Bar Examination Questionnaire for Remedial Law

Set A

(2) A pending criminal case, dismissed provisionally, shall be deemed

permanently dismissed if not revived after 2 years with respect to offenses
punishable by imprisonment

(A) of more than 12 years.

(B) not exceeding 6 years or a fine not exceeding P1,000.00.

(C) of more than 6 years or a fine in excess of P1,000.00.

(D) of more than 6 years.

(3) Angie was convicted of false testimony and served sentence. Five years
later, she was convicted of homicide. On appeal, she applied for bail. May the
Court of Appeals deny her application for bail on ground of habitual
delinquency?

(A) Yes, the felonies are both punishable under the Revised Penal Code.

(B) Yes, her twin convictions indicated her criminal inclinations.

(C) No, the felonies fall under different titles in the Revised Penal Code.

(D) No, the charges are both bailable.

(5) Which of the following is a correct statement of the rule on amendment of

the information in a criminal proceeding?

(A) An amendment that downgrades the offense requires leave of court even
before the accused pleads.

(B) Substantial amendments are allowed with leave of court before the
accused pleads.

(C) Only formal amendments are permissible before the accused pleads.

(D) After the plea, a formal amendment may be made without leave of court.

(6) Gary who lived in Taguig borrowed P1 million from Rey who lived in Makati
under a contract of loan that fixed Makati as the venue of any action arising
from the contract. Gary had already paid the loan but Rey kept on sending
him letters of demand for some balance. Where is the venue of the action for
harassment that Gary wants to file against Rey?

(A) In Makati since the intent of the party is to make it the venue of any action
between them whether based on the contract or not.

(B) In Taguig or Makati at the option of Gary since it is a personal injury

action.

(C) In Taguig since Rey received the letters of demand there.

(D) In Makati since it is the venue fixed in their contract.

(9) The Metropolitan Trial Court convicted Virgilio and Dina of concubinage.
Pending appeal, they applied for bail, claiming they are entitled to it as a
matter of right. Is their claim correct?

(A) No, bail is not a matter of right after conviction.

(B) Yes, bail is a matter of right in all cases not involving moral turpitude.

(C) No, bail is dependent on the risk of flight.

(D) Yes, bail is a matter of right in the Metropolitan Trial Court before and after
conviction.

(13) Ramon witnessed the commission of a crime but he refuses to testify for
fear of his life despite a subpoena being served on him. Can the court punish
him for contempt?

(A) No, since no person can be compelled to be a witness against another.

(B) Yes, since public interest in justice requires his testimony.

(C) No, since Ramon has a valid reason for not testifying.

(D) Yes, since litigants need help in presenting their cases.

(15) Which of the following grounds for dismissal invoked by the court will
NOT PRECLUDE the plaintiff from refiling his action?

(A) Res judicata.

(B) Lack of jurisdiction over the subject matter.

(C) Unenforceability under the Statutes of Fraud.

(D) Prescription.

(17) The city prosecutor of Manila filed, upon Soledads complaint, a criminal
action for estafa against her sister, Wella, before the RTC of Manila for selling
to Victor a land that she previously sold to Soledad. At the same time Soledad
filed a civil action to annul the second sale before the RTC of Quezon City.
May the Manila RTC motu proprio suspend the criminal action on ground of
prejudicial question?

(A) Yes, if it may be clearly inferred that complainant will not object to the
suspension of the criminal case.

(B) No, the accused must file a motion to suspend the action based on
prejudicial question.

(C) Yes, if it finds from the record that such prejudicial question exists.

(D) Yes, if it is convinced that due process and fair trial will be better served if
the criminal case is suspended.

(19) Gerry sued XYZ Bus Co. and Rico, its bus driver, for injuries Gerry
suffered when their bus ran off the road and hit him. Of the two defendants,
only XYZ Bus Co. filed an answer, alleging that its bus ran off the road
because one of its wheels got caught in an open manhole, causing the bus to
swerve without the drivers fault. Someone had stolen the manhole cover and
the road gave no warning of the danger it posed. On Gerrys motion and over
the objection of XYZ Bus Co., the court declared Rico, the bus driver, in
default and rendered judgment ordering him to pay P50,000 in damages to
Gerry. Did the court act correctly?

(A) No, since the court should have tried the case against both defendants
upon the bus companys answer.

