Political Law

I.

A priority thrust of the Administration is the change of the form of government from unitary to federal.
The change can be effected only through constitutional amendment or revision.

(a) What are the methods of amending the Constitution? Explain briefly each method. (3%)

(b) Cite at least three provisions of the Constitution that need to be amended or revised to effect
the change from unitary to federal, and briefly explain why? (3%)

II.

A.

Under the doctrine of immunity from suit, the State cannot be sued without its consent. How may the
consent be given by the State? Explain your answer. (3%)

B.

The doctrine of immunity from suit in favor of the State extends to public officials in the performance of
their official duties. May such officials be sued nonetheless to prevent or to undo their oppressive or
illegal acts, or to compel them to act? Explain your answer. (3%)

C.

Do government-owned or -controlled corporations also enjoy the immunity of the State from suit?
Explain your answer. (3%)

III.

State A and State B, two sovereign states, enter into a 10-year mutual defense treaty. After five years,
State A finds that the more progressive State B did not go to the aid of State A when it was threatened by
its strong neighbor State C. State B reasoned that it had to be prudent and deliberate in reacting to State C
because of their existing trade treaties.

(a) May State A now unilaterally withdraw from its mutual defense treaty with State B? Explain
your answer. (2.5%)

(b) What is the difference between the principles of pacta sunt servanda and rebus sic
stantibus in international law? (2.5%)

(c) Are the principles of pacta sunt servanda and rebus sic stantibus relevant in the treaty
relations between State A and State B? What about in the treaty relations between State B and
State C? Explain your answer. (2.5%)

IV.
 A.

What is the pardoning power of the President under Art. VIII, Sec. 19 of the Constitution?

Is the exercise of the power absolute? (4%)

B.

Distinguish pardon from amnesty. (4%)

V.

(a) What is the right of legation, and how is it undertaken between states? Explain your answer.
(2%)

(b) Under this right, may a country like Malaysia insist that the Philippines establishes a consulate
in Sabah to look after the welfare of the Filipino migrants in the area? Explain your answer. (2%)

VI.

A.

The President appoints the Vice President as his Administration's Housing Czar, a position that requires
the appointee to sit in the Cabinet. Although the appointment of the members of the Cabinet requires
confirmation by the Commission on Appointment (CA), the Office of the President does not submit the
appointment to the CA. May the Vice President validly sit in the Cabinet? (2.5%)

B.

The Executive Department has accumulated substantial savings from its appropriations. Needing
₱3,000,000.00 for the conduct of a plebiscite for the creation of a new city but has no funds appropriated
soon by the Congress for the purpose, the COMELEC requests the President to transfer funds from the
savings of the Executive Department in order to avoid a delay in the holding of the plebiscite.

May the President validly exercise his power under the 1987 Constitution to transfer funds from the
savings of the Executive Department, and make a cross-border transfer of ₱3,000,000.00 to the
COMELEC by way of augmentation? Is your answer the same if the transfer is treated as aid to the
COMELEC? Explain your answer. (4%)

VII.

Give the limitations on the power of the Congress to enact the General Appropriations Act? Explain your
answer. (5%)

VIII.

A bank acquired a large tract of land as the highest bidder in the foreclosure sale of the mortgaged assets
of its borrower. It appears that the land has been originally registered under the Torrens system in 1922
pursuant to the provisions of the Philippine Bill of 1902, the organic act of the Philippine Islands as a
colony of the USA. Sec. 21 of the Philippine Bill of 1902 provided that "all valuable mineral deposits in
public lands in the Philippine Islands, both surveyed and unsurveyed, are hereby declared to be free and
open to exploration, occupation and purchase, and the land in which they are found to occupation and
purchase, by citizens of the United States, or of said Islands." Sec. 27 of the law declared that a holder of
the mineral claim so located was entitled to all the minerals that lie within his claim, but he could not
mine outside the boundary lines of his claim.

The 1935 Constitution expressly prohibited the alienation of natural resources except agricultural lands.
Sec. 2, Art. XII of the 1987 Constitution contains a similar prohibition, and proclaims that all lands of the
public domain, waters, minerals, coal, petroleum, and other mineral oils, all forces of potential energy,
fisheries, forests or timber, wildlife, flora and fauna, and other natural resources are owned by the State.
This provision enunciates the Regalian Doctrine.

May the Government, on the basis of the Regalian Doctrine enunciated in the constitutional provisions,
deny the bank its right as owner to the mineral resources underneath the surface of its property as
recognized under the Philippine Bill of 1902? Explain your answer. (5%)

IX.

A.

Ambassador Robert of State Alpha committed a very serious crime while he headed his foreign mission in
the Philippines. Is he subject to arrest by Philippine authorities? Explain your answer. (3%)

B.

Extradition is the process pursuant to a treaty between two State parties for the surrender by the requested
State to the custody of the requesting State of a fugitive criminal residing in the former. However,
extradition depends on the application of two principles - the principle of specialty and the dual
criminality principle. Explain these principles. (4%)

C.

The President signs an agreement with his counterpart in another country involving reciprocity in the
treatment of each country's nationals residing in the other's territory. However, he does not submit the
agreement to the Senate for concurrence.

Sec. 21, Art. VII of the Constitution provides that no treaty or international agreement shall be valid and
effective without such concurrence.

Is the agreement signed by the President effective despite the lack of Senate concurrence? Explain your
answer. (4%)

X.

A.

Under the enrolled bill doctrine, the signing of a bill by both the Speaker of the House of Representatives
and the President of the Senate and the certification by the secretaries of both Houses of Congress that the
bill was passed on a certain date are conclusive on the bill's due enactment. Assuming there is a conflict
between the enrolled bill and the legislative journal, to the effect that the enrolled bill signed by the
Senate President and eventually approved by the President turned out to be different from what the Senate
actually passed as reflected in the legislative journal.

(a) May the Senate President disregard the enrolled bill doctrine and consider his signature as
invalid and of no effect? (2.5%)

(b) May the President thereafter withdraw his signature? Explain your answer. (2.5%)

B.

Sec. 26(2), Art. VI of the Constitution provides that no bill passed by either House of Congress shall
become a law unless it has passed three readings on separate days and printed copies of it in its final form
have been distributed to the Members of the House three days before its passage.

Is there an exception to the provision? Explain your answer. (3%)

XI.

Sec. 17, Art. VI of the Constitution establishes an Electoral Tribunal for each of the Houses of Congress,
and makes each Electoral Tribunal "the sole judge of all contests relating to the election, returns, and
qualifications of their respective Members." On the other hand, Sec. 2(1), C (Commission on Elections),
Art. IX of the Constitution grants to the COMELEC the power to enforce and administer all laws and
regulations "relative to the conduct of an election, plebiscite, initiative, referendum, and recall."

Considering that there is no concurrence of jurisdiction between the Electoral Tribunals and the
COMELEC, state when the jurisdiction of the Electoral Tribunals begins, and the COMELEC's
jurisdiction ends. Explain your answer. (4%)

XII.

The Congress establishes by law Philippine Funds, Inc., a private corporation, to receive foreign
donations coming from abroad during national and local calamities and disasters, and to enable the
unhampered and speedy disbursements of the donations through the mere action of its Board of Directors.
Thereby, delays in the release of the donated funds occasioned by the stringent rules of procurement
would be avoided. Also, the releases would not come under the jurisdiction of the Commission on Audit
(COA).

(a) Is the law establishing Philippine Funds, Inc. constitutional? Explain your answer. (3%)

(b) Can the Congress pass the law that would exempt the foreign grants from the jurisdiction of
the COA? Explain your answer. (3%)

XIII.

Command responsibility pertains to the responsibility of commanders for crimes committed by

subordinate members of the armed forces or other persons subject to their control in international wars or
domestic conflicts. The doctrine has now found application in civil actions for human rights abuses, and
in proceedings seeking the privilege of the writ of amparo.

(a) What are the elements to be established in order to hold the superior or commander liable
under the doctrine of command responsibility? (4%)

(b) May the doctrine of command responsibility apply to the President for the abuses of the armed
forces (AFP and PNP) given his unique role as the commander-in-chief of all the armed forces?
Explain your answer. (4%)

XIV.

To fulfill a campaign promise to the poor folk in a far-flung area in Mindanao, the President requested his
friend, Pastor Roy, to devote his ministry to them. The President would pay Pastor Roy a monthly stipend
of ₱50,000.00 from his discretionary fund, and would also erect a modest house of worship in the locality
in an area of the latter's choice.

Does the President thereby violate any provisions of the Constitution? Explain your answer. (3%)

XV.

A.

According to Sec. 3, Art. VIII of the Constitution, the Judiciary shall enjoy fiscal autonomy. What does
the term fiscal autonomy signify? Explain your answer. (3%)

B.

May a complaint for disbarment against the Ombudsman prosper during her incumbency? Explain your
answer. (3%)

C.

Sec. 3, Art. XI of the Constitution states that "[n]o impeachment proceedings shall be initiated against the
same official more than once within a period of one year."

What constitutes initiation of impeachment proceedings under the provision? (3%)

 Labor Law

A.

What are the accepted tests to determine the existence of an employer-employee relationship? (5%)

B.

Applying the tests to determine the existence of an employer-employee relationship, is a jeepney driver
operating under the boundary system an employee of his jeepney operator or a mere lessee of the
jeepney? Explain your answer. (3%)

II.

Procopio was dismissed from employment for stealing his co-employee Raul's watch. Procopio filed a
complaint for illegal dismissal. The Labor Arbiter ruled in Procopio's favor on the ground that Raul's
testimony was doubtful, and, therefore, the doubt should be resolved in favor of Procopio. On appeal, the
NLRC reversed the ruling because Article 4 of the Labor Code - which states that all doubts in the
interpretation and implementation of the provisions of the Labor Code, including the implementing rules
and regulations, shall be resolved in favor of labor - applied only when the doubt involved the
"implementation and interpretation" of the Labor Code; hence, the doubt, which involved the application
of the rules on evidence, not the Labor Code, could not necessarily be resolved in favor of Procopio. Was
the reversal correct? Explain your answer. (3%)

III.

A.

Andrew Manning Agency (AMA) recruited Feliciano for employment by lnvictus Shipping, its foreign
principal. Meantime, AMA and lnvictus Shipping terminated their agency agreement. Upon his
repatriation following his premature termination, Feliciano claimed from AMA and lnvictus Shipping the
payment of his salaries and benefits for the unserved portion of the contract. AMA denied liability on the
ground that it no longer had an agency agreement with lnvictus Shipping. Is AMA correct? Explain your
answer. (3%)

B.

As a rule, direct hiring of migrant workers is not allowed. What are the exceptions? Explain your answer.
(2.5%)

C.

Phil, a resident alien, sought employment in the Philippines. The employer, noticing that Phil was a
foreigner, demanded that he first secures an employment permit from the DOLE. Is the employer correct?
Explain your answer. (2.5%)

IV.
The Regional Tripartite Wages and Productivity Board (RTWPB) for Region 3 issued a wage order on
November 2, 2017 fixing the minimum wages for all industries throughout Region 3.

