2017 Bar Questionnaires

2017 BAR EXAMINATIONS
CIVIL LAW
November 12, 2017 8:00 A.M. -12:00 N.N.
INSTRUCTIONS
1. This Questionnaire contains nine (9) pages. Check and make sure
that your Questionnaire has the correct number of pages. You may
write on your Questionnaire as you answer the questions.
Read each question very carefully and write your answers in your
Bar Examination Notebook in the same order of the questions.
Answer the essay questions legibly, clearly, and concisely. Write
your answers only on the front of every page of your Notebook. If
the front pages are not sufficient, continue at the back of the first
page and so on. Start every number on a separate page, but an
answer to a sub-question under the same number may be written
continuously on the same page and on the immediately succeeding
pages until the answer is complete. Follow the numbering sequence
of the Questionnaire in your answers.
2. Your answers should demonstrate your ability to analyze the

facts, apply the pertinent laws and jurisprudence, and arrive at
sound and logical conclusions. Answers must fully explain even if
the questions do not expressly require explanations. A "Yes" or
"No" answer sans explanation or discussion will not be given full
credit.
3. Marking of your Notebook with your name or other identifying

signs or symbols extraneous to the subject matter of the questions
may be considered as cheating and may disqualify you.
Good luck!
YOU CAN BRING HOME THE QUESTIONNAIRE.
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2017 Bar Examinations
CIVIL LAW 2
I.
State whether the following marital unions are valid, void, or

voidable, and give the corresponding justifications for your answer:
(a) Ador and Becky's marriage wherein Ador was afflicted with AIDS
prior to the marriage. (2°k)
(b) Carlos' marriage to Dina which took place after Dina had
poisoned her previous husband Edu in order to free herself from
any impediment in order to live with Carlos. (2%)
(c) Eli and Fely's marriage solemnized seven years after the
disappearance of Chona, Eli's previous spouse, after the plane she
had boarded crashed in the West Philippine Sea. (2°k)
(d) David who married Lina immediately the day after obtaining a
judicial decree annulling his prior marriage to Elisa. (2°k)
(e) Marriage of Zoren and Carmina who did not secure a marriage
license prior to their wedding, but lived together as husband and
wife for 10 years without any legal impediment to marry. (2°k)
II.
In 1960, Rigor and Mike occupied two separate but adjacent tracts
of land in Mindoro. Rigor's tract was classified as timber land while
Mike's was classified as agricultural land. Each of them fenced and
cultivated his own tract continuously for 30 years. In 1991, the
Government declared the land occupied by Mike as alienable and
disposable, and the one cultivated by Rigor as no longer intended
for public use or public service.
Rigor and Mike now come to you today for legal advice in asserting
their right of ownership of their respective lands based on their
long possession and occupation since 1960.
(a) What are the legal consequences of the 1991 declarations of the
Government respecting the lands? Explain your answer. (2%)
(b) Given that, according to Section 48(b) of Commonwealth Act

No. 141, in relation to Section 14(1) of Presidential Decree No. 1529,
the open, continuous, exclusive and notorious possession and
occupation of alienable and disposable lands of the public domain
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CIVIL LAW 3
as basis for judicial confirmation of imperfect title must be from

June 12, 1945, or earlier, may Mike nonetheless validly base his
assertion of the right of ownership on prescription under the Civil
Code? Explain your answer. (4%)
(c) Does Rigor have legal basis for his application for judicial
confirmation of imperfect title based on prescription as defined by
the Civil Code given that, like Mike, his open, continuous, exclusive
and notorious possession and occupation was not since June 12,
1945, or earlier, and his tract of land was timber land until the
declaration in 1991? Explain your answer. (4o/o)
Ill.
Josef owns a piece of land in Pampanga. The National Housing

Authority (NHA) sought to expropriate the property for its socialized
housing project. The trial court fixed the just compensation for the
property at P50 million. The NHA immediately deposited the same
at the authorized depository bank and filed a motion for the
issuance of a writ of possession with the trial court. Unfortunately,
there was delay in the resolution of the motion. Meanwhile, the
amount deposited earned interest.
When Josef sought the release of the amount deposited, NHA

argued that Josef should only be entitled to P50 million.
Who owns the interest earned? (3°/o)
IV.
(a) Distinguish antichresis from usufruct? (3%)
(b) Distinguish commodatum from mutuum. (3°/o)
v.
Jacob has owned a farm land in Ramos, Tarlac. In 2012, Liz

surreptitiously entered and cultivated the property. In 2014, Jacob
discovered Liz's presence in and cultivation of the property. Due to
his being busy attending to his business in Cebu, he tolerated Liz's
cultivation of the property. Subsequently, in December 2016, Jacob
wanted to regain possession of the property; hence, he sent a letter
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CIVIL LAW 4
to Liz demanding that she vacate the property. Liz did not vacate
despite the demand.
Jacob comes to enlist your legal assistance to bring an action

against Liz to recover the possession of the property.
What remedies are available to Jacob to recover possession of his

property under the circumstances? Explain your answer. (4%)
VI.
Tyler owns a lot that is enclosed by the lots of Riley to the North
and East, of Dylan to the South, and of Reece to the West. The
current route to the public highway is a kilometer's walk through
the northern lot of Riley, but the route is a rough road that gets
muddy during the rainy season, and is inconvenient because it is
only 2.5 meters wide. Tyler's nearest access to the public highway
would be through the southern lot of Dylan.
May Dylan be legally required to afford to Tyler a right of way

through his property? Explain your answer. (4°/o)
VII.
Alice agreed to sell a parcel of land with an area of 500 square

meters registered in her name and covered by TCT No. 12345 in
favor of Bernadette for the amount of P900,000.00. Their agreement
dated October 15, 2015 reads as follows:
I, Bernadette, agree to buy the lot owned by Alice covered by TCT

No. 12345 for the amount of P900,000.00 subject to the following
schedule of payment:
Upon signing of agreement P100,000.00

November 15, 2015 p 200,000.00
December 15, 2015 p 200,000.00
Janu'ry 15, 2016 P200,000.00
February 15, 2016 P200,000.00
Title to the property shall be transferred upon full payment of

P900,000.00 on or before February 15, 2016.
After making the initial payment of P100,000.00 on October 15,

2015, and the second instalment of P200,000.00 on November 15,
2015, Bernadette defaulted despite repeated demands from Alice.
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CIVIL LAW 5
In December 2016, Bernadette offered to pay her balance but Alice

refused and told her that the land was no longer for sale. Due to the
refusal, Bernadette caused the annotation of her adverse claim
upon TCT No. 12345 on December 19, 2016. Later on, Bernadette
discovered that Alice had sold the property to Chona on February 5,
2016, and that TCT No. 12345 had been cancelled and another one
issued (TCT No. 67891) in favor of Chona as the new owner.
Bernadette sued Alice and Chona for specific performance,

annulment of sale and cancellation of TCT No. 67891. Bernadette
insisted that she had entered into a contract of sale with Alice; and
that because Alice had engaged in double sale, TCT No. 67891
should be cancelled and another title be issued in Bernadette's
favor.
(a) Did Alice and Bernadette enter into a contract of sale of the lot
covered by TCT No. 12345? Explain your answer. (4°/o)
(b)Did Alice engage in double sale of the property? Explain your

answer. (4%)
VIII.
Pedro had worked for 15 years in Saudi Arabia when he finally

decided to engage in farming in his home province where his 10-
hectare farmland valued at P2,000,000.00 was located. He had
already P3,000,000.00 savings from his long stint in Saudi Arabia.
Eagerly awaiting Pedro's arrival at the NAIA were his aging parents
Modesto and Jacinta, his common-law spouse Veneranda, their
three children, and Alex, his child by Carol, his departed legal wife.
Sadly for all of them, Pedro suffered a stroke because of his over-
excitement just as the plane was about to land, and died without
seeing any of them.
The farmland and the savings were all the properties he left.
(a) State who are Pedro's legal heirs, and the shares of each legal
heir to the estate? Explain your answer. (4%)
(b) Assuming that Pedro's will is discovered soon after his funeral.
In the will, he disposed of half of his estate in favor of Veneranda,
and the other half in favor of his children and his parents in equal
shares. Assuming also that the will is admitted to probate by the
proper court. Are the testamentary dispositions valid and effective
under the law on succession? Explain your answer. (4%)
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CIVIL LAW 6
IX.
Danny and Elsa were married in 2002. In 2012, Elsa left the conjugal
home and her two minor children with Danny to live with her
paramour. In 2015, Danny sold without Elsa's consent a parcel of
land registered in his name that he had purchased prior to the
marriage. Danny used the proceeds of the sale to pay for his
children's tuition fees.
Is the sale valid, void or voidable? Explain your answer. (3°/o)
x.
Briefly explain whether the following contracts are valid,

rescissible, unenforceable, or void:
(a) A contract of sale between Lana and Andy wherein 16-year old
Lana agreed to sell her grand piano for PS,000.-00. (2%)
(b) A contract of lease of the Philippine Sea entered by and between

Mitoy and Elsa. (2%)
(c) A barter of toys executed by 12-year old Clarence and 10-year

old Czar (2%)
(d) A sale entered by Barri and Garri, both minors, which their
parents later ratified. (2%)
(e) Jenny's sale of her car to Celestine in order to evade attachment

by Jenny's creditors. (2%)
XI.
Zeny and Nolan were best friends for a long time already. Zeny
borrowed P10,000.00 from Nolan, evidenced by a promissory note
whereby Zeny promised to pay the loan "once his means permit."
Two months later, they had a quarrel that broke their long-standing
friendship.
Nolan seeks your advice on how to collect from Zeny despite the
tenor of the promissory note. What will your advice be? Explain
your answer. (3%)
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CIVIL LAW 7
XII.
Krystal owns a parcel of land covered by TCT No. 12345 in Angeles

City. Due to severe financial constraints, Krystal was forced to sell
the property to RBP Corporation, a foreign corporation based in
South Korea. Subsequently, RBP Corporation sold the property to
Gloria, one of its most valued clients.
Wanting her property back, Krystal, learning of the transfer of the

property from RBP Corporation to Gloria, sued both of them in the
Regional Trial Court (RTC) for annulment of sale and for
reconveyance. She alleged that the sale by RBP Corporation to
Gloria was void because RBP Corporation was a foreign
corporation prohibited by the Constitution from acquiring and
owning lands in the Philippines.
Will Krystal's suit for annulment of sale and reconveyance prosper?

Explain your answer. (4%)
XIII.
TRUE or FALSE - Explain your answers.
(a) All rights are considered as property. (2%)
(b) A lessee cannot bring a case for quieting of title respecting the
property that he leases. (2°/o)
(c) Only the city or municipal mayor can file a civil action to abate a
public nuisance. (2%)
(d) Possession of a movable property is lost when the location of

the said movable is unknown to the owner. (2%)
(e) Continuous non-apparent easements can be acquired either

through title or by prescription. (2%)
XIV.
Plutarco owned land that borders on a river. After several years, the
action of the water of the river caused the deposit of soil, and
increased the area of Plutarco's property by 200 square meters.
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CIVIL LAW 8
(a) If Plutarco wants to own the increase in area, what will be his
legal basis for doing so? Explain your answer. (2%)
(b) On the other hand, if the river dries up, may Plutarco validly
claim a right of ownership of the dried-up river bed? Explain your
answer. (2o/o)
xv.
Kevin signed a loan agreement with ABC Bank. To secure payment,

Kevin requested his girlfriend Rosella to execute a document
entitled "Continuing Guaranty Agreement" whereby she expressly
agreed to be solidarily liable for the obligation of Kevin.
Can ABC Bank proceed directly against Rosella upon Kevin's

default even without proceeding against Kevin first? Explain your
answer. (3°/o)
XVI.
Jovencio operated a school bus to ferry his two sons and five of
their schoolmates from their houses to their school, and back. The
parents of the five schoolmates paid for the service. One morning,
Porfirio, the driver, took a short cut on the way to school because
he was running late, and drove across an unmanned railway
crossing. At the time, Porfirio was wearing earphones because he
loved to hear loud music while driving. As he crossed the railway
tracks, a speeding PNR train loudly blared its horn to warn Porfirio,
but the latter did not hear the horn because of the loud music. The
train inevitably rammed into the school bus. The strong impact of
the collision between the school bus and the train resulted in the
instant death of one of the classmates of Jovencio's younger son.
The parents of the fatality sued Jovencio for damages based on

culpa contractual alleging that Jovencio was a common carrier;
Porfirio for being negligent; and the PNR for damages based on
culpa aquiliana.
Jovencio denied being a common carrier. He insisted that he had

exercised the diligence of a good father of a family in supervising
Porfirio, claiming that the latter had had no history of negligence or
recklessness before the fatal accident.
(a) Did his operation of the school bus service for a limited clientele
render Jovencio a common carrier? Explain your answer. (3%)
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CIVIL LAW 9
(b) In accordance with your answer to the preceding question, state

the degree of diligence to be observed by Jovencio, and the
consequences thereof. Explain your answer. (3°/o)
(c) Assuming that the fatality was a minor of only 15 years of age
who had no earning capacity at the time of his death because he
was still a student in high school, and the trial court is minded to
award indemnity, what may possibly be the legal and factual
justifications for the award of loss of earning capacity? Explain
your answer. (4o/o)
-NOTHING FOLLOWS-
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CRIMINAL LAW
November 19, 2017 2:00 P.M. - 6:00 P.M
INSTRUCTIONS

credit.

