ô


  



On March 12, 2008, Mabini was charged with Murder for fatally stabbing Emilio.

To prove the qualifying circumstance of evident premeditation, the prosecution introduced on December
11, 2009 a text message, which Mabini¶s estranged wife Gregoria had sent to Emilio on the eve of his
death, reading: ³Honey, ¦
  
  ¦  

    .´

a. è subpoena  was served on Gregoria for her to be presented for the purpose of
identifying her cellphone and the text message. Mabini objected to her presentation on the
ground of marital privilege. Resolve. (3%)
b. ruppose Mabini¶s objection in question è was sustained. The prosecution thereupon announced
that it would be presenting Emilio¶s wife Graciana to identify Emilio¶s cellphone bearing
Gregoria¶s text message. Mabini objected again. Rule on the objection. (2%)
c. If Mabini¶s objection in question B was overruled, can he object to the presentation of the text
message on the ground that it is hearsay? (2%)
d. ruppose that shortly before he expired, Emilio was able to send a text message to his wife
Graciana reading ³     
   
     
.´ Is this text
message admissible as a dying declaration? Explain. (3%)



On èugust 13, 2008, è, as shipper and consignee, loaded on the  in Legaspi City 100,000
pieces of century eggs. The shipment arrived in Manila totally damaged on èugust 14, 2008. è filed
before the Metropolitan Trial Court (MeTC) of Manila a complaint against B ruper Lines, Inc. (B
Lines), owner of the  , for recovery of damages amounting to P167,899. He attached to the
complaint the Bill of Lading.

a. B Lines filed a Motion to Dismiss upon the ground that the Regional Trial Court has exclusive
original jurisdiction over ³all actions in admiralty and maritime´ claims. In his Reply, è
contended that while the action is indeed ³admiralty and maritime´ in nature, it is the amount of
the claim, not the nature of the action, that governs jurisdiction. Pass on the Motion to Dismiss.
(3%)
b. The MeTC denied the Motion in question è. B Lines thus filed an ènswer raising the defense
that under the Bill of Lading it issued to è, its liability was limited to P10,000.

èt the pre-trial conference, B Lines defined as one of the issues whether the stipulation limiting
its liability to P10,000 binds è. è countered that this was no longer in issue as B Lines had failed
to deny under oath the Bill of Lading. Which of the parties is correct? Explain. (3%)

c. On July 21, 2009, B Lines served on è a ³Notice to Take Deposition,´ setting the deposition on
July 29, 2009 at 8:30 a.m. at the office of its counsel in Makati. è failed to appear at the
deposition-taking, despite notice. ès counsel for B Lines, how would you proceed? (3%)

c
Y 

 

ènabel filed a complaint against B for unlawful detainer before the Municipal Trial Court (MTC) of
Candaba, Pampanga. èfter the issues had been joined, the MTC dismissed the complaint for lack of
jurisdiction after noting that the action was one for  ¦  

ènabel appealed the dismissal to the RTC which affirmed it and accordingly dismissed her appeal. rhe
elevates the case to the Court of èppeals, which remands the case to the RTC. Is the appellate court
correct? Explain. (3%)



X was driving the dump truck of Y along Cattleya rtreet in rta. Maria, Bulacan. Due to his negligence,
X hit and injured V who was crossing the street. Lawyer L, who witnessed the incident, offered his legal
services to V. V, who suffered physical injuries including a fractured wrist bone, underwent surgery to
screw a metal plate to his wrist bone. On complaint of V, a criminal case for Reckless Imprudence
Resulting in rerious Physical Injuries was filed against X before the Municipal Trial Court (MTC) of
rta. Maria. ètty. L, the private prosecutor, did not reserve the filing of a separate civil action.

V subsequently filed a complaint for Damages against X and Y before the Regional Trial Court of
Pangasinan in Urdaneta where he resides. In his ³Certification ègainst Forum rhopping,´ V made no
mention of the pendency of the criminal case in rta. Maria.

a. Is V guilty of forum shopping? (2%)

b. Instead of filing an ènswer, X and Y move to dismiss the complaint for damages on the ground
of ¦ . Is the motion meritorious? Explain. (2%)
c. ruppose only X was named as defendant in the complaint for damages, may he move for the
dismissal of the complaint for failure of V to implead Y as an indispensable party? (2%)
d. X moved for the suspension of the proceedings in the criminal case to await the decision in the
civil case. For his part, Y moved for the suspension of the civil case to await the decision in the
criminal case. Which of them is correct? Explain. (2%)
e. ètty. L offered in the criminal case his affidavit respecting what he witnessed during the
incident. X¶s lawyer wanted to cross-examine ètty. L who, however, objected on the ground of
lawyer-client privilege. Rule on the objection. (2%)

Charisse, alleging that she was a resident of Lapu-Lapu City, filed a complaint for damages against
ètlanta Bank before the RTC of Lapu-Lapu City, following the dishonor of a check she drew in favor of
rhirley against her current account which she maintained in the bank¶s local branch.

The bank filed a Motion to Dismiss the complaint on the ground that it failed to state a cause of action,
but it was denied. It thus filed an ènswer.

a. In the course of the trial, Charisse admitted that she was a Ur citizen residing in Los èngeles,
California and that she was temporarily billeted at the Pescado Hotel in Lapu-Lapu City, drawing
the bank to file another motion to dismiss, this time on the ground of improper venue, since
Charisse is not a resident of Lapu-Lapu City.

c
ô 

 Charisse opposed the motion citing the ³omnibus motion rule.´ Rule on the motion. (3%)

b. ruppose Charisse did not raise the ³omnibus motion rule,´ can the judge proceed to resolve the
motion to dismiss? Explain. (3%)
c. ruppose the judge correctly denied the second motion to dismiss and rendered judgment in favor
of Charisse, ordering the bank to pay her P100,000 in damages plus legal interest. The judgment
became final and executory in 2008. To date, Charisse has not moved to execute the judgment.
The bank is concerned that its liability will increase with the delay because of the interest on the
judgment award.

ès counsel of the bank, what move should you take? (3%)



èntique dealer Mercedes borrowed P1,000,000 from antique collector Benjamin. Mercedes issued a
postdated check in the same amount to Benjamin to cover the debt.

On the due date of the check, Benjamin deposited it but it was dishonored. ès despite demands,
Mercedes failed to make good the check, Benjamin filed in January 2009 a complaint for collection of
sum of money before the RTC of Davao.

Mercedes filed in February 2009 her ènswer with Counterclaim, alleging that before the filing of the
case, she and Benjamin had entered into a   ¦  agreement in which her vintage P1,000,000
  watch which was taken by Benjamin for sale on commission was applied to settle her
indebtedness; and that she incurred expenses in defending what she termed a ³frivolous lawsuit.´ rhe
accordingly prayed for P50,000 damages.

a. Benjamin soon after moved for the dismissal of the case. The trial court accordingly dismissed
the complaint. ènd it also dismissed the Counterclaim.

Mercedes moved for a reconsideration of the dismissal of the Counterclaim. Pass upon
Mercedes¶ motion. (3%)

b. ruppose there was no Counterclaim and Benjamin¶s complaint was not dismissed, and judgment
was rendered against Mercedes for P1,000,000. The judgment became final and executory and a
writ of execution was correspondingly issued.

rince Mercedes did not have cash to settle the judgment debt, she offered her Toyota Camry
model 2008 valued at P1.2 million. The rheriff, however, on request of Benjamin, seized
Mercedes¶ 17th century ivory image of the d      estimated to be worth over
P1,000,000.

Was the rheriff¶s action in order? (3%)



ès Cicero was walking down a dark alley one midnight, he saw an ³owner-type jeepney´ approaching
him. rensing that the occupants of the vehicle were up to no good, he darted into a corner and ran. The

c
- 

occupants of the vehicle í elements from the Western Police District í gave chase and apprehended
him.

The police apprehended Cicero, frisked him and found a sachet of 0.09 gram of   tucked in his
waist and a rwiss knife in his secret pocket, and detained him thereafter. Is the arrest and body-search
legal? (3%)

c 



Dominique was accused of committing a violation of the Human recurity èct. He was detained
   deprived of sleep, and subjected to water torture. He later allegedly confessed his guilt
via an affidavit.

èfter trial, he was acquitted on the ground that his confession was obtained through torture, hence,
inadmissible as evidence.

In a subsequent criminal case for torture against those who deprived him of sleep and subjected him to
water torture, Dominique was asked to testify and to, among other things, identify his above-said
affidavit of confession. ès he was about to identify the affidavit, the defense counsel objected on the
ground that the affidavit is a fruit of a poisonous tree. Can the objection be sustained? Explain. (3%)



In a prosecution for rape, the defense relied on Deoxyribonucleic ècid (DNè) evidence showing that the
semen found in the private part of the victim was not identical with that of the accused¶s. ès private
prosecutor, how will you dispute the veracity and accuracy of the results of the DNè evidence? (3%)

Marinella is a junior officer of the èrmed Forces of the Philippines who claims to have personally
witnessed the malversation of funds given by Ur authorities in connection with the "   exercises.

Marinella alleges that as a result of her exposé, there are operatives within the military who are out to
kill her. rhe files a petition for the issuance of a writ of amparo against, among others, the Chief of rtaff
but without alleging that the latter ordered that she be killed.

ètty. Daro, counsel for the Chief of rtaff, moves for the dismissal of the Petition for failure to allege
that his client issued any order to kill or harm Marinella. Rule on ètty. Daro¶s motion. Explain. (3%)



X was arrested for the alleged murder of a 6-year old lad. He was read his   rights immediately
upon being apprehended.

c
  

In the course of his detention, X was subjected to three hours of non-stop interrogation. He remained
quiet until, on the 3rd hour, he answered ³yes´ to the question of whether ³he prayed for forgiveness for
shooting down the boy.´ The trial court, interpreting X¶s answer as an admission of guilt, convicted him.

On appeal, X¶s counsel faulted the trial court in its interpretation of his client¶s answer, arguing that X
invoked his   rights when he remained quiet for the first two hours of questioning. Rule on the
assignment of error. (3%)



In a prosecution for murder, the prosecutor asks accused Darwin if he had been previously arrested for
violation of the ènti- Graft and Corrupt Practices èct. ès defense counsel, you object. The trial court
asks you on what ground/s. Respond. (3%)



Policemen brought Lorenzo to the Philippine General Hospital (PGH) and requested one of its surgeons
to immediately perform surgery on him to retrieve a packet of 10 grams of   which they alleged
was swallowed by Lorenzo.

ruppose the PGH agreed to, and did perform the surgery, is the package of  admissible in
evidence? Explain. (3%)



Czarina died single. rhe left all her properties by will to her friend Duqueza. In the will, Czarina stated
that she did not recognize Marco as an adopted son because of his disrespectful conduct towards her.

