2014 Bar Examinations

2014 BAR EXAMINATIONS
POLITICAL LAW
October 5, 2014
8:00A.M.- 12:00 N.N.

INSTRUCTIONS
1. This Questionnaire contains THIRTEEN (13) pages including these Instructions pages.
Check the number of pages and the page numbers at the upper right hand corner of each
page of this Questionnaire and make sure it has the correct number of pages and their
proper numbers.
There are THIRTY (30) Essay and Multiple Choice Questions (MCQs) to be answered
within four (4) hours.
2. Read each question very carefully and write your answers in your Bar Examination
Notebook in the same order the questions are posed. Write your answers only on the front,
not the back, page of every sheet in your Notebook. Note well the allocated percentage
points for each number, question, or subquestion. In your answers, use the numbering
system in the questionnaire.
If the sheets provided in your Examination Notebook are not sufficient for your answers, use
the back page of every sheet of your Examination Notebook, starting at the back page of
the first sheet and the back of the succeeding sheets thereafter.
3. Answer the Essay questions legibly, clearly, and concisely. Start each number on a
separate page. An answer to a sub-question under the same number may be written
continuously on the same page and the immediately succeeding pages until completed.
Your answer should demonstrate your ability to analyze the facts presented by the question,
to select the material from the immaterial facts, and to discern the points upon which the
question turns. It should show your knowledge and understanding of the pertinent principles
and theories of law involved and their qualifications and limitations. It should demonstrate
your ability to apply the law to the given facts, and to reason logically in a lawyerlike manner
to a sound conclusion from the given premises.
A mere "Yes" or "No" answer without any corresponding explanation or discussion will not
be given any credit. Thus, always briefly but fully explain your answers although the
question does not expressly ask for an explanation. At the same time, remember that a
complete explanation does not require that you volunteer information or discuss legal
doctrines that are not necessary or pertinent to the solution to the problem. You do not need
to re-write or repeat the question in your Notebook.
4. MCQs are to be answered by writing in your Notebook the capital letter A, B, C, D or E,
corresponding to your chosen answer.
There is only one correct answer to every MCQ; choose the BEST answer from among the
offered choices. Note that some MCQs may need careful analysis both of the questions and
the choices offered.
5. Make sure you do not write your name or any extraneous note/s or distinctive
marking/s on your Notebook that can serve as an identifying mark/s (such as names that
are not in the given questions, prayers, or private notes to the Examiner).
Writing, leaving or making any distinguishing or identifying mark in the exam Notebook is
considered cheating and can disqualify you for the Bar examinations.
You can use the questionnaire for notes you may wish/need to write during the examination.
YOU CAN BRING HOME THIS QUESTIONNAIRE OR HAND IT TOGETHER WITH YOUR
NOTEBOOK
J. DIOSDADO M. PERALTA
Chairman
2014 Bar Examinations
I.
With the passage of time, the members of the House of Representatives increased with the
creation of new legislative districts and the corresponding adjustments in the number of
party-list representatives. At a time when the House membership was already 290, a great
number of the members decided that it was time to propose amendments to the
Constitution. The Senators, however, were cool to the idea. But the members of the House
insisted. They accordingly convened Congress into a constituent assembly in spite of the
opposition of the majority of the members of the Senate. When the votes were counted, 275
members of the House of Representatives approved the proposed amendments. Only 10
Senators supported such proposals. The proponents now claim that the proposals were
validly made, since more than the required three-fourths vote of Congress has been
obtained. The 14 Senators who voted against the proposals claim that the proposals
needed not three-fourths vote of the entire Congress but each house. Since the required
number of votes in the Senate was not obtained, then there could be no valid proposals, so
argued the Senators. Were the proposals validly adopted by Congress? (5%)
II.
Several citizens, unhappy with the proliferation of families dominating the political
landscape, decided to take matters into their own hands. They proposed to come up with a
peoples initiative defining political dynasties. They started a signature campaign for the
purpose of coming up with a petition for that purpose. Some others expressed misgivings
about a peoples initiative for the purpose of proposing amendments to the Constitution,
however. They cited the Courts decision in Santiago v. Commission on Elections, 270
SCRA 106 (1997), as authority for their position that there is yet no enabling law for s uch
purpose. On the other hand, there are also those who claim that the individual votes of the
justices in Lambino v. Commission on Elections, 505 SCRA 160 (2006), mean that
Santiagos pronouncement has effectively been abandoned. If you were consulted by those
behind the new attempt at a peoples initiative, how would you advise them? (4%)
III.
In Serrano v. Gallant Maritime Services, Inc., 582 SCRA 254 (2009), the Supreme Court
declared as violative of the Equal Protection Clause the 5th paragraph of 10 R.A. No. 8042
(Migrant Workers and Overseas Filipinos Act of 1995) for discriminating against illegally
dismissed OFWs who still had mo re than a year to their contract compared to those who
only had less than a year remaining. The next year, Congress enacted R.A. No 10222, an
amendment to the Migrant Workers and Overseas Filipinos Act, which practically reinstated
the provision struck down in Serrano.
Seamacho, an overseas seafarer who still had two years remaining on his contract when he
was illegally terminated, and who would only be entitled to a maximum of six-months pay
under the reinstated provision, engages you as his counsel. How are you to argue that the
new law is invalid insofar as it brings back to the statute books a provision that has already
been struck down by the Court? (5%)
IV.
Beauty was proclaimed as the winning candidate for the position of Representative in the
House of Representatives three (3) days after the elections in May. She then immediately
took her oath of office. However, there was a pending disqualification case against her,
which case was eventually decided by the COMELEC against her 10 days after the
election. Since she has already been proclaimed, she ignored that decision and did not
bother appealing it. The COMELEC then declared in the first week of June that its decision
holding that Beauty was not validly elected had become final. Beauty then went to the
Supreme Court questioning the jurisdiction of the COMELEC claiming that since she had
already been proclaimed and had taken her oath of office, such election body had no more
right to come up with a decision that the jurisdiction had already been transferred to the
House of Representatives Electoral Tribunal. How defensible is the argument of Beauty?
(4%)
V.
Greenpeas is an ideology-based political party fighting for environmental causes. It decided
to participate under the party-list system. When the election results came in, it only obtained
1.99 percent of the votes cast under the party -list system. Bluebean, a political observer,
claimed that Greenpeas is not entitled to any seat since it failed to obtain at least 2% of the
votes. Moreover, since it does not represent any of the marginalized and underrepresented
sectors of society, Greenpeas is not entitled to participate under the party-list system. How
valid are the observations of Bluebean? (4%)
VI.
A few months before the end of the present Congress, Strongwill was invited by the Senate
to shed light in an inquiry relative to the alleged siphoning and diverting of the pork barrel of
members of Congress to non-existent or fictitious projects. Strongwill has been identified in
the news as the principal actor responsible for the scandal, the leader of a nongovernmental organization which ostensibly funnelled the funds to certain local government
projects which existed only on paper. At the start of the hearings before the Senate,
Strongwill refused at once to cooperate. The Senate cited him in contempt and sent him to
jail until he would have seen the light. The Congress, thereafter, adjourned sine die
preparatory to the assumption to office of the newly-elected members. In the meantime,
Strongwill languished behind bars and the remaining senators refused to have him
released, claiming that the Senate is a continuing body and , therefore, he can be detained
indefinitely. Are the senators right? (4%)
VII.
Margie has been in the judiciary for a long time, starting from the lowest court. Twenty (20)
years from her first year in the judiciary, she was nominated as a Justice in the Court of
Appeals. Margie also happens to be a first-degree cousin of the President. The Judicial and
Bar Council included her in the short-list submitted to the President whose term of office
was about to end it was a month before the next presidential elections. Can the President
still make appointments to the judiciary during the so-called midnight appointment ban
period? Assuming that he can still make appointments, could he appoint Margie, his
cousin? (4%)
VIII.
The President, concerned about persistent reports of widespread irregularities and
shenanigans related to the alleged ghost projects with which the pork barrel funds of
members of Congress had been associated, decided not to release the funds authorized
under a Special Appropriations Act for the construction of a new bridge. The Chief
Executive explained that, to pro perly conserve and preserve the limited funds of the
government, as well as to avoid further mistrust by the people, such a project which he
considered as unnecessary since there was an old bridge near the proposed bridge which
was still functional should be scrapped. Does the President have such authority? (4%)
IX.
Gerrymandering refers to the practice of: (1%)
(A) creating or dividing congressional districts in a manner intended to favor a
particular party or candidate
(B) truancy as applied to Members of Congress
(C) loafing among members of Congress
(D) coming up with guessing game when it comes to legislation
(E) commandeering large chunks of the budget for favoured congressional districts
X.
The void-for-vagueness doctrine is a concept which means that: (1%)
(A) if a law is vague, then it must be void
(B) any law which could not be understood by laymen is a nullity
(C) if a law is incomprehensible to ordinary people such that they do not really know
what is required or prohibited, then the law must be struck down
(D) a government regulation that lacks clear standards is nonsensical and useless
as a guide for human conduct
(E) clarity in legal language is a mandate of due process.
XI.
In keeping with the modern age of instant and incessant information and transformation,
Congress passed Cybercrime Prevention Act to regulate access to and use of the amenities
of the cyberspace. While ostensibly the law is intended to protect the interests of society,
some of its provisions were also seen as impermissibly invading and impairing widely
cherished liberties of the people particularly the freedom of expression. Before the law could
even be implemented, petitions were filed in the Supreme Court questioning said provisions
by people who felt threatened, for themselves as well as for the benefit of others who may
be similarly affected but not minded enough to challenge the law. The Solicitor General
countered that there is no basis for the exercise of the power of judicial review since there
has yet been no violation of the law, and therefore, there is no actual case or controversy to
speak of, aside from the fact that the petitioners have no locus standi since they do not
claim to be in imminent danger of being prosecuted under the law. Can the Court proceed
to decide the case even if the law has not yet become effective? (4%)
XII.
The Court had adopted the practice of announcing its decision in important, controversial or
interesting cases the moment the votes had been taken among the justices, even as the
final printed decision and separate opinions are not yet available to the public. In a greatly
anticipated decision in a case of wide-ranging ramifications, the voting was close 8 for the
