QandA Format

POLITICAL LAW
PART I
I
TRUE or FALSE. Answer TRUE if the statement is true, or FALSE if the
statement is false. Explain your answer in not more than two (2) sentences. (5%)
[a]
A law making "Bayan Ko" the new national anthem of the Philippines,
in lieu of "Lupang Hinirang," is constitutional.
SUGGESTED ANSWER:
True. Congress may by law adopt a new national anthem, but it shall
take effect only upon ratification by the people in a national referendum
(Section 2, Article XVI of the Constitution).
[b]
Under the archipelago doctrine, the waters around, between, and

connecting the islands of the archipelago form part of the territorial
sea of the archipelagic state.
SUGGESTED ANSWER:
False. Under Article I of the Constitution, the waters around, between
and connecting the islands of the Philippines form part of its internal waters.
Under Article 49(1) of the U.N. Convention on the Law of the Sea, these waters
do not form part of the territorial sea but are described as archipelagic
waters.
[c]
A law that makes military service for women merely voluntary is

constitutional.
SUGGESTED ANSWER:
False. In the defence of the state, all citizens may be required by law to
render personal, military or civil service (Section 4, Article II of the
Constitution). The duty is imposed on all citizens without distinction as to
gender.
ALTERNATIVE ANSWER:
It may make military service voluntary on females because of
substantial difference.
[d]
A law fixing the passing grade in the Bar examinations at 70%, with
no grade lower than 40% in any subject, is constitutional.
SUGGESTED ANSWER:
False. Such a law entails amendment of the Rules of Court promulgated
by the Supreme Court. The present Constitution has taken away the power of
Congress to alter the Rules of Court (Echegaray v. Secretary of Justice, 301
SCRA 96 (1999)) The law will violate the principle of separation of powers.
ALTERNATIVE ANSWER:
True. Deliberations in the ConCon reveal that Congress retains the
power to amend or alter the rules because the power to promulgate rules is
essentially legislative even though the power has been deleted in the 1987
Constitution. If the law, however, is retroactive, it is unconstitutional
because it is prejudicial.
[e]
An educational institution 100% foreign-owned may be validly

established in the Philippines.
SUGGESTED ANSWER:
True. An educational institution which is 100% foreign-owned may be
established in the Philippines if it is established by religious groups and
mission boards (Section 4[2], Article XIV of the Constitution).
II
Despite lingering questions about his Filipino citizenship and his one-year
residence in the district, Gabriel filed his certificate of candidacy for congressman
before the deadline set by law. His opponent Vito, hires you as lawyer to contest
Gabriels candidacy.
[a]
Before election day, what action or actions will you institute against
Gabriel, and before which court, commission, or tribunal will you file
such action/s?
SUGGESTED ANSWER:
I will file a petition to cancel the certificate of candidacy of Gabriel
before the Commission on Elections because of the false material
representation that he is qualified to run for congress man (Section 78 of the
Omnibus Election Code; Fermin v. Commission on Elections, 574 SCRA 787
(2008)). The question of disqualification of Gabriel cannot be raised before the
House or Representatives Electoral Tribunal because he is not yet a member
of the House of Representatives (Aquino v. Commission on Elections, 248
SCRA 400 (1995)).
[b]
If, during the pendency of such action/s but before election day,
Gabriel withdraws his certificate of candidacy, can he be substituted
as candidate? If so, by whom and why? If not, why not?
SUGGESTED ANSWER:
If Gabriel withdraw he may be substituted by a candidate nominated by
his political party. Section 77 of the Omnibus Election Code states: If after
the last day for filing the certificates of candidacy, an official candidate of a
registered or accredited political party dies, withdraws, or is disqualified for
any cause, only a person belonging to, and certified by the same political
party may file a certificate of candidacy to replace the candidate who died,
withdrew, or was disqualified.
[c]
If the action/s instituted should be dismissed with finality before the

election, and Gabriel assumes office after being proclaimed the winner
in the election, can the issue of his candidacy and/or citizenship and
residence still be questioned? If so, what action or actions may be
filed and where?
SUGGESTED ANSWER:
The question of the citizenship and residence of Gabriel can be
questioned in the House of Representatives Electoral Tribunal by filing a quo
warranto case. Since it is within its jurisdiction to decide the question of the
qualification of Gabriel, the decision of the Commission on Election does not
constitute res judicata (Jalandoni v. Crespo, HRET Case No. 01-020 March 6,
2003). Once a candidate for member of the House of Representatives has been
proclaimed, the House of Representatives Electoral Tribunal acquires
jurisdiction over election contests relating to his qualifications. (Guerrero v.
Commission on Elections, 336 SCRA 158 (2000)).
III
The ministry of Bulalakaw, Leyte, passed Ordinance No. 1234, authorizing
the expropriation of two parcels of land situated in the poblacion as the site of a
freedom park, and appropriating the funds needed therefor. Upon review, the
Sangguniang Panlalawigan of Leyte disapproved the ordinance because the
municipality has an existing freedom park which, though smaller in size, is still
suitable for the purpose, and to pursue expropriation would be needless
expenditure of the peoples money. Is the disapproval of the ordinance correct?
Explain your answer. (2%)
SUGGESTED ANSWER:
The disapproval of the ordinance is not correct. Under Section 56 (c)

(Local Government Code), the Sangguniang Panlalawigan of Leyte can declare
the ordinance invalid only if it is beyond the power of the Sangguniang Bayan
of Bulalakaw. In the instant case, the ordinance is well within the power of
the Sangguniang Bayan. The disapproval of the ordinance by the Sangguniang
Panlalawigan of Leyte was outside its authority having been done on a matter
pertaining to the wisdom of the ordinance which pertains to the Sangguniang
Bayan (Moday v. Court of Appeals, 268 SCRA 386 [1997]).
IV
The Municipality of Pinatukdao is sued for damages arising from injuries
sustained by a pedestrian who was hit by a glass pane that fell from a dilapidated
window frame of the municipal hall. The municipality files a motion to dismiss the
complaint, invoking state immunity from suit. Resolve the motion with reasons.
(3%)
SUGGESTED ANSWER:
The motion to dismiss should be denied. Under Section 24 of the Local
Government Code and Articles 2189 of the Civil Code, the Municipality of
Pinatukdao is liable for damages arising from injuries to person by reason of
negligence of local government units or local offices of the defective
condition of the municipal hall, which is under their control and supervision.
V
To address the pervasive problem of gambling, Congress is considering the
following options: (1) prohibit all forms of gambling; (2) allow gambling only on
Sundays; (3) allow gambling only in government-owner casinos; and (4) remove all
prohibitions against gambling but impose a tax equivalent to 30% on all winnings.
[a]
If Congress chooses the first option and passes the corresponding law
absolutely prohibiting all forms of gambling, can the law be validly
attacked on the ground that it is an invalid exercise of police power?
SUGGESTED ANSWER:
The law absolutely prohibiting all forms of gambling is a valid exercise
of police power, because it is an evil that undermines the social, moral and
economic growth of the nation (People v. Punto, 63 Phil. 481 [1939]).
[b]
If Congress chooses the last option and passes the corresponding law
imposing a 30% tax on all winnings and prizes won from gambling,
would the law comply with the constitutional limitations on the

exercise of the power of taxation? Explain your answer (2%)
SUGGESTED ANSWER:
A tax of 30% on winnings from gambling does not violate due process as
to the reasonableness of the rate of the tax imposed. Taxes of non-useful
enterprises may be increased to restrain the number of persons who might
otherwise engage in it (Ermita-Malate Hotel and Motel Operators Association
Inc, v. City Mayor of Manila, 20 SCRA 849 [1967]). Taxes may be imposed for
the attainment of the objective of police power (Luto v. Araneta, 98 Phil 148
[1955]).
VI
In a criminal prosecution for murder, the prosecution presented, as witness,
an employee of the Manila Hotel who produced in court a videotape recording
showing the heated exchange between the accused and the victim that took place
at the lobby of the hotel barely 30 minutes before the killing. The accused objects
to the admission of the videotape recording on the ground that it was taken without
his knowledge or consent, in violation of his right to privacy and the AntiWiretapping law. Resolve the objection with reasons (3%)
SUGGESTED ANSWER:
The objection should be overruled. What the law prohibits is the
overhearing, interpreting, and recording of private communications. Since
the exchange of heated words was not private, its videotape recording is not
prohibited. (Navarro v. Court of Appeals, 313 SCRA 153 [1993]).
VII
Crack agents of the Manila Police Anti-Narcotics Units were on surveillance
of a cemetery where the sale and use of prohibited drugs were rumored to be
rampant. The team saw a man with reddish and glassy eyes walking unsteadily
towards them, but he immediately veered away upon seeing the policemen. The
team approached the man, introduced themselves as peace officers, then asked
what he had in his clenched fist. Because the man refused to answer, a policeman
pried the fist open and saw a plastic sachet filled with crystalline substance. The
team then took the man into custody and submitted the contents of the sachet to
forensic examination. The crystalline substance in the sachet turned out to be
shabu. The man was accordingly charged in court.
During the trial, the accused:
[a]
challenged the validity of his arrest; (2%) and
SUGGESTED ANSWER:
The warrantless arrest of the accused was valid. The cemetery was
rumored to be a place where the sale of the drug was rampant. The eyes of the
accused were reddish and glassy. He was walking unsteadily, veered away
from the policemen upon seeing them, and refused to say what was in his
clenched fist. The policemen had sufficient reason to stop him and
investigate if he was high on drugs. Since the investigation showed that the
accused was in possession of shabu, he could be arrested without the need for
a warrant (Manalili v. Court of Appeals, 28C SCRA 400 [1997]).
ALTERNATIVE ANSWER:
The warrantless arrest of the accused was void. There was no overt act
or suspicious circumstances that would indicate that he was committing a
crime. The search preceded his arrest. (People v. Tudtud, 412 SCRA 142
[2003]).
[b]
objected to the admission in evidence of the prohibited drug, claiming

that it was obtained in illegal search and seizure. (2%) Decide with
reasons.
SUGGESTED ANSWER:
Since the search and seizure of the shabu were incidental to a valid
warrantless arrest, the shabu is admissible in evidence. (Manalili v. Court of
Appeals, 280 SCRA 400 [1997]).
ALTERNATIVE ANSWER:
The search and seizure were illegal, because they preceded the arrest
and were not incidental to the arrest. The shabu confiscated as a result
thereof is inadmissible in evidence. (People v. Tudtud, 412 SCRA 142 [2003]).
VIII
Congressman Nonoy delivered a privilege speech charging the
Intercontinental Universal Bank (IUB) with the sale of unregistered foreign
securities, in violation of RA 8799. He then filed, and the House of Representatives
unanimously approved, a Resolution directing the House Committee on Good
Government (HCGG) to conduct an inquiry on the matter, in aid of legislation, in
order to prevent the recurrence of any similar fraudulent activity.
The HCGG immediately scheduled a hearing and invited the responsible
officials of IUB, the Chairman and Commissioners of the Securities and Exchange
Commission (SEC), and the Governor of the Bangko Sentral ng Pilipinas (BSP). On
the date set for the hearing, only the SEC Commissioners appeared, prompting
Congressman Nonoy to move for the issuance of the appropriate subpoena ad
testificundum to compel the attendance of the invited resource persons.
The IUB officials filed suit to prohibit the HCGG from proceeding with the
inquiry and to quash the subpoena, raising the following arguments:
[a]
The subject of legislative investigation is also the subject of criminal

and civil actions pending before the courts and the prosecutors office;
thus, the legislative inquiry would pre-empt judicial action; and
SUGGESTED ANSWER:
The argument is not tenable; since this is an essential component of
legislative power, it cannot be made subordinate to criminal and civil actions.
Otherwise, it would be very easy to subvert any investigation in aid of
legislation through the convenient ploy of instituting criminal and civil
actions (Standard Chartered Bank [Philippine Branch] v. Senate Committee
on Banks, Financial Institutions, and Currencies, 541 SCRA 456 [2007]).
[b]
Compelling the IUB officials, who are also respondents in the criminal
and civil cases in court, to testify at the inquiry, would violate their
constitutional right against self incrimination. Are the foregoing
arguments tenable? Reasons.
SUGGESTED ANSWER:
The argument is untenable. Since the IUB officials were not being
subjected t a criminal penalty, they cannot invoke the right against selfincrimination unless a question calling for an incriminating answer is
propounded. (Standard Chartered Bank [Philippine Branch] v. Senate
Committee on Banks, Financial Institutions, and Currencies, 541 SCRA 456
[2007]).
[c]
May the Governor of the BSP validly invoke the executive privilege
and, thus, refuse to attend the legislative inquiry? Why or why not?
SUGGESTED ANSWER:
No, because the power to invoke executive privilege is limited to the
President (Senate of the Philippines v. Ermita, 488 SCRA 1 [2006]).
IX
Warlito, a natural-born Filipino, took up permanent residence in the United
States, and eventually acquired American citizenship. He then married Shirley, and
American, and sired three children. In August 2009, Warlito decided to visit the
Philippines with his wife and children: Johnny, 23 years of age; Warlito, Jr., 20;
and Luisa, 17.
While in the Philippines, a friend informed him that he could reacquire

Philippine citizenship without necessarily losing U.S. nationality. Thus, he took the
oath of allegiance required under R.A. 9225.
[a]
Having reacquired Philippine citizenship, is Warlito a natural-born or

a naturalized Filipino citizen today? Explain your answer. (3%)
SUGGESTED ANSWER:
Warlito is a natural-born Filipino citizen. Repatriation of Filipinos
results in the recovery of the original nationality. Since Warlito was a naturalborn Filipino citizen before he lost his Philippine citizenship, he was restored
to his former status as a natural-born Filipino citizen (Bengson v. House of
Representatives Electoral Tribunal, 357 SCRA 545[2001]; R.A. 2630).
[b]
With Warlito having regained Philippine citizenship, will Shirley also

become a Filipino citizen? If so, why? If not, what would be the most
speedy procedure for Shirley to acquire Philippine citizenship?
Explain. (3%)
SUGGESTED ANSWER:
Shirley will not become a Filipino citizen, because under Republic Act
No. 9225, Warlitos reacquisition of Philippine citizenship did not extend its
benefits to Shirley. She should instead file with the Bureau of Immigration a
petition for the cancellation of her alien certificate of registration on the
ground that in accordance with Section 15 of the Naturalization Law; because
of her marriage to Warlito, she should be deemed to have become a Filipino
citizen. She must allege and prove that she possesses none of the
disqualifications to become a naturalized Filipino citizen (Burca v. Republic,
51 SCRA 248 [1973]).
[c]
Do the children Johnny, Warlito Jr., and Luisa become Filipino

citizens with their fathers reacquisition of Philippine citizenship?
SUGGESTED ANSWER:
Under Section 18 of Republic Act No. 9225, only the unmarried
children who are below eighteen years of age of those who reacquire
Philippine citizenship shall be deemed Filipino citizens. Thus, only Luisa, who
is seventeen years old, became a Filipino citizen.
Maximino, an employee of the Department of Education, is administratively

charged with dishonesty and gross misconduct. During the formal investigation of
the charges, the Secretary of Education preventively suspended him for a period of
sixty (60) days. On the 60th day of the preventive suspension, the Secretary
rendered a verdict, finding Maximino guilty, and ordered his immediate dismissal
form the service.
Maximino appealed to the Civil Service Commission (CSC), which affirmed
the Secretary's decision. Maximino then elevated the matter to the Court of Appeals
(CA). The CA reversed the CSC decision, exonerating Maximino. The Secretary of
Education then petitions the Supreme Court (SC) for the review of the CA decision.
[a]
Is the Secretary of Education a property party to seek the review of

the CA decision exonerating Maximino? Reasons. (2%)
SUGGESTED ANSWER:
The Secretary of Education is not the proper party to seek a review of
the decision of the Court of Appeals, because he is the one who heard the
case and imposed the penalty. Being the disciplinary authority, the Secretary
of Education should be impartial and should not actively participate in
prosecuting Maximino (National Appellate Board of the National Police
Commission v. Mamauag, 466 SCRA 624 [2005]).
[b]
If the SC affirms the CA decision, is Maximino entitled to recover back

salaries corresponding to the entire period he was out of the service?
SUGGESTED ANSWER:
Maximino cannot recover back salaries during his preventive
suspension. The law does not provide for it. Preventive suspension is not a
penalty. During the preventive suspension, he was not yet out of the service.
However, he is entitled to back wages from the time of his dismissal until his
reinstatement. The enforcement of the dismissal pending appeal was punitive,
and he was exonerated (Gloria v. Court of Appeals, 306 SCRA 287 [1999]).
PART II
XI
statement is false. Explain your answer in not more than two (2) sentence. (5%)
[a]
Aliens are absolutely prohibited from owning private lands in the