Duqueza soon instituted an action for probate of Czarina¶s will. Marco, on the other hand, instituted
intestate proceedings. Both actions were consolidated before the RTC of Pasig. On motion of Marco,
Duqueza¶s petition was ordered dismissed on the ground that the will is void for depriving him of his
legitime. èrgue for Duqueza. (5%)



Pedrillo, a Fil-èm permanent resident of Los èngeles, California at the time of his death, bequeathed to
Winston a sum of money to purchase an annuity.

Upon Pedrillo¶s demise, his will was duly probated in Los èngeles and the specified sum in the will was
in fact used to purchase an annuity with XYZ of Hong Kong so that Winston would receive the
equivalent of Ur 1,000 per month for the next 15 years.

Wanting to receive the principal amount of the annuity, Winston files for the probate of Pedrillo¶s will in
the Makati RTC. ès prayed for, the court names Winston as administrator of the estate.

Winston now files in the Makati RTC a motion to compel XYZ to account for all sums in its possession
forming part of Pedrillo¶s estate. Rule on the motion. (5%)

c
ù 

 

ral Mineo died intestate, leaving a P1 billion estate. He was survived by his wife Dayanara and their
five children.

Dayanara filed a petition for the issuance of letters of administration. Charlene, one of the children, filed
an opposition to the petition, alleging that there was neither an allegation nor genuine effort to settle the
estate amicably before the filing of the petition. Rule on the opposition. (5%)



What is ³!  in prison grey´? (2%)



While window-shopping at the mall on èugust 4, 2008, Dante lost his organizer including his credit card
and billing statement. Two days later, upon reporting the matter to the credit card company, he learned
that a one-way airplane ticket was purchased online using his credit card for a flight to Milan in mid-
èugust 2008. Upon extensive inquiry with the airline company, Dante discovered that the plane ticket
was under the name of one Dina Meril. Dante approaches you for legal advice.

a. What is the proper procedure to prevent Dina from leaving the Philippines? (2%)
b. ruppose an Information is filed against Dina on èugust 12, 2008 and she is immediately
arrested. What pieces of electronic evidence will Dante have to secure in order to prove the
fraudulent online transaction? (2%)



1. Enumerate the requisites of a ³trial   ´ (2%) and a ³promulgation of judgment   ´
(2%).

2. Name two instances where the trial court can hold the accused civilly liable even if he is acquitted.
(2%)



èzenith, the cashier of Temptation Investments, Inc. (Temptation, Inc.) with principal offices in Cebu
City, is equally hated and loved by her co-employees because she extends cash advances or ³½  ´ to
her colleagues whom she likes. One morning, èzenith discovers an anonymous letter inserted under the
door of her office threatening to kill her.

èzenith promptly reports the matter to her superior Joshua, who thereupon conducts an internal
investigation to verify the said threat.

Claiming that the threat is real, Temptation, Inc. opts to transfer èzenith to its Palawan Office, a move
she resists in view of the company¶s refusal to disclose the results of its investigation.

c
ü 

Decrying the move as a virtual deprivation of her employment, èzenith files a petition for the issuance
of a writ of       before the Regional Trial Court (RTC) to enjoin Temptation, Inc. from
transferring her on the ground that the company¶s refusal to provide her with a copy of the investigation
results compromises her right to life, liberty and privacy.

Resolve the petition. Explain. (5%)

    c  



Prepare the following:

a. Verification and Certification against Forum rhopping. (5%)

b. Petition for Letters Rogatory. (5%)



Enumerate the instances when a Notary Public may authenticate documents without requiring the
physical presence of the signatories. (2%)



ètty. Y, in his Motion for Reconsideration of the Decision rendered by the National Labor Relations
Commission (NLRC), alleged that there was connivance of the NLRC Commissioners with ètty. X for
monetary considerations in arriving at the questioned Decision. He insulted the Commissioners for their
ineptness in appreciating the facts as borne by the evidence presented. ètty. X files an administrative
complaint against ètty. Y for using abusive language.

ètty. Y posits that as lawyer for the down-trodden laborers, he is entitled to express his righteous anger
against the Commissioners for having cheated them; that his allegations in the Motion for
Reconsideration are absolutely privileged; and that proscription against the use of abusive language does
not cover pleadings filed with the NLRC, as it is not a court, nor are any of its Commissioners Justices
or Judges. Is ètty. Y administratively liable under the Code of Professional Responsibility? Explain.
(3%)



ètty. XX rented a house of his cousin JJ on a month-tomonth basis. He left for a 6-month study in Japan
without paying his rentals and electric bills while he was away despite JJ¶s repeated demands. Upon his
return to the Philippines, ètty. XX still failed to settle his rental arrearages and electric bills, drawing JJ
to file an administrative complaint against ètty. XX.

ètty. XX contended that his non-payment of rentals and bills to his cousin is a personal matter which
has no bearing on his profession as a lawyer and, therefore, he did not violate the Code of Professional
Responsibility.

a. Is ètty. XX¶s contention in order? Explain. (3%)

c
 

 b. Cite two (2) specific Rules in the Code of Professional Responsibility, violation of which
subjects a lawyer to disciplinary action by the rupreme Court although the acts complained of
are purely personal or private activities that do not involve the practice of law. (2%)

When is professional incompetence a ground for disbarment under the Rules of Court? Explain. (3%)



ètty. Monica rantos-Cruz registered the firm name ³rantos- Cruz Law Office´ with the Department of
Trade and Industry as a single proprietorship. In her stationery, she printed the names of her husband
and a friend who are both non-lawyers as her senior partners in light of their investments in the firm. rhe
allowed her husband to give out calling cards bearing his name as senior partner of the firm and to
appear in courts to move for postponements.

Did ètty. rantos-Cruz violate the Code of Professional Responsibility? Why? (3%)



ètty. Candido commented in a newspaper that the decision of the Court of èppeals was influenced by a
powerful relative of the prevailing party. The appellate court found him guilty of indirect contempt.
Does this involve moral turpitude? Explain. (3%)



For services to be rendered by ètty. Delmonico as counsel for Wag Yu in a case involving 5,000 square
meters (sq.m.) of land, the two agreed on a success fee of P50,000 plus 500 sq.m. of the land.

The trial court rendered judgment in favor of Wag Yu which became final and executory. èfter
receiving P50,000, ètty. Delmonico demanded the transfer to him of the promised 500 sq.m. Instead of
complying, Wag Yu filed an administrative complaint charging ètty. Delmonico with violation of the
Code of Professional Responsibility and èrticle 1491(5) of the Civil Code for demanding the delivery of
a portion of the land subject of litigation.

Is ètty. Delmonico liable under the Code of Professional Responsibility and the Civil Code? Explain.
(5%)



Is the defense of ètty. R in a disbarment complaint for immorality filed by his paramour P that P is in
¦  material or a ground for exoneration? Explain. (3%)

èllison hired ètty. X as his counsel in his complaint for Collection of rum of Money. Upon receipt on
March 20, 2009 of the Notice of Pre-Trial which was scheduled on May 24, 2009, èllison noted that at

c
3 

that time he would still be in a two-week conference in rt. Petersburg. He thus asked ètty. X to
represent him during the pre-trial.

Prepare the necessary document that ètty. X should submit to the court to enable him to represent
èllison during Pre-Trial. (5%)



èfter passing the Philippine Bar in 1986, ètty. Richards practiced law until 1996 when he migrated to
èustralia where he subsequently became an èustralian citizen in 2000. ès he kept abreast of legal
developments, petitioner learned about the Citizenship Retention and Re-ècquisition èct of 2003
(Republic èct No. 9225), pursuant to which he reacquired his Philippine citizenship in 2006. He took
his oath of allegiance as a Filipino citizen at the Philippine embassy in Canberra, èustralia. Jaded by the
laid back life in the outback, he returned to the Philippines in December 2008. èfter the holidays, he
established his own law office and resumed his practice of law.

Months later, a concerned woman who had secured copies of ètty. Richards¶ naturalization papers with
consular authentication, filed with the rupreme Court an anonymous complaint against him< for illegal
practice of law.

a. May the rupreme Court act upon the complaint filed by an anonymous person? Why or why not?
(3%)
b. Is respondent entitled to resume the practice of law? Explain. (5%)

c 



Rebecca¶s complaint was raffled to the sala of Judge è. Rebecca is a daughter of Judge è¶s wife by a
previous marriage. This is known to the defendant who does not, however, file a motion to inhibit the
Judge.

Is the Judge justified in not inhibiting himself from the case? (3%)



Reacting to newspaper articles and verbal complaints on alleged rampant sale of Temporary Restraining
Orders by Judge X, the rupreme Court ordered the conduct of a discreet investigation by the Office of
the Court èdministrator.

Judges in the place where Judge X is assigned confirmed the complaints.

a. What administrative charge/s may be leveled against Judge X? Explain. (3%)

b. What defense/s can Judge X raise in avoidance of any liability? (2%)



c
 

Farida engaged the services of ètty. Garudo to represent her in a complaint for damages. The two
agreed that all expenses incurred in connection with the case would first be shouldered by ètty. Garudo
and he would be paid for his legal services and reimbursed for all expenses which he had advanced out
of whatever Farida may receive upon the termination of the case. What kind of contract is this? (2%)



Rico, an amiable, sociable lawyer, owns a share in Marina Golf Club, easily one of the more posh golf
courses. He relishes hosting parties for government officials and members of the bench.

One day, he had a chance meeting with a judge in the Intramuros golf course. The two readily got along
well and had since been regularly playing golf together at the Marina Golf Club.

a. If ètty. Rico does not discuss cases with members of the bench during parties and golf games, is
he violating the Code of Professional Responsibility? Explain. (3%)
b. How about the members of the bench who grace the parties of Rico, are they violating the Code
of Judicial Conduct? Explain. (3%)



Judge L is assigned in Turtle Province. His brother ran for Governor in Rabbit Province. During the
election period this year, Judge L took a leave of absence to help his brother conceptualize the campaign
strategy. He even contributed a modest amount to the campaign kitty and hosted lunches and dinners.

Did Judge L incur administrative and/or criminal liability? Explain. (3%)



Judge X was invited to be a guest speaker during the annual convention of a private organization which
was covered by media. rince he was given the liberty to speak on any topic, he discussed the recent
decision of the rupreme Court declaring that the President is not, under the Constitution, proscribed
from appointing a Chief Justice within two months before the election.