Good luck!
YOU CAN BRING HOME THE QUESTIONNAIRE .
airman
CRIMINAL LAW 2
I.
Tonito, an 8-year-old boy, was watching a free concert at the Luneta

Park with his father Tony. The child stood on a chair to be able to
see the performers on the stage. Juanito, a 10-year-old boy, who
was also watching the concert, could not see much of the
performance on the stage because Tonito was blocking his line of
sight by standing on the chair. Using his elbow, Juanito strongly
shoved Tonito to get a good view of the stage. The shove caused
Tonito to fall to the ground. Seeing this, Tony struck Juanito on the
head with his hand and caused the boy to fall and to hit his head on
a chair. Tony also wanted to strangle Juanito but the latter's aunt
prevented him from doing so. Juanito sustained a lacerated wound
on the head that required medical attendance for 10 days.
Tony was charged with child abuse in violation of Sec. 10(a), in

relation to Sec. 3(b)(2), of R.A. No. 7610 (Child Abuse Law) for
allegedly doing an "act by deeds or words which debases,
degrades or demeans the intrinsic worth and dignity of a child as a
human being." In his defense, Tony contended that he had no
intention to maltreat Juanito, much less to degrade his intrinsic
worth and dignity as a human being.
(a) Distinguish crimes ma/a in se from crimes ma/a prohibita. (3%)
(b) Was Tony criminally liable for child abuse under R.A. No. 7610?
Explain your answer. (3°/o)
II.
Sixteen year old Aliswan prodded Amethyst, his girlfriend, to

remove her clothing while they were secretly together in her
bedroom late one evening. Failing to get a positive response from
her, he forcibly undressed her. Apprehensive about rousing the
attention of the household who did not know of his presence inside
her room, she resisted him with minimal strength, but she was
really sobbing in a muffled manner. He then undressed himself
while blocking- the door. Yet, the image of a hapless and sobbing
Amethyst soon brought him to his senses, and impelled him to
leave her room naked. He did not notice in his hurry that Amante,
the father of Amethyst, who was then sitting alone on a sofa in the
sala, saw him leave his daughter's room naked.
Outside the house, the now-clothed Aliswan spotted Allesso,

Amethyst's former suitor. Knowing how Allesso had aggressively
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CRIMINAL LAW 3
pursued Amethyst, Aliswan fatally stabbed Allesso. Aliswan

immediately went into hiding afterwards.
Upon learning from Amethyst about what Aliswan had done to her,
an enraged Amante wanted to teach Aliswan a lesson he would
never forget. Amante set out the next day to look for Aliswan in his
school. There, Amante found a young man who looked very much
like Aliswan. Amante immediately rushed and knocked the young
man unconscious on the pavement, and then draped his body with
a prepared tarpaulin reading RAPIST AKO HUWAG TULARAN.
Everyone else in the school was shocked upon witnessing what
had just transpired, unable to believe that the timid and quiet Alisto,
Aliswan's identical twin brother, had committed rape.
(a) A criminal complaint for attempted rape with homicide was

brought against Aliswan in the Prosecutor's Office. However, after
preliminary investigation, the Investigating Prosecutor
recommended the filing of two separate informations - one for
attempted rape and the other for homicide. Do you agree with the
recommendation? Explain your answer. (3°/o)
(b) Before the trial court, Aliswan moved that the cases should be
dismissed because he was entitled to the exempting circumstance
of minority. Is his motion correct? Explain your answer. (3%)
(c) After receiving medical attendance for 10 days, Alisto consulted

you about filing the proper criminal complaint against Amante.
What crimes, if any, will you charge Amante with? Explain your
answer. (3°/o)
(d) Answering the criminal complaint filed by Alisto, Amante

contended that he had incurred no criminal liability for lack of
criminal intent on his part, his intended victim being Aliswan, not
Alisto. What is this defense of Amante, and explain if the same will
prosper? (3%)
Ill.
Overjoyed by the award to his firm of a multi-billion government

contract for the development of an economic and tourism hub in
the Province of Blank, Mr. Gangnam allotted the amount of P100
Million to serve as gifts for certain persons instrumental in his
firm's winning the award. He gave 50°/o of that amount to Governor
Datu, the official who had signed the contract with the proper
authorization from the Sangguniang Panlalawigan; 25% to Bokal
Diva, the Sangguniang Panlalawigan member who had lobbied for
the award of the project in the Sangguniang Panlalawigan; and 25%
to Mayor Dolor of the Municipality where the project would be
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CRIMINAL LAW 4
implemented. Governor Datu received his share through his wife,

Provincial First Lady Dee, who then deposited the amount in her
personal bank account.
Previously, upon facilitation by Bokal Diva, Mr. Gangnam concluded

an agreement with Mayor Dolor for the construction of the Blank
Sports Arena worth PSOO Million. The project was highly overpriced
because it could be undertaken and completed for not more than
P400 Million. For this project, Mayor Dolor received from Mr.
Gangnam a gift of P10 Million, while Bokal Diva got P25 Million.
In both instances, Bokal Diva had her monetary gifts deposited in

the name of her secretary, Terry, who personally maintained a bank
account for Bokal Diva's share in government projects.
(a) May each of the above-named individuals be held liable for

plunder? Explain your answer. (4o/o)
(b) Define wheel conspiracy and chain conspiracy. Is either or both

kinds existent herein? Explain your answer. (4o/o)
(c) What provisions of R.A. No. 3019 (Anti-Graft & Corrupt Practices
Act), if any, were violated by any of the above-named individuals,
specifying the persons liable therefor? Explain your answer. (4°/o)
(d) What crimes under the Revised Penal Code, if any, were
committed, specifying the persons liable therefor? Explain your
answer. (4°/o)
IV
Maita was the object of Solito's avid sexual desires. Solito had
attempted many times to entice Maita to a date in bed with him but
Maita had consistently refused. Fed up with all her rejections, Solito
abducted Maita around 7 p.m. one night. With his cohorts, Solito
forced Maita into a Toyota lnnova and drove off with her to a green-
painted house situated in a desolate part of the town. There, Solito
succeeded in having carnal knowledge of Maita against her will.
Meanwhile, the police authorities were tipped off that at 11 :30 p.m.
on that same night Solito would be selling marijuana outside the
green-painted house. Acting on the tip, the PNP station of the town
formed a buy-bust team with P02 Masahol being designated the
poseur buyer. During the buy-bust operation, Solito opened the
trunk of the Toyota lnnova to retrieve the bag of marijuana to be
sold to P02 Masahol. To cut the laces that he had tied the bag with,
Solito took out a Swiss knife, but his doing so prompted P02
Masahol to effect his immediate arrest out of fear that he would
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CRIMINAL LAW 5
attack him with the knife. P02 Masahol then confiscated the bag of
marijuana as well as the Toyota lnnova.
(a) Two informations were filed against Solito in the RTC - one for
forcible abduction with rape, raffled to Branch 8 of the RTC; the
other for illegal sale of drugs, assigned to Branch 29 of the RTC.
Was Solito charged with the proper offenses based on the
circumstances? Explain your answer. (5°k)
(b) While the Prosecution was presenting its evidence in Branch 29,
Branch 8 convicted Solito. Immediately after the judgment of
conviction was promulgated, Solito filed in both Branches a motion
for the release of the Toyota lnnova. He argued and proved that he
had only borrowed the vehicle from his brother, the registered
owner. Branch 8 granted the motion but Branch 29 denied it. Were
the two courts correct in their rulings? Explain your answer. (5%)
v
To aid in the rebuilding and revival of Tacloban City and the
surrounding areas that had been devastated by the strongest
typhoon. to hit the country in decades, the Government and other
sectors, including NGOs, banded together in the effort. Among the
NGOs was Ba..,gon Waray, Inc. (BaWI), headed by Mr. Jose Ma.
Gulang, its President and CEO. BaWI operated mainly as a social
amelioration and charitable institution. For its activities in the
typhoon-stricken parts of Leyte Province, BaWI received funds from
all sources, local and foreign, including substantial amounts from
legislators, local government officials and the EU. After several
months, complaints were heard about the very slow distribution of
relief goods and needed social services by BaWI.
The COA reported the results of its audit to the effect that at least
P10 Million worth of funds coming from public sources channeled
to BaWI were not yet properly accounted for. The COA demanded
reimbursement but BaWI did not respond. · ·
Hence, Mr. Gulang was criminally charged in the Office of the

Ombudsman with malversation of public funds and failure of
accountable officer to render accounts as respectively defined and
punished by Art. 217 and Art. 218 of the Revised Penal Code. He
was also· charged with violation of Sec. 3(e) of R.A. No. 3019 for
causing undue injury to the Government.
In his defense, Mr. Gulang mainly contended that he could not be

held 1iable under the various· charges because he was not a public
officer:
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(a) Who is a public officer? (2°k)
(b) Discuss whether the crimes charged against Mr. Gulang are
proper. Explain your answer. (3%)
VI
Answer with brief explanations the following queries:
(a) If the slightest penetration of the female genitalia consummates

rape by carnal knowledge, how does the accused commit attempted
rape by carnal knowledge? (2°k)
(b) What crime is committed by a capataz who enrolls two fictitious

names in the payroll and collects their supposed daily wages every
payday? (2°k)
(c) What is now the age of doli incapax in the Philippines? (2°/o)
(d) Why is there no crime of frustrated serious physical injuries?

(2o/o)
VII
Bernardo was enraged by his conviction for robbery by Judge

Samsonite despite insufficient evidence. Pending his appeal,
Bernardo escaped in order to get even with Judge Samsonite.
Bernardo learned that the judge regularly slept in his mistress'
house every weekend. Thus, he waited for the judge to arrive on
Saturday evening at the house of his mistress. It was about 8:00
p.m. when Bernardo entered the house of the mistress. He found
the judge and his mistress having coffee in the kitchen and
engaging in small talk. Without warning, Bernardo stabbed the
judge at least 20 times. The judge instantly died.
Prosecuted and tried, Bernardo was convicted of direct assault with

murder. Rule with reasons whether or not the conviction for direct
assault with murder was justified, and whether or not the trial court
should appreciate the following aggravating circumstances against
Bernardo, to wit: (1) disregard of rank and age of the victim, who
was 68 years old; (2) dwelling; (3) nighttime; (4) cruelty; and (5)
quasi-recidivism. (10%)
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CRIMINAL LAW 7
VIII
Porthos made a sudden turn on a dark street, and his Rolls-Royce

SUV bumped the rear of a parked Cadillac Sedan inside which
Aramis was then taking a nap. Angered by the violent Impact,
Aramis alighted and confronted Porthos who had also alighted.
Aramis angrily and repeatedly shouted at Porthos: Putang Ina mol
Porthos, displaying fearlessness, aggressively shouted back at
Aramls: Wag kang magtapang-tapangan dyan, papatayln ldtal
Without saying anything more, Aramis drew his gun from his waist
and shot Porthos in the leg. Porthos' wound was not llfe
threatening.
(a) What are the kinds of unlawful aggression, and which kind was
displayed in this case? Explain your answer. (3%)
(b) Standing trial for frustrated murder, Aramis pleaded self-

defense. The Prosecution's contention was that the plea of self-
defense applied only to consummated killings. Rule, with
explanations, on the tenability of Aramls' claim of self-defense, and
on the Prosecution's contention. (3%)
(c) Porthos insisted that the element of treachery was present. To

rule out treachery, Aramls asserted that both he and Porthos were
then facing and confronting each other when he fired the shot.
Rule, with reasons, on the respective contentions. (3°k)
IX
During the nationwide transport strike to protest the phase out of

old public utlllty vehicles, striking jeepney drivers Percy, Pablo,
Pater and Senclo, each anned with guns, halled several MMDA
buses then providing free transport to the stranded public to stop
them from plying their routes. They later on commandeered one of
the buses without allowing any of the passengers to alight, and told
the driver to bring the bus to Tanay, Rizal.
Upon reaching a remote area in Tanay, Percy, Pablo, Pater and

Senclo forcibly divested the passengers of their cash and
valuables. They ordered the passengers to leave thereafter. Then,
they burned the bus. When a tanod of the barangay of the area
came around to Intervene, Pater fired at him, instantly killing him.
After Percy, Pablo, Pater and Sencio were arrested, the pollce
authorities recommended them to be charged with the following
crimes, to wit: (1) camapplng; (2) robbery, (3) direct assault with
homicide; (4) kidnapping; and (5) arson.
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CRIMINAL LAW 8
State your legal opinion on the recommendation of the police

authorities on the criminal liabilities incurred by Percy, Pablo, Pater
and Sencio. (10%)
x.
Sammy Peke was convicted of a violation of R.A. No. 123456 for
selling fake books. The law prescribes the penalty of prision
correccional, a divisible penalty whose minimum period is six
months and one day to two years and four months; medium period
is two years, four months and one day to four years and two
months; and maximum period is four years, two months and one
day to six years.
At arraignment, Sammy Peke pleads guilty to the crime charged.
(a) Explain how the Indeterminate Sentence Law is applied in

crimes punished by special laws. (3%)
(b) Supposing the trial judge imposes a straight penalty of

imprisonment for one year, is the penalty correct in the context of
the Indeterminate Sentence Law? Explain your answer. (3%)
XI.
In his homily, Fr. Chris loudly denounced the many extrajudicial

killings committed by the men in uniform. Policeman Stone, then
attending the mass, was peeved by the denunciations of Fr. Chris.
He immediately approached the priest during the homily, openly
displayed his firearm tucked in his waist, and menacingly uttered at
the priest: Father, may kalalagyan kayo kung hindi kayo tumigil. His
brazenness terrified the priest, who cut short his homily then and
there. The celebration of the mass was disrupted, and the
congregation left the church in disgust over the actuations of
Policeman Stone, a co-parishioner.
Policeman Stone was subsequently charged.
The Office of the Provincial Prosecutor is now about to resolve the

case, and is mulling on what to charge Policeman Stone with.
May Policeman Stone be properly charged with either or both of the

following crimes, or, if not, with what proper crime?
.1'
CRIMINAL LAW 9
(a) Interruption of religious worship as defined and punished under

Art. 132 of the Revised Penal Code; and/or
(b) Offending the religious feelings as defined and punished under

Art. 133 of the Revised Penal Code.
Explain fully your answers. (8%)
-NOTHING FOLLOWS-
7'
LABOR & SOCIAL LEGISLATION
November 5, 2017 2:00 P .M. - 6:00 P .M.
INSTRUCTIONS
your answers only on the front of every page of your Notebook. IJ
continuou sly on the same page and on the immediately succeeding

facts, apply the pertinent laws and jurisprude nce, and arrive at
sound and logical conclusio ns. Answers must fully explain even if
"No" answer sans explanation or discussio n will not be given full
credit

