Page 

1 of 31 
 
COMPILED BY: PATRICK
AUTHOR OF LAZY NOTE
MAKER OF CENTURY EGG
WITH THE SUPPORT OF BELOVED FRIENDS FROM WORLD WAR ACCOUNTANT’S

THIS CENTURY EGG IS DEDICATED TO MY BESTFRIEND TO CARL VINCENT N. TALAROK WHO

FOUGHT FOR THIS BATTLE FOR THE 8TH TIME BUT NEVER GIVEN THE CHANCE TO PROVED
HIS WORTH.REST IN PEACE CARL, YOUR WISH IS GRANTED.
I HOPE YOU ARE HAPPY NOW. I LOVE YOU LOKO KA DI BIRO ANG WISH MO PERO NAKAYA
KO AT TINAPOS KO HANGGANG SA HULI, THIS TIME HINDI AKO NAG-IISA.

ACTUAL RFBT(LAW) QUESTIONNAIRES OCTOBER 2021 TO DECEMBER 2021:

1. Which of the following is not true?

a. In reciprocal obligations, neither party incurs in delay if the other does
not comply or is not ready to comply in a proper manner with what is incumbent
upon him. From the moment one of the parties fulfills his obligation, delay by
the other begins.
b. Those who in the performance of their obligations are guilty of fraud,
negligence, or delay, and those who in any manner contravene the tenor thereof,
are liable for damages.
c. Responsibility arising from fraud is demandable in all obligations. Any
waiver of an action for future fraud is valid.
d. Responsibility arising from negligence in the performance of every kind of
obligation is also demandable, but such liability may be regulated by the
courts, according to the circumstances.

2. Evaluate the following statements:

I. The receipt of the principal by the creditor without reservation with
respect to the interest, shall give rise to the presumption that said interest
has been paid.
II. The receipt of a later installment of a debt without reservation as to
prior installments, shall raise the presumption that such installments have
been paid.
Which of the foregoing statements is/are false?
a. I only
b. II only
c. Both I and II
d. Neither I nor II

3. Covida is obliged to give a specific car to Quarantina if she passes the CPA
Licensure Exams on or before December 31, 2022 is -
a. An obligation with a period
b. An obligation with a suspensive condition
c. An obligation with a resolutory condition
d. A pure obligation

4. This is the currency which the obligor may compel the obligee to accept in
payment of his obligation.
a. Money
b. Cash
c. Legal tender
d. Debt instrument
Page 2 of 31 
 

5. This is a sustained increase in the general price level of goods and

services in an economy over a period of time.
a. Inflation
b. Hyperinflation
c. Extraordinary inflation
d. Price hike

6. When is the effect of extraordinary inflation or deflation be applied?

a. When the inflation rate for the last three years exceeds 100%
b. When the general price index of primary commodities exceeds 100%
c. When the global inflation rate exceeds 100%
d. When there is an official declaration by competent authorities

7. Which of the following is not a legal tender in the Philippines?

a. One thousand pesos denominated in twenty-peso bills
b. Five hundred pesos denominated in one-peso coins
c. Two hundred pesos denominated in 25-centavo coins
d. One hundred pesos denominated in 1-centavo coins

8. Which of the following is not correct?

a. A debt shall not be understood to have been paid unless the thing or service
in which the obligation consists has been completely delivered or rendered, as
the case may be.
b. If the obligation has been substantially performed in good faith, the
obligor may recover as though there had been a strict and complete fulfillment,
less damages suffered by the obligee.
c. When the obligee accepts the performance, knowing its incompleteness or
irregularity, and without expressing any protest or objection, the obligation
is deemed fully complied with.
d. The creditor is bound to accept payment or performance by a third person who
has no interest in the fulfillment of the obligation.

9. Which of the following is not a type of damages?

a. Compensatory
b. Temporary
c. Moderate
d. Corrective

10. When the government, upon the failure of any person to comply with health
or safety regulations concerning property, undertakes to do the necessary work,
even over his objection, he shall be liable to pay the expenses. This
liability or obligation arises from what source?
a. Contract
b. Quasi-contract
c. Acts punishable by law
d. Quasi-delict

11. Which of the following is incorrect?

a. Payment made to the creditor by the debtor after the latter has been
judicially ordered to retain the debt shall not be valid.
Page 3 of 31 
 
b. The debtor of a thing cannot compel the creditor to receive a different one,
although the latter may be of the same value as, or more valuable than that
which is due.
c. Unless it is otherwise stipulated, the extrajudicial expenses required by
the payment shall be for the account of the creditor.
d. Unless there is an express stipulation to that effect, the debtor cannot be
compelled to make partial payments.

12. These are imposed, by way of example or correction for the public good.
a. Moral
b. Temperate
c. Liquidated
d. Exemplary

13. These are damages agreed upon by the parties to a contract, to be paid in
case of breach.
a. Nominal
b. Moral
c. Liquidated
d. Moderate

14. Five-peso coins are legal tender up to what amount?

a. Php1,000
b. Php500
c. Php100
d. Any amount

15. An educational institution (i.e. a school) is obliged to provide a secure

environment and an atmosphere conducive to learning. This obligation arise from
a. Contract
b. Quasi-contract
c. Quasi-delict
d. Law

16. This is the offer made by the obligor to extinguish his obligation to the
obligee.
a. Dacion en pago
b. Application of payment
c. Tender of payment
d. Legal tender

17. Extinguishment of obligation happened through passage of time.

a. Novation
b. Payment
c. Remission
d. Prescription

18. Statement I: A person criminally liable is also civilly liable.

Statement II: Obligations arising from contracts have the force of law between
the contracting parties.
a. True; True
Page 4 of 31 
 
b. True; False
c. False; True
d. False; False

19. Statement I: A natural obligation can be enforced in a court of law

Statement II: A waiver for future fraud is valid.
a. True; True
b. True; False
c. False; True
d. False; False

20. Statement I: Indemnification for damages shall comprehend not only the
value of the loss suffered, but also that of the profits which the obligee
failed to obtain.
Statement II: The party suffering loss or injury must exercise the diligence of
a good father of a family to minimize the damages resulting from the act or
omission in question.
a. True; True
b. True; False
c. False; True
d. False; False

21. WheN a corporation is dissolved, can it apply for a new certificatre or a

secondary franchise?
a. Yes
b. No
c. Maybe
d. CENTURY EGG

22. An indorsement that constitutes the indorser a mere assignor of the title
to the instrument; it is usually made by adding to the indorser's signature the
words "without recourse ".
Blank indorsement
Restrictive indorsement
Qualified indorsement
Conditional indorsement

23. A bill of exchange drawn on a bank and payable on demand is a

Check
Bill of lading
Domestic bill
Treasury bill
24. Protest is required in the case of a
Foreign promissory note
Inland promissory note
Inland bill of exchange
Foreign bill of exchange

25. It exists on those cases in which a person, without negligence, has signed
an instrument which was, in fact, a negotiable instrument, but was deceived as
to the character of the instrument and without knowledge of it.
Cognovit actionem
Relict verificatione
Page 5 of 31 
 
Fraud in factum or in esse contractus
Ante-dating

26. Are rebroadcasting and retransmission protected intellectual property

rights?
a. No. Since rebroadcasting and retransmission are forms of copyright
infringementated copyrights.

b. Yes. Since Rebroadcasting and retransmissions are allowed under the must
carry rule.ght whereas retransmissions are not protected copyrights due to the
must-carry rule.

c. Rebroadcasting is not a protected intellectual property right due to the

must-carry rule whereas retransmissions are protected copyrights.

d. Rebroadcasting is a protected intellectual property right whereas

retransmissions are not protected copyrights due to the must-carry rule.