Philippines.
SUGGESTED ANSWER:
False. Under Section 7, Article XII of the Constitution, aliens may

acquire private land by hereditary succession. Under Section 8, Article XII of
the Constitution, natural born citizens of the Philippines who lost their
Filipino citizenship may be transferees of private land.
[b]
A de facto public officer is, by right, entitled to receive the salaries and
emoluments attached to the public office he holds.
SUGGESTED ANSWER:
True. De facto officers are entitled to emoluments attached to the
office for actual services rendered. (Civil Liberties Union v. Executive
Secretary, 194 SCRA 317 [1991]).
[c]
The President exercises the power of control over all executive

departments and agencies, including government-owned or controlled
corporations.
SUGGESTED ANSWER:
True. Under Section 18, Article VII of the Constitution the President
has control of all executive departments, bureaus and offices. His power of
control extends to agencies with respect to their administrative functions,
even if they are performing quasi-judicial functions (Cruz v. Secretary of
Environment and Natural Resources, 347 SCRA 128 [2008]) and to
government-owned and controlled corporations (National Marketing
Corporation v. Arca, 29 SCRA 648 [1969]).
[d]
Decisions of the Ombudsman imposing penalties in administrative

disciplinary cases are merely recommendatory.
SUGGESTED ANSWER:
False. Under Section 15(3) of the Ombudsman Act, the Ombudsman has
the power to ensure compliance with the imposition of penalty of public
officers it finds at fault by virtue of its disciplinary authority (Office of the
Ombudsman v. Madriaga, 503 SCRA 631 [2006]).
[e]
Dual citizenship is not the same as dual allegiance.
SUGGESTED ANSWER:
True. Dual citizenship arises when, as a result of the concurrent

application of the different laws of two or more states, a person is
simultaneously considered a national y those states and is involuntary.
Dual allegiance refers to the situation in which a person simultaneously
owes by some positive and voluntary act, loyalty to two or more states
(Mercado v. Manzano, 307 SCRA 630 [1999]).
XII
William, a private American citizen, a university graduate and frequent
visitor to the Philippines, was inside the U.S. embassy when he got into a heated
argument with a private Filipino citizen. Then, in front of many shocked witnesses,
he killed the person he was arguing with. The police came, and brought him to the
nearest police station. Upon reaching the station, the police investigator, in halting
English, informed William of his Miranda rights, and assigned him an independent
local counsel. William refused the service of the lawyer currently based in the U.S.
The request was denied, and the counsel assigned by the police stayed for the
duration of the investigation.
William protested his arrest.
[a]
He argued that since the incident took place inside the U.S. embassy,
Philippine courts have no jurisdiction because the U.S. embassy
grounds are not part of Philippine territory; thus, technically, no
crime under Philippine law was committed. Is William correct?
SUGGESTED ANSWER:
William is not correct. The premises occupied by the United States
Embassy do not constitute territory of the United States but that of the
Philippines. Crimes committed within them are subject to the territorial
jurisdiction of the Philippines. Since William has no diplomatic immunity, the
Philippines can prosecute him if it acquires custody over him [Reagan v.
Commissioner of Internal Revenue, 30 SCRA 968 [1969]].
[b]
He also claimed that his Miranda rights were violated because he was
not given the lawyer of his choice; that being an American, he should
have been informed of his rights in proper English; and that he
should have been informed of his rights as soon as he was taken into
custody, not when he was already at the police station. Was William
denied his Miranda rights? Why or why not? (3%)
SUGGESTED ANSWER:
The fact that the police officer gave him the Miranda warning in halting
English does not detract from its validity. Under Section 2(b) of Republic Act
No. 7438, it is sufficient that the language used was known to and understood
by him. William need not be given the Miranda warning before the
investigation started. William was not denied his Miranda rights. It is not
practical to require the police office to provide a lawyer of his own choice
from the United States [Gamboa v. Cruz, 162 SCRA 642 [1988]].
[c]
If William applies for bail, claiming that he is entitled thereto under

the international standard of justice and that he comes from a U.S.
State that has outlawed capital punishment, should William be
granted bail as a matter of right? Reasons. (3%)
SUGGESTED ANSWER:
William should not be granted bail as a matter of right. He is subject to
Philippine criminal jurisdiction, therefore, his right to bail must be
determined on the basis of Section 13, Article III of the Constitution.
XIII
A terrorist group called the Emerald Brigade is based in the State of
Asyaland. The government of Asyaland does not support the terrorist group, but
being a poor country, is powerless to stop it.
The Emerald Brigade launched an attack on the Philippines, firing two
missiles that killed thousands of Filipinos. It then warned that more attacks were
forthcoming. Through diplomatic channels, the Philippines demanded that
Asyaland stop the Emerald Brigade; otherwise, it will do whatever is necessary to
defend itself.
Receiving reliable intelligence reports of another imminent attack by the
Emerald Brigade, and it appearing that Asyaland was incapable of preventing the
assault, the Philippines sent a crack commando team to Asyaland. The team stayed
only for a few hours in Asyaland, succeeded in killing the leaders and most of the
members of the Emerald Brigade, then immediately returned to the Philippines.
[a]
Was the Philippine action justified under the international law

principle of self-defense? Explain your answer. (3%)
SUGGESTED ANSWER:
The Philippine action cannot be justified as self-defense. Self-defense is
an act of State by reason of an armed attack by another State. The acts of
terrorism in this case were acts of a private group and cannot be attributed to
Asyaland, which does not support the Emerald Brigade. Article 51 of the
Charter of the United Nations has no applicability, because of self-defense in
Article 51 contemplates a response to a legitimate armed attack by a State
against another State. The attack by the Emerald Brigade is an attack by a
private group without authority or as an organ of Asyaland.
[b]
As a consequence of the foregoing incident, Asyaland charges the

Philippines with violation of Article 2(4) of the United Nations Charter
that prohibits the threat or use of force against the territorial
integrity or political independence of any State. The Philippines
counters that its commando team neither took any territory nor
interfered in the political processes of Asyaland. Which contention is
correct? Reasons. (3%)
SUGGESTED ANSWER:
The contention of Asyaland is correct. The Philippines violated Article
2(4) of the Charter of the United Nations, which prohibit States from the
threat or use of force against the territorial integrity of any State.
[c]
Assume that the commando team captured a member of the Emerald

Brigade and brought him back to the Philippines. The Philippine
Government insists that a special international tribunal should try
the terrorist. On the other hand, the terrorist argues that terrorism is
not an international crime and, therefore, the municipal laws of the
Philippines, which recognize access of the accused to constitutional
rights, should apply. Decide with reasons. (3%)
SUGGESTED ANSWER:
The terrorist should be tried in the Philippines. Section 58 of Republic
Act No. 9372, the Human Security Act provides for its extraterritorial
application to individual persons who, although outside the territorial limits
of the Philippines, commit an act of terrorism directly against Filipino
citizens where their citizenship was a factor in the commission of the crime.
XIV
The Philippine Government is negotiating a new security treaty with the
United States which could involve engagement in joint military operations of the
two countries armed forces. A loose organization of Filipinos, the Kabataan at
Matatandang Makabansa (KMM) wrote the Department of Foreign Affairs (DFA) and
the Department of National Defense (DND) demanding disclosure of the details of
the negotiations, as well as copies of the minutes of the meetings. The DFA and the
DND refused, contending that premature disclosure of the offers and counter-offers
between the parties could jeopardize on-going negotiations with another country.
KMM filed suit to compel disclosure of the negotiation details, and he granted
access to the records of the meetings, invoking the constitutional right of the people
to information on matters of public concern.
[a]
Decide with reasons. (3%)
SUGGESTED ANSWER:
The petition of KMM must be denied. Diplomatic negotiations are

privileged in order to encourage a frank exchange of exploratory ideas
between the parties by shielding the negotiations from public view (Akbayan
Citizens Action Party v. Aquino, 558 SCRA 468 [2008]).
[b]
Will your answer be the same if the information sought by KMM

pertains to contracts entered into by the Government in its
proprietary or commercial capacity? Why or why not? (3%)
SUGGESTED ANSWER:
KMM is entitled to have access to information Government in the
exercise of its proprietary or commercial capacity. The right to information
under the Constitution does not exclude contracts of public interest and are
not privileged (Section 7, Article III of the Constitution; Valmonte v.
Belmonte, 170 SCRA 256 [1989]).
XV
The KKK Television Network [KKK-TV] aired the documentary, Case Law:
How the Supreme Court Decides, without obtaining the necessary permit required
by P.D. 1986. Consequently, the Movie and Television Review and Classification
Board (MTRCB) suspended the airing of KKK-TV programs. MTRCB declared that
under P.D. 1986, it has the power of prior review over all television programs,
except newsreels and programs by the Government, and the subject
documentary does not fall under either of these two classes. The suspension order
was ostensibly based on Memorandum Circular No. 98-17 which grants MTRCB
the authority to issue such an order.
KKK-TV filed a certiorari petition in court raising the following issues:
[a]
The act of MTRCB constitutes prior restraint and violates the

constitutionally guaranteed freedom of expression; (3%) and
SUGGESTED ANSWER:
The contention of KKK-TV is not tenable. The prior restraint is a valid
exercises of police power. Television is a medium which reaches even the eyes
and ears of children (Iglesia ni Cristo v. Court of Appeals, 259 SCRA 529
[1996]).
ALTERNATIVE ANSWER:
The memo circular is unconstitutional. The act of the Movie and
Television Review and Classification Board constitutes prior restraint and
violates the freedom of expression. Any system of prior restraint has against
it a heavy presumption against its validity. Prior restraint is an abridgment of
the freedom of expression. There is no showing that the airing of the
programs would constitute a clear and present danger (New York Times v.
United States, 403 U.S. 713 [1971]).
[b]
While Memorandum Circular No. 98-17 was issued and published in

a newspaper of general circulation, a copy thereof was never filed with
the Office of the National Register of the University of the Philippines
Law Center. (2%) Resolve the foregoing issues, with reasons.
SUGGESTED ANSWER:
In accordance with Chapter 2, Book VII of the Administrative Code of
1987, Memorandum Circular No. 98-17 must be filed with the University of
the Philippines Law Center. It cannot be enforced until it has been filed with
the University of the Philippines Law Center (Pilipinas Shell Petroleum
Corporation v. Commissioner of Internal Revenue, 541 SCRA 316 [2007]).
XVI
[a]
Angelina, a married woman, is a Division Chief in the Department of

Science and Technology. She had been living with a married man, not
her husband, for the last fifteen (15) years. Administratively charged
with immorality and conduct prejudicial to the best interest of the
service, she admits her live-in arrangement, but maintains that this
conjugal understanding is in conformity with their religious beliefs. As
members of the religious sect, Yahwehs Observers, they had executed
a Declaration of Pledging Faithfulness which has been confirmed and
blessed by their Council of Elders. At the formal investigation of the
administrative case, the Grand Elder of the sect affirmed Angelinas
testimony and attested to the sincerity of Angelina and her partner in
the profession of their faith. If you were to judge this case, will you
exonerate Angelina? Reasons. (3%)
SUGGESTED ANSWER:
Angelina should be exonerated. First, it has not been shown that there
is a compeling state interest which will be undermined by granting her
exemption. Second, it has not been shown that the least intrusive means
possible was used so that the free exercise of religion is not infringed any
more than necessary (Estrada v. Escritor, 492 SCRA 1 [2006]).
[b]
Meanwhile, Jenny, also a member of Yahwehs Observers was severely

disappointed at the manner the Grand Elder validated what she
considered was an obviously immoral conjugal arrangement between
Angelina and her partner. Jenny filed suit in court, seeking the
removal of the Grand Elder from the religious sect on the ground that
his act in supporting Angelina not only ruined the reputation of their
religion, but also violated the constitutional policy upholding the
sanctity of marriage and the solidarity of the family. Will Jennys case
prosper? Explain your answer. (2%)
SUGGESTED ANSWER:
The case will not prosper. This involves the performance of official
functions of religious authorities. Because of separation of Church and State,
courts must respect the autonomy of the religious sect in such matters
(Taruc v. Dela Cruz, 453 SCRA 123 [2005]).
XVII
Filipinas Computer Corporation [FCC], a local manufacturer of computers
and computer parts, owns a sprawling plant in a 5,000-square meter lot in Pasig
City. To remedy the citys acute housing shortage, compounded by a burgeoning
population, the Sangguniang Panglungsod authorized the City Mayor to negotiate
for the purchase of the lot. The Sanggunian intends to subdivide the property into
small residential lots to be distributed at cost to qualified city residents. But FCC
refused to sell the lot. Hard-pressed to find a suitable property to house its
homeless residents, the City filed a complaint for eminent domain against FCC.
[a]
If FCC hires you as lawyer, what defense or defenses would you set up
in order to resist the expropriation of the property? Explain. (5%)
SUGGESTED ANSWER:
I will raise the defense that the selection of the lot to be expropriated
violates due process, because it is arbitrary. Since it is devoted to commercial
use, the beneficiaries of the expropriation will not settle there and will
instead merely lease out or resell the lot for a profit. (Manotok v. National
Housing Authority, 150 SCRA 89 [1987]).
[b]
If the Court grants the Citys prayer for expropriation, but the City
delays payment of the amount determined by the court as just
compensation, can FCC recover the property from Pasig City? Explain.
(2%)
SUGGESTED ANSWER:
The mere delay in the payment of the just compensation will not
entitle the Filipinas Corporation to recover the property.
Instead, legal interest on the just compensation should be paid.
(National Power Corporation v. Henson, 300 SCRA 751 [1998]). However, if
the payment was not made within five (5) years from the finality of judgment
in the expropriation case, Filipina Computer Corporation can recover the
property. To be just, the compensation must be paid within a reasonable time.

(Republic v. Lim, 462 SCRA 265 [2005]).
[c]
Suppose the expropriation succeeds, but the City decides to abandon

its plan to subdivide the property for residential purposes having
found a much bigger lot, can FCC legally demand that it be allowed to
repurchase the property from the City of Pasig? Why or why not? [2%]
SUGGESTED ANSWER:
If the lot was expropriated with the condition that it can be used only
for low-cost housing, it should be returned to Filipinas Computer Corporation
upon abandonment of the purpose (Heirs of Timoteo Moreno v. Mactan-Cebu
International Airport Authority, 413 SCRA 502 [2003]).
XVIII
What are the essential elements of a valid petition for a peoples initiative to
amend the 1987 Constitution? Discuss. (2%).
SUGGESTED ANSWER:
The elements of a valid petition for a peoples initiative are the
following:
1.
At least twelve per cent (12%) of the registered voters, of which every
legislative district must be represented by at least three percent (3%) of
the registered voters in it, should directly sign the entire proposal; and
2.
The draft of the proposed amendment must be embodied in the petition

(Lambino v. Commission on Elections, 505 SCRA 160 [2006]).
LABOR AND SOCIAL LEGISLATION

PART I
I
[a]
An employment contract prohibiting employment in a competing

company within one year from separation is valid.
SUGGESTED ANSWER:
True. An employment contract prohibiting employment in a competing
company within a reasonable period of one year from separation is valid. The
employer has the right to guard its trade secrets, manufacturing formulas,
marketing strategies and other confidential programs and informations.
[b]
All confidential employees are disqualified to unionize for the purpose

of collective bargaining.
SUGGESTED ANSWER:
False. Not all confidential employees are disqualified to unionize for the
purpose of collective bargaining. Only confidential employees, who, because
of the nature of their positions, have access to confidential information
affecting labor-management relations as an integral part of their position are
denied the right of self-organization for purpose of collective bargaining (San
Miguel Corporation Supervisors v. Laguesma, 277 SCRA 370 [1997]).
[c]
A runaway shop is an act constituting unfair labor practice.
SUGGESTED ANSWER:
False. A runaway shop is not automatically an unfair labor practice. It
is an unfair labor practice if the relocation that brought about the runaway
shop is motivated by anti-union animus rather than for business reasons.
ANOTHER SUGGESTED ANSWER:
True. The transfer of location of a strike bound establishment to
another location (run-away shop) can constitute an act of interference or
restraint of the employees right to self-organization. There is an inferred
anti-union bias of the employer (Labor Code, Art. 248[a]). The provisions of
Art. 248[a] should be broadly and liberally interpreted to achieve the policy
objective of the law, i.e., to enhance the workers right to self-organization
and collectively bargain (Constitution, Art. XIII, Sec. 3 & Art. III, Sec. 8; Labor
Code, Arts. 243, 244 & 245; Caltex Filipino Managers, etc. v. CIR, 44 SCRA
650 [1972]).
[d]
In the law on labor relations, the substitutionary doctrine prohibits a

new collective bargaining agent from repudiating an existing collective
bargaining agreement.
SUGGESTED ANSWER:
True. The existing collective bargaining agreement (in full force and
effect) must be honored by a new exclusive bargaining representative because
of the policy of stability in labor relations between an employer and the
workers.
[e]
The visitorial and enforcement powers of the DOLE Regional Director

to order and enforce compliance with labor standards can be
exercised even when the individual claim exceeds P5,000.00.
SUGGESTED ANSWER:
True. The visitorial and enforcement powers of the DOLE Regional
Director to order and enforce compliance with labor standards laws can be
exercised even when the individual claims exceed P5,000.00. The authority
under Article 128 may be exercised regardless of the monetary value involved.
Under Article 129, however, the authority is only for claims not exceeding
P5,000.00 per claimant.
II
[a]
Enumerate at least four (4) policies enshrined in Section 3, Article XIII

of the Constitution that are not covered by Article 3 of the Labor Code
on declaration of basic policy. (2%)
SUGGESTED ANSWER:
Four (4) policies enshrined in Section 3, Article XIII of the 1987
Constitution which are not covered by Article 3 of the Labor Code on
declaration of basic policy are:
1.
All workers shall have the right to peaceful concerted activities,

including the right to strike in accordance with law.
2.
They shall be entitled to a living wage.
3.
They shall participate in policy and decision making processes

affecting their rights and benefits as may be provided by law.
4.
The state shall promote the principle of shared responsibility

between workers and employers.
[b]
Clarito, an employee of Juan, was dismissed for allegedly stealing

Juans wristwatch. In the illegal dismissal case instituted by Clarito,
the Labor Arbiter, citing Article 4 of the Labor Code, ruled in favor of
Clarito upon finding Juans testimony doubtful. On appeal, the NLRC
reversed the Labor Arbiter holding that Article 4 applies only when the
doubt involves implementation and interpretation of the Labor Code
provisions. The NLRC explained that the doubt may not necessarily be
resolved in favor of labor since this case involves the application of the
Rules on Evidence, not the Labor Code. Is the NLRC correct? Reasons.
(3%)
SUGGESTED ANSWER:
The NLRC is not correct. It is a well settled doctrine that if doubts exist
between the evidence presented by the employer and the employee, the scale
of justice must be tilted in favor of the latter. It is a time honored rule that in
controversies between laborer and master, doubts necessarily arising from the
evidence, or in the implementation of the agreement and writing should be
resolved in favor of the laborer.
No, the NLRC is not correct. Art. 221 of the Labor Code read: In any
proceeding before the Commissionthe rules of evidence prevailing in Courts
of lawshall not be controlling and it is the spirit and intention of this Code
that the Commission and its members and the Labor Arbiters shall use every
and reasonable means to ascertain the facts in each case speedily and
objectively without regard to technicalities of law and procedure, all in the
interest of due process. The question of doubt is not important in this case.
III
Richie, a driver-mechanic, was recruited by Supreme Recruiters (SR) and its
principal, Mideast Recruitment Agency (MRA), to work in Qatar for a period of two
(2) years. However, soon after the contract was approved by POEA, MRA advised SR
to forego Richie's deployment because it had already hired another Filipino drivermechanic, who had just completed his contract in Qatar. Aggrieved, Richie filed
with the NLRC a complaint against SR and MRA for damages corresponding to his
two years' salary under the POEA-approved contract.
SR and MRA traversed Richie's complains, raising the following arguments:
[a]
The Labor Arbiter has no jurisdiction over the case; (2%)
SUGGESTED ANSWER:
The Labor Arbiter has jurisdiction. Sec. 10, R.A. No. 8042, reads:
"Money Claims. - Notwithstanding any provision

of law to the contrary, the Labor Arbiters of the
National Labor Relations Commission (NLRC)
shall have the original and exclusive jurisdiction
to hear and decide, within ninety (90) calendar
days after filing of the complaint, the claims
arising out of an employer-employee relationship
or by virtue of any law or contract involving
Filipino workers for overseas deployment
including claims for actual, moral, exemplary and
other forms of damages."
The Labor Arbiter has no jurisdiction over the case. The failure to
deploy a worker within the prescribed period without valid reason is a
recruitment violation under the jurisdiction of the POEA.
[b]
Because Richie was not able to leave for Qatar, no employer-employee

relationship was established between them; (2%) and
SUGGESTED ANSWER:
An employer-employee relationship already existed between Richie and
MRA. MRA and SR, as an agent of MRA, already approved and selected and
engaged the services of Richie.
[c]
Even assuming that they are liable, their liability would, at most, be
equivalent to Richie's salary for only six (6) months, not two years.
(3%)
Rule on the validity of the foregoing arguments with reasons.