(B) No, the court should have dropped Rico as defendant since the moneyed
defendant is the bus company.

(C) Yes, the court can, under the rules, render judgment against the defendant
declared in default.

(D) Yes, since, in failing to answer, Rico may be deemed to have admitted the
allegations in the complaint.
(22) The accused jumps bail and fails to appear on promulgation of judgment
where he is found guilty. What is the consequence of his absence?

(A) Counsel may appeal the judgment in the absence of the accused.

(B) The judgment shall be promulgated in his absence and he loses his right
of appeal.

(C) The promulgation of the judgment shall be suspended until he is brought

to the jurisdiction of the court.

(D) The judgment shall be void.

(26) What is the proper remedy to secure relief from the final resolutions of
the Commission On Audit?

(A) Petition for review on certiorari with the Supreme Court.

(B) Special civil action of certiorari with the Court of Appeals.

(C) Special civil action of certiorari with the Supreme Court.

(D) Appeal to the Court of Appeals.

(28) Berto was charged with and convicted of violating a city ordinance
against littering in public places punishable by imprisonment of one month or
a fine of P1,000.00. But the city mayor pardoned him. A year later, he was
charged with violating a city ordinance against jaywalking which carried the
same penalty. Need Berto post bail for such offense?

(A) Yes, his previous conviction requires posting of bail for the present charge.

(B) Yes, since he may be deemed to have violated the terms of his pardon.

(C) No, because he is presumed innocent until proven otherwise.

(D) No, one charged with the violation of a city ordinance is not required to
post bail, notwithstanding a previous pardon.

(29) Which of the following claims survive the death of the defendant and
need not be presented as a claim against the estate?

(A) Contingent money claims arising from contract.

(B) Unenforced money judgment against the decedent, with death occurring
before levy on execution of the property.

(C) Claims for damages arising from quasi-delict.

(D) Claims for funeral expenses.

(30) In a case, the prosecutor asked the medical expert the question,
"Assuming that the assailant was behind the deceased before he attacked
him, would you say that treachery attended the killing?" Is this hypothetical
question permissible?

(A) No, since it asks for his legal opinion.

(B) Yes, but conditionally, subject to subsequent proof that the assailant was
indeed behind the deceased at that time.

(C) Yes, since hypothetical questions may be asked of an expert witness.

(D) No, since the medical expert has no personal knowledge of the fact.

(31) The city prosecutor charged Ben with serious physical injuries for
stabbing Terence. He was tried and convicted as charged. A few days later,
Terence died due to severe infection of his stab wounds. Can the prosecution
file another information against Ben for homicide?

(A) Yes, since Terences death shows irregularity in the filing of the earlier
charge against him.

(B) No, double jeopardy is present since Ben had already been convicted of
the first offense.

(C) No, there is double jeopardy since serious physical injuries is necessarily
included in the charge of homicide.

(D) Yes, since supervening event altered the kind of crime the accused
committed.

(32) Arvin was caught in flagrante delicto selling drugs for P200,000.00. The
police officers confiscated the drugs and the money and brought them to the
police station where they prepared the inventory duly signed by police officer
Oscar Moreno. They were, however, unable to take pictures of the items. Will
this deficiency destroy the chain of custody rule in the drug case?
(A) No, a breach of the chain of custody rule in drug cases, if satisfactorily
explained, will not negate conviction.

(B) No, a breach of the chain of custody rule may be offset by presentation in
court of the drugs.

(C) Yes, chain of custody in drug cases must be strictly observed at all times
to preserve the integrity of the confiscated items.

(D) Yes, compliance with the chain of custody rule in drug cases is the only
way to prove the accuseds guilt beyond reasonable doubt.

(34) What is the doctrine of judicial stability or non interference?

(A) Once jurisdiction has attached to a court, it can not be deprived of it by

subsequent happenings or events.

(B) Courts will not hear and decide cases involving issues that come within
the jurisdiction of administrative tribunals.

(C) No court has the authority to interfere by injunction with the judgment of
another court of coordinate jurisdiction.

(D) A higher court will not entertain direct resort to it unless the redress sought
cannot be obtained from the appropriate court.

(44) What is the right correlation between a criminal action and a petition for
Writ of Amparo both arising from the same set of facts?