(a) Is the wage order subject to the approval of the National Wages and Productivity Commission
before it takes effect? (2%)

(b) The law mandates that no petition for wage increase shall be entertained within a period of 12
months from the effectivity of the wage order. Under what circumstances may the Kilusang
Walang Takot, a federation of labor organizations that publicly and openly assails the wage order
as blatantly unjust, initiate the review of the wage increases under the wage order without waiting
for the end of the 12-month period? Explain your answer. (3%)

V.

A.

Percival was a mechanic of Pacific Airlines. He enjoyed a meal break of one hour. However, during meal
breaks, he was required to be on stand-by for emergency work. During emergencies, he was made to
forego his meals or to hurry up eating. He demanded payment of overtime for work done during his meal
periods. Is Percival correct? Explain your answer. (3%)

B.

Distinguish a learner from an apprentice. (4%)

C.

Are there differences between a househelper and a homeworker? Explain your answer. (4%)

VI.

A.

One of Pacific Airline's policies was to hire only single applicants as flight attendants, and considered as
automatically resigned the flight attendants at the moment they got married. Is the policy valid? Explain
your answer. (2.5%)

B.

Tarcisio was employed as operations manager and received a monthly salary of ₱25,000.00 through his
payroll account with DB Bank. He obtained a loan from Roberto to purchase a car. Tarcisio failed to pay
Roberto when the loan fell due. Roberto sued to collect, and moved to garnish Tarcisio's payroll account.
The latter vigorously objected and argued that salaries were exempt from garnishment. Is Tarcisio
correct? Explain your answer. (3%)

VII.

Dr. Crisostomo entered into a retainer agreement with AB Hotel and Resort whereby he would provide
medical services to the guests and employees of AB Hoteland Resort, which, in turn, would provide the
clinic premises and medical supplies. He received a monthly retainer fee of ₱60,000.00, plus a 70% share
in the service charges from AB Hotel and Resort's guests availing themselves of the clinic's services. The
clinic employed nurses and allied staff, whose salaries, SSS contributions and other benefits he undertook
to pay. AB Hotel and Resort issued directives giving instructions to him on the replenishment of
emergency kits and forbidding the clinic staff from receiving cash payments from the guests.

In time, the nurses and the clinic staff claimed entitlement to rights as regular employees of AB Hoteland
Resort, but the latter refused on the ground that Dr. Crisostomo, who was their employer, was an
independent contractor. Rule, with reasons. (4%)

VIII.

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

IX.

Section 255 (245) of the Labor Code recognizes three categories of employees, namely: managerial,
supervisory, and rank-and-file.

(a) Give the characteristics of each category of employees, and state whether the employees in
each category may organize and form unions. Explain your answer. (5%)

(b) May confidential employees who assist managerial employees, and who act in a confidential
capacity or have access to confidential matters being handled by persons exercising managerial
functions in the field of labor relations form, or assist, or join labor unions? Explain your answer.
(2.5%)

X.

A.

The labor sector has been loudly agitating for the end of labor-only contracting, as distinguished from job
contracting. Explain these two kinds of labor contracting, and give the effect of a finding that one is a
labor-only contractor. Explain your answers. (4%)

B.

What are the grounds for validly terminating the services of an employee based on a just cause? (5%)

C.

Give the procedure to be observed for validly terminating the services of an employee based on a just
cause? (4%)

XI.
 A.

The modes of determining the exclusive bargaining agent of the employees in a business are: (a)
voluntary recognition; (b) certification election; and (c) consent election. Explain how they differ from
one another. (4%)

B.

Marcel was the Vice President for Finance and Administration and a member of the Board of Directors of
Mercedes Corporation. He brought a complaint for illegal suspension and illegal dismissal against
Mercedes Corporation, which moved to dismiss the complaint on the ground that the complaint pertained
to the jurisdiction of the RTC due to the controversy being intracorporate based on his positions in the
corporation. Marcel countered that he had only been removed as Vice President for Finance and
Administration, not as a member of the Board of Directors. He also argued that his position was not listed
as among the corporate offices in Mercedes Corporation's by-laws. Is the argument of Marcel correct?
Explain your answer. (2.5%)

C.

State the jurisdiction of the Voluntary Arbitrator, or Panel of Voluntary Arbitrators in labor disputes?
(4%)

XII.

A.

Juanito initiated a case for illegal dismissal against Mandarin Company. The Labor Arbiter decided in his
favor, and ordered his immediate reinstatement with full backwages and without loss of seniority and
other benefits. Mandarin Company did not like to allow him back in its premises to prevent him from
influencing his co-workers to move against the interest of the company; hence, it directed his payroll
reinstatement and paid his full backwages and other benefits even as it appealed to the NLRC.

A few months later, the NLRC reversed the ruling of the Labor Arbiter and declared that Juanito's
dismissal was valid. The reversal ultimately became final.

May Mandarin Company recover the backwages and other benefits paid to Juanito pursuant to the
decision of the Labor Arbiter in view of the reversal by the NLRC? Rule, with reasons. (2.5%)

B.

Gene is a married regular employee of Matibay Corporation. The employees and Matibay Corporation
had an existing CBA that provided for funeral or bereavement aid of ₱15,000.00 in case of the death of a
legal dependent of a regular employee. His widowed mother, who had been living with him and his
family for many years, died; hence, he claimed the funeral aid. Matibay Corporation denied the claim on
the basis that she had not been his legal dependent as the term legal dependent was defined by the Social
Security Law.

(a) Who may be the legal dependents of Gene under the Social Security Law? (2.5%)
 (b) Is Gene entitled to the funeral aid for the death of his widowed mother? Explain your answer.
(2%)

C.

Rosa was granted vacation leave by her employer to spend three weeks in Africa with her family. Prior to
her departure, the General Manager of the company requested her to visit the plant of a client of the
company in Zimbabwe in order to derive best manufacturing practices useful to the company. She
accepted the request because the errand would be important to the company and Zimbabwe was anyway
in her itinerary. It appears that she contracted a serious disease during the trip. Upon her return, she filed a
claim for compensation, insisting that she had contracted the disease while serving the interest of her
employer.

Under the Labor Code, the sickness or death of an employee, to be compensable, must have resulted from
an illness either definitely accepted as an occupational disease by the Employees' Compensation
Commission, or caused by employment subject to proof that the risk of contracting the same is increased
by working conditions.

Is the serious disease Rosa contracted during her trip to Africa compensable? Explain your answer.
(2.5%)

XIII.

A.

Given that the liability for an illegal strike is individual, not collective, state when the participating union
officers and members may be terminated from employment because of the illegal strike. Explain your
answer. (4%)

B.

A sympathetic strike is stoppage of work to make common cause with other strikers in another
establishment or business. Is the sympathetic strike valid? Explain your answer. (1%)

C.

Due to business recession, Ballistic Company retrenched a part of its workforce. Opposing the
retrenchment, some of the affected employees staged a strike. Eventually, the retrenchment was found to
be justified, and the strike was declared illegal; hence, the leaders of the strike, including the retrenched
employees, were declared to have lost their employment status.

Are the striking retrenched employees still entitled to separation pay under Sec. 298 (283) of the Labor
Code despite the illegality of their strike? Explain your answer. (2%)

XIV.

Pursuant to his power under Sec. 278(g) (263(g)) of the Labor Code, the Secretary of Labor assumed
jurisdiction over the 3-day old strike in Armor Steel Plates, Inc., one of the country's bigger
manufacturers of steel plates, and ordered all the striking employees to return to work. The striking
employees ignored the order to return to work.

(a) What conditions may justify the Secretary of Labor to assume jurisdiction? (2.5%)

(b) What are the consequences of the assumption of jurisdiction by the Secretary of Labor, and of
the disobedience to the return to work? Explain your answer. (2.5%)
 Civil Law

I.

State whether the following marital unions are valid, void, or voidable, and give the corresponding
justifications for your answer:

(a) Ador and Becky's marriage wherein Ador was afflicted with AIDS prior to the marriage. (2%)

(b) Carlos' marriage to Dina which took place after Dina had poisoned her previous husband Edu
in order to free herself from any impediment in order to live with Carlos. (2%)

(c) Eli and Fely's marriage solemnized seven years after the disappearance of Chona, Eli's
previous spouse, after the plane she had boarded crashed in the West Philippine Sea. (2%)

(d) David who married Lina immediately the day after obtaining a judicial decree annulling his
prior marriage to Elisa. (2%)

(e) Marriage of Zoren and Carmina who did not secure a marriage license prior to their wedding,
but lived together as husband and wife for 10 years without any legal impediment to marry. (2%)

II.

In 1960, Rigor and Mike occupied two separate but adjacent tracts of land in Mindoro. Rigor's tract was
classified as timber land while Mike's was classified as agricultural land. Each of them fenced and
cultivated his own tract continuously for 30 years. In 1991, the Government declared the land occupied by
Mike as alienable and disposable, and the one cultivated by Rigor as no longer intended for public use or
public service.

Rigor and Mike now come to you today for legal advice in asserting their right of ownership of their
respective lands based on their long possession and occupation since 1960.

(a) What are the legal consequences of the 1991 declarations of the Government respecting the
lands? Explain your answer. (2%)

(b) Given that, according to Section 48(b) of Commonwealth Act No. 141, in relation to Section
14(1) of Presidential Decree No. 1529, the open, continuous, exclusive and notorious possession
and occupation of alienable and disposable lands of the public domain as basis for judicial
confirmation of imperfect title must be from June 12, 1945, or earlier, may Mike nonetheless
validly base his assertion of the right of ownership on prescription under the Civil Code? Explain
your answer. (4%)

(c) Does Rigor have legal basis for his application for judicial confirmation of imperfect title
based on prescription as defined by the Civil Code given that, like Mike, his open, continuous,
exclusive and notorious possession and occupation was not since June 12, 1945, or earlier, and
his tract of land was timber land until the declaration in 1991? Explain your answer. (4%)

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

When Josef sought the release of the amount deposited, NHA argued that Josef should only be entitled to
P50 million.

Who owns the interest earned? (3%)

IV.

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

(b) Distinguish commodatum from mutuum. (3%)

V.

Jacob has owned a farm land in Ramos, Tarlac. In 2012, Liz surreptitiously entered and cultivated the
property. In 2014, Jacob discovered Liz's presence in and cultivation of the property. Due to his being
busy attending to his business in Cebu, he tolerated Liz's cultivation of the property. Subsequently, in
December 2016, Jacob wanted to regain possession of the property; hence, he sent a letter to Liz
demanding that she vacate the property. Liz did not vacate despite the demand.

Jacob comes to enlist your legal assistance to bring an action against Liz to recover the possession of the
property.

What remedies are available to Jacob to recover possession of his property under the circumstances?
Explain your answer. (4%)

VI.

Tyler owns a lot that is enclosed by the lots of Riley to the North and East, of Dylan to the South, and of
Reece to the West. The current route to the public highway is a kilometer's walk through the northern lot
of Riley, but the route is a rough road that gets muddy during the rainy season, and is inconvenient
because it is only 2.5 meters wide. Tyler's nearest access to the public highway would be through the
southern lot of Dylan.

