SAN SEBASTIAN COLLEGE RECOLETOS

COLLEGE OF LAW
SURIGAO CITY EXTENSION

MIDTERM EXAMINATIONS: COMMERCIAL LAW REVIEW

1. What is Public Service? What is the nature of legislative franchise?

What is Public Utility?

2. In a sale of land on the instalment plan, the contract provides that in

case of the death of the vendor before the completion of all the
instalment payments, the vendee’s representatives or his heirs could
either complete payment and receive the tittle to the land from the
vendor or rescind the contract and recover back payments made. Is
this an insurance contract? Give reasons.

3. May the ABS-CBN television network can continue its operation after
the expiration of its franchise come May, 2020? Why or why not?

4. Distinguish Primary and Secondary Franchises.

5. What are the characteristics of an insurance contract? Explain each

characteristic briefly.

6. Can the National Power Corporation (NPC), impose penalties against

its customers (power providers)for excess consumption, unused
consumption?

7. Are the heirs of a taxicab driver covered by an insurance party issued

company entitled to an indemnity after having recovered
compensation under the Workmen’s Compensation Law, because the
policy in question contained a stipulation that “the Company will
indemnify any authorized driver provided that such authorized driver is
not entitled to indemnity under any other policy?

8. “A” took out a Php 300,000.00 life insurance policy and designated his
wife, “B” as the sole beneficiary. All the premiums in the policy were
paid out from his salaries. The spouses have three (3) children, “X”,
‘Y” AND “Z”. “A” died intestate.

a.) Divide the proceeds of the Policy.

b.) In the same case, suppose “A”, instead of designating his

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 wife as sole beneficiary, designated his child “X” only as sole
beneficiary. Reason out your answers.

9. State the Constitutional limitations as to ownership and management

of Mass Media. How would you harmonize the pending measure in the
lower house of congress allowing 100% ownership of mass media to
aliens?

10. Define insurable interest?

11. Some businessmen with an available starting capital totalling only Php
500,000.00 ask you to help organize a business firm. Subject to legal
limitations, they have future plans to invite alien investors who are
agreeable to rendering financial assistance by way of direct
investments and/or loans. May your firm at its expense insure the life
of its manager with a provision that the insurance proceeds shall be
paid to the company and his heirs in equal proportions? Why?

12. “A” owns a house worth Php 1,000,000.00. He insured it against fire
for Php 50,000.00 for the period from January 1, 2000 to January 1,
2005. At the instance of “B”, a judgment creditor “A”, the said house
was levied upon and sold at a public auction on March 15, 2006. It was
adjudicated to “B” for Php 700,000.00 at the auction sale. “B” insured
the house against fire for Php 50,000.00 for the period March 16,
2006. The house was accidentally burned on April 1, 2006.

a.) Can “A” recover under his policy? Give your reasons for your
answer.

b.) Can “B” recover under his policy? Give your reasons for your
answer.

13. Atty. Roberto took out a life insurance policy from the Dana Insurance
Corp. (DIC) on 1 September 1989. On 31 August 1990, Robert died.
DIC refused to pay his beneficiaries because it discovered that Roberto
had misrepresented certain material facts in his application. The
beneficiaries sued on the basis that DIC can contest the validity of the
insurance policy only within two (2) years from date of issue and
during the lifetime of the insured. Decide the case.

14. Pedro Reyes applied for fire insurance on his house. In his application,
it was asked the following question: “Is the house insured with another
insurance company? if so, for how much? His answer was “No”. The
fact however, is that the house had been insured with the FGU for Php
100,000.00. The application was approved and made a part of the
policy. Subsequently a fire occurred in a neighboring house, and
spread to the house of Pedro Reyes which was completely burned.

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 Demand for payment having been refused by the insurer. Pedro Reyes
filed a complaint. May he recover? Reason.

15. On December 17, 1975, a fire policy, insuring a building and its
contents, was delivered to the insured company. By agreement, it was
allowed to pay the premium within 30 days. On January 8, 1976, it
paid the premium by means of a check post dated January 16, 1976.
The check was deposited by the insurance company on February 20,
but the check, although on January 18, two (2) days after the
premium became due, the insured property was burned and became a
total loss. Can the insurance company cancel the policy for non-
payment of premium? Give reasons for your answers.

16. What is Internet and Value Added Services?

17. In the event that MERALCO finds that one of its customers is involved
in the theft of electricity through illegal tapping of electric lines of duly
registered customer, what course of action that MERALCO should be
made? What is the nature of MERALCO business? Can MERALCO
exercise police power? Why not?

18. What is the philosophy behind the enactment of RA 6957? Enumerate

the schemes recognized pursuant to RA 7718.

19. Can LGU avail of BOT scheme? If so, state legal bases and procedures.

20. What is Marine Insurance? What are the types of Marine Policies?

GOOD LUCK!!!

Judge Dante R. Corminal

Professor

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