SUGGESTED ANSWER:
No. In the recent case of Serrano v. Gallant Maritime [G.R. No. 167614,
March 24, 2009], the Supreme Court held that the clause "three (3) months
for every year of the unexpired term, whichever is less" in Sec. 10, R.A. 8042
is unconstitutional. Richie is therefore entitled to two (2) years salaries due
him under the POEA approved contract.
IV
Diosdado, a carpenter, was hired by Building Industries Corporation (BIC),
and assigned to build a small house in Alabang. His contract of employment
specifically referred to him as a project employee, althourgh it did not provide any
particular date of completion of the project.
Is the completion of the house valid cause for the termination of Diosdados
employment? If so, what are the due process requirements that the BIC must
satisfy? If not, why not? (3%)
SUGGESTED ANSWER:
The completion of the house should be a valid cause for termination of
Diosdados employment. Although the employment contract may not state a
particular date, but if it did specify that the termination of the parties
employment relationship was to be on a day certain the day when the
phase of work would be completed the employee cannot be considered to
have been a regular employee (Filipinas Pre-Fabricated Building Systems v.
Puente, 453 SCRA 820 [2005]).
To satisfy due process requirement, under DOLE Department Order No.
19, series of 1993, the employer is required to report to the relevant DOLE
Regional Office the fact of termination of project employee as a result of the
completion of the project or any phase thereof in which one is employed.
No. The completion of the house is not a valid cause for termination
the employment of Diosdado, because of the failure of the BIC to state the
specific project or undertaking the completion or termination of which has
been determined at the time of the engagement of the employee. (Labor
Code, Art. 280). There being no valid termination of employment, there is no
need to comply with the requirements of procedural due process.
V
[a]
Baldo was dismissed from employment for having been absent

without leave (AWOL) for eight (8) months. It turned out that the
reason for his absence was his incarceration after he was mistaken as
his neighbors killer. Eventually acquitted and released from jail,
Baldo returned to his employer and demanded reinstatement and full
backwages. Is Baldo entitled to reinstatement and backwages?
SUGGESTED ANSWER:
Yes. Baldo is entitled to reinstatement. Although he shall not be
entitled to backwages during the period of his detention, but only from the
time the company refused to reinstate him. (Magtoto v. NLRC, 140 SCRA 58
[1985]).
No. Baldo is not entitled to reinstatement and backwages. The dismissal
was for cause, i.e. AWOL. Baldo failed to timely inform the employer of the
cause of his failure to report for work; hence, prolonged absence is a valid
ground to terminate employment.
[b]
Domingo, a bus conductor of San Juan Transportation Company,

intentionally did not issue a ticket to a female passenger, Kim, his
long-time crush. As a result, Domingo was dismissed from
employment for fraud or willful breach of trust. Domingo contests his
dismissal claiming that he is not a confidential employee and,
therefore, cannot be dismissed from the service for breach of trust. Is
Domingo correct? Reasons. (2%)
SUGGESTED ANSWER:
Domingo as a bus conductor holds a position wherein he was reposed
with the employers trust and confidence. In Bristol Myers Squibb (Phils.) v.
Paban (574 SCRA 198 [2008]), the Court established a second class of
positions of trust that involve rank-and-file employees who, in the normal and
routine exercise of their functions, regularly falls under such second class of
persons. This does not mean, however, that Domingo should be dismissed. In
Etcuban v. Sulpicio Lines (448 SCRA 516 [2005]), the Court held that where
the amount involved is miniscule, an employee may not be dismissed for loss
of trust and confidence.
VI
Albert, a 40-year old employer, asked his domestic helper, Inday, to give him
a private massage. When Inday refused, Albert showed her Article 141 of the Labor
Code, which says that one of the duties of a domestic helper is to minister to the
employers personal comfort and convenience.
[a]
Is Indays refusal tenable? Explain. (3%)
SUGGESTED ANSWER:
Yes. Indays refusal to give her employer a private massage is in
accordance with law because the nature of the work of a domestic worker
must be in connection with household chores. Massaging is not a domestic
work.
[b]
Distinguish briefly, but clearly, a househelper from a homeworker.

(2%)
SUGGESTED ANSWER:
Art. 141. Domestic Helper one who performs services in the
employers house which is usually necessary or desirable for the maintenance
and enjoyment thereof and includes ministering to the personal comfort and
convenience of the members of the employers household, including the

services of a family driver.
Art. 153. Homeworker is an industrial worker who works in his/her
home processing raw materials into finished products for an employer. It is a
decentralized form of production with very limited supervision or regulation
of methods of work.
VII
Johnny is the duly elected President and principal union organizer of the
Nagkakaisang Manggagawa ng Manila Restaurant (NMMR), a legitimate labor
organization. He was unceremoniously dismissed by management for spending
virtually 95% of his working hours in union activities. On the same day Johnny
received the notice of termination, the labor union went on strike.
Management filed an action to declare the strike illegal, contending that:
[a]
The union did not observe the cooling-off period mandated by the
Labor Code; (2%) and
SUGGESTED ANSWER:
Yes. The conduct of a strike action without observing the cooling-off
period is a violation of one of the requirements of law which must be
observed. The cooling-off periods required by Article 263 (c) and 263 (f) of the
Labor Code are to enable the DOLE to exert efforts to amicably settle the
controversy, and for the parties to review and reconsider their respective
positions during the cooling-off periods. But the Labor Code also provides that
if the dismissal constitutes union busting, the union may strike immediately.
[b]
The union went on strike without complying with the strike vote
requirement under the Labor Code. (2%)
Rule on the foregoing contentions with reasons.

SUGGESTED ANSWER:
Yes. The conduct of the strike action without a strike vote violates Art.
263 (f) In every case, the union or the employer shall furnish the [DOLE]
the results of the voting at least seven days before the intended strike to
enable the DOLE and the parties to exert the last effort to settle the dispute
without strike action.
[c]
The Labor Arbiter found management guilty of unfair labor practice

for the unlawful dismissal of Johnny. The decision became final.
Thereafter, the NMMR filed a criminal case against the Manager of

Manila Restaurant. Would the Labor Arbiters finding be sufficient to
secure the Managers conviction? Why or why not? (2%)
SUGGESTED ANSWER:
No. The Administrative proceedings shall not be binding on the
criminal case or be considered an evidence of guilt, but merely as proof of
compliance with the requirements to file the said criminal case for the
commission of an unfair labor practice.
VIII
Alexander, a security guard of Jaguar Security Agency (JSA), could not be
given any assignment because no client would accept him, He had a face only a
mother could love. After six (6) months of being on floating status, Alexander sued
JSA for constructive dismissal. The Labor Arbiter upheld Alexanders claim of
constructive dismissal and ordered JSA to immediately reinstate Alexander. JSA
appealed the decision to the NLRC. Alexander sought immediate enforcement of the
reinstatement order while the appeal was pending.
JSA hires you as a lawyer, and seeks your advice on the following:
[a]
Because JSA has no client who would accept Alexander, can it still be
compelled to reinstate him pending appeal even if it has posted an
appeal bond? (2%)
SUGGESTED ANSWER:
No. The posting of the bond of the employer does not have the effect of
staying the execution of the reinstatement aspect of the decision of the Labor
Arbiter (Pioneer Texturizing Corp. v. NLRC, 280 SCRA 806 [1997]).
Yes, JSA can be compelled to reinstate Alexander, pending appeal of
the decision of the Labor Arbiter to the NLRC, even if JSA post a bond.
Art. 223. Appeal. xxx In any event, the decision
of the Labor Arbiter reinstating a dismissed or
separated employee, insofar as the reinstatement
aspect is concerned shall be immediately
executor, even pending appeal and the posting of
a bond.
[b]
Can the order of reinstatement be immediately enforced in the

absence of a motion for the issuance of a writ of execution. (2%)
SUGGESTED ANSWER:
Yes. In Pioneer Texturizing Corp. v. NLRC, the Court held that an award
or order of reinstatement is self-executory and does not require a writ of
execution to implement and enforce it. To require the application for and
issuance of a writ of execution as prerequisite for the execution of a
reinstatement award would certainly betray and run counter to the very
object and intent of Article 223 of the Labor Code (on the immediate
execution of a reinstatement order).
The decision to reinstate pending appeal is not self-executory. A
motion for a writ of execution is mandatory before an order of reinstatement
can be enforced because an employee needs, the assistance of the NLRC
Sheriff to enforce the Order.
[c]
If the order of reinstatement is being enforced, what should JSA do in

order to prevent reinstatement? (2%)
Explain your answers.

SUGGESTED ANSWER:
The employer cannot prevent reinstatement but may, however, opt for
reinstatement of the employee in the payroll of the company without
requiring him to report back to his work (Zamboanga City Water District v.
Buat, 232 SCRA 857 [1994]).
IX
[a]
What is wage distortion? Can a labor union invoke wage distortion as

a valid ground to go on strike? Explain. (2%)
SUGGESTED ANSWER:
Wage distortion: refers to a situation where an increase in the
prescribed wage rates results in the elimination or severe contraction of
intentional quantitative differences in wage or salary rates between and
among employee groups in an establishment as to effectively obliterate the
distinctions embodied in such wage structure based on skills, length of
service and other logical bases of differentiation. (Art. 124, Labor Code)
No, the existence of wage distortion is not a valid ground for staging a
strike because Art. 124 of the Labor Code provides for a specific method or
procedure for correcting wage distortion. In Ilaw at Buklod ng Manggagawa
v. NLRC, (198 SCRA 586, 594-5 [1991]), the Court said.
[b]
What procedural remedies are open to workers who seek correction of

wage distortion? (2%)
SUGGESTED ANSWER:
The Procedural Remedies of Wage distortion disputes are provided in
Art. 242 of the Labor Code, as follows:
1.
Organized establishment follows the grievance procedures as

provided in CBA, ending in voluntary arbitration.
2.
Unorganized establishments employer and workers, with aid of

NCMB shall endeavor to correct the wage distortion, and if they
fail, to submit the issue to the NLRC for compulsory arbitration.
X
[a]
State briefly the compulsory coverage of the Government Service

Insurance Act . (2%)
SUGGESTED ANSWER:
The following are compulsorily covered by the GSIS pursuant to Sec. 3
of R.A. 8291.
1.
All employees receiving compensation who have not reached the

compulsory retirement age, irrespective of employment status.
2.
Members of the judiciary and constitutional commissions who

shall have life insurance only.
[b] Can a member of a cooperative be deemed an employee for purposes of

compulsory coverage under the Social Security Act? Explain. (2%)
SUGGESTED ANSWER:
Yes, an employee of a cooperative, not over sixty (60) years of age is,
under the SSS law, subject to compulsory coverage. The Section 8(d) SSS Law
define an employee as Sec. 8(d) - any person who performs services for
an employer in which either or both mental or
physical efforts are used and who receives
compensation for such services, where there is an
employer-employee relationship: Provided, That a
self-employed person shall be both employee and
employer at the same time.
PART II
XI
[a]
Seafarers who have worked for twenty (20) years on board the same
vessel are regular employees.
SUGGESTED ANSWER:
FALSE. Seafarers as overseas Filipino workers are fixed-term employees
whose continued rehiring should not be interpreted as a basis for
regularization but rather as a series of contract renewals sanctioned under
the doctrine set by Millares v. NLRC (Gu-Miro v. Adorable, 437 SCRA 162
[2004]).
[b]
Employment of children below fifteen (15) years of age in any public or

private establishment is absolutely prohibited.
SUGGESTED ANSWER:
False. Children below fifteen (15) years of age (can be employed) when
he/she works directly under the sole responsibility of his/her parents or
guardian, and his employment does not in any way interfere with his
schooling.
[c]
Government employees have the right to organize and join concerted

mass actions without incurring administrative liability.
SUGGESTED ANSWER:
False. Government employees have the right to organize, but they may
be held liable for engaging in concerted mass actions, it being a prohibited
activity under CSC Law (E.O. 181). The right of government employees to
organize is limited to the formation of unions or associations without
including the right to strike. (Gesite v. Court of Appeals, 444 SCRA 51
[2004]).
[d]
A waiver of the right to claim overtime pay is contrary to law.
SUGGESTED ANSWER:
True. As a general rule, overtime compensation cannot be waived,

whether expressly or impliedly; and stipulation to the contrary is against the
law. (Pampanga Sugar Dev. Co., Inc. v. CIR, 114 SCRA 725 [1982].) An
exception would be the adoption of a compressed work week on voluntary
basis, subject to the guidelines of Department Order No. 02, Series of 2004.
[e]
Agency fees cannot be collected from a non-union member in the

absence of a written authorization signed by the worker concerned.
SUGGESTED ANSWER:
False. Agency fee can be collected from a union member even without
his prior written authorization as long as he receives the benefits of a CBA,
and is a member of the appropriate bargaining unit. (Arts. 248 (e) & 241 (o),
Labor Code).
XII
In her State of the Nation Address, the President stressed the need to
provide an investor-friendly business environment so that the country can compete
in the global economy that now suffers from a crisis bordering on recession.
Responding to the call, Congress passed two innovative legislative measures,
namely: (1) a law abolishing the security of tenure clause in the Labor Code; and (2)
a law allowing contractualization in all areas needed in the employers business
operations. However, to soften the impact of these new measures, the law requires
that all employers shall obtain mandatory unemployment insurance coverage for all
their employees.
The constitutionality of the two (2) laws is challenged in court. As a judge,
how will you rule? (5%)
SUGGESTED ANSWER:
The first innovative measure, on abolition of the security of tenure
clause in the Labor Code, is unconstitutional as it goes against the
entitlement of workers to security of tenure under Section 3, Article XIII of
the 1987 Constitution.
The second innovative measure, on a law allowing contractualization in
all areas needed in the employers business operations, is legal. Article 106 of
the Labor Code already allows the Secretary of Labor and Employment not to
make appropriate distinction between labor-only and job contracting. This
means that the Secretary may decide, through implementing regulation, not
to prohibit labor-only contracting, which is an arrangement where the person
supplying workers to an employer does not have substantial capital or
investment in the form of tools, equipment, machineries, work premises,
among others, and the workers recruited and placed by such person are
performing activities which are directly related to the principal business of
the employer. Hence, it would be legal for Congress to do away with the
prohibition on labor-only contracting and allow contractualization in all areas
needed in the employers business operations. Assuming, of course, that
contractual workers are guaranteed their security of tenure.
XIII
Atty. Renan, a CPA-lawyer and Managing Partner of an accounting firm,
conducted the orientation seminar for newly-hired employees of the firm, among
them, Miss Maganda. After the seminar, Renan requested Maganda to stay,
purportedly to discuss some work assignment. Left alone in the training room,
Renan asked Maganda to go out with him for dinner and ballroom dancing.
Thereafter, he persuaded her to accompany him to the mountain highway in
Antipolo for sight-seeing. During all these, Renan told Maganda that most, if not all
of the lady supervisors in the firm are where they are now, in very productive and
lucrative posts, because of his favorable endorsement.
[a]
Did Renan commit acts of sexual harassment in a work-related or

employment environment? Reasons. (3%)
SUGGESTED ANSWER:
Atty. Renan is guilty of sexual harassment. This conclusion is
predicated upon the following consideration:
1.
Atty. Renan has authority, influence or moral ascendancy over

