MERCANTILE LAW
2013 BAR EXAMINATIONS
I. Letters of Credit
1. Definition and Nature of Letter of Credit 2. Parties to a Letter of Credit 1. Rights and Obligations of Parties 3. Basic Principles of Letter of Credit 1. Doctrine of Independence 2. Fraud Exception Principle 3. Doctrine of Strict Compliance
1. Definition/Concept of a Trust Receipt Transaction 1. Loan/Security Feature 2. Ownership of the Goods, Documents and Instruments under a
Trust Receipt
3. Obligation and Liability of the Entrustee 1. Payment/Delivery of Proceeds of Sale or Disposition of Goods,
Documents or Instruments
2. Return of Goods, Documents or Instruments in Case of Sale 3. Liability for Loss of Goods, Documents or Instruments 4. Penal Sanction if Offender is a Corporation 4. Remedies Available 3. Warehousemans Lien
Mercantile Law
Against
the
8. Liabilities of Parties 1. Maker 2. Drawer 3. Acceptor 4. Indorser 5. Warranties 9. Presentment for Payment 1. Necessity of Presentment
for Payment
4. Complete but Undelivered Instruments 3. Signature 1. Signing in Trade Name 2. Signature of Agent 3. Indorsement by Minor or Corporation 4. Forgery 4. Consideration 5. Accommodation Party 6. Negotiation 1. Distinguished from Assignment 2. Modes of Negotiation 3. Kinds of Indorsements 7. Rights of the Holder 1. Holder in Due Course 10.
2. Parties
Whom Payment
3. Dispensation
Mercantile Law
3. Effect of Notice 4. Form of Notice 5. Waiver 6. Dispensation with Notice 7. Effect of Failure to Give Notice 11. Discharge of Negotiable Instrument 1. Discharge of Negotiable Instrument 2. Discharge of Parties Secondarily Liable 3. Right of Party Who Discharged Instrument 4. Renunciation by Holder 12. Material Alteration 1. Concept 2. Effect of Material Alteration 13. Acceptance 1. Definition 2. Manner 3. Time for Acceptance 4. Rules Governing Acceptance 14. Presentment for Acceptance 1. Time/Place/Manner of Presentment 2. Effect of Failure to Make Presentment 3. Dishonor by Non-Acceptance 15. Promissory Notes 16. Checks 1. Definition 2. Kinds 3. Presentment for Payment 1. Time 2. Effect of Delay
1. Concept of Insurance
4 of
Mercantile Law
3. Non-Default Options in
Life Insurance
4. Reinstatement
of a of Life
1. Concealment 2. Misrepresentation/Omiss
ions
5. Insurable Interest 1. In Life/Health 2. In Property 3. Double Insurance and Over Insurance 4. Multiple or Several Interests on Same
Property
6. Perfection of the Contract of Insurance 1. Offer and Acceptance/Consensual 1. Delay in Acceptance 2. Delivery of Policy
Mercantile Law
22. Transportation Laws 1. Common Carriers 1. Diligence Required of Common Carriers 2. Liabilities of Common Carriers 2. Vigilance over Goods 1. Exempting Causes 1. Requirement of Absence of Negligence 2. Absence of Delay 3. Due Diligence to Prevent or Lessen the Loss 2. Contributory Negligence 3. Duration of Liability 1. Delivery of Goods to Common Carrier 2. Actual or Constructive Delivery 3. Temporary Unloading or Storage 4. Stipulation for Limitation of Liability 1. Void Stipulations 2. Limitation of Liability to Fixed Amount 3. Limitation of Liability in Absence of Declaration of Greater
Value
5. Liability for Baggage of Passengers 1. Checked-In Baggage 2. Baggage in Possession of Passengers 3. Safety of Passengers 1. Void Stipulations 2. Duration of Liability 1. Waiting for Carrier or Boarding of Carrier 2. Arrival at Destination 3. Liability for Acts of Others 1. Employees 2. Other Passengers and Strangers 4. Extent
of Liability for Damages D. Bill of Lading
1. Three-Fold Character
2. Delivery of Goods
2013 Bar Examination Coverage
