election
vote required would be 3
194
Which of the following is false with regards preferred shares?
a. A preferred share is a stock that gives the holder preference over the holder of common stocks with respect to the payment of dividends and/or with respect to distribution of capital upon liquidation.
b. A preferred share can be issued without a par value provided it is not issued for less than P5.
c. The preference must be stated in the Articles of Incorporation and the Certificate of Stock.
d. None of the above
b. A preferred share can be issued without a par value provided it is not issued for less than P5.
195
X Co. has P10M Authorized Capital Stock a part of which is 1M no par value shares with issued value at P5.00. A acquired 100,000 no par value shares at P4.00. In this
case,
a. There is no issuance of watered stocks
b. A and the directors of X Co. are solidarily liable for the P1.00 per share difference.
c. Only A is liable for the P1.00 per share difference.
d. Only the directors of X Co. are liable for the P1.00 per share difference.
d. Only the directors of X Co. are liable for the P1.00 per share difference.
196
To delegate the power to amend by-laws to the Board of Directors, the required number
of votes from the stockholders is ___; to revoke the same, the required number of votes is __.
a. Majority; Majority
b. Majority; 2/3
c. 2/3; Majority
d. 2/3; 2/3
c. 2/3; Majority
197
A non-stock corporation differs from a stock corporation in the following, except:
a. Cumulative voting is generally allowed
b. The number of directors may be more than 15
c. The Articles or the by-laws can provide that the officers are directly appointed by members
d. The meeting of members can be held anywhere in the Philippines
a. Cumulative voting is generally allowed
xpn: stipulation
Meeting of members must be in the principal office. If not practical, within the city/municipality
198
To qualify as a foreign corporation, the consideration is
a. Citizenship of the owners of the shares
b. Appointment of a resident agent
c. Agreement of the parties
d. Under what country’s law it was incorporated
d. Under what country’s law it was incorporated
199
Which meeting is required to be at the principal office of the corporation?
a. Board of Directors of a stock corporation and Board of Trustees of a nonstock corporation
b. Stockholders of a stock corporation and Members of a non-stock corporation
c. Board of Directors of a stock corporation and its stockholders
d. Board of Trustees of a non-stock corporation and its members
b. Stockholders of a stock corporation and Members of a non-stock corporation
200
Which of the following is considered a ground for temporary disqualification of a
member of the Board of Directors under the Revised Code of Corporate Governance?
a. Conviction by final judgment or order of a crime involving the purchase of
securities as defined under the Securities Regulations Code
b. For an independent director, becoming an officer, employee or consultant of
the corporation
c. Conviction of a final judgment of a crime involving moral turpitude
d. Absence of more than 50% of all regular and special meetings of the Board of
Directors
d. Absence of more than 50% of all regular and special meetings of the Board of Directors
201
The committee tasked to assist the Board in the performance of its oversight
function for the financial reporting process, system of internal control, audit process, and monitoring of compliance with applicable laws, rules and regulations.
a. Audit Committee
b. Nomination Committee
c. Management Committee
d. Compensation and Remuneration Committee
a. Audit Committee
202
Which officer is required to be a Filipino Citizen?
a. CEO/President
b. CFO/Treasurer
c. Corporate Secretary
d. Compliance Officer
c. Corporate Secretary
203
Juan delivered to Pedro, treasurer of the Corporation, P180,000 as a loan with 6% interest. In return, Pedro issued a post-dated check in behalf of the corporation which was later on found to be drawn against insufficient funds. In this case,
a. Pedro cannot be held personally liable since he merely signed the check in
his capacity as Treasurer.
b. Pedro can be held personally liable since he is made, by specific provision
of law, personally liable for his corporate action.
c. Pedro cannot be held personally liable since it is not shown that he had no
personal knowledge of the fact of insufficiency of funds.
d. Pedro can be held personally liable if the assets of the Corporation are
insufficient to cover the amount of the loan
b. Pedro can be held personally liable since he is made, by specific provision of law, personally liable for his corporate action.
204
Which of the following is not covered by the Mandatory Tender Offer Rule as to X
Corporation stockholders:
a. A, B and C plans to acquire 49% of the shares of X corporation
b. D, who owns 20% of the shares of X corporation plans to acquire an additional
32%
c. E, who owns 18% of X corporation, plans to acquire 50% of Y corporation which in turn owns 68% of X corporation
d. None of the above
d. None of the above
205
Trafalgar Law is the lawyer of The 4 Emperors Corporation, who in the course of his
work acquired material non-public information. In a drinking session, he informed his friend Shanks of the material non-public information. Shanks, in turn informed
Ace, his friend. All three of them acquired shares of stock of ABC Corporation and
in turn made profits when the price of the shares shoot up when the information was
made public. Which of the following is true?