In his speech, the judge demurred to the rupreme Court decision and even stressed that the decision is a
serious violation of the Constitution.

a. Did Judge X incur any administrative liability? Explain. (3%)

b. If instead of ventilating his opinion before the private organization, Judge X incorporated it, as
an  in one of his decisions, did he incur any administrative liability? Explain. (3%)



a. Draft the accusatory portion of an Information for RèPE of a 13-year old child committed by her
maternal uncle in broad daylight at the back of a church. (5%)
b. Draft a Petition for the Issuance of a Writ of u    . (5%)
c. Draft a Petition for Bail. (5%)


c
Y
 

Judges of the first and second level courts are allowed to receive assistance from the local government
units where they are stationed. The assistance could be in the form of equipment or allowance.

Justices at the Court of èppeals in the regional stations in the Visayas and Mindanao are not necessarily
residents there, hence, they incur additional expenses for their accommodations.

Pass on the propriety of the Justices¶ receipt of assistance/allowance from the local governments. (3%)



èrabella filed a complaint for disbarment against her estranged husband ètty. P on the ground of
immorality and use of illegal drugs.

èfter èrabella presented evidence and rested her case before the Investigating Commissioner of the IBP
Committee on Bar Discipline, she filed an èffidavit of Desistance and motion to dismiss the complaint,
she and her husband having reconciled for the sake of their children.

You are the Investigating Commissioner of the IBP. Bearing in mind that the family is a social
institution which the rtate is duty-bound to preserve, what will be your action on èrabella¶s motion to
dismiss the complaint? (3%)



On the proposal of Judge G, which was accepted, he and his family donated a lot to the city of Gyoza on
the condition that a public transport terminal would be constructed thereon. The donation was accepted
and the condition was complied with.

The family-owned tracts of land in the vicinity of the donated lot suddenly appreciated in value and
became commercially viable as in fact a restaurant and a hotel were soon after built.

Did the Judge commit any violation of the Code of Judicial Conduct? (2%)



è retired member of the Judiciary is now engaged in private practice. In attending hearings, he uses his
car bearing his protocol plate which was issued to him while still in the service. Pass on the ethical
aspect of the judge¶s use of the protocol plate. (2%)

 
u  dd 

 

c
YY 


   


 

a. In civil cases involving the collection of internal revenue taxes, prescription is construed strictly
against the government and liberally in favor of the taxpayer. (1%)
b. In criminal cases involving tax offenses punishable under the National Internal Revenue Code
(NIRC), prescription is construed strictly against the government. (1%)
c. In criminal cases where the Court of Tax èppeals (CTè) has exclusive original jurisdiction, the
right to file a separate civil action for the recovery of taxes may be reserved. (1%)
d. Proceedings before the CTè in the exercise of its exclusive original jurisdiction are in the nature
of trial  ½ . (1%)
e. Judgments, resolutions or orders of the Regional Trial Court in the exercise of its  
jurisdiction involving criminal offenses arising from violations of the NIRC are appealable to the
CTè, which shall hear the cases  . (1%)



a. What is the ³ ½³? Explain briefly. (2%)

b. What is the ³ ³? Explain briefly. (2%)
c. What is the ³    ´ test? Explain briefly. (2%)
d. What is the effect of the execution by a taxpayer of a ³waiver of the statute of limitations´ on his
defense of prescription? (2%)
e. What is the basis for the computation of business tax on contractors under the Local Government
Code? (2%)
f. How are retiring businesses taxed under the Local Government Code? (2%)



Mirador, Inc., a domestic corporation, filed its ènnual Income Tax Return for its taxable year 2008 on
èpril 15, 2009. In the Return, it reflected an income tax overpayment of P1,000,000.00 and indicated its
choice to carry-over the overpayment as an automatic tax credit against its income tax liabilities in
subsequent years.

On èpril 15, 2010, it filed its ènnual Income Tax Return for its taxable year 2009 reflecting a taxable
loss and an income tax overpayment for the current year 2009 in the amount of P500,000.00 and its
income tax overpayment for the prior year 2008 of P1,000,000.00.

In its 2009 Return, the corporation indicated its option to claim for refund the total income tax
overpayment of P1,500,000.00

Choose which of the following statements is correct.

a. Mirador, Inc. may claim as refund the total income tax overpayment of P1,500,000.00 reflected
in its income tax return for its taxable year 2009;

c
Yô 

 b. It may claim as refund the amount of P500,000.00 representing its income tax overpayment for
its taxable year 2009; or
c. No amount may be claimed as refund.
Explain the basis of your answer. (5%)



On March 10, 2010, Continental, Inc. received a preliminary assessment notice (PèN) dated March 1,
2010 issued by the Commissioner of Internal Revenue (CIR) for deficiency income tax for its taxable
year 2008. It failed to protest the PèN. The CIR thereupon issued a final assessment notice (FèN) with
letter of demand on èpril 30, 2010. The FèN was received by the corporation on May 10, 2010,
following which or on May 25, 2010, it filed its protest against it.

The CIR denied the protest on the ground that the assessment had already become final and executory,
the corporation having failed to protest the PèN.

Is the CIR correct? Explain. (5%)

Does the Court of èppeals have the power to review compromise agreements forged by the
Commissioner of Internal Revenue and a taxpayer? Explain. (5%)



Based on the èffidavit of the Commissioner of Internal Revenue (CIR), an Information for failure to file
income tax return under rection 255 of the National Internal Revenue Code (NIRC) was filed by the
Department of Justice (DOJ) with the Manila Regional Trial Court (RTC) against XX, a Manila
resident.

XX moved to quash the Information on the ground that the RTC has no jurisdiction in view of the
absence of a formal deficiency tax assessment issued by the CIR.

Is a prior assessment necessary before an Information for violation of rection 255 of the NIRC could be
filed in court? Explain. (4%)



What are the conditions that must be complied with before the Court of Tax èppeals may suspend the
collection of national internal revenue taxes? (3%)



What is the rule on appeal from decisions of the Collector of Customs in protest and seizure cases?
When is the decision of the Collector of Customs appealable to the Court of Tax èppeals? Explain. (5%)



c
Y- 

On May 15, 2009, La Manga Trading Corporation received a deficiency business tax assessment of
P1,500,000.00 from the Pasay City Treasurer. On June 30, 2009, the corporation contested the
assessment by filing a written protest with the City Treasurer.

On October 10, 2009, the corporation received a collection letter from the City Treasurer, drawing it to
file on October 25, 2009 an appeal against the assessment before the Pasay Regional Trial Court (RTC).

a. Was the protest of the corporation filed on time? Explain. (3%)

b. Was the appeal with the Pasay RTC filed on time? Explain. (3%)

c 

 
!

a. Gains realized by the investor upon redemption of shares of stock in a mutual fund company are
exempt from income tax.
b. è corporation can claim the optional standard deduction equivalent to 40% of its gross sales or
receipts, as the case may be.
c. Premium payment for health insurance of an individual who is an employee in an amount of
P2,500 per year may be deducted from gross income if his gross salary per year is not more than
P250,000.
d. The Tax Code allows an individual taxpayer to pay in two equal installments, the first
installment to be paid at the time the return is filed, and the second on or before July 15 of the
same year, if his tax due exceeds P2,000.
e. èn individual taxpayer can adopt either the calendar or fiscal period for purposes of filing his
income tax return.
f. The capitalization rules may be resorted to by the BIR in order to compel corporate taxpayers to
declare dividends to their stockholders regularly.
g. Informer¶s reward is subject to a final withholding tax of 10%.
h. è non-resident alien who stays in the Philippines for less than 180 days during the calendar year
shall be entitled to personal exemption not to exceed the amount allowed to citizens of the
Philippines by the country of which he is subject or citizen.



ère the following transactions subject to VèT? If yes, what is the applicable rate for each transaction.
rtate the relevant authority/ies for your answer.

a. Construction by XYZ Construction Co. of concrete barriers for the èsian Development Bank in
Ortigas Center to prevent car bombs from ramming the èDB gates along èDB èvenue in
Mandaluyong City. (3%)
b. Call Center operated by a domestic enterprise in Makati that handles exclusively the reservations
of a hotel chain which are all located in North èmerica. The services are paid for in Ur and
duly accounted for with the "   "¦ . (3%)
c. rale of orchids by a flower shop which raises its flowers in Tagaytay. (3%)


c
Y  

Ferremaro, Inc., a manufacturer of handcrafted shoes, maintains its principal office in Cubao, Quezon
City. It has branches/sales offices in Cebu and Davao. Its factory is located in Marikina City where most
of its workers live. Its principal office in Quezon City is also a sales office.

rales of finished products for calendar year 2009 in the amount of P10 million were made at the
following locations:

i) Cebu branch 25%

ii) Davao branch 15%
iii) Quezon City branch 60%
Total 100%

Where should the applicable local taxes on the shoes be paid? Explain. (3%)



XYZ rhipping Corporation is a branch of an international shipping line with voyages between Manila
and the West Coast of the U.r. The company¶s vessels load and unload cargoes at the Port of Manila,
albeit it does not have a branch or sales office in Manila. èll the bills of lading and invoices are issued
by the branch office in Makati which is also the company¶s principal office.

The City of Manila enacted an ordinance levying a 2% tax on gross receipts of shipping lines using the
Port of Manila.

Can the City Government of Manila legally impose said levy on the corporation? Explain. (3%)



è inherited a two-storey building in Makati from his father, a real estate broker in the µ60s. è group of
Tibetan monks approached è and offered to lease the building in order to use it as a venue for their
Buddhist rituals and ceremonies. è accepted the rental of P1 million for the whole year.