(A) When the criminal action is filed after the Amparo petition, the latter shall
be dismissed.

(B) The proceeding in an Amparo petition is criminal in nature.

(C) No separate criminal action may be instituted after an Amparo petition is

filed.

(D) When the criminal action is filed after the Amparo petition, the latter shall
be consolidated with the first.

(49) When may the bail of the accused be cancelled at the instance of the
bondsman?

(A) When the accused jumps bail.

(B) When the bondsman surrenders the accused to the court.

(C) When the accused fails to pay his annual premium on the bail bond.

(D) When the accused changes his address without notice to the bondsman.

(50) Which of the following MISSTATES a requisite for the issuance of a

search warrant?

(A) The warrant specifically describes the place to be searched and the things
to be seized.

(B) Presence of probable cause.

(C) The warrant issues in connection with one specific offense.

(D) Judge determines probable cause upon the affidavits of the complainant
and his witnesses.

(52) The accused was convicted for estafa thru falsification of public
document filed by one of two offended parties. Can the other offended party
charge him again with the same crime?

(A) Yes, since the wrong done the second offended party is a separate crime.

(B) No, since the offense refers to the same series of act, prompted by one
criminal intent.

(C) Yes, since the second offended party is entitled to the vindication of the
wrong done him as well.

(D) No, since the second offended party is in estoppel, not having joined the
first criminal action.

(58) Which of the following states a correct guideline in hearing applications

for bail in capital offenses?

(A) The hearing for bail in capital offenses is summary; the court does not sit
to try the merits of the case.

(B) The prosecutions conformity to the accuseds motion for bail is proof that
its evidence of his guilt is not strong.
(C) The accused, as applicant for bail, carries the burden of showing that the
prosecutions evidence of his guilt is not strong.

(D) The prosecution must have full opportunity to prove the guilt of the
accused.

(60) What is the consequence of the unjustified absence of the defendant at

the pre-trial?

(A) The trial court shall declare him as in default.

(B) The trial court shall immediately render judgment against him.

(C) The trial court shall allow the plaintiff to present evidence ex-parte.

(D) The trial court shall expunge his answer from the record.

(61) What is the remedy of the accused if the trial court erroneously denies his
motion for preliminary investigation of the charge against him?

(A) Wait for judgment and, on appeal from it, assign such denial as error.

(B) None since such order is final and executory.

(C) Ask for reconsideration; if denied, file petition for certiorari and prohibition.

(D) Appeal the order denying the motion for preliminary investigation.

(66) What is the effect of the failure of the accused to file a motion to quash
an information that charges two offenses?

(A) He may be convicted only of the more serious offense.

(B) He may in general be convicted of both offenses.

(C) The trial shall be void.

(D) He may be convicted only of the lesser offense.

(70) Upon review, the Secretary of Justice ordered the public prosecutor to file
a motion to withdraw the information for estafa against Sagun for lack of
probable cause. The public prosecutor complied. Is the trial court bound to
grant the withdrawal?

(A) Yes, since the prosecution of an action is a prerogative of the public

prosecutor.

(B) No, since the complainant has already acquired a vested right in the
information.

(C) No, since the court has the power after the case is filed to itself determine
probable cause.

(D) Yes, since the decision of the Secretary of Justice in criminal matters is
binding on courts.

(79) The information charges PNP Chief Luis Santos, (Salary Grade 28), with
"taking advantage of his public position as PNP Head by feloniously shooting
JOSE ONA, inflicting on the latter mortal wounds which caused his death."
Based solely on this allegation, which court has jurisdiction over the case?

(A) Sandiganbayan only

(B) Sandiganbayan or Regional Trial Court

(C) Sandiganbayan or Court Martial

(D) Regional Trial Court only

(80) Distinguish between conclusiveness of judgment and bar by prior

judgment.

(A) Conclusiveness of judgment bars another action based on the same

cause; bar by prior judgment precludes another action based on the same
issue.

(B) Conclusiveness of judgment bars only the defendant from questioning it;
bar by prior judgment bars both plaintiff and defendant.

(C) Conclusiveness of judgment bars all matters directly adjudged; bar by

prior judgment precludes all matters that might have been adjudged.

(D) Conclusiveness of judgment precludes the filing of an action to annul such

judgment; bar by prior judgment allows the filing of such an action.
(83) What is the effect and ramification of an order allowing new trial?