May Dylan be legally required to afford to Tyler a right of way through his property? Explain your
answer. (4%)

VII.

Alice agreed to sell a parcel of land with an area of 500 square meters registered in her name and covered
by TCT No. 12345 in favor of Bernadette for the amount of ₱900,000.00. Their agreement dated October
15, 2015 reads as follows:
I, Bernadette, agree to buy the lot owned by Alice covered by TCT No. 12345 for the amount of
₱900,000.00 subject to the following schedule of payment:

Upon signing of agreement – ₱100,000.00

November 15, 2015 – ₱200,000.00

December 15, 2015 - ₱200,000.00

January 15, 2016 - ₱200,000.00

February 15, 2016 - ₱200,000.00

Title to the property shall be transferred upon full payment of ₱900,000.00 on or before February 15,
2016.

After making the initial payment of ₱100,000.00 on October 15, 2015, and the second instalment of
₱200,000.00 on November 15, 2015, Bernadette defaulted despite repeated demands from Alice.

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

Bernadette sued Alice and Chona for specific performance, annulment of sale and cancellation of TCT
No. 67891. Bernadette insisted that she had entered into a contract of sale with Alice; and that because
Alice had engaged in double sale, TCT No. 67891 should be cancelled and another title be issued in
Bernadette's favor.

(a) Did Alice and Bernadette enter into a contract of sale of the lot covered by TCT No. 12345?
Explain your answer. (4%)

(b)Did Alice engage in double sale of the property? Explain your answer. (4%)

VIII.

Pedro had worked for 15 years in Saudi Arabia when he finally decided to engage in farming in his home
province where his 10- hectare farmland valued at ₱2,000,000.00 was located. He had already
₱3,000,000.00 savings from his long stint in Saudi Arabia.

Eagerly awaiting Pedro's arrival at the NAIA were his aging parents Modesto and Jacinta, his common-
law spouse Veneranda, their three children, and Alex, his child by Carol, his departed legal wife. Sadly
for all of them, Pedro suffered a stroke because of his overexcitement just as the plane was about to land,
and died without seeing any of them.

The farmland and the savings were all the properties he left.
 (a) State who are Pedro's legal heirs, and the shares of each legal heir to the estate? Explain your
answer. (4%)

(b) Assuming that Pedro's will is discovered soon after his funeral. In the will, he disposed of half
of his estate in favor of Veneranda, and the other half in favor of his children and his parents in
equal shares. Assuming also that the will is admitted to probate by the proper court. Are the
testamentary dispositions valid and effective under the law on succession? Explain your answer.
(4%)

IX.

Danny and Elsa were married in 2002. In 2012, Elsa left the conjugal home and her two minor children
with Danny to live with her paramour. In 2015, Danny sold without Elsa's consent a parcel of land
registered in his name that he had purchased prior to the marriage. Danny used the proceeds of the sale to
pay for his children's tuition fees.

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

X.

Briefly explain whether the following contracts are valid, rescissible, unenforceable, or void:

(a) A contract of sale between Lana and Andy wherein 16-year old Lana agreed to sell her grand
piano for ₱5,000.-00. (2%)

(b) A contract of lease of the Philippine Sea entered by and between Mitoy and Elsa. (2%)

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

(d) A sale entered by Barri and Garri, both minors, which their parents later ratified. (2%)

(e) Jenny's sale of her car to Celestine in order to evade attachment by Jenny's creditors. (2%)

XI.

Zeny and Nolan were best friends for a long time already. Zeny borrowed ₱10,000.00 from Nolan,
evidenced by a promissory note whereby Zeny promised to pay the loan "once his means permit." Two
months later, they had a quarrel that broke their long-standing friendship.

Nolan seeks your advice on how to collect from Zeny despite the tenor of the promissory note. What will
your advice be? Explain your answer. (3%)

XII.

Krystal owns a parcel of land covered by TCT No. 12345 in Angeles City. Due to severe financial
constraints, Krystal was forced to sell the property to RBP Corporation, a foreign corporation based in
South Korea. Subsequently, RBP Corporation sold the property to Gloria, one of its most valued clients.
Wanting her property back, Krystal, learning of the transfer of the property from RBP Corporation to
Gloria, sued both of them in the Regional Trial Court (RTC) for annulment of sale and for reconveyance.
She alleged that the sale by RBP Corporation to Gloria was void because RBP Corporation was a foreign
corporation prohibited by the Constitution from acquiring and owning lands in the Philippines.

Will Krystal's suit for annulment of sale and reconveyance prosper? Explain your answer. (4%)

XIII.

TRUE or FALSE - Explain your answers.

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

(b) A lessee cannot bring a case for quieting of title respecting the property that he leases. (2%)

(c) Only the city or municipal mayor can file a civil action to abate a public nuisance. (2%)

(d) Possession of a movable property is lost when the location of the said movable is unknown to
the owner. (2%)

(e) Continuous non-apparent easements can be acquired either through title or by prescription.
(2%)

XIV.

Plutarco owned land that borders on a river. After several years, the action of the water of the river caused
the deposit of soil, and increased the area of Plutarco's property by 200 square meters.

(a) If Plutarco wants to own the increase in area, what will be his legal basis for doing so?
Explain your answer. (2%)

(b) On the other hand, if the river dries up, may Plutarco validly claim a right of ownership of the
dried-up river bed? Explain your answer. (2%)

XV.

Kevin signed a loan agreement with ABC Bank. To secure payment, Kevin requested his girlfriend
Rosella to execute a document entitled "Continuing Guaranty Agreement" whereby she expressly agreed
to be solidarily liable for the obligation of Kevin.

Can ABC Bank proceed directly against Rosella upon Kevin's default even without proceeding against
Kevin first? Explain your answer. (3%)

XVI.

Jovencio operated a school bus to ferry his two sons and five of their schoolmates from their houses to
their school, and back. The parents of the five schoolmates paid for the service. One morning, Porfirio,
the driver, took a short cut on the way to school because he was running late, and drove across an
unmanned railway crossing. At the time, Porfirio was wearing earphones because he loved to hear loud
music while driving. As he crossed the railway tracks, a speeding PNR train loudly blared its horn to
warn Porfirio, but the latter did not hear the horn because of the loud music. The train inevitably rammed
into the school bus. The strong impact of the collision between the school bus and the train resulted in the
instant death of one of the classmates of Jovencio's younger son.

The parents of the fatality sued Jovencio for damages based on culpa contractual alleging that Jovencio
was a common carrier; Porfirio for being negligent; and the PNR for damages based on culpa aquiliana.

Jovencio denied being a common carrier. He insisted that he had exercised the diligence of a good father
of a family in supervising Porfirio, claiming that the latter had had no history of negligence or
recklessness before the fatal accident.

(a) Did his operation of the school bus service for a limited clientele render Jovencio a common
carrier? Explain your answer. (3%)

(b) In accordance with your answer to the preceding question, state the degree of diligence to be
observed by Jovencio, and the consequences thereof. Explain your answer. (3%)

(c) Assuming that the fatality was a minor of only 15 years of age who had no earning capacity at
the time of his death because he was still a student in high school, and the trial court is minded to
award indemnity, what may possibly be the legal and factual justifications for the award of loss of
earning capacity? Explain your answer. (4%)
 Taxation Law

I.

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

SMZ, Inc. files an application with the Bureau of Internal Revenue (BIR) for the VAT zero-rating of its
sale of services to HP International. However, the BIR denies SMZ, lnc.'s application on the ground that
HP International already enjoys income tax holiday.

Is the BIR correct in denying SMZ, lnc.'s application? Explain your answer. (6%)

II.

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

On June 25, 2015, Wreck Corporation filed an administrative claim for refund or issuance of tax credit
certificate amounting to the excise taxes it had paid on the importation of 225 million liters of Jet A-1
aviation fuel.

If you were the Commissioner of Internal Revenue, will you grant Wreck Corporation's administrative
claim for refund or issuance of tax credit certificate? Explain your answer. (6%)

III.

Vanderful, lnc.'s income tax return for taxable year 2015 showed an overpayment due to excess creditable
withholding taxes in the amount of ₱750,000.00. The company opted to carry over the excess income tax
credits as tax credit against its quarterly income tax liabilities for the next succeeding years. For taxable
year 2016, the company's income tax return showed an overpayment due to excess creditable withholding
taxes in the amount of ₱1,100,000.00, which included the carry-over from year 2015 in the amount of
₱750,000.00 because its operations resulted in a net loss; hence, there was no application for any tax
liability. This time, the company opted and marked the box "To be refunded' in respect of the total
amount of ₱1,100,000.00.

Vanderful, Inc. now files in the BIR a claim for refund of unutilized overpayments of ₱1,100,00.00. Is the
claim meritorious? (4%)

IV.
On the basis of a warrant of seizure and detention issued by the Collector of Customs for the purpose of
enforcing the Tariff and Customs Code, assorted brands of liquor and cigarettes said to have been illegally
imported into the Philippines were seized from a store operating in a Freeport zone. The store owner
moved for the quashal of the warrant on the ground that the Collector of Customs had no jurisdiction to
enforce it within the Freeport zone.

Should the motion to quash be granted? (3%)

V.

On March 30, 2016, XL Co. filed an administrative claim for refund of unutilized input VAT for taxable
year 2014, together with supporting documents. XL Co. claimed that its sale of generated power and
delivery of electric capacity and energy was VAT zero-rated. Due to the inaction of the Commissioner of
Internal Revenue (CIR), XL Co. filed with the Court of Tax Appeals (CTA) the following judicial claims
for refund:

Period Covered Date Filed

1st Quarter of 2014 March 31, 2016

2nd Quarter of 2014 June 30, 2016

3rd and 4th Quarter of 2014 August 12, 2016

Is XL Co.'s claim for VAT refund timely filed? Explain your answer. (5%)

VI.

Heeding the pronouncement of the President that the worsening traffic condition in the metropolis was a
sign of economic progress, the Congress enacted Republic Act No. 10701 (RA 10701), also known as An
Act Imposing a Transport Tax on the Purchase of Private Vehicles.

Under RA 10701, buyers of private vehicles are required to pay a transport tax equivalent to 5°/o of the
total purchase price per vehicle purchased. RA 10701 provides that the Land Transportation Office (LTO)
shall not accept for registration any new vehicles without proof of payment of the 5% transport tax. RA
10701 further provides that existing owners of private vehicles shall be required to pay a tax equivalent to
5% of the current fair market value of every vehicle registered with the LTO. However, RA 10701
exempts owners of public utility vehicles and the Government from the coverage of the 5% transport tax.

A group of private vehicle owners sue on the ground that the law is unconstitutional for contravening
the Equal Protection Clause of the Constitution.

Rule on the constitutionality and validity of RA 10701. (5%)

VII.