Good luckl
SUPREME COURT OF THE PHlll!>PiNES
1rman
1 D)1~~1ffi
J~~~~~~lW Z'ilCJ
LABOR & SOCIAL LEGISLATION 2
A.
What are the accepted tests to determine the existence of an
employer-employee relationship? (5%)
B.
Applying the tests to determine the existence of an employer-
employee relationship, is a jeepney driver operating under the
boundary system an employee of his jeepney operator or a mere
lessee of the jeepney? Explain your answer. (3°/o)
11.
Procopio was dismissed from employment for stealing his co-

employee Raul's watch. Procopio filed a complaint for illegal
dismissal. The Labor Arbiter ruled in Procopio's favor on the
ground that Raul's testimony was doubtful, and, therefore, the
doubt should be resolved in favor of Procopio. On appeal, the NLRC
reversed the ruling because Article 4 of the Labor Code - which
states that all doubts in the interpretation and implementation of the
provisions of the Labor Code, including the implementing rules and
regulations, shall be resolved in favor of labor - applied only when
the doubt involved the "implementation and interpretation" of the
Labor Code; hence, the doubt, which involved the application of the
rules on evidence, not the Labor Code, could not necessarily be
resolved in favor of Procopio. Was the reversal correct? Explain
your answer. (3%)
Ill.
A.
Andrew Manning Agency (AMA) recruited Feliciano for employment
by lnvictus Shipping, its foreign principal. Meantime, AMA and
lnvictus Shipping terminated their agency agreement. Upon his
repatriation following his premature termination, Feliciano claimed
from AMA and lnvictus Shipping the payment of his salaries and
benefits for the unserved portion of the contract. AMA denied
liability on the ground that it no longer had an agency agreement
with lnvictus Shipping. Is AMA correct? Explain your answer. (3%)
;:f
8.
As a rule, direct hiring of migrant workers is not allowed. What are

the exception s? Explain your answer. (2.5°/o)
c.
Phil, a resident alien, sought employme nt in the Philippine s. The
employer, noticing that Phil was a foreigner, demanded that he first
secures an employme nt permit from the DOLE. Is the employer
correct? Explain your answer. (2.5°/o)
IV.
The Regional Tripartite Wages and Productiv ity Board (RTWPB) for
Region 3 issued a wage order on November 2, 2017 fixing the
minimum wages for all industries throughou t Region 3.
(a) Is the wage order subject to the approval of the National Wages
and Productiv ity Commissi on before it takes effect? (2%)
(b) The law mandates that no petition for wage increase shall be
entertaine d within a period of 12 months from the effectivity of the
wage order. Under what circumsta nces may the Kilusang Walang
Takot, a federation of labor organizati ons that publicly and openly
assails the wage order as blatantly unjust, initiate the review of the
wage increases under the wage order without waiting for the end of
the 12-month period? Explain your answer. (3°/o)
v.
A.
Percival was a mechanic of Pacific Airlines. He enjoyed a meal
break of one hour. However, during meal breaks, he was required
to be on stand-by for emergenc y work. During emergenc ies, he
was made to forego his meals or to hurry up eating. He demanded
payment of overtime for work done during his meal periods. Is
Percival correct? Explain your answer. (3%)
-'
8.
Distingu ish a learner from an apprenti ce. (4°/o)
c.
Are there differen ces between a househe lper and a homewo rker?
VI.
A.
One of Pacific Airline's policies was to hire only single applican ts
as flight attendants, and conside red as automat ically resigned the
flight attendan ts at the moment they got married. Is the policy
valid? Explain your answer. (2.5%)
B.
Tarcisio was employe d as operatio ns manage r and received a
monthly salary of P25,000 .00 through his payroll account with DB
Bank. He obtained a loan from Roberto to purchas e a car. Tarcisio
failed to pay Roberto when the loan fell due. Roberto sued to
collect, and moved to garnish Tarcisio 's payroll account . The latter
vigorou sly objected and argued that salaries were exempt from
garnishm ent. Is Tarcisio correct? Explain your answer. (3%)
VII.
Dr. Crisosto mo entered into a retainer agreeme nt with AB Hotel and

Resort whereby he would provide medical services to the guests
and employe es of AB Hoteland Resort, which, in turn, would
provide the clinic premise s and medical supplies . He received a
monthly retainer fee of P&0,000.00, plus a 70% share in the service
charges from AB Hoteland Resort's guests availing themsel ves of
the clinic's services . The clinic employe d nurses and allied staff,
whose salaries, SSS contribu tions and other benefits he underto ok
to pay. AB Hotel and Resort issued directive s giving instruct ions to
him on the replenis hment of emergen cy kits and forbiddi ng the
clinic staff from receiving cash paymen ts from the guests.
"
"'
In time, the nurses and the clinic staff claimed entitlement to rights
as regular employees of AB Hoteland Resort, but the latter refused
on the ground that Dr. Crisostomo, who was their employer, was an
independent contractor. Rule, with reasons. (4o/o)
VIII.
Marciano was hired as Chief Engineer on board the vessel MN

Australia. His contract of employment was for nine months. After
nine months, he was re-hired. He was hired a third time after
another nine months. He now claims entitlement to the benefits of
a regular employee based on his having performed tasks usually
necessary and desirable to the employer's business for a
continuous period of more than one year. Is Marciano's claim
tenable? Explain your answer. (3%)
IX.
Section 255 (245) of the Labor Code recognizes three categories of

employees, namely: managerial, supervisory, and rank-and-file.
(a) Give the characteristic s of each category of employees, and

state whether the employees in each category may organize and
form unions. Explain your answer. (5°/o)
(b) May confidential employees who assist managerial employees,

and who act in a confidential capacity or have access to
confidential matters being handled by persons exercising
managerial functions in the field of labor relations form, or assist,
or join labor unions? Explain your answer. (2.5°/o)
x.
A.
The labor sector has been loudly agitating for the end of labor-only
contracting, as distinguished from job contracting. Explain these
two kinds of labor contracting, and give the effect of a finding that
one is a labor-only contractor. Explain your answers. (4°/o)
A
B.
What are the grounds for validly terminating the services of an
employee based on a just cause? (5°/o)
c.
Give the procedure to be observed for validly terminating the
services of an employee based on a just cause? (4%)
XI.
A.
The modes of determining the exclusive bargaining agent of the
employees in a business are: (a) voluntary recognition; (b)
certification election; and (c) consent election. Explain how they
differ from one another. (4%)
B.
Marcel was the Vice President for Finance and Administration and a
member of the Board of Directors of Mercedes Corporation. He
brought a complaint for illegal suspension and illegal dismissal
against Mercedes Corporation, which moved to dismiss the
complaint on the ground that the complaint pertained to the
jurisdiction of the RTC due to the controversy being intracorporate
based on his positions in the corporation. Marcel countered that he
had only been removed as Vice President for Finance and
Administration, not as a member of the Board of Directors. He also
argued that his position was not listed as among the corporate
offices in Mercedes Corporation's by-laws. Is the argument of
Marcel correct? Explain your answer. (2.5%)
c.
State the jurisdiction of the Voluntary Arbitrator, or Panel of
Voluntary Arbitrators in labor disputes? (4°/o)
'
.?I
XII.
A.
Juanito initiated a case for illegal dismissal against Mandarin
Company. The Labor Arbiter decided in his favor~ and ordered his
immediate reinstatement with full backwages and without loss of
seniority and other benefits. Mandarin Company did not like to
allow him back in its premises to prevent him from influencing his
co-workers to move against the interest of the company; hence, it
directed his payroll reinstatement and paid his full backwages and
other benefits even as it appealed to the NLRC.
A few months later, the NLRC reversed the ruling of the Labor
Arbiter and declared that Juanito's dismissal was valid. The
reversal ultimately became final.
May Mandarin Company recover the backwages and other benefits

paid to Juanito pursuant to the decision of the Labor Arbiter in view
of the reversal by the NLRC? Rule, with reasons. (2.5%)
B.
Gene is a married regular employee of Matibay Corporation. The
employees and Matibay Corporation had an existing CBA that
provided for funeral or bereavement aid of P15,000.00 in case of the
death of a legal dependent of a regular employee. His widowed
mother, who had been living with him and his family for many
years, died; hence, he claimed the funeral aid. Matibay Corporation
denied the claim on the basis that she had not been his legal
dependent as the term legal dependent was defined by the Social
Security Law.
(a) Who may be the legal dependents of Gene under the Social
Security Law? (2.5%)
(b) Is Gene entitled to the funeral aid for the death of his widowed
mother? Exp~ain your answer. (2°/0)
c.
Rosa was granted vacation leave by her employer to spend three
weeks in Africa with her family. Prior to her departure, the General
Manager of the company requested her to visit the plant of a client
of the company in Zimbabwe in order to derive best manufacturing
practices useful to the company. She accepted the request because
~
the errand would be important to the company and Zimbabwe was

anyway in her itinerary. It appears that she contracted a serious
disease during the trip. Upon her return, she filed a claim for
compensation, insisting that she had contracted the disease while
serving the interest of her employer.
Under the Labor Code, the sickness or death of an employee, to be

compensable, must have resulted from an illness either definitely
accepted as an occupational disease by the Employees'
Compensation Commission, or caused by employment subject to
proof that the risk of contracting the same is increased by working
conditions.
Is the serious disease Rosa contracted during her trip to Africa

compensable? Explain your answer. (2.So/o)
XIII.
A.
Given that the liability for an illegal strike is individual, not
collective, state when the participating union officers and members
may be terminated from employment because of the illegal strike.
8.
A sympathetic strike is stoppage of work to make common cause

with other strikers in another establishment or business. Is the
sympathetic strike valid? Explain your answer. (1°k)
c.
Due to business recession, Ballistic Company retrenched a part of
its workforce. Opposing the retrenchment, some of the affected
employees staged a strike. Eventually, the retrenchment was found
to be justified, and the strike was declared illegal; hence, the
leaders of the strike, including the retrenched employees, were
declared to have lost their employment status.
Are the striking retrenched employees still entitled to separation

pay under Sec. 298 (283) of the Labor Code despite the illegality of
their strike? Explain your answer. (2%)
~
XIV.
Pursuant to his power under Sec. 278(g) (263(g)) of the Labor Code,
the Secretary of Labor assumed jurisdictio n over the 3-day old
strike in Armor Steel Plates, Inc., one of the country's bigger
manufactu rers of steel plates, and ordered all the striking
employee s to return to work. The striking employee s ignored the
order to return to work.
(a) What conditions may justify the Secretary of Labor to assume

jurisdictio n? (2.5°k)
(b) What are the conseque nces of the assumptio n of jurisdictio n by

the Secretary of Labor, and of the disobedie nce to the return to
work? Explain your answer. (2.5%)
-NOTHING FOLLOWS-
9r
LEGAL & JUDICIAL ETHICS
November 26, 2017 2:00 P.M. - 6:00 P.M.
INSTRUCTIONS
1. This Questionnaire contains ten (10) pages. Check and make sure

credit.

Good luck!
irman
......_ .,.. • ' 'ar Examinations
LEGAL AND JUDICIAL ETHICS 2
I.
A.
Brando & Luzon Law Office had a retainer agreement with Gregory,
a businessman with shady connections. Gregory was recently
charged in the RTC in Manila with money laundering in relation to
an illegal drugs syndicate using Cable Co., his holding company, as
its money laundering conduit. The members of the Brando & Luzon
Law Office assigned to handle Gregory's account, including
yourself, were implicated in the money laundering case for their
role in the incorporation of Cable Co. and in the active management
of its business affairs.
In a bid to fortify the case against Gregory and the others, the
public prosecutor approaches you (as the least guilty person who
will qualify for a discharge as a state witness) and offers to make
you a state witness. Should you accept the offer? Explain your
answer. (5%)
B.
Under the facts of the preceding question, assume that you had
resigned from the Brando & Luzon Law Office prior to the filing of
the money laundering case against Gregory and the others, and
that you were not implicated in the case. However, you had assisted
in handling the Cobra Co. account during your time with the law
firm. Cobra Co. was largely owned by Cable Co.
The public prosecutor handling the case against Gregory and the
others asks you, as a former member of the Brando & Luzon Law
Office, to help strengthen the case for the Government, and hints
that you may be implicated in the case if you do not cooperate.
What is your legal and ethical course of action? Explain your
answer. (5%)
II.
A.
Pedro Tig_as, a known toughie, asked Atty. Chloe to meet with him
in the Jollibee Restaurant in Harrison Plaza because he wanted to
seek her legal advice on an important matter. Atty. Chloe had once
before been consulted by Pedro Tigas, who had then paid her well.
When they met in Jollibee Restaurant, he confided his planned
"
~
assassination of Pepeng Taga, his rival for control of the

neighborhood in San Andres Bukid, Manila. He wanted her to
represent him should he be apprehended for the assassination.
Atty. Chloe did not agree, and left the restaurant in a hurry before
Pedro Tigas could utter anything more.
A few days afterwards, Pepeng Taga was killed near his house in
San Andres Bukid, Manila. The police follow-up team arrested
Pedro Tigas on the basis of testimony by at least two residents that
they had heard him saying two days before the killing that Pepeng
Taga would not live beyond 48 hours. Should Atty. Chloe reveal to
the police investigator what Pedro Tigas had stated to her at the
Jollibee Restaurant without violating the confidence of the latter as
a client? Explain your answer. (4%)
B.
Assuming that the meeting between Pedro Tigas and Atty. Chloe in
Jollibee Restaurant occurred after the killing of Pepeng Taga, and in
that meeting Pedro Tigas expressly admitted to Atty. Chloe in strict
confidence as his lawyer that he had shot Pepeng Taga. Is Atty.
Chloe ethically bound to reveal the admission of Pedro Tigas to the
police investigator what Pedro Tigas had stated to her at the
Jollibee Restaurant? Explain your answer. (4°/o)
Ill.
A.
Alleging that Atty. Frank had seduced her when she was only 16
years old, and that she had given birth to a baby girl as a result,
Malen filed a complaint for his disbarment seven years after the
birth of the child charging th.at he was a grossly immorat person
unworthy and unfit to continue in the Legal Profession. In his
comment, Atty. Frank argued that the complaint for disbarment
should be dismissed because of prescription.
Explain whether or not Atty. Frank's argument is justified. (4o/o)
B.
Beth administratively charged her former lawyer, Atty. Rawet, with

gross misconduct and gross ignorance of the law for the latter's
inadequate legal representation of her in her suit against her
~
neighbor. Midway during the investigation, Beth decided to migrate

to Australia. Learning about her plans, Atty. Rawet approached her
and pleaded for her understanding. He was able to persuade her to
execute an affidavit of desistance in respect of her administrative
complaint. He submitted the affidavit of desistance to the Supreme
Court, and moved to dismiss the charge against him.
Will the affidavit of desistance warrant the dismissal of the

administrative charge? Explain your answer. (4%)
IV.
Atty. Jessa was the counsel for Mr. Nolan, a cantankerous

millionaire, in the latter's personal case. Soon after the case was
submitted for decision, Mr. Nolan withdrew the files from Atty.
Jessa and informed her that he was engaging another lawyer. On
that same day, a copy of the decision in the case was received by
Atty. Jessa but she did not do anything anymore with the decision.
She did not also file a withdrawal of her appearance. Mr. Nolan's
new counsel did not file any notice of his appearance. By the time
Mr. Nolan found out about the adverse decision, his period to
appeal had lapsed.
Was the service of the decision on Atty. Jessa still effective?