The following year, the City èssessor issued an assessment against è for non-payment of real property
taxes. Is the assessor justified in assessing è¶s deficiency real property taxes? Explain. (3%)



Don rebastian, single but head of the family, Filipino, and resident of Pasig City, died intestate on
November 15, 2009. He left the following properties and interests:

P
House and lot (family home) in Pasig 800,000
Vacation house and lot in Florida, Urè 1,500,000
ègricultural land in Naic, Cavite which 2,000,000
c
Yù 

he inherited from his father
Car which is being used by his brother
in Cavite 500,000
Proceeds of life insurance where he
named his estate as irrevocable
beneficiary 1,000,000
Household furnitures and appliances 1,000,000
Claims against a cousin who has assets
of P10,000 and liabilities of P100,000 100,000
rhares of stock in èBC Corp, a
domestic enterprise 100,000
The expenses and charges on the estate are as
follows:
P
Funeral Expenses 250,000
Legal fees for the settlement of the
estate 500,000
Medical expenses of last illness 600,000
Claims against the estate 300,000

The compulsory heirs of Don rebastian approach you and seek your assistance in the settlement of his
estate for which they have agreed to the above-stated professional fees. rpecifically, they request you to
explain and discuss with them the following questions. You oblige:

a. What are the properties and interests that should be included in the computation of the gross
estate of the decedent? Explain. (2.5%)
b. What is the net taxable estate of the decedent? Explain. (2.5%)
c. When is the due date for filing and payment of the applicable tax return and tax? ère these dates
extendible? If so, under what conditions or requirements? (2.5%)
d. If X, one of the compulsory heirs, renounces his share in the inheritance in favor of the other co-
heirs, is there any tax implication of X¶s renunciation? What about the other coheirs? (2.5%)



è is a travelling salesman working full time for Nu rkin Products. He receives a monthly salary plus 3%
commission on his sales in a routhern province where he is based. He regularly uses his own car to
maximize his visits even to far flung areas. One fine day a group of militants seized his car. He was
notified the following day by the police that the marines and the militants had a bloody encounter and
his car was completely destroyed after a grenade hit it.

è wants to file a claim for casualty loss. Explain the legal basis of your tax advice. (3%)


c
Yü 

In 2009, Caruso, a resident Filipino citizen, received dividend income from a U.r.-based corporation
which owns a chain of Filipino restaurants in the West Coast, U.r.è. The dividend remitted to Caruso is
subject to U.r. withholding tax with respect to a non-resident alien like Caruso.

a. What will be your advice to Caruso in order to lessen the impact of possible double taxation on
the same income? (3%)
b. Would your answer in be the same if Caruso became a U.r. immigrant in 2008 and had
become a non-resident Filipino citizen? Explain the difference in treatment for Philippine income
tax purposes. (3%)



èBC, a domestic corporation, entered into a software license agreement with XYZ, a non-resident
foreign corporation based in the U.r. Under the agreement which the parties forged in the U.r., XYZ
granted èBC the right to use a computer system program and to avail of technical know-how relative to
such program. In consideration for such rights, èBC agreed to pay 5% of the revenues it receives from
customers who will use and apply the program in the Philippines.

Discuss the tax implication of the transaction. (5%)

 
u  dd 

 

c
Y 


  "#
  

a. Under èrticle 26 of the Family Code, when a foreign spouse divorces his/her Filipino spouse, the
latter may re-marry by proving only that the foreign spouse has obtained a divorce against her or
him abroad. (1%)
b. X, a widower, died leaving a will stating that the house and lot where he lived cannot be
partitioned for as long as the youngest of his four children desires to stay there. ès coheirs and
co-owners, the other three may demand partition anytime. (1%)

 $ %

a. è had a 4-storey building which was constructed by Engineer B. èfter five years, the building
developed cracks and its stairway eventually gave way and collapsed, resulting to injuries to
some lessees. Who should the lessees sue for damages? (1%)

1. è, the owner
2. B, the engineer
3. both è & B

b. O, owner of Lot è, learning that Japanese soldiers may have buried gold and other treasures at
the adjoining vacant Lot B belonging to spouses X & Y, excavated in Lot B where she succeeded
in unearthing gold and precious stones. How will the treasures found by O be divided? (1%)

1. 100% to O as finder
2. 50% to O and 50% to the spouses X and Y
3. 50% to O and 50% to the state
4. None of the above

c. è executed a Deed of Donation in favor of B, a bachelor, covering a parcel of land valued at P1

million. B was, however, out of the country at the time. For the donation to be valid, (1%)

1. B may e-mail è accepting the donation.

2. The donation may be accepted by B¶s father with whom he lives.
3. B can accept the donation anytime convenient to him.
4. B¶s mother who has a general power of attorney may accept the donation for him.
5. None of the above is sufficient to make B¶s acceptance valid

d. è executed a 5-page notarial will before a notary public and three witnesses. èll of them signed
each and every page of the will. One of the witnesses was B, the father of one of the legatees to
the will. What is the effect of B being a witness to the will? (1%)

1. The will is invalidated

2. The will is valid and effective
3. The legacy given to B¶s child is not valid

 &'( %ô !

c
Y3 

 a. What is the difference between ³guaranty´ and ³suretyship´?
b. Define Ô  . Who are the persons liable under Ô  and what are the defenses
available to them?
c. Give at least two reasons why a court may assume jurisdiction over a conflict of laws case.

 rpouses B and G begot two offsprings. èlbeit they had serious personality differences, the spouses
continued to live under one roof. B begot a son by another woman. G also begot a daughter by another
man.

a. If G gives the surname of B to her daughter by another man, what can B do to protect their
legitimate children¶s interests? Explain. (5%)
b. If B acquiesces to the use of his surname by G¶s daughter by another man, what is/are the
consequence/s? Explain. (5%)

 G filed on July 8, 2000 a petition for declaration of nullity of her marriage to B. During the pendency
of the case, the couple entered into a compromise agreement to dissolve their absolute community of
property. B ceded his right to their house and lot and all his shares in two business firms to G and their
two children, aged 18 and 19. B also opened a bank account in the amount of P3 million in the name of
the two children to answer for their educational expenses until they finish their college degrees. For her
part, G undertook to shoulder the day-to-day living expenses and upkeep of the children. The Court
approved the spouses¶ agreement on reptember 8, 2000.

a. ruppose the business firms suffered reverses, rendering G unable to support herself and the
children. Can G still ask for support ¦from B? Explain. (3%)
b. ruppose in late 2004 the two children had squandered the P3 million fund for their education
before they could obtain their college degrees, can they ask for more support from B? Explain.
(3%)

 Gigolo entered into an agreement with Majorette for her to carry in her womb his baby via ½ 
fertilization. Gigolo undertook to underwrite Majorette¶s pre-natal expenses as well as those attendant to
her delivery. Gigolo would thereafter pay Majorette P2 million and, in return, she would give custody of
the baby to him. èfter Majorette gives birth and delivers the baby to Gigolo following her receipt of P2
million, she engages your services as her lawyer to regain custody of the baby.

a. What legal action can you file on behalf of Majorette? Explain. (2.5%)
b. Can Gigolo demand from Majorette the return of the P2 million if he returns the baby? Explain.
(2.5%)
c. Who of the two can exercise parental authority over the child? Explain. (2.5%)
d. Is the child entitled to support and inheritance from Gigolo? Explain. (2.5%)

 G and B were married on July 3, 1989. On March 4, 2001, the marriage, which bore no offspring,
was declared void  under èrticle 36 of the Family Code. èt the time of the dissolution of the
marriage, the couple possessed the following properties:

a a house and lot acquired by B on èugust 3, 1988, one third (1/3) of the purchase price
(representing downpayment) of which he paid; one third (1/3) was paid by G on February 14,
1990 out of a cash gift given to her by her parents on her graduation on èpril 6, 1989; and the
balance was paid out of the spouses¶ joint income; and
a an apartment unit donated to B by an uncle on June 19, 1987.
c
Y 

 a. Who owns the foregoing properties? Explain. (5%)
b. If G and B had married on July 3, 1987 and their marriage was dissolved in 2007, who owns the
properties? Explain. (5%)

 rpouses Rex and Lea bore two children now aged 14 and 8. During the subsistence of their
marriage, Rex begot a child by another woman. He is now 10 years of age. On Lea¶s discovery of
Rex¶s fathering a child by another woman, she filed a petition for legal separation which was
granted. Rex now wants to adopt his illegitimate child.

a. Whose consent is needed for Rex¶s adoption of his illegitimate child? (2.5%)
b. If there was no legal separation, can Rex still adopt his illegitimate child? Explain. (2.5%)

 Eighteen-year old Filipina Patrice had a daughter out of wedlock whom she named Laurie. èt 26,
Patrice married èmerican citizen John who brought her to live with him in the United rtates of èmerica.
John at once signified his willingness to adopt Laurie.Can John file the petition for adoption? If yes,
what are the requirements? If no, why? (5%)  In 1997, B and G started living together without the
benefit of marriage. The relationship produced one offspring, Venus. The couple acquired a residential
lot in Parañaque. èfter four (4) years or in 2001, G having completed her 4-year college degree as a
fulltime student, she and B contracted marriage without a license. The marriage of B and G was, two
years later, declared null and void due to the absence of a marriage license.

a. If you were the judge who declared the nullity of the marriage, to whom would you award the
lot? Explain briefly. (3%)
b. Is Venus legitimate, illegitimate, or legitimated? Explain briefly. (3%)

 The spouses Peter and Paula had three (3) children. Paula later obtained a judgment of nullity of
marriage. Their absolute community of property having been dissolved, they delivered P1 million to
each of their 3 children as their presumptive legitimes. Peter later re-married and had two (2) children by
his second wife Marie. Peter and Marie, having successfully engaged in business, acquired real
properties. Peter later died intestate.

a. Who are Peter¶s legal heirs and how will his estate be divided among them? (5%)
b. What is the effect of the receipt by Peter¶s 3 children by his first marriage of their presumptive
legitimes on their right to inherit following Peter¶s death? (5%)

 On May 5, 1989, 16-year old Rozanno, who was issued a student permit, drove to school a car, a
gift from his parents. On even date, as his class was scheduled to go on a field trip, his teacher requested
him to accommodate in his car, as he did, four (4) of his classmates because the van rented by the school
was too crowded. On the way to a museum which the students were scheduled to visit, Rozanno made a
wrong maneuver, causing a collision with a jeepney. One of his classmates died. He and the three (3)
others were badly injured.

a. Who is liable for the death of Rozanno¶s classmate and the injuries suffered by Rozanno and his
3 other classmates? Explain. (2%)
b. How about the damage to the jeepney? Explain. (2%)
c. Under the same facts, except the date of occurrence of the incident, this time in mid-1994, what
would be your answer? Explain. (2%)

c
ô
 

 Franz was the owner of Lot E which was surrounded by four (4) lots one of which ± Lot C ± he
also owned. He promised èva that if she bought Lot E, he would give her a right of way in Lot C.
Convinced, èva bought Lot E and, as promised, Franz gave her a right of way in Lot C. èva cultivated
Lot E and used the right of way granted by Franz. èva later found gainful employment abroad. On her
return after more than 10 years, the right of way was no longer available to her because Franz had in the
meantime sold Lot C to Julia who had it fenced.

a. Does èva have a right to demand from Julia the activation of her right of way? Explain. (2.5%)
b. èssuming èva opts to demand a right of way from any of the owners of Lots è, B, and D, can
she do that? Explain. (2.5%)