Calvin Dela Pisa was a Permits and Licensing Officer (rank-and-file) of Sta. Portia Realty Corporation
(SPRC). He invited the Regional Director of the Housing and Land Use Regulatory Board (HLURB) to
lunch at the Sulo Hotel in Quezon City to discuss the approval of SPRC's application for a development
permit in connection with its subdivision development project in Pasig City. At breakfast the following
day, Calvin met a prospective client interested to enter into a joint venture with SPRC for the construction
of a residential condominium unit in Cainta, Rizal.

Calvin incurred expenses for the lunch and breakfast meetings he had with the Regional Director of
HLURB and the prospective client, respectively. The expenses were duly supported by official receipts
issued in his name. At month's end, he requested the reimbursement of his expenses, and SPRC granted
his request.

(a) Can SPRC claim an allowable deduction for the expenses incurred by Calvin? Explain your
answer. (2.5%)

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

VIII.

On April 30, 2015, Daryl resigned as the production manager of 52nd Avenue, a television studio owned
by SSS Entertainment Corporation. 52nd Avenue issued to her a Certificate of Withholding Tax on
Compensation (BIR Form No. 2316), which showed that the tax withheld from her compensation was
equal to her income tax due for the period from January 2015 to April 30, 2015.

A month after her resignation, Daryl put up her own studio and started producing short films. She was
able to earn a meager income from her short films but did not keep record of her production expenses.

Is Daryl qualified for substituted filing for taxable year 2015? Explain your answer. (3%)

IX.

Upon his retirement, Alfredo transferred his savings derived from his salary as a marketing assistant to a
time deposit with AAB Bank. The bank regularly deducted 20% final withholding tax on the interest
income from the time deposit.

Alfredo contends that the 20% final tax on the interest income constituted double taxation because his
salary had been already subjected to withholding tax.

Is Alfredo's contention correct? Explain your answer. (3%)

X.

On January 27, 2017, Ramon, the comptroller of Vantage Point, Inc., executed a document
entitled Waiver of the Statute of Limitations in connection with the BIR's investigation of the tax
liabilities of the company for the year 2012. However, the Board of Directors of Vantage Point, Inc. did
not adopt a board resolution authorizing Ramon to execute the waiver.

On October 14, 2017, Vantage Point, Inc. received a preliminary assessment notice from the BIR
indicating its deficiency withholding taxes for the year 2012. Vantage Point, Inc. filed its protest. On
October 30, 2017, the BIR issued a formal letter of demand and final assessment notice. Vantage Point,
Inc. again filed a protest. The Commissioner of Internal Revenue denied the protests and directed the
collection of the assessed deficiency taxes.

Accordingly, Vantage Point, Inc. filed a petition for review in the CTA to seek the cancellation and
withdrawal of the assessment on the ground of prescription.

(a) What constitutes a valid waiver of the statute of limitations for the assessment and collection
of taxes? Explain your answer. (3%)

(b) Has the right of the Government to assess and collect deficiency taxes from Vantage Point,
Inc. for the year 2012 prescribed? Explain your answer. (3%)

XI.

The Board of Directors of Sumo Corporation, a company primarily engaged in the business of marketing
and distributing pest control products, approved the partial cessation of its commercial operations,
resulting in the separation of 32 regular employees. Only half of the affected employees were notified of
the board resolution.

Rule on the taxability of the separation pay and indemnity that will be received by the affected employees
as the result of their separation from service. Explain your answer. (3%)

XII.

On September 17, 2015, Data Realty, Inc., a real-estate corporation duly organized and existing under
Philippine law, sold to Jenny Vera a condominium unit at Freedom Residences in Malabon City with an
area of 32.31 square meters for a contract price of ₱4,213,000.00. The condominium unit had a zonal
value amounting to ₱2,877,000.00 and fair market value amounting to ₱550,000.00.

(a) Is the transaction subject to value-added tax and documentary stamp tax? Explain your
answer. (3%)

(b) Would your answer be the same if the property was sold by a bank in a foreclosure sale?
Explain your answer. (3%)

XIII.

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

Is BATAS Law liable to pay the assessed percentage business tax? Explain your answer. (3%)

XIV.

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

After hearing, the CTA Division issued a resolution granting the motion to suspend but required
Globesmart Services, Inc. to post a surety bond equivalent to the deficiency assessment within 15 days
from notice of the resolution. Globesmart Services, Inc. moved for the partial reconsideration of the
resolution and for the reduction of the bond to an amount it could obtain. The CTA Division issued
another resolution reducing the amount of the surety bond to Jl24 million. The latter amount was still
more than the net worth of Globesmart Services, Inc. as reported in its audited financial statements.

(a) May the collection of taxes be suspended? Explain your answer. (3%)

(b) Is the CTA Division justified in requiring Globesmart Services, Inc. to post a surety bond as a
condition for the suspension of the deficiency tax collection? Explain your answer. (3%)

XV.

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

(a) Are the medical expenses, personal loans and mortgages incurred by Casimira deductible from
her gross estate? Explain your answer.(5%)

(b) May the heirs of Casimira file the estate tax return and pay the corresponding estate tax
beyond December 19, 2017 without incurring interest and surcharge? Explain your answer.(3%)

XVI.

The BIR assessed the Babuyan Water District (BWD) with deficiency income taxes amounting to P8.5
million, inclusive of interest and surcharge. The BWD disputed the assessment, and argued that it was a
wholly-owned government entity performing essential government functions. However, the BIR denied
the protest.

The BWD filed a petition for arbitration in the Office of the Secretary of Justice pursuant to Sections 66
to 71, Chapter 14, Book IV of the Administrative Code of 1987 to assail the denial of its protest, and to
seek the proper interpretation of Section 32(8)(7)(b) of the Tax Code that excluded from gross income the
income derived by the Government or its political subdivisions. The Secretary of Justice rendered a
decision declaring the BWD exempt from the payment of income tax.

The Commissioner of Internal Revenue appealed to the CTA on the sole ground that the Secretary of
Justice had no jurisdiction to review the assessment of the BIR.

Is the appeal meritorious? Explain your answer. (4%)

XVII.
San Juan University is a non-stock, non-profit educational institution. It owns a piece of land in Caloocan
City on which its three 2-storey school buildings stood. Two of the buildings are devoted to classrooms,
laboratories, a canteen, a bookstore and administrative offices. The third building is reserved as dormitory
for student athletes who are granted scholarships for a given academic year.

In 2017, San Juan University earned income from tuition fees and from leasing a portion of its premises
to various concessionaires of food, books, and school supplies.

(a) Can the City Treasurer of Caloocan City collect real property taxes on the land and building of
San Juan University? Explain your answer. (5%)

(b) Is the income earned by San Juan University for the year 2017 subject to income tax? Explain
your answer. (5%)

XVIII.

(a) Differentiate outright smuggling from technical smuggling. (3%)

(b)Distinguish compromise from abatement of taxes. (3%)

XIX.

CMI School, Inc., a non-stock, non-profit corporation, donated its three parcels of idle land situated in the
Municipality of Cuyapo, Nueva Ecija to SLC University, another non-stock, non-profit corporation, in
recognition of the latter's contribution to and participation in the spiritual and educational development of
the former.

(a) Is CMI School, Inc. liable for the payment of donor's tax? Explain your answer. (2.5%)

(b) If SLC University later sells the three parcels of idle land to Puregold Supermarket, Inc., a
stock corporation, will SLC University be liable for capital gains tax? Explain your answer. (3%)

(c) If SLC University donates the three parcels of idle land in favor of the Municipality of
Cuyapo, Nueva Ecija, will SLC University be liable for donor's tax? Explain your answer. (2.5%)
 Mercantile Law

I.

A.

Absolute Timber Co. (ATC) has been engaged in the logging business in lsabela. To secure one of its
shipments of logs to be transported by Andok Shipping Co., ATC purchased a marine policy with an "all
risks" provision. Because of a strong typhoon then hitting Northern Luzon, the vessel sank and the
shipment of logs was totally lost. ATC filed its claim, but the insurer denied the claim on several grounds,
namely: (1) the vessel had not been seaworthy; (2) the vessel's crew had lacked sufficient training; (3) the
improper loading of the logs on only one side of the vessel had led to the tilting of the ship to that side
during the stormy voyage; and (4) the extremely bad weather had been a fortuitous event.

ATC now seeks your legal advice to know if its claim was sustainable. What is your advice? Explain your
answer. (3%)

B.

The newly restored Ford Mustang muscle car was just released from the car restoration shop to its owner,
Seth, an avid sportsman. Given his passion for sailing, he needed to go to a round-the-world voyage with
his crew on his brand-new 180-meter yacht. Hearing about his coming voyage, Sean, his bosom friend,
asked Seth if he could borrow the car for his next roadshow. Sean, who had been in the business of
holding motor shows and promotions, proposed to display the restored car of Seth in major cities of the
country. Seth agreed and lent the Ford Mustang to Sean. Seth further expressly allowed Sean to use the
car even for his own purposes on special occasions during his absence from the country. Seth and Sean
then went together to Bayad Agad Insurance Co. (BAIC) to get separate policies for the car in their
respective names.

SAIC consults you as its lawyer on whether separate policies could be issued to Seth and Sean in respect
of the same car.

(a) What is insurable interest? (2%)

(b) Do Seth and Sean have separate insurable interests? Explain Briefly your answer(3%)

II.

A.

Morgan, a lawyer, received a lot of diving and other water sports equipment as payment of his
professional fees by Dennis, his client in a child custody case. Dennis owned a diving and water sports
dealership in Anilao, Batangas. Morgan decided to name Dennis as entrustee because he did not have any
experience in selling such specialized sports equipment. They executed a trust receipt agreement, with
Morgan as entruster and Dennis as entrustee.

Before the sports equipment could be sold, a strong typhoon hit Batangas. Anilao and other parts of
Batangas experienced power outage. Taking advantage of the total darkness, unidentified thieves
destroyed the padlocks of the establishment of Dennis, and carted off the equipment inside.
Morgan demanded that Dennis pay the value of the stolen equipment, but the latter refused on the ground
that he also had suffered from the effects of the typhoon, and insisted that the cause of the loss was a
fortuitous event or force majeure.

Is the justification of Dennis warranted? Explain your answer. (4%)

B.

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

On due dates of the warehouse receipts, Cyrus, Magnus and Charles demanded that Safe surrender the
goods to them. Safe refused because its warehouseman's claim must first be paid. Cyrus, Magnus and
Charles refused to pay, and insisted that such claim was the liability of Peter, Paul and Mary.

(a) What is a warehouseman's claim? (3%)

(b) Is Safe's refusal to surrender the goods to Cyrus, Magnus and Charles legally justified?
Explain your answer. (3%)

III.

A.

Data Realty, Inc. (DRI) was engaged in realty development. The family of Matteo owned 100°/o of the
capital stock of ORI. Matteo was also the President and Chairman of the Board of Directors. Other
members of Matteo's family held the major positions in ORI. Because of a nasty takeover fight with D&E
Realty Co., Inc. (D&E), another realty developer, for the control of a smaller realty company with vast
landholdings, ORI and D&E engaged in an expensive litigation that eventually led to a money judgment
being rendered in favor of D&E.