Miss Maganda;
2.
While the law calls for a demand, request or requirement of a

sexual favor, it is not necessary that the demand, request or
requirement of a sexual favor be articulated in a categorical oral
or written statement. It may be discerned, with equal certitude
from the acts of the offender. (Domingo v. Rayala, 546 SCRA 90
[2008]);
3.
The acts of Atty. Renan towards Miss Maganda resound with

defeaning clarity the unspoken request for a sexual favor,
regardless of whether it is accepted or not by Miss Maganda.
4.
In sexual harassment, it is not essential that the demand, request

or requirement be made as a condition for continued employment
or promotion to a higher position. It is enough that Atty. Renans
act result in creating an intimidating, hostile or offensive
environment for Miss Maganda.
[b]
The lady supervisors in the firm, slighted by Renans revelations

about them, succeeded in having him expelled from the firm. Renan
then filed with the Arbitration Branch of the NLRC an illegal dismissal
case with claims for damages against the firm. Will the case prosper?
Reasons. (2%)
SUGGESTED ANSWER:
Yes, serious misconduct is a ground for termination of employment.
The term misconduct denotes intentional wrongdoing or deliberate
violation of a rule of law or standard of behavior.
No. The case for illegal dismissal with damages filed in the Office of the
Labor Arbiter will not prosper. Renan was terminated for serious misconduct
which is a just cause under Art 282 of the Labor Code. The act of Renan is
grave and aggravated in character, and committed in connection with his
work (Echaverria v. Venutek Media, 516 SCRA 72 [2007]), and indicates that
he has become unfit to continue working for his employer. (Torreda v.
Toshiba Info. Equipment, Inc. Phils., 515 SCRA 133 [2007]).
XIV
Jolli-Mac Restaurant Company (Jolli-Mac) owns and operates the largest
food chain in the country. It engaged Matiyaga Manpower Services, Inc. (MMSI), a
job contractor registered with the Department of Labor and Employment, to provide
its restaurants the necessary personnel, consisting of cashiers, motorcycle delivery
boys, and food servers, in its operations. The Service Agreement warrants, among
others, that MMSI has a paid-up capital of P2,000,000.00; that it would train and
determine the qualification and fitness of all personnel to be assigned to Jolli-Mac;
that it would provide these personnel with proper Jolli-Mac uniforms; and that it is
exclusively responsible to these personnel for their respective salaries and all other
mandatory statutory benefits.
After the contract was signed, it was revealed, based on research conducted,
that MMSI had no other clients except Jolli-Mac, and one of its major owners was a
member of the Board of Directors of Jolli-Mac.
[a]
Was the Service Agreement between Jolli-Mac and MMSI legal and
valid? Why or why not? (3%)
SUGGESTED ANSWER:
No. It is not legal and valid because MMSI is engaged in labor-only
contracting. For one, the workers supplied by MMSI to Jolli-Mac are
performing services which are directly related to the principal business of
Jolli-Mac. This is so because the duties performed by the workers are integral
steps in or aspects of the essential operations of the principal. (Baguio, et. al.
v. NLRC, et. al., 202 SCRA 465 [1991]; Kimberly Independent Labor Union,
etc. v. Drillon, 185 SCRA 190 [1990]). For another, MMSI was organized by
Jolli-Mac itself to supply its personnel requirements. [San Miguel Corporation
v. MAERC Integrated Services, Inc., et. al., 405 SCRA 579 [2003]).
The Service Agreement is valid. The law, Art. 106, does not invalidate
an Independent Contractors Agreement because the Independent Contractor
has only one (1) client, or that the employer of the independent contractor is
one of the major owners of the employing establishment. MMSI, is an
independent business, adequately capitalized and assumed all the
responsibilities of a legitimate Independent Contractor.
[b]
If the cashiers, delivery boys and food servers are not paid their lawful
salaries, including overtime pay, holiday pay, 13th month pay, and
service incentive leave pay, against whom may these workers file their
claims? Explain. (2%)
SUGGESTED ANSWER:
They may file their claims against Jolli-Mac. A finding that MMSI is a
labor-only contractor is equivalent to declaring there is an employeremployee relationship between Jolli-Mac and the workers of MMSI.
(Associated Anglo-American Tobacco Corp. v. Clave, 189 SCRA 127 [1990],
Industrial Timber Corp. v. NLRC, 169 SCRA 341 [1989]). The liability of JolliMac vis--vis the workers of MMSI is for a comprehensive purpose, i.e., not
only for the unpaid wages but for all claims under Labor Code and ancillary
laws. (San Miguel Corp. v. MAERC Integrated Services, Inc., et al., 405 SCRA
579 [2003]).
The employers can file their claims against Jolli-Mac pursuant to Art.
106 of the Labor Code which reads: Contractor or subcontractor xxx In the
event that the contractor or subcontractor fails to pay the wages of his
employees in accordance with this Code, the employer shall be jointly and
severally liable with his contractor or subcontractor to such employees to the
extent of the work performed under the contract, in the same manner and
extent, that he is liable to employee directly employed by him.
XV
Among the 400 regular rank-and-file workers of MNO Company, a
certification election was ordered conducted by the Med-Arbiter of the Region. The
contending parties obtained the following votes:
1.
2.
3.
4.
5.
6.
Union A
Union B
Union C
Union D
No union
Spoiled votes
70
71
42
33
180
4
There were no objections or challenges raised by any party on the results of

the election.
[a]
Can Union B be certified as the sole and exclusive collective

bargaining agent among the rank-and-file workers of MNO Company
considering that it garnered the highest number of votes among the
contending unions? Why or why not? (3%)
SUGGESTED ANSWER:
No. To be certified as bargaining agent, the vote required is majority of
the valid votes cast. There were 369 valid votes cast, the majority of which is
199. Since Union B got only 71 votes, it cannot be certified as the sole and
exclusive bargaining agent of MNOs rank-and-file workers.
[b]
May the management or lawyer of MNO Company legally ask for the
absolute termination of the certification election proceedings because
180 of the workers a clear plurality of the voters have chosen not
be represented by any union? Reasons. (3%)
SUGGESTED ANSWER:
No, because 216 workers want to be represented by a union as
bargaining agent. Only 180 workers opted for No Union. Hence, a clear
majority is in favor of being represented by a union.
[c]
If you were the duly designated election officer in this case, what
would you do to effectively achieve the purpose of certification election
proceedings? Discuss. (3%)
SUGGESTED ANSWER:
I will conduct a run-off election between the labor unions receiving the
two highest number votes. To have a run-off election, all the contending
unions (3 or more choices required) must have garnered 50% of the number of
votes cast. In the present case, there are four (4) contending unions and they
garnered 216 votes. There were 400 votes cast. The votes garnered by the
contending unions is even more than 50% of the number of votes cast. Hence,
a run-off election is in order.
XVI
The Company and Triple-X Union, the certified bargaining agent of rankand-file employees, entered into a Collective Bargaining Agreement (CBA) effective
for the period January 1, 2002 to December 31, 2007.
For the 4th and 5th years of the CBA, the significant improvements in wages
and other benefits obtained by the Union were:
1.
Salary increases of P1,000 and P1,200 monthly, effective January 1,

2006 and January 1, 2007;
2.
Vacation Leave and Sick Leave were adjusted from 12 days to 15 days
annually for each employee;
3.
Medical subsidy of P3,000 per year for the purchase of medicines and
hospitalization assistance of P10,000 per year for actual hospital
confinement;
4.
Rice subsidy of P600 per month, provided the employee has worked
for at least 20 days within the particular month; and
5.
Birthday leave with Pay and Birthday Gift of P1,500.
As early as October 2007, the Company and the Union started negotiations
to renew the CBA. Despite mutual good faith and earnest efforts, they could not
agree. However, no union filed a petition for certification election during the
freedom period. On March 30, 2008, no CBA had been concluded. Management
learned that the Union would declare a bargaining deadlock on the next scheduled
bargaining meeting.
As expected, on April 3, 2008, the Union declared a deadlock. In the
afternoon of the same day, management issued a formal announcement in writing,
posted on the bulletin board, that due to the CBA expiration on December 31,
2007, all fringe benefits contained therein are considered withdrawn and can no
longer be implemented, effective immediately.
[a]
When was the freedom period referred to in the foregoing narration

of facts? Explain. (2%)
SUGGESTED ANSWER:
The freedom period or the time within which a petition for certification
election to challenge the incumbent collective bargaining agent may be filed
is from 60 days before the expiry date of the CBA.
[b]
After April 3, 2008, will a petition for certification election filed by

another legitimate labor union representing the rank-and-file
employees legally prosper? Reasons. (3%)
SUGGESTED ANSWER:
Yes, because the deadlock declared by the Union had not been
submitted for conciliation or arbitration or had become the subject of a valid
notice of strike or lockout. Any of these measures is required to institute the
so-called deadlock bar rule.
The petition for Certification Election filed on April 3, 2008 by another

union will not prosper. Art. 253 of the Labor Code reads: It shall be the duty
of both parties to keep the status quo and to continue in full force and effect
the terms and conditions of the existing agreementuntil a new agreement is
reached by the parties. Furthermore, the petition was filed outside of the
freedom period. (Arts. 256 & 253-A, Labor Code).
[c]
Is managements withdrawal of the fringe benefits valid? Reasons.

(2%)
SUGGESTED ANSWER:
No. Pending renewal of the CBA, the parties are bound to keep the
status quo and treat the terms and conditions embodied therein still in full
force and effect, until a new agreement is reached by the union and
management. This is part and parcel of the duty to bargain collectively in
good faith under Article 253, the Labor Code.
[d]
If you were the lawyer for the union, what legal recourse or action
would you advise? Reasons. (3%)
SUGGESTED ANSWER:
I would recommend the filing of an unfair labor practice case against
the employer for violating the duty to bargain collectively under Article
248(g) of the Labor Code. This arbitration case also institutes the deadlock
bar that shall prevent any other union from filing a petition for certification
election.
I will advice the Union to continue negotiations with the aid of the
NCMB (Art. 250, Labor Code), and to file a complaint for unfair labor practice,
i.e., violation of an economic provision, gross and serious in character under
Articles 248(i) and Art. 261 of the Labor Code.
XVII
Alfredo was dismissed by management for serious misconduct. He filed suit
for illegal dismissal, alleging that although there may be cause, he was not afforded
due process by management prior to his termination. He demands reinstatement
with full backwages.
[a]
What are the twin requirements of due process which the employer
must observe in terminating or dismissing an employee? Explain. (3%)
SUGGESTED ANSWER:
The twin requirements of due process are notice and hearing to be
given to the worker. There is likewise a two-notice requirement rule, with the
first notice pertaining to specific causes or grounds for termination and a
directive to submit a written explanation within a reasonable period. The
second notice pertains to notice of termination. Pursuant to Perez v.
Philippine Telegraph and Telephone Company (G.R. 152048, 7 April 2009),
the Court held that a hearing or conference is not mandatory as long as the
employee is given ample opportunity to be heard, i.e. any meaningful
opportunity (verbal or written) to answer the charges against him or her and
submit evidence in support of the defense, whether in a hearing, conference,
or some other fair, just and equitable way.
[b]
Is Alfredo entitled to reinstatement and full backwages? Why or why

not?
SUGGESTED ANSWER:
It depends. If the dismissal was without just cause and without due
process, the dismissal of the employee is patently illegal. If the dismissal was
for a just cause but without due process, the dismissal is valid and the
employer is only liable to pay Indemnity in the form of nominal damages
(Agabon v. NLRC, 44 SCRA 573 [2004]).
XVIII
[a]
Cite four (4) instances when an illegally dismissed employee may be

awarded separation pay in lieu of reinstatement. (4%)
SUGGESTED ANSWER:
These four instances are: (i) in case the establishment where the
employee is to be reinstated has closed or ceased operations; (ii) where the
company has been declared insolvent; (iii) former position no longer exist at
the time of reinstatement for reason not attributable to the fault of the
employer; (iv) where the employee decides not to be reinstated as when he
does not pray for his reinstatement in his complaint or position paper.
[b]
Explain the impact of the union security clause to the employees

right to security of tenure. (2%)
SUGGESTED ANSWER:
A valid union security clause when enforced or implemented for cause

after according the worker his substantive and procedural due process rights
(Alabang Country Club, Inc. v. NLRC, 545 SCRA 357 [2008]); does not violate
the employees right to security of tenure. Art. 248(e) of the Labor Code
allows union security clauses and a failure to comply with the same is a valid
ground to terminate employment. Union security clauses are designed to
strengthen unions and valid law policy.
CIVIL LAW
PART I
I
[a]
The doctrine of "processual presumption" allows the court of the

forum to presume that the foreign law applicable to the case is the
same as the local or domestic law.
SUGGESTED ANSWER:
TRUE. If the foreign law necessary to resolve an issue is not proven as a
fact, the court of the forum may presume that the foreign law is the same as
the law of the forum.
[b]
In reserva troncal, all reservatarios (reservees) inherit as a class and in

equal shares regardless of their proximity in degree to the prepositus.
SUGGESTED ANSWER:
FALSE. Not all of the relatives within the third degree will inherit as
reservatario, and not all of those who are entitled to inherit will inherit in
equal shares. The applicable laws of intestate succession will determine who
among the relatives will inherit as a reservatarios and what shares they will
take, i.e., the direct line excludes the collateral, the descending direct line
excludes the ascending, the nearer excludes the more remote, the nephews
and nieces exclude the uncles and the aunts, and half blood relatives inherit
half the share of full blood relatives.
[c]
An oral partnership is valid.
SUGGESTED ANSWER:
TRUE. Partnership is a consensual contract, hence, it is valid even
though not in writing.
TRUE. An oral contract of partnership is valid even though not in
writing. However, if it involves contribution of an immovable property or a
real right, an oral contract of partnership is void. In such a case, the contract
of partnership to be valid, must be in a public instrument (Art. 1771 NCC) and
the inventory of said property signed by the parties must be attached to said
public instrument (Art. 1773 NCC).
TRUE. Partnership is a consensual contract, hence, it is valid even

though not in writing. The oral contract of partnership is also valid even if an
immovable property or real right is contributed thereto. While the law, in
such a case, requires the partnership to be in a public document, the law does
not expressly declare the contract void if not executed in the require form.
(Article 1409[7], NCC). And there being nothing in the law from which it can
be inferred that the said requirement is prohibitory or mandatory (Article 5,
NCC), the said oral contract of partnership must also be valid. The interested
party may simply require the contract to be made into a public document in
order to comply with the required form. (Article 1357, NCC). The purpose of
the law in requiring a public document is simply to notify the public about
the contribution.
[d]
An oral promise of guaranty is valid and binding.
SUGGESTED ANSWER:
FALSE. An oral contract of guaranty, being a special promise to answer
for the debt of another, is unenforceable unless in writing (Article 1403 [2] b,
NCC).
TRUE. An oral promise of guaranty is valid and binding. While the
contract is valid, however, it is unenforceable because it is not in writing.
Being a special promise to answer for the debt, default, or miscarriage of
another, the Statute of Frauds requires it to be in writing to be enforceable
(Article 1403 [2]b, NCC). The validity of a contract should be distinguished
from its enforceability.
[e]
A dead child can be legitimated.
SUGGESTED ANSWER:
TRUE. To be legitimated, the law does not require a child to be alive at the
time of the marriage of his/her parents (Article 177, FC). Furthermore, Art.
181 of the Family Code which states that [Th]e legitimation of children who
died before the celebration of marriage will benefit their descendants, does
not preclude instances where such legitimation will benefit no one but the
childs ascendants, or other relatives.
II
Dr. Lopez a 70-year old widower and his son Roberto both died in a fire that
gutted their home while they were sleeping in their air-conditioned rooms.
Robertos wife Marilyn and their two children were spared because they were in the
province at the time. Dr. Lopez left an estate worth P20M and a life insurance
policy in the amount of P1M with his three children one of whom is Roberto as
beneficiaries.
Marilyn is now claiming for herself and her children her husbands share in
the estate left by Dr. Lopez, and her husbands share in the proceeds of Dr. Lopezs
life insurance policy. Rule on the validity of Marilyns claims with reasons.
SUGGESTED ANSWER:
As to the Estate of Dr. Lopez:
Marilyn is not entitled to a share in the estate of Dr. Lopez. For
purposes of succession, Dr. Lopez and his son Roberto are presumed to have
died at the same time, there being no evidence to prove otherwise, and there
shall be no transmission of rights from one to the other (Article 43, NCC).
Hence, Roberto inherited nothing from his father that Marilyn would in turn
inherit from Roberto. The children of Roberto, however, will succeed their
grandfather, Dr. Lpez, in representation of their father Roberto and together
will receive 1/3 of the estate of Dr. Lopez since their father Roberto was one
of the three children of Dr. Lopez. Marilyn cannot represent her husband
Roberto because the right is not given by law to a surviving spouse.
As to the proceeds of the insurance on life of Dr. Lopez:
Since succession is not involved as regards the insurance contract, the
provisions of the Rules of Court (Rule 131, Sec 3, [jj] [5]) on survivorship shall
apply. Under the Rules, Dr. Lopez, who was 70 years old, is presumed to have
died ahead of Roberto who is presumably between the ages of 15 and 60.
Having survived the insured, Robertos right as beneficiary became vested
upon the death of Dr. Lopez. When Roberto died after Dr. Lopez, his right to
receive the insurance proceeds became part of his hereditary estate, which in
turn was inherited in equal shares by his legal heirs, namely his spouse and
children. Therefore, Robertos children and his spouse are entitled to
Robertos one-third share in the insurance proceeds.
III
In December 2000, Michael and Anna, after obtaining a valid marriage license,
went to the Office of the Mayor of Urbano, Bulacan to get married. The Mayor was
not there, but the Mayors secretary asked Michael and Anna and their witnesses to
fill up and sign the required marriage contract forms. The secretary told them to
wait and went to look for the Mayor who was attending a wedding in a neighboring
municipality.
When the secretary caught up with the Mayor at the wedding reception, she
showed him the marriage contract forms and told him that the couple and their
witnesses were waiting in the office. The Mayor forthwith signed all the copies of
the marriage contract, gave them to the secretary, who returned to the Mayors
office. She then gave copies of the marriage contract to the parties and told the
couple that they were already married. Thereafter the couple lived together as
husband and wife and had three sons.
[a]
Is the marriage valid, voidable, or void?
SUGGESTED ANSWER:
The marriage is void because the formal requisite of marriage ceremony
was absent (Art. 3, FC 209, Family Code).
ALTERNATIVE ANSWER:
The marriage is void because an essential requisite: consent of the
parties freely given in the presence of the solemnizing officer (Art. 2, FC).
[b]
What is the status of the three children of Michael and Anna? Explain
your answer.
SUGGESTED ANSWER:
The children are illegitimate having been born outside a valid marriage.
[c]
What property regime governs the properties acquired by the couple?