27. Which regulatory authorities are primarily responsible for overseeing

banks?
a. BSP DITO BA DIBA SI BSP NAMAN TALAGA KASI CENTRAL BANK SIYA DIBA?
b. PDIC – ITO KASI SAGOT NUNG TROPA KO KAYA EWAN
c. SEC
d. BIR
The BSP, through its Monetary Board, is primarily responsible for overseeing
banks. The Philippine Deposit Insurance Corporation (PDIC) can also conduct
examination of banks, with the prior approval of the Monetary Board, provided
that no examination can be conducted by the PDIC within 12 months of the
previous examination date.

28. JJLM bought a business class ticket from PAUY Airlines. As she checked in,
the manager downgraded her to economy on the ground that a Congressman had to
be accommodated in the business class. JJLM suffered discomfort and
embarrassment of the downgrade.JJLM sued the airlines for quasi-delict but PAUY
Airlines countered that, since her travel was governed by a contract between
them, no quasi-delict could arise. Is the airline correct?
A. No, the breach of contract may in fact be tortious as when it is tainted as
in this case with arbitrariness, gross bad faith and malice
B. No, denying JJLM the comfort and amenities of the business class as provided
in the ticket is a tortious act
C. Yes, since the facts show a breach of contract, not a quasi-delict
D. Yes, since quasi-delict presupposes the absence of a pre-existing
contractual relation between the parties

. What is the government instrumentality created in 1963 by virtue of

Republic Act 3591 to insure deposits of all banks which are entitled to the
benefits of insurance and considered as an attached agency of the Department of
Finance?

Basis: The Philippine Deposit Insurance Corporation (PDIC) is a government

instrumentality created in June 22, 1963 by Republic Act 3591, as amended, to
insure the deposits of all banks. PDIC exists to protect depositors by
providing deposit insurance coverage for the depositing public and help promote
financial stability.
Page 6 of 31 
 

C. Philippine Deposit Insurance Corporation (PDIC)

A. Development Bank of the Philippines (DBP)
D. Bangko Sentral ng Pilipinas (BSP)
B. Landbank of the Philippines (LBP)

29. THE COMPANY OF CENTURY EGG WAS CURRENTLY ON A LEGAL PROCEEDING, WHEREIN AN
AUDITOR CONDUCTED A PROCECUTION TO THE COMPANY FOR FRAUD, EMBEZZLEMENT AND
OTHER FINANCIAL CRIMES. THE AUDITOR WAS ALSO CALLED TO SERVE AS AN EXPERT
WITNESS DURING THE TRIAL PROCEEDING. THE AUDITOR CONDUCTED AN AUDIT
INVESTIGATION ON CENTURY EGG COMPANY, WHAT TYPE OF AUDIT SHOULD BE EXECUTED?
A. TAX AUDIT
B. GOVERNMENT AUDIT
C. FORENSIC AUDIT
D. COMPLIANCE AUDIT
30.

31.

32. ITO YUNG

LEGIT NA
NA MAY
AUDIT NA
MALILIGAW
SA TANONG

33.

34.
Page 7 of 31 
 

35

#36-37

38.

39.

40.
NO PAR
VALUE
:MINIMUM
PRICE IS 5
PESOS

41. Which of the following statements does NOT characterize a NO-par value
share?
A. It always has an issued value.
B. It may be issued together with par value shares.
C. It has not stated value appearing on the certificate of stock.
D. It may be issued even if the subscription is not yet fully paid.
Page 8 of 31  PAR VALUE
:MINIMUM
  PRICE IS 1
CENTAVO

41. Which of the following statements does NOT characterize a par value share?
A. It always has an issued value.
B. It may be issued together with par value shares.
C. It has not stated value appearing on the certificate of stock.
D. It may be issued even if the subscription is not yet fully paid.

42. M made a promissory note payable to P’s order. X stole the note and forged
P’s signature as indorser to A. A indorsed the note to B as follows: "Pay to B
sans recourse, (Sgd. )A”.

Who among the parties shall be liable to B?

a. X, M and P only
b. X and A only
c. X and M only
d. X only

43. The debtor shall lose every right to make use of the period, except
a. When after the obligation has been contracted, he becomes insolvent, unless
he gives a guaranty or security for the debt
b. When he does not furnish to the creditor the guaranties or securities which
he has promised
c. When through fortuitous events or by his own acts the guaranties or
securities have been impaired, unless he immediately gives new ones equally
satisfactory
d. When the debtor violates any undertaking in consideration of which the
creditor agreed to the period

44. DEEP-FREEZE Medical Products installed refrigeration units in its Makati

warehouse to store its vaccines. The City of Makati wants to assess DEEP-FREEZE
for real property tax on the land, warehouse, and the refrigeration units.
A. DEEP-FREEZE is not taxable.
B. DEEP-FREEZE is taxable on the land and warehouse only
C. DEEP-FREEZE is taxable on land and refrigeration units only.
D. DEEP-FREEZE is taxable on land, warehouse, and refrigeration units.
E. None of the above.

45.  Which of the following statements is the best description of a 'condition

subsequent'?
a) A term in a contract, the consequences of breach of which cannot be
determined until after the breach has occurred and the seriousness of the
effects of the breach can be ascertained.
b) A term in a contract which provides that the contract will terminate on the
happening of a particular event.
c) A term which must be satisfied before a contract can come into existence.
Page 9 of 31 
 
d) A term in a contract not essential to the main purpose of the contract, non-
performance of which will not entitle the plaintiff to rescind the contract.

46. True and false questions

An unanticipated event outside the control of the contracting parties is known
as a supervening event.
[True]

47. What is the government instrumentality created in 1963 by virtue of

Republic Act 3591 to insure deposits of all banks which are entitled to the
benefits of insurance and considered as an attached agency of the Department of
Finance?

Basis: The Philippine Deposit Insurance Corporation (PDIC) is a government

instrumentality created in June 22, 1963 by Republic Act 3591, as amended, to
insure the deposits of all banks. PDIC exists to protect depositors by
providing deposit insurance coverage for the depositing public and help promote
financial stability.

C. Philippine Deposit Insurance Corporation (PDIC)

A. Development Bank of the Philippines (DBP)
D. Bangko Sentral ng Pilipinas (BSP)
B. Landbank of the Philippines (LBP)

48.

SITUATION 1 REMEDIAL RIGHTS

Page 10 of 31 
 
SITUATIONAL 2

SITUATIONAL 3

39. The following statements relative to liquidation and dissolution of

cooperatives are presented to you for evaluation: I. Upon the dissolution of
the cooperative, the reserve fund shall be distributed among the members. - F;
"shall not be”.

II. All subsidies, donations, legacies, grants, aids and other assistance from
any local or foreign institutions whether public or private shall donated to
the community where the cooperative operates. - F; "shall be escheated" CDA
Memorandum Circular 2010-08 Section 10

III. Payment of creditors shall be in accordance with the contract upon which
it is based and the provision of the New Civil Code on the preference and
concurrence of credits. T; CDA Memorandum Circular 2010 08 Section 8.