Meantime, DRI, facing inability to pay its liabilities as they fall due but still holding substantial assets,
filed a petition for voluntary rehabilitation. Trying to beat the consequences of rehabilitation proceedings,
D&E moved in the trial court for the issuance of a writ of execution. The trial court also happened to be
the rehabilitation court. The writ of execution was issued.

Serving the writ of execution, Merto, the court sheriff who had just passed his Credit Transactions subject
in law school, garnished Matteo's bank accounts, and levied his real properties, including his house and
lot in Makati.

Are the garnishment and levy of Matteo's assets lawful and proper? Explain your answer. (4%)

B.

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

Left out and ignored by the management, Sid became a fiscalizer of sorts, questioning during the Board
meetings the direction being pursued by Excellent's officers.

Ultimately, Sid demanded the inspection of the books and other corporate records of Excellent. The
management refused to comply, saying that his right as a minority stockholder has been much reduced.

State under what conditions may Sid properly assert his right to inspect the books and other corporate
records of Excellent. Explain your answer. (3%)

IV.

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

Citing the commencement order, Procopio and the other officers facing the criminal charges moved to
suspend the proceedings in the estafa cases.

(a) What is a commencement order, and what is the effect of its issuance? Explain your answer.
(4%)

(b) Suppose you are the trial judge, will you grant the motion to suspend of Procopio, et
al.? Explain your answer. (4%)

V.

A.

Under the Nell Doctrine, so called because it was first pronounced by the Supreme Court in the 1965
ruling in Nell v. Pacific Farms, Inc. (15 SCRA 415), the general rule is that where one corporation sells or
otherwise transfers all of its assets to another corporation, the latter is not liable for the debts and
liabilities of the transferor.

State the exceptions to the Nell Doctrine. (4%)

B.

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

Erica seeks your legal advice regarding her right as a stockholder opposed to the corporate action. Explain
your answer. (4%)

C.

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

When the loan application was about to be approved and the proceeds released, BG Company, a keen
competitor of Othello in the fishing industry, wrote to the Board of Directors and the management of
Lucky questioning the loan on the ground of conflict of interest due to Samito and Othello being brothers,
citing the legal restriction against bank exposure of directors, officers, stockholders or their related
interests (DOSRI).

(a) What are the three restrictions imposed by law on DOSRI transactions? (4%)

(b) Is BG Company's opposition based on conflict of interest and violation of the restrictions on
DOSRI transactions legally and factually correct? Explain your answer. (4%)

VI.

A.

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

Nonetheless, Hortencio, while generally in the black, now faces a situation where he is unable to pay his
liabilities as they fall due in the ordinary course of business. What will you advise him to do to resolve his
dire financial condition? Explain your answer. (5%)

B.

Wyatt, an internet entrepreneur, engaged in a sideline business of creating computer programs for selected
clients on a per project basis and for servicing basic computer problems of his friends and family
members. His main job was being an IT consultant at Futurex Co., a local computer company.
Because of his ill-advised investments in the stock market and the fraud perpetrated against him by his
trusted confidante, Wyatt was already drowning in debt, that is, he had far more liabilities than his entire
assets.

What legal recourse remained available to Wyatt? Explain your answer. (5%)

VII.

A.

Virtucio was a composer of llocano songs who has been quite popular in the llocos Region. Pascuala is a
professor of music in a local university with special focus on indigenous music. When she heard the
musical works of Virtucio, she purchased a CD of his works. She copied the CD and sent the second copy
to her Music instructions for the class to listen to the CD and analyze the works of Virtucio.

Did Pascuala thereby infringe Virtucio's copyright? Explain your answer. (4%)

B.

Super Biology Corporation (Super Biology) invented and patented a miracle medicine for the cure of
AIDS. Being the sole manufacturer, Super Biology sold the medicine at an exorbitant price. Because of
the sudden prevalence of AIDS cases in Metro Manila and other urban areas, the Department of Health
(DOH) asked Super Biology for a license to produce and sell the AIDS medicine to the public at a
substantially lower price. Super Biology, citing the huge costs and expenses incurred for research and
development, refused.

Assuming you are asked your opinion as the legal consultant of the DOH, discuss how you will resolve
the matter. (4%)

VIII.

A.

Flora, a frequent traveller, found a purse concealed between the cushions of a large sofa inside the VIP
lounge in NAIA while she was waiting for her flight to be called. Inside the purse was a very valuable
diamond-studded necklace. She decided not to turn over the purse to the airport management, and instead
to keep it. On her return from her travels, she had a dependable jeweller appraise the necklace, and the
latter told her that the necklace was easily worth at least ₱5,000,000.00 in the open market. To test the
appraisal, she pawned the necklace for ₱2,000,000.00. She then deposited the entire amount in her
checking account with Metro Bank. Promptly, Metro Bank reported the transaction to the Anti-Money
Laundering Council (AMLC).

Given that her appropriation of the necklace was theft, may Flora be successfully prosecuted for money
laundering? Explain briefly your answer. (4%)

B.

Prosperous Bank is a domestic bank with head office in Makati. It handles the banking requirements of
thousands of clients.
The AMLC initiated a discreet investigation of the financial transactions of Lorenzo, a suspected drug
trafficker based in Naga City. The intelligence group of the AMLC, in coordination with the counterpart
group from the PDEA and the NBI, gathered ample evidence establishing Lorenzo's unlawful drug
activities. The AMLC had probable cause that his deposits and investments in various banks, including
Prosperous Bank, were related to money laundering.

Accordingly, the AMLC now transmits to Prosperous Bank a formal demand to allow its agents to
examine the banking transactions of Lorenzo, but Prosperous Bank refuses the demand.

Is Prosperous Bank's refusal justified? Explain your answer. (4%)

IX.

A.

Alfred issued a check for ₱1,000.00 to Benjamin, his friend, as payment for an electronic gadget. The
check was drawn against Alfred's account with Good Bank. Benjamin then indorsed the check specially
in favor of Cesar. However, Cesar misplaced the check. Dexter, a dormmate of Cesar, found the check,
altered its amount to ₱91,000.00, and forged Cesar's indorsement by way of a blank indorsement in favor
of Felix, a known jeweler. Felix then caused the deposit of the check in his account with Solar Bank. As
collecting bank, Solar Bank stamped "all previous indorsements guaranteed" on the check. Seeing such
stamp of the collecting bank, Good Bank paid the amount of ₱91,000.00 on the check.

May Good Bank claim reimbursement from Alfred? Explain your answer. (4%)

B.

In 2006, Donald, an American temporarily residing in Cebu City, issued to Rhodora a check for
$50,000.00 drawn against Wells Fargo Bank with offices in San Francisco, California. Rhodora
negotiated the check and delivered it to Yaasmin, a Filipina socialite who frequently travelled locally and
internationally. Because of her frequent travels, Yaasmin misplaced the check. It was only 11 years later
on, in 2017, when she found the check inside a diary kept in her vault in her Hollywood, California house.

Discuss and explain the rights of Yaasmin on the check. (4%)

X.

Wisconsin Transportation Co., Inc. (WTC) owned and operated an inter-island de luxe bus service plying
the Manila-Batangas-Mindoro route. Three friends, namely: Aurelio, Jerome and Florencio rode on the
same WTC bus from Manila bound for Mindoro. Aurelio purchased a ticket for himself. Jerome, being a
boyhood friend of the bus driver, was allowed a free ride by agreeing to sit during the trip on a stool
placed in the aisle. Florencio, already penniless after spending all of his money on beer the night before,
just stole a ride in the bus by hiding in the on-board toilet of the bus.

During the trip, the bus collided with another bus coming from the opposite direction. The three friends
all suffered serious physical injuries.

What are WTC's liabilities, if any, in favor of Aurelio, Jerome and Florencio? Explain your answer. (4%)
 XI.

TRUE or FALSE - Explain briefly your answer.

(a) A conviction under the Trust Receipts Law shall bar a prosecution for estafa under the Revised
Penal Code. (2%)

(b) The term capital in relation to public utilities under Sec. 11, Art. XII of the 1987 Constitution
refers to the total outstanding capital stock comprising both common and non-voting preferred
shares. (2%)

(c) Forgery is a real defense but may only be raised against a holder not in due course. (2%)

(d) News reports are not copyrightable. (2%)

(e) The law on life insurance prohibits double insurance. (2%)

XII.

Onassis Shipping, Inc. (Onassis) operated passenger vessels and cargo trucks, and offered its services to
the general public. In line with its vision and mission to protect the environment, Go-Green Asia (Go-
Green), an NGO affiliated with Greenpeace, entered into a contract with Onassis whereby Go-Green
would operate with its own crew the MN Dolphin, an ocean-going passenger vessel of Onassis.

While on its way to Palawan carrying Go-Green's invited guests who were international and local
observers desirous of checking certain environmental concerns in the area, the MN Dolphin encountered
high waves and strong winds caused by a typhoon in the West Philippine Sea. The rough seas led to
serious physical injuries to some of the guests.

Discuss the liabilities of Onassis and Go-Green to the passengers of the M/V Dolphin. Explain briefly
your answer. (3%)
 Criminal Law

I.

Tonito, an 8-year-old boy, was watching a free concert at the Luneta Park with his father Tony. The child
stood on a chair to be able to see the performers on the stage. Juanito, a 10-year-old boy, who was also
watching the concert, could not see much of the performance on the stage because Tonito was blocking
his line of sight by standing on the chair. Using his elbow, Juanito strongly shoved Tonito to get a good
view of the stage. The shove caused Tonito to fall to the ground. Seeing this, Tony struck Juanito on the
head with his hand and caused the boy to fall and to hit his head on a chair. Tony also wanted to strangle
Juanito but the latter's aunt prevented him from doing so. Juanito sustained a lacerated wound on the head
that required medical attendance for 10 days.

Tony was charged with child abuse in violation of Sec. 10(a), in relation to Sec. 3(b)(2), of R.A. No.
7610 (Child Abuse Law) for allegedly doing an "act by deeds or words which debases, degrades or
demeans the intrinsic worth and dignity of a child as a human being." In his defense, Tony contended that
he had no intention to maltreat Juanito, much less to degrade his intrinsic worth and dignity as a human
being.

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

(b) Was Tony criminally liable for child abuse under R.A. No. 7610? Explain your answer. (3%)

II.

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

Outside the house, the now-clothed Aliswan spotted Allesso, Amethyst's former suitor. Knowing how
Allesso had aggressively pursued Amethyst, Aliswan fatally stabbed Allesso. Aliswan immediately went
into hiding afterwards.

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

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

(c) After receiving medical attendance for 10 days, Alisto consulted you about filing the proper
criminal complaint against Amante. What crimes, if any, will you charge Amante with? Explain
your answer. (3%)

(d) Answering the criminal complaint filed by Alisto, Amante contended that he had incurred no
criminal liability for lack of criminal intent on his part, his intended victim being Aliswan, not
Alisto. What is this defense of Amante, and explain if the same will prosper? (3%)

III.