a. Only Trafalgar Law may be guilty of insider trading
b. Only Trafalgar Law and Shanks may be guilty of insider trading
c. All are guilty of insider trading
d. None are guilty of insider trading
b. Only Trafalgar Law and Shanks may be guilty of insider trading
206
A group of individuals desired to organize as a cooperative with an Authorized
Share Capital (ASC) of P200,000. How much is the minimum subscription and the
minimum paid-up capital required?
a. P50,000; P12,500
b. P50,000; P15,000
c. P100,000; P25,000
d. P100,000; P50,000
b. P50,000; P15,000
25%/25% rule but min. paid-up capital is 15k for cooperatives
207
A tertiary cooperative which will organize as a Federation is required to have at
least __ secondary cooperative members and a minimum paid-up capital of:
a. 10; P500,000
b. 15; P5,000,000 or the feasibility study requirement, whichever is higher.
c. 10; P5,000,000 or the feasibility study requirement, whichever is higher.
d. 15; P500,000
c. 10; P5,000,000 or the feasibility study requirement, whichever is higher.
208
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. Marketing Cooperative
209
The quorum requirement of a General Assembly of a Cooperative Bank if the purpose of the meeting is to amend the Articles or the By-Laws:
a. 25%
b. Majority
c. 2/3
d. 3/4
d. 3/4
210
The following are disqualified from being officers of a cooperative, except:
a. The members of the board of directors.
b. Committee members
c. A person who has a relative within the third civil degree of consanguinity
or affinity who is an officer of the cooperative.
d. Any person engaged in a business similar to that of the cooperative or who
in any other manner has interests in conflict with the cooperative
b. Committee members
211
A cooperative is exempt from income tax in all of the following cases, except:
a. It transacts only with members
b. It transacts also with non-members and its accumulated reserves and
undivided net savings is not more than P10M
c. It transacts also with non-members and its accumulated reserves and
undivided net savings is more than P10M
d. None of the above
d. None of the above
212
Mr. X is a member of an agrarian reform cooperative who has a 6% share. His next
of kin is his son and only heir, X Jr., who is also a member with 4% share. Mr. X
died, as a consequence his share capital was inherited by X Jr.. In this case,
a. The cooperative will be deemed dissolved with the death of Mr. X.
b. X Jr. cannot inherit the share since he is not qualified to be a member.
c. X Jr. cannot inherit more than the equivalent of 4% share capital.
d. None of the above are correct statements
d. None of the above are correct statements
213
An auditor, in his individual capacity or as a partner of the firm, cannot undertake the external audit of the same cooperative for more than ____ consecutive years
a. Two
b. Three
c. Four
d. Five
d. Five
214
A portion of the net surplus of the cooperative shall be set aside in a fund used to acquire land and building and other necessary spending. This fund is known as:
a. Reserve Fund
b. Education and Training Fund
c. Community Development Fund
d. Optional Fund
d. Optional Fund
215
The Community Development Fund shall be ___ of the Net Surplus:
a. At least 10%
b. At least 7%
c. At least 5%
d. At least 3%
d. At least 3%
216
Juan maintains joint deposit accounts - with Maria with a balance of P500,000; with Pedro with a balance of P600,000; and with Jose Corporation for P1,000,000, all in
the same bank. How much is Juan’s insured deposit amount?
a. P450,000
b. P500,000
c. P550,000
d. P1,000,000
b. P500,000
217
The following accounts were found in the records of Salmon Bank: A in trust for B
P100,000; A by B P100,000; A for the account of B, P100,000. How much is the insured
deposit of A?
a. P100,000
b. P200,000
c. P300,000
d. P0
a. P100,000
218
The maximum amount of liability that can be imposed under the Truth in Lending Act
a. P100
b. P200
c. P1,000
d. P2,000
d. P2,000
219
Which of the following acts of the Bank is in violation of the Bank Secrecy Law?
a. Disclosure to the AMLC of deposits more than P500,000 in one banking day
b. Disclosure of the details of the bank deposit to the court, upon the latter’s
order, in a case against a public officer concerning plunder
c. Disclosing details of bank deposits in accordance with a BSP audit
d. Disclosing details of a bank deposits to the Commissioner of Internal Revenue
to determine income tax liability
d. Disclosing details of a bank deposits to the Commissioner of Internal Revenue
to determine income tax liability
220
Disclosure of the information of a bank account via subpoena issued by a court is
necessary in cases involving:
a. Plunder related to a public officer receiving Jueteng money
b. When the subject of the case is the money deposited in the account
c. A BIR officer receiving money in order not to conduct audit of a taxpayer
d. Money laundering when the predicate crime is kidnapping for ransom
d. Money laundering when the predicate crime is kidnapping for ransom
221
In case of a transaction is both reportable as “covered” and at the same time
“suspicious”, it shall be reported to the AMLC as
a. A covered transaction
b. A suspicious transaction
c. Both a covered and suspicious transaction
d. A complaint for money laundering
b. A suspicious transaction
222
Which of the following powers of the AMLC can be done ex parte?