majority, while 7 were for the other side. After the Court had thus voted, it issued a press
release announcing the result, with the advice that the printed copy of the decision, together
with the separate opinions, were to be issued subsequently. The following day, however,
one of the members of the Court died. The Court then announced that it would deliberate
anew on the case since apparently the one who died belonged to the majority. Citizens for
Transparency, a group of civic-spirited professionals and ordinary citizens dedicated to
transparency and accountability in the government, questioned the act of the Court. The
petitioners claimed the decision had already been validly adopted and promulgated.
Therefore, it could no longer be recalled by the Court. At the same time, the group also
asked the Court to disclose to the public the original decision and the separate opinions of
the magistrates, together with what they had deliberated on just before they came up with
the press release about the 8-7 decision. (6%)
(A) Was the announced 8-7 decision already validly promulgated and thus not
subject to recall?
(B) If the decision was not yet finalized at the time when the justice died, could it still
be promulgated?
(C) If the decision was still being finalized, should the Court release to the public the
majority decision and the separate opinions as originally announced, together with
their deliberations on the issues?
XIII.
Congress may increase the appellate jurisdiction of the Supreme Court: (1%)
(A) anytime it wants
(B) if requested by the Supreme Court
(C) upon recommendation of the President
(D) only with the advice and concurrence of the Supreme Court
(E) whenever it deems it appropriate, advisable or necessary
XIV.
The guarantee of freedom of expression signifies: (1%)
(A) absolute freedom to express oneself
(B) freedom from prior restraint
(C) right to freely speak on anything without limitations
(D) the right of the government to regulate speech
(E) the right of broadcast stations to air any program
XV.
Allmighty Apostles is a relatively new religious group and movement with fast-growing
membership. One time, DeepThroat, an investigative reporter, made a research and study
as to what the groups leader, Maskeraid was actually doing. DeepThroat eventually came
up with the conclusion that Maskeraid was a phony who is just fooling the simple-minded
people to part with their money in exchange for the promise of eternal happiness in some
far -away heaven. This was published in a newspaper which caused much agitation among
the followers of Maskeraid. Some threatened violence against DeepThroat, while some
others already started destroying properties while hurting those selling the newspaper. The
local authorities, afraid of the public disorder that such followers might do, decided to ban
the distribution of the newspaper containing the article. DeepThroat went to court
complaining about the prohibition placed on the dissemination of his article. He claims that
the act of the authorities partakes of the nature of hecklers veto, thus a violation of the
guaranty of press freedom. On th e other hand, the authorities counter that the act was
necessary to protect the public order and the greater interest of the community. If you were
the judge, how would you resolve the issue? (4%)
XVI.
The overbreadth doctrine posits that the government: (1%)
(A) must know the extent of its power
(B) when it exercises too much power it is like someone with bad breath it is not
healthy to society
(C) can enact laws which can reach outside its borders, like long -arm statues
(D) the government is prohibited in banning unprotected speech if a substantial
amount of protected speech is restrained or chilled in the process
XVII.
Towards the end of the year, the Commission on Audit (COA) sought the remainder of its
appropriation from the Department of Budge t and Management (DBM). However, the DBM
refused because the COA had not yet submitted a report on the expenditures relative to the
earlier amount released to it. And, pursuant to the "no report, no release" policy of the DBM,
COA is not entitled to any further releases in the meantime. COA counters that such a
policy contravenes the guaranty of fiscal autonomy granted by the Constitution. Is COA
entitled to receive the rest of its appropriations even without complying with the DBM
policy? (4%)
XVIII.
The National Building Code and its implementing rules provide, inter alia, that operators of
shopping centers and malls should provide parking and loading spaces, in accordance with
a prescribed ratio. The Solicitor General, heeding the call of the public for the provision of
free parking spaces in malls, filed a case to compel said business concerns to discontinue
their practice of collecting parking fees. The mall owners and operators oppose, saying that
this is an invalid taking of their property, thus a violation of due process. The Solicitor
General justifies it, however, claiming that it is a valid exercise of police power. Could the
mall owners and operators be validly compelled to provide free parking to their customers?
(4%)
XIX.
Surveys Galore is an outfit involved in conducting nationwide surveys. In one such survey, it
asked the people about the degree of trust and confidence they had in several institutions of
the government. When the results came in, the judiciary was shown to be less trusted than
most of the government offices. The results were then published by the mass media.
Assension, a trial court judge, felt particularly offended by the news. He then issued a showcause order against Surveys Galore directing the survey entity to explain why it should not
be cited in contempt for coming up with such a survey and publishing the results which were
so unflattering and degrading to the dignity of the judiciary. Surveys Galore immediately
assailed the show-cause order of Judge Assension, arguing that it is violative of the
constitutional guaranty of freedom of expression. Is Surveys Galores petition meritorious?
(4%)
XX.
Under the so-called doctrine of qualified political agency, (1%)
(A) civil servants must first qualify before they could be appointed to office
(B) all employees in the government are merely agents of the people
(C) the acts of subordinates presumptively of those of the heads of offices
disapproves them
(D) members of the Cabinet must have the absolute trust and confidence of the
President
XXI.
Constituent power refers to the authority (1%)
(A) of public officials to command respect
(B) given to Congress to enact police power measures
(C) to propose constitutional amendments or revisions
(D) of the people to take back the power entrusted to those in government
(E) of the President to call out the armed forces to suppress lawless violence
XXII.
The National Power and Grid Corporation (NPGC), a government entity involved in power
generation distribution, had its transmissi on lines traverse some fields belonging to
Farmerjoe. NPGC did so without instituting any expropriation proceedings. Farmerjoe, not
knowing any better, did not immediately press his claim for payment until after ten years
later when a son of his took up Law and told him that he had a right to claim compensation.
That was then the only time that Farmerjoe earnestly demanded payment. When the NPGC
ignored him, he instituted a case for payment of just compensation. In defense, NPGC
pointed out that the claim had already prescribed since under its Charter it is clearly
provided that "actions for damages must be filed within five years after the rights of way,
transmission lines, substations, plants or other facilities shall have been established and
that after said period, no suit shall be brought to question the said rights of way,
transmission lines, substations, plants or other facilities." If you were the lawyer of
Farmerjoe, how would you protect and vindicate the rights of your client? (4%)
XXIII.
The police got a report about a shooting incident during a town fiesta. One person was
killed. The police immediately went to the scene and started asking the people about what
they witnessed. In due time, they were pointed to Edward Gunman, a security guard, as the
possible malefactor. Edward was then having refreshment in one of the eateries when the
police approached him. They asked him if he had a gun to which question he answered yes.
Then they asked if he had seen anybody shot in the vicinity just a few minutes earlier and
this time he said he did not know about it. After a few more questions, one of the policemen
asked Edward if he was the shooter. He said no, but then the policeman who asked him told
him that several witnesses pointed to hi m as the shooter. Whereupon Edward broke down
and started explaining that it was a matter of self-defense. Edwardwas eventually charged
with murder. During his trial, the statements he made to the police were introduced as
evidence against him. He obj ected claiming that they were inadmissible since he was not
given his Miranda rights. On the other hand, the prosecution countered that there was no
need for such rights to be given since he was not yet arrested at the time of the questioning.
If you wer e the judge, how would you rule on the issue? (4%)
XXIV.
Alienmae is a foreign tourist. She was asked certain questions in regard to a complaint that
was filed against her by someone who claimed to have been defrauded by her. Alienmae
answered all the questions asked, except in regard to some matters in which she invoked
her right against self-incrimination. When she was pressed to elucidate, she said that the
questions being asked might tend to elicit incriminating answers insofar as her home state
is concerned. Could Alienmae invoke the right against self-incrimination if the fear of
incrimination is in regard to her foreign law? (4%)
XXV.
Rosebud is a natural-born Filipino woman who got married to Rockcold, a citizen of State
Frozen. By virtue of the laws of Frozen, any person who marries its citizens would
automatically be deemed its own citizen. After ten years of marriage, Rosebud, who has
split her time between the Philippines and Frozen, decided to run for Congress. Her
opponent sought her disqualification, however, claiming that she is no longer a natural-born
citizen. In any event, she could not seek elective position since she never renounced her
foreign citizenship pursuant to the Citizenship Retention and Reacquisition Act (R.A. No.
9225). Is Rosebuddisqualified to run by reason of citizenship? (4%)
XXVI.
The one-year-bar rule in impeachment proceedings is to be reckoned from the time the
(1%)
(A) first impeachment complaint is filed
(B) impeachment complaint is referred to the Committee on Justice
(C) House of Representatives vote on the impeachment complaint
(D) House of Representatives endorses the Articles of Impeachment to the Senate
XXVII.
Congress enacted a law exempting certain government institutions providing social services
from the payment of court fees. Atty. Kristopher Timoteo challenged the constitutionality of
the said law on the ground that only the Supreme Court has the power to fix and exempt
said entities from the payment of court fees.
Congress, on the other hand, argues that the law is constitutional as it has the power to
enact said law for it was through legislative fiat that the Judiciary Development Fund (JDF)
and the Special Allowance for Judges and Justices (SAJJ), the funding of which are
sourced from the fees collected by the courts, were created. Thus, Congress further argues
that if it can enact a law utilizing court fees to fund the JDF and SAJJ, a fortiori it can enact
a law exempting the payment of court fees.
Discuss the constitutionality of the said law, taking into account the arguments of both
parties? (4%)
XXVIII.
From an existing province, Wideland, Congress created a new province, Hundred Isles,
consisting of several islands, with an aggregate area of 500 square kilometres. The law
creating Hundred Isles was duly approved in a plebiscite called for that purpose. Juan, a
taxpayer and a resident of Wideland, assailed the creation of Hundred Isles claiming that it
did not comply with the area requirement as set out in the Local Government Code, i.e., an
area of at least 2,000 square kilometres. The proponents justified the creation, however,
pointing out that the Rules and Regulations Implementing the Local Government Code
states that "the land area requirement shall not apply where the pr oposed province is
composed of one (1) or more islands." Accordingly, since the new province consists of
several islands, the area requirement need not be satisfied. How tenable is the position of
the proponents? (4%)