 Primo owns a pet iguana which he keeps in a man-made pond enclosed by a fence situated in his
residential lot. è typhoon knocked down the fence of the pond and the iguana crawled out of the gate of
Primo¶s residence. N, a neighbor who was passing by, started throwing stones at the iguana, drawing the
iguana to move toward him. N panicked and ran but tripped on something and suffered a broken leg. Is
anyone liable for N¶s injuries? Explain. (4%)  è, B, and C entered into a partnership to operate a
restaurant business. When the restaurant had gone past break-even stage and started to garner
considerable profits, C died. è and B continued the business without dissolving the partnership. They in
fact opened a branch of the restaurant, incurring obligations in the process. Creditors started demanding
for the payment of their obligations.

a. Who are liable for the settlement of the partnership¶s obligations? Explain? (3%)
b. What are the creditors¶ recourse/s? Explain. (3%)

 X was the owner of an unregistered parcel of land in Cabanatuan City. ès she was abroad, she
advised her sister Y via overseas call to sell the land and sign a contract of sale on her behalf. Y thus
sold the land to B1 on March 31, 2001 and executed a deed of absolute sale on behalf of X. B1 fully
paid the purchase price. B2, unaware of the sale of the land to B1, signified to Y his interest to buy it
but asked Y for her authority from X. Without informing X that she had sold the land to B1, Y sought X
for a written authority to sell. X e-mailed Y an authority to sell the land. Y thereafter sold the land on
May 1, 2001 to B2 on monthly installment basis for two years, the first installment to be paid at the end
of May 2001. Who between B1 and B2 has a better right over the land? Explain. (5%)

 
u  dd 

 

c
ôY 

"
 


èn agonizing and protracted trial having come to a close, the judge found è guilty beyond reasonable
doubt of homicide and imposed on him a straight penalty of rIX (6) YEèRr and ONE (1) DèY of
¦    . The public prosecutor objected to the sentence on the ground that the proper penalty
should have been TWELVE (12) YEèRr and ONE (1) DèY of   ¦  
 The defense
counsel chimed in, contending that application of the Indeterminate rentence Law should lead to the
imposition of a straight penalty of rIX (6) MONTHr and ONE (1) DèY of ¦    only.
Who of the three is on the right track? Explain. (3%)



a. What is the crime of qualified bribery? (2%)

b. May a judge be charged and prosecuted for such felony? How about a public prosecutor? è
police officer? Explain. (5%)



May a public officer charged under rection 3(b) of Republic èct No. 3019 ["directly or indirectly
requesting or receiving any gift, present, share, percentage or benefit, for himself or for any other
person, in connection with any contract or transaction between the government and any other party,
wherein the public officer in his official capacity has to intervene under the law"] also be simultaneously
or successively charged with direct bribery under èrticle 210 of the Revised Penal Code? Explain. (4%)



Because of the barbarity and hideousness of the acts committed by the suspects/respondents in cutting
off their victims¶ appendages, stuffing their torsos, legs, body parts into oil drums and bullet-riddled
vehicles and later on burying these oil drums, vehicles with the use of backhoes and other earth-moving
machinery, the Commission on Human Rights (CHR) investigating team recommended to the panel of
public prosecutors that all respondents be charged with violation of the ³Heinous Crimes Law.´ The
prosecution panel agreed with the CHR. ès the Chief Prosecutor tasked with approving the filing of the
Information, how will you pass upon the recommendation? Explain. (5%)

èrlene is engaged in the buy and sell of used garments, more popularly known as ^ # 
$èmong
the items found by the police in a raid of her store in Baguio City were brand-new d   
blazers. èrlene was charged with ³fencing.´ Will the charge prosper? Why or why not? (5%)



There being probable cause to believe that certain deposits and investments in a bank are related to an
unlawful activity of smuggling by èlessandro as defined under Republic èct (Rè) No. 9160, as
amended (ènti-Money Laundering èct) an application for an order to allow inquiry into his deposit was

c
ôô 

filed with the Regional Trial Court. èfter hearing the application, the court granted the application and
issued a freeze order.

Pass upon the correctness of the court¶s order. Explain. (3%)



è widower of ten years, septuagenarian Canuto felt that he had license to engage in voyeurism. If not
peeping into his neighbors¶ rooms through his powerful single-cylinder telescope, he would trail young,
shapely damsels along the hallways of shopping malls. While going up the escalator, he stayed a step
behind a mini-skirted one, and in a moment of excitement, put his hand on her left hip and massaged it.
The damsel screamed and hollered for help. Canuto was apprehended and brought up on inquest. What
charge/s, if any, may he be held responsible for? Explain. (5%)



è asked financial support from her showbiz friend B who accommodated her by issuing in her favor a
postdated check in the sum of P90,000.00. Both of them knew that the check would not be honored
because B¶s account had just been closed. The two then approached trader C whom they asked to change
the check with cash, even agreeing that the exchange be discounted at P85,000.00 with the assurance
that the check shall be funded upon maturity. Upon C¶s presentment of the check for payment on due
date, it was dishonored because the account had already been closed.

What action/s may C commence against è and B to hold them to account for the loss of her P85,000.00?
Explain. (5%)



Proserfina, an assistant public high school principal, acted to facilitate the release of salary differentials
and election duty per diem of classroom teachers with the agreement that they would reimburse her for
her expenses.

Did Proserfina commit a crime? Explain. (5%)

è, B and C are members of rFC Fraternity. While eating in a seaside restaurant, they were attacked by
X, Y and Z, members of a rival fraternity. è rumble ensued in which the abovenamed members of the
two fraternities assaulted each other in a confused and tumultuous manner resulting in the death of è. ès
it cannot be ascertained who actually killed è, the members of the two fraternities who took part in the
rumble were charged for death caused in a tumultuous affray. Will the charge prosper? Explain. (4%)



èngelina maintains a website where visitors can give their comments on the posted pictures of the goods
she sells in her exclusive boutique. Bettina posted a comment that the red " bag shown in
èngelina¶s website is fake and that èngelina is known to sell counterfeit items.

c
ô- 

èngelina wants to file a case against Bettina. rhe seeks your advice. What advice will you give her?
(4%)

c 



a. Define Money Laundering. What are the three (3) stages in money laundering? (3%)
b. What is the doctrine of ¦  ? How does it relate to èrticle 48 of the Revised Penal Code?
(3%)



While his wife was on a 2-year scholarship abroad, Romeo was having an affair with his maid Dulcinea.
Realizing that the affair was going nowhere, Dulcinea told Romeo that she was going back to the
province to marry her childhood sweetheart. Clouded by anger and jealousy, Romeo strangled Dulcinea
to death while she was sleeping in the maid¶s quarters.

The following day, Romeo was found catatonic inside the maid¶s quarters. He was brought to the
National Center for Mental Health (NCMH) where he was diagnosed to be mentally unstable.

Charged with murder, Romeo pleaded insanity as a defense.

a. Will Romeo¶s defense prosper? Explain. (2%)

b. What is the effect of the diagnosis of the NCMH on the case? (2%)



Paul lives with his long-time girlfriend Joan in a ondominium in Makati. For more than a year, he has
been secretly saving money in an envelope under their bed to buy her an engagement ring. One day,
while Joan was cleaning their room, she found the envelope, took the money, and left Paul. ès
prosecutor, what crime, if any, would you charge Joan? Explain. (3%)



ruspecting that her husband of twenty years was having an affair, Leilanie hired a private investigator to
spy on him. èfter two weeks, the private investigator showed Leilanie a video of her husband having
sexual intercourse with another woman in a room of a five-star hotel. Based on what she saw on the
video, Leilanie accused her husband of concubinage.

Will the case of concubinage prosper? Explain. (3%)



The president, treasurer, and secretary of èBC Corporation were charged with syndicated estafa under
the following Information:

c
ô  

That on or about the 1st week of January 2010 or subsequent thereto in Cebu City and within the
jurisdiction of this Honorable Court, the above-named accused, conspiring and confederating together
and all of them mutually helping and aiding one another in a syndicated manner, through a corporation
registered with the recurities and Exchange Commission (rEC), with intention of carrying out the
unlawful or illegal act, transaction, enterprise or scheme, with intent to gain and by means of fraud and
deceit, did then and there wilfully, unlawfully, and feloniously defraud Virna, Lana, Deborah and
several other persons by falsely or fraudulently pretending or representing in a transaction or series of
transactions, which they made with complainants and the public in general, to the effect that they were
in a legitimate business of foreign exchange trading successively or simultaneously operating under the
name and style of èBC Corporation and DEF Management Philippines, Incorporated, induced and
succeeded in inducing complainants and several other persons to give and deliver to said accused the
amount of at least P20,000,000.00 on the strength of said manifestations and representations, the
accused knowing fully well that the abovenamed corporations registered with the rEC are not licensed
nor authorized to engage in foreign exchange trading and that such manifestations and representations to
transact in foreign exchange were false and fraudulent, that these resulted to the damage and prejudice
of the complainants and other persons, and that the defraudation pertains to funds solicited from the
public in general by such corporations/associations.

Will the case for syndicated estafa prosper? Explain. (5%)



è killed his wife and buried her in their backyard. He immediately went into hiding in the mountains.
Three years later, the bones of è¶s wife were discovered by X, the gardener. rince X had a standing
warrant of arrest, he hid the bones in an old clay jar and kept quiet about it. èfter two years, Z, the
caretaker, found the bones and reported the matter to the police.

èfter 15 years of hiding, è left the country but returned three years later to take care of his ailing
sibling. rix years thereafter, he< was charged with parricide but raised the defense of prescription.

a. Under the Revised Penal Code, when does the period of prescription of a crime commence to
run? (1%)
b. When is it interrupted? (1%)
c. Is è¶s defense tenable? Explain. (3%)



On her way home, Eva Marie saw an injured chow chow puppy behind a bush. rince the puppy did not
have a collar, she brought it home so she could have it as a pet. Her son in fact begged Eva Marie to
keep the puppy. The following day, Eva Marie bought a collar for the puppy and brought it to a
veterinarian for treatment.

a. Did Eva Marie incur criminal liability in bringing the puppy home as a pet? Explain. (2%)
b. Did she incur civil liability? Explain. (2%)



Jack and Jill have been married for seven years. One night, Jack came home drunk. Finding no food on
the table, Jack started hitting Jill only to apologize the following day. è week later, the same episode
c
ôù 

occurred ± Jack came home drunk and started hitting Jill. Fearing for her life, Jill left and stayed with
her sister. To woo Jill back, Jack sent her floral arrangements of spotted lilies and confectioneries. Two
days later, Jill returned home and decided to give Jack another chance. èfter several days, however, Jack
again came home drunk. The following day, he was found dead.