Explain.
SUGGESTED ANSWER:
The marriage being void, the property relationship that governed their
union is special co-ownership under Article 147 of the Family. This is on the
assumption that there was no impediment for them to validly marry each
other.
IV
Harry married Wilma, a very wealthy woman. Barely five (5) years into the
marriage, Wilma fell in love with Joseph. Thus, Wilma went to a small country in
Europe, become a naturalized citizen of that country, divorced Harry, and married
Joseph. A year therafter, Wilma and Joseph returned and established permanent
residence in the Philippines.
[a]
Is the divorce obtained by Wilma from Harry recognized in the

Philippines? Explain your answer. (3%)
SUGGESTED ANSWER:
As to Wilma, the divorce obtained by her is recognized as valid in the
Philippines because she is now a foreigner. Philippine personal laws do not
apply to a foreigner. However, recognition of the divorce as regards Harry will

depend on the applicability to his case of the second paragraph of Article 26
of the Family Code. If it is applicable, divorce is recognized as to him and
therefore he can remarry. However, if it is not applicable, divorce is not
recognised as to him and, consequently, he cannot remarry.
Yes, the divorce obtained by Wilma is recognized as valid in the
Philippines. At the time she got the divorce, she was already a foreign
national having been naturalized as a citizen of that small country in
Europe. Based on the precedents established by the Supreme Court (Bayot v.
Court of Appeals, 570 SCRA 472 [2008]), divorce obtained by a foreigner is
recognized in the Philippines if validly obtained in accordance with his or her
national law.
[b]
If Harry hires you as his lawyer, what legal course would you advise
him to take? Why? (2%)
SUGGESTED ANSWER:
I would advise Harry to:
1.
dissolve and liquidate his property relations with Wilma
2.
if he will remarry, file a petition for the recognition of the the

foreign judgment of divorce (Rule 39, Rules of Court)
[c]
Harry tells you that he has fallen in love with another woman,
Elizabeth, and wants to marry her, because, after all, Wilma is
already married to Joseph. Can Harry legally marry Elizabeth?
Explain. (2%)
SUGGESTED ANSWER:
Yes, he can validly marry Elizabeth, applying the doctrine laid down by
the Supreme Court in... [not seen in the file]
Under the second paragraph of Art 26 of the Family Code, for the
Filipino Spose to have capacity to remarry, the law expressly requires the
spouse who obtained the divorce to be a foreigner at the time of the marriage
Applying this requirement to the case of Harry, it would seem that he is not
given the capacity to remarry. This is because Wilma was a Filipino at the
time of her marriage to Harry.
In Republic v. Orbecido, however, the Supreme Court ruled that a
Filipino spouse is given the capacity to remarry even though the spouse who
obtained the divorce was a Filipino at the time of the marriage, if the latter
was already a foreigner when the divorce was obtained abroad. According to
the Court, to rule otherwise will violate the equal protection clause of the
Constitution.
V
Four children, namely: Alberto, Baldomero, Caridad, and Dioscoro, were
born to the spouses Conrado and Clariza de la Costa. The childrens birth
certificates were duly signed by Conrado, showing them to be the couples
legitimate children.
Later, one Edilberto de la Cruz executed a notarial document acknowledging
Alberto and Baldomero as his illegitimate children with Clarita. Edilberto died
leaving substantial properties. In the settlement of his estate Alberto and
Baldomero intervened claiming shares as the deceased illegitimate children. The
legitimate family of Edilberto opposed the claim.
Are Alberto and Baldomero entitled to share in the estate of Edilberto?
Explain (4%)
SUGGESTED ANSWER:
No, Alberto and Baldomero are not entitled to share in Edilberto;s
estate. They are not related at all to Edilberto. They were born during the
marriage of Conrado and Clarita, hence, are considered legitimate children of
the said spouses. The status is conferred on them at birth by law.
Under Philippine law, a person cannot have more than one natural
filiation. The legitimate filiation of a person can be changed only if the
legitimate father will successfully impugn such status.
In the problem, therefore, the filiation of Alberto and Baldomero as the
legitimate children of Conrado cannot be changed by their recognition by
Edilberto as his illegitimate children. Before they can be conferred the status
of Edilbertos illegitimate children, Conrado must first impugn their
legitimacy. Since Conrado has not initiated any action to impugn their
legitimacy, they continue to be the legitimate children of Conrado. They
cannot be the illegitimate of Edilberto at the same time. Not being the
illegitimate children of Edilberto, they have no right to inherit from him.
VI
On December 1, 2000, Dr. Juanito Fuentes executed a holographic will, wherein he
gave nothing to his recognized illegitimate son, Jay. Dr. Fuentes left for the United
States, passed the New York medical licensure examinations, resided therein, and
became a naturalized American citizen. He died in New York in 2007. The laws of
New York do not recognize holographic wills or compulsory heirs.
[a]
Can the holographic will of Dr. Fuentes be admitted to probate in the

Philippines? Why or why not.
SUGGESTED ANSWER:
Yes, the holographic will of Dr. Fuentes may be admitted to probate in
the Philippines because there is no public policy violated by such probate.
The only issue at probate is the due execution of the will which includes the
formal validity of the will. As regards formal validity, the only issue the court
will resolve at probate is whether or not the will was executed in accordance
with the form prescribed by the law observed by the testator in the
Philippines, an alien testator may observe the law of the place where the will
was executed (Art. 17, NCC), or the formalities of the law of the place where
he resides, or according to the formalities of the law of his own country or in
accordance with the Philippine Civil Code (Art. 816, NCC). Since Dr. Fuentes
executed his will in accordance with Philippine law, the Philippine court shall
apply the New Civil Code in determining the formal validity of the
holographic will. The subsequent change in the citizenship of Dr. Fuentes did
not affect the law governing the validity of his will. Under the New Civil Code,
which was the law used by Dr. Fuentes, the law in force at the time of
execution of the will shall govern the formal validity of the will (Art. 795,
NCC)
[b]
Assuming that the will is probated in the Philippines, can Jay validly
insist that he be given his legitime. Why or why not? (3%)
SUGGESTED ANSWER:
No, Jay cannot insist because under New York law he is not compulsory
heir entitled to a legitime.
The national law of the testator determines who his heirs are, the order
that they succeed how much their successional rights are, and whether or not
a testamentary disposition in his will is valid (Art. 16, NCC). Since, Dr.
Fuentes was a US citizen, the laws of New York determines who his heirs are.
And since New York law does not recognize the concept of compulsory heirs,
Jay is not a compulsory heir of Dr. Fuentes entitled to a legitime.
VII
Ramon Mayaman died intestate, leaving a net estate of P10,000,000.00.
Determine how much each heir will receive from the estate:
[a]
If Ramon is survived by his wife, three full-blood brothers, two halfbrothers, and one nephew (the son of a deceased full-blood brother)?
Explain. (3%)
SUGGESTED ANSWER:
Having died intestate, the estate of Ramon shall be inherited by his
wife and his full and half blood siblings or their respective representatives. In
intestacy, if the wife concurs with no one but the siblings of the husband, all
of them are the intestate heirs of the deceased husband. The wife will receive
half of the intestate estate, while the siblings or their respective
representatives, will inherit the other half to be divided among them equally.
If some siblings are of the full-blood and the others of the half-blood, a halfblood sibling will receive half the share of a full-blood sibling.
1.
2.
3.
4.
[b]
The wife of Ramon will, therefore, receive one half of the estate
or the amount of P5,000,000.00,
The three (3) full-blood brothers, will, therefore, receive
P1,000,000.00 each.
The
nephew
will receive
P1,000,000.00
by
right of
representation.
The two (2) half-brothers will receive P500,000.00 each.
If Ramon is survived by his wife, a half-sister, and three nephews

(sons of a deceased full-blood brother)? Explain. (3%)
SUGGESTED ANSWER:
The wife will receive one half of the estate or P5,000,000.00. The other
half shall be inherited by (1) the full-blood brother, represented by his 3
children, and (2) the half-sister. The will divide that other half between them
such that the share of the half-sister is just half the share of the full-blood
brother. The share of the full-blood brother shall in turn be inherited by the
three (3) nephews in equal shares by right of representation.
Therefore, the three (3) nephews will receive P1,111,111.10 each and
the half-sister will receive the sum of P1,666,666.60.
VIII
Jude owned a building which he had leased to several tenants. Without
informing his tenants, Jude sold the building to Ildefenso. Thereafter, the latter
notified all the tenants that he is the new owner of the building. Ildefenso ordered
the tenants to vacate the premises within 30 days from notice because he had
other plans for the building. The tenants refused to vacate, insisting that they will
only do so when the term of their lease shall have expired. Is Ildefenso bound to
respect the lease contracts between Jude and his tenants? Explain your answer.
(2%)
SUGGESTED ANSWER:
Yes, Ildefenso must respect the lease contracts between Jude and his
tenants. While it is true that the said lease contracts were not registered and
annotated on the title to the property, Ildefenso is still not an innocent
purchaser for value. He ought to know the existence of the lease because the
building was already occupied by the tenants at the time he bought it.
Applying the principle of caveat emptor, he should have checked and known
the status of the occupants of their right to occupy the building before buying
it.
IX
Before migrating to Canada in 1992, the spouses Teodoro and Anita
entrusted all their legal papers and documents to their nephew, Atty. Tan. Taking
advantage of the situation, Atty. Tan forged a deed of sale, making it appear that he
had bought the couples property in Quezon City. In 2000, he succeeded in
obtaining a TCT over the property in his name. Subsequently, Atty. Tan sold the
same property to Luis, who built an auto repair shop on the property. In 2004, Luis
registered the deed of conveyance, and title over the property was transferred in his
name.
In 2006, the spouses Teodoro and Anita came to the Philippines for a visit
and discovered what had happened to their property. They immediately hire you as
a lawyer. What action or actions will you institute in order to vindicate their rights?
Explain fully. (2%)
SUGGESTED ANSWER:
I will institute the following actions against Atty. Tan:
1.
2.
3.
4.
A civil action for damages for the fraudulent transfer of the title
in his name and to recover the value of the property
An action against the National Treasurer for compensation from
the State Assurance Fund which is set aside by law to pay those
who lose their land or suffer damages as a consequence of the
operation of the Torrens system;
A criminal action for forgery or falsification of public document;
A complaint with the Supreme Court/IBP to disbar or suspend
him or other disciplinary action for violation or the Code of
Professional Ethics.
Any action against Luis will not prosper because he is an innocent

purchaser for value. The Title to the land he bought was already in the name
of the person who sold the property to him and there is nothing on the title
which will make him suspect about the fraud committed by Atty. Tan.
X
Rommels private car, while being driven by the regular family driver,
Amado, hits a pedestrian causing the latters death. Rommel is not in the car when
the incident happened.
[a]
Is Rommel liable for damages to the heirs of the deceased? Explain

(2%)
SUGGESTED ANSWER:
Yes, Rommel may be held liable for damages if he fails to prove that he
exercised the diligence of a good father of a family (Art. 2180, par. 5, NCC) in
selecting and supervising his family driver. The owner is presumed liable
unless he proves the defense of diligence. If the driver was performing his
assigned task when the incident happened, Rommel shall be solidarily liable
with the driver.
[b]
Would your answer be the same if Rommel was in the car at the time
of the accident? Explain (2%)
SUGGESTED ANSWER:
Yes, my answer would be the same. Rommel, who was in the car, shall
be liable for damages if he could have prevented the misfortune by the use of
due diligence in supervising his driver but failed to exercise it (Art. 2184,
NCC). In such a case, his liability is solidary with his driver.
ALTERNATIVE ANSWER:
Yes, my answer will be the same except that in such a case the liability
of the owner is not presumed. When the owner is inside the vehicle, he
becomes liable only when it is shown that he could have prevented the
misfortune by use of due diligence (Article 2184, NCC). For the owner to be
held liable, the burden of proving that he could have prevented the
misfortune rests on the shoulder of the victim.
XI
statement is false. Explain your answer in not more than two sentences.
[a]
A clause in an arbitration contract granting one of the parties the

power to choose more arbitrators than the other renders the
arbitration contract void.
SUGGESTED ANSWER:
True. The Civil Code provides that Any clause giving one of the parties
power to choose more arbitrators than the other is void and no effect. (Art.
2045, NCC)
[b]
If there is no marriage settlement, the salary of a spouse in an

adulterous marriage belongs to the conjugal partnership of gains.
SUGGESTED ANSWER:
False. In an adulterous relationship, the salary of a married partner

belongs to the absolute community, or conjugal partnership, of such married
partner with his or her lawful spouse. Under Article 148 of the Family Code,
the property relations between married partner and his/her paramour is
governed by ordinary co-ownership where the partners become co-owners only
when they contributed to the acquisition of the property. The paramour is
deemed to have not contributed in the earning of the salary of the married
partner.
[c]
Acquisitive prescription of a negative easement runs from the time the

owner of the dominant estate forbids, in a notarized document, the
owner of the servient estate from executing an act which would be
lawful without easement.
SUGGESTED ANSWER:
True. In negative easements, acquisitive prescription runs from the
moment the owner of the dominant estate forbade, by an instrument
acknowledged before a notary public, the owner of the servient estate from
executing an act which would be lawful without the easement. (Art. 621, NCC)
[d]
The renunciation by a co-owner of his undivided share in the coowned property in lieu of the performance of his obligation to
contribute to taxes and expenses for the preservation of the property
constitutes dacion en pago.
SUGGESTED ANSWER:
True. Under the Civil Code, a co-owner may renounce his share in the
co-owned property in lieu of paying for his share in the taxes and expenses for
the preservation of the co-owned property. In effect, there is dacion en pago
because the co-owner is discharging his monetary obligation by paying it with
his non-monetary interest in the co-owned property. The fact that he is giving
up his entire interest simply means that he is accepting the value of his
interest as equivalent to his share in the taxes and expenses of preservation.
[e]
A person can dispose of his corpse through an act inter vivos.
SUGGESTED ANSWER:
False. A person cannot dispose of his corpse through an act inter vivos,
i.e., an act to take effect during his lifetime. Before his death, there is no
corpse to dispose. But he is allowed to do so through an act mortis causa, i.e.
an act to take effect upon his death.
XII
Emmanuel and Margarita, American citizens and employees of the US State
Department, got married in the African state of Kenya where sterility is a ground
for annulment of marriage. Thereafter, the spouses were assigned to the US
Embassy in Manila. On the first year of the spouses tour of duty in the Philippines,
Margarita filed an annulment case against Emmanuel before a Philippine court on
the ground of her husbands sterility at the time of the celebration of the marriage.
[a]
Will the suit prosper? Explain your answer.
SUGGESTED ANSWER:
No, the suit will not prosper. As applied to foreign nationals with
respect to family relations and status of persons, the nationality principle set
forth in Article 15 of the Civil Code will govern the relations of Emmanuel
and Margarita. Since they are American citizens, the governing law as to the
ground for annulment is not Kenyan law which Margarita invokes in support
of sterility as such ground; but should be US law, which is the national law of
both Emmanuel and Margarita as recognized under Philippine law. Hence, the
Philippine court will not give due course to the case based on Kenyan law.
The nationality principle as expressed in the application of national law of
foreign nationals by Philippine courts is established by precedents (Pilapil v.
Ibay-Somera, 174 SCRA 653 [1989], Garcia v. Recio, 366 SCRA 437 [2001],
Llorente v. Court of Appeals 345 SCRA 92 [2000], and Bayot v. Court of
Appeals 570 SCRA 472 [2008]).
The forum has jurisdiction over an action for the annulment of
marriage solemnized elsewhere but only when the party bringing the action is
domiciled in the forum. In this case, neither party is domiciled in the
Philippines. They are here as officials of the US Embassy whose stay in the
country is merely temporary, lasting only during their fixed tour of duty.
Hence, the Philippine courts have no jurisdiction over the action.
XIII
XIV
Rodolfo, married to Sharon, had an illicit affair with his secretary, Nanette, a
19-year old girl, and begot a baby girl, Rona. Nanette sued Rodolfo for damages:
actual, for hospital and other medical expenses in delivering the child by caesarean
section; moral, claiming that Rodolfo promised to marry her, representing that he
was singled when, in fact, he was not; and exemplary, to teach a lesson to likeminded Lotharios.
[a]
If you were the judge, would you award all the claims of Nanette?
Explain. (3%)
SUGGESTED ANSWER:
If Rodolfo's marriage could not have been possibly known to Nanette or
there is no gross negligence on the part of Nanette, Rodolfo could be held
liable for moral damages.
If there is gross negligence in a suit for quasi-delict, exemplary
damages could be awarded.
[b]
Suppose Rodolfo later on acknowledges Rona and gives her regular