XXIX.
Ambassador Gaylor is State Juvenus diplomatic representative to State Hinterlands. During
one of his vacations, Ambassador Gaylor decided to experience for himself the sights and
sounds of State Paradise, a country known for its beauty and other attractions. While in
State Paradise, Ambassador Gaylor was caught in the company of children under
suspicious circumstances. He was arrested for violation of the strict anti-pedophilia statute
of State Paradise. He claims that he is immune from arrest and incarceration by virtue of his
diplomatic immunity. Does the claim of Ambassador Gaylor hold water? (4%)
XXX.
Congress passed a law, R.A. No. 15005, creating an administrative Board principally tasked
with the supervision and regulation of legal education. The Board was attached to the
Department of Education. It was empowered, among others, to prescribe minimum
standards for law admission and minimum qualifications of faculty members, the basic
curricula for the course of study aligned to the requirements for admission to the Bar, law
practice and social consciousness, as well as to establish a law practice internship as a
requirement for taking the Bar which a law student shall undergo anytime during the law
course, and to adopt a system of continuing legal education. Professor Boombastick, a
long-time law practitioner and lecturer in several prestigious law schools, assails the
constitutionality of the law arguing; that it encroached on the prerogatives of the Supreme
Court to promulgate rules relative to admission to the pra ctice of law, the Integrated Bar,
and legal assistance to the underprivileged. If you were Professor Boombasticks
understudy, how may you help him develop clear, concise and cogent arguments in support
of his position based on the present Constitution and the decisions of the Supreme Court on
judicial independence and fiscal autonomy? (4%)

LABOR LAW
October 5, 2014
2:00P.M.- 6:00 P.M.

INSTRUCTIONS
1. This Questionnaire contains TWELVE (12) pages including these Instructions pages.
proper numbers.
There are TWENTY-SEVEN (27) Essay and Multiple Choice Questions to be answered
Notebook in the same order the questions are posed. Write your answers only on the front,
not the back, page of every sheet in your Notebook. Note well the allocated percentage
points for each number, question, or sub-question. In your answers, use the numbering
system in the questionnaire.
your ability to apply the law to the given facts, and to reason logically in a lawyer-like
manner to a sound conclusion from the given premises.
4. MCQs are to be answered by writing in your Notebook the capital letter A, B, C, or D
corresponding to your chosen answer.
There is only one correct answer to every MCQ; choose the BEST answer from among the
offered choices. Note that some MCQs may need careful analysis both of the questions and
the choices offered.
NOTEBOOK
Chairman
I.
Linda was employed by Sectarian University (SU) to cook for the members of a religious
order who teach and live inside the campus. While performing her assigned task, Linda
accidentally burned herself. Because of the extent of her injuries, she went on medical
leave. Meanwhile, SU engaged a replacement cook. Linda filed a complaint for illegal
dismissal, but her employer SU contended that Linda was not a regular employee but a
domestic househelp. Decide. (4%)
II.
Lucy was one of approximately 500 call center agents at Hambergis, Inc. She was hired as
a contractual employee four years ago. Her contracts would be for a duration of five (5)
months at a time, usually after a onemonth interval. Her re-hiring was contingent on her
performance for the immediately preceding contract. Six (6) months after the expiration of
her last contract, Lucy went to Hambergis personnel department to inquire why she was not
yet being recalled to work. She was told that her performance during her last contract was
"below average." Lucy seeks your legal advice about her chances of getting her job back.
What will your advice be? (4%)
III.
Lolong Law Firm (LLF), which employs around 50 lawyers and 100 regular staff, suffered
losses for the first time in its history. The management informed its employees that it could
no longer afford to provide them free lunch. Consequently, it announced that a nominal fee
would henceforth be charged. Was LLF justified in withdrawing this benefit which it had
unilaterally been providing to its employees? (1%)
(A) Yes, because it is suffering losses for the first time.

(B) Yes, because this is a management prerogative which is not due to any legal or
contractual obligation.
(C) No, because this amounts to a diminution of benefits which is prohibited by the
Labor Code.
(D) No, because it is a fringe benefit that has already ripened into a demandable
right.
IV.
Linis Manpower, Inc. (LMI) had provided janitorial services to the Philippine Overseas
Employment Administration (POEA) since March 2009. Its service contract was renewed
every three months. However, in the bidding held in June 2012, LMI was disqualified and
excluded. In 2013, six janitors of LMI formerly assigned at POEA filed a complaint for
underpayment of wages. Both LMI and POEA were impleaded as respondents. Should
POEA, a government agency subject to budgetary appropriations from Congress, be held
liable solidarily with LMI for the payment of salary differentials due to the complainant? Cite
the legal basis of your answer. (4%)
V.
Liwayway Glass had 600 rank-and-file employees. Three rival unions A, B, and C
participated in the certification elections ordered by the Med-Arbiter. 500 employees voted.
The unions obtained the following votes: A-200; B-150; C-50; 90 employees voted "no
union"; and 10 were segregated votes. Out of the segregated votes, four (4) were cast by
probationary employees and six (6) were cast by dismissed employees whose respective
cases are still on appeal. (10%)
(A) Should the votes of the probationary and dismissed employees be counted in the
total votes cast for the purpose of determining the winning labor union?
(B) Was there a valid election?
(C) Should Union A be declared the winner?
(D) Suppose the election is declared invalid, which of the contending unions should
represent the rank-and-file employees?
(E) Suppose that in the election, the unions obtained the following votes: A-250; B150; C-50; 40 voted "no union"; and 10 were segregated votes. Should Union A be
certified as the bargaining representative?
VI.
Lina has been working as a steward with a Miami, U.S.A.-based Loyal Cruise Lines for the
past 15 years. She was recruited by a local manning agency, Macapagal Shipping, and was
made to sign a 10-month employment contract everytime she left for Miami. Macapagal
Shipping paid for Linas round-trip travel expenses from Manila to Miami. Because of a food
poisoning incident which happened during her last cruise assignment, Lina was not re-hired.
Lina claims she has been illegally terminated and seeks separation pay. If you were the
Labor Arbiter handlingthe case, how would you decide? (4%)
VII.
Non-lawyers can appear before the Labor Arbiter if: (1%)
(A) they represent themselves
(B) they are properly authorized to represent their legitimate labor organization or
member thereof
(C) they are duly-accredited members of the legal aid office recognized by the DOJ
or IBP
(D) they appear in cases involving an amount of less than Php5,000
VIII.
As a result of a bargaining deadlock between Lazo Corporation and Lazo Employees Union,
the latter staged a strike. During the strike, several employees committed illegal acts.
Eventually, its members informed the company of their intention to return to work. (6%)
(A) Can Lazo Corporation refuse to admit the strikers?
(B) Assuming the company admits the strikers, can it later on dismiss those
employees who committed illegal acts?
(C) If due to prolonged strike, Lazo Corporation hired replacements, can it refuse to
admit the replaced strikers?
IX.
Luisa Court is a popular chain of motels. It employs over 30 chambermaids who, among
others, help clean and maintain the rooms. These chambermaids are part of the union rankand-file employees which has an existing collective bargaining agreement (CBA) with the
company. While the CBA was in force, Luisa Court decided to abolish the position of
chambermaids and outsource the cleaning of the rooms to Malinis Janitorial Services, a
bona fide independent contractor which has invested in substantial equipment and sufficient
manpower. The chambermaids filed a case of illegal dismissal against Luisa Court. In
response, the company argued that the decision to outsource resulted from the new
managements directive to streamline operations and save on costs. If you were the Labor
Arbiter assigned to the case, how would you decide? (4%)