(A) The courts decision shall be held in suspension until the defendant could
show at the reopening of trial that it has to be abandoned.

(B) The court shall maintain the part of its judgment that is unaffected and void
the rest.

(C) The evidence taken upon the former trial, if material and competent, shall
remain in use.

(D) The court shall vacate the judgment as well as the entire proceedings had
in the case.

(87) Which of the following is appealable?

(A) An order of default against the defendant.

(B) The denial of a motion to dismiss based on improper venue.

(C) The dismissal of an action with prejudice.

(D) The disallowance of an appeal.

(89) To prove the identity of the assailant in a crime of homicide, a police

officer testified that, Andy, who did not testify in court, pointed a finger at the
accused in a police lineup. Is the police officers testimony regarding Andy's
identification of the accused admissible evidence?

(A) Yes, since it is based on his personal knowledge of Andys identification of

the accused.

(B) Yes, since it constitutes an independently relevant statement.

(C) No, since the police had the accused identified without warning him of his
rights.

(D) No, since the testimony is hearsay.

(91) The prosecution moved for the discharge of Romy as state witness in a
robbery case it filed against Zoilo, Amado, and him. Romy testified, consistent
with the sworn statement that he gave the prosecution. After hearing Romy,
the court denied the motion for his discharge. How will denial affect Romy?
(A) His testimony shall remain on record.

(B) Romy will be prosecuted along with Zoilo and Amado.

(C) His liability, if any, will be mitigated.

(D) The court can convict him based on his testimony.

(99) When may an information be filed in court without the preliminary

investigation required in the particular case being first conducted?

(A) Following an inquest, in cases of those lawfully arrested without a warrant.

(B) When the accused, while under custodial investigation, informs the
arresting officers that he is waiving his right to preliminary investigation.

(C) When the accused fails to challenge the validity of the warrantless arrest
at his arraignment.

(D) When the arresting officers take the suspect before the judge who issues
a detention order against him.

Bar Examination Questionnaire for Civil Law

Set A

(2) The authority that school administrators exercise over school children
under their supervision, instruction, or custody is called

(A) legal parental authority.

(B) substitute parental authority.

(C) ordinary parental authority.

(D) special parental authority.

(3) Can future inheritance be the subject of a contract of sale?

(A) No, since it will put the predecessor at the risk of harm from a tempted
buyer, contrary to public policy.

(B) Yes, since the death of the decedent is certain to occur.

(C) No, since the seller owns no inheritance while his predecessor lives.
(D) Yes, but on the condition that the amount of the inheritance can only be
ascertained after the obligations of the estate have been paid.

(5) Lennie bought a business class ticket from Alta 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. Lennie
suffered the discomfort and embarrassment of the downgrade. She sued the
airlines for quasi-delict but Alta 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 Lennie 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.

(11) When one exercises a right recognized by law, knowing that he thereby
causes an injustice to another, the latter is entitled to recover damages. This
is known as the principle of

(A) res ipsa loquitur.

(B) damnum absque injuria.

(C) vicarious liability.

(D) abuse of rights.

(20) An agent, authorized by a special power of attorney to sell a land

belonging to the principal succeeded in selling the same to a buyer according
to the instructions given the agent. The agent executed the deed of absolute
sale on behalf of his principal two days after the principal died, an event that
neither the agent nor the buyer knew at the time of the sale. What is the
standing of the sale?

(A) Voidable.

(B) Valid.
(C) Void.

(D) Unenforceable.

(34) A buyer ordered 5,000 apples from the seller at P20 per apple. The seller
delivered 6,000 apples. What are the rights and obligations of the buyer?

(A) He can accept all 6,000 apples and pay the seller at P20 per apple.

(B) He can accept all 6,000 apples and pay a lesser price for the 1,000
excess apples.

(C) He can keep the 6,000 apples without paying for the 1,000 excess since
the seller delivered them anyway.

(D) He can cancel the whole transaction since the seller violated the terms of
their agreement.

(35) Lino entered into a contract to sell with Ramon, undertaking to convey to
the latter one of the five lots he owns, without specifying which lot it was, for
the price of P1 million. Later, the parties could not agree which of five lots he
owned Lino undertook to sell to Ramon. What is the standing of the contract?