Jill was charged with parricide but raised the defense of ³battered woman syndrome.´

a. Define ³Battered Woman ryndrome.´ (2%)

b. What are the three phases of the ³Battered Woman ryndrome´? (3 %)
c. Would the defense prosper despite the absence of any of the elements for justifying
circumstances of self-defense under the Revised Penal Code? Explain. (2%)



Matt was found guilty of drug trafficking while his younger brother Jeff was found guilty of possession
of equipment, instrument, apparatus and other paraphernalia for dangerous drugs under rection 12 of
Republic èct No. 9165. Matt filed a petition for probation. Jeff appealed his conviction during the
pendency of which he also filed a petition for probation. The brothers¶ counsel argued that they being
first time offenders, their petitions for probation should be granted. How would you resolve the brothers¶
petitions for probation? Explain. (3%)



Because peace negotiations on the rpratlys situation had failed, the People¶s Republic of China declared
war against the Philippines. Myra, a Filipina who lives with her Italian expatriate boyfriend, discovered
e-mail correspondence between him and a certain General Tung Kat ru of China. On March 12, 2010,
Myra discovered that on even date her boyfriend had sent an e-mail to General Tung Kat ru, in which he
agreed to provide vital information on the military defense of the Philippines to the Chinese government
in exchange for P1 million and his safe return to Italy. Two weeks later, Myra decided to report the
matter to the proper authorities.

Did Myra commit a crime? Explain. (3%)



Immediately after murdering Bob, Jake went to his mother to seek refuge. His mother told him to hide in
the maid¶s quarters until she finds a better place for him to hide. èfter two days, Jake transferred to his
aunt¶s house. è week later, Jake was apprehended by the police. Can Jake¶s mother and aunt be made
criminally liable as accessories to the crime of murder? Explain. (3 %)



Christopher, John, Richard, and Luke are fraternity brothers. To protect themselves from rival
fraternities, they all carry guns wherever they go. One night, after attending a party, they boarded a
taxicab, held the driver at gunpoint and took the latter¶s earnings.

a. What crime, if any, did the four commit? Enumerate the elements of the crime. (2%)
b. Would your answer be the same if they killed the driver? Explain. (2%)

c
ôü 

$ 
 


Briefly describe the following types of banks: (2% each)

a. universal bank
b. commercial bank
c. thrift bank
d. rural bank
e. cooperative bank



a. How do you characterize the legal relationship between a commercial bank and its safety deposit
box client? (2%)
b. Is a stipulation in the contract for the use of a safety deposit box relieving the bank of liability in
connection with the use thereof valid? (2%)
c. Differentiate ³bank deposits´ from ³deposit substitutes.´ (2%)
d. Why are banks required to maintain reserves against their deposits and deposit substitutes? rtate
one of three purposes for these reserves. (2%)



Ozamis Paper Corporation secured loans from èBC Universal Bank in the aggregate principal amount
of P100 million, evidenced by several promissory notes, and secured by a continuing guaranty of its
principal stockholder Menandro at P45 million; and a real estate mortgage over certain parcels of land
owned by Marquez. The corporation defaulted and the bank extra-judicially foreclosed on the real estate
mortgage. The bank, which was the sole bidder for P75 million, won the award.

a. Can the bank sue Marquez for the deficiency of P25 million? Explain. (2%)
b. If the bank opts to file an action for collection against the corporation, can it afterwards institute
a real action to foreclose the mortgage? Explain. (2%)
c. Can the bank foreclose on the pledged shares of Marquez and recover the deficiency from the
corporation? Explain. (2%)



èndante Realty, a marketing company that promotes and facilitates sales of real property through
leverage marketing, solicits investors who are required to be a Business Center Owner (BCO) by paying
an enrollment fee of 250. The BCO is then entitled to recruit two other investors who pay 250 each.
The BCO receives 90 from the 250 paid by each of his recruits and is credited a certain amount for
payments made by investors through the initial efforts of his Business Center. Once the accumulated
amount reaches 5,000, the same is used as down payment for the real property chosen by the BCO.

a. Does this multi-level marketing scheme constitute an ³investment contract´ under the recurities
Regulation Code? Define an ³investment contract.´ (2%)

c
ô 

 b. What procedure must be followed under the recurities Regulation Code to authorize the sale or
offer for sale or distribution of an investment contract? (2%)
c. What are the legal consequences of failure to follow this procedure? (2%)

Venezia is a famous international fashion chain with outlets in Makati, Ortigas, and Manila. It has
complied with the minimum capitalization required under the Retail Trade Nationalization èct and
carries on retail business worth more than 3 million for each of its outlets. ès its Manila outlet is not
doing very well, it decides to sell all of its business there consisting of remaining inventory, furniture
and fixtures and other assets to its competitor.

a. Venezia¶s Manila outlet constitutes one-third (1/3) of its total business. rhould it comply with
the requirements of the Bulk rales Law? Why or why not? (2%)
b. If instead of selling its Manila outlet, Venezia merely mortgages its assets there, would it need to
comply with the requirements of the Bulk rales Law? (2%)
c. What are the legal consequences of a failure to comply with the requirements of the Bulk rales
Law? (2%)



a. What contractual stipulations are required in all technology transfer agreements? (2%)
b. Enumerate three (3) stipulations that are prohibited in technology transfer agreements. (3%)
c. Can an article of commerce serve as a trademark and at the same time enjoy patent and copyright
protection? Explain and give an example. (2%)



Union Mines, Inc. has total assets of P60 million with 210 stockholders holding at least 100 shares each.
The company has two principal stockholders, èBC which owns 60% of the shares of stock, and XYZ
which owns 17%. èBC in turn is owned to the extent of 21.31% by ècme, Inc.; 29.69% by Golden Boy,
Inc.; 9% by XYZ; and the rest by individual stockholders. None of the parties is a publicly-listed
company. XYZ now proposes to buy ècme¶s and Golden Boy¶s shares in èBC, which would give it
direct control of èBC and indirect control of Union Mines.

Is the proposed acquisition by XYZ subject to the mandatory tender offer rule? Why or why not? What
is a tender offer and when is it mandatory? (5%)



Marlon deposited with LYRIC Bank a money market placement of P1 million for a term of 31 days. On
maturity date, one claiming to be Marlon called up the LYRIC Bank account officer and instructed him
to give the manager¶s check representing the proceeds of the money market placement to Marlon¶s
girlfriend Ingrid. The check, which bore the forged signature of Marlon, was deposited in Ingrid¶s
account with YèMèHè Bank. YèMèHè Bank stamped a guaranty on the check reading: ³èll prior
endorsements and/or lack of endorsement guaranteed.´

Upon presentment of the check, LYRIC Bank funds the check. Days later, Marlon goes to LYRIC Bank
to collect his money market placement and discovers the foregoing transactions. Marlon thereupon sues
c
ô3 

LYRIC Bank which in turn files a third-party complaint against YèMèHè Bank. Discuss the respective
rights and liabilities of the two banks. (5%)



Your client Dianne approaches you for legal advice on putting up a medium-sized restaurant business
that will specialize in a novel type of cuisine. ès Dianne feels that the business is a little risky, she
wonders whether she should use a corporation as the business vehicle, or just run it as a single
proprietorship. rhe already has an existing corporation that is producing meat products profitably and is
also considering the alternative of simply setting up the restaurant as a branch office of the existing
corporation.

a. Briefly explain to your client what you see as the legal advantages and disadvantages of using a
separate corporation, a single proprietorship, or a branch of an existing corporation for the
proposed restaurant business. (3%)
b. If you advise your client to use a corporation, what officer positions must the corporation at least
have? (2%)
c. What particular qualifications, if any, are these officers legally required to possess under the
Corporation Code? (2%)

To secure a loan of P10 million, Mario mortgaged his building to èrmando. In accordance with the loan
arrangements, Mario had the building insured with First Insurance Company for P10 million,
designating èrmando as the beneficiary. èrmando also took an insurance on the building upon his own
interest with recond Insurance Company for P5 million. The building was totally destroyed by fire, a
peril insured against under both insurance policies. It was subsequently determined that the fire had been
intentionally started by Mario and that in violation of the loan agreement, he had been storing
inflammable materials in the building.

a. How much, if any, can èrmando recover from either or both insurance companies? (2%)
b. What happens to the P10 million debt of Mario to èrmando? Explain. (3%)



Enrique obtained from reguro Insurance Company a comprehensive motor vehicle insurance to cover
his top of the line èston Martin. The policy was issued on March 31, 2010 and, on even date, Enrique
paid the premium with a personal check postdated èpril 6, 2010.

On èpril 5, 2010, the car was involved in an accident that resulted in its total loss. On èpril 10, 2010,
the drawee bank returned Enrique¶s check with the notation ³Insufficient Funds.´ Upon notification,
Enrique immediately deposited additional funds with the bank and asked the insurer to redeposit the
check.

Enrique thereupon claimed indemnity from the insurer. Is the insurer liable under the insurance
coverage? Why or why not? (3%)



c
ô 

èè entered into a contract with BB for the latter to transport ladies wear from Manila to France with
transhipment via Taiwan. romehow the goods were not loaded in Taiwan on time, hence, these arrived
in France ³off-season.´ èè was only paid for onehalf (1/2) the value by the buyer. èè claimed
damages from BB. BB invoked prescription as a defense under the Carriage of Goods by rea èct.
Considering the ³loss of value´ of the ladies wear as claimed by èè, is BB¶s defense tenable? Explain.
(3%)



Paolo, the owner of an ocean-going vessel, offered to transport the logs of Constantino from Manila to
Nagoya. Constantino accepted the offer, not knowing that the vessel was manned by an irresponsible
crew with deep-seated resentments against Paolo, their employer. Constantino insured the cargo of logs
against both perils of the sea and barratry. The logs were improperly loaded on one side, thereby causing
the vessel to tilt on one side. On the way to Nagoya, the crew unbolted the sea valves of the vessel
causing water to flood the ship hold. The vessel sank.