X.
Luisa was hired as a secretary by the Asian Development Bank (ADB) in Manila. Luisas
first boss was a Japanese national whom she got along with. But after two years, the latter
was replaced by an arrogant Indian national who did not believe her work output was in
accordance with international standards. One day, Luisa submitted a draft report filled with
typographical errors to her boss. The latter scolded her, but Luisa verbally fought back. The
Indian boss decided to terminate her services right then and there. Luisa filed a case for
illegal dismissal with the Labor Arbiter claiming arbitrariness and denial of due process. If
you were the Labor Arbiter, how would you decide the case? (4%)
XI.
Lionel, an American citizen whose parents migrated to the U.S. from the Philippines, was
hired by JP Morgan in New York as a call center specialist. Hearing about the phenomenal
growth of the call center industry in his parents native land, Lionel sought and was granted
a transfer as a call center manager for JP Morgans operations in Taguig City.
Lionelsemployment contract did not specify a period for his stay in the Philippines. After
three years of working in the Philippines, Lionel was advised that he was being recalled to
New York and being promoted to the position of director of international call center
operations. However, because of certain "family reasons," Lionel advised the company of
his preference to stay in the Philippines. He was dismissed by the company. Lionel now
seeks yo ur legal advice on: (6%)
(A) whether he has a cause of action
(B) whether he can file a case in the Philippines
(C) what are his chances of winning
XII.
Which of the following groups does not enjoy the right to selforganization? (1%)
(A) those who work in a non-profit charitable institution
(B) those who are paid on a piece-rate basis
(C) those who work in a corporation with less than 10 employees
(D) those who work as legal secretaries
XIII.
Don Luis, a widower, lived alone in a house with a large garden. One day, he noticed that
the plants in his garden needed trimming. He remembered that Lando, a 17-year old out-ofschool youth, had contacted him in church the other day looking for work. He contacted
Lando who immediately attended to Don Luiss garden a nd finished the job in three days.
(4%)
(A) Is there an employer-employee relationship between Don Luis and Lando?
(B) Does Don Luis need to register Lando with the Social Security System (SSS)?
XIV.
Luisito has been working with Lima Land for 20 years. Wanting to work in the public sector,
Luisito applied with and was offered a job at Livecor. Before accepting the offer, he wanted
to consult you whether the payments that he and Lima Land had made to the Social
Security System (SSS) can be transferred or credited to the Government Service Insurance
System (GSIS). What would you advice? (4%)
XV.
Our Lady of Peace Catholic School Teachers and Employees Labor Union (OLPCS-TELU)
is a legitimate labor organization composed of vice principals, department heads,
coordinators, teachers, and non-teaching personnel of Our Lady of Peace Catholic School
(OLPCS).
OLPCS-TELU subsequently filed a petition for certification election among the teaching and
non-teaching personnel of OLPCS before the Bureau of Labor Relations (BLR) of the
Department of Labor and Employment (DOLE). The Med-Arbiter subsequently granted the
petition and ordered the conduct of a joint certification election for the teaching and nonteaching personnel of OLPCS.
May OLPCS-TELU be considered a legitimate labor organization? (5%)
XVI.
Samahang East Gate Enterprises (SEGE) is a labor organization composed of the rankand-file employees of East Gate Enterprises (EGE), the leading manufacturer of all types of
gloves and aprons.
EGE was later requested by SEGE to bargain collectively for better terms and conditions of
employment of all the rank -and-file employees of EGE. Consequently, EGE filed a petition
for certification election before the Bureau of Labor Relations (BLR).
During the proceedings, EGE insisted that it should participate in the certification process.
EGE reasoned that since it was the one who filed the petition and considering that the
employees concerned were its own rankand-file employees, it should be allowed to take an
active part in the certification process.
Is the contention of EGE proper? Explain. (5%)

XVII.
Philhealth is a government-owned and controlled corporation employing thousands of
Filipinos. Because of the desire of the employees of Philhealth to obtain better terms and
conditions of employment from the government, they formed the Philhealth Employees
Association (PEA) and demanded Philhealth to enter into negotiations with PEA regarding
terms and conditions of employment which are not fixed by law. (4%)
(A) Are the employees of Philhealth allowed to self-organize and form PEA and
thereafter demand Philhealth to enter into negotiations with PEA for better terms and
conditions of employment?
(B) In case of unresolved grievances, can PEA resort to strikes, walkouts, and other
temporary work stoppages to pressure the government to accede to their demands?
XVIII.
The procedural requirements of a valid strike include: (1%)
(A) a claim of either unfair labor practice or deadlock in collective bargaining
(B) notice of strike filed at least 15 days before a ULP-grounded strike or at least 30
days prior to the deadlock in a bargaining grounded strike
(C) majority of the union membership must have voted to stage the strike with notice
thereon furnished to the National Conciliation and Mediation Board (NCMB) at least
24 hours before the strike vote is taken
(D) strike vote results must be furnished to the NCMB at least seven (7) days before
the intended strike
XIX.
Lincoln was in the business of trading broadcast equipment used by television and radio
networks. He employed Lionel as his agent. Subsequently, Lincoln set up Liberty
Communications to formally engage in the same business. He requested Lionel to be one of
the incorporators and assigned to him 100 Liberty shares. Lionel was also given the title
Assistant Vice-President for Sales and Head of Technical Coordination. After several
months, there were allegations that Lionel was engaged in "under the table dealings" and
received "confidential commissions" from Libertys clients and suppliers. He was, therefore,
charged with serious misconduct and willful breach of trust, and was given 48 hours to
present his explanation on the charges. Lionel was unable to comply with the 48 -hour
deadline and was subsequently barred from entering company premises. Lionel then filed a
complaint with the Labor Arbiter claiming constructive dismissal. Among others, the
company sought the dismissal of the complaint alleging that the case involved an intra-
corporate controversy which was within the jurisdiction of the Regional Trial Court (RTC).
If you were the Labor Arbiter assigned to the case, how would you rule on the companys
motion to dismiss? (5%)
XX.
Lito was anticipating the bonus he would receive for 2013. Aside from the 13th month pay,
the company has been awarding him and his other co-employees a two to three months
bonus for the last 10 years. However, because of poor over-all sales performance for the
year, the company unilaterally decided to pay only a one month bonus in 2013. Is Litos
employer legally allowed to reduce the bonus? (4%)
XXI.
An accidental fire gutted the JKL factory in Caloocan. JKL decided to suspend operations
and requested its employees to stop reporting for work. After six (6) months, JKL resumed
operations but hired a new set of employees. The old set of employees filed a case for
illegal dismissal. If you were the Labor Arbiter, how would you decide the case? (4%)
XXII.
Despite a reinstatement order, an employer may choose not to reinstate an employee if:
(1%)
(A) there is a strained employer-employee relationship
(B) the position of the employee no longer exists
(C) the employers business has been closed
(D) the employee does not wish to be reinstated.
XXIII.
Luningning Foods engaged the services of Lamitan Manpower, Inc., a bona fide
independent contractor, to provide "tasters" that will check on food quality. Subsequently,
these "tasters" joined the union of rank -and-file employees of Luningning and demanded
that they be made regular employees of the latter as they are performing functions
necessary and desirable to operate the companys business. Luningning rejected the
demand for regularization. On behalf of the "tasters", the union then filed a notice of strike
with the Department of Labor and Employment (DOLE). In response, Luningning sought a
restraining order from the Regional Trial Court (RTC) arguing that the DOLE does not have
jurisdiction over t he case since it does not have an employer-employee relationship with
the employees of an independent contractor. If you were the RTC judge, would you issue a
restraining order against the union? (4%)
XXIV.
Lanz was a strict and unpopular Vice-President for Sales of Lobinsons Land. One day, Lanz
shouted invectives against Lee, a poor performing sales associate, calling him, among
others, a "brown monkey." Hurt, Lee decided to file a criminal complaint for grave
defamation against Lanz. The prosecutor found probable cause and filed an information in
court. Lobinsons decided to terminate Lanz for committing a potential crime and other illegal
acts prejudicial to business. Can Lanz be legally terminated by the company on these
grounds? (4%)
XXV.
Lizzy Lu is a sales associate for Luna Properties. The latter is looking to retrench Lizzy and
five other sales associates due to financial losses. Aside from a basic monthly salary, Lizzy
and her colleagues receive commissions on the sales they make as well as cost of living
and representation allowances. In computing Lizzys separation pay, Luna Properties
should consider her: (1%)
(A) monthly salary only
(B) monthly salary plus sales commissions
(C) monthly salary plus sales commissions, plus cost of living allowance
(D) monthly salary plus sales commissions, plus cost of living allowance and
representation allowance
XXVI.
Liwanag Corporation is engaged in the power generation business. A stalemate was
reached during the collective bargaining negotiations between its management and the
union. After following all the requisites provided by law, the union decided to stage a strike.
The management sought the assistance of the Secretary of Labor and Employment, who
assumed jurisdiction over the strike and issued a return-to-work order. The union defied the
latter and continued the strike. Without providing any notice, Liwanag Corporation declared
everyone who participated in the strike as having lost their employment. (4%)
(A) Was Liwanag Corporations action valid?
(B) If, before the DOLE Secretary assumed jurisdiction, the striking union members
communicated in writing their desire to return to work, which offer Liwanag
Corporation refused to accept, what remedy, if any, does the union have?
XXVII.
The jurisdiction of the National Labor Relations Commission does not include: (1%)
(A) exclusive appellate jurisdiction over all cases decided by the Labor Arbiter
(B) exclusive appellate jurisdiction over all cases decided by Regional Directors or
hearing officers involving the recovery of wages and other monetary claims and
benefits arising from employer-employee relations where the aggregate money claim
of each does not exceed five thousand pesos (Php5,000)
(C) original jurisdiction to act as a compulsory arbitration body over labor disputes
certified to it by the Regional Directors
(D) power to issue a labor injunction
---ooo0ooo---

TAXATION LAW
October 12, 2014
2:00 P.M.- 6:00 P.M.