(A) Unenforceable.

(B) Voidable.

(C) Rescissible.

(D) Void.

(36) Knowing that the car had a hidden crack in the engine, X sold it to Y
without informing the latter about it. In any event, the deed of sale expressly
stipulated that X was not liable for hidden defects. Does Y have the right to
demand from X a reimbursement of what he spent to repair the engine plus
damages?

(A) Yes. X is liable whether or not he was aware of the hidden defect.

(B) Yes, since the defect was not hidden; X knew of it but he acted in bad faith
in not disclosing the fact to Y.

(C) No, because Y is in estoppel, having changed engine without prior

demand.
(D) No, because Y waived the warranty against hidden defects.

(37) Acme Cannery produced sardines in cans known as "Sards." Mylene

bought a can of Sards from a store, ate it, and suffered from poisoning caused
by a noxious substance found in the sardines. Mylene filed a case for
damages against Acme. Which of the following defenses will hold?

(A) The expiry date of the "Sards" was clearly printed on its can, still the store
sold and Mylene bought it.

(B) Mylene must have detected the noxious substance in the sardines by
smell, yet she still ate it.

(C) Acme had no transaction with Mylene; she bought the "Sards" from a
store, not directly from Acme.

(D) Acme enjoys the presumption of safeness of its canning procedure and
Mylene has not overcome such presumption.

(45) Virgilio owned a bare and simple swimming pool in his garden. MB, a 7-
year old child, surreptitiously entered the garden and merrily romped around
the ledges of the pool. He accidentally tripped, fell into the pool, and drowned.
MBs parents sued Virgilio for damages arising from their childs death,
premised on the principle of "attractive nuisance". Is Virgilio liable for the
death of MB?

(A) No, the child was 7 years old and knew the dangers that the pool offered.

(B) Yes, being an attractive nuisance, Virgilio had the duty to prevent children
from coming near it.

(C) No, since the pool was bare and had no enticing or alluring gadgets,
floats, or devices in it that would attract a 7-year old child.

(D) Yes, since Virgilio did not cover the swimming pool while not in use to
prevent children from falling into it.

(46) The term of a 5-year lease contract between X the lessor and Y the
lessee, where rents were paid from month to month, came to an end. Still, Y
continued using the property with Xs consent. In such a case, it is understood
that they impliedly renewed the lease

(A) from month to month under the same conditions as to the rest.
(B) under the same terms and conditions as before.

(C) under the same terms except the rent which they or the court must fix.

(D) for only a year, with the rent raised by 10% pursuant to the rental control
law.

(49) Asiong borrowed P1 million from a bank, secured by a mortgage on his

land. Without his consent, his friend Boyong paid the whole loan. Since
Asiong benefited from the payment, can Boyong compel the bank to
subrogate him in its right as mortgagee of Asiong's land?

(A) No, but the bank can foreclose and pay Boyong back.

(B) No, since Boyong paid for Asiongs loan without his approval.

(C) Yes, since a change of creditor took place by novation with the banks
consent.

(D) Yes, since it is but right that Boyong be able to get back his money and, if
not, to foreclose the mortgage in the manner of the bank.

(58) X sold Y 100 sacks of rice that Y was to pick up from Xs rice mill on a
particular date. Y did not, however, appear on the agreed date to take delivery
of the rice. After one week, X automatically rescinded the sale without notarial
notice to Y. Is the rescission valid?

(A) Yes, automatic rescission is allowed since, having the character of

movables and consumables, rice can easily deteriorate.

(B) No, the buyer is entitled to a customary 30-day extension of his obligation
to take delivery of the goods.

(C) No, since there was no express agreement regarding automatic

rescission.

(D) No, the seller should first determine that Y was not justified in failing to
appear.

(61) X bought a land from Y, paying him cash. Since they were friends, they
did not execute any document of sale. After 7 years, the heirs of X asked Y to
execute a deed of absolute sale to formalize the verbal sale to their father.
Unwilling to do so, Xs heirs filed an action for specific performance against Y.
Will their action prosper?
(A) No, after more than 6 years, the action to enforce the verbal agreement
has already elapsed.

(B) No, since the sale cannot under the Statute of Frauds be enforced.

(C) Yes, since X bought the land and paid Y for it.

(D) Yes, after full payment, the action became imprescriptible.