v.
Eva consulted Atty. Doble Kara, a well-known solo practitioner, to

represent her as a probable heir to the huge estate of her late
lamented grandaunt who died without issue. After Atty. Doble Kara
perused the documents relevant to the estate presented by Eva, he
told Eva that he could not be of help to her.
A few days later, Eva learned that Atty. Doble Kara had just initiated
intestate proceedings involving the same estate in the RTC, and the
petitioner seeking appointment as administratrix was Mely, Eva's
hostile cousin and co-heir to the estate.
Eva moved to immediately disqualify Atty. Doble Kara from

representing Mely on the ground of conflict of interest, but Atty.
Doble Kara explained to the estate court that there was no conflict
of interest because he had no lawyer-client relationship with Eva.
He further indicated that Eva had not also paid him any retainer fee.
~
Given his explanations to the estate court, may Atty. Doble Kara
ethically represent Mely? (4%)
VI.
For services to be rendered by Atty. Hamilton as counsel for Gener

in a civil case involving the recovery of the ownership and
possession of a parcel of land with an area of 5,000 square meters,
the two of them agreed on a success fee for Atty. Hamilton of
P50,000.00 plus 500 square meters of the land. The trial court
ultimately rendered judgment in favor of Gener, and the judgment
became final and executory. After receiving P50,000.00, Atty.
Hamilton demanded the transfer to him of the promised 500 square
meters of the land.
Instead of complying, Gener brought an administrative complaint

charging Atty. Hamilton with violation of the Code of Professional
Responsibility and Art. 1491(5) of the Civil Code for demanding the
delivery of a portion of the land subject of the litigation.
Is Atty. Hamilton liable under the Code of Professional

Responsibility and the Civil Code? Explain your answer. (4°/o)
VII.
A.
You had just taken your oath as a new lawyer. The secretary of a
big university offered to get you as the university's notary public.
She explained that the faculty and students would be sent to you to
have their documentations and affidavits notarized; and that the
arrangement would be very lucrative for you. However, the
secretary wants you to share with her half of your earnings
throughout the year.
Will you agree to the arrangement proposed by the secretary of the

university? Explain your answer. (4%)
B.
The plaintiff died during the pendency of the case in the RTC. If you
were the counsel of the plaintiff, what is the last duty you need to
discharge in behalf of the late client before your professional
'
.51
engagement for the case may be deemed terminated? Explain

briefly your answer. (4%)
VIII.
A.
Sancho Mahilig went to the office of Atty. Charm to engage her legal
representation in the criminal case for adultery that the husband of
his socialite friend had brought against him in the City Prosecutor's
Office in Manila. Atty. Charm thoroughly interviewed Sancho in her
office with only Linda, the secretary/stenographer of Atty. Charm,
the only other person present. On that occasion, Sancho candidly
informed Atty. Charm about his illicit affair with the socialite wife,
and gave many details. Linda faithfully recorded the interview.
During the trial of the criminal case for adultery, the trial prosecutor
requested the court to issue a subpoena duces tecum to compel the
production of the record of the interview and a subpoena ad
testificandum to compel Linda to testify on the admission of the
affair by Sancho. Atty. Charm objected to the request on the basis
of lawyer-client confidentiality.
If you were the trial judge, how will you resolve the objection of
Atty. Charm? Justify your answer. (4o/o)
B.
Prosecutor Regan was designated to represent the State during the

trial of an action to declare the nullity of a marriage. He realized
soon enough, however, that the counsels of the parties were very
competent and sincere in doing their work for their respective
clients. Thus, Prosecutor Regan, mindful of his large caseload of
preliminary investigations, and believing that his attendance at the
trial was superfluous, decided not to attend the trial anymore so
that he could devote more time to the work back in his office.
Explain whether or not the decision of Prosecutor Regan to miss

the trial of the action to declare the nullity of the marriage was
warranted. (4%)
IX.
Atty. Miriam rents her office space in a building owned by Winston.

Eventually, Atty. Miriam became Winston's regular legal counsel.
'?
Because of their good relationship, Atty. Miriam did not hesitate to

borrow money from Winston. Atty. Miriam issued postdated checks
covering the interest of her loans. Unfortunately, Atty. Miriam failed
to pay her obligations to Winston. Her postdated checks with
Winston also bounced. Hence, he filed a criminal case for violation
of the Bouncing Checks Law against her.
In her counter-affidavit, Atty. Miriam averred that Winston was "a

businessman who is engaged in the real estate business, trading
and buy and sell of deficiency taxed imported cars, shark loans and
other shady deals and has many cases pending in court."
Hurt by the allegations, Winston filed a disbarment complaint

against Atty. Miriam arguing that her allegations in the counter-
affidavit constituted a breach of their confidential lawyer-client
relationship.
Discuss whether or not the disclosures in Atty. Miriam's counter-

affidavit constitute a breach of fidelity towards her client. (4°/o)
x.
Atty. Anna Kirmet was one of Worry Bank's valued clients. The
bank gave her a credit card with a credit limit of P250,000.00.
Because of her extravagance, Atty. Kirmet exceeded her credit limit
and refused to pay the monthly charges as they fell due.
Hence, aside from a collection case, Worry Bank filed a disbarment

case against Atty. Kirmet. In her comment on the disbarment
complaint, Atty. Kirmet insisted that she did not violate the Code of
Professional Responsibility because her obligation to the bank was
personal in nature and had no relation to her being a lawyer.
Is Atty. Kirmet correct? Explain your answer briefly. (4%)
XI.
A.
Define champerty. (3%)
B.
Atty. Andy and Atty. Valeriano were classmates in law school. As

such, they developed a close friendly relationship. They agreed that
they would refer clients to each other, and whoever referred clients
.JZ,
would receive a commission or portion of the attorney's fees. Atty.

Andy referred a client to Atty. Valeriano, who charged the client
P100,000.00 as initial attorney's fees. Thereafter, Atty. Valeriano
sent 15°/o of P100,000.00, or P15,000.00, to Atty. Andy as the latter's
referral fee.
Explain if the agreement on the referral fee is ethical. (3%)
XII.
Atty. Simplicio published the following advertisement in a local

newspaper: "Annulment of Marriage, Competent Attorney,
Reasonable Fees, Call 221-2345."
A Justice of the Supreme Court saw the advertisement and

thereafter called the attention of his colleagues. The Supreme Court
directed the Bar Confidant investigate the matter. When directed to
explain why no disciplinary action should be taken against him for
the improper advertisement, Atty. Simplicio contended that: (a) the
advertisement was not improper because his name was not
mentioned; and (b) he could not be subjected to disciplinary action
because there was no complaint filed against him.
Rule on Atty. Simplicio's contentions. (4%)
XIII.
Herbert Madasalin, a 25-year old Bar candidate, surrendered his

driver's license to the security guard at the Arlegui Gate when he
entered the Malacanang compound to pray at the National Shrine of
St. Jude Thaddeus. After praying the novena to St. Jude, Herbert
went to the Arlegui Gate to retrieve his driver's license. However, he
was not able to get the license because the security guard was then
elsewhere. He returned the next day only to be told that the security
guard had misplaced the license. The security guard concerned
could not anymore remember where he had placed the license.
Herbert immediately requests your assistance in the preparation of

an affidavit of loss. His address is at 143 Zuzuaregui Street, Don
Antonio Heights, Quezon City. As his friend, prepare Herbert's
affidavit of loss. (5%)
XIV.
Kyle Angelo was served with summons and a copy of the complaint
of Ciara Jane for collection of the amount of P1 ,000,000.00 as
•
~
evidenced by a promissory note signed by Kyle Angelo. She alleged

that the debt was overdue; and that Kyle Angelo refused to pay
despite repeated demands.
Kyle Angelo engaged the services of Atty. Carlos Sa bit, who

decided to file a motion to dismiss on the ground of lack of cause of
action and prescription. Atty. Carlos Sabit drafted the motion and
sent the draft to Kyle Angelo for his perusal. Kyle Angelo, being
himself a law graduate, quickly noticed that the draft did not contain
a notice of hearing.
Draft the notice of hearing that Atty. Carlos Sabit should include in
the motion to dismiss. (3%)
xv.
Believing that an onerous transfer would result in lesser taxes than
a gratuitous transfer, Nenita Villo, a widow, decided to sell her lone
asset worth P3,000,000.00 to her daughters, Andrea, Carina and
Carissa, all of legal age, gainfully employed and still unmarried.
The asset consisted of the house and the lot registered under
Transfer Certificate of Title No. 67890 of the Register of Deeds of
Paranaque City and situated at No. 3156 Bayswater Street, Metro
Ville Subdivision, Paranaque City where Nenita and her daughters
presently resided.
Nenita required her daughters to make a down payment of

P1 ,000,000.00, and the balance to be paid once the title to the
property was transferred to her daughters' names. All the taxes,
fees, and costs related to the sale would be for the account of
Nenita, while those related to the transfer of title would be paid by
Andrea, Carina and Carissa.
Draft the contract to be executed by Nenita and her daughters in

connection with the transfer of the house and lot. Omit details other
than those stated in the question. (10%)
XVI.
Determine if the following advertisements by an attorney are ethical

or unethical. Explain your answer.
(a) A calling card, 2 inches x 2 inches in size, bearing the attorney's

name in bold print, office, residence and email addresses,
telephone and facsimile numbers. (2%)
~
(b) A business card, 3 inches x 4 inches in size, indicating the

aforementioned data with his 1 inch x 1 inch photograph. (2°/o)
(c) A pictorial press release in a broadsheet newspaper made by the

attorney showing him being congratulated by the president of a
client corporation for winning a multi-million damage suit against
the company in the Supreme Court. (2°/o)
(d)The same press release made in a tabloid by the attorney's

client. (2°/o)
(e) A small announcement that the attorney is giving free legal

advice on November 30, 2017 published in Balita, a tabloid in
Filipino. (2°/o)
- NOTHING FOLLOWS -
4
'
MERCANTILE LAW
November 19, 2017 8:00 A.M. - 12:00 N.N.
INSTRUCTIONS
1. This Questionnaire contains eleven (11) pages. Check and make

sure that your Questionnaire has the correct number of pages. You
may write on your Questionnaire as you answer the questions.

credit.