What is the correct evaluation?

a. False; False; False
b. False; False; True
c. True; True; False
d. True; True; True

THE MONEY OF DODONG JUAN MIGUEL IS ALREADY DEPOSITED IN THE BANK AND ASKED HIS
LAWYER PATRICK ALLAISTER IF HE COULD DEPOSIT IT TO VARIOUS BANKS.
WHAT STAGES OF MONEY LAUNDERING WAS IT?
A. PLACEMENT
B. LAYERING
C. INTEGRATION
D. CENTURY EGG

WHEN IS THE LAST DAY OF FILLING IN SEC ?

FEBUARY 23, 2021
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EXTRA TSISMIS NI MARENG MARITES AT KUMARENG KAREN:

PREVIOUS CPA RFBT/LAW EXAM FROM YEAR (2013 TO 2019) ITO PABORITO TITINATANONG
PARANG SA EASY LEVEL KAYA NEEDED MAG WRAP UP DITO NA PART SINALI KO NALANG
PARA SURE.

The following are the requisites of an obligation, except:

a. passive subject, debtor, or obligor.
b. active subject, creditor, or obligee.
c. efficient cause.
d. demand

Obligations may arise from any of the following, except

a. contracts
b. quasi-contracts
c. law
d. prestation

It is the voluntary administration of the property of another without consent.

a. Negotiorum gestio
b. Solutio indebiti
c. Quasi-delict
d. Contract

It is a wrong committed without any pre-existing relationship between the

parties.
a. Natural obligation
b. Quasi-delict
c. Quasi-contract
d. Crime

Unless the law or the stipulations of the parties require another standard of
care, every person obliged to give something is also obliged to take care of it
with:
a. Extra-ordinary diligence
b. Diligence of a father of a good family
c. Diligence of a good father of a family
d. Good diligence of a father of a family

The creditor has a right that is enforceable against a definite passive object.
This is known as:
a. Personal right
b. Real right
c. Natural right
d. Civil right
Page 12 of 31 
 
It is a thing that is particularly designated from all others of the same
class?
a. Generic thing
b. Indeterminate thing
c. Determinate thing
d. Real thing

One of the following is a determinate thing. Which is it?

a. A dog
b. A cat
c. A Nissan Terra with engine number 4869, body number 0098, and plate number
AP 0900
d. A necklace with diamond pendant

A demand must be performed on the due date of the obligation in order for delay
to exist in one of the following cases. Which is it?
a. When it was stipulated by the parties that demand need not be made
b. When the law provides that demand need not be made
c. When the obligation does not indicate whether demand must be made or not on
due date
d. When time is of the essence of the contract

This refers to the delay on the creditor's part.

a. Mora solvendi ex re
b. Compensatio morae
c. Mora solvendi ex persona
d. Mora accipiendi

No liability in case of fortuitous events.

a. When the debtor delays
b. When the parties so stipulated that there shall be a liability even in case
of loss due to fortuitous events
c. When the nature of the obligation requires the assumption of risks
d. When the obligation is to deliver a determinate thing and there was no
stipulation as to the liability of the debtor in case of loss due to fortuitous
events

The following are the remedies of the creditor to pursue against the debtor,
except
a. Pursue the property owned and in possession of the debtor
b. Accion subrogatoria
c. Accion pauliana
d. Compel the debtor to perform the service in obligations to do

D borrowed P500,000 from C. C dies before he has collected the debt leaving S,
his son, as heir. Which of the following statements is correct?
a. S can collect from D although D and C did not agree that the credit right
will pass on to the heirs of C
b. S cannot collect because the credit right is personal to C
c. S can collect only if D and C agreed that the credit right will pass on to
the heirs of C
Page 13 of 31 
 
d. S cannot collect because the law prohibits the transmission of the credit
right

D is obliged to give C a specific car if C passes the CPA Licensure

Examination. D's obligation is an example of:
a. A pure obligation
b. An obligation with a suspensive condition
c. An obligation with a resolutory condition
d. An obligation with a period

One of the following obligations is not immediately demandable

a. A pure obligation
b. Obligation with a resolutory condition
c. Obligation with an in diem period
d. Obligation with an ex die period

One of the following is a void obligation

a. D is obliged to give C P30,000 if C does not go to Saturn
b. D is obliged to give C P30,000 if D goes to Cebu
c. D is obliged to give C P30,000 if C goes to Cebu
d. D is obliged to give C P30,000 if D wins the lottery on a ticket that he had
already bought

D is obliged to give C P100,000 if X dies. This is an example of

a. An obligation with a suspensive condition
b. An obligation with a resolutory condition
c. An obligation with a period
d. A pure obligation

When the debtor binds himself to pay when his means permit him to do so, the
obligation is:
a. An obligation with a resolutory condition
b. A pure obligation
c. An obligation with a suspensive condition
d. An obligation with a suspensive period

It is presumed that when a period is designated in an obligation, it is for the

benefit of:
a. Debtor
b. Creditor
c. Both debtor and creditor
d. Neither of the two parties

The debtor shall lose the right to make use of the period in the following
cases, except when he:
a. Becomes insolvent
b. Violates any undertaking in consideration of which the creditor agreed to
the period
c. Attempts to abscond
d. Does not furnish any guarantee or security to the creditor
-PAUY
Page 14 of 31 
 
-PAUY
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xxX

(BLN ch14 No.3) Resolutory condition

(reconstructed) Two parties had an agreement to buy and sell a thing. Before
delivery but after the agreement, the thing was lost due to fortuitous event
making it impossible for performance of the contract of sale. What do you call
this loss?
Choices are supervening, antecedent, prevenient and _______ loss
A. Supervening loss
B. Antecedent loss
C. Prevenient loss
DISCHARGE OF CONTRACT BY SUBSEQUENT IMPOSSIBILITY OR SUPERVENING IMPOSSIBILITY

Pre-contractual Impossibility: A contract which at the time it was entered into

was impossible to perform, is void ab initio and creates no rights and
obligations, e.g., a promise to ride a horse to the sun.

Post-Contractual Impossibility: A contract, which at the time it was entered

into, was capable of being performed may subsequently become impossible to
perform or unlawful. In such cases the contract becomes void. This is known as
the doctrine of supervening Impossibility. It is also known as the Doctrine of
Frustration.

D. (b86 pw h2) 7. A wrote a check to B, B used the said check to pay his
obligation to C. C did not encash it for several years. Eventually, the bank
went bankrupt and A died. How is the obligation of B extinguished?
A. Prescription
B. Impossibility of Performance
C. Carelessness
D. It was not extinguished.(converted to natural obligations?)

B. (b86 pw h2) 8. D borrowed P3,000 from C. In order to secure the fulfilment

of the contract of loan. D pledged and delivered his specific laptop to C as
collateral for his obligation. At the maturity date of the loan, D defaulted in
the payment of the obligation. At the maturity date of the loan, D and C
voluntarily agreed that the said laptop shall be used in full settlement of the
secured loan. Which is correct?
A. The said agreement is pactumcommissorium and therefore null and void.
B. Ownership of the laptop was acquired by C and the contract of loan is fully
extinguished by dacionenpago.
C. Ownership of the laptop was acquired by C by reason of pact um commissorium.
D. The contract or loan is extinguished only if the value of the laptop is
equal to the amount of the loan.