Overjoyed by the award to his firm of a multi-billion government contract for the development of an
economic and tourism hub in the Province of Blank, Mr. Gangnam allotted the amount of P100 Million to
serve as gifts for certain persons instrumental in his firm's winning the award. He gave 50% of that
amount to Governor Datu, the official who had signed the contract with the proper authorization from the
Sangguniang Panlalawigan; 25% to Bokal Diva, the Sangguniang Panlalawigan member who had lobbied
for the award of the project in the Sangguniang Panlalawigan; and 25% to Mayor Dolor of the
Municipality where the project would be implemented. Governor Datu received his share through his
wife, Provincial First Lady Dee, who then deposited the amount in her personal bank account.

Previously, upon facilitation by Bokal Diva, Mr. Gangnam concluded an agreement with Mayor Dolor for
the construction of the Blank Sports Arena worth ₱800 Million. The project was highly overpriced
because it could be undertaken and completed for not more than ₱400 Million. For this project, Mayor
Dolor received from Mr. Gangnam a gift of ₱10 Million, while Bokal Diva got ₱25 Million.

In both instances, Bokal Diva had her monetary gifts deposited in the name of her secretary, Terry, who
personally maintained a bank account for Bokal Diva's share in government projects.

(a) May each of the above-named individuals be held liable for plunder? Explain your answer.
(4%)

(b) Define wheel conspiracy and chain conspiracy. Is either or both kinds existent herein?
Explain your answer. (4%)

(c) What provisions of R.A. No. 3019 (Anti-Graft & Corrupt Practices Act), if any, were violated
by any of the above-named individuals, specifying the persons liable therefor? Explain your
answer. (4%)

(d) What crimes under the Revised Penal Code, if any, were committed, specifying the persons
liable therefor? Explain your answer. (4%)

IV

Maita was the object of Solito's avid sexual desires. Solito had attempted many times to entice Maita to a
date in bed with him but Maita had consistently refused. Fed up with all her rejections, Solito abducted
Maita around 7 p.m. one night. With his cohorts, Solito forced Maita into a Toyota lnnova and drove off
with her to a green-painted house situated in a desolate part of the town. There, Solito succeeded in
having carnal knowledge of Maita against her will.

Meanwhile, the police authorities were tipped off that at 11:30 p.m. on that same night Solito would be
selling marijuana outside the green-painted house. Acting on the tip, the PNP station of the town formed
a buy-bust team with PO2 Masahol being designated the poseur buyer. During the buy-bust operation,
Solito opened the trunk of the Toyota lnnova to retrieve the bag of marijuana to be sold to PO2 Masahol.
To cut the laces that he had tied the bag with, Solito took out a Swiss knife, but his doing so prompted
PO2 Masahol to effect his immediate arrest out of fear that he would attack him with the knife. PO2
Masahol then confiscated the bag of marijuana as well as the Toyota lnnova.

(a) Two informations were filed against Solito in the RTC - one for forcible abduction with
rape, raffled to Branch 8 of the RTC; the other for illegal sale of drugs, assigned to Branch 29 of
the RTC. Was Solito charged with the proper offenses based on the circumstances? Explain your
answer. (5%)

(b) While the Prosecution was presenting its evidence in Branch 29, Branch 8 convicted Solito.
Immediately after the judgment of conviction was promulgated, Solito filed in both Branches a
motion for the release of the Toyota lnnova. He argued and proved that he had only borrowed the
vehicle from his brother, the registered owner. Branch 8 granted the motion but Branch 29 denied
it. Were the two courts correct in their rulings? Explain your answer. (5%)

To aid in the rebuilding and revival of Tacloban City and the surrounding areas that had been devastated
by the strongest typhoon. to hit the country in decades, the Government and other sectors, including
NGOs, banded together in the effort. Among the NGOs was Ba..,gon Waray, Inc. (BaWI), headed by Mr.
Jose Ma. Gulang, its President and CEO. BaWI operated mainly as a social amelioration and charitable
institution. For its activities in the typhoon-stricken parts of Leyte Province, BaWI received funds from
all sources, local and foreign, including substantial amounts from legislators, local government officials
and the EU. After several months, complaints were heard about the very slow distribution of relief goods
and needed social services by BaWI.

The COA reported the results of its audit to the effect that at least P10 Million worth of funds coming
from public sources channeled to BaWI were not yet properly accounted for. The COA demanded
reimbursement but BaWI did not respond.

Hence, Mr. Gulang was criminally charged in the Office of the Ombudsman with malversation of public
funds and failure of accountable officer to render accounts as respectively defined and punished by Art.
217 and Art. 218 of the Revised Penal Code. He was also· charged with violation of Sec. 3(e) of R.A. No.
3019 for causing undue injury to the Government.

In his defense, Mr. Gulang mainly contended that he could not be held 1iable under the various· charges
because he was not a public officer.

(a) Who is a public officer? (2%)

(b) Discuss whether the crimes charged against Mr. Gulang are proper. Explain your answer.
(3%)
 VI

Answer with brief explanations the following queries:

(a) If the slightest penetration of the female genitalia consummates rape by carnal
knowledge, how does the accused commit attempted rape by carnal knowledge? (2%)

(b) What crime is committed by a capataz who enrolls two fictitious names in the payroll and
collects their supposed daily wages every payday? (2%)

(c) What is now the age of doli incapax in the Philippines? (2%)

(d) Why is there no crime of frustrated serious physical injuries? (2%)

VII

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

Prosecuted and tried, Bernardo was convicted of direct assault with murder. Rule with reasons whether or
not the conviction for direct assault with murder was justified, and whether or not the trial court should
appreciate the following aggravating circumstances against Bernardo, to wit: (1) disregard of rank and
age of the victim, who was 68 years old; (2) dwelling; (3) nighttime; (4) cruelty; and (5) quasi-recidivism.
(10%)

VIII

Porthos made a sudden turn on a dark street, and his Rolls-Royce SUV bumped the rear of a parked
Cadillac Sedan inside which Aramis was then taking a nap. Angered by the violent Impact, Aramis
alighted and confronted Porthos who had also alighted. Aramis angrily and repeatedly shouted at
Porthos: Putang Ina mo! Porthos, displaying fearlessness, aggressively shouted back at Aramis: Wag
kang magtapang-tapangan dyan, papatayin kita! Without saying anything more, Aramis drew his gun
from his waist and shot Porthos in the leg. Porthos' wound was not life threatening.

(a) What are the kinds of unlawful aggression, and which kind was displayed in this case?
Explain your answer. (3%)

(b) Standing trial for frustrated murder, Aramis pleaded self-defense. The Prosecution's
contention was that the plea of self-defense applied only to consummated killings. Rule, with
explanations, on the tenability of Aramis' claim of self-defense, and on the Prosecution's
contention. (3%)

(c) Porthos insisted that the element of treachery was present. To rule out treachery, Aramis
asserted that both he and Porthos were then facing and confronting each other when he fired the
shot. Rule, with reasons, on the respective contentions. (3%)
 IX

During the nationwide transport strike to protest the phase out of old public utility vehicles, striking
jeepney drivers Percy, Pablo, Pater and Sencio, each armed with guns, hailed several MMDA buses then
providing free transport to the stranded public to stop them from plying their routes. They later on
commandeered one of the buses without allowing any of the passengers to alight, and told the driver to
bring the bus to Tanay, Rizal.

Upon reaching a remote area in Tanay, Percy, Pablo, Pater and Sencio forcibly divested the passengers of
their cash and valuables. They ordered the passengers to leave thereafter. Then, they burned the bus.
When a tanod of the barangay of the area came around to Intervene, Pater fired at him, instantly killing
him.

After Percy, Pablo, Pater and Sencio were arrested, the police authorities recommended them to be
charged with the following crimes, to wit: (1) carnapping; (2) robbery, (3) direct assault with
homicide; (4) kidnapping; and (5) arson.

State your legal opinion on the recommendation of the police authorities on the criminal liabilities
incurred by Percy, Pablo, Pater and Sencio. (10%)

X.

Sammy Peke was convicted of a violation of R.A. No. 123456 for selling fake books. The law prescribes
the penalty of prision correccional, a divisible penalty whose minimum period is six months and one day
to two years and four months; medium period is two years, four months and one day to four years and two
months; and maximum period is four years, two months and one day to six years.

At arraignment, Sammy Peke pleads guilty to the crime charged.

(a) Explain how the Indeterminate Sentence Law is applied in crimes punished by special laws.
(3%)

(b) Supposing the trial judge imposes a straight penalty of imprisonment for one year, is the
penalty correct in the context of the Indeterminate Sentence Law? Explain your answer. (3%)

XI.

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

Policeman Stone was subsequently charged.

The Office of the Provincial Prosecutor is now about to resolve the case, and is mulling on what to charge
Policeman Stone with.
May Policeman Stone be properly charged with either or both of the following crimes, or, if not, with
what proper crime?

(a) Interruption of religious worship as defined and punished under Art. 132 of the Revised Penal
Code; and/or

(b) Offending the religious feelings as defined and punished under Art. 133 of the Revised Penal
Code.

Explain fully your answers. (8%)

 Remedial Law

I.

What trial court outside Metro Manila has exclusive original jurisdiction over the following cases?
Explain briefly your answers.

(a) An action filed on November 13, 2017 to recover the possession of an apartment unit being occupied
by the defendant by mere tolerance of the plaintiff, after the former ignored the last demand to vacate that
was duly served upon and received by him on July 6, 2016. (2.5%)

(b) A complaint in which the principal relief sought is the enforcement of a seller's contractual right to
repurchase a lot with an assessed value of ₱15,000.00. (2.5%)

II.

Santa filed against Era in the RTC of Quezon City an action for specific performance praying for the
delivery of a parcel of land subject of their contract of sale. Unknown to the parties, the case was
inadvertently raffled to an RTC designated as a special commercial court. Later, the RTC rendered
judgment adverse to Era, who, upon realizing that the trial court was not a regular RTC, approaches you
and wants you to file a petition to have the judgment annulled for lack of jurisdiction.

What advice would you give to Era? Explain your answer. (4%)

III.

Answer the following briefly:

(a) What elements should concur for circumstantial evidence to be sufficient for conviction? (2%)

(b) When is bail a matter of judicial discretion? (2%)

(c) Give at least two instances when a peace officer or a private person may make a valid
warrantless arrest. (2%)

(d) What is a tender of excluded evidence? (2%)

IV.

Give brief answers to the following:

(a) What is the doctrine of hierarchy of courts? (2%)

(b) What is the Harmless Error Rule in relation to appeals? (2%)

(c) When does a public prosecutor conduct an inquest instead of a preliminary investigation?
(2%)

V.
After working for 25 years in the Middle East, Evan returned to the Philippines to retire in Manila, the
place of his birth and childhood. Ten years before his retirement, he bought for cash in his name a house
and lot in Malate, Manila. Six months after his return, he learned that his house and lot were the subject of
foreclosure proceedings commenced by ABC Bank on the basis of a promissory note and a deed of real
estate mortgage he had allegedly executed in favor of ABC Bank five years earlier.

Knowing that he was not in the country at the time the promissory note and deed of mortgage were
supposedly executed, Evan forthwith initiated a complaint in the RTC of Manila praying that the subject
documents be declared null and void.