1. Period of Delivery 2. Delivery Without Surrender of Bill of Lading 3. Refusal of Consignee to Take Delivery 3. Period for Filing Claims 4. Period for Filing Actions 5. Maritime Commerce 1. Charter Parties 1. Bareboat/Demise Charter 2. Time Charter 3. Voyage/Trip Charter 2. Liability of Ship Owners and Shipping Agents 1. Liability for Acts of Captain 2. Exceptions to Limited Liability 3. Accidents and Damages in Maritime Commerce 1. General Average 2. Collisions 4. Carriage of Goods by Sea Act 1. Application 2. Notice of Loss or Damage 3. Period of Prescription 4. Limitation of Liability 6. The Warsaw Convention 1. Applicability 2. Limitation of Liability 1. Liability to Passengers 2. Liability for Checked Baggage 3. Liability for Hand-Carried Baggage 3. Willful Misconduct
1. Corporation 1. Definition
Mercantile Law
4. Corporate Term 2. Classes of Corporations 3. Nationality of Corporations 1. Place of Incorporation Test 2. Control Test 2. Grandfather Rule 4. Corporate Juridical Personality 1. Doctrine
of Separate Juridical Personality
5. Minimum
1. Liability for Torts and Crimes 2. Recovery of Moral Damages 2. Doctrine of Piercing the Corporate Veil 1. Grounds for Application of Doctrine 2. Test in Determining Applicability 5. Incorporation and Organization 1. Promoter 1. Liability of Promoter 2. Liability 2. Number
of Corporation Promoters Contracts Qualifications for
and Incorporators
Corporate Name
Mercantile Law
1. Doctrine
of
Centralized
3. Power
Rights
to
Deny
Pre-Emptive
2. Consequences of Ultra Vires 3. How Exercised 1. By the Shareholders 2. By the Board of Directors
Mercantile Law
2. By 3. By
Voting
3. Proprietary Rights 1. Right to Dividends 2. Right of Appraisal 3. Right to Inspect 4. Pre-Emptive Right 5. Right to Vote 6. Right to Dividends 7. Right of First Refusal 4. Remedial Rights 1. Individual Suit 2. Representative Suit 3. Derivative Suit 5. Obligation
of a Stockholder
1. Rights of a Stockholder and Members 1. Doctrine of Equality of Shares 2. Participation in Management 1. Proxy 2. Voting Trust 3. Cases
When Required Stockholders Action is
10
2. Notice 2. Who Calls the Meetings 3. Quorum 4. Minutes of the Meetings I. Capital
Structure
1. Subscription Agreements 2. Consideration for Stocks 3. Shares of Stock 1. Nature of Stock 2. Subscription Agreements 3. Consideration for Shares of Stock 4. Watered Stock 1.
Definition
2. Liability of Directors for Watered Stocks 3. Trust Fund Doctrine for Liability for Watered Stocks 5. Situs of the Shares of Stock 6. Classes of Shares of Stock 4. Payment of Balance of Subscription 1. Call by Board of Directors 2. Notice Requirement 3. Sale of Delinquent Shares 1.
Effect of Delinquency
2. Call by Resolution of the Board of Directors 3. Notice of Sale 4. Auction Sale and the Highest Bidder 5. Certificate of Stock 1. Nature of the Certificate 2. Uncertificated Shares 3. Negotiability 1.
Requirements for Valid Transfer of Stocks
Mercantile Law
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Mercantile Law
1. Voluntary 1.
Where No Are Affected Affected Creditors Are of
2. Payment Pro-Rata 5. Lost or Destroyed Certificates 6. Stock and Transfer Book 1. Contents 2. Who May Make Valid Entries 7. Disposition and Encumbrance of Shares 1. Allowable Restrictions on the Sale of
Shares
2. Where 3. By
Creditors
2. Involuntary 1.
By Expiration Corporate Term of
4. Sale of All of Shares Not Fully Paid 5. Sale of Fully Paid Shares 6. Requisites of a Valid Transfer 7. Invol
untary Dealings with Shares Dissolution and Liquidation J.
3. By Management Committee
or Rehabilitation Receiver
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Mercantile Law
1. Consent 11.
Other Corporations
2. Doctrine
of Doing Business (relate to definition under the Foreign Investments Act, R.A. No. 7042)
2. Validity
2. Necessity of a License to Do
Business
4. When
12.