INSTRUCTIONS
1. This Questionnaire contains THIRTEEN (13) pages including these Instructions pages.
proper numbers.
There are TWENTY-NINE (29) Essay and Multiple Choice Questions (MCQs) to be
answered within four (4) hours.
The essay portion contains questions that are equivalent to not less than 80% of the whole
examination, while the MCQ portion contains questions equivalent to not more than 20%.
Notebook in the same order the questions are posed. Write your answers only on
the front, not the back, page of every sheet in your Notebook. Note well the allocated
percentage points for each number, question, or sub-question. In your answers, use the
numbering system in the questionnaire.
your ability to apply the law to the given facts, and to reason logically in a lawyer-like
manner to a sound conclusion from the given premises.
be given any credit.Thus, always briefly but fully explain your answers although the question
does not expressly ask for an explanation.At the same time, remember that a complete
explanation does not require that you volunteer information or discuss legal doctrines that
are not necessary or pertinent to the solution to the problem. You do not need to re-write or
repeat the question in your Notebook.
4. MCQs are to be answered by writing in your Notebook the capital letter A, B, C, D, or E
corresponding to your chosen answer. There is only one correct answer to every MCQ;
choose the BEST answer from among the offered choices. Note that some MCQs may
need careful analysis both of the questions and the choices offered.
NOTEBOOK
Chairman
I.
On March 27, 2012, the Bureau of Internal Revenue (BIR) issued a notice of assessment
against Blue Water Industries Inc. (BWI), a domestic corporation, informing the latter of its
alleged deficiency corporate income tax for the year 2009. On April 20, 2012, BWI filed a
letter protest before the BIR contesting said assessment and demanding that the same be
cancelled or set aside.
However, on May 19, 2013, that is, after more than a year from the filing of the letter
protest, the BIR informed BWI that the latters letter protest was denied on the ground that
the assessment had already become final, executory and demandable. The BIR reasoned
that its failure to decide the case within 180 days from filing of the letter protest should have
prompted BWI to seek recourse before the Court of Tax Appeals (CTA) by filing a petition
for review within thirty (30) days after the expiration of the 180-day period as mandated by
the provisions of the last paragraph of Section 228 of the National Internal Revenue Code
(NIRC). Accordingly, BWIs failure to file a petition for review before the CTA rendered the
assessment final, executory and demandable. Is the contention of the BIR correct? Explain.
(5%)
II.
Mr. De Sarapen is a candidate in the upcoming Senatorial elections. Mr. De Almacen,
believing in the sincerity and ability of Mr. De Sarapen to introduce much needed reforms in
the country, contributed P500,000.00 in cash to the campaign chest of Mr. De Sarapen. In
addition, Mr. De Almacen purchased tarpaulins, t-shirts, umbrellas, caps and other
campaign materials that he also donated to Mr. De Sarapen for use in his campaign. Is the
contribution of cash and campaign materials subject to donors tax? (4%)
III.
Dr. Taimtim is an alumnus of the College of Medicine of Universal University (UU), a
privately-owned center for learning which grants yearly dividends to its stockholders.
UU has a famous chapel located within the campus where the old folks used to say that
anyone who wanted to pass the medical board examinations should offer a dozen roses on
all the Sundays of October. This was what Dr. Taimtim did when he was still reviewing for
the board examinations. In his case, the folk saying proved to be true because he is now a
successful cardiologist. Wanting to give back to the chapel and help defray the costs of its
maintenance, Dr. Taimtim donated P50,000.00 to the caretakers of the chapel which was
evidenced by an acknowledgment receipt.
In computing his net taxable income, can Dr.Taimtim use his donation to the chapel as an
allowable deduction from his gross income under the National Internal Revenue Code
(NIRC)? (4%)
IV.
Gangwam Corporation (GC) filed its quarterly tax returns for the calendar year 2012 as
follows:
First quarter - April 25, 2012
Second quarter - July 23, 2012
Third quarter - October 25, 2012
Fourth quarter - January 27, 2013
On December 22, 2013, GC filed with the Bureau of Internal Revenue (BIR) an
administrative claim for refund of its unutilized input Value-Added Tax (VAT) for the
calendar year 2012. After several months of inaction by the BIR on its claim for refund, GC
decided to elevate its claim directly to the Court of Tax Appeals (CTA) on April 22, 2014.
In due time, the CTA denied the tax refund relative to the input VAT of GC for the first
quarter of 2012, reasoning that the claim was filed beyond the two-year period prescribed
under Section 112(A) of the National Internal Revenue Code (NIRC).
(A) Is the CTA correct? (3%)
(B) Assuming that GC filed its claim before the CTA on February 22, 2014, would
your answer be the same? (3%)
V.
The City of Liwliwa assessed local business taxes against Talin Company. Claiming that
there is double taxation, Talin Company filed a Complaint for Refund or Recovery of Illegally
and/or Erroneously-collected Local Business Tax; Prohibition with Prayer to Issue
Temporary Restraining Order and Writ of Preliminary Injunction with the Regional Trial
Court (RTC). The RTC denied the application for a Writ of Preliminary Injunction. Since its
motion for reconsideration was denied, Talin Company filed a special civil action for
certiorari with the Court of Appeals (CA). The government lawyer representing the City of
Liwliwa prayed for the dismissal of the petition on the ground that the same should have
been filed with the Court of Tax Appeals (CTA). Talin Company, through its lawyer, Atty.
Frank, countered that the CTA cannot entertain a petition for certiorari since it is not one of
its powers and authorities under existing laws and rules.
Decide. (5%)
VI.
Choose the correct answer. Smuggling - (1%)
(A) does not extend to the entry of imported or exported articles by means of any
false or fraudulent invoice, statement or practices; the entry of goods at less than the
true weight or measure; or the filing of any false or fraudulent entry for the payment
of drawback or refund of duties.
(B) is limited to the import of contraband or highly dutiable cargo beyond the reach of
customs authorities.
(C) is committed by any person who shall fraudulently import or bring into the
Philippines, or assist in so doing, any article, contrary to law, or shall receive,
conceal, buy, sell or any manner facilitate the transportation, concealment or sale of
such article after importation, knowing the same to have been imported contrary to
law.
VII.
In accordance with the Local Government Code (LGC), the Sangguniang Panglungsod (SP)
of Baguio City enacted Tax Ordinance No. 19, Series of 2014, imposing a P50.00 tax on all
the tourists and travellers going to Baguio City. In imposing the local tax, the SP reasoned
that the tax collected will be used to maintain the cleanliness of Baguio City and for the
beautification of its tourist attractions. (D) is punishable by administrative penalty only.
Claiming the tax to be unjust, Baguio Travellers Association (BTA), an association of travel
agencies in Baguio City, filed a petition for declaratory relief before the Regional Trial Court
(RTC) because BTA was apprehensive that tourists might cancel their bookings with BTAs
member agencies. BTA also prayed for the issuance of a Temporary Restraining Order
(TRO) to enjoin Baguio City from enforcing the local tax on their customers and on all
tourists going to Baguio City.
The RTC issued a TRO enjoining Baguio City from imposing the local tax. Aggrieved,
Baguio City filed a petition for certiorari before the Supreme Court (SC) seeking to set aside
the TRO issued by the RTC on the ground that collection of taxes cannot be enjoined. Will
the petition prosper? (5%)
VIII.
Masarap Kumain, Inc. (MKI) is a Value-Added Tax (VAT)-registered company which has
been engaged in the catering business for the past 10 years. It has invested a substantial
portion of its capital on flat wares, table linens, plates, chairs, catering equipment, and
delivery vans. MKI sold its first delivery van, already 10 years old and idle, to Magpapala
Gravel and Sand Corp. (MGSC), a corporation engaged in the business of buying and
selling gravel and sand. The selling price of the delivery van was way below its acquisition
cost. Is the sale of the delivery van by MKI to MGSC subject to VAT? (4%)
IX.
Mr. Gipit borrowed from Mr. Maunawain P100,000.00, payable in five (5) equal monthly
installments. Before the first installment became due, Mr. Gipit rendered general cleaning
services in the entire office building of Mr. Maunawain, and as compensation therefor, Mr.
Maunawain cancelled the indebtedness of Mr. Gipit up to the amount of P75,000.00. Mr.
Gipit claims that the cancellation of his indebtedness cannot be considered as gain on his
part which must be subject to income tax, because according to him, he did not actually
receive payment from Mr. Maunawain for the general cleaning services. Is Mr. Gipit correct?
Explain. (4%)
X.
Which of the following is an exclusion from gross income? (1%)
(A) Salaries and wages
(B) Cash dividends

(C) Liquidating dividends after dissolution of a corporation
(D) De minimis benefits
(E) Embezzled money
XI.
Triple Star, a domestic corporation, entered into a Management Service Contract with
Single Star, a non-resident foreign corporation with no property in the Philippines. Under the
contract, Single Star shall provide managerial services for Triple Stars Hongkong branch.
All said services shall be performed in Hongkong.
Is the compensation for the services of Single Star taxable as income from sources within
the Philippines? Explain. (4%)
XII.
Which of the following should not be claimed as deductions from gross income? (1%)
(A) discounts given to senior citizens on certain goods and services.
(B) advertising expense to maintain some form of goodwill for the taxpayers
business.
(C) salaries and bonuses paid to employees.
(D) interest payment on loans for the purchase of machinery and equipment used in
business.
XIII.
Hopeful Corporation obtained a loan from Generous Bank and executed a mortgage on its
real property to secure the loan. When Hopeful Corporation failed to pay the loan, Generous
Bank extrajudicially foreclosed the mortgage on the property and acquired the same as the
highest bidder. A month after the foreclosure, Hopeful Corporation exercised its right of
redemption and was able to redeem the property. Is Generous Bank liable to pay capital
gains tax as a result of the foreclosure sale? Explain. (4%)
XIV.
Mr. X, a Filipino residing in Alabama, U.S.A., died on January 2, 2013 after undergoing a
major heart surgery. He left behind to his wife and two (2) kids several properties, to wit:
(4%)
(1) Family home in Makati City;

(2) Condominium unit in Las Pias City;
(3) Proceeds of health insurance from Take Care, a health maintenance organization
in the Philippines; and
(4) Land in Alabama, U.S.A.
The following expenses were paid:
(1) Funeral expenses;
(2) Medical expenses; and
(3) Judicial expenses in the testate proceedings.
(A) What are the items that must be considered as part of the gross estate income of
Mr. X?
(B) What are the items that may be considered as deductions from the gross estate?
XV.
When is a pre-assessment notice required under the following cases? (1%)
(A) When the finding for any deficiency tax is the result of mathematical error in the
computation of the tax as appearing on the face of the return.
(B) When a discrepancy has been determined between the tax withheld and the
amount actually remitted by the withholding agent.
(C) When the excise tax due on excisable articles has been paid.
(D) When an article locally purchased or imported by an exempt person, such as, but
not limited to vehicles, capital equipment, machineries and spare parts, has been
sold, traded or transferred to non-exempt persons.
XVI.
Mr. Tiaga has been a law-abiding citizen diligently paying his income taxes. On May 5,
2014, he was surprised to receive an assessment notice from the Bureau of Internal
Revenue (BIR) informing him of a deficiency tax assessment as a result of a mathematical
error in the computation of his income tax, as appearing on the face of his income tax return
for the year 2011, which he filed on April 15, 2012. Mr. Tiaga believes that there was no
such error in the computation of his income tax for the year 2011. Based on the assessment
received by Mr. Tiaga, may he already file a protest thereon? (4%)

