1.

In the last quarter of 2012, about 5,000 container vans of imported goods intended for the Christmas
Season were seized by agents of the Bureau of Customs. The imported goods were released only on January
10, 2013. A group of importers got together and filed an action for damages before the Regional Trial Court
of Manila against the Department of Finance and the Bureau of Customs. The Bureau of Customs raised the
defense of immunity from suit and, alternatively, that liability should lie with XYZ Corp. which the Bureau
had contracted for the lease of ten (10) high powered van cranes but delivered only five (5) of these cranes,
thus causing the delay in its cargo-handling operations. It appears that the Bureau, despite demand, did not
pay XYZ Corp. the Php 1.0 Million deposit and advance rental required under their contract.

(A) Will the action by the group of importers prosper? (5%)

No, the action of the group of importers will not prosper. The primary function of the Bureau of Customs
is governmental, that of assessing and collecting lawful revenues from imported articles and all other
tariff and customs duties, fees, charges, fines and penalties (Mobil Philippines Exploration, Inc. vs.
Customs Arrastre Service, 18 SCRA 120).

ALTERNATIVE ANSWER: No. The action by the group of importers will not prosper because the Supreme
Court said that the Bureau of Customs, being an unincorporated agency without a separate judicial
personality, enjoys immunity from suit. It is invested with an inherent power of sovereignty, namely the
power of taxation; it performs governmental functions (Farolan v. Court of Tax Appeals, 217 SCRA 298).
Moreover, the Bureau of Customs is a part of the Department of Finance, with no personality of its own
apart from that of the national government. Its primary function is governmental, that of assessing and
collecting lawful revenues from imported articles and all other tariff and customs duties, fees, charges,
fines, and penalties (Sec. 602, RA 1937). This clearly explains the reason why the Department of Finance
also enjoys immunity from suit.

(B) Can XYZ Corp. sue the Bureau of Customs to collect rentals for the delivered cranes? (5%)

No, XYZ corporation cannot sue the Bureau of Customs to collect rentals for the delivered cranes. The
contract was a necessary incident to the performance of its governmental function. To properly collect
the revenues and customs duties, the Bureau of Customs must check to determine if the declaration of
the importers tallies with the landed merchandise. The cranes are needed to haul the landed
merchandise to a suitable place for inspection (Mobil Philippines Exploration, Inc. vs. Customs Arrastre
Service, 18 SCRA 120).

2. To address the pervasive problem of gambling, Congress is considering the following options: (1)
prohibit all forms of gambling; (2) allow gambling only on Sundays; (3) allow gambling only in
government-owned casinos; and (4) remove all prohibition against gambling but impose a tax
equivalent to 30% on all winnings.

(a) If Congress chooses the first option and passes the corresponding law absolutely prohibiting all forms
of gambling, can the law be validly attacked on the ground that it is an invalid exercise of police power?
Explain your answer.
(b) If Congress chooses the last option and passes the corresponding law imposing a 30% tax on all
winnings and prizes won from gambling, would the law comply with the constitutional limitations on
the exercise of the power of taxation? Explain you answer.
3. As a reaction to the rice shortage and the dearth of mining engineers. Congress passed a law
requiring graduates of public science high schools henceforth to take up agriculture or mining
engineering as their college course. Several students protested, invoking their freedom to choose
their profession. Is the law constitutional?

4. The House Committee on Appropriations conducted an inquiry in aid of legislation into alleged irregular
and anomalous disbursements of the Countrywide Development Fund (CDF) and Congressional Initiative
Allocation (CIA) as exposed by X, a division chief of the Department of Budget and Management (DBM).
Implicated in the questionable disbursements are high officials of the Palace. The house committee
summoned X and the DBM Secretary to appear and testify. X refused to appear, while the Secretary
appeared but refused to testify invoking executive privilege.

A. May X be compelled to appear and testify? If yes, what sanction may be imposed on him?
B. Is the Budget Secretary shielded by executive privilege from responding to the inquiries of the House
Committee? Explain Briefly. If the answer is no, is there any sanction that may be imposed on him?

5. ST, a Regional Trial Court judge who falsified his Certificate of Service, was found liable by the Supreme
Court for serious misconduct and inefficiency, and meted the penalty of suspension from office for 6
months. Subsequently, ST filed a petition for executive clemency with the Office of the President. The
Executive Secretary, acting on said petition issued a resolution granting ST executive clemency. Is the grant
of executive clemency valid? Why or why not?

6. The Ambassador of the Republic of Kafiristan referred to you for handling, the case of the Embassy's
Maintenance Agreement with CBM, a private domestic company engaged in maintenance work. The
Agreement binds CBM, for a defined fee, to maintain the Embassy's elevators, air-conditioning units and
electrical facilities. Section 10 of the Agreement provides that the Agreement shall be governed by
Philippine laws and that any legal action shall be brought before the proper court of Makati. Kafiristan
terminated the Agreement because CBM allegedly did not comply with their agreed maintenance
standards. CBM contested the termination and filed a complaint against Kafiristan before the Regional Trial
Court of Makati. The Ambassador wants you to file a motion to dismiss on the ground of state immunity
from suit and to oppose the position that under Section 10 of the Agreement, Kafiristan expressly waives
its immunity from suit. Under these facts, can the Embassy successfully invoke immunity from suit?

7. A robbery with homicide had taken place and Lito, Badong and Rollie were invited for questioning based on
the information furnished by a neighbor that he saw them come out of the victim's house at about the time
of the robbery/killing. The police confronted the three with this and other information they had gathered,
and pointedly accused them of committing the crime.

Lito initially resisted, but eventually broke down and admitted his participation in the crime. Elated by this
break and desirous of securing a written confession soonest, the police called City Attorney Juan Buan to
serve as the trio's counsel and to advise them about their rights during the investigation.

Badong and Rollie, weakened in spirit by Lito's early admission, likewise admitted their participation. The
trio thus signed a joint extra-judicial confession which served as the main evidence against them at their
trial. They were convicted based on their confession.

Should the judgment of conviction be affirmed or reversed on appeal?

8. Congress passed a law authorizing the National Housing Authority (NHA) to expropriate or acquire private
property for the redevelopment of slum areas, as well as to lease or resell the property to private
developers to carry out the redevelopment plan. Pursuant to the law, the NHA acquired all properties within
a targeted badly blighted area in San Nicolas, Manila except a well-maintained drug and convenience store
that poses no blight or health problem itself. Thereafter, NHA initiated expropriation proceedings against
the store owner who protested that his property could not be taken because it is not residential or slum
housing. He also contended that his property is being condemned for a private purpose, not a public one,
noting the NHA’s sale of the entire area except his property to a private party. If you were the judge, how
would you decide the case?