5. Procedure
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Mercantile Law
1. State Policy, Purpose 2. Securities Required to Be Registered 1. Exempt Securities 2. Exempt Transactions 3. Procedure for Registration of Securities 4. Prohibitions on Fraud, Manipulation and Insider Trading 1. Manipulation of Security Prices 2. Short Sales 3. Fraudulent Transactions 4. Insider Trading 5. Protection of Investors 1. Tender Offer Rule 2. Rules on Proxy Solicitation 3. Disclosure Rule 6. Civil Liability
1. The New Central Bank Act (R.A. No. 7653) 1. State Policies 2. Creation of the Bangko Sentral ng Pilipinas (BSP) 3. Responsibility and Primary Objective 4. Monetary BoardPowers and Functions 5. How the BSP Handles Banks in Distress 1. Conservatorship 2. Closure 3. Receivership 4. Liquidation
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Mercantile Law
1. Legal Tender Power 2. Rate of Exchange 2. Law on Secrecy of Bank Deposits (R.A. No. 1405, as amended) 1. Purpose 2. Prohibited Acts 3. Deposits Covered 4. Exceptions 5. Garnishment of Deposits, Including Foreign Deposits 3. General Banking Law of 2000 (R.A. No. 8791) 1. Definition and Classification of Banks 2. Distinction of Banks from Quasi-Banks and Trust Entities 3. Bank Powers and Liabilities 1. Corporate Powers 2. Banking and Incidental Powers 4. Diligence Required of Banks Relevant Jurisprudence 5. Nature of Bank Funds and Bank Deposits 6. Stipulation on Interests 7. Grant of Loans and Security Requirements 1. Ratio of Net Worth to Total Risk Assets 2. Single Borrowers Limit 3. Restrictions on Bank Exposure to DOSRI (Directors, Officers,
Stockholders and their Related Interests)
1. Intellectual Property Rights in General 1. Intellectual Property Rights 2. Differences between Copyrights, Trademarks and Patent 3. Technology Transfer Arrangements 2. Patents 1. Patentable Inventions 2. Non-Patentable Inventions 3. Ownership
of a
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Mercantile Law
Trademarks
4. Right of Priority 4. Grounds for Cancellation of a Patent 5. Remedy of the True and Actual Inventor 6. Rights Conferred by a Patent 7. Limitations of Patent Rights 1. Prior User 2. Use by the Government 8. Patent Infringement 1. Tests in Patent Infringement 1.
Literal Infringement
2. Doctrine of Equivalents 2. Defenses in Action for Infringement 9. Licensing 1. Voluntary 2. Compulsory 10. Assignment
Transmission and of Rights C.
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Mercantile Law
3. Requirement of Notice 11. Unfair Competition 12. Trade Names or Business Names 13. Collective Marks 4. Copyrights 1. Basic Principles, Sections 172.2, 175 and 181 2. Copyrightable Works 1. Original Works 2. Derivative Works 3. Non-Copyrightable Works 4. Rights of Copyright Owner 5. Rules on Ownership of Copyright 6. Limitations on Copyright 1. Doctrine of Fair Use 2. Copyright Infringement
X. Special Laws
1. The Chattel Mortgage Law and Real Estate Mortgage Law ( Excluded
and made a part of Civil Law coverage)
1. Policy of the Law 2. Covered Institutions 3. Obligations of Covered Institutions 4. Covered Transactions 5. Suspicious Transactions 6. When Is Money Laundering Committed 7. Unlawful Activities or Predicate Crimes 8. Anti-Money Laundering Council 9. Functions 10. Freezing of Monetary Instrument or Property 11. Authority to Inquire Into Bank Deposits
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Mercantile Law
3. Foreign Investments Act (R.A. No. 7042) 1. Policy of the Law 2. Definition of Terms 1. Foreign Investment 2. Doing Business in the Philippines 3. Export Enterprise 4. Domestic Market Enterprise 3. Registration of Investments on Non-Philippine Nationals 4. Foreign Investments in Export Enterprise 5. Foreign Investments in Domestic Market Enterprise 6. Foreign Investment Negative List
IMPORTANT NOTES:
1. This listing of covered topics is not intended and should not be used by
the law schools as a course outline. This was drawn up for the limited purpose of ensuring that Bar candidates are guided on the coverage of the 2013 Bar Examinations. Listings whose subject matters run across several Bar Subjects shall be deemed to include only the subject matters specific to the given Bar Subject. For example, Impeachment is generally a topic under Political Law but is listed also under Legal and Judicial Ethics for the ethical components of this Bar Subject. Note that there may be specific identification of the covering Bar Subject where a topic may be common to several Bar Subjects. For example, Independent Civil Actions mentioned in the Civil Code shall be included as a topic in Remedial Law rather than in Civil Law. Note also that many special laws, rules or specific topics, otherwise covered by the different examinable Bar Subjects, have been omitted or are expressly excluded from the coverage of the 2013 Bar Examinations.
2. The appreciation of the fact situations in, and the answers to, some
questions in every Bar Subject may require the consideration of underlying ethical rules and values.
3. All Supreme Court decisions - pertinent to a given Bar subject and its
listed topics, and promulgated up to January 31, 2013 - are examinable materials within the coverage of the 2013 Bar Examinations.