I.

Can an article of commerce serve as a trademark and at the same time enjoy
patent and copyright protection? Explain and give an example.

II.

Cezar works in a car manufacturing company owned by Joab. Cezar is quite

innovative and loves to tinker with things. With the materials and parts of the car,
he was able to invent a gas-saving device that will enable cars to consume less
gas. Francis, a co-worker, saw how Cezar created the device and likewise, came
up with a similar gadget, also using scrap materials and spare parts of the
company. Thereafter, Francis filed an application for registration of his device with
the Bureau of Patents. 18 months later, Cezar filed an application for registration
his device with the Bureau of Patents. Is the gas-saving device patentable?
Explain.

III.

Banks; Money Laundering: Predicate Crimes (2007) No.X. Name at least five
predicate crimes to money laundering. (5%)

IV.

Rehabilitation; Stay Order (2012) No.I. ABC Company filed a Petition for
Rehabilitation with the Court. An Order was issued by the Court, (1) staying
enforcement of all claims, whether money or otherwise against ABC Company, its
guarantors and sureties not solidarily liable with the company; and (2) prohibiting
ABC Company from making payments of its liabilities, outstanding as of the date
of the filing of the Petition. XYC Company is a holder of an irrevocable Standby
Letter of Credit which was previously procured by ABC Company in favor of XYC
Company to secure performance of certain obligations. In the light of the Order
issued by the Court.

(A) Can XYC Company still be able to draw on their irrevocable Standby Letter of
Credit when due? Explain your answer. (5%)

V.

Concealment; Material Concealment (2013)

No.II. Benny applied for life insurance for Php 1.5 Million. The insurance company
approved his application and issued an insurance policy effective Nov, 6, 2008.
Benny named his children as his beneficiaries. On April 6, 2010, Benny died of
hepatoma, a liver ailment. The insurance company denied the children’s claim for

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the proceeds of the insurance policy on the ground that Benny failed to disclose in
his application two previous consultations with his doctors for diabetes and
hypertension, and that he had been diagnosed to be suffering from hepatoma. The
insurance company also rescinded the policy and refunded the premiums paid.
Was the insurance company correct? (8%)

VI.

The City Fiscal of Manila required the Manila Banking Corporation to produce at a
hearing the records of bank deposits of Alfredo Santos. The Manila Banking
Corporation refused, alleging that disclosure of bank deposits is prohibited by R.A.
No. 1405. Threatened with prosecution, the Corporation filed an action for
declaratory judgment. May the court compel the Manila Banking Corporation to
disclose the bank deposits of Alfredo Santos?

VII.

SONY is a registered trademark for TV, stereo, radio, cameras, betamax and other
electronic products. A local company, Best Manufacturing, Inc., produced electric
fans which it sold under the trademark’s SONY without the consent of SONY.
SONY sued Best Manufacturing for infringement. Decide the case.

VIII.

The Mahal Building and Loan Association was organized for the main purpose of
encouraging savings and construction of homes among its members. As a matter
of policy, it extends financial assistance to its members in the form of loans with
funds deposited by them. The depositors are called participating members and
funds deposited are referred to as savings. Anybody can be a depositor or become
a participating member. To qualify for loan, a member must, among others, have
sufficient collateral and deposit equal to ½ of the loan granted. The power to grant
building loans is placed under the exclusive authority of the Board controlled by
Andreas Family. Participating members are denied the right to vote or be voted
for. The association is open to the public for ordinary demand deposit accounts so
as to augment the funds to be granted as building Loans. Further, the Association,
as another source for its funding for its financial operations, sells its own bonds to
the public. Does the Mahal Building and Loan Association violate the law on
building and loan associations? Is it in fact operating as banking institution?
Explain.

IX.

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MN and OP rented a safety deposit box at SIBANK. The parties signed a contract
of lease with the conditions that: the bank is not a depository of the contents of the
safe and has neither the possession nor control of the same; the bank assumed
no interest in said contents and assumes no liability in connection therewith. The
safety deposit box had two keyholes: one for the guard key which remained with
the bank; and the other for the renter’s key. The box can be opened only with the
use of both keys. The renters deposited certificates of title in the box. But later,
they discovered that the certificates were gone. MN and OP now claim for
damages from SIBANK. Is the bank liable? Explain briefly.

X.

On September 6, 1978, A convened his principal creditors, including B, and

informed them that he was in a state of insolvency. Knowing of this, B immediately
transferred his credit against the property of A located in another jurisdiction to C,
a close relative, who immediately filed action in said jurisdiction against A and
attached the property of A. Later, a petition for insolvency was filed by A, and D
was appointed assignee. Learning of the transfer, D now sues B for damages. Can
D recover? Give reasons.