support, can he compel her to use his surname? Why or why not?
(2%)
SUGGESTED ANSWER:
No, he has no right to compel Rona to use his surname. The law does
not give him that right simply because he gave her support (RA 9255).
Under the Family Code, an illegitimate child was required to use only
the surname of the mother. Under RA 9255, otherwise known as the Revilla
law, however, the illegitimate child is given the option to use the surname of
the illegitimate father when the latter has recognized the former in
accordance with law. Since the choice belongs to the illegitimate child,
Rodolfo cannot compel Roan, if already of age, to use his surname against her
will. If Rona is still a minor, to use the surname of Rodolfo will require the
consent of Rona's mother who has sole parental authority over her.
[c]
When Roan reaches seven (7) years old, she tells Rodolfo that she
prefers to live with him, because he is better off financially than
Nanette. If Rodolfo files an action for the custody of Rona, alleging
that he is Rona's choice as custodial parent, will the court grant
Rodolfo's petition? Why or why not? (2%)
SUGGESTED ANSWER:
No, because Rodolfo has no parental authority over Rona. He who has
the parental authority has the right to custody. Under the Family Code, the
mother alone has parental authority over the illegitimate child. This is true
even if the illegitimate father has recognized the child and even though he is
giving support for the child. To acquire custody over Rona, Rodolfo should
first deprive Nanette of parental authority if there is a ground under the law,
and in a proper court proceeding. In the same action, the court may ward
custody of Rona to Rodolfo if is for her best interest.
XV
Sarah had a deposit in a savings account with Filipino Universal Bank in the
amount of five million pesos (P5,000,000.00). To buy a new car, she obtained a
loan from the same bank in the amount of P1,200,000.00, payable in twelve
monthly installments. Sarah issued in favor of the bank post-dated checks, each in
the amount of P100,000.00, to cover the twelve monthly installment payments. On
the third, fourth and fifth months, the corresponding checks bounced.
The bank then declared the whole obligation due and proceeded to deduct
the amount of one million pesos (P1,000,000.00) from Sarah's deposit after notice
to her that this is a form of compensation allowed by law. Is the bank correct?
Explain. (4%)
SUGGESTED ANSWER:
No, the bank is not correct. While the Bank is correct about the
applicability of compensation, it was not correct as to the amount
compensated.
A bank deposit is a contract of loan, where the depositor is the creditor
and the bank the debtor. Since Sarah is also the debtor of the bank with
respect to the loan, both are mutually principal debtors and creditors of each
other. Both obligations are due, demandable and liquidated but only up to the
extent of P300,000 (covering the unpaid third, fourth and fifth monthly
installments). The entire one million was not yet due because the loan has no
acceleration clause in case of default. And since there is no retention or
controversy commenced by third person and communicated in due time to
the debtor, then all the requisite of legal compensation are present but only
up to the amount of P300,000. The bank, therefore, may deduct P300,000
pesos from Sarah's bank deposit by way of compensation.
XVI
Marciano is the owner of a parcel of land through which a river runs out into the
sea. The land had been brought under the Torrens System, and is cultivated by
Ulpiano and his family as farm workers therein. Over the years, the river has
brought silt and sediment from its sources up in the mountains and forests so that
gradually the land owned by Marciano increased in area by three hectares. Ulpiano
built three huts on this additional are, where he and his two married children live.
On this same area, Ulpiano and his family planted peanuts, monggo beans and
vegetables. Ulpiano also regularly paid taxes on the land, as shown by the tax
declarations, for over thirty years.
When Marciano learned of the increase in the size of the land, he ordered
Ulpiano to demolish the huts, and demanded that he be paid his share in the
proceeds of the harvest. Marciano claims that under the Civil Code, the alluvium
belongs to him as registered riparian owner to whose land the accretion attaches
and that his right is enforceable against the whole world.
[a]
Is Marciano correct? Explain. (3%)
SUGGESTED ANSWER:
Marcianos contention is correct. Since the accretion was deposited on
his land by the action of the waters of the river and he did not construct any
structure to increase the deposition of soil and silt, Marciano automatically
owns the accretion. His real right of ownership is enforceable against the
whole world including Ulpiano and his two married children. Although
Marcianos land is registered, the 3 heactares land deposited through
accretion was not automatically registered. As unregistered land, it is subject
to acquisitive prescription by third persons.
Although Upliano and his children live in the 3 hectare unregistered
land owned by Marciano, they are farm workers; therefore they are possessors
not in the concept of owners but in the concept of mere holders. Even if they
possessed the land for more than 30 years, they cannot become the owners
thereof through extraordinary acquisitive prescription, because the law
requires possession in the concept of owner. Payment of taxes and tax
declarations are not enough to make their possession one in the concept of
owner. They must repudiate the possession in the concept of holder by
executing unequivocal acts of repudiation amounting to ouster of Marciano,
known to Marciano and must be proven by clear and convincing evidence.
Only then would his possession become adverse.
[b]
What rights, if any, does Ulpiano have against Marciano? Explain.

(3%)
SUGGESTED ANSWER:
Although Ulpiano is a possessor in bad faith, because he knew he does
not own the land, he will lose the three huts he built in bad faith and make an
accounting of the fruits he has gathered, he has the right to deduct from the
value of the fruits the expenses for production, gathering and preservation of
the fruits (Article 443, NCC).
He may also ask for reimbursement of the taxes he has paid, as these
are charges on the land owned by Marciano. This obligation is based on a
quasi-contract (Article 2175, NCC).
XVII
Rosario obtained a loan of P100,000.00 from Jennifer, and pledged her
diamond ring. The contract signed by the parties stipulated that if Rosario is
unable to redeem the ring on due date, she will execute a document if favor of
Jennifer providing that the ring shall automatically be considered full payment of
the loan.
[a]
Is the contract valid? Explain. (3%)
SUGGESTED ANSWER:
The contract is valid because Rosario has to execute a document if
favor of Jennifer to transfer the ownership of the pledged ring to the latter.
The contract does not amount to a pactom commissoriu, because it does not
provide for the automatic appropriation by the pledge of the thing pledged in
case of default by the pledgor.
[b]
Will your answer to [a] be the same if the contract stipulated that
upon failure of Rosario to redeem the ring on due date, Jennifer may
immediately sell the ring and appropriate the entire proceeds thereof
for herself as full payment of the loan? Reasons. (3%)
SUGGESTED ANSWER:
No, my answer will be different. While the contract of pledge is valid,
the stipulation authorizing the pledge to immediately sell the thing pledges is
void under Article 2088 of the New Civil Code which provides that: The
creditor cannot appropriate the things given by way of pledge or mortgage, or
dispose of them x x. Jennifer cannot immediately sell by herself the thing
pledged. It must be foreclosed by selling it at a public auction in accordance
with the procedure under Article 2112 of the New Civil Code.
XVIII
The Ifugao Arms is a condominium project in Baguio City. A strong
earthquake occurred which left huge cracks in the outer walls of the building. As a
result, a number of condominium units were rendered unfit for use. May Edwin,
owner of one of the condominium units affected, legally sue for partition by sale of
the whole project? Explain. (4%)
SUGGESTED ANSWER:
Yes, Edwin may legally sue for partition by sale of the whole
condominium project under the following conditions: (a) the damage or
destruction caused by the earthquake has rendered one-half (1/2) or more of
the units therein untenantable, and (b) that the condominium owners holding
an aggregate of more than thirty (30%) percent interest of the common areas
are opposed to the restoration of the condominium project (Section 8[b].
Republic Act No. 472 Condominium Act).
XIX
In 1972, Luciano de la Cruz sold to Chua Chung Chun, a Chinese citizen, a
parcel of land in Binondo. Chua died in 1990, leaving behind his wife and three
children, one of whom, Julian is a naturalized Filipino citizen. Six years after
Chuas death, the heirs executed an extrajudicial settlement of estate, and the
parcel of land was allocated to Julian. In 2007, Luciano filed suit to recover the
land he sold to Chua, alleging that the sale was void because it contravened the
Constitution which prohibits the sale of private lands to aliens. Julian moved to
dismiss the suit on grounds of pari delicto, laches and acquisitive prescription.
Decide the case with reasons. (4%)
SUGGESTED ANSWER:
The case must be dismissed. Julian, who is a naturalized Filipino
citizen and to whom the property was allocated in an extra-judicial partition
of the estate is now the new owner of the property. The defect in ownership of
the property of Julians alien father has already been cured by its transfer to
Julian. It has been validated by the transfer of the property to a Filipino
citizen. Hence, there is no more violation of the Constitution because the
subject real property is now owned by a Filipino citizen (Halili v. Court of
Appeals 287 SCRA 465 [1998]]. Further, after the lapse of 35 years, laches has
set in and the motion to dismiss may be granted, for the failure of Luciano to
question the ownership of Chua before its transfer to Julian.
XX
[a]
If Ligaya, a Filipino citizen residing in the United States, a files a

petition for change of name before the District Court of New York,
what law shall apply? Explain. (2%)
SUGGESTED ANSWER:
New York law shall apply. The petition for change of name filed in New
York does not concern the legal capacity or status of the petitioner.
Moreover, it does not affect the Registry of any other country including the
country of birth of the petitioner. Whatever judgment is rendered in that
petition will have effect only in New York. The New York court cannot, for
instance, order the Civil Registrar in the Philippines to change its records.
The judgment of the New York court allowing a change in the name of the
petitioner will be limited to the records of the petitioner in New York and the
use of the new name in all her transactions in New York. Since the records
and processed in New York are the only ones affected, the New York Court will
apply New York law in resolving the petition.
ALTERNATIVE ANSWER:
Philippine law shall apply (Art. 15, NCC). Status, conditions, family
rights and duties are governed by Philippine laws as to Filipinos even though
sojourning abroad.
ANOTHER ALTERNATIVE ANSWER:
If Ligaya, a Filipino, files a petition for change of name with the

District Court of New York, the laws of New York will govern since change of
name is not one of those covered by the principles of nationality.
[b]
If Henry, an American citizen residing in the Philippines, files a

petition for change of name before a Philippine court, what law shall
apply? Explain. (2%)
SUGGESTED ANSWER:
Philippine law will apply. The petition for change of name in the
Philippines will affect only the records of the petitioner and his transactions
in the Philippines. the Philippine court can never acquire jurisdiction over
the custodian in the U.S. of the records of the petitioner. Moreover, change of
name has nothing to do with the legal capacity or status of the alien. Since
Philippine records and transactions are the only ones affected, the Philippine
court may affect the change only in accordance with the laws governing those
records and transactions. That law cannot be but Philippine law.
ALTERNATIVE ANSWER:
U.S. law shall apply as it is his national law. This is pursuant to the
application of lex patriae or the nationality principle, by which his legal
status is governed by national law, the matter of change of name being
included in legal status. The Supreme Court has reiterated in several cases,
that the lex patriae as provided in Article 15 of the Civil Code is applicable to
foreign nationals in determining their legal status (supra).
TAXATION
PART I
I
XXXXX Enteria
XXXXX ESCALONA
VI
The Sangguniang Bayan of the Municipality of Sampaloc, Quezon passed an

ordinance imposing a storage fee of ten centavos (P0.10) for every 100 kilos of copra
deposited in any bodega within the Municipalitys jurisdiction. The Metropolitan
Manufacturing Corporation (MMC), with principal office in Makati, is engaged in
the manufacture of soap, edible oil, margarine, and other coconut oil-based
products. It has a warehouse in Sampaloc, Quezon, used as a storage space for the
copra purchased in Sampaloc and nearby towns before the same is shipped to
Makati. MMC goes to court to challenge the validity of the ordinance demanding
the refund of the storage fees it paid under protest.
Is the ordinance valid? Explain your answer. (4%)
SUGGESTED ANSWER:
Yes. The municipality is authorized to impose reasonable fees and charges as a
regulatory measure in an amount commensurate with the cost of regulation,
inspection and licensing (Section 147, LGC). In the case at bar the storage of copra
in any warehouse within the municipality can be the proper subject of regulation
pursuant to the police power granted to municipalities under the Revised
Administrative Code or the general welfare clause. A warehouse used for keeping
or storing copra is an establishment likely to endanger the public safety or likely to
give rise to conflagration because the oil content of the copra, when ignited, is
difficult to put under control by water and the use of chemicals is necessary to put
out the fire. It is, thus, reasonable that the Municipality impose storage fees for its
own surveillance and lookout (Procter and Gamble Philippine Manufacturing
Corporation v. Municipality of Jagna, Province of Bohol, 94 SCRA 894 [1979]).
VII
Kenya International Airlines (KIA) is a foreign corporation, organized under the laws
of Kenya. It is not licensed to do business in the Philippines. Its commercial
airplanes do not operate within Philippine territory, or service passengers
embarking from Philippine airports. The firm is represented in the Philippines by

its general agent Philippine Airlines (PAL), a Philippine corporation.
KIA sells airplane tickets through PAL, and these tickets are serviced by KIA
airplanes outside the Philippines. The total sales of airline tickets transacted by
PAL for KIA in 1997 amounted to P2,968,156.00. The Commissioner of Internal
Revenue assessed KIA deficiency income taxes at the rate of 35% on its taxable
income, finding that KIAs airline ticket sales constituted income derived from
sources within the Philippines.
KIA filed a protest on the ground that the P2,968,156.00 should be considered as
income derived exclusively from sources outside the Philippines since KIA only
serviced passengers outside Philippine territory.
Is the position of KIA tenable? Reasons. (4%)
SUGGESTED ANSWER:
KIAs position is not tenable. The revenue it derived in 1997 from sales of airplane
tickets in the Philippines, through its agent PAL, is considered as income from
within the Philippines, subject to the 35% tax based on its taxable income
pursuant to Section 25(a)(1) of the Tax Code of 1997. The transacting of business
in the Philippines through its local sales agent, makes KIA a resident foreign
corporation despite the absence of landing rights thus, it is taxable on income
derived from within. The source of an income is the property, activity or service that
produced the income. In the instant case, it is the sale of tickets in the Philippines
which is the activity that produced the income. KIAs income being derived from
within, is subject to Philippine income tax (CIR v. British Overseas Airways
Corporation, 149 SCRA 895 [1987]).
Note: The taxable year involved in the problem is 1997, hence, the suggested answer
above follows the applicable provision of the old Tax Code (National Internal Revenue
Code of 1977) then in effect and the prevailing jurisprudence on the matter. However,
with the adoption of the National Internal Revenue Code of 1997 (RA 9424) which
took effect on January 1, 1998 it is expected that the bar candidates have lost track
of the change in the tax law which transpired more than a decade ago. For this
reason, it is respectfully requested that an answer based on the provisions of the
New Tax Code shall be given full credit. Accordingly, an answer framed in this wise
should also be considered as a correct answer, viz:

Yes. KIA is a non-resident foreign corporation which is taxable only on income from
within. The income of KIA as an international air carrier is derived from the sale of
transportation services. Compensation for services is an income from within if the
services are performed in the Philippines (Section 42(A)(3), NIRC). The origination of
the flight is determinative in the source of the income of the international air
carrier. If the flight originates in the Philippines to a foreign destination, the income
is an income from within; if it originates in a foreign country to any destination, the
income is from without. In the case at bar, no flight will originate from the
Philippines because KIA is not licensed to do business here. Hence, the income is
not taxable in the Philippines (Section 28(A)(3)(a), NIRC).
VIII
The City of Manila enacted Ordinance No. 55-65 which imposes a municipal
occupation tax on persons practicing various professions in the city. Among those
subjected to the occupation tax were lawyers. Atty. Mariano Batas, who has a law
office in Manila, pays the ordinance imposed occupation tax under protest. He goes
to court to assail the validity of the ordinance for being discriminatory. Decide with
reasons. (3%)
SUGGESTED ANSWER:
The ordinance is valid. The tax imposed by the ordinance is in the nature of
a professional tax which is authorized by law to be imposed by cities (Section 151
in relation to Section 139, LGC). The ordinance is not discriminatory because the
City Council has the power to select the subjects of taxation and impose the same
tax on those belonging to the same class. The authority given by law to cities is to
impose a professional tax only on persons engaged in the practice of their
profession requiring government examination and lawyers are included within that
class of professionals.
Alternative Answer:
The ordinance is valid. The ordinance is not discriminatory because it
complies with the rule of equality and uniformity in taxation. Equality and
uniformity in local taxation means that all subjects or objects of taxation belonging
to the same class shall be taxed at the same rate within the territorial jurisdiction
of the taxing authority or local government unit and not necessarily in comparison
with other units although belonging to the same political subdivision. In fine,
uniformity is required only within the geographical limits of the taxing authority. It
is not for the Court to judge what particular cities or municipalities should be
empowered to impose occupation tax. In the case at bar, the imposition of the
occupation tax to persons exercising various professions in the city is well within
the authority of the City of Manila (Punsalan et.al. v. City of Manila, 95 Phil. 46
[1954]).
IX
Republic Power Corporation (RPC) is a government owned and controlled
corporation engaged in the supply, generation and transmission of electric power.
In 2005, in order to provide electricity to Southern Tagalog provinces, RPC entered
into an agreement with Jethro Energy Corporation (JEC), for the lease of JECs
power barges and the fixtures, fittings, machinery, and equipment therein, all of
which JEC shall supply at its own cost, and that JEC shall operate, manage and
maintain the power barges for the purpose of converting the fuel of RPC into
electricity. The contract also stipulates that all real estate taxes and assessments,
rates and other charges, in respect of the power barges, shall be for the account of
RPC.
In 2007, JEC received an assessment of real property taxes on the power barges
from the Assessor of Batangas City. JEC sought reconsideration of the assessment
on the ground that the power barges are exempt from real estate taxes under
Section 234 (c) of R.A. 7610 as they are actually, directly, and exclusively used by
RPC, a government owned and controlled corporation. Furthermore, even assuming
that the power barges are subject to real property tax, RPC should be held liable
therefor, in accordance with the terms of the lease agreement. Is the contention of
JEC correct? Explain your answer. (4%)
SUGGESTED ANSWER:
The contention of JEC is not correct. The owner of the power barges is JEC
which is required to operate, manage and maintain the power barges for the
purpose of converting the fuel of RPC into electricity. This belies the claim that
RPC, a government-owned and controlled corporation engaged in the supply,
generation and transmission of electric power, is the actual, direct and exclusive
user of the barge, hence does not fall within the purview of the exempting provision
of Section 234 (c) of R.A. 7610. Likewise, the argument that RPC should be liable to
the real property taxes consonant with the contract is devoid of merit. The liability
for the payment of the real estate taxes is determined by law and not by the
agreement of the parties (FELS Energy Inc. v. The Province of Batangas, 516 SCRA
186 [2007]).
X
ABCD Corporation (ABCD) is a domestic corporation with individual and corporate
shareholders who are residents of the United States. For the 2nd quarter of 1983,
these U.S.- based individual and corporate stockholders received cash dividends
from the corporation. The corresponding withholding tax on dividend income 30%
for individual and 35% for corporate non-resident stockholders was deducted at
source and remitted to the BIR.
On May 15, 1984, ABCD filed with the Commissioner of Internal Revenue a formal
claim for refund, alleging that under the RP-US Tax Treaty, the deduction withheld
at source as tax on dividends earned was fixed at 25% of said income. Thus, ABCD
asserted that it overpaid the withholding tax due on the cash dividends given to its
non-resident stockholders in the U.S. The Commissioner denied the claim;
On January 17, 1985, ABCD filed a petition with the Court of Tax Appeals (CTA)
reiterating its demand for refund.
[a]
Does ABCD Corporation have the legal personality to file the refund
on behalf of its non-resident stockholders? Why or why not? [3%]
SUGGESTED ANSWER:
Yes. A withholding agent is not only an agento fthe Government but is also an
agent of the taxpayer/income earner. Hence, ABCD is also an agent of the
beneficial owner of the dividends with respect to the actual payment of the tax to
the government, such authority may reasonably be held to include the authority to
file a claim for refund and to bring an action for recovery of such claim (CIR v.
Procter & Gamble, 204 SCRA 377, [1991]).
[b]
Is the contention of ABCD Corporation correct? Why or why not? (3%)
SUGGESTED ANSWER:
Yes. The provision of a treaty must take precedence over and above the provisions
of the local taxing statute consonant with the principle of international comity. Tax
treaties are accepted limitations to the power of taxation. Thus, the CTA should
apply the treaty provision so that the claim for refund representing the difference
between the amount actually withheld and paid to the BIR and the amount due
and payable under the treaty, should be granted (Hawaiian-Philippine Company v.
CIR, CTA Case No. 3887, May 31, 1988).
The contention of ABCD Corporation that it overpaid the withholding tax is correct
provided it can establish: (1) the existence of RP-US Tax Treaty imposing a lower
rate of tax of 25%; (2) the said tax treaty is applicable to its case; and (3) its
payment with the BIR of a tax based on a higher rate of 30% and 35%, respectively.
XI
Raffy and Wena; husband and wife, are both employed by XXX Corporation. After
office hours, they jointly manage a coffee shop at the ground floor of their house.
The coffee shop is registered in the name of bothn spouses. Which of the following
is the correct way to prepare their income tax return? Write the letter only. DO NOT
EXPLAIN YOUR ANSWER. [2%]
[a] Raffy will declare as his income the salaries of both spouses, while Wena will
declare the income from the coffee shop.
[b] Wena will declare the combined compensation income of the spouses, and Raffy
will declare the income from the coffee shop.
[c] All the income will be declared by Raffy alone, because only one consolidated
return is required to be filed by the spouses.
[d] Raffy will declare his own compensation income and Wena will declare hers. The
income from the coffee shop shall be equally divided between them. Each spouse
shall be taxed separately on their corresponding taxable income to be covered by
one consolidated return for the spouses.
[e] Raffy will declare his own compensation income and Wena will declare hers. The
income for the coffee shop shall be equally divided between them. Raffy will file one
income tax return to cover all the income of both spouses, and the tax is xomputed
on the aggregate taxable income of the spouses.
SUGGESTED ANSWER:
d] Raffy will declare his own compensation income and Wena will declare hers. The
income from the coffee shop shall be equally divided between them. Each spouse
shall be taxed separately on their corresponding taxable income to be covered by
one consolidated return for the spouses.
XII
YYY Corporation engaged the services of the Manananggol Law Firm in 2006 to
defend the corporations title over a property used in the business. For the legal
services rendered in 2007, the law firm billed the corporation only in 2008. The
corporation duly paid.
YYY Corporation claimed this expense as a deduction from gross income in its 2008
return, because the exact amount of the expense was determined only in 2008. Is
YYYs claim of deduction proper? Reasons. (4%)
SUGGESTED ANSWER:
No. The expense is deductible in the year it complies with the all-events test. The
test is considered met if the liability is fixed, and the amount of such liability is
determined with reasonable accuracy. The liability to pay is already fixed in 2007
when the services were rendered, and the amount of such liability is determinable
with reasonable accuracy in the same year. Hence, the deduction should have been
claimed in 2007 and not in 2008. (CIR v. Isabela Cultural Corporation, 515 SCRA
556 [2207]).
XIII
In 1999, Xavier purchased from his friend, Yuri, a painting for P500,000.00. The
fair market value (FMV) of the painting at the time of the purchase was P1-million.
Yuri paid all the corresponding taxes on the transaction. In 2001, Xavier died. In
his last will and testament, Xavier bequeathed the painting, already worth P1.5million, to his only son, Zandro. The will also granted Zandro the power to appoint
his wife, Wilma, as successor to the painting in the event of Zandro's death. Zandro
died in 2007, and Wilma succeeded to the property.
[a]
Should the painting be included in the gross estate of Xavier in 2001

and thus, be subject to estate tax? Explain. (3%)
SUGGESTED ANSWER:
Yes. The transmission of the property from Xavier to Zandro is subject of the estate
tax because this is a property within Xaviers control to dispose upon his death.
The composition of the gross estate pertains to properties owned and existing as of
the time of death and to be transferred by the owner by death (Section 85, NIRC).
[b]
Should the painting be included in the gross estate of Zandro in 2007

SUGGESTED ANSWER:
No. The property passes from Zandro to Wilma by virtue of the special power of
appointment granted by Xavier. The law includes as part of the gross estate of the
decedent a property passing under general (not special) power of appointment. The
grantee of the power to appoint, Zandro, has no control over the disposition of the
property because it is the desire of the grantor of the power that the property will
go to a specific person. This being so, the painting should not be included in the
gorss estate of Zandro, hence, it is not subject to estate tax (Section 85(D), NIRC).
[c]
Should the painting be included in the gross estate of Zandro in 2007

SUGGESTED ANSWER:
Vanishing deduction shall be allowed to the estate of Xavier but only to the extent
of of the property which is the portion acquired by (Section 100, NIRC). The
donation took place within 5 years (1999 to 2001) from the death of Xavier; hence,
there is a vanishing deduction. However, Zandros estate will not be entitled to
claim vanishing deduction because, first and foremost, the property previously
taxed is not includable in his gross estate and second, even if it is includable, the
present decedent died more than 5 years from the death of the previous decedent,
and that a vanishing deduction is already claimed by the previous estate involving
the same property.
XXXXX MILLENA
XVII
A final assessment notice was issued by the BIR on June 13, 2000, and received by
the taxpayer on June 15, 2000. The taxpayer protested the assessment on July 31,
2000. The protest was initially given due course, but was eventually denied by the
Commissioner of Internal Revenue in a decision dated June 15, 2005. The taxpayer
then filed a petition for review with the Court of Tax Appeals (CTA), but the CTA
dismissed the same.
[a]
Is the CTA correct in dismissing the petition for review? Explain your
answer. (4%)
SUGGESTED ANSWER:
Yes. The protest was filed out of time, hence the CTA does not acquire jurisdiction
over the matter (CIR v. Atlas Mining and Development Corp. [2000]).
[b]
Assume that the CTA's decision dismissing the petition for review has
become final. May the Commissioner legally enforce collection of the
delinquent tax? Explain. (4%)
SUGGESTED ANSWER:
No. The protest was filed out of time and, therefore, did not suspend the running of
the prescriptive period for the collection of the tax. Once the right to collect has
prescribed, the Commissioner can no longer enforce collection of the tax liability
against the taxpayer (CIR v. Atlas Mining and Development Corp., February 14,
2000).
XVIII
A taxpayer received an assessment notice from the BIR on February 3, 2009. The
following day, he filed a protest, in the form of a request for reinvestigation, against
the assessment and submitted all relevant documents in support of the protest. On
September 11, 2009, the taxpayer, apprehensive because he had not yet received
notice of a decision by the Commissioner on his protest, sought your advice.
What remedy or remedies are available to the taxpayer? Explain. (4%)
SUGGESTED ANSWER:
The remedy of a taxpayer is to avail of either of two options:
1. File a petition for review with the CTA within 30 days after the expiration of the
180-day period from submission of all relevant documents; or
2. Await the final decision of the Commissioner on the disputed assessment and
appeal such final decision of the CTA within 30 days after receipt of a copy of such
decision.
These options are mutually exclusive such that resort to one bars the application of
the other (RCBC v. CIR, 522 SCRA 144 [2007]).
XIX
Johnny transferred a valuable 10-door commercial apartment to a designated
trustee, Miriam, naming in the trust instrument Santino, Johnnys 10-year-old
son, as the sole beneficiary. The trustee is instructed to distribute the yearly
rentals amounting to P720,000.00. The trustee consults you if she has to pay
annual income tax on the rentals received from the commercial apartment.
[a]
What advice will you give the trustee? Explain. (3%)
SUGGESTED ANSWER:
I will advise the trustee that she has nothing to pay in annual income taxes
because the trusts taxable income is zero. This is so because the ampunt of
income to be distributed annually to the beneficiary is a deduction from the gross
income of the trust but must be reported as income of the beneficiary (Section 61
(A), NIRC)
[b]
Will your advice be the same if the trustee is directed to accumulate

the rental income and distribute the same only when the beneficiary
reaches the age of majority? Why or why not? (3%)
SUGGESTED ANSWER:
No. The trustee has to pay the income tax on the trusts net income determined
annually if the income is required to be accumulated. Once a taxable trust is
established, its net income is either taxable to the trust, represented by the trustee,
or to the beneficiary depending on the provision fro distribution of income following
the one-layer taxation scheme (Section 61(A), NIRC).
XX
Masarap Food Corporation (MFC) incurred substantial advertising expenses in
order to protect its brand franchise for one of its line products. In its income tax
return, MFC included the advertising expenses as a deduction from gross income,
claiming it as an ordinary business expenses. Is MFC correct? Explain. (3%)
SUGGESTED ANSWER:
No. The protection of taxpayers brand franchise is analogous to the maintainance
of goodwill or title to ones property which is in the nature of a capital expenditure.
An advertising expenses, of such nature does not qualify as an ordinary business
expense, because the benefit to be enjoyed by the taxpayer goes beyond one taxable
year (CIR v. General Foods Inc., 401 SCRA 545 [2003]).
MERCANTILE LAW
PART I
I
[a]
The Denicola Test in intellectual property law states that if design

elements of an article reflect a merger of aesthetic and functional
considerations, the artistic aspects of the work cannot be
conceptually separable from the utilitarian aspects; thus the article
cannot be copyrighted.
SUGGESTED ANSWER:
True. Applying the Denicola Test in Brandir International, Inc. v Cascade
Pacific Lumber Co. (834 F. 2d 1142, 1988 Copr.L.Dec. P26), the United States Court
of Appeals for the Second Circuit held that if there is any aesthetic element which
can be separated from the utilitarian elements, then the aesthetic element may be
copyrighted.
[Note: It is suggested that the candidate be given full credit for whatever answer or
lack of it. Further it is suggested that terms or any matter originating from foreign
laws or jurisprudence should not be asked.]
[b]
If the Ombudsman is convinced that there is a violation of law after

investigating a complaint alleging illicit bank deposits of public office,
the Ombudsman may order the bank concerned to allow in camera
inspection of bank records and documents.
SUGGESTED ANSWER:
False. The Bank Secrecys Law prohibits the Inspection of a bank account
unless the permission of the account holder is obtained, or upon lawful order of the
court or when the deposit is the subject of litigation. Investigation by the
Ombudsman is not considered as a pending litigiation to allow the examination of
the bank records and documents (Marquez v. Desierto, 359 SCRA 772 [2001]).
[c]
Even if the seller and the buyer in a sale in bulk violate the Bulk
Sales Law, the sale would still be valid.
SUGGESTED ANSWER:
False. When the Bulk Sales Law is violated, the sale is null and void. When
the provisions of the said law have not been complied with, the sale is considered
as being fraudulent and void and even when coupled with delivery, the title over
the goods does not transfer to the buyer. However, civil liabilities arising from the
transaction remain enforceable between the parties thereto.
[d]
Dividends on shares of stocks can oly be declared out of unrestricted

retained earnings of the corporation.
SUGGESTED ANSWER:
True. Dividends on shares of stock of a corporation, whether cash dividend
or stock dividend, can be validly declared only out of unrestricted retained earnings
(Sec. 43, Corporation Code). It cannot be declared out of the capital. Otherwise,
such declaration of dividend will violate the trust fund doctrine.
[e]
A bank under receivership can still grant new loans and accept new
deposits.
SUGGESTED ANSWER:
False. During the receivership, the assets and properties of the corporation
are being gathered for conversion into cash in preparation for distribution to
creditors. Granting new loans and accepting new deposits would constitute doing
business which is contrary to the purpose and nature of a receivership proceeding.
II
III
IV
Antartica Life Assurance Corporation (ALAC) publicly offered a specially designed
insurance policy covering persons between ages of 50 and 75 who may be afflicted
with serious and debilitating illnesses. Quirico applied for insurance coverage,
stating that he was already 80 years old. Nonetheless, ALAC approved his
application.
Quirco then requested ALAC for issuance of a cover note while he was trying to
raise fund to pay the insurance premium. ALAC granted the request. Ten days after
he received the cover note, Quirico had a heart seizure and had to be hospitalized,
He then filed a claim on the policy.
[a]
Can ALAC validly deny the claim on the ground that the insurance3
coverage, as publicly offered, was available only to person 50 to 75
years of age? Why or why not? (2%)
SUGGESTED ANSWER:
No. By approving the application of Quirico who disclosed that he was

80already 80 years old, ALAC waived the age requirement. ALAC is now estopped
from raising such defense of age of the insured.
[b]
Did ALACs issuance of a cover note result on the perfection of the

insurance contract between Quirico and ALAC? Explain (3%)
SUGGESTED ANSWER:
The issuance of a cover note by ALAC resulted in the perfection of the
insurance contract. In that case, it is only because there is delay in the issuance of
the insurance policy that the cover note was issued.
The cover note is a receipt whereby a company agrees to insure the insured
for 60 days pending the issuance of a regular policy. No separate premium is to be
paid on a cover note. It is not a separate policy but it is integrated in the regular
policy to be subsequently issued.
V
Cecilio is planning to put up a grocery store in the subdivision where he and his
family reside. To promote his proposed business venture, he told his wife and three
children to send out promotional text messages to all residents in the subdivision.
Cecilios family members did as instructed, and succeeded in reaching, through
text messages, more than 80% of the residents in the subdivision.
Is Cecilio habitually engaged in commerce even if the grocery store is yet to be
established? Explain your answer. (3%)
SUGGESTED ANSWER:
Yes. Even if the grocery store has yet to be established, Cecilio habitually
engaged in commerce when per his instructions member of the family contacted
more than 80% of the residents in the subdivision where they reside. According to
Article 3 of the Code of Commerce, legal presumption of habitually engaged in
commerce shall exist from the moment the person who intends to engage therein
announces through circulars, newspapers, handbills, posters exhibited to the
public, or in any other manner whatsoever, an establishment which has for its
object some commercial operation. Text messages may qualify to be equivalent to
electronic documents.
VI
Lorenzo drew a bill of exchange in the amount of P100,000.00 payable to
Barbara or order, with his wife, Diana, as drawee. At the time the bill was drawn,
Diana was unaware that Barbara is Lorenzos paramour.
Barbara then negotiated the bill to her sister, Elena, who paid for it for
value, and who did not know who Lorenzo was. On due date, Elena presented the
bill to Diana for payment, but the latter promptly dishonored the instrument
because by then Diana had learned of his husbands dalliance.
[a]
Was the bill dishonored by Diana? Explain. (3%)
SUGGESTED ANSWER:
No. The bill wasn not lawfully dishonored by Diana. Elena, to whom the
instrument was negotiated, was a holder in due course inasmuch as she paid for
value therefore in good faith.
[b]
Does the illicit cause or

negotiability? Explain. (3%)
consideration
adversely
affect
the
SUGGESTED ANSWER:
No. The illicit cause or consideration does not adversely affect the
negotiability iof the bill, especially in the hands of a holder in due course. Under
Section 1 of the Negotiable Instruments Law, the bill of exchange is a negotiable
instrument. Every negotiable instrument is deemed prima facie to have been issued
for a valuable consideration; and every person whose signature appears thereon to
have become a party thereto for value (Sec. 24, Negotiable Instruments Law).
VII
Global Transport Services, Inc. (GTSI) operates a fleet of cargo vessels plying
interisland routes. One of its vessels, MV Dona Juana, left the port of Manila for
Cebu laden with, among other goods, 10,000 television sets consigned to
Romualdo, a TV retailer in Cebu.
When the vessel was about ten nautical miles away from Manila, the ship captain
heard on the radio that a typhoon which, as announced by PAG-ASA, was on its
way out of the country, had suddenly veered back into Philippine territory. The
captain realized that MV Dona Juana would traverse the storms path, but decided
to proceed with the voyage. True enough, the vessel sailed into the storm. The
captain ordered the jettison of the 10,000 television sets, along with some other
cargo, in order to lighten the vessel and make it easier to steer the vessel out of the
path of the typhoon. Eventually, the vessel, with its crew intact, arrived safely in
Cebu.
[a]
Will you characterize the jettison of Romualdos TV sets as an average.