XVII.
In a civil case for Annulment of Contract of Sale, plaintiff Ma. Reklamo presented in
evidence the Contract of Sale which she sought to be annulled. No documentary stamp tax
on the Contract of Sale was paid because according to plaintiff Ma. Reklamo, there was no
need to pay the same since the sale was not registered with the Register of Deeds. Plaintiff
Ma. Reklamo is now offering the Contract of Sale as her evidence. Is the Contract of Sale
admissible? (4%)
XVIII.
Madam X owns real property in Caloocan City. On July 1, 2014, she received a notice of
assessment from the City Assessor, informing her of a deficiency tax on her property. She
wants to contest the assessment. (4%)
(A) What are the administrative remedies available to Madam X in order to contest
the assessment and their respective prescriptive periods?
(B) May Madam X refuse to pay the deficiency tax assessment during the pendency
of her appeal?
XIX.
The Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No.
65-2012 imposing Value-Added Tax (VAT) on association dues and membership fees
collected by condominium corporations from its member condominium-unit owners. The
RMCs validity is challenged before the Supreme Court (SC) by the condominium
corporations.
The Solicitor General, counsel for BIR, claims that association dues, membership fees, and
other assessment/charges collected by a condominium corporation are subject to VAT
since they constitute income payments or compensation for the beneficial services it
provides to its members and tenants.
On the other hand, the lawyer of the condominium corporations argues that such dues and
fees are merely held in trust by the condominium corporations exclusively for their members
and used solely for administrative expenses in implementing the condominium corporations
purposes. Accordingly, the condominium corporations do not actually render services for a
fee subject to VAT.
Whose argument is correct? Decide. (5%)
XX.
During his lifetime, Mr. Sakitin obtained a loan amounting to P10 million from Bangko Uno
for the purchase of a parcel of land located in Makati City, using such property as collateral
for the loan. The loan was evidenced by a duly notarized promissory note. Subsequently,
Mr. Sakitin died. At the time of his death, the unpaid balance of the loan amounted to P2
million. The heirs of Mr. Sakitin deducted the amount of P2 million from the gross estate, as
part of the "Claims against the Estate." Such deduction was disallowed by the Bureau of
Internal Revenue (BIR) Examiner, claiming that the mortgaged property was not included in
the computation of the gross estate. Do you agree with the BIR? Explain. (4%)
XXI.
On August 31, 2014, Haelton Corporation (HC), thru its authorized representative Ms.
Pares, sold a 16-storey commercial building known as Haeltown Building to Mr. Belly for
P100 million. Mr. Belly, in turn, sold the same property on the same day to Bell Gates, Inc.
(BGI) for P200 million. These two (2) transactions were evidenced by two (2) separate
Deeds of Absolute Sale notarized on the same day by the same notary public.
Investigations by the Bureau of Internal Revenue (BIR) showed that:
(1) the Deed of Absolute Sale between Mr. Belly and BGI was notarized ahead of the sale
between HC and Mr. Belly; (2) as early as May 17, 2014, HC received P40 million from BGI,
and not from Mr. Belly; (3) the said payment of P40 million was recorded by BGI in its books
as of June 30, 2014 as investment in Haeltown Building; and (4) the substantial portion of
P40 million was withdrawn by Ms. Pares through the declaration of cash dividends to all its
stockholders.
Based on the foregoing, the BIR sent Haeltown Corporation a Notice of Assessment for
deficiency income tax arising from an alleged simulated sale of the aforesaid commercial
building to escape the higher corporate income tax rate of thirty percent (30%). What is the
liability of Haeltown Corporation, if any? (4%)
XXII.
Choose the correct answer. Double Taxation - (1%)
(A) is one of direct duplicate taxations wherein two (2) taxes must be imposed on the
same subject matter, by the same taxing authority, within the same jurisdiction,
during the same period, with the same kind or character of tax, even if the purposes
of imposing the same are different.
(B) is forbidden by law; and therefore, it is a valid defense against the validity of a tax
measure.
(C) means taxing the same property twice when it should be taxed only once; it is
tantamount to taxing the same person twice by the same jurisdiction for the same
thing.
(D) exists when a corporation is assessed with local business tax as a manufacturer,
and at the same time, value-added tax as a person selling goods in the course of
trade or business.
XXIII.
Choose the correct answer. Tax Avoidance (1%)
(A) is a scheme used outside of those lawful means and, when availed of, it usually
subjects the taxpayer to further or additional civil or criminal liabilities.
(B) is a tax saving device within the means sanctioned by law.
(C) is employed by a corporation, the organization of which is prompted more on the
mitigation of tax liabilities than for legitimate business purpose.
(D) is any form of tax deduction scheme, regardless if the same is legal or not.
XXIV.
A, B, and C, all lawyers, formed a partnership called ABC Law Firm so that they can
practice their profession as lawyers. For the year 2012, ABC Law Firm received earnings
and paid expenses, among which are as follows: (6%)
Earnings:
(1) Professional/legal fees from various clients
(2) Cash prize received from a religious society in recognition of the exemplary
service of ABC Law Firm
(3) Gains derived from sale of excess computers and laptops
Payments:
(1) Salaries of office staff
(2) Rentals for office space
(3) Representation expenses incurred in meetings with clients
(A) What are the items in the above mentioned earnings which should be included in
the computation of ABC Law Firms gross income? Explain.
(B) What are the items in the above-mentioned payments which may be considered
as deductions from the gross income of ABC Law Firm? Explain.
(C) If ABC Law Firm earns net income in 2012, what, if any, is the tax consequence
on the part of ABC Law Firm insofar as the payment of income tax is concerned?
What, if any, is the tax consequence on the part of A, B, and C as individual

partners, insofar as the payment of income tax is concerned?
XXV.
Which of the following transactions is subject to Value-Added Tax (VAT)? (1%)
(A) Sale of shares of stock-listed and traded through the local stock exchange
(B) Importation of personal and household effects belonging to residents of the
Philippines returning from abroad subject to custom duties under the Tariff and
Customs Code
(C) Services rendered by individuals pursuant to an employeremployee relationship
(D) Gross receipts from lending activities by credit or multi-purpose cooperatives
duly registered with the Cooperative Development Authority
XXVI.
Freezy Corporation, a domestic corporation engaged in the manufacture and sale of ice
cream, made payments to an officer of Frosty Corporation, a competitor in the ice cream
business, in exchange for said officers revelation of Frosty Corporations trade secrets.
May Freezy Corporation claim the payment to the officer as deduction from its gross
income? Explain. (4%)
XXVII.
In January 2013, your friend got his first job as an o ffice clerk. He is single and lives with
his family who depends upon him for financial support. His parents have long retired from
their work, and his two (2) siblings are still minors and studying in grade school. In February
2014, he consulted you as he wanted to comply with all the rules pertaining to the
preparation and filing of his income tax return. He now asks you the following:
(A) Is he entitled to personal exemptions? If so, how much? (1%)
(B) Is he entitled to additional exemptions? If so, how much? (1%)
(C) What is the effect of the taxes withheld from his salaries on his taxable income?
(2%)
XXVIII.
Choose the correct answer. Tax laws - (1%)
(A) may be enacted for the promotion of private enterprise or business for as long as
it gives incidental advantage to the public or the State

(B) are inherently legislative; therefore, may not be delegated
(C) are territorial in nature; hence, they do not recognize the generally-accepted
tenets of international law
(D) adhere to uniformity and equality when all taxable articles or kinds of property of
the same class are taxable at the same rate
XXIX.
Doa Evelina, a rich widow engaged in the business of currency exchange, was assessed a
considerable amount of local business taxes by the City Government of Bagnet by virtue of
Tax Ordinance No. 24. Despite her objections thereto, Doa Evelina paid the taxes.
Nevertheless, unsatisfied with said Tax Ordinance, Doa Evelina, through her counsel Atty.
ELP, filed a written claim for recovery of said local business taxes and contested the
assessment. Her claim was denied, and so Atty. ELP elevated her case to the Regional
Trial Court (RTC).
The RTC declared Tax Ordinance No. 24 null and void and without legal effect for having
been enacted in violation of the public ation requirement of tax ordinances and revenue
measures under the Local Government Code (LGC) and on the ground of double taxation.
On appeal, the Court of Tax Appeals (CTA) affirmed the decision of the RTC. No motion for
reconsideration was filed and the decision became final and executory. (4%)
(A) If you are Atty. ELP, what advice will you give Doa Evelina so that she can
recover the subject local business taxes?
(B) If Doa Evelina eventually recovers the local business taxes, must the same be
considered as income taxable by the national government?
---ooo0ooo---

CIVIL LAW
October 12, 2014
8:00 A.M.- 12:00 N.N.