(66) Roy and Carlos both undertook a contract to deliver to Sam in Manila a
boat docked in Subic. Before they could deliver it, however, the boat sank in a
storm. The contract provides that fortuitous event shall not exempt Roy and
Carlos from their obligation. Owing to the loss of the motor boat, such
obligation is deemed converted into one of indemnity for damages. Is the
liability of Roy and Carlos joint or solidary?

(A) Neither solidary nor joint since they cannot waive the defense of fortuitous
event to which they are entitled.

(B) Solidary or joint upon the discretion of Sam.

(C) Solidary since Roy and Carlos failed to perform their obligation to deliver
the motor boat.

(D) Joint since the conversion of their liability to one of indemnity for damages
made it joint.

(68) A warranty inherent in a contract of sale, whether or not mentioned in it, is

known as the

(A) warranty on quality.

(B) warranty against hidden defects.

(C) warranty against eviction.

(D) warranty in merchantability.

(76) X, who was abroad, phoned his brother, Y, authorizing him to sell Xs
parcel of land in Pasay. X sent the title to Y by courier service. Acting for his
brother, Y executed a notarized deed of absolute sale of the land to Z after
receiving payment. What is the status of the sale?
(A) Valid, since a notarized deed of absolute sale covered the transaction and
full payment was made.

(B) Void, since X should have authorized agent Y in writing to sell the land.

(C) Valid, since Y was truly his brother Xs agent and entrusted with the title
needed to effect the sale.

(D) Valid, since the buyer could file an action to compel X to execute a deed
of sale.

(77) In a true pacto de retro sale, the title and ownership of the property sold
are immediately vested in the vendee a retro subject only to the resolutory
condition of repurchase by the vendor a retro within the stipulated period. This
is known as

(A) equitable mortgage.

(B) conventional redemption.

(C) legal redemption.

(D) equity of redemption.

(79) The husband assumed sole administration of the familys mango

plantation since his wife worked abroad. Subsequently, without his wifes
knowledge, the husband entered into an antichretic transaction with a
company, giving it possession and management of the plantation with power
to harvest and sell the fruits and to apply the proceeds to the payment of a
loan he got. What is the standing of the contract?

(A) It is void in the absence of the wifes consent.

(B) It is void absent an authorization from the court.

(C) The transaction is void and can neither be ratified by the wife nor
authorized by the court.

(D) It is considered a continuing offer by the parties, perfected only upon the
wifes acceptance or the courts authorization.

(83) The owner of a thing cannot use it in a way that will injure the right of a
third person. Thus, every building or land is subject to the easement which
prohibits its proprietor or possessor from committing nuisance like noise,
jarring, offensive odor, and smoke. This principle is known as

(A) Jus vindicandi.

(B) Sic utere tuo ut alienum non laedas.

(C) Jus dispondendi.

(D) Jus abutendi.

(85) X borrowed money from a bank, secured by a mortgage on the land of Y,

his close friend. When the loan matured, Y offered to pay the bank but it
refused since Y was not the borrower. Is the banks action correct?

(A) Yes, since X, the true borrower, did not give his consent to Ys offer to pay.

(B) No, since anybody can discharge Xs obligation to his benefit.

(C) No, since Y, the owner of the collateral, has an interest in the payment of
the obligation.

(D) Yes, since it was X who has an obligation to the bank.

(86) The right of a mortgagor in a judicial foreclosure to redeem the

mortgaged property after his default in the performance of the conditions of
the mortgage but before the sale of the mortgaged property or confirmation of
the sale by the court, is known as

(A) accion publiciana.

(B) equity of redemption.

(C) pacto de retro.

(D) right of redemption.

(94) An action for reconveyance of a registered piece of land may be brought

against the owner appearing on the title based on a claim that the latter
merely holds such title in trust for the plaintiff. The action prescribes, however,
within 10 years from the registration of the deed or the date of the issuance of
the certificate of title of the property as long as the trust had not been
repudiated. What is the exception to this 10-year prescriptive period?
(A) When the plaintiff had no notice of the deed or the issuance of the
certificate of title.

(B) When the title holder concealed the matter from the plaintiff.

(C) When fortuitous circumstances prevented the plaintiff from filing the case
sooner.

(D) When the plaintiff is in possession of the property.