B. (b86 pw h2) 16. A applied for a life insurance with Sun Life Company. During
the medical examination, A sent his healthy twin brother. Based on the result
of the medical examination, Sun Life company approved the life insurance
Page 15 of 31 
 
applied by A. What is the remedy available to Sun Life company upon discovery
of the substitution?
A. File an action for damages because is guilty of incidental fraud or
doloincidente
B. File an action for annulment of contract because is guilty of causal fraud
which vitiated sun life's consent.
C. File an action for declaration of nullity because of the want of consent
D. File an action for rescission of contract because it is intended to defraud
creditors
Causal fraud – Fraud in Obtaining consent - Voidable subj to annulment
(dolocausante)
Incidental Fraud – Fraud in Performance– VALID subj to Damages (doloincidente)

D.(b86 pw H3) 22. In which of the following instances are the goods still in
transit which will allow the unpaid seller to exercise his right of stoppage in
transitu in case of insolvency of the buyer?
A. If the buyer of things delivery of the goods before arrival at the appointed
destination
B. If the carrier or other bailee acknowledges to the buyer or his agent, that
he's holding the goods in his behalf, after arrival of the goods at their
appointed destination
C. If the carrier or other bailee wrongfully refuses to deliver the goods to
buyer or his agent
D. If the goods are rejected by the buyer and the carrier or other bailee
continues in possession of them, even if the seller has refused to receive them
back.
(reconstructed) Which of the following is NOT a valid defense in BP22 as
compared to Estafa?
A. Lack of knowledge
B. Good Faith
C. Criminal intent to defraud
ESTAFA BP 22
Good Faith Good faith and lack Good Faith is NOT a
of intent are valid defense
defenses
Payment of a NO estafa : If the There may still be a
pre-existing check is in payment liability
obligation of a pre-existing
obligation there is
no deceit and
hence, the crime of
estafa cannot exist
How Estafa committed by BP 22 requires that the
merely issuing a accused BOTH drew and
worthless check issued a check
Period to make Three (3) days Five (5) banking days
Good the check
Valid defense of BP 22 - Payment; requirement of notice: such maker or drawer
will not be liable if you pay the holder thereof the amount you thereon, or
makes arrangements for payment in full by the drawee of such check within five
(5) banking days after receiving the notice that such check has not been paid
by the drawee.
Page 16 of 31 
 
C. (b86 pw H3) 25. What is the prescriptive period of the right to file an
action based on breach of warranty of sale of immovable against non-apparent
and unregistered burden or servitude?
A. 40 days from the date of contract of sale or from the discovery of burden
B. 6 months from the date of contract of sale or from discovery the of burden
C. One year from the date of contract of sale or from the discovery of burden
D. Three days from the date of contract of sale or from the discovery of burden

C. (b86 pw h3) 30. D borrowed P100,000 from C and entered into a chattel
mortgage involving his land to secure the payment of his loan. D failed to pay
the loan at maturity date. Which of the following statements is correct?
A. The contract chattel mortgage is null and void in so far as the contracting
parties are concerned because the subject matter is a land
B. C cannot foreclose the chattel mortgage over the land because the subject
matter must be a movable property
C. C may still foreclose the chattel mortgage on the land on the basis of
doctrine of estoppel
D. Third person directly affected by the contract of chattel mortgage is not
allowed to file an action for declaration of nullity because of relativity of
contract
Rationale: kasidawpwedenamantalaganiya ma-foreclose yunkasinaka-sangla. Kaya
lang MOVABLE langkasiyung chattel. Pero between them VALID pa din. Kasi
estopped.

B. (Cpa)32.(Co-u I)32. M made the promissory note payable to P or bearer. P

specially indorsed the note to A. A also especially indorsed it to B. X stole
the note from B and delivered it to C without any indorsement. Who made he held
liable to C?
A. X only.
B. M and X only.
C. M, P, A and X only.
D. M, P, A, B and X.
Where an instrument, payable to bearer, is indorsed specially, it may
nevertheless be further negotiated by delivery; but the person indorsing it
specially is liable as indorser to only such holders as make title through his
indorsement.
Therefore, only M and X shall be liable to C. C cannot hold P and A liable
because he did not acquire title through their special endorsement. C likewise
cannot hold B liable because the note was stolen from him without intention to
transfer it.

B. (co-u I) 30. M made a promissory note payable to P's order. X stole the note
and forged P's signature as indorser to A. A indorsed the note to B as follows:
"Pay to B sans recourse, (Sgd.)A."
Who among the parties shall be liable to B?
A. X, M and P only
B. X and A only
C. X and M only
D. X only
A qualified indorser is secondarily liable for his warranties by reason of
forgery, lack of good title to the instrument, incapacity of prior party any
validity of instrument at the time of his indorsement. But a qualified indorser
is not liable if the instrument is dishonored due to insolvency of the person
primarily liable such as the maker and acceptor.

B. (b86 pw H3) 32. T is indebted for P5,000 to MACE Trading Company, a

partnership managed by M to whom T also owes P10,000. The two debts which are
both demandable are unsecured. T remits P4,500.00 to M in payment of his debt
Page 17 of 31 
 
to him. Accordingly, M issues a receipt for his own credit. To which credit
should the payment be applied?
A. To M's credit because the payment made by T is intended for his debt to M
who issues his own receipt.
B. To both the partnership credit and M’s credit proportionately at to both the
partnership credit and M’s credit proportionately at P1,500.00 in P3,000.00,
respectively.
C. To M's credit because its amount is greater than that of the partnership
credit.
D. To the partnership credit because the managing partner should not prepare
his own interests to that of the partnership.

B. (b86 pw H3) 39. MAGIC Company it's a partnership composed of M, A, G, I and

C, with M as manager who is authorized to collect the credits of the
partnership. T owes M P4,000 which is due on December 10, 2050. She also owns
MAGIC company 6,000 which is due on December 20, 2050. On December 15, 2050, T
tendered payment in the amount of P4,000 to M in payment off her debt to the
latter. M issued her own receipt acknowledging the payment. Which is correct?
A. The payment will be applied proportionately to the credits of MAGIC Company
and M in the amount of P1,600 and P2,400, respectively.
B. The payment will be applied in its entirety to M's personal credit.
C. The payment will be applied in its entirety to MAGIC Company's credit.
D. The payment will be applied equally to the two debts of T.

MANAGING PARTNER COLLECTING FROM A COMMON DEBTOR:

To prevent the managing partner from furthering his personal interest to the
detriment of the firm, if such managing partner collects a sum from a common
debtor who owes money both to said partner and to the partnership:
1. MP issued a receipt in the name of the Partnership: the payment shall be
applied to the partnership credit;
2. MP issued a receipt in his name: (prorata) the payment shall be applied
proportionate to the amounts of the two debts. EXCEPT: When the debt owed by
the debtor to the managing partner is more onerous, the debtor may choose to
apply the payment exclusively to such

D. (b86 pw h3) 43. Which of the following will not cause the automatic
dissolution of a general partnership?
A. Death of a partner
B. Insolvency of a partner
C. When the partnership business becomes unlawful
D. Insanity of a partner
Insanity of a Partner does not automatically dissolve a general partnership.
The court will act only on the petition of a partner who himself is not insane.
An offer becomes ineffective
Partnership Dissolution
before ACCEPTANCE:
D - Death D - Death
I - Insolvency I - Insolvency
C – Civil Interdiction C – Civil Interdiction
I - Insanity
Court decree required:
1. by insanity of a partner
2. business can only be carried on at a LOSS.