INSTRUCTIONS
1. This Questionnaire contains FOURTEEN (14) pages including these Instructions pages.
proper numbers.
There are THIRTY (30) Essay and Multiple Choice Questions (MCQs) to be answered
The essay portion contains questions that are equivalent to not less than 80% of the whole
examination, while the MCQ portion contains questions equivalent to not more than 20%.
Notebook in the same order the questions are posed. Write your answers only on
the front, not the back, page of every sheet in your Notebook. Note well the allocated
percentage points for each number, question, or subquestion. In your answers, use the
numbering system in the questionnaire.
your ability to apply the law to the given facts, and to reason logically in a lawyerlike manner
to a sound conclusion from the given premises.
4. MCQs are to be answered by writing in your Notebook the capital letter A, B, C, or D
corresponding to your chosen answer. There is only one correct answer to every MCQ;
choose the BEST answer from among the offered choices. Note that some MCQs may
need careful analysis both of the questions and the choices offered.
NOTEBOOK
Chairman
I.
Ariz and Paz were officemates at Perlas ng Silangan Bank (PSB). They fell in love with
each other and had a civil and church wedding. Meanwhile, Paz rapidly climbed the
corporate ladder of PSB and eventually became its Vice President, while Ariz remained one
of its bank supervisors, although he was short of 12 units to finish his Masters of Business
Administration (MBA) degree.
Ariz became envious of the success of his wife. He started to drink alcohol until he became
a drunkard. He preferred to join his "barkadas"; became a wifebeater; would hurt his
children without any reason; and failed to contribute to the needs of the family. Despite
rehabilitation and consultation with a psychiatrist, his ways did not change.
After 19 years of marriage, Paz, a devout Catholic, decided to have their marriage annulled
by the church. Through the testimony of Paz and a psychiatrist, it was found that Ariz was a
spoiled brat in his youth and was sometimes involved in brawls. In his teens, he was once
referred to a psychiatrist for t reatment due to his violent tendencies. In due time, the
National Appellate Matrimonial Tribunal (NAMT) annulled the union of Ariz and Paz due to
the failure of Ariz to perform and fulfill his duties as a husband and as a father to their
children. The NAMT concluded that it is for the best interest of Paz, Ariz and their children
to have the marriage annulled.
In view of the NAMT decision, Paz decided to file a Petition for Declaration of Nullity of
Marriage of their civil wedding before the Regional Trial Court (RTC) of Makati City using
the NAMT decision and the same evidence adduced in the church annulment proceedings
as basis.
If you are the judge, will you grant the petition? Explain. (5%)
II.
Crispin died testate and was survived by Alex and Josine, his children from his first wife;
Rene and Ruby, his children from his second wife; and Allan, Bea, and Cheska, his children
from his third wife.
One important provision in his will reads as follows:
"Ang lupa at bahay sa Lungsod ng Maynila ay ililipat at ilalagay sa pangalan nila Alex at
Rene hindi bilang pamana ko sa kanila kundi upang pamahalaan at pangalagaan lamang
nila at nang ang sinuman sa aking mga anak, sampu ng aking mga apo at kaapuapuhan ko
sa habang panahon, ay may tutuluyan kung magnanais na mag-aral sa Maynila o sa kalapit
na mga lungsod."
Is the provision valid? (4%)
III.
The Roman Catholic Church accepted a donation of a real property located in Lipa City. A
deed of donation was executed, signed by the donor, Don Mariano, and the donee, the
Church, as represented by Fr. Damian. Before the deed could be notarized, Don Mariano
died. Is the donation valid? (4%)
IV.
Nante, a registered owner of a parcel of land in Quezon City, sold the property to Monica
under a deed of sale which reads as follows:
"That for and in consideration of the sum of P500,000.00, value to be paid and delivered to
me, and receipt of which shall be acknowledged by me to the full satisfaction of Monica,
referred to as Vendee, I hereby sell, transfer, cede, convey, and assign, as by these
presents, I do have sold, transferred, ceded, conveyed and assigned a parcel of land
covered by TCT No. 2468 in favor of the Vendee."
After delivery of the initial payment of P100,000.00, Monica immediately took possession of
the property. Five (5) months after, Monica failed to pay the remaining balance of the
purchase price. Nante filed an action for the recovery of possession of the property. Nante
alleged that the agreement was one to sell,which was not consummated as the full contract
price was not paid. Is the contention of Nante tenable? Why? (4%)
V.
What is the effect of preterition ? (1%)
(A) It annuls the devise and legacy
(B) It annuls the institution of heir
(C) It reduces the devise and legacy
(D) It partially annuls the institution of heir
VI.
Miko and Dinah started to live together as husband and wife without the benefit of marriage
in 1984. Ten (10) years after, they separated. In 1996, they decided to live together again,
and in 1998, they got married.

On February 17, 2001, Dinah filed a complaint for declaration of nullity of her marriage with
Miko on the ground of psychological incapacity under Article 36 of the Family Code. The
court rendered the following decision:
"1. Declaring the marriage null and void;
2. Dissolving the regime of absolute community of property; and
3. Declaring that a decree of absolute nullity of marriage shall only be issued after
liquidation, partition and distribution of the parties properties under Article 147 of the Family
Code."
Dinah filed a motion for partial reconsideration questioning the portion of the decision on the
issuance of a decree of nullity of marriage only after the liquidation, partition and distribution
of properties under Article 147 of the Code.
If you are the judge, how will you decide petitioners motion for partial reconsideration?
Why? (4%)
VII.
Due to the continuous heavy rainfall, the major streets in Manila became flooded. This
compelled Cris to check-in at Square One Hotel. As soon as Crisgot off from his Toyota
Altis, the Hotels parking attendant got the key of his car and gave him a valet parking
customers claim stub. The attendant parked his car at the basement of the hotel. Early in
the morning, Cris was informed by the hotel manager that his car was carnapped. (4%)
(A) What contract, if any, was perfected between Cris and the Hotel when Cris
surrendered the key of his car to the Hotels parking attendant?
(B) What is the liability, if any, of the Hotel for the loss of Cris car?
VIII.
Tess leased her 1,500 sq. m. lot in Antipolo City to Ruth for a period of three (3) years, from
January 2010 to February 2013.
On March 19, 2011, Tess sent a letter to Ruth, part of which reads as follows:
"I am offering you to buy the property you are presently leasing at P5,000.00 per sq. m. or
for a total of P7,500,000.00. You can pay the contract price by installment for two (2) years
without interest.
I will give you a period of one (1) year from receipt of this letter to decide whether you will
buy the property."

After the expiration of the lease contract, Tess sold the property to her niece for a total
consideration of P4 million.
Ruth filed a complaint for the annulment of the sale, reconveyance and damages against
Tess and her niece. Ruth alleged that the sale of the leased property violated her right to
buy under the principle of right of first refusal.
Is the allegation of Ruth tenable? (4%)
IX.
Spouses Macario and Bonifacia Dakila entered into a contract to sell with Honorio Cruz over
a parcel of industrial land in Valenzuela, Bulacan for a price of Three Million Five Hundred
Thousand Pesos (P3,500,000.00). The spouses would give a downpayment of Five
Hundred Thousand Pesos (P500,000.00) upon the signing of the contract, while the
balance would be paid for the next three (3) consecutive months in the amount of One
Million Pesos (P1,000,000.00) per month. The spouses paid the first two (2) installments but
not the last installment. After one (1) year, the spouses offered to pay the unpaid balance
which Honorio refused to accept.
The spouses filed a complaint for specific performance against Honorio invoking the
application of the Maceda Law. If you are the judge, how will you decide the case? (4%)
X.
Dorotea leased portions of her 2,000 sq. m. lot to Monet, Kathy, Celia, and Ruth for five (5)
years. Two (2) years before the expiration of the lease contract, Dorotea sold the property
to PM Realty and Development Corporation. The following month, Dorotea and PM Realty
stopped accepting rental payments from all the lessees because they wanted to terminate
the lease contracts.
Due to the refusal of Dorotea to accept rental payments, the lessees , Ruth, et al., filed a
complaint for consignation of the rentals before the Regional Trial Court (RTC) of Manila
without notifying Dorotea.
Is the consignation valid? (4%)
XI.
An easement that can be acquired by prescription: (1%)
(A) Right of way
(B) Watering of an animal
(C) Lateral and subjacent support