I. Applying for a freeze order with the Court of Appeals
II. Inspecting bank accounts with cases filed in a court of competent
jurisdiction
a. Both I and II
b. Neither I nor II
c. I only
d. II only
c. I only
223
Covered persons shall report to the AMLC all covered transactions and suspicious
transactions within:
a. 5 working days from occurrence thereof 5 working days from occurrence thereof
b. next banking day from occurrence thereof 5 working days from occurrence thereof
c. 5 working days from occurrence thereof next banking day from occurrence thereof
d. next banking day from occurrence thereof next banking day from occurrence thereof
c. 5 working days from occurrence thereof next banking day from occurrence thereof
224
Which of the following is not a predicate crime for money laundering involving the
taking of personal property with intent to gain?
a. Robbery
b. Theft
c. Qualified Theft
d. Violation of the Anti-Fencing Law
b. Theft
225
That stage in money laundering which involves sending money through various financial transactions to change its form and make it more difficult to follow
a. Placement
b. Layering
c. Integration
d. Preliminary
b. Layering
226
This agency leads the global action to combat money laundering and terrorist financing
a. World Bank
b. Asian Development Bank
c. Financial Action Task Force
d. Money Laundering Watch Dogs
c. Financial Action Task Force
227
X is an inventor working for a private company and created a patentable invention during his employment. In this case,
a. X’s employer owns the patent.
b. X owns the patent even if the inventive activity is part of his regularly assigned duties.
c. X’s employer owns the patent if the inventive activity is not part of his
regularly-assigned duties but he used the time, facilities and materials of
the company.
d. X owns the patent if the inventive activity is not part of his regularly assigned duties and whether or not he used the time, facilities and materials of the company
d. X owns the patent if the inventive activity is not part of his regularly assigned duties and whether or not he used the time, facilities and materials of the company
228
The term of protection for a copyright is:
a. 10 years from issuance date and can be renewed indefinitely
b. Lifetime of the author plus 50 years from death
c. 20 years from the date of filing of the application
d. None of the above
b. Lifetime of the author plus 50 years from death
trademark - 10
patent - 20
229
A person’s photo with his/her face in it may be considered:
a. Personal Information
b. Sensitive Personal Information
c. Privileged Information
d. None of the chocies
a. Personal Information
230
Which of the following will be considered privileged information?
a. Health records of the Data Subject
b. Disclosure of the Data Subject made in a tax return
c. Statements made by a Data Subject to his priest
d. A Data Subject’s Social Security Number
c. Statements made by a Data Subject to his priest
231
134. The processing of sensitive personal information and privileged information shall
be allowed in the following cases, except.
a. The processing is necessary to protect the life and health of the data subject
or another person.
b. The data subject has not given his or her consent, specific to the purpose
prior to the processing, or in the case of privileged information, all parties to the exchange have given their consent prior to processing.
c. The processing is necessary for purposes of medical treatment.
d. The processing is necessary to achieve the lawful and non-commercial
objectives of public organizations and their associations.
b. The data subject has not given his or her consent, specific to the purpose
prior to the processing, or in the case of privileged information, all parties to the exchange have given their consent prior to processing.
232
It is a security incident that leads to accidental or unlawful destruction, loss, alteration, unauthorized disclosure or access of or unauthorized processing of
personal data
a. Data Breach
b. Data Damage
c. Data Compromise
d. Data Destruction
a. Data Breach
233
Refers to any device or apparatus singly or interconnected which, by electronic,
electro-mechanical, optical and/or magnetic impulse, or other means with the same function, can receive, record, transmit, store, process, correlate, analyze, projects, retrieve, and/or produce information, data, text, graphics, figures, voice, video, symbols or other modes of expression or perform any one or more of these functions.
a. Computer
b. Information and Communication System
c. Data Processing System
d. Electronic Data Message
a. Computer
234
Which of the following presumptions are generally true?
I. The electronic signature is the signature of the person to whom it correlates
II. The electronic signature was affixed by that person with the intention of
signing or approving the electronic document
a. Both I and II
b. I only
c. II only
d. Neither I nor II
a. Both I and II
235
Statement I: The best evidence rule provides that the original documents must be provided as evidence, unless the original is lost, destroyed, or otherwise
unobtainable.
Statement II: The statute of frauds require the transactions enumerated therein to be in writing in order to be enforceable.
Which of the above is complied with when using an electronic document or electronic
data message?
a. I only
b. II only
c. Both I and II
d. Neither 1 nor II
c. Both I and II
236
A transaction requiring the approval of the local sanggunian shall be processed not
later than:
a. 3 working days
b. 5 working days
c. 7 working days
d. 45 working day
d. 45 working day
237
The maximum number of signatories under the Ease of Doing Business Act:
a. 1
b. 3
c. 5
d. None
b. 3