D. (b86 pw H3) 47. Which right is not available to an assignee of a limited

partner?
A. The receipt of the assignor's share of the profits.
B. The receipt of the assignor's sadder compensation by way of income
C. The return of the assignor's contribution
D. The inspection of partnership book or account of partnership transactions.
Page 18 of 31 
 

B. (b86 pw H4) 75. Equitable-Bank and PCI-Bank combined which result to

formation of new corporation named Equitable-PCI Bank. What is the type of this
business combination?
A. Merger
B. Consolidation
C. Joint venture
D. Joint operation

D.(Cpa) 59. Removal of directors by the stockholders may be with or without

cause provided that removal without cause may not be used to deprive the
minority stockholders of their
A. Appraisal right
B. Pre-emptive rights.
C. Right to file derivative suit against the majority stockholders
D. Right of representation to which they may be entitled under the law

A (Reconstructed) The BOD approved issuance of new shares without asking for
the stockholders' permission, a stockholder complained that his right was
violated. What right was violated?
A. Preemptive right
B. Stockholder right
C. Appraisal right
D. Right of first refusal

Appraisal right - Right of dissenting shareholder to compel the corporation to

buy his share at (FV) fair value when he disagrees on the following:

Preemptive right - Right of shareholders to subscribe/ acquire newly issued

shares of the corporation (proportionate to his present shares) before said
shares are sold to the public.
Effect if violated? VALID but→ Rescind + Damages
(Cases when NO preemptive right) new shares are issued to:
1. Pay Corporate Debts
2. Buy assets needed by corporation
3. Comply with requirements of the law
4. Denied by the articles of incorporation (CC)
PRE-EMPTIVE RIGHT RIGHT OF FIRST REFUSAL
Common law right Contractual right
Available in all types of corporation Available to close corporation
Corporation is the issuer – incumbent Stockholder is the seller –
first before outsiders loobmunabagolabas

(Reconstructed) Which of the following is NOT an advantage of non-par value

shares? Choices: flexibility
A. Flexibility
PAR VALUE shares NO-PAR VALUE
shares
Minimum issue no min P5
price
Subscribed yes -not allowed
shares
Subscription yes -not allowed
receivable
Fully Paid? Not necessarily ALWAYS
needed
Legal Capital Total PAR VALUE Total
Page 19 of 31 
 
of shares issued CONSIDERATION
and subscribed received
including share
premium
Share premium SP in excess of SP cannot be
par can be declared as
declared as dividends
dividends

D. (Cpa) 66. Unless the bylaws provide otherwise, written notice of regular
meeting shall be sent to all stockholders of record at least
A. One week prior to the meeting
B. 2 weeks prior to the meeting
C. 14 days prior to the meeting
D. 21 days prior to the meeting
(Except the questions pertains to both regular and special meetings. Choices
are 21, 7, 5 and 2 )

BOD Shareholders
Quorum Majority Majority
Date of Monthly as fixed by the by- Annual as fixed by the by-laws.
Regular laws If no such date is fixed, any
Meeting date after April 15.
Date of At any time deemed At any time deemed necessary or
Special necessary or as provided in as provided in the by-laws
Meeting the by-laws
NOTICE Regular / Special Meetings Regular Meetings – 21 days
- 2 days prior to the Special Meetings – 1 week
meeting

C. (b86 pw H3) 74. Under Old and Revised Corporation Code, which corporate
officer is required to be resident-citizen of the Philippines?
A. President, Secretary and Treasurer
B. Secretary and Treasurer only
C. Secretary only
D. None of the above
Treasurer – required to be a resident of the Philippines. Need not be a
citizen.
Secretary – required to be a resident-citizen of the Philippines

C 9.) DEF Corp. has a board of five directors. The company president learns of
a chance to acquire a related business and wants the board to consider and
approve the deal. The president sends a notice to the directors of a special
meeting to happen in three days, but not to director D for whom the corporation
has no address. The meeting is attended by three directors (but not D), two of
them by Skype. The three at the meeting all improve the acquisition. Is their
action valid?
A. Yes - Notice was sufficient since it went to a majority of the board at
least two days before the meeting
B. Yes - The quorum at a special meeting, unlike a regular meeting, is 1/3 of
the board
C. No - Notice must be sent to each director, and the failure to send a notice
to D invalidates the meeting
D. No - a board of meeting must be in person, unless the articles are bylaws
specifically allows electronic or telephonic presence of directors at meeting.

(Reconstructed) the Voting trust agreement is different from proxy in that

Legally recognized by the SEC (?)
VTA Proxy
Page 20 of 31 
 
Form P.I + SEC In writing only
Registration
Duration 5 years more GR: 1 meeting only
or
(esp. inloan If continuous : max
agreement) of 5 years per proxy
appointment
Holder Assignee of Agent only: as a
shareholder rule, Revocable
Voting Right is not anytime (e.g.,
revocable anytime presence of the SHs
in the meeting VOIDS
the proxy)
Can be Yes No, because agent
elected as only
Director? Not allowed in BOT
meetings
Can be denied in AOI
and BL

B (co-u V) 262. One of the following is a feature of a share of stock?

A. It makes the stockholder a creditor of the corporation
B. It is an incorporeal right.
C. It represents property of the corporation
D. It requires a certificate of stock to vest ownership.
A share of stock represents the interest of the stockholder in a corporation
and is, therefore an incorporate right. A certificate of stock, on the other
hand if the evidence of that interest. The former may be issued even if the
subscription is not yet fully paid save in the case of no par stock, where is
the latter is issued only upon full payment of the subscription price, unless
the bylaws expressly allow otherwise.

Aextra(co-u V) 263. Which of the following is not a feature of preferred stock?

A. It cannot vote, unless expressly granted in the articles of incorporation
B. It is only preferred as to dividends in the absence of stipulation
C. It is always a par value stock
D. It may be redeemable stock

A(Co-u V) 298. X is a director owning 20% of the outstanding capital stock of

ABC Corporation and 40% of RST Corporation. The two corporations entered into a
contract whereby ABC Corporation sold its commercial lot to RST Corporation.
The contract was approved as follows: ABC Corporation - 4 out of 5 directors
voted in the affirmative, including X; RST Corporation - five out of seven
directors voted in the affirmative, including X.
The contract entered into by the two corporations is:
A. Valid
B. Voidable
C. Unenforceable
D. Void
A contract between 2/more corporations with interlocking directors is VALID and
cannot be invalidated on that ground alone, provided the following conditions
are present:
1. Absence of fraud
2. The contract is fair and reasonable under the circumstances; and
3. If the interest of the interlocking director in one corporation/s is merely
nominal (not more than 20% of the outstanding capital stock), he shall be
subject to the rules of self-dealing directors in so far as the latter
corporation/s are concerned.
Page 21 of 31 
 
(Reco) the following can be validly acted by the Executive Committee
except?(similar to 299)
D. (Co-u V) 299. An executive committee can validly act on the
A. Amendment of the articles of incorporation of the corporation
B. Preparation of the plan for merger of the corporation with another
corporation
C. Filing of vacancy in the board of directors
D. None of the foregoing

An executive committee is a governing body which functions as the board itself

and governed by the same laws and rules applicable to the board of directors,
subject to the following conditions:
1.It must be provided for in the bylaws of the corporation
2. It's membership must be composed of at least three members of the board
3. It may icon matters within the competence of the board as may be delegated
to it in the bylaws or by the majority vote of the board, EXCEPT for the
following:
a. Any action that also requires to stockholder’s approval
b. Filling of vacancies in the board
c. Amendment or repeal of pilot or adoption of new bylaws
d. Amendment or repeal of any board resolution which by its express terms
is not so amendable;
e. Distribution of cash dividends to stockholders

C.(Co-u V) 315. Which of the following statements relative to corporate

stockholders' or members' meetings is true?
A. It is always held on any day of April each year.
B. It can be conducted anywhere in the Philippines.
C. It may be attended by means of proxy
D. It cannot be called on a special basis.