Good luck!
irman
--- Bar Examinations
2017
MERCANTILE LAW 2
I.
A.
Absolute Timber Co. (ATC) has been engaged in the logging

business in lsabela. To secure one of its shipments of logs to be
transported by Andok Shipping Co., ATC purchased a marine policy
with an "all risks" provision. Because of a strong typhoon then
hitting Northern Luzon, the vessel sank and the shipment of logs
was totally lost. ATC filed its claim, but the insurer denied the claim
on several grounds, namely: (1) the vessel had not been seaworthy;
(2) the vessel's crew had lacked sufficient training; (3) the improper
loading of the logs on only one side of the vessel had led to the
tilting of the ship to that side during the stormy voyage; and (4) the
extremely bad weather had been a fortuitous event.
ATC now seeks your legal advice to know if its claim was
sustainable. What is your advice? Explain your answer. (3°/o)
B.
The newly restored Ford Mustang muscle car was just released
from the car restoration shop to its owner, Seth, an avid sportsman.
Given his passion for sailing, he needed to go to a round-the-world
voyage with his crew on his brand-new 180-meter yacht. Hearing
about his coming voyage, Sean, his bosom friend, asked Seth if he
could borrow the car for his next roadshow. Sean, who had been in
the business of holding motor shows and promotions, proposed to
display the restored car of Seth in major cities of the country. Seth
agreed and lent the Ford Mustang to Sean. Seth further expressly
allowed Sean to use the car even for his own purposes on special
occasions during his absence from the country. Seth and Sean then
went together to Bayad Agad Insurance Co. (BAIC) to get separate
policies for the car in their respective names.
SAIC consults you as its lawyer on whether separate policies could

be issued to Seth and Sean in respect of the same car.
(a) What is insurable interest? (2%)
(b) Do Seth and Sean have separate insurable interests? Explain

brieflyyouranswe~(3%)
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MERCANTILE LAW 3
II.
A.
Morgan, a lawyer, received a lot of diving and other water sports

equipment as payment of his professional fees by Dennis, his client
in a child custody case. Dennis owned a diving and water sports
dealership in Anilao, Batangas. Morgan decided to name Dennis as
entrustee because he did not have any experience in selling such
specialized sports equipment. They executed a trust receipt
agreement, with Morgan as entruster and Dennis as entrustee.
Before the sports equipment could be sold, a strong typhoon hit

Batangas. Anilao and other parts of Batangas experienced power
outage. Taking advantage of the total darkness, unidentified thieves
destroyed the padlocks of the establishment of Dennis, and carted
off the equipment inside.
Morgan demanded that Dennis pay the value of the stolen

equipment, but the latter refused on the ground that he also had
suffered from the effects of the typhoon, and insisted that the cause
of the loss was a fortuitous event or force majeure.
Is the justification of Dennis warranted? Explain your answer. (4o/o)
B.
Safe Warehouse, Inc. (Safe) issued on various dates negotiable

warehouse receipts to Peter, Paul and Mary covering certain goods
deposited by the latter with the former. Peter, Paul and Mary then
negotiated and endorsed the warehouse receipts to Cyrus, Magnus
and Charles upon payment by the latter of valuable consideration
for the warehouse receipts. Cyrus, Magnus and Charles were not
aware of, nor were they parties to any irregularity or infirmity
affecting the title or the face of the warehouse receipts.
On due dates of the warehouse receipts, Cyrus, Magnus and

Charles demanded that Safe surrender the goods to them. Safe
refused because its warehouseman's claim must first be paid.
Cyrus, Magnus and Charles refused to pay, and insisted that such
claim was the liability of Peter, Paul and Mary.
(a) What is a warehouseman's claim? (3%)
(b) Is Safe's refusal to surrender the goods to Cyrus, Magnus and

Charles legally justified? Explain your answer. (3%)
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MERCANTILE LAW 4
Ill.
A.
Data Realty, Inc. (ORI) was engaged in realty development. The

family of Matteo owned 100°/o of the capital stock of ORI. Matteo
was also the President and Chairman of the Board of Directors.
Other members of Matteo's family held the major positions in ORI.
Because of a nasty takeover fight with D&E Realty Co., Inc. (D&E),
another realty developer, for the control of a smaller realty company
with vast landholdings, ORI and D&E engaged in an expensive
litigation that eventually led to a money judgment being rendered in
favor of D&E.
Meantime, ORI, facing inability to pay its liabilities as they fall due
but still holding substantial assets, filed a petition for voluntary
rehabilitation. Trying to beat the consequences of rehabilitation
proceedings, D&E moved in the trial court for the issuance of a writ
of execution. The trial court also happened to be the rehabilitation
court. The writ of execution was issued.
Serving the writ of execution, Merto, the court sheriff who had just
passed his Credit Transactions subject in law school, garnished
Matteo's bank accounts, and levied his real properties, including
his house and lot in Makati.
Are the garnishment and levy of Matteo's assets lawful and proper?
B.
Sid used to be the majority stockholder and President of Excellent

Corporation (Excellent). When Meridian Co., Inc. (Meridian), a local
conglomerate, took over control and ownership of Excellent, it
brought along its team of officers. Sid thus became a minority
stockholder and a minority member of the Board of Directors.
Excellent, being the leading beverage manufacturer in the country,
became the monopoly when Meridian's own beverage business was
merged with Excellent's, thereby making Excellent virtually the only
beverage manufacturer in the country.
Left out and ignored by the management, Sid became a fiscalizer of

sorts, questioning during the Board meetings the direction being
pursued by Excellent's officers.
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MERCANTILE LAW 5
Ultimately, Sid demanded the inspection of the books and other

corporate records of Excellent. The management refused to comply,
saying that his right as a minority stockholder has been much
reduced.
State under what conditions may Sid properly assert his right to
inspect the books and other corporate records of Excellent. Explain
your answer. (3°/0)
IV.
Procopio, a Director and the CEO of Parisian Hotel Co., Inc.

(Parisian), was charged along with other company officials with
several counts of estafa in connection with the non-remittance of
SSS premiums the company had collected from its employees.
During the pendency of the cases, Parisian filed a petition for
rehabilitation. The court, finding the petition to be sufficient in form
and substance, issued a commencement order together with a stay
or suspension order.
Citing the commencement order, Procopio and the other officers

facing the criminal charges moved to suspend the proceedings in
the estafa cases.
(a) What is a commencement order, and what is the effect of its

issuance? Explain your answer. (4%)
(b) Suppose you are the trial judge, will you grant the motion to
suspend of Procopio, et al.? Explain your answer. (4%)
v.
A.
Under the Nell Doctrine, so called because it was first pronounced

by the Supreme Court in the 1965 ruling in Nell v. Pacific Farms, Inc.
(15 SCRA 415), the general rule is that where one corporation sells
or otherwise transfers all of its assets to another corporation, the
latter is not liable for the debts and liabilities of the transferor.
State the exceptions to the Nell Doctrine. (4o/o)
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MERCANTILE LAW 6
B.
Santorini Corporation (Santorini) was in dire straits. In order to firm

up its financial standing, it agreed to entertain the merger and
takeover offer of Proficient Corporation (Proficient}, the leading
company in their line of business. Erica, the major stockholder of
Santorini, strongly opposed the merger and takeover. The matter of
the merger and takeover by Proficient was included in the agenda
of the next meeting of Santorini's Board of Directors. However,
owing to Erica's serious illness that required her to seek urgent
medical treatment and care in Singapore, she failed to attend the
meeting and was consequently unable to cast her vote. The Board
of Directors approved the merger and takeover. At the time of the
meeting, Santorini had been in the red for a number of years owing
to its recurring business losses and reverses.
Erica seeks your legal advice regarding her right as a stockholder

opposed to the corporate action. Explain your answer. (4°/o)
c.
Samito is the President and a Director of Lucky Bank (Lucky}, a

commercial bank holding its main office in Makati. His brother,
Othello, owned a big fishing business based in Malabon. Othello
applied for a loan of PSO Million with Lucky. Othello followed the
ordinary banking procedures in all the stages of the processing of
his application. When required, he made the necessary
arrangements to guarantee the loan. Thus, in addition to the real
estate mortgage, Othello executed a joint and solidary suretyship,
issued postdated checks, and submitted all other requirements
prescribed by Lucky.
When the loan application was about to be approved and the

proceeds released, BG Company, a keen competitor of Othello in
the fishing industry, wrote to the Board of Directors and the
management of Lucky questioning the loan on the ground of
conflict of interest due to Samito and Othello being brothers, citing
the legal restriction against bank exposure of directors, officers,
stockholders or their related interests (DOSRI).
(a) What are the three restrictions imposed by law on DOSRI

transactions? (4o/o)
(b) Is BG Company's opposition based on conflict of interest and

violation of the restrictions on DOSRI transactions legally and
factually correct? Explain your answer. (4°/o)
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MERCANTILE LAW 7
VI.
A.
Hortencio owned a modest grocery business in Laguna. Because of

the economic downturn, he incurred huge financial liabilities. He
remained afloat only because of the properties inherited from his
parents who had both come from landed families in Laguna. His
main creditor was Puresilver Company (Puresilver), the principal
supplier of the merchandise sold in his store. To secure his credit
with Puresilver, he executed a real estate mortgage with a dragnet
clause involving his family's assets worth several millions of pesos.
Nonetheless, Hortencio, while generally in the black, now faces a

situation where he is unable to pay his liabilities as they fall due in
the ordinary course of business. What will you advise him to do to
resolve his dire financial condition? Explain your answer. (5°k)
B.
Wyatt, an internet entrepreneur, engaged in a sideline business of

creating computer programs for selected clients on a per project
basis and for servicing basic computer problems of his friends and
family members. His main job was being an IT consultant at Futurex
Co., a local computer company.
Because of his ill-advised investments in the stock market and the

fraud perpetrated against him by his trusted confidante, Wyatt was
already drowning in debt, that is, he had far more liabilities than his
entire assets.
What legal recourse remained available to Wyatt? Explain your

answer. (5%)
VII.
A.
Virtucio was a composer of llocano songs who has been quite

popular in the llocos Region. Pascuala is a professor of music in a
local university with special focus on indigenous music. When she
heard the musical works of Virtucio, she purchased a CD of his
works. She copied the CD and sent the second copy to her Music
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MERCANTILE LAW 8
instructions for the class to listen to the CD and analyze the works
of Virtucio.
Did Pascuala thereby infringe Virtucio's copyright? Explain your

answer. (4%)
B.
Super Biology Corporation (Super Biology) invented and patented a

miracle medicine for the cure of AIDS. Being the sole manufacturer,
Super Biology sold the medicine at an exorbitant price. Because of
the sudden prevalence of AIDS cases in Metro Manila and other
urban areas, the Department of Health (DOH) asked Super Biology
for a license to produce and sell the AIDS medicine to the public at
a substantially lower price. Super Biology, citing the huge costs
and expenses incurred for research and development, refused.
Assuming you are asked your opinion as the legal consultant of the
DOH, discuss how you will resolve the matter. (4%)
VIII.
A.
Flora, a frequent traveller, found a purse concealed between the

cushions of a large sofa inside the VIP lounge in NAIA while she
was waiting for her flight to be called. Inside the purse was a very
valuable diamond-studded necklace. She decided not to turn over
the purse to the airport management, and instead to keep it. On her
return from her travels, she had a dependable jeweller appraise the
necklace, and the latter told her that the necklace was easily worth
at least PS,000,000.00 in the open market. To test the appraisal, she
pawned the necklace for P2,000,000.00. She then deposited the
entire amount in her checking account with Metro Bank. Promptly,
Metro Bank reported the transaction to the Anti-Money Laundering
Council (AMLC).
Given that her appropriation of the necklace was theft, may Flora be
successfully prosecuted for money laundering? Explain briefly your
answer. (4%)
B.
Prosperous Bank is a domestic bank with head office in Makati. It

handles the banking requirements of thousands of clients.
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MERCANTILE LAW 9
The AMLC initiated a discreet investigation of the financial

transactions of Lorenzo, a suspected drug trafficker based in Naga
City. The intelligence group of the AMLC, in coordination with the
counterpart group from the PDEA and the NBI, gathered ample
evidence establishing Lorenzo's unlawful drug activities. The AMLC
had probable cause that his deposits and investments in various
banks, including Prosperous Bank, were related to money
laundering.
Accordingly, the AMLC now transmits to Prosperous Bank a formal

demand to allow its agents to examine the banking transactions of
Lorenzo, but Prosperous Bank refuses the demand.
Is Prosperous Bank's refusal justified? Explain your answer. (4°/o)
IX.
A.
Alfred issued a check for P1 ,000.00 to Benjamin, his friend, as

payment for an electronic gadget. The check was drawn against
Alfred's account with Good Bank. Benjamin then indorsed the
check specially in favor of Cesar. However, Cesar misplaced the
check. Dexter, a dormmate of Cesar, found the check, altered its
amount to P91,000.00, and forged Cesar's indorsement by way of a
blank indorsement in favor of Felix, a known jeweler. Felix then
caused the deposit of the check in his account with Solar Bank. As
collecting bank, Solar Bank stamped "all previous indorsements
guaranteed" on the check. Seeing such stamp of the collecting
bank, Good Bank paid the amount of P91,000.00 on the check.
May Good Bank claim reimbursement from Alfred? Explain your

answer. (4°/o)
B.
In 2006, Donald, an American temporarily residing in Cebu City,

issued to Rhodora a check for $50,000.00 drawn against Wells
Fargo Bank with offices in San Francisco, California. Rhodora
negotiated the check and delivered it to Yaasmin, a Filipina socialite
who frequently travelled locally and internationally. Because of her
frequent travels, Yaasmin misplaced the check. It was only 11 years
later on, in 2017, when she found the check inside a diary kept in
her vault in her Hollywood, California house.
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MERCANTILE LAW 10
Discuss and explain the rights of Yaasmin on the check. (4°/o)
x.
Wisconsin Transportation Co., Inc. (WTC) owned and operated an
inter-island de luxe bus service plying the Manila-Batangas-Mindoro
route. Three friends, namely: Aurelio, Jerome and Florencio rode on
the same WTC bus from Manila bound for Mindoro. Aurelio
purchased a ticket for himself. Jerome, being a boyhood friend of
the bus driver, was allowed a free ride by agreeing to sit during the
trip on a stool placed in the aisle. Florencio, already penniless after
spending all of his money on beer the night before, just stole a ride
in the bus by hiding in the on-board toilet of the bus.
During the trip, the bus collided with another bus coming from the
opposite direction. The three friends all suffered serious physical
injuries.
What are WTC's liabilities, if any, in favor of Aurelio, Jerome and

Florencio? Explain your answer. (4°/o)
XI.
TRUE or FALSE - Explain briefly your answer.
(a) A conviction under the Trust Receipts Law shall bar a

prosecution for estafa under the Revised Penal Code. (2o/o)
(b) The term capital in relation to public utilities under Sec. 11, Art.
XII of the 1987 Constitution refers to the total outstanding capital
stock comprising both common and non-voting preferred shares.
(2%)
(c) Forgery is a real defense but may only be raised against a

holder not .in due course. (2%)
(d) News reports are not copyrightable. (2%)
(e) The law on life insurance prohibits double insurance. (2%)
XII.
Onassis Shipping, Inc. (Onassis) operated passenger vessels and

cargo trucks, and offered its services to the general public. In line
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MERCANTILE LAW 11
with its vision and mission to protect the environment, Go-Green