ABC Bank filed a motion to dismiss Evan's complaint on the ground of improper venue on the basis of a
stipulation in both documents designating Quezon City as the exclusive venue in the event of litigation
between the parties arising out of the loan and mortgage.

Should the motion to dismiss of ABC Bank be granted? Explain your answer. (5%)

VI.

Hanna, a resident of Manila, filed a complaint for the partition of a large tract of land located in Oriental
Mindoro. She impleaded her two brothers John and Adrian as defendants but did not implead Leica and
Agatha, her two sisters who were permanent residents of Australia.

Arguing that there could be no final determination of the case without impleading all indispensable
parties, John and Adrian moved to dismiss the complaint.

Does the trial court have a reason to deny the motion? Explain your answer. (4%)

VII.

Elise obtained a loan of ₱3 Million from Merchant Bank. Aside from executing a promissory note in
favor of Merchant Bank, she executed a deed of real estate mortgage over her house and lot as security for
her obligation. The loan fell due but remained unpaid; hence, Merchant Bank filed an action against Elise
to foreclose the real estate mortgage. A month after, and while the foreclosure suit was pending, Merchant
Bank also filed an action to recover the principal sum of ₱3 Million against Elise based on the same
promissory note previously executed by the latter.

In opposing the motion of Elise to dismiss the second action on the ground of splitting of a single cause of
action, Merchant Bank argued that the ground relied upon by Elise was devoid of any legal basis
considering that the two actions were based on separate contracts, namely, the contract of loan evidenced
by the promissory note, and the deed of real estate mortgage.

Is there a splitting of a single cause of action? Explain your answer. (4%)

VIII.

A.
Laura was the lessee of an apartment unit owned by Louie. When the lease expired, Laura refused to
vacate the property. Her refusal prompted Louie to file an action for unlawful detainer against Laura who
failed to answer the complaint within the reglementary period.

Louie then filed a motion to declare Laura in default. Should the motion be granted? Explain your answer.
(3%)

B.

Agatha filed a complaint against Yana in the RTC in Makati City to collect ₱350,000.00, an amount
representing the unpaid balance on the price of the car Yana had bought from Agatha. Realizing a
jurisdictional error in filing the complaint in the RTC, Agatha filed a notice of dismissal before she was
served with the answer of Yana. The RTC issued an order confirming the dismissal.

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

A month later, Agatha refiled the complaint against Yana in the same MeTC.

May Yana successfully invoke the Two-Dismissal Rule to bar Agatha's third complaint? Explain your
answer. (3%)

IX.

Abraham filed a complaint for damages in the amount of ₱750,000.00 against Salvador in the RTC in
Quezon City for the latter's alleged breach of their contract of services. Salvador promptly filed his
answer, and included a counterclaim for ₱250,000.00 arising from the allegedly baseless and malicious
claims of Abraham that compelled him to litigate and to engage the services of counsel, and thus caused
him to suffer mental anguish.

Noting that the amount of the counterclaim was below the exclusive original jurisdiction of the RTC,
Abraham filed a motion to dismiss vis-8-vis the counterclaim on that ground.

Should the counterclaim of Salvador be dismissed? Explain your answer. (4%)

X.

On the basis of an alleged promissory note executed by Harold in favor of Ramon, the latter filed a
complaint for ₱950,000.00 against the former in the RTC of Davao City. In an unverified answer, Harold
specifically denied the genuineness of the promissory note. During the trial, Harold sought to offer the
testimonies of the following: (1) the testimony of an NBI handwriting expert to prove the forgery of his
signature; and (2) the testimony of a credible witness to prove that if ever Harold had executed the note in
favor of Ramon, the same was not supported by a consideration.

May Ramon validly object to the proposed testimonies? Give a brief explanation of your answer. (5%)

XI.
 A.

Teddy filed against Buboy an action for rescission of a contract for the sale of a commercial lot. After
having been told by the wife of Buboy that her husband was out of town and would not be back until after
a couple of days, the sheriff requested the wife to just receive the summons in behalf of her husband. The
wife acceded to the request, received the summons and a copy of the complaint, and signed for the same.

(a) Was there a valid service of summons upon Buboy? Explain your answer briefly. (3%)

(b) If Buboy files a motion to dismiss the complaint based on the twin grounds of lack of
jurisdiction over his person and prescription of the cause of action, may he be deemed to have
voluntarily submitted himself to the jurisdiction of the court? Explain your answer briefly (3%).

B.

What is the mode of appeal applicable to the following cases, and what issues may be raised before the
reviewing court/tribunal?

(a) The decision or final order of the National Labor Relations Commission. (1.5%)

(b) The judgment or final order of the RTC in the exercise of its appellate jurisdiction. (1.5%)

XII.

A.

Judgment was rendered against defendant Jaypee in an action for unlawful detainer. The judgment
ordered Jaypee to vacate and to pay attorney's fees in favor of Bart, the plaintiff.

To prevent the immediate execution of the judgment, would you advise the posting of a supersedeas bond
as counsel for Jaypee? Explain your answer briefly? (2%).

B.

A temporary restraining order (TRO) was issued on September 20, 2017 by the RTC against defendant
Jeff enjoining him from entering the land of Regan, the plaintiff.

On October 9, 2017, upon application of Regan, the trial court, allegedly in the interest of justice,
extended the TRO for another 20 days based on the same ground for which the TRO was issued.

On October 15, 2017, Jeff entered the land subject of the TRO.

May Jeff be liable for contempt of court? Why? (4%)

XIII.

Police officers arrested Mr. Druggie in a buy-bust operation and confiscated from him 10 sachets
of shabu and several marked genuine peso bills worth ₱5,000.00 used as the buy-bust money during the
buy-bust operation.
At the trial of Mr. Druggie for violation of R.A. No. 9165 (Comprehensive Dangerous Drug Act of 2002),
the Prosecution offered in evidence, among others, photocopies of the confiscated marked genuine peso
bills. The photocopies were offered to prove that Mr. Druggie had engaged at the time of his arrest in the
illegal selling of dangerous drugs.

Invoking the Best Evidence Rule, Atty. Maya Bang, the defense counsel, objected to the admissibility of
the photocopies of the confiscated marked genuine peso bills.

Should the trial judge sustain the objection of the defense counsel? Briefly explain your answer (5%)

XIV.

Immediately before he died of gunshot wounds to his chest, Venancio told the attending physician, In a
very feeble voice, that it was Arnulfo, his co-worker, who had shot him. Venancio added that it was also
Arnulfo who had shot Vicente, the man whose cadaver was lying on the bed beside him.

In the prosecution of Arnulfo for the criminal killing of Venancio and Vicente, are all the statements of
Venancio admissible as dying declarations? Explain your answer. (5%)

XV.

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

Would you, as the trial prosecutor, interpose your objection to the question of the defense counsel?
Explain your answer. (4%)

XVI.

Engr. Magna Nakaw, the District Engineer of the DPWH in the Province of Walang Progreso, and Mr.
Pork Chop, a private contractor, were both charged in the Office of the Ombudsman for violation of
the Anti-Graft and Corrupt Practices Act (R.A. No. 3019) under a conspiracy theory.

While the charges were undergoing investigation in the Office of the Ombudsman, Engr. Magna Nakaw
passed away. Mr. Pork Chop immediately filed a motion to terminate the investigation and to dismiss the
charges against him, arguing that because he was charged in conspiracy with the deceased, there was no
longer a conspiracy to speak of and, consequently, any legal ground to hold him for trial had been
extinguished.

Rule on the motion to terminate filed by Mr. Pork Chop, with brief reasons. (5%).

XVII.

Juancho entered a plea of guilty when he was arraigned under an information for homicide. To determine
the penalty to be imposed, the trial court allowed Juancho to present evidence proving any mitigating
circumstance in his favor. Juancho was able to establish complete self-defense.
Convinced by the evidence adduced by Juancho, the trial court rendered a verdict of acquittal.

May the Prosecution assail the acquittal without infringing the constitutional guarantee against double
jeopardy in favor of Juancho? Explain your answer. (5%)

XVIII.

Tomas was criminally charged with serious physical injuries allegedly committed against Darvin. During
the pendency of the criminal case, Darvin filed a separate civil action for damages based on the injuries
he had sustained.

Tomas filed a motion to dismiss the separate civil action on the ground of litis pendentia, pointing out that
when the criminal action was filed against him, the civil action to recover the civil liability from the
offense charged was also deemed instituted. He insisted that the basis of the separate civil action was the
very same act that gave rise to the criminal action.

Rule on Tomas' motion to dismiss, with brief reasons. (5%)

XIX.

Boy Maton, a neighborhood tough guy, was arrested by a police officer on suspicion that he was keeping
prohibited drugs in his clutch bag. When Boy Maton was searched immediately after the arrest, the officer
found and recovered 10 sachets of shabu neatly tucked in the inner linings of the clutch bag. At the time
of his arrest, Boy Maton was watching a basketball game being played in the town plaza, and he was
cheering for his favorite team. He was subsequently charged with illegal possession of dangerous drugs,
and he entered a plea of not guilty when he was arraigned.

During the trial, Boy Maton moved for the dismissal of the information on the ground that the facts
revealed that he had been illegally arrested. He further moved for the suppression of the evidence
confiscated from him as being the consequence of the illegal arrest, hence, the fruit of the poisonous tree.

The trial court, in denying the motions of Boy Maton, explained that at the time the motions were filed
Boy Maton had already waived the right to raise the issue of the legality of the arrest. The trial court
observed that, pursuant to the Rules of Court, Boy Maton, as the accused, should have assailed the
validity of the arrest before entering his plea to the information. Hence, the trial court opined that any
adverse consequence of the alleged illegal arrest had also been equally waived.

Comment on the ruling of the trial court. (5%)

 Legal Ethics

I.

A.

Brando & Luzon Law Office had a retainer agreement with Gregory, a businessman with shady
connections. Gregory was recently charged in the RTC in Manila with money laundering in relation to an
illegal drugs syndicate using Cable Co., his holding company, as its money laundering conduit. The
members of the Brando & Luzon Law Office assigned to handle Gregory's account, including yourself,
were implicated in the money laundering case for their role in the incorporation of Cable Co. and in the
active management of its business affairs.

In a bid to fortify the case against Gregory and the others, the public prosecutor approaches you (as the
least guilty person who will qualify for a discharge as a state witness) and offers to make you a state
witness. Should you accept the offer? Explain your answer. (5%)

B.

Under the facts of the preceding question, assume that you had resigned from the Brando & Luzon Law
Office prior to the filing of the money laundering case against Gregory and the others, and that you were
not implicated in the case. However, you had assisted in handling the Cobra Co. account during your time
with the law firm. Cobra Co. was largely owned by Cable Co.

The public prosecutor handling the case against Gregory and the others asks you, as a former member of
the Brando & Luzon Law Office, to help strengthen the case for the Government, and hints that you may
be implicated in the case if you do not cooperate. What is your legal and ethical course of action? Explain
your answer. (5%)

II.

A.