Constantino tried to collect from the insurance company which denied liability, given the unworthiness
of both the vessel and its crew. Constantino countered that he was not the owner of the vessel and he
could therefore not be responsible for conditions about which he was innocent.

a. Is the insurance company liable? Why or why not? (3%)

b. What is ³barratry´ in marine insurance? (2%)



When OCCIDENTèL Bank folded up due to insolvency, Manuel had the following separate deposits in
his name: P200,000 in savings deposit; P250,000 in time deposit; P50,000 in a current account; P1
million in a trust account; and P3 million in money market placement. Under the Philippine Deposit
Insurance Corporation èct, how much could Manuel recover? Explain. (2%)



While vacationing in Boracay, Valentino surreptitiously took photographs of his girlfriend Monaliza in
her skimpy bikini. Two weeks later, her photographs appeared in the Internet and in a national celebrity
magazine. Monaliza found out that Valentino had sold the photographs to the magazine and, adding
insult to injury, uploaded them to his personal blog on the Internet.

a. Monaliza filed a complaint against Valentino for damages based on, among other grounds,
violation of her intellectual property rights. Does she have any cause of action? Explain. (2%)
b. Valentino¶s friend Francesco stole the photographs and duplicated them and sold them to a
magazine publication. Valentino sued Francesco for infringement and damages. Does Valentino
have any cause of action? Explain. (2%)
c. Does Monaliza have any cause of action against Francesco? Explain. (2%)



èn importer of Christmas toys loaded 100 boxes of ranta Claus talking dolls aboard a ship in Korea
bound for Manila. With the intention of smuggling one-half of his cargo, he took a bill of lading for only
50 boxes. On the voyage to Manila, 50 boxes were jettisoned to save the more precious cargo.
c
-
 

 a. Is the importer entitled to receive any indemnity for average? Explain. (2%)
b. What are the types of averages in marine commerce? (3%)



The rupreme Court has held that fraud is an exception to the ³independence principle´ governing letters
of credit. Explain this principle and give an example of how fraud can be an exception. (3%)



For years, Y has been engaged in the parallel importation of famous brands, including shoes carrying the
foreign brand MèGIC. Exclusive distributor X demands that Y cease importation because of his
appointment as exclusive distributor of MèGIC shoes in the Philippines. Y counters that the trademark
MèGIC is not registered with the Intellectual Property Office as a trademark and therefore no one has
the right to prevent its parallel importation.

a. Who is correct? Why? (2%)

b. ruppose the shoes are covered by a Philippine patent issued to the brand owner, what would
your answer be? Explain. (2%)



Dr. Nobel discovered a new method of treating èlzheimer¶s involving a special method of diagnosing
the disease, treating it with a new medicine that has been discovered after long experimentation and field
testing, and novel mental isometric exercises. He comes to you for advice on how he can have his
discoveries protected.

Can he legally protect his new method of diagnosis, the new medicine, and the new method of
treatment? If no, why? If yes, how? (4%)

 
u  dd 

 

c
-Y 

  
 


)* +. Explain your answer briefly.

1. Deeds of release, waivers and quitclaims are always valid and binding. (2%)

2. The relations between employer and employee are purely contractual in nature. (2%)

3. ès a general rule, direct hiring of Overseas Filipino Workers (OFWs) is not allowed. (2%)



a. Distinguish the terms ³conciliation,´ ³mediation´ and ³arbitration.´ (3%)

b. Differentiate ³surface bargaining´ from ³blue-sky bargaining.´ (2%)



è, single, has been an active member of the rocial recurity rystem for the past 20 months. rhe became
pregnant out of wedlock and on her 7th month of pregnancy, she was informed that she would have to
deliver the baby through caesarean section because of some complications. Can è claim maternity
benefits? If yes, how many days can she go on maternity leave? If not, why is she not entitled? (3%)



è, a worker at èBC Company, was on leave with pay on March 31, 2010. He reported for work on èpril
1 and 2, Maundy Thursday and Good Friday, respectively, both regular holidays. Is è entitled to holiday
pay for the two successive holidays? Explain. (3%)

Company XYZ has two recognized labor unions, one for its rank-and-file employees (RFLU), and one
for supervisory employees (rELU). Of late, the company instituted a restructuring program by virtue of
which è, a rank-and-file employee and officer of RFLU, was promoted to a supervisory position along
with four (4) other colleagues, also active union members and/or officers. Labor Union KMJ, a rival
labor union seeking recognition as the rank-and-file bargaining agent, filed a petition for the cancellation
of the registration of RFLU on the ground that è and her colleagues have remained to be members of
RFLU. Is the petition meritorious? Explain. (3%)



è is a member of the labor union duly recognized as the sole bargaining representative of his company.
Due to a bargaining deadlock, 245 members of the 500-strong union voted on March 13, 2010 to stage a
strike. è notice of strike was submitted to the National Conciliation and Mediation Board on March 16,
2010. reven days later or on March 23, 2010, the workers staged a strike in the course of which è had to
leave and go to the hospital where his wife had just delivered a baby. The union members later

c
-ô 

intimidated and barred other employees from entering the work premises, thus paralyzing the business
operations of the company.

è was dismissed from employment as a consequence of the strike.

a. Was the strike legal? Explain. (3%)

b. Was è¶s dismissal valid? Why or why not? (3%)



è was an able seaman contracted by èBC Recruitment ègency for its foreign principal, reaworthy
rhipping Company (rrC). His employment contract provided that he would serve on board the èlmieda
II for eight (8) months with a monthly salary of Ur 450. In connection with his employment, he signed
an undertaking to observe the drug and alcohol policy which bans possession or use of all alcoholic
beverages, prohibited substances and un-prescribed drugs on board the ship. The undertaking provided
that: (1) disciplinary action including dismissal would be taken against anyone in possession of the
prohibited substances or who is impaired by the use of any of these substances, and (2) to enforce the
policy, random test sampling would be done on all those on board the ship.

On his third month of service while the èlmieda II was docked at a foreign port, a random drug test was
conducted on all members of the crew and è tested positive for marijuana. He was given a copy of the
drug test result. In compliance with the company¶s directive, he submitted his written explanation which
the company did not find satisfactory. è month later, he was repatriated to the Philippines.

Upon arrival in the Philippines, è filed with the National Labor Relations Commission (NLRC) a
complaint against the agency and the principal for illegal dismissal with a claim for salaries for the
unexpired portion of his contract.

a. Was è¶s dismissal valid? Explain. (3%)

b. Is his claim for salaries for the unexpired portion of his contract tenable? Explain. (3%)



èBC company and U labor union have been negotiating for a new Collective Bargaining ègreement
(CBè) but failed to agree on certain economic provisions of the existing agreement. In the meantime,
the existing CBè expired. The company thereafter refused to pay the employees their midyear bonus,
saying that the CBè which provided for the grant of midyear bonus to all company employees had
already expired. ère the employees entitled to be paid their midyear bonus? Explain your answer. (3%)



è was working as a medical representative of RX pharmaceutical company when he met and fell in love
with B, a marketing strategist for Delta Drug Company, a competitor of RX. On several occasions, the
management of RX called è¶s attention to the stipulation in his employment contract that requires him
to disclose any relationship by consanguinity or affinity with coemployees or employees of competing
companies in light of a possible conflict of interest. è seeks your advice on the validity of the company
policy. What would be your advice? (3%)


c
-- 

è, an employee of XYZ Cooperative, owns 500 shares in the cooperative. He has been asked to join the
XYZ Cooperative Employees èssociation. He seeks your advice on whether he can join the association.
What advice will you give him? (3%)



Because of continuing financial constraints, XYZ, Inc. gave its employees the option to voluntarily
resign from the company. è was one of those who availed of the option. On October 5, 2007, he was
paid separation benefits equivalent to seven (7) months pay for his six (6) years and seven (7) months of
service with the company and he executed a waiver and quitclaim.

è week later, è filed against XYZ, Inc. a complaint for illegal dismissal. While he admitted that he was
not forced to sign the quitclaim, he contended that he agreed to tender his voluntary resignation on the
belief that XYZ, Inc. was closing down its business. XYZ, Inc., however, continued its business under a
different company name, he claimed.

Rule on whether the quitclaim executed by è is valid or not. Explain. (3%)



On December 12, 2008, è signed a contract to be part of the crew of èBC Cruises, Inc. through its
Philippine manning agency XYZ. Under the standard employment contract of the Philippine Overseas
Employment èdministration (POEè), his employment was to commence upon his actual departure from
the port in the point of hire, Manila, from where he would take a flight to the Urè to join the cruise ship
³Mr Carnegie.´ However, more than three months after è secured his exit clearance from the POEè for
his supposed departure on January 15, 2009, XYZ still had not deployed him for no valid reason.

Is è entitled to relief? Explain. (3%)



è is employed by XYZ Company where XYZ Employees Union (XYZ-EU) is the recognized exclusive
bargaining agent. èlthough è is a member of rival union XYR-MU, he receives the benefits under the
CBè that XYZ-EU had negotiated with the company.

XYZ-EU assessed è a fee equivalent to the dues and other fees paid by its members but è insists that he
has no obligation to pay said dues and fees because he is not a member of XYZ±EU and he has not
issued an authorization to allow the collection. Explain whether his claim is meritorious. (3%)

c 



èfter working from 10 a.m. to 5 p.m. on a Thursday as one of 5,000 employees in a beer factory, è
hurried home to catch the early evening news and have dinner with his family. èt around 10 p.m. of the
same day, the plant manager called and ordered è to fill in for C who missed the second shift.

a. May è validly refuse the plant manager¶s directive? Explain. (2%)

c
-  

 b. èssuming that è was made to work from 11 p.m. on Thursday until 2 a.m. on Friday, may the
company argue that, since he was two hours late in coming to work on Thursday morning, he
should only be paid for work rendered from 1 a.m. to 2 a.m.? Explain? (3%)



ramahang Manggagawa ng Terracota, a union of supervisory employees at Terracota Inc., recently

admitted a member of the company¶s managerial staff, è, into the union ranks.

a. rhould è be a member of the supervisory union? Explain. (2%)

b. èssuming that è is ineligible to join the union, should the registration of ramahang
Manggagawa ng Terracota be cancelled? Explain. (3%)



On the first day of collective bargaining negotiations between rank-and-file Union è and B Bus
Company, the former proposed a P45/day increase. The company insisted that ground rules for
negotiations should first be established, to which the union agreed. èfter agreeing on ground rules on the
second day, the union representatives reiterated their proposal for a wage increase. When company
representatives suggested a discussion of political provisions in the Collective Bargaining ègreement as
stipulated in the ground rules, union members went on mass leave the next day to participate in a whole-
day prayer rally in front of the company building.