Asia (Go-Green), an NGO affiliated with Greenpeace, entered into a
contract with Onassis whereby Go-Green would operate with its
own crew the MN Dolphin, an ocean-going passenger vessel of
Onassis.
While on its way to Palawan carrying Go-Green's invited guests

who were international and local observers desirous of checking
certain environmental concerns in the area, the MN Dolphin
encountered high waves and strong winds caused by a typhoon in
the West Philippine Sea. The rough seas led to serious physical
injuries to some of the guests.
Discuss the liabilities of Onassis and Go-Green to the passengers

of the MN Dolphin. Explain briefly your answer. (3°/o)
-NOTHING FOLLOWS-
"}
. POLITICAL LAW
November 5, 2017 8:00 A.M. - 12:00 N.N.
INSTRUCTIONS
1. This Questionn aire contains nine (9) pages. Check and make sure
that your Questionn aire has the correct number of pages. You may
write on your Questionn aire as you answer the questions .
Bar Examination Notebook in the same order of the questions .
your answers only on the front of every page of your Notebook. If the
front pages are not sufficient, continue at the back of the first page
and so on. Start every number on a separate page, but an answer to
a sub-quest ion under the same number may be written continuou sly
on the same page and on the immediately succeedin g pages until the
answer is complete. Follow the numbering sequence of the
Questionn aire in your answers.
2. Your answers should demonstrate your ability to analyze the facts,

apply the pertinent laws and jurisprude nce, and arrive at sound and
logical conclusio ns. Answers must fully explain even if the questions
do not expressly require explanations. A "Yes" or "No" answer sans
explanatio n or discussio n will not be given full credit.

may be considere d as cheating and may disqualify you.
Good luck!
SUPREME COURT OF THE PHILIPPINES

an
2017 Bar Examinations .
PUBUC INFORMATION OF!'ICE
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POLITICAL LAW 2
I.
A priority thrust of the Administratio n is the change of the form of

government from unitary to federal. The change can be effected only
through constitutiona l amendment or revision.
(a) What are the methods of amending the Constitution? Explain

briefly each method. (3°/o)
(b) Cite at least three provisions of the Constitution that need to be

amended or revised to effect the change from unitary to federal, and
briefly explain why? (3%)
II.
A.
Under the doctrine of immunity from suit, the State cannot be sued
without its consent. How may the consent be given by the State?
8.
The doctrine of immunity from suit in favor of the State extends to

public officials in the performance of their official duties. May such
officials be sued nonetheless to prevent or to undo their oppressive
or illegal acts, or to compel them to act? Explain your answer. (3°/o)
c.
Do government- owned or -controlled corporations also enjoy the
immunity of the State from suit? Explain your answer. (3%)
Ill.
State A and State B, two sovereign states, enter into a 10-year mutual
defense treaty. After five years, State A finds that the more
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POLITICAL LAW 3
progressive State B did not go to the aid of State A when it was

threatened by its strong neighbor State C. State B reasoned that it
had to be prudent and deliberate in reacting to State C because of
their existing trade treaties.
(a) May State A now unilaterally withdraw from its mutual defense
treaty with State B? Explain your answer. (2.5%)
(b) What is the difference between the principles of pacta sunt

servanda and rebus sic stantibus in international law? (2.5%)
(c) Are the principles of pacta sunt servanda and rebus sic stantibus
relevant in the treaty relations between State A and State B? What
about in the treaty relations between State B and State C? Explain
your answer. (2.5%)
IV.
A.
What is the pardoning power of the President under Art. VIII, Sec. 19
of the Constitution?
Is the exercise of the power absolute? (4°.k)
B.
Distinguish pardon from amnesty. (4%)
v.
(a) What is the right of legation, and how is it undertaken between

states? Explain your answer. (2°.k)
(b) Under this right, may a country like Malaysia insist that the
Philippines establishes a consulate in Sabah to look after the welfare
of the Filipino migrants in the area? Explain your answer. (2o/o)
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POLITICAL LAW 4
VI.
A.
The President appoints the Vice President as his Administration's

Housing Czar, a position that requires the appointee to sit in the
Cabinet. Although the appointment of the members of the Cabinet
requires confirmation by the Commission on Appointment (CA), the
Office of the President does not submit the appointment to the CA.
May the Vice President validly sit in the Cabinet? (2.5°/o)
B.
The Executive Department has accumulated substantial savings

from its appropriations. Needing P3,000,000.00 for the conduct of a
plebiscite for the creation of a new city but has no funds appropriated
soon by the Congress for the purpose, the COMELEC requests the
President to transfer funds from the savings of the Executive
Department in order to avoid a delay in the holding of the plebiscite.
May the President validly exercise his power under the 1987
Constitution to transfer funds from the savings of the Executive
Department, and make a cross-border transfer of P3,000,000.00 to the
COMELEC by way of augmentation? Is your answer the same if the
transfer is treated as aid to the COMELEC? Explain your answer. (4%)
VII.
Give the limitations on the power of the Congress to enact the

General Appropriations Act? Explain your answer. (5%)
VIII.
A bank acquired a large tract of land as the highest bidder in the

foreclosure sale of the mortgaged assets of its borrower. It appears
that the land has been originally registered under the Torrens system
in 1922 pursuant to the provisions of the Philippine Bill of 1902, the
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POLITICAL LAW 5
organic act of the Philippine Islands as a colony of the USA. Sec. 21

of the Philippine Bill of 1902 provided that "all valuable mineral
deposits in public lands in the Philippine Islands, both surveyed and
unsurveye d, are hereby declared to be free and open to exploratio n,
occupatio n and purchase, and the land in which they are found to
occupatio n and purchase, by citizens of the United States, or of said
Islands." Sec. 27 of the law declared that a holder of the mineral claim
so located was entitled to all the minerals that lie within his claim,
but he could not mine outside the boundary lines of his claim.
The 1935 Constituti on expressly prohibited the alienation of natural

resources except agricultur al lands. Sec. 2, Art. XII of the 1987
Constituti on contains a similar prohibition , and proclaims that all
lands of the public domain, waters, minerals, coal, petroleum , and
other mineral oils, all forces of potential energy, fisheries, forests or
timber, wildlife, flora and fauna, and other natural resources are
owned by the State. This provision enunciate s the Regalian Doctrine.
May the Governme nt, on the basis of the Regalian Doctrine

enunciate d in the constitutio nal provisions , deny the bank its right
as owner to the mineral resources underneat h the surface of its
property as recognize d under the Philippine Bill of 1902? Explain
your answer. (5°/o)
IX.
A.
Ambassad or Robert of State Alpha committed a very serious crime
while he headed his foreign mission in the Philippine s. Is he subject
to arrest by Philippine authoritie s? Explain your answer. (3°/o)
B.
Extraditio n is the process pursuant to a treaty between two State
parties for the surrender by the requested State to the custody of the
requesting State of a fugitive criminal residing in the former.
However, extradition depends on the applicatio n of two principles -
the principle of specialty and the dual criminality principle. Explain
these principles . (4%)
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POLITICAL LAW 6
c.
The Presid ent signs an agreem ent with his counte rpart in anothe r
countr y involvi ng recipro city in the treatm ent of each countr y's
nationa ls residin g in the other's territor y. However, he does not
submit the agreem ent to the Senate for concur rence.
Sec. 21, Art. VII of the Consti tution provide s that no treaty or
interna tional agreem ent shall be valid and effectiv e withou t such
concur rence.
Is the agreem ent signed by the Presid ent effectiv e despite the lack
of Senate concur rence? Explain your answer. (4°.k)
x.
A.
Under the enrolle d bill doctrin e, the signing of a bill by both the
Speake r of the House of Repres entativ es and the Presid ent of the
Senate and the certific ation by the secreta ries of both House s of
Congre ss that the bill was passed on a certain date are conclu sive
on the bill's due enactm ent. Assum ing there is a conflic t between the
enrolle d bill and the legisla tive journa l, to the effect that the enrolle d
bill signed by the Senate Presid ent and eventu ally approv ed by the
Presid ent turned out to be differe nt from what the Senate actuall y
passed as reflecte d in the legisla tive journa l.
(a) May the Senate Presid ent disrega rd the enrolle d bill doctrin e and
consid er his signatu re as invalid and of no effect? (2.5%)
(b) May the Presid ent therea fter withdra w his signatu re? Explain
your answer. (2.5%)
B.
Sec. 26(2), Art. VI of the Consti tution provide s that no bill passed by
either House of Congre ss shall becom e a law unless it has passed
three reading s on separa te days and printed copies of it in its final
form have been distribu ted to the Membe rs of the House three days
before its passage.
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POLITICAL LAW 7
Is there an exception to the provision? Explain your answer. (3%)
XI.
Sec. 17, Art. VI of the Constituti on establishe s an Electoral Tribunal

for each of the Houses of Congress , and makes each Electoral
Tribunal "the sole judge of all contests relating to the election,
returns, and qualificati ons of their respective Members. " On the
other hand, Sec. 2(1), C (Commiss ion on Elections) , Art. IX of the
Constituti on grants to the COMELEC the power to enforce and
administe r all laws and regulation s "relative to the conduct of an
election, plebiscite, initiative, referendu m, and recall."
Consideri ng that there is no concurren ce of jurisdictio n between the

Electoral Tribunals and the COMELEC, state when the jurisdictio n of
the Electoral Tribunals begins, and the COMELEC's jurisdictio n
ends. Explain your answer. (4°/o)
XII.
The Congress establishe s by law Philippine Funds, Inc., a private

corporatio n, to receive foreign donations coming from abroad during
national and local calamities and disasters, and to enable the
unhamper ed and speedy disbursem ents of the donations through
the mere action of its Board of Directors. Thereby, delays in the
release of the donated funds occasione d by the stringent rules of
procurem ent would be avoided. Also, the releases would not come
under the jurisdictio n of the Commissi on on Audit (COA).
(a) Is the law establishi ng Philippine Funds, Inc. constitutio nal?

Explain your answer. (3o/o)
(b) Can the Congress pass the law that would exempt the foreign
grants from the jurisdictio n of the COA? Explain your answer. (3%)
XIII.
Command responsib ility pertains to the responsib ility of

command ers for crimes committed by subordina te members of the
armed forces or other persons subject to their control in internatio nal
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POLITICAL LAW 8
wars or domestic conflicts. The doctrine has now found application

in civil actions for human rights abuses, and in proceedings seeking
the privilege of the writ of amparo.
(a) What are the elements to be established in order to hold the

superior or commander liable under the doctrine of command
responsibility? (4%)
(b) May the doctrine of command responsibility apply to the

President for the abuses of the armed forces (AFP and PNP) given
his unique role as the commander-in-chie f of all the armed forces?
XIV.
To fulfill a campaign promise to the poor folk in a far-flung area in

Mindanao, the President requested his friend, Pastor Roy, to devote
his ministry to them. The President would pay Pastor Roy a monthly
stipend of PS0,000.00 from his discretionary fund, and would also
erect a modest house of worship in the locality in an area of the
latter's choice.
Does the President thereby violate any provisions of the

Constitution? Explain your answer. (3%)
xv.
A.
According to Sec. 3, Art. VIII of the Constitution, the Judiciary shall
enjoy fiscal autonomy. What does the term fiscal autonomy signify?
B.
May a complaint for disbarment against the Ombudsman prosper
during her incumbency? Explain your answer. (3%)
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POLITICAL LAW 9
c.
Sec. 3, Art. XI of the Constituti on states that "[n]o impeachm ent
proceedin gs shall be initiated against the same official more than
once within a period of one year."
What constitute s initiation of impeachm ent proceedin gs under the

provision? (3%)
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a
REMEDIAL LAW
November 26, 2017 8:00 A.M. -12:00 N.N.
INSTRUCTIONS
your answers only on the front. of every page of your Notebook. If

credit

Good luckl
1nnan
REMEDIAL LAW 2
I.
What trial court outside Metro Manila has exclusive original

jurisdiction over the following cases? Explain briefly your answers.
(a) An action filed on November 13, 2017 to recover the possession

of an apartment unit being occupied by the defendant by mere
tolerance of the plaintiff, after the former ignored the last demand to
vacate that was duly served upon and received by him on July 6,
2016. (2.5%)
(b) A complaint in which the principal relief sought is the

enforcement of a seller's contractual right to repurchase a lot with
an assessed value of ~15,000.00. (2.5o/o)
II.
Santa filed against Era in the RTC of Quezon City an action for
specific performance praying for the delivery of a parcel of land
subject of their contract of sale. Unknown to the parties, the case
was inadvertently raffled to an RTC designated as a special
commercial court. Later, the RTC rendered judgment adverse to
Era, who, upon realizing that the trial court was not a regular RTC,
approaches you and wants you to file a petition to have the
judgment annulled for lack of jurisdiction.
What advice would you give to Era? Explain your answer. (4%)
Ill.
Answer the following briefly:
(a) What elements should concur for circumstantial evidence to be

sufficient for conviction? (2%)
(b) When is bail a matter of judicial discretion? (2%)
(c) Give at least two instances when a peace officer or a private

person may make a valid warrantless arrest. (2°/o)
(d) What is a tender of excluded evidence? (2°/o)
....
REMEDIAL LAW 3
IV.
Give brief answers to the following:
(a) What is the doctrine of hierarchy of courts? (2o/o)
(b) What is the Harmless Error Rule in relation to appeals? (2°/o)
(c) When does a public prosecutor conduct an inquest instead of a

preliminary investigation? (2%)
v.
After working for 25 years in the Middle East, Evan returned to the
Philippines to retire in Manila, the place of his birth and childhood.
Ten years before his retirement, he bought for cash in his name a
house and lot in Malate, Manila. Six months after his return, he
learned that his house and lot were the subject of foreclosure
proceedings commenced by ABC Bank on the basis of a
promissory note and a deed of real estate mortgage he had
allegedly executed in favor of ABC Bank five years earlier.
Knowing that he was not in the country at the time the promissory
note and deed of mortgage were supposedly executed, Evan
forthwith initiated a complaint in the RTC of Manila praying that the
subject documents be declared null and void.
ABC Bank filed.a motion to dismiss Evan's complaint on the ground

of improper venue on the basis of a stipulation in both documents
designating Quezon City as the exclusive venue in the event of
litigation between the parties arising out of the loan and mortgage.
Should the motion to dismiss of ABC Bank be granted? .Explain

your answer. (5%) ·
VI.
Hanna, a resident of Manila, filed a complaint for the partition of a

large tract of land located in Oriental Mindoro. She impleaded her
two brothers John and Adrian as defendants but did not implead
Leica and Agatha, her two sisters who were permanent residents of
Australia.
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REMEDIAL LAW 4
Arguing that there could be no final determination of the case

without impleading all indispensable parties, John and Adrian
moved to dismiss the complaint.
Does the trial court have a reason to deny the motion? Explain your
answer. (4%)
VII.
Elise obtained a loan of P3 Million from Merchant Bank. Aside from

executing a promissory note in favor of Merchant Bank, she
executed a deed of real estate mortgage over her house and lot as
security for her obligation. The loan fell due but remained unpaid;
hence, Merchant Bank filed an action against Elise to foreclose the
real estate mortgage. A month after, and while the foreclosure suit
was pending, Merchant Bank also filed an action to recover the
principal sum of P3 Million against Elise based on the same
promissory note previously executed by the latter.
In opposing the motion of Elise to dismiss the second action on the

ground of splitting of a single cause of action, Merchant Bank
argued that the ground relied upon by Elise was devoid of any legal
basis considering that the two actions were based on separate
contracts, namely, the contract of loan evidenced by the
promissory note, and the deed of real estate mortgage.
Is there a splitting of a single cause of action? Explain your answer.