(100) Because of Xs gross negligence, Y suffered injuries that resulted in the

abortion of the foetus she carried. Y sued X for, among other damages, P1
million for the death of a family member. Is Y entitled to indemnity for the
death of the foetus she carried?

(A) Yes, since the foetus is already regarded as a child from conception,
though unborn.

(B) No, since Xs would not have known that the accident would result in Ys
abortion.

(C) No, since birth determines personality, the accident did not result in the
death of a person.

(D) Yes, since the mother believed in her heart that she lost a child.

Bar Examination Questionnaire for Commercial Law

Set A

(2) A cargo ship of X Shipping, Co. ran aground off the coast of Cebu during a
storm and lost all its cargo amounting to Php50 Million. The ship itself suffered
damages estimated at Php80 Million. The cargo owners filed a suit against X
Shipping but it invoked the doctrine of limited liability since its vessel suffered
an Php80 Million damage, more than the collective value of all lost cargo. Is X
Shipping correct?

(A) Yes, since under that doctrine, the value of the lost cargo and the damage
to the ship can be set-off.

(B) No, since each cargo owner has a separate and individual claim for
damages.

(C) Yes, since the extent of the ships damage was greater than that of the
value of the lost cargo.

(D) No, since X Shipping neither incurred a total loss nor abandoned its ship.
(21) T Shipping, Co. insured all of its vessels with R Insurance, Co. The
insurance policies stated that the insurer shall answer for all damages due to
perils of the sea. One of the insured's ship, the MV Dona Priscilla, ran
aground in the Panama Canal when its engine pipes leaked and the oil
seeped into the cargo compartment. The leakage was caused by the
extensive mileage that the ship had accumulated. May the insurer be made to
answer for the damage to the cargo and the ship?

(A) Yes, because the insurance policy covered any or all damage arising from
perils of the sea.

(B) Yes, since there appears to have been no fault on the part of the
shipowner and shipcaptain.

(C) No, since the proximate cause of the damage was the breach of warranty
of seaworthiness of the ship.

(D) No, since the proximate cause of the damage was due to ordinary usage
of the ship, and thus not due to a peril of the sea.

(22) X has been a long-time household helper of Z. X's husband, Y, has also
been Z's long-time driver. May Z insure the lives of both X and Y with Z as
beneficiary?

(A) Yes, since X and Y render services to Z.

(B) No, since X and Y have no pecuniary interest on the life of Z arising from
their employment with him.

(C) No, since Z has no pecuniary interest in the lives of X and Y arising from
their employment with him.

(D) Yes, since X and Y are Zs employees.

(23) X, Co., a partnership, is composed of A (capitalist partner), B (capitalist

partner) and C (industrial partner). If you were partner A, who between B and
C would you have an insurable interest on, such that you may then insure
him?

(A) No one, as there is merely a partnership contract among A, B and C.

(B) Both B and C, as they are your partners.

(C) Only C, as he is an industrial partner.

(D) Only B, as he is a capitalist partner.

(26) An insured, who gains knowledge of a material fact already after the
effectivity of the insurance policy, is not obliged to divulge it. The reason for
this is that the test of concealment of material fact is determined

(A) at the time of the issuance of the policy.

(B) at any time before the payment of premium.

(C) at the time of the payment of the premium.

(D) at any time before the policy becomes effective.

(44) On June 1, 2011, X mailed to Y Insurance, Co. his application for life
insurance, with payment for 5 years of premium enclosed in it. On July 21,
2011, the insurance company accepted the application and mailed, on the
same day, its acceptance plus the cover note. It reached X's residence on
August 11, 2011. But, as it happened, on August 4, 2011, X figured in a car
accident. He died a day later. May X's heirs recover on the insurance policy?

(A) Yes, since under the Cognition Theory, the insurance contract was
perfected upon acceptance by the insurer of X's application.

(B) No, since there is no privity of contract between the insurer and Xs heirs.

(C) No, since X had no knowledge of the insurer's acceptance of his

application before he died.

(D) Yes, since under the Manifestation Theory, the insurance contract was
perfected upon acceptance of the insurer of X's application.

(54) For a constructive total loss to exist in marine insurance, it is required

that the person insured relinquish his interest in the thing insured. This
relinquishment must be

(A) actual.