a. The company filed a petition for assumption of jurisdiction with the recretary of Labor and
Employment. The Union opposed the petition, arguing that it did not intend to stage a strike.
rhould the petition be granted? Explain. (2%)
b. The Union contended that assuming that the mass leave will be considered as a strike, the same
was valid because of the refusal of the company to discuss the economic provisions of the CBè.
Rule on the contention. (2%)
c. Union member èè, a pastor who headed the prayer rally, was served a notice of termination by
management after it filed the petition for assumption of jurisdiction. May the company validly
terminate èè? Explain. (2%)



è was hired to work in a sugar plantation performing such tasks as weeding, cutting and loading canes,
planting cane points, fertilizing and cleaning the drainage. Because his daily presence in the field was
not required, è also worked as a houseboy at the house of the plantation owner. For the next planting
season, the owner decided not to hire è as a plantation worker but as a houseboy instead. Furious, è
filed a case for illegal dismissal against the plantation owner. Decide with reason. (3%)



Flight attendant è, five feet and six inches tall, weighing 170 pounds ended up weighing 220 pounds in
two years. Pursuant to the long standing Cabin and Crew èdministration Manual of the employer airline
that set a 147-pound limit for è¶s height, management sent è a notice to ³shape up or ship out´ within
60 days. èt the end of the 60-day period, è reduced her weight to 205 pounds. The company finally
served her a Notice of èdministration Charge for violation of company standards on weight
requirements. rhould è be dismissed? Explain. (3%)
c
-ù 

 

reveral employees and members of Union è were terminated by Western Phone Co. on the ground of
redundancy. èfter complying with the necessary requirements, the Union staged a strike and picketed
the premises of the company. The management then filed a petition for the recretary of Labor and
Employment to assume jurisdiction over the dispute. Without the benefit of a hearing, the recretary
issued an Order to assume jurisdiction and for the parties to revert to the status quo ante litem.

a. Was the order to assume jurisdiction legal? Explain. (2%)

b. Under the same set of facts the recretary instead issued an Order directing all striking workers to
return to work within 24 hours, except those who were terminated due to redundancy. Was the
Order legal? Explain. (3%)



è, a driver for a bus company, sued his employer for nonpayment of commutable service incentive leave
credits upon his resignation after five years of employment. The bus company argued that è was not
entitled to service incentive leave since he was considered a field personnel and was paid on commission
basis and that, in any event, his claim had prescribed. If you were the Labor èrbiter, how would you
rule? Explain. (6%)



è was approached for possible overseas deployment to Dubai by X, an interviewer of job applicants for
èlpha Personnel rervices, Inc., an overseas recruitment agency. X required è to submit certain
documents (passport, NBI clearance, medical certificate) and to pay P25,000 as processing fee. Upon
payment of the said amount to the agency cashier, è was advised to wait for his visa. èfter five months,
è visited the office of èlpha Personnel rervices, Inc. during which X told him that he could no longer
be deployed for employment abroad. è was informed by the Philippine Overseas Employment
èdministration (POEè) that while èlpha Personnel rervices, Inc. was a licensed agency, X was not
registered as its employee, contrary to POEè Rules and Regulations. Under POEè Rules and
Regulations, the obligation to register personnel with the POEè belongs to the officers of a recruitment
agency.

a. May X be held criminally liable for illegal recruitment? Explain. (2%)

b. May the officers having control, management or direction of èlpha Personnel rervices, Inc. be
held criminally liable for illegal recruitment? Explain. (3%)



è was recruited to work abroad by rpeedy Recruitment ègency as a technician for a raudi èrabian
construction firm, with a monthly salary of 650.00. When she got to the construction site, the employer
compelled her to sign another contract that referred her to another employer for a salary of 350.00. rhe
worked for the second employer and was paid 350.00 until her two-year contract expired. Upon her
return to the Philippines, she filed a case against the agency and the two employers. May the agency
validly raise the defense that it was not privy to the transfer of è to the second employer? Explain. (3%)



c
-ü 

è worked as a roomboy in La Mallorca Hotel. He sued for underpayment of wages before the NLRC,
alleging that he was paid below the minimum wage. The employer denied any underpayment, arguing
that based on long standing, unwritten policy, the Hotel provided food and lodging to its housekeeping
employees, the costs of which were partly shouldered by it and the balance was charged to the
employees. The employees¶ corresponding share in the costs was thus deducted from their wages. The
employer concluded that such valid deduction naturally resulted in the payment of wages below the
prescribed minimum. If you were the Labor èrbiter, how would you rule? Explain. (3%)



Rank-and-file workers from Peacock Feathers, a company with 120 employees, registered their
independent labor organization with the Department of Labor and Employment (DOLE) Regional
Office. Management countered with a petition to cancel the union¶s registration on the ground that the
minutes of ratification of the union constitution and by-laws submitted to the DOLE were fraudulent.
rpecifically, management presented affidavits of ten (10) out of forty (40) individuals named in the list
of union members who participated in the ratification, alleging that they were not present at the
supposed January 1, 2010 meeting held for the purpose. The union argued that the stated date of the
meeting should have read ³January 11, 2010,´ instead of ³January 1, 2010,´ and that, at any rate, the
other thirty (30) union members were enough to register a union. Decide with reason. (3%)



Company C, a toy manufacturer, decided to ban the use of cell phones in the factory premises. In the
pertinent Memorandum, management explained that too much texting and phone-calling by employees
disrupted company operations. Two employeesmembers of Union X were terminated from employment
due to violation of the memorandum-policy. The union countered with a prohibitory injunction case
(with prayer for the issuance of a temporary restraining order) filed with the Regional Trial Court,
challenging the validity and constitutionality of the cell phone ban. The company filed a motion to
dismiss, arguing that the case should be referred to the grievance machinery pursuant to an existing
Collective Bargaining ègreement with Union X, and eventually to Voluntary èrbitration. Is the
company correct? Explain. (3%)

 
u  dd 

 

c
- 

c c,  
 
c



   


   

    
 
      
   





 
 











 
     
      
 


 
 
 

  


  
 


 
 



 
 




 
 
 
 


   


   
 

  
   




   
 
 
     
  

   

!"#$





% 

  
 
 &
!'#$



(  % 





 
 
)*+


 (


 


  
   
 +
  


 
 
% 

  

  




 

   

 
 

 
 

)* 


 


   









 
   ,!-#$

"A 



 

  

  ,!'#$



 



  






 
.

³*
  


  



  



" 
 





å
/

  






c
-3 

ë   


 

 

P 
 



0/ 
!-#$



)
  

*1
  
 

 

*

 
1 


 
   

       
  2)
 


       

  
 *


 
 

 
 
    
   -  
 
     


 A
 
     

     

 
3


  
  





 



 
!'#$




4


5

 

 


 6
  
 
    
 

 
 4   

5  
277 


8
 
 
 


 
 &)

  8

 

    

 
    


 
   


  
 *

  

   *  A

 



   


 


 
 +
   

  
*
+3


  




 
+
 


 
3

 ,!-#$

"

  
8








 ,
!'#$


 




 
  

  
 



 
 





  !72#$

"
  
/
/




%  


+

 


!72#$




 4

 


5 4






5!'#$
c
- 

 


1


 9   *
!19*$
6

 




 
   +  
 
  16 *
 :
 !1*:$ 
/

+ 
 *
 ;     
  


  +  
 





*

 9

  



 


 
  
     
   ; 
 
 


 
 







 




  ;  



 
 1*:

 
 




 
!"#$



 


 
 


 
 

 A 




   : 







9 
 *  
3



 


 

  


 

 )


   < 
 !<$ 
    
    


 



 


 




  



 


   

 
 < 
 
3

 
 1 = 
6  
  

  3 
 
  

 
   1 = 
6 %

  

      
  
 
 
)


 
!"#$



A  





  

 
.!>#$

³9

 



%



 
 


5

" 
 

 

5

å  )


 



 
 5

ë !$!$

P
 







 

 
 


 
 

/

(
 




( 
4u
  
 5


c

 

 
 
 
 (   
 

 

 
  

 
  


    
  
    
 
   
/ 
  

 
 




8>  
  
8>  







  
*
*




/ 
 

<
3
 



 








 
+ 




8>  









8  
 
 

  
  8>     -    -  

 


A

  ,A 

6
,

 
!"#$



 
  

 




)
3

/


 


!72#$

"
)      





 

 
!72#$

å(





 




 



 


  !72#$

ë
+
 + 


  6
 

 




 

  

 !72#$



(

 



  1
8 



 
 
 


  
  
 

 /  

 

66
 
 

  "
 1 6 8     
   "
 

+
(

 


 







   
 



 
(












 

 
( 

 %




  


  
 


   
  
  
 
 


 


 

!'#$



 
  


 
 
 




 
!72#$

c
 Y 

"



 


  

 

 


!72#$

å
   





!72#$

ë 3     




  
 

    
 

 
 
  



!72#$



 
'?
  )9 

 
  

 
+ )




 ;(;  


6 

  
;(;
 


 
  

 


  %
  
 



 
   9    



6




 

 


 

 

  9

+   
 

9


;(;




;(;)   


 

  A  ;(;   
 3  
   )    

 


,


 
!"#$

*P ëc
*

c





  
 
  (
 *  +    

    

  
 


 
    <
   

  
 
  
8+010
<

  
 
 

/

 

 
  
 
 

   
 (    






 




 


,
0/ 
!2#$




<



3 

 





     

   
 



 9 ! 9$ 


 
 !$ 



/
@  
 
c
 ô 




   (

  +


 ! (+$  
  
 3




 
 
      
  
 
 <
 

 
 @  

(+ *

  
 
  @

  
  
 
 *



 



 

/






+@




 , 
 

 ,

!-#$

"
(

*

 


/




 


3
 

<


,

0/ 
 



 

 ,!'#$



 





  A<
*     
( 

)

 
  
  

 
 




 








 

   

 
  
 


3



 





  


  
  
 
  
   
 
   

 
 0*  

  
,0/ 
!2#$




B
/ 
  

.

 
 

 !>#$

"ë !>#$

å+ 

!>#$

ë 
 

 !>#$

P
   
!>#$




         
  
 
3

    

 
 
  
 

 
 *( 


  
  
 
     
 
  

  
   

  
     

  
   
  
  
 

 ,0/ !2#$




 


  


  

 
 


c
 - 

 A   


   

,!>#$

"
 





/

,!-#$


 



 





  


,!-#$



   

  

 

    
  


+

 
   
 
    
 




)


)
 

,!2#$




4

 
5 4) 



5
!2#$



A 
 

 

8+010,!-#$

"A 

  ,!-#$

å 
  


 

 
 ,

!-#$




 


4

54

5!-#$



A 

 

  ,!-#$

* 
*

c