(4%)
VIII.
A.
Laura was the lessee of an apartment unit owned by Louie. When

the lease expired, Laura refused to vacate the property. Her refusal
prompted Louie to file an action for unlawful detainer against Laura
who failed to answer the complaint within the reglementary period.
Louie then filed a motion to declare Laura in default. Should the

motion be granted? Explain your answer. (3%)
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REMEDIAL LAW 5
B.
Agatha filed a complaint against Yana in the RTC in Makati City to

collect P350,000.00, an amount representing the unpaid balance on
the price of the car Yana had bought from Agatha. Realizing a
jurisdictional error in filing the complaint in the RTC, Agatha filed a
notice of dismissal before she was served with the answer of Yana.
The RTC issued an order confirming the dismissal.
Three months later, Agatha filed another complaint against Yana

based on the same cause of action this time in the MeTC of Makati
City. However, for reasons personal to her, Agatha decided to have
the complaint dismissed without prejudice by filing a notice of
dismissal prior to the service of the answer of Yana. Hence, the
case was dismissed by the MeTC.
A month later, Agatha refiled the complaint against Yana in the

same MeTC.
May Yana successfully invoke the Two-Dismissal Rule to bar

Agatha's third complaint? Explain your answer. (3%)
IX.
Abraham filed a complaint for damages in the amount of

P750,000.00 against Salvador in the RTC in Quezon City for the
latter's alleged breach of their contract of services. Salvador
promptly filed his answer, and included a counterclaim for
P250,000.00 arising from the allegedly baseless and malicious
claims of Abraham that compelled him to litigate and to engage the
services of counsel, and thus caused him to suffer mental anguish.
Noting that the amount of the counterclaim was below the exclusive
original jurisdiction of the RTC, Abraham filed a motion to dismiss
vis-8-vis the counterclaim on that ground.
Should the counterclaim of Salvador be dismissed? Explain your

answer. (4%)
x.
On the basis of an alleged promissory note executed by Harold in

favor of Ramon, the latter filed a complaint for P950,000.00 against
the former in the RTC of Davao City. In an unverified answer,
....
REMEDIAL LAW 6
Harold specifically denied the genuineness of the promissory note.

During the trial, Harold sought to offer the testimonies of the
following: (1) the testimony of an NBI handwriting expert to prove
the forgery of his signature; and (2) the testimony of a credible
witness to prove that if ever Harold had executed the note in favor
of Ramon, the same was not supported by a consideration.
May Ramon validly object to the proposed testimonies? Give a brief

explanation of your answer. (5o/o)
XI.
A.
Teddy filed against Buboy an action for rescission of a contract for

the sale of a commercial lot. After having been told by the wife of
Buboy that her husband was out of town and would not be back
until after a couple of days, the sheriff requested the wife to just
receive the summons in behalf of her husband. The wife acceded to
the request, received the summons and a copy of the complaint,
and signed for the same.
(a) Was there a valid service of summons upon Buboy? Explain

your answer briefly. (3°.4)
(b) If Buboy files a motion to dismiss the complaint based on the

twin grounds of lack of jurisdiction over his person and
prescription of the cause of action, may he be deemed to have
voluntarily submitted himself to the jurisdiction of the court?
Explain your answer briefly (3°.4).
B.
What is the mode of appeal applicable to the following cases, and

what issues may be raised before the reviewing court/tribunal?
(a) The decision or final order of the National Labor Relations

Commission. (1.5%)
(b) The judgment or final order of the RTC in the exercise of its
appellate jurisdiction. (1.5%)
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REMEDIAL LAW 7
XII.
A.
Judgment was rendered against defendant Jaypee in an action for

unlawful detainer. The judgment ordered Jaypee to vacate and to
pay attorney's fees in favor of Bart, the plaintiff.
To prevent the immediate execution of the judgment, would you

advise the posting of a supersedeas bond as counsel for Jaypee?
Explain your answer briefly? (2%).
8.
A temporary restraining order (TRO) was issued on September 20,

2017 by the RTC against defendant Jeff enjoining him from entering
the land of Regan, the plaintiff.
On October 9, 2017, upon application of Regan, the trial court,

allegedly in the interest of justice, extended the TRO for another 20
days based on the same ground for which the TRO was issued.
On October 15, 2017, Jeff entered the land subject of the TRO.
May Jeff be liable for contempt of court? Why? (4°/o)
XIII.
Police officers arrested Mr. Druggie in a buy-bust operation and

confiscated from him 10 sachets of shabu and several marked
genuine peso bills worth PS,000.00 used as the buy-bust money
during the buy-bust operation.
At the trial of Mr. Druggie for violation of R.A. No. 9165

(Comprehensive Dangerous Drug Act of 2002), the Prosecution
offered in evidence, among others, photocopies of the confiscated
marked genuine peso bills. The photocopies were offered to prove
that Mr. Druggie had engaged at the time of his arrest in the illegal
selling of dangerous drugs.
Invoking the Best Evidence Rule, Atty. Maya Bang, the defense
counsel, objected to the admissibility of the photocopies of the
confiscated marked genuine peso bills.
•
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REMEDIAL LAW 8
Should the trial judge sustain the objection of the defense counsel?
Briefly explain your answer (5%)
XIV.
Immediately before he died of gunshot wounds to his chest,

Venancio told the attending physician, In a very feeble voice, that it
was Arnulfo, his co-worker, who had shot him. Venancio added that
it was also Arnulfo who had shot Vicente, the man whose cadaver
was lying on the bed beside him.
In the prosecution of Arnulfo for the criminal killing of Venancio and

Vicente, are all the statements of Venancio admissible as dying
declarations? Explain your answer. (5%)
xv.
In an attempt to discredit and impeach a Prosecution witness in a

homicide case, the defense counsel called to the stand a person
who had been the boyhood friend and next-door neighbor of the
Prosecution witness for 30 years. One question that the defense
counsel asked of the impeaching witness was: "Can you tell this
Honorable Court about the general reputation of the prosecution
witness in your community for aggressiveness and violent
tendencies?"
Would you_, as the trial prosecutor, interpose your objection to the

question of the defense counsel? Explain your answer. (4%)
XVI.
Engr. Magna Nakaw, the District Engineer of the DPWH in the

Province of Walang Progreso, and Mr. Pork Chop, a private
contractor, were both charged in the Office of the Ombudsman for
violation of the Anti-Graft and Corrupt Practices Act (R.A. No. 3019)
under a conspiracy theory.
While the charges were undergoing investigation in the Office of the

Ombudsman, Engr. Magna Nakaw passed away. Mr. Pork Chop
immediately filed a motion to terminate the investigation and to
dismiss the charges against him, arguing that because he was
charged in conspiracy with the deceased, there was no longer a
. \
J)
REMEDIAL LAW 9
conspiracy to speak of and, consequently, any legal ground to hold

him for trial had been extinguished.
Rule on the motion to terminate filed by Mr. Pork Chop, with brief
reasons. (5%).
XVII.
Juancho entered a plea of guilty when he was arraigned under an

information for homicide. To determine the penalty to be imposed,
the trial court allowed Juancho to present evidence proving any
mitigating circumstance in his favor. Juancho was able to establish
complete self-defense.
Convinced by the evidence adduced by Juancho, the trial court

rendered a verdict of acquittal.
May the Prosecution assail the acquittal without infringing the

constitutional guarantee against double jeopardy in favor of
Juancho? Explain your answer. (5%)
XVIII.
Tomas was criminally charged with serious physical injuries

allegedly committed against Darvin. During the pendency of the
criminal case, Darvin filed a separate civil action for damages
based on the injuries he had sustained.
Tomas filed a motion to dismiss the separate civil action on the

ground of litis pendentia, pointing out that when the criminal action
was filed against him, the civil action to recover the civil liability
from the offense charged was also deemed instituted. He insisted
that the basis of the separate civil action was the very same act that
gave rise to the criminal action.
Rule on Tomas' motion to dismiss, with brief reasons. (5°A.)
XIX.
Boy Maton, a neighborhood tough guy, was arrested by a police

officer on suspicion that he was keeping prohibited drugs in his
clutch bag. When Boy Maton was searched immediately after the
arrest, the officer found and recovered 10 sachets of shabu neatly
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REMEDIAL LAW 10
tucked in the inner linings of the clutch bag. At the time of his
arrest, Boy Maton was watching a basketball game being played in
the town plaza, and he was cheering for his favorite team. He was
subsequently charged with illegal possession of dangerous drugs,
and he entered a plea of not guilty when he was arraigned.
During the trial, Boy Maton moved for the dismissal of the
information on the ground that the facts revealed that he had been
illegally arrested. He further moved for the suppression of the
evidence confiscated from him as being the consequence of the
illegal arrest, hence, the fruit of the poisonous tree.
The trial court, in denying the motions of Boy Maton, explained that
at the time the motions were filed Boy Maton had already waived
the right to raise the issue of the legality of the arrest. The trial
court observed that, pursuant to the Rules of Court, Boy Maton, as
the accused, should have assailed the validity of the arrest before
entering his plea to the information. Hence, the trial court opined
that any adverse consequence of the alleged illegal arrest had also
been equally waived.
Comment on the ruling of the trial court. (5%)
-NOTHING FOLLOWS-
~
TAXATION
November 12, 2017 2:00 P.M. - 6:00 P.M.
INSTRUCTIONS

credit.

Good luck!
YQM_~~~_J;JRINGJ·iOME THE QUl;_STJONt.j_~lB_E.

TAXATION 2
I.
SMZ, Inc. is a VAT-registered enterprise engaged Jn the general

construction business. HP International contracts the services of
SMZ, Inc. to construct HP lntemational's factory building located in
the Laguna Techno Park, a special economic zone. HP International
is registered with the Philippine Economic Zone Authority (PEZA)
as an ecozone export enterprise, and, as such, enjoys income tax
holiday pursuant to the Special Economic Zone Act of 1995.
SMZ, Inc. files an application with the Bureau of Internal Revenue

(BIR) for the VAT zero-rating of its sale of services to HP
International. However, the BIR denies SMZ, lnc.'s application on
the ground that HP International already enjoys income tax holiday.
Is the BIR correct in denying SMZ, lnc.'s application? Explain your

answer. (6%)
II.
Wreck Corporation is a domestic corporation engaged in the

business of importing, refining and selling petroleum products.
During the period from September 1, 2014 to December 31, 2014,
Wreck Corporation imported 225 million liters of Jet A-1 aviation
fuel and paid the excise taxes thereon. Seventy-five percent (75°.IO)
of the total volume of aviation fuel imported were actually sold to
international carriers of Philippine and foreign registries for their
use or consumption outside of the Philippines in ttle period from
November 1, 2014 to December 31, 2014. Wreck Corporation did not
pass on to the international carriers the excise taxes it paid on the
importation of petroleum products.
On June 25, 2015, Wreck Corporation filed an administrative

claim for refund or issuance of tax credit certificate amounting to
the excise taxes it had paid on the importation of 225 million liters
of Jet A-1 aviation fuel.
If you were the Commissioner of Internal Revenue, will you

grant Wreck Corporation's administrative claim for refund or
issuance of tax credit certificate? Explain your answer. (6%)
_, •
TAXATION 3
Ill.
Vanderful, lnc.'s income tax return for taxable year 2015 showed an
overpayment due to excess creditable withholding taxes in the
amount of P750,000.00. The company opted to carry over the
excess income tax credits as tax credit against its quarterly income
tax liabilities for the next succeeding years. For taxable year 2016,
the company's income tax return showed an overpayment due to
excess creditable withholding taxes in the amount of P1,100,000.00,
which included the carry-over from year 2015 in the amount of
P750,000.00 because its operations resulted in a net loss; hence,
there was no application for any tax liability. This time, the company
opted and marked the box "To be refunded' in respect of the total
amount of P1,100,000.00.
Vanderful, Inc. now files in the BIR a claim for refund of unutilized
overpayments of P1,100,00.00. Is the claim meritorious? (4%)
IV.
On the basis of a warrant of seizure and detention issued by the

Collector of Customs for the purpose of enforcing the Tariff and
Customs Code, assorted brands of liquor and cigarettes said to
have been illegally imported into the Philippines were seized from a
store operating in a Freeport zone. The store owner moved for the
quashal of the warrant on the ground that the Collector of Customs
had no jurisdiction to enforce it within the Freeport zQne.
Should the motion to quash be granted? (3%)
v.
On March 30, 2016, XL Co. filed an administrative claim for refund of

unutilized input VAT for taxable year 2014, together with supporting
documents. XL Co. claimed that its sale of generated power and
delivery of electric capacity and energy was VAT zero-rated. Due to
the inaction of the Commissioner of Internal Revenue (CIR), XL Co.
filed with the Court of Tax Appeals (CTA) the following judicial
claims for refund: ·
Period Covered Date Filed