Stockholders or member’s meetings are also of two kinds:

1.Regular - annually on date fix in bylaws or in the absence thereof, on
any date after April; in the city or municipality where principal office is
located, and if practicable in the principal office of the corporation.
2. Special - anytime when necessary; same venue as provided for regular
meetings.

C. (Co-u V) 320. X entered into a voting trust agreement with Y whereby the
former transferred the legal title of all his shares of stock to the latter.
Which of the following statements in relation to voting trust is correct?
A. X is qualified to run for a seat in the board of directors.
B. X has tried to collect the dividends.
C. X and Y have the right to inspect corporate books.
D. X and Y have the right to vote in the election of the board of directors.

A voting trust agreement is an agreement whereby one or more stockholders

transfer their shares to a trustee in whose hands to control of all or part of
the stock is placed. The certificates of stock covered by the agreement are
surrendered in exchange with new ones with the trustee as registered owner
thereof. But the beneficial ownership of the stocks still remains with the
transferring stockholder. It must be notarized and cannot exceed 5 years at any
one time, except when made as a condition for a loan agreement in which case it
may exceed 5 years until the full payment of the loan. Under a voting trust
agreement, the legal title on the shares is transferred to the trustee with
only the beneficial ownership retained by the transferring stockholder.
Page 22 of 31 
 
A pooling agreement, on the other hand, is an arrangement between two or more
so colder swear by all or some of their share shall be voted as a unit in order
to gain control in the management of the corporation. Under this set-up, the
stockholders remain as the legal owners of the shares.

D (Co-u V) 329. X subscribe for 1,000 shares of P500 par value common stock for
P500,000. He was able to pay only P200,000 and so 600 unpaid shares were
declared delinquent. Accrued interest to date amounted to P21,000 and expenses
for the public sale amounted to P4,000. The following bids were offered:
A - P325,000 for 800 shares
B - P325,000 for 600 shares
C - P200,000 for 600 shares
D - P200,000 for 400 shares
What is the consequence of the sale to the highest bidder?
a. D shall own 400 shares and X shall retain 600 share
b. A shall own 800 shares and X shall retain 200 shares
c. B shall own 600 shares and the corporation shall own 400 shares.
d. B shall own 600 shares and X shall retain 400 shares.

Bidders in the public sale of delinquent stocks shall offer to pay the entire
amount of the subscription balance plus accrued interest in expenses of the
sale in exchange for the number of shares they wish to bid. The bidder offering
to pay the said amount for the least number of shares is the "highest bidder"
In the instant case, B is the highest bidder because he offered to pay the
entire unpaid subscription plus interest and expenses for the least number of
shares. The other 400 shares shall be retained by X.

(This is regarding individual suit of a shareholder. Situational)

REMEDIES AGAINST ERRING OFFICERS/DIRECTORS: In case of a wrongful or fraudulent
act of a director, officer or agent, stockholders have the following options:
1. Individual or Personal Action – for direct injury to his rights, such as
denial of his right to inspect corporate books and records or pre-emptive
rights;
2. Representative or Class Suit – in which one or more members of a class sue
for themselves as a class or for all to whom the right was denied, either as an
individual action or a derivative suit; and a
3. Derivative Suit – an action based on injury to the corporation – to enforce
a corporate right – wherein the corporation itself is joined as a necessary
party, and recovery is in favor of and for the corporation. It is a suit
granted to any stockholder to institute a case to remedy a wrong done directly
to the corporation and indirectly to stockholders.
The requisites for a derivative suit are as follows:
a. the party bringing suit should be a shareholder as of the time of the
act or transaction complained of, the number of his shares not being
material;
b. he has tried to exhaust intra-corporate remedies, i.e., has made a
demand on the board of directors for the appropriate relief but the latter
has failed or refused to heed his plea; and
c. the cause of action actually devolves on the corporation, the wrongdoing
or harm having been, or being caused to the corporation and not to the
particular stockholder bringing the suit.
Page 23 of 31 
 
B. (B86 pw h3) 57. Equitable-PCI Bank and BDO Unibank entered into business
combination which will result to BDO Unibank absorbing all the net assets of
Equitable-PCI Bank. What type of business combination is present in this case?
a.Consolidation
b. Merger
c. Dissolution
d. Spin-off

B. (Cpa) (tweaked) 71. The following statements relative to liquidation and

dissolution of cooperatives are presented to you for evaluation.
I. Upon the dissolution of the cooperative to reserve punch shall be
distributed among the members
II. All subsidies donations, legacies, grants, aids and other assistance from
any local or foreign institutions whether public or private shall be donated to
the community where the cooperatives operate.
III. Payment of creditor shall be in accordance with the contract upon which it
is based and the provision of the new civil code on the Preference and
Concurrence of Credits.
What is the correct evaluation?

A B C D

Statement False Fals True True

I e

Statement False Fals True True

II e

Statement False True False True

III

I. Dissolution
II. Subsidies donations, legacies, etc.,
III. Payment of creditor

A(Reco) (cpar)72. As a general rule, what is the Quorum in the Regular or

Special meeting of General Assembly of a Cooperative Bank?
a. At least one half plus one of the number of voting shares of all the members
in good standing
b. At least 25% of all members entitled to vote
c. At least 5% of all members entitled to vote
d. At least 3/4 of all members with voting rights present and constituting a
quorum
Quorum requirement for Cooperative Banks: 50% +1 (except amendments to AOI)

A (Reconstructed) Financial cooperatives are supervised by:

a. BSP
b. CDA
c. BSP/CDA for specific transactions
Financial Service Cooperative (FSC) - refers to a cooperative organized for the
primary purpose of engaging in savings and credit services and enhanced
Page 24 of 31 
 
financial services subject to the regulations of the BangkoSentral ng Pilipinas
(BSP)
Credit Cooperatives - Cooperative Development Authority has the supervisory
authority over these institutions.
The BangkoSentral has supervisory and regulatory authority only over the
cooperative banks because this type of cooperative organization shares the
nature and character of banks.

(Reconstructed) CDA will automatically dissolve a cooperative even without

revoking the authority when?
a. Minimum numbers of members are not followed,
b. Inoperative for 2 years
c. Permit is illegally obtained
d. Operating for an illegal cause
Involuntary Dissolution. – by order of a competent court after due hearing on the grounds of:
1. Violation of any law, regulation or provisions of its bylaws; or
2. Insolvency.
Dissolution by Order of the Authority. – The Authority may suspend or revoke, after due notice
and hearing, the certificate of registration of a cooperative on any of the following grounds:
<C>1. Having obtained its registration by fraud;
<D>2. Existing for an illegal purpose;
3. Willful violation, despite notice by the Authority, of the provisions of this Code or
its bylaws;
4. Willful failure to operate on a cooperative basis; and
<A>5. Failure to meet the required minimum number of members in the cooperative.
Dissolution by Failure to Organize and Operate. - <B>If a cooperative has not commenced business
and its operation within two (2) years after the issuance of its certificate of registration or
has not carried on its business for two (2) consecutive years, the Authority shall send a formal
notice to the said cooperative to show cause as to its failure to operate. Failure of the
cooperative to promptly provide justifiable cause for its failure to operate shall warrant the
Authority to delete its name from the roster of registered cooperatives and shall be deemed
dissolved. (Art 66-68)

(Reconstructed) The following scenarios can be proceeded with (Alternative

Dispute Resolution) ADR, except? Article 137 of RA 9520
ART. 137. Settlement of Disputes, Conciliation, and Mediation Proceedings. –
Disputes among members, officers, directors, and committee members, and intra-
cooperative, inter-cooperative, intra-federation or inter-federation disputes
shall, as far as practicable, be settled amicably in accordance with the
conciliation or mediation mechanisms embodied in the bylaws of cooperatives and
in such other applicable laws.