(D) Light and view
XII.
J.C. Construction (J.C.) bought steel bars from Matibay Steel Industries (MSI) which is
owned by Buddy Batungbacal. J.C. failed to pay the purchased materials
worth P500,000.00 on due date. J.C. persuaded its client Amoroso with whom it had
receivables to pay its obligation to MSI. Amoroso agreed and paid MSI the amount of
P50,000.00. After two (2) other payments, Amoroso stopped making further payments.
Buddy filed a complaint for collection of the balance of the obligation and damages against
J.C. J.C. denied any liability claiming that its obligation was extinguished by reason of
novation which took place when MSI accepted partial payments from Amoroso on its behalf.
Was the obligation of J.C. Construction to MSI extinguished by novation? Why? (4%)
XIII.
Esteban and Martha had four (4) children: Rolando, Jun, Mark, and Hector. Rolando had a
daughter, Edith, while Mark had a son, Philip. After the death of Esteban and Martha, their
three (3) parcels of land were adjudicated to Jun. After the death of Jun, the properties
passed to his surviving spouse Anita, and son Cesar. When Anita died, her share went to
her son Cesar. Ten (10) years after, Cesar died intestate without any issue. Peachy, Anitas
sister, adjudicated to herself the properties as the only surviving heir of Anita and Cesar.
Edith and Philip would like to recover the properties claiming that they should have been
reserved by Peachy in their behalf and must now revert back to them.
Is the contention of Edith and Philip valid? (4%)
XIV.
A pedestrian, who was four (4) months pregnant, was hit by a bus driver while crossing the
street. Although the pedestrian survived, the fetus inside her womb was aborted. Can the
pedestrian recover damages on account of the death of the fetus? (1%)
(A) Yes, because of Article 2206 of the Civil Code which allows the surviving heirs to
demand damages for mental anguish by reason of the death of the deceased.
(B) Yes, for as long as the pedestrian can prove that she was not at fault and the bus
driver was the one negligent.
(C) No, because a fetus is not a natural person.
(D) No, if the fetus did not comply with the requirements under Article 41 of the Civil
Code.
XV.
Mr. Bong owns several properties in Pasig City. He decided to build a condominium named
Flores de Manila in one of his lots. To fund the project, he obtained a loan from the National
Bank (NB) secured by a real estate mortgage over the adjoining property which he also
owned.
During construction, he built three (3) pumps on the mortgaged property to supply water to
the condominium. After one (1) year, the project was completed and the condominium was
turned over to the buyers. However, Mr. Bong failed to pay his loan obligation to NB. Thus,
NB foreclosed the mortgaged property where the pumps were installed. During the sale on
public auction of the mortgaged property, Mr. Simon won in the bidding. When Mr. Simon
attempted to take possession of the property, the condominium owners, who in the
meantime constituted themselves into Flores de Manila Inc. (FMI), claimed that they have
earlier filed a case for the declaration of the existence of an easement before the Regional
Trial Court (RTC) of Pasig City and prayed that the easement be annotated in the title of the
property foreclosed by NB. FMI further claimed that when Mr. Bong installed the pumps in
his adjoining property, a voluntary easement was constituted in favor of FMI.
Will the action prosper? (4%)
XVI.
A congregation for religious women, by way of commodatum, is using the real property
owned and registered in the name of Spouses Manuel as a retreat house.
Maria, a helper of the congregation discovered a chest in the backyard. When she opened
the chest, it contained several pieces of jewelry and money. (4%)
(A) Can the chest containing the pieces of jewelry and money be considered as
hidden treasure?
(B) Who has the right to claim ownership of it?
XVII.
On March 30, 2000, Mariano died intestate and was survived by his wife, Leonora, and
children, Danilo and Carlito. One of the properties he left was a piece of land in Alabang
where he built his residential house.
After his burial, Leonora and Marianos children extrajudicially settled his estate. Thereafter,
Leonora and Danilo advised Carlito of their intention to partition the property. Carlito
opposed invoking Article 159 of the Family Code. Carlito alleged that since his minor child
Lucas still resides in the premises, the family home continues until that minor beneficiary
becomes of age.
Is the contention of Carlito tenable? (4%)
XVIII.
Spouses Magtanggol managed and operated a gasoline station on a 1,000 sq.m. lot which
they leased from Francisco Bigla-awa. The contract was for a period of three (3) years.
When the contract expired, Francisco asked the spouses to peacefully vacate the premises.
The spouses ignored the demand and continued with the operation of the gasoline station.
One month after, Francisco, with the aid of a group of armed men, caused the closure of the
gasoline station by constructing fences around it.
Was the act of Francisco and his men lawful? Why? (4%)
XIX.
Who enjoys the Right of Retention? (1%)
(A) Depositary until full payment of what may be due him in deposit.
(B) Lessee if he advances the expenses for the repair of the leased premises.
(C) Bailee if bailor owes him something.
(D) Builder in bad faith for the recovery of necessary and useful expenses.
XX.
Mabuhay Elementary School organized a field trip for its Grade VI students in Fort
Santiago, Manila Zoo, and Star City. To be able to join, the parents of the students had to
sign a piece of paper that reads as follows:
"I allow my child (name of student), Grade Section, to join the schools field trip on
February 14, 2014.
I will not file any claim against the school, administrator or teacher in case something
happens to my child during the trip."
Joey, a 7-year-old student of Mabuhay Elementary School was bitten by a snake while the
group was touring Manila Zoo. The parents of Joey sued the school for damages. The
school, as a defense, presented the waiver signed by Joeys parents.
Was there a valid waiver of right to sue the school? Why? (4%)
XXI.
A delayed accession is: (1%)
(A) formation of an island
(B) avulsion
(C) alluvium
(D) change in the course of the riverbed
XXII.
On March 27, 1980, Cornelio filed an application for land registration involving a parcel of
agricultural land that he had bought from Isaac identified as Lot No. 2716 with an area of
one (1) hectare. During the trial, Cornelio claimed that he and his predecessors-in-interest
had been in open, continuous, uninterrupted, public and adverse possession and
occupation of the land for more than thirty (30) years. He likewise introduced in evidence a
certification dated February 12, 1981 citing a presidential declaration to the effect that on
June 14, 1980, agricultural lands of the public domain, including the subject matter of the
application, were declared alienable and disposable agricultural land. (4%)
(A) If you are the judge, will you grant the application for land registration of
Cornelio?
(B) Can Cornelio acquire said agricultural land through acquisitive prescription,
whether ordinary or extraordinary?
XXIII.
After undergoing sex reassignment in a foreign country, Jose, who is now using the name of
"Josie," married his partner Ador. Is the marriage valid? (1%)
(A) Yes, the marriage is valid for as long as it is valid in the place where it is
celebrated following Article 17 of the Civil Code.
(B) Yes, the marriage is valid if all the essential and formal elements of marriage
under the Family Code are present.
(C) No, the marriage is not valid because one essential element of marriage is
absent.
(D) No, the marriage is not valid but is voidable because "Josie" concealed her real
identity.
XXIV.
Ted, married to Annie, went to Canada to work. Five (5) years later, Ted became a
naturalized Canadian citizen. He returned to the Philippines to convince Annie to settle in
Canada. Unfortunately, Ted discovered that Annie and his friend Louie were having an
affair. Deeply hurt, Ted returned to Canada and filed a petition for divorce which was
granted. In December 2013, Ted decided to marry his childhood friend Corazon in the
Philippines. In preparation for the wedding, Ted went to the Local Civil Registry of Quezon
City where his marriage contract with Annie was registered. He asked the Civil Register to
annotate the decree of divorce on his marriage contract with Annie. However, he was
advised by the National Statistics Office (NSO) to file a petition for judicial recognition of the
decree of divorce in the Philippines.
Is it necessary for Ted to file a petition for judicial recognition of the decree of divorce he
obtained in Canada before he can contract a second marriage in the Philippines? (4%)
XXV.
Mario executed his last will and testament where he acknowledges the child being
conceived by his live-in partner Josie as his own child; and that his house and lot in Baguio
City be given to his unborn conceived child. Are the acknowledgment and the donation
mortis causa valid? Why? (4%)
XXVI.
Isaac leased the apartment of Dorotea for two (2) years. Six (6) months after, Isaac
subleased a portion of the apartment due to financial difficulty. Is the sublease contract
valid? (1%)
(A) Yes, it is valid for as long as all the elements of a valid sublease contract are
present.
(B) Yes, it is valid if there is no express prohibition for subleasing in the lease
contract.
(C) No, it is void if there is no written consent on the part of the lessor.
(D) No, it is void because of breach of the lease contract.
XXVII.
Fe, Esperanza, and Caridad inherited from their parents a 500 sq. m. lot which they leased
to Maria for three (3) years. One year after, Fe, claiming to have the authority to represent
her siblings Esperanza and Caridad, offered to sell the leased property to Maria which the
latter accepted. The sale was not reduced into writing, but Maria started to make partial
payments to Fe, which the latter received and acknowledged. After giving the full payment,
Maria demanded for the execution of a deed of absolute sale which Esperanza and Caridad
refused to do. Worst, Maria learned that the siblings sold the same property to Manuel. This
compelled Maria to file a complaint for the annulment of the sale with specific performance
and damages.
If you are the judge, how will you decide the case? (4%)
XXVIII.
Spouses Esteban and Maria decided to raise their two (2) nieces, Faith and Hope, both
minors, as their own children after the parents of the minors died in a vehicular accident.
Ten (10) years after, Esteban died. Maria later on married her boss Daniel, a British national
who had been living in the Philippines for two (2) years.
With the permission of Daniel, Maria filed a petition for the adoption of Faith and Hope. She
did not include Daniel as her co-petitioner because for Maria, it was her former husband
Esteban who raised the kids.
If you are the judge, how will you resolve the petition? (4%)
XXIX.
Timothy executed a Memorandum of Agreement (MOA) with Kristopher setting up a
business venture covering three (3) fastfood stores known as "Hungry Toppings" that will be
established at Mall Uno, Mall Dos, and Mall Tres.
The pertinent provisions of the MOA provides:
1. Timothy shall be considered a partner with thirty percent (30%) share in all of the
stores to be set up by Kristopher;
2. The proceeds of the business, after deducting expenses, shall be used to pay the
principal amount of P500,000.00 and the interest therein which is to be computed
based on the bank rate, representing the bank loan secured by Timothy;
3. The net profits, if any, after deducting the expenses and payments of the principal
and interest shall be divided as follows: seventy percent (70%) for Kristopher and
thirty percent (30%) for Timothy;
4. Kristopher shall have a free hand in running the business without any interference
from Timothy, his agents, representatives, or assigns , and should such interference
happen, Kristopher has the right to buy back the share of Timothy less the amounts
already paid on the principal and to dissolve the MOA; and
5. Kristopher shall submit his monthly sales report in connection with the business to
Timothy.
What is the contractual relationship between Timothy and Kristopher? (4%)

XXX.
Joe Miguel, a well-known treasure hunter in Mindanao, executed a Special Power of
Attorney (SPA) appointing his nephew, John Paul, as his attorney-infact. John Paul was
given the power to deal with treasure-hunting activities on Joe Miguels land and to file
charges against those who may enter it without the latters authority. Joe Miguel agreed to
give John Paul forty percent (40%) of the treasure that may be found on the land.
Thereafter, John Paul filed a case for damages and injunction against Lilo for illegally
entering Joe Miguels land. Subsequently, he hired the legal services of Atty. Audrey
agreeing to give the latter thirty percent (30%) of Joe Miguels share in whatever treasure
that may be found in the land.
Dissatified however with the strategies implemented by John Paul, Joe Miguel unilaterally
revoked the SPA granted to John Paul.
Is the revocation proper? (4%)
---oo0ooo---

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the proponents? (4%)