1st Quarter of 2014 March 31, 2016 (
/;'
TAXATION 4
·-··
2"d Quarter of 2014 June 30, 2016
3rd and 4th Quarter of August 12, 2016
2014
Is XL Co.'s claim for VAT refund timely filed? Explain your

answer. (5%)
VI.
Heeding the pronouncement of the President that the worsening

traffic condition in the metropolis was a sign of economic progress,
the Congress enacted Republic Act No. 10701 (RA 10701), also
known as An Act Imposing a Transport Tax on the Purchase of
Private Vehicles.
Under RA 10701, buyers of private vehicles are required to pay a

transport tax equivalent to 5°/o of the total purchase price per
vehicle purchased. RA 10701 provides that the Land Transportation
Office (L TO) shall not accept for registration any new vehicles
without proof of payment of the 5% transport tax. RA 10701 further
provides that existing owners of private vehicles shall be required
to pay a tax equivalent to 5% of the current fair market value of
every vehicle registered with the LTO. However, RA 10701 exempts
owners of public utility vehicles and the Government from the
coverage of the 5% transport tax.
A group of private vehicle owners sue on the ground that the law is
unconstitutional for contravening the Equal Protection Clause of
the Constitution.
Rule on the constitutionality and validity of RA 10701. (5%)
VII.
Calvin Dela Pisa was a Permits and Licensing Officer (rank-and-file)

of Sta. Portia Realty Corporation (SPRC). He invited the Regional
Director of the Housing and Land Use Regulatory Board (HLURB) to
lunch at the Sulo Hotel in Quezon City to discuss the approval of
SPRC's application for a development permit in connection with its
subdivision development project in Pasig City. At breakfast the
following day, Calvin met a pro$pective client interested to enter
into a joint venture with SPRC for the construction of a residential
condominium unit in Cainta, Rizal.
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SJ
TAXATION 5
Calvin incurred expenses for the lunch and breakfast meetings he

had with the Regional Director of HLURB and the prospective client,
respectively. The expenses were duly supported by official receipts
issued in his name. At month's end, he requested the
reimbursement of his expenses, and SPRC granted his request.
(a) Can SPRC claim an allowable deduction for the expenses

incurred by Calvin? Explain your answer. (2.5%)
(b) Is the reimbursement received by Calvin from SPRC subject to

tax? Explain your answer. (2.5%)
VIII.
On April 30, 2015, Daryl resigned as the production manager of

52nd Avenue, a television studio owned by SSS Entertainment
Corporation. 52nd Avenue issued to her a Certificate of Withholding
Tax on Compensation (BIR Form No. 2316), which showed that the
tax withheld from her compensation was equal to her income tax
due for the period from January 2015 to April 30, 2015.
A month after her resignation, Daryl put up her own studio and
started producing short films. She was able to earn a meager
income from her short films but did not keep record of her
production expenses.
Is Daryl qualified for substituted filing for taxable year 2015?

IX.
Upon his retirement, Alfredo transferred his savings derived from

his salary as a marketing assistant to a time deposit with AAB
Bank. The bank regularly deducted 20% final withholding tax on the
interest income from the time deposit.
Alfredo contends that the 20% final tax on the interest income
constituted double taxation because his salary had been already
subjected to withholding tax.
Is Alfredo's contention correct? Explain your answer. (3%)
~
TAXATION 6
x.
On January 27, 2017, Ramon, the comptroller of Vantage Point, Inc.,

executed a document entitled Waiver of the Statute of Limitations in
connection with the BIR's investigation of the tax liabilities of the
company for the year 2012. However, the Board of Directors of
Vantage Point, Inc. did not adopt a board resolution authorizing
Ramon to execute the waiver.
On October 14, 2017, Vantage Point, Inc. received a preliminary

assessment notice from the BIR indicating its deficiency
withholding taxes for the year 2012. Vantage Point, Inc. filed its
protest. On October 30, 2017, the BIR issued a formal letter of
demand and final assessment notice. Vantage Point, Inc. again filed
a protest. The Commissioner of Internal Revenue denied the
protests and directed the collection of the assessed deficiency
taxes.
Accordingly, Vantage Point, Inc. filed a petition for review in the

CTA to seek the cancellation and withdrawal of the assessment on
the ground of prescription.
(a) What constitutes a valid waiver of the statute of limitations for

the assessment and collection of taxes? Explain your answer. (3o/o)
(b) Has the right of the Government to assess and collect deficiency
taxes from Vantage Point, Inc. for the year 2012 prescribed? Explain
your answer. (3%)
XI.
The Board of Directors of Sumo Corporation, a company primarily

engaged in the business of marketing and distributing pest control
products, approved the partial cessation of its commercial
operations, resulting in the separation of 32 regular employees.
Only half of the affected employees were notified of the board
resolution.
Rule on the taxability of the separation pay and indemnity that will
be received by the affected employees as the result of their
separation from service. Explain your answer. (3%)
'
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TAXATION 7
XII.
On September 17, 2015, Data Realty, Inc., a real-estate corporation

duly organized and existing under Philippine law, sold to Jenny
Vera a condominium unit at Freedom Residences in Malabon City
with an area of 32.31 square meters for a contract price of
P4,213,000.00. The condominium unit had a zonal value amounting
to P.2,877,000.00 and fair market value amounting to Pi550,000.00.
(a) Is the transaction subject to value-added tax and documentary

stamp tax? Explain your answer. (3%)
(b) Would your answer be the same if the property was sold by a
bank in a foreclosure sale? Explain your answer. (3°k)
XIII.
BATAS Law is a general professional partnership operating in the

City of Valenzuela. It regularly pays value-added tax on its services.
All its lawyers have individually paid the required professional tax
for the year 2017. However, as a condition for the renewal of its
business permit for the year 2017, the City Treasurer of Valenzuela
assessed BATAS Law for the payment of percentage business tax
on its gross receipts for the year 2016 in accordance with the
Revenue Tax Code of Valenzuela.
Is BATAS Law liable to pay the assessed percentage business tax?

XIV.
Globesmart Services, Inc. received a final assessment notice with

formal letter of demand from the BIR for deficiency income tax,
value-added tax and withholding tax for the taxable year 2016
amounting to P48 million. Globesmart Services, Inc. filed a protest
against the assessment, but the Commissioner of Internal Revenue
denied the protest. Hence, Globesmart Services, Inc. filed a petition
for review in the CTA with an urgent motion to suspend the
collection of tax.
After hearing, the CTA Division issued a resolution granting the

motion to suspend but required Globesmart Services, Inc. to post a
surety bond equivalent to the deficiency assessment within 15 days
'
JI,
TAXATION 8
from notice of the resolution. Globesmart Services, Inc. moved for

the partial reconsideration of the resolution and for the reduction of
the bond to an amount it could obtain. The CTA Division issued
another resolution reducing the amount of the surety bond to Jl24
million. The latter amount was still more than the net worth of
Globesmart Services, Inc. as reported in its audited financial
statements.
(a) May the collection of taxes be suspended? Explain your answer.

(3%)
(b) Is the CTA Division justified in requiring Globesmart Services,

Inc. to post a surety bond as a cond~tion for the suspension of the
deficiency tax collection? Explain your answer. (3%)
xv.
Casimira died on June 19, 2017 after three weeks of confinement

due to an unsuccessful liver transplant. For her confinement, she
had incurred substantial medical expenses that she financed
through personal loans secured by mortgages on her real
properties. Her heirs are still in the process of making an inventory
of her assets that can be used to pay the estate taxes, if any, which
are due on December 19, 2017.
(a) Are the medical expenses, personal loans and mortgages

incurred by Casimira deductible from her gross estate? Explain
your answer.(5%)
(b) May the heirs of Casimira file the estate tax return and pay the
corresponding estate tax beyond December 19, 2017 without
incurring interest and surcharge? Explain your answer.(3%)
XVI.
The BIR assessed the Babuyan Water District (BWD) with deficiency
income taxes amounting to P8.5 million, inclusive of interest and
surcharge. The BWD disputed the assessment, and argued that it
was a wholly-owned government entity performing essential
government functions. However, the BIR denied the protest.
The BWD filed a petition for arbitration in the Office of the Secretary
of Justice pursuant to Sections 66 to 71, Chapter 14, Book IV of the
Administrative Code of 1987 to assail the denial of its protest, and
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TAXATION 9
to seek the proper interpretation of Section 32(8)(7)(b) of the Tax

Code that excluded from gross income the income derived by the
Government or its political subdivisions. The Secretary of Justice
rendered a decision declaring the BWD exempt from the payment of
income tax.
The Commissioner of Internal Revenue appealed to the CTA on the

sole ground that the Secretary of Justice had no jurisdiction to
review the assessment of the BIR.
Is the appeal meritorious? Explain your answer. (4%)
XVII.
San Juan University is a non-stock, non-profit educational

institution. It owns a piece of land in Caloocan City on which its
three 2-storey school buildings stood. Two of the buildings are
devoted to classrooms, laboratories, a canteen, a bookstore and
administrative offices. The third building is reserved as dormitory
for student athletes who are granted scholarships for a given
academic year.
In 2017, San Juan University earned income from tuition fees and
from leasing a portion of its premises to various concessionaires of
food, books, and school supplies.
(a) Can the City Treasurer of Caloocan City collect real property
taxes on the land and building of San Juan University? Explain your
answer. (5°/o)
(b) Is the income earned by San Juan University for the year 2017
subject to income tax? Explain your answer. (5%)
XVIII.
(a) Differentiate outright smuggling from technical smuggling. (3%)
(b)Distinguish compromise from abatement of taxes. (3%)
"
,,4
TAXATION 10
XIX.
CMI School, Inc., a non-stock, non-profit corporation, donated its

three parcels of idle land situated in the Municipality of Cuyapo,
Nueva Ecija to SLC University, another non-stock, non-profit
corporation, in recognition of the latter's contribution to and
participation in the spiritual and educational development of the
former.
(a) Is CMI School, Inc. liable for the payment of donor's tax? Explain
your answer. (2.5%)
(b) If SLC University later sells the three parcels of idle land to
Puregold Supermarket, Inc., a stock corporation, will SLC University
be liable for capital gains tax? Explain your answer. (3%)
(c) If SLC University donates the three parcels of idle land in favor
of the Municipality of Cuyapo, Nueva Ecija, will SLC University be
liable for donor's tax? Explain your answer. (2.5%)
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2017 Bar Questionnaires

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2017 BAR EXAMINATIONS

November 12, 2017 8:00 A.M. -12:00 N.N.

2. Your answers should demonstrate your ability to analyze the

3. Marking of your Notebook with your name or other identifying

YOU CAN BRING HOME THE QUESTIONNAIRE.

State whether the following marital unions are valid, void, or

(b) Given that, according to Section 48(b) of Commonwealth Act

as basis for judicial confirmation of imperfect title must be from

Josef owns a piece of land in Pampanga. The National Housing

When Josef sought the release of the amount deposited, NHA

Who owns the interest earned? (3°/o)

(a) Distinguish antichresis from usufruct? (3%)

(b) Distinguish commodatum from mutuum. (3°/o)

Jacob has owned a farm land in Ramos, Tarlac. In 2012, Liz

Jacob comes to enlist your legal assistance to bring an action

What remedies are available to Jacob to recover possession of his

May Dylan be legally required to afford to Tyler a right of way

Alice agreed to sell a parcel of land with an area of 500 square

I, Bernadette, agree to buy the lot owned by Alice covered by TCT

Upon signing of agreement P100,000.00

Title to the property shall be transferred upon full payment of

After making the initial payment of P100,000.00 on October 15,

In December 2016, Bernadette offered to pay her balance but Alice

Bernadette sued Alice and Chona for specific performance,

(b)Did Alice engage in double sale of the property? Explain your

Pedro had worked for 15 years in Saudi Arabia when he finally

Is the sale valid, void or voidable? Explain your answer. (3°/o)

Briefly explain whether the following contracts are valid,

(b) A contract of lease of the Philippine Sea entered by and between

(c) A barter of toys executed by 12-year old Clarence and 10-year

(e) Jenny's sale of her car to Celestine in order to evade attachment

Krystal owns a parcel of land covered by TCT No. 12345 in Angeles

Wanting her property back, Krystal, learning of the transfer of the

Will Krystal's suit for annulment of sale and reconveyance prosper?

TRUE or FALSE - Explain your answers.

(a) All rights are considered as property. (2%)

(d) Possession of a movable property is lost when the location of

(e) Continuous non-apparent easements can be acquired either

Kevin signed a loan agreement with ABC Bank. To secure payment,

Can ABC Bank proceed directly against Rosella upon Kevin's

The parents of the fatality sued Jovencio for damages based on

Jovencio denied being a common carrier. He insisted that he had

(b) In accordance with your answer to the preceding question, state

November 19, 2017 2:00 P.M. - 6:00 P.M

2. Your answers should demonstrate your ability to analyze the

3. Marking of your Notebook with your name or other identifying

YOU CAN BRING HOME THE QUESTIONNAIRE .

Tonito, an 8-year-old boy, was watching a free concert at the Luneta

Tony was charged with child abuse in violation of Sec. 10(a), in

(a) Distinguish crimes ma/a in se from crimes ma/a prohibita. (3%)

Sixteen year old Aliswan prodded Amethyst, his girlfriend, to

Outside the house, the now-clothed Aliswan spotted Allesso,

pursued Amethyst, Aliswan fatally stabbed Allesso. Aliswan

(a) A criminal complaint for attempted rape with homicide was

(c) After receiving medical attendance for 10 days, Alisto consulted

(d) Answering the criminal complaint filed by Alisto, Amante

Overjoyed by the award to his firm of a multi-billion government

implemented. Governor Datu received his share through his wife,

Previously, upon facilitation by Bokal Diva, Mr. Gangnam concluded

In both instances, Bokal Diva had her monetary gifts deposited in

(a) May each of the above-named individuals be held liable for

(b) Define wheel conspiracy and chain conspiracy. Is either or both

Hence, Mr. Gulang was criminally charged in the Office of the