The conciliation and mediation committee of the cooperative shall facilitate

the <1ST>amicable settlement of intra-cooperative disputes and disputes among
members, officers, directors, and committee members.

"Should such conciliation or mediation proceeding fail, the matter shall be

settled through <2ND>voluntary arbitration: Provided, however, That before any
party can validly file a complaint with the Authority for voluntary
arbitration, it must first secure a certification from its (1) conciliation and
mediation committee and from the(2) cooperative union or federation to which it
belongs that despite all efforts to settle the issues, the same have failed.

(Reconstructed) what is the required reserve fund for an ordinary cooperative?

Choices are: 50%, 10%
Page 25 of 31 
 
A(cpar)145. What is the minimum amount of reserve fund in the FIRST five years
of operation of a cooperative?
A. At least 50% of net surplus
B. At least 10% of net surplus
C. At least 3% of net surplus
D. At least 7% of net surplus

B(cpar)146. AFTER the first five years of operation of a cooperative, what is

the minimum amount of reserve fund of a cooperative?
A. At least 50% of net surplus
B. At least 10% of net surplus
C. At least 3% of net surplus
D. At least 7% of net surplus

(Reconstructed) Which of the following are NOT the characteristics of FSC

(Financial Service Cooperatives)? Choices are: net work, reserve requirements,
and etc.
Sec 13. Net Worth. The Net Worth of the FSC shall not, at all times, be less
than an amount equal to eight percent (8%) of its risk assets. The net worth
positions should be sufficient to meet competitive pressure and adverse
economic conditions as they arise. It should enhance the safety of the members'
share and keep pace with growth in FSC assets.
Sec15. Reserve Requirements against Deposit Liabilities. The FSC shall maintain
a Liquidity Reserve Fund that will be restricted in nature, equivalent to at
least two per centum (2%) of their savings and time deposit liabilities.

Representative Assembly Types of Membership in Representative Assembly (Numerous and

Dispersed Membership) Section 2 No. 32.C of the IRR of R.A. No. 9520
(32) Guardian Cooperative - shall refer to duly registered cooperative to which a
laboratory cooperative is affiliated with.

(10) Representative Assembly means the full membership of a body of representatives

elected by each of the sectors, chapter or district o the cooperative duly assembled
for the purpose of exercising such powers lawfully delegated unto them by the general
assembly in accordance with its bylaws;

(2) General Assembly shall mean the full membership of the cooperative duly assembled
for the purpose of exercising all the rights and performing all the obligations
pertaining to cooperatives, as provided by this Code, its articles of cooperation and
bylaws: Provided, That for cooperatives with numerous and dispersed membership, the
general assembly may be composed of delegates elected by each sector, chapter or
district of the cooperative in accordance with the rules and regulations of the
Cooperative Development Authority;

Numerous and Dispersed Membership - shall refer to a cooperative whose membership are
in large number and geographically scattered/distributed by reason of geographical
location, work shift or other similar conditions making it impossible and difficult to
conduct their general assembly meeting.

(Reconstructed): Which of the following scenarios constitute valid membership

in a laboratory cooperative? Rule No. 6 of the IRR of R.A.
Name: "Laboratory Cooperative of (name of guardian cooperative)"
Laboratory cooperative - organized by minors and must be affiliated with the
registered cooperative
Page 26 of 31 
 
Purposes:
1. To serve as a training ground for its members to prepare them for membership
in regular cooperatives
2. To teach the values of thrift and saving mobilization among its members;
3. To instill cooperative values, principles, financial discipline, business
skills and leadership skills among its members
4. To promote and advocate Filipino social and cultural values financial
education, ecological awareness and sustainable development

B. (B86 pw H3) 90. Which member in a cooperative may invest in the common
stocks of cooperative?
a. Associate member
b. Regular member
c. Provisionary member
d. Temporary member
Associate member - member of a cooperative who has no right to vote or be voted
upon. Entitled only to such rights and privileges by the bylaws.

Cooperative bank - one organized for the purpose of providing a WIDE RANGE of
FINANCIAL SERVICES to cooperatives and their members

Financial service cooperative - one organized for engage in SAVINGS and CREDIT
services and other financial services

Credit cooperative - savings and LENDING to its members

(Question: Uninsured Deposits)Case 3: Single, "ITF" and "By" Accounts

Share in the Insured

Acct Type of Portion of the
Account Name Balance
No. Deposit deposit
Juan Antonio
Demand
1 Juan Dela Cruz Deposit P 200,000 P 200,000
Juan Dela Cruz ITF Savings P
2 Deposit 400,000 -
Antonio 400,000
Juan Dela Cruz Time
3 BYMaria Deposit 500,000 500,000 -
Juan Dela Cruz Time
4 BYMaria or Pedro Deposit 500,000 500,000 -
P P
Total P400,000
1,600,000 1,200,000
Insured Deposits 500,000 400,000
Uninsured Deposits 700,000
Explanations:
- Juan Dela Cruz is the principal owner of three accounts (i.e., Account
Nos. 1, 3 & 4). As these are maintained in the same right and capacity,
these accounts will be consolidated.
- The single account (Account No. 1) is under his name alone and the other
two are "By" accounts (Account Nos. 3 and 4) which are owned by him as
the PRINCIPAL DEPOSITOR or BENEFICIAL OWNER while Maria Dela Cruz and
Pedro Dela Cruz ACTED AS HIS AGENTS only. Thus, the total insured amount
Page 27 of 31 
 
payable to Juan Dela Cruz is P 500,000.00 and the uninsured amount is
P700,000.00.
- Antonio Dela Cruz on the other hand has only one account (Account No. 2),
an "ITF" account in which Antonio is the PRINCIPAL OR BENEFICIAL OWNER
and Juan acted as AGENT. Thus, Antonio Dela Cruz is entitled to a
separate deposit insurance of P 400.000.00 for his savings deposit.

(Reconstructed) What will happen to the dormant deposit after 10 years? Choices
are reinstated, escheated in favor of government, etc.
A. Reinstated
B. Escheated in favor of government
The Solicitor General, however, must institute an escheat proceeding before
these unclaimed balances be deposited to the credit of the government.