Pedro Tigas, a known toughie, asked Atty. Chloe to meet with him in the Jollibee Restaurant in Harrison
Plaza because he wanted to seek her legal advice on an important matter. Atty. Chloe had once before
been consulted by Pedro Tigas, who had then paid her well. When they met in Jollibee Restaurant, he
confided his planned assassination of Pepeng Taga, his rival for control of the neighborhood in San
Andres Bukid, Manila. He wanted her to represent him should he be apprehended for the assassination.
Atty. Chloe did not agree, and left the restaurant in a hurry before Pedro Tigas could utter anything more.

A few days afterwards, Pepeng Taga was killed near his house in San Andres Bukid, Manila. The police
follow-up team arrested Pedro Tigas on the basis of testimony by at least two residents that they had
heard him saying two days before the killing that Pepeng Taga would not live beyond 48 hours. Should
Atty. Chloe reveal to the police investigator what Pedro Tigas had stated to her at the Jollibee Restaurant
without violating the confidence of the latter as a client? Explain your answer. (4%)

B.
Assuming that the meeting between Pedro Tigas and Atty. Chloe in Jollibee Restaurant occurred after the
killing of Pepeng Taga, and in that meeting Pedro Tigas expressly admitted to Atty. Chloe in strict
confidence as his lawyer that he had shot Pepeng Taga. Is Atty. Chloe ethically bound to reveal the
admission of Pedro Tigas to the police investigator what Pedro Tigas had stated to her at the Jollibee
Restaurant? Explain your answer. (4%)

III.

A.

Alleging that Atty. Frank had seduced her when she was only 16 years old, and that she had given birth to
a baby girl as a result, Malen filed a complaint for his disbarment seven years after the birth of the child
charging that he was a grossly immoral person unworthy and unfit to continue in the Legal Profession. In
his comment, Atty. Frank argued that the complaint for disbarment should be dismissed because of
prescription.

Explain whether or not Atty. Frank's argument is justified. (4%)

B.

Beth administratively charged her former lawyer, Atty. Rawet, with gross misconduct and gross
ignorance of the law for the latter's inadequate legal representation of her in her suit against her neighbor.
Midway during the investigation, Beth decided to migrate to Australia. Learning about her plans, Atty.
Rawet approached her and pleaded for her understanding. He was able to persuade her to execute an
affidavit of desistance in respect of her administrative complaint. He submitted the affidavit of desistance
to the Supreme Court, and moved to dismiss the charge against him.

Will the affidavit of desistance warrant the dismissal of the administrative charge? Explain your answer.
(4%)

IV.

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

Was the service of the decision on Atty. Jessa still effective? Explain your answer. (4%)

V.

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

Eva moved to immediately disqualify Atty. Doble Kara from representing Mely on the ground of conflict
of interest, but Atty. Doble Kara explained to the estate court that there was no conflict of interest because
he had no lawyer-client relationship with Eva. He further indicated that Eva had not also paid him any
retainer fee.

Given his explanations to the estate court, may Atty. Doble Kara ethically represent Mely? (4%)

VI.

For services to be rendered by Atty. Hamilton as counsel for Gener in a civil case involving the recovery
of the ownership and possession of a parcel of land with an area of 5,000 square meters, the two of them
agreed on a success fee for Atty. Hamilton of ₱50,000.00 plus 500 square meters of the land. The trial
court ultimately rendered judgment in favor of Gener, and the judgment became final and executory.
After receiving ₱50,000.00, Atty. Hamilton demanded the transfer to him of the promised 500 square
meters of the land.

Instead of complying, Gener brought an administrative complaint charging Atty. Hamilton with violation
of the Code of Professional Responsibility and Art. 1491(5) of the Civil Code for demanding the delivery
of a portion of the land subject of the litigation.

Is Atty. Hamilton liable under the Code of Professional Responsibility and the Civil Code? Explain your
answer. (4%)

VII.

A.

You had just taken your oath as a new lawyer. The secretary of a big university offered to get you as the
university's notary public. She explained that the faculty and students would be sent to you to have their
documentations and affidavits notarized; and that the arrangement would be very lucrative for you.
However, the secretary wants you to share with her half of your earnings throughout the year.

Will you agree to the arrangement proposed by the secretary of the university? Explain your answer. (4%)

B.

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

VIII.

A.
Sancho Mahilig went to the office of Atty. Charm to engage her legal representation in the criminal case
for adultery that the husband of his socialite friend had brought against him in the City Prosecutor's Office
in Manila. Atty. Charm thoroughly interviewed Sancho in her office with only Linda, the
secretary/stenographer of Atty. Charm, the only other person present. On that occasion, Sancho candidly
informed Atty. Charm about his illicit affair with the socialite wife, and gave many details. Linda
faithfully recorded the interview.

During the trial of the criminal case for adultery, the trial prosecutor requested the court to issue a
subpoena duces tecum to compel the production of the record of the interview and a subpoena ad
testificandum to compel Linda to testify on the admission of the affair by Sancho. Atty. Charm objected
to the request on the basis of lawyer-client confidentiality.

If you were the trial judge, how will you resolve the objection of Atty. Charm? Justify your answer. (4%)

B.

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

Explain whether or not the decision of Prosecutor Regan to miss the trial of the action to declare the
nullity of the marriage was warranted. (4%)

IX.

Atty. Miriam rents her office space in a building owned by Winston. Eventually, Atty. Miriam became
Winston's regular legal counsel. Because of their good relationship, Atty. Miriam did not hesitate to
borrow money from Winston. Atty. Miriam issued postdated checks covering the interest of her loans.
Unfortunately, Atty. Miriam failed to pay her obligations to Winston. Her postdated checks with Winston
also bounced. Hence, he filed a criminal case for violation of the Bouncing Checks Law against her.

In her counter-affidavit, Atty. Miriam averred that Winston was "a businessman who is engaged in the
real estate business, trading and buy and sell of deficiency taxed imported cars, shark loans and other
shady deals and has many cases pending in court."

Hurt by the allegations, Winston filed a disbarment complaint against Atty. Miriam arguing that her
allegations in the counter-affidavit constituted a breach of their confidential lawyer-client relationship.

Discuss whether or not the disclosures in Atty. Miriam's counter-affidavit constitute a breach of fidelity
towards her client. (4%)

X.

Atty. Anna Kirmet was one of Worry Bank's valued clients. The bank gave her a credit card with a credit
limit of ₱250,000.00. Because of her extravagance, Atty. Kirmet exceeded her credit limit and refused to
pay the monthly charges as they fell due.
Hence, aside from a collection case, Worry Bank filed a disbarment case against Atty. Kirmet. In her
comment on the disbarment complaint, Atty. Kirmet insisted that she did not violate the Code of
Professional Responsibility because her obligation to the bank was personal in nature and had no relation
to her being a lawyer.

Is Atty. Kirmet correct? Explain your answer briefly. (4%)

XI.

A.

Define champerty. (3%)

B.

Atty. Andy and Atty. Valeriano were classmates in law school. As such, they developed a close friendly
relationship. They agreed that they would refer clients to each other, and whoever referred clients would
receive a commission or portion of the attorney's fees. Atty. Andy referred a client to Atty. Valeriano,
who charged the client ₱100,000.00 as initial attorney's fees. Thereafter, Atty. Valeriano sent 15% of
₱100,000.00, or ₱15,000.00, to Atty. Andy as the latter's referral fee.

Explain if the agreement on the referral fee is ethical. (3%)

XII.

Atty. Simplicio published the following advertisement in a local newspaper: "Annulment of Marriage,
Competent Attorney, Reasonable Fees, Call 221-2345."

A Justice of the Supreme Court saw the advertisement and thereafter called the attention of his
colleagues. The Supreme Court directed the Bar Confidant investigate the matter. When directed to
explain why no disciplinary action should be taken against him for the improper advertisement, Atty.
Simplicio contended that: (a) the advertisement was not improper because his name was not mentioned;
and (b) he could not be subjected to disciplinary action because there was no complaint filed against him.

Rule on Atty. Simplicio's contentions. (4%)

XIII.

Herbert Madasalin, a 25-year old Bar candidate, surrendered his driver's license to the security guard at
the Arlegui Gate when he entered the Malacanang compound to pray at the National Shrine of St. Jude
Thaddeus. After praying the novena to St. Jude, Herbert went to the Arlegui Gate to retrieve his driver's
license. However, he was not able to get the license because the security guard was then elsewhere. He
returned the next day only to be told that the security guard had misplaced the license. The security guard
concerned could not anymore remember where he had placed the license.

Herbert immediately requests your assistance in the preparation of an affidavit of loss. His address is at
143 Zuzuaregui Street, Don Antonio Heights, Quezon City. As his friend, prepare Herbert's affidavit of
loss. (5%)
 XIV.

Kyle Angelo was served with summons and a copy of the complaint of Ciara Jane for collection of the
amount of ₱1,000,000.00 as evidenced by a promissory note signed by Kyle Angelo. She alleged that the
debt was overdue; and that Kyle Angelo refused to pay despite repeated demands.

Kyle Angelo engaged the services of Atty. Carlos Sa bit, who decided to file a motion to dismiss on the
ground of lack of cause of action and prescription. Atty. Carlos Sabit drafted the motion and sent the draft
to Kyle Angelo for his perusal. Kyle Angelo, being himself a law graduate, quickly noticed that the draft
did not contain a notice of hearing.

Draft the notice of hearing that Atty. Carlos Sabit should include in the motion to dismiss. (3%)

XV.

Believing that an onerous transfer would result in lesser taxes than a gratuitous transfer, Nenita Villo, a
widow, decided to sell her lone asset worth ₱3,000,000.00 to her daughters, Andrea, Carina and Carissa,
all of legal age, gainfully employed and still unmarried. The asset consisted of the house and the lot
registered under Transfer Certificate of Title No. 67890 of the Register of Deeds of Paranaque City and
situated at No. 3156 Bayswater Street, Metro Ville Subdivision, Paranaque City where Nenita and her
daughters presently resided.

Nenita required her daughters to make a down payment of ₱1,000,000.00, and the balance to be paid once
the title to the property was transferred to her daughters' names. All the taxes, fees, and costs related to
the sale would be for the account of Nenita, while those related to the transfer of title would be paid by
Andrea, Carina and Carissa.

Draft the contract to be executed by Nenita and her daughters in connection with the transfer of the house
and lot. Omit details other than those stated in the question. (10%)

XVI.

Determine if the following advertisements by an attorney are ethical or unethical. Explain your answer.

(a) A calling card, 2 inches x 2 inches in size, bearing the attorney's name in bold print, office,
residence and email addresses, telephone and facsimile numbers. (2%)

(b) A business card, 3 inches x 4 inches in size, indicating the aforementioned data with his 1 inch
x 1 inch photograph. (2%)

(c) A pictorial press release in a broadsheet newspaper made by the attorney showing him being
congratulated by the president of a client corporation for winning a multi-million damage suit
against the company in the Supreme Court. (2%)

(d)The same press release made in a tabloid by the attorney's client. (2%)

(e) A small announcement that the attorney is giving free legal advice on November 30, 2017
published in Balita, a tabloid in Filipino. (2%)