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2014 bar exam answers

1. Yes, Carlo can claim for the insurance proceeds. A person has insurable
interest over his spouse. The marriage being void will not affect the
insurability because their marriage was not dissolved.
2. No. Bong is not correct. The instrument is not discharged. Under the NIL,
secondary liable parties are still liable to the instrument if the terms of which
are modified with his consent.
3. No. RTC has jurisdiction over intra-corporate disputes.
4. No. Jack is not correct. Theft clause operates when first the lawful possession
becomes unauthorized, thus depriving the insured of the property.
5. Petition to cancel the trademark in favor of Jinggy. Trade names need not be
registered in order that it be protected under the Philippine Law.
6. No Matino is not correct. Under the stipulations of the parties only damage
has been contemplated and not the loss thereof. Theft clause comes into play
due to the unauthorized use of the driver.
7. No, planholders are not correct. Pre need plans are not trust agreements,
they are primarily securities which the money parted by the plan holders are
considered as investments.
8. First three resolutions are valid. The last one is not because it is an act the
requires the concurrence of stockholders representing of the outstanding
capital stock.
9. Under the law, checks are payable upon demand, and produces an effect of
payment once encashed.
Yes. The is no payment yet at the time there was lost. No premium, no
liability.
10.Derivative suit is not proper. First because the suit is not brought in behalf of
the corporation and second, there is no showing that petitioners exhausted
intra-corporate remedies.
11.Ati is correct. Under
12.I will apply dominancy test. Under present jurisprudence, dominancy test is
applied in commodities that are of not so important. The rationale given of
the Supreme Court, substantially, is that buyers are not so particular in
details on the selection of these items.
13.A. I will reject the AI. Under the Corporation Code, Board of Directors should
be at least 5 and majority of them are residents of the Philippines.
B. Yes. He can do that. There is no prohibition under the corporation code that
prohibits the President from holding the position of General Manager. What is
been proscribed is that the president is at the same time Treasurer, or
President at the same time Secretary.
c. No. The minimum required directors is 5.
14. No. Ilocano is not liable. Under the law on Insurance, Insurance contracts are
personal in nature.
15. a. Yes. Insurable interest is not essential in designating a beneficiary when the
insured is the one himself who procured the insurance policy

b. No. Incontestability clause will not set in.


c. No. The insurance policy can be rescinded on the account of fraud.
The illegality of the consideration of an instrument is a personal defense and cannot
be invoked against a party who has taken the instrument with no knowledge of such
defect.
Here, the defense of X that the check is issued a payment for gambling will not be
material because Y did not participate to such. Besides, as a drawer of the
instrument, he engages to pay the check upon valid notice of dishonor to him.
16. Yes. Pura is liable. As drawer of the check, he engages to pay the instrument
according to its tenor upon valid notice of dishonor to him.
17. The RTC is not correct. Under the Law on Corporations, to validly pierce the veil
of corporate fiction, it must be shown that such corporate veil is used to perpetrate
fraud, defend a crime, justify a wrong or defeat public convenience.
18. No. DMP is not correct. The foreclosure of the property of the DMP falls not
within the coverage of the stay order since it was conducted prior to the effect of
the Stay Order.
The foreclosure sale was conducted on ____ when the stay order took effect only on
___________.
The subsequent annotation in the title and the consolidation of ownership are only
consequences of the claim not covered in the Stay Order.
19. I would decide in favor of ELP Insurance. Under the Law on Insurance, the
insurer is subrogated to the rights of the insured on the latters claim against third
person liable upon payment of the proceeds.
20. Yes X can be sued. Under the law on Trademarks, there will be infringement if
the goods that are imported are sold for commercial purposes without the authority
from the exclusive distributor.