(Reconstructed) Which of the following suspicious transactions is LESS

punishable?
A. Organizing or directing others to commit financing of terrorism;
B. Attempt to commit the crimes of financing of terrorism and dealing with
property or funds of designated persons;
C. Conspiracy to commit the crimes of financing of terrorism and dealing with
property or funds of designated persons;
D. Cooperating, by previous or simultaneous acts, in the execution of either
the crime of financing of terrorism or conspiracy to commit the crime of
financing of terrorism;
Rule 3.H (115 - 118) of the IRR of AMLA (terrorism)

(stages of money laundering) Money is already deposited in a bank and asked his
lawyer if he could deposit it to various banks
Layering?
Wire transfers and use of shell corporations most likely occur during LAYERING,
a series of financial transactions during which the dirty money is passed
through a series of procedures.

(Due Diligence) Conduct of customer due diligence

C. (cpa) 98. In conducting Customer Due Diligence, covered persons shall
maintain a system of verifying the true identity of the clients based on the
A. Cognitive-based approach
B. Principle based approach
C. Risk-based approach
D. None of the choices
In conducting customer due diligence (CDD), a risk-based approach shall be
undertaken depending on the type of customer, business relationship or nature
of the product, transaction or activity. In this regard, a covered person shall
maintain a system that will ensure the conduct of CDD customer due diligence
which shall include:
1. Identity of customers – check relevant documents etc.
2. Identify the beneficial owner.
3. Understanding and, as appropriate, obtaining information on the purpose
and intended nature of the business relationship; and
4. Conducting ongoing due diligence on the business relationship and
scrutiny of transactions undertaken throughout the course
Page 28 of 31 
 
Where a covered person is unable to comply with the relevant CDD measures, it
shall (a) Refuse to not open an account, commence business relations, or
perform the transaction; or (b) terminate the business relationship or refuse
to perform the transaction and (c) consider filing a suspicious transaction
report (STR) in relation to the customer.

(Freeze Order) Which of the following is NOT correct? CA instead of RTC

Freezing of monetary instrument or property:The Court of Appeals upon
application ex parte by AMLC and after determination that probable cause exists
that any monetary instrument or property is in any way related to an unlawful
activity, may issue a freeze order which shall be effective immediately (for a
period of 20 days unless extended by the court of an application by the AMLC)

Freeze Order – comes from Court of Appeals (CA)

Asset Preservation / Protection Order – comes from Regional Trial Court (RTC)

B. (b86 pw H4) 138. What is the maximum period given to Court of Appeals to
result petition filed by Anti-Money laundering council for the issuance of bank
inquiry order involving bank accounts of suspected launderer or freeze order
involving bank accounts of suspected launderer?
a. 12 hours
b. 24 hours
c. 36 hours
d. 48 hours

iCARE Pw H2(Similar)C 99. A commissioned B to paint his garden. Who owns the
painting and the copyright on the painting, respectively?
A. Both A
B. Both B
C. A and B, respectively
D. B and A, respectively

Photography recreating the scenery in a postcard. Does that constitute

copyright infringement?
“…..Conversely, if you would photograph that very same sculpture to print it on
postcards and sell them, this might be a copyright infringement.”
Copyright does not protect ideas or facts. It only protects the way ideas are
expressed in a particular creation. This means that you are free to copy
someone else’s ideas regarding a subject matter.
Example: Photographer John takes a picture from the famous bridge over the
River Kwai in Thailand. This may inspire you to do a series of photographs of
the river scene. John’s original work is copyrighted, but not the bridge and
the river. John can therefore not prevent you from making pictures of that
same bridge. However, he can prevent you from duplicating his original
picture.

B (Co-U IV) 161. Under the IPC, which of the following cases will result into
the cancellation of a mark?
a. Lack of funds
b. Abandonment due to voluntary cessation of business operations
c. Abandonment due to government order
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d. None of the foregoing
The law specifically provides that lack of funds shall not be an excuse for
non-use of a mark.
Abandonment must not only be permanent but it must also be voluntary. Non-use
of a mark due to a government order restricting its use is involuntary on the
part of the owner and, therefore, not the kind of abandonment contemplated by
our trademark law.

B.(Co-U IV)180. (Similar) which of the following statements relative to

infringement and unfair competition is correct?
a. Infringement of trademark is the act of passing off one's goods as those of
another.
b. Fraudulent intent is essential in an action for unfair competition.
c. Registration of the trade name is necessary in an action for infringement of
tradename.
d. None of the foregoing.
The significant differences between and are the following:
Infringement Unfair Competition
unauthorized use of a trademark the passing off of one's goods as
those of another
fraudulent intent is unnecessary fraudulent intent is essential
(EXCEPT trade name), prior registration is not necessary
registration is a prerequisite to
the action

A (B86 pw h1) 136. It refers to the document to be used to obtain information

and/or estimates of hidden costs incurred by applicants are requesting parties
to access government services which may include, but is not limited to, bribes
and payment to fixers. The result of the survey shall also become basis for the
grant of awards, recognition and/or incentives for excellent delivery of
services in all government agencies.
a. Report card survey
b. Feedback mechanism
c. Business one stop shop
d. Automatic approval mechanism

extra:
B 9. A complex transaction is required to be transferred for a period of NOT
longer than:
A. Five (5) working days from date of receipt
B. Seven (7) working days from date of receipt
C. Ten (10) working days from date of receipt
D. Fourteen (14) working days from date of receipt

A 10. For the purpose of Ease of Doing Business at a transaction is considered

simple if:
A. It only requires ministerial actions
B. It only requires discretionary action
C. It presents consequential issues
D. It requires the use of technical knowledge

SIMPLE 3 working • Only require ministerial action

days • Only inconsequential issue
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COMPLEX 7 working
• One which necessitate
days
evaluation in the resolution of
the issue
HIGHLY TECHNICAL 20 working • requires the use of technical
days knowledge, specialized skills and
training
• activities which pose DANGER to
the public hsmp
Requiring Sanggunian approval (40 wd) can be extended +20wd

OLD – BLT BPI

RCC – BLT BPI POunder RA 11232
(STUDY THIS FAVE DAW SA CPALE)
These corporations are not Any corporation may be
allowed to issue No-Par value incorporated as a Close
common shares Corporation, EXCEPT:
a. Buildings and Loans Mining companies
association
b. Trust companies Oil companies
c. Banks Stock exchanges
d. Public utilities Banks
e. Insurance companies Insurance companies
f. Preneed companies Public utilities
g.Other corporations authorized Educational institutions
to obtain or access money from
the public (whether publicly
listed or not)
Other corporations declared to be
vested with public interest

D #17 When shall the subject matter of a contract of sale be

specific/determinate?
a. After the formation of contract of sale
b. In the fulfillment of contract of sale
c. In the extinguishment of contract of sale
d. At the time of contract of sale -> simplified
-> at a time of perfection, meeting of minds, formation of sale

F. (cpar) 477. What are the effects of dissolution and liquidation of a

corporation?
a. The dissolution or termination of the life of juridical entity does not by
itself cause the extinction or diminution of the rights and liability of such
entity nor those of its owners and creditors
b. The corporation continues to be a body corporate for 3 years after its
dissolution purposes of prosecuting and defending suits by and against it and
for enabling it to settle and close its affairs culminating in the dissolution
and distribution of its remaining assets.
c. It may during the three-year term appoint a trustee or a receiver who may
act beyond that period .
d. If the 3 year life has expired without a trustee or receiver having been
expressly designated by the corporation within that period, the (BOD) board of
directors or trustees themselves may be permitted to continue as trustee by
legal implication to complete the corporate liquidation.
e. In the absence of BOD/BOT, trustee or receiver, creditors may ask the sec to
appoint them as trustee for the liquidation of the corporation
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f. All of the above.