(B) constructive first and if it fails, then actual.

(C) either actual or constructive.

(D) constructive.
(60) Where the insurer was made to pay the insured for a loss covered by the
insurance contract, such insurer can run after the third person who caused the
loss through subrogation. What is the basis for conferring the right of
subrogation to the insurer?

(A) Their express stipulation in the contract of insurance.

(B) The equitable assignment that results from the insurers payment of the
insured.

(C) The insureds formal assignment of his right to indemnification to the

insurer.

(D) The insureds endorsement of its claim to the insurer.

(64) If an insurance policy prohibits additional insurance on the property

insured without the insurer's consent, such provision being valid and
reasonable, a violation by the insured

(A) reduces the value of the policy.

(B) avoids the policy.

(C) offsets the value of the policy with the additional insurancess value.

(D) forfeits premiums already paid.

(69) Perils of the ship, under marine insurance law, refer to loss which in the
ordinary course of events results from

(A) natural and inevitable actions of the sea.

(B) natural and ordinary actions of the sea.

(C) unnatural and inevitable actions of the sea.

(D) unnatural and ordinary actions of the sea.

(73) X, in the hospital for kidney dysfunction, was about to be discharged

when he met his friend Y. X told Y the reason for his hospitalization. A month
later, X applied for an insurance covering serious illnesses from ABC
Insurance, Co., where Y was working as Corporate Secretary. Since X had
already told Y about his hospitalization, he no longer answered a question
regarding it in the application form. Would this constitute concealment?
(A) Yes, since the previous hospitalization would influence the insurer in
deciding whether to grant X's application.

(B) No, since Y may be regarded as ABCs agent and he already knew of Xs
previous hospitalization.

(C) Yes, it would constitute concealment that amounts to misrepresentation on

X's part.

(D) No, since the previous illness is not a material fact to the insurance
coverage.

(82) A group of Malaysians wanted to invest in the Philippines insurance

business. After negotiations, they agreed to organize "FIMA Insurance Corp."
with a group of Filipino businessmen. FIMA would have a PhP50 Million paid
up capital, PhP40 Million of which would come from the Filipino group. All
corporate officers would be Filipinos and 8 out of its 10-member Board of
Directors would be Filipinos. Can FIMA operate an insurance business in the
Philippines?

(A) No, since an insurance company must have at least PhP75 Million paid-up
capital.

(B) Yes, since there is substantial compliance with our nationalization laws
respecting paid-up capital and Filipino dominated Board of Directors.

(C) Yes, since FIMAs paid up capital more than meets the countrys
nationalization laws.

(D) No, since an insurance company should be 100% owned by Filipinos.

(89) X Shipping, Co., insured its vessel MV Don Teodoro for Php100 Million
with ABC Insurance, Co. through T, an agent of X Shipping. During a voyage,
the vessel accidentally caught fire and suffered damages estimated at Php80
Million. T personally informed ABC Insurance that X Shipping was abandoning
the ship. Later, ABC insurance denied X Shippings claim for loss on the
ground that a notice of abandonment through its agent was improper. Is ABC
Insurance right?

(A) Yes, since X Shipping should have ratified its agents action.

(B) No, since T, as agent of X Shipping who procured the insurance, can also
give notice of abandonment for his principal.

(C) Yes, since only the agent of X Shipping relayed the fact of abandonment.
(D) No, since in the first place, the damage was more than of the ship's
value.

(93) In return for the 20 years of faithful service of X as a househelper to Y,

the latter promised to pay Php100,000.00 to Xs heirs if he (X) dies in an
accident by fire. X agreed. Is this an insurance contract?

(A) Yes, since all the elements of an insurance contract are present.

(B) Yes, since X services may be regarded as the consideration.

(C) No, since Y actually made a conditional donation in Xs favor.

(D) No, since it is in fact an innominate contract between X and Y.

(97) Shipowner X, in applying for a marine insurance policy from ABC, Co.,
stated that his vessel usually sails middle of August and with normally 100
tons of cargo. It turned out later that the vessel departed on the first week of
September and with only 10 tons of cargo. Will this avoid the policy that was
issued?

(A) Yes, because there was breach of implied warranty.

(B) No, because there was no intent to breach an implied warranty.

(C) Yes, because it relates to a material representation.

(D) No, because there was only representation of intention.