If so, what kind of an average, and why? If not, why not? (3%)
SUGGESTED ANSWER:
The jettison of Romualdos TV sets resulted in a general average loss, which entitles
him to compensation or indemnification from the shipowner and the owners of the
cargoes saved by the jettison.
ALTERNATIVE ANSWER:
The jettison resulted to a particular average loss because the damage was due to
the fault of the captain.
[b]
Against whom does Romualdo have a cause of action for indemnity of

his lost TV sets? Explain. (3%)
SUGGESTED ANSWER:
Romualdo has a cause of action for his lost TV sets against the shipowner and the
owners of the cargoes saved by the jettison. The jettison of the TV sets resulted in a
general average loss, entitled Romualdo to indemnity for the lost TV sets.
VIII
Maharlikang Pilipino Banking Corporation (MPBC) operates several branches of
Maharlikang Pilipino Rural Bank in Eastern Visayas. Almost all the branch
managers are close relatives of the members of the Board of Directors of the
corporation. Many undeserving relatives of the branch managers were granted
loans. In time, the branches could not settle their obligations to depositors and
creditors.
Receiving reports of these irregularities, the Supervising and Examining
Department (SED) of the Monetary Board prepared a detailed report (SED Report)
specifying the facts and the chronology of events relative to the problems that beset
MPBC rural bank branches. The report concluded that the bank branches were
unable to pay their liabilities as they fell due, and could not possibly continue in
business without incurring substantial losses to its depositors and creditors.
[a]
May the Monetary Board order the closure of the MPBC rural banks
relying only on the SED Report without need of an examination?
Explain. (3%)
SUGGESTED ANSWER:
Yes. Upon receipt of the report of the SED, the Monetary Board is authorized
to take any of the actions enumerated under Sec. 30, Republic Act No. 7653,
otherwise known as the New Central Bank Act, leading to the receivership and
liquidation of a bank or quasi-bank. There is no requirement that an examination
be first conducted before a banking institution may be placed under receivership
(Rural Bank of Buhi v. Court of Appeals, 162 SCRA 288 [1988]).
[b]
If MPBC hires you as lawyer because the Monetary Board has

forbidden it from carrying on its business due to its imminent
insolvency, what action will you institute to question the Monetary
Boards order? Explain. (3%)
SUGGESTED ANSWER:
The order of the Monetary Board may be questioned on a petition for
certiorari on the ground that the action taken was in excess of jurisdiction or with
grave abuse of discretion amounting to lact or excess of jurisdiction. The petition
for certiorari may only be filed by the stockholders of record representing the
majority of the capital stock within ten (10) days from the receipt by the board of
directors of MPBC of the order directing receivership, liquidation or conservatorship
(Sec. 30, par. [2], R.A. No. 7653).
IX
When is there an ultra vires act on the part of [a] the corporation; [b] the board of
directors; and [c] the corporate officers. (3%)
SUGGESTED ANSWER:
[a] Under Section 45 of the Corporation Code, no corporation shall possess or
exercise any corporate power except those conferred by the Code or by its articles of
incorporation and except such as are necessary or incidental to the exercise of the
powers so conferred. When a corporation does an act or engages in an activity
which is outside of its express, implied or incidental powers set out in its articles of
incorporation, the act is deemed to be ultra vires.
[b] When the Board engages in an activity or enters into a contract without the
ratificatory vote of the stockholders in those instances where the Corporation Code
so requires such ratificatory vote, such as when the corporation is made to invest
in another corporation or engage in a business which is not in pursuit of its
primary purpose, the board resolution not ratified by stockholders owning or
representing at least two-thirds of the outstanding capital stock would make the
transaction void, as being ultra vires.
[c] When a corporate officer enters into a contract on behalf of the corporation
without having been so expressly or impliedly authorized by the Board of Directors,
even when the act or contract falls within the corporations express, implied or
incidental power, then the unauthorized act of the corporate officer is deemed to be
ultra vires.
X
What are the so-called exempt securities under the Securities Regulation Code?
(2%)
SUGGESTED ANSWER:
Under Section 9 of the Securities Regulation Code, the so-called exempt securities
are:
(a)
Those issued or guaranteed by the government of the Philippines or any of
its political subdivisions or agencies;
(b)
Those issued or guaranteed by the government of any foreign country with
which the Philippines has diplomatic relations, or any other state on the basis of
reciprocity, although the SEC may require compliance with the form and content of
disclosures;
(c)
Those issued by the receiver or by the trustee in a bankruptcy duly approved
by the proper adjudicatory board;
(d)
Those involving the sale or transfer which is by law, under the regulation of
the OIC, HLURB, BIR; and
(e)
Those issued by banks, except its own shares.
[Note: It is suggested that any two(2) of the above exempt securities should be
considered as enough answer to the question.]
PART II
XI
TRUE or FALSE. Answer TRUE if the statement is true, or FALSE if the statement
is false. Explain your answer in not more than two (2) sentences. (5%)
[a]
A loan agreement which provides that the debtor shall pay interest at
the rate determined by the banks manager violates the disclosure
requirement of the Truth in Lending Act.
SUGGESTED ANSWER:
True. This is contrary to the duty of the creditor to disclose in detail the
interests, charges and other figures indicating in details the cost of the credit
granted to the debtor (United Coconut Planters Bank v. Beluso. 530 SCRA 567
[2007]).
[b]
Under the Warehouse Receipts Law, a warehouse man loses his lien
upon the goods when he surrenders possession thereof.
SUGGESTED ANSWER:
True. A lien is dependent on possession. When a warehouseman surrenders
possession, he thereby loses his lien on the goods over which he no longer has
possession (Sec. 29 (a), Warehouse Receipts Law).
[c]
The Howey Test states that there is an investment contract when a

person invests money in a common enterprise and is led to expect
profits primarily from the efforts of others.
SUGGESTED ANSWER:
The Howey Test requires a transaction, contract or scheme whereby a person
makes an investment of money in a common enterprise with the expectation of
profits to be derived solely, not primarily from the efforts of others (Power House
Unlimited Corp. v. SEC, 546 SCRA 567 [2008]).
[Note: It is suggested that the candidate be given full credit, for whatever his answer
is or lack thereof, considering that the term originated from foreign jurisprudence.]
[d]
A document, dated July 15, 2009, that reads: Pay to X or order the
sum of P5,000.00 five days after his pet dog, Sparky, dies. Signed Y
is a negotiable instrument.
SUGGESTED ANSWER:
True. The document is subject to a term and not a condition. The dying of
the dog is a day which is certain to come. Therefore, the order to pay is
unconditional, in compliance with Section 1 of the Negotiable Instruments Law
(NIL).
[Note: This answer assumes there is a drawee.]
[e]
A bank is bound to know its depositors signature is an inflexible

rule in determining the liability of a bank in forgery cases.
SUGGESTED ANSWER:
False. In cases of forgery, the forger may not necessarily be a depositor of the
bank, especially in the case of a drawee bank. Yet in many cases of forgery, it is the
drawee bank that is held liable for the loss.
XII
Gaudencio, a store owner, obtained a P1-million loan from Bathala Financing
Corporation (BFC). As security, Gaudencio executed a Deed of Assignment of
Receivables, assigning fifteen (15) checks received from various customers who
bought merchandise from his store. The checks were duly indorsed by Gaudencios
customers.
The Deed of Assignment contains the following stipulation:
If for any reason, the receivables or any part thereof cannot be paid by the
obligors, the ASSIGNOR unconditionally and irrevocably agrees to pay the same,
assuming the liability to pay, by way of penalty, three percent (3%) of the total
amount unpaid, for the period of delay until the same is fully paid.
When the checks became due, BFC deposited them for collection, but the
drawee banks dishonored all the checks for one of the following reasons: account
closed, payment stopped, account under garnishment, or insufficiency of
funds. BFC wrote Gaudencio notifying him of the dishonored checks, and
demanding payment of the loan. Because Gaudencio did not pay, BFC filed a
collection suit.
In his defence, Gaudencio contended that [a] BFC did not give timely notice
of dishonor (of the checks); and [b] considering that the checks were duly indorsed,
BFC should proceed against the drawers and the indorsers of the checks.
Are Gaudencios defenses tenable? Explain. (5%)
SUGGESTED ANSWER:
No. Gaudencios defenses are untenable. The cause of action of BFC was
really on the contract of loan, with the checks merely serving as collateral to secure
the payment of the loan. By virtue of the Deed of Assignment which he signed,
Gaudencio undertook to pay for the receivables if for any reason they cannot be
paid by the obligors (Velasquez v. Solidbank Corporation, 550 SCRA 119 [2008]).
XIII
Ciriaco leased a commercial apartment from Supreme Building Corporation
(SBC). One of the provisions of the one-year lease contract states:
18. xxx The LESSEE shall not insure against fire the chattels, merchandise,
textiles, goods and effects placed at any stall or store or space in the leased premises
without first obtaining the written consent of the LESSOR. If the LESSEE obtains fire
insurance coverage without the consent of the LESSOR, the insurance policy is
deemed assigned and transferred to the LESSOR for the latters benefit.
Notwithstanding the stipulation in the contract, without the consent of SBC,
Ciriaco insured the merchandise inside the leased premises against loss by fire in
the amount of P500,000.00 with First United Insurance Corporation (FUIC).
A day before the lease contract expired, fire broke out inside the leased
premises, damaging Ciriacos merchandise. Having learned of the insurance earlier
procured by Ciriaco, SBC demanded from FUIC that the proceeds of the insurance
policy be paid directly to it, as provided in the lease contract.
Who is legally entitled to receive the insurance proceeds? Explain. (4%)
SUGGESTED ANSWER:
Ciriaco is entitled to receive the proceeds of the insurance policy. The

stipulation that the policy is deemed assigned and transferred to SBC is void,
because SBC has no insurable interest in the merchandise of Ciriaco (Cha v. Court
of Appeals, 277 SCRA 690 [1997]).
XIV
XXX Corporation (XXX) and its sister company, YYY Corporation (YYY), are
both under judicial receivership. The receiver has the option to sell all or
substantially all of the properties of YYY to XXX, or simply merge the two
corporations. Under either option, the requirements under the Corporation Code
have to be complied with.
The receiver seeks your advice on whether the Bulk Sales Law will apply to
either, or both, options. What will your advice be? Explain. (4%)
SUGGESTED ANSWER:
I will advice the receiver that the Bulk Sales Law does not apply to both
options. Section 8 of the Bulk Sales Law expressly provides that it will not apply to
executors, administrators, receivers, and assignees in insolvency, or public officers,
acting under judicial process. In this case, the receiver is acting under judicial
process.
XV
After disposing of his last opponent in only two rounds in Las Vegas, the renowned
Filipino boxer Sonny Bachao arrived at the Ninoy Aquino International Airport met
by thousands of hero-worshipping fans and hundreds of media photographers. The
following day, a colored photograph of Sonny wearing a black polo shirt
embroidered with the 2-inch Lacoste crocodile logo appeared on the front page of
every Philippine newspaper.
Lacoste International, the French firm that manufactures Lacoste apparel
and owns the Lacoste trademark, decided to cash in on the universal popularity of
the boxing icon. It reprinted the photographs with the permission of the newspaper
publishers, and went on a world-wide blitz of print commercials in which Sonny is
shown wearing a Lacoste shirt alongside the phrase Sonny Bachao just loves
Lacoste.
When Sonny sees the Lacoste advertisements, he hires you as a lawyer and
asks you to sue Lacoste International before a Philippine court:
[a]
For trademark infringement in the Philippines because Lacoste

International used his image without his permission; (2%)
SUGGESTED ANSWER:
Sonny Bachao cannot sue for infringement of trademark. The photographs

showing him wearing a Lacoste shirt were not registered as a trademark (Pearl &
Dean [Phil.], Inc. v. Shoemart, Inc., 409 SCRA 231 [2003]).
[b]
For copyright infringement because of the unauthorized use of the

published photographs; (2%) and
SUGGESTED ANSWER:
Sonny Bachao cannot sue for infringement of copyright for the unauthorized
use of the photographs showing him wearing a Lacoste shirt. The copyright to the
photographs belongs to the newspapers which published them inasmuch as the
photographs were the result of the performance of the regular duties of the
photographers (Subsection 178.3 [b], Intellectual Property Code [IPC]). Moreover,
the newspaper publishers authorized the reproduction of the photographs (Section
177, Intellectual Property Code).
[c]
For injunction in order to stop Lacoste International from featuring

him in their commercials. (2%)
Will these actions prosper? Explain.

SUGGESTED ANSWER:
The complaint for injunction to stop Lacoste International from featuring
him in its advertisements will prosper. This is a violation of subsection 123.4 (c) of
the IPC and Art. 169 in relation to Art. 170 of the IPC.
[d]
Can Lacoste International validly invoke the defense that it is not a

Philippine company and, therefore, Philippine courts have no
jurisdiction? Explain. (2%)
SUGGESTED ANSWER:
No. Philippine courts have jurisdiction over it, if it is doing business in the
Philippines. Moreover, under Section 133 of the Corporation Code, while a foreign
corporation doing business in the Philippines without license to do business cannot
sue or intervene in any action, it may be sued or proceeded against before our
courts or administrative tribunal (De Joya v. Marquez, 481 SCRA 376 [2006]).
XIV
X issued a promissory note which states, I promise to pay Y or order Php 100,000
or one (1) unit Volvo Sedan. Which statement is most accurate?
a)
The promissory note is negotiable because the forms of payment are clearly
stated.
b)
The promissory note is non-negotiable because the option as to which form
of payment is with the maker.
c)
The promissory note is an invalid instrument because there is more than
one form of payment.
d)
The promissory note can be negotiated by way of delivery.
SUGGESTED ANSWER:
b) The promissory note is non-negotiable because the option as to which form of

payment is with the maker.
XVII
A stale check is a check -
a)
that cannot anymore be paid although the underlying obligation still exists.
b)
That cannot anymore be paid and the underlying obligation under the check
is also extinguished.
c)
That can still be negotiated or indorsed so that whoever is the holder can
claim payment therefrom.
d)
Which has not been presented for payment within a period of thirty (30)
days.
SUGGESTED ANSWER:
a) that cannot anymore be paid although the underlying obligation still exists.
XVIII
In payment for his debt in favor of X, Y gave X a Manager's Check in the amount of
Php 100,000 dated May 30, 2012. Which phrase best completes the statement A
Manager's Check:
a)
is a check issued by a manager of a bank for his own account.
b)
Is a check issued by a manager of a bank in the name of the bank against
the ank itself for the account of the bank.
c)
Is like any ordinary check that needs to be presented for payment also.
d)
Is better than a cashier's check in terms of use and effect.
SUGGESTED ANSWER:
b) is a check issued by a manager of a bank in the name of the bank against the
bank itself for the account of the bank.
XIX
One of the passenger buses owned by Continental Transit Corporatio (CTC),
plying its usual route, figures in a collision with another bus owned by Universal
Transport, Inc. (UTI). Among those injured inside the CTC bus were: Romeo, a stow
away; Samuel, a pickpocket then in the act of robbing his seatmate when the
collision occurred; Teresita, the bus drivers mistress who usually accompanied the
driver on his trips for free; and Uriel, holder of a free riding pass he won in a raffle
held by CTC.
[a]
Will a suit for breach of contract of carriage filed by Romeo, Samuel,

Teresita, and Uriel against CTC prosper? Explain. (3%)
SUGGESTED ANSWER:
Romeo cannot sue for breach of contract of carriage. A stowaway like Romeo, who
secures passage by fraud, is not a passenger (Vda. De Nueca v. Manila Railroad
Company, 13 C.A.R 49 [1968]).
Samuel and Teresita cannot sue for breach of contract of carriage. The elements in
the definition of a passenger are: an undertaking of a person to travel in the
conveyance provided by the carrier and an acceptance by the carrier of the person
as a passenger. (14 Am Jur 2d, Carriers, So. 714, p. 164). Samuel did not board
the bus to be transported but to commit robbery. Teresita did not board the bus to
be transported but to accompany the driver while he was performing his work.
Uriel can sue for breach of contract. He was a passenger although he was being
transported gratuitously, because he won a free riding pass in a raffle held by CTC
(Article 1758, New Civil Code).
[b]
Do Romeo, Samuel, Teresita, and Uriel have a cause of action for

damages against UTI? Explain. (3%)
SUGGESTED ANSWER:
Romeo, Samuel, Teresita and Uriel may sue UTI on the basis of quasi-delict since
they have no pre-existing contractual relationship with UTI. They may allege that
the collision was due to the negligence of driver of UTI and UTI was negligent in the
selection and supervision of its driver (Articles 2176 and 2180, New Civil Code).
[c]
What, if any, are the valid defenses that CTC and UTI can raise in the
respective actions against them? Explain. (3%)
SUGGESTED ANSWER:
With respect to Romeo, Samuel and Teresita, since there was no pre-existing
contractual relationship between them and CTC, CTC can raise the defense that it
exercised the due diligence of a good father of a family in the selection and
supervision of its driver (Article 2180, New Civil Code).
It can raise the same defense against Uriel if there is a stipulation that exempts it
from liability for simple negligence, but not for willful acts or gross negligence
(Article 1758, New Civil Code).
CTC can also raise against all the plaintiffs the defense that the collision was due
exclusively to the negligence of the driver of UTI, and this constitutes a fortuitous
event, because there was no concurrent negligence on the part of its own driver
(Ampang v. Guinoo Transport Company, G.R. No. L-5044, April 30, 1953).
CTC can also raise against Samuel the defense that he was engaged in a seriously
illegal act at the time of the collision, which can render him liable for damages on
the basis of quasi-delict(Dobbs, the Law of Torts, pp 524-525).
Since UTI had no pre-existing contractual relationship with any of the plaintiffs, it
can raise the defense that it exercised due diligence in the selection and
supervision of its driver, that the collision was due exclusively to the negligence of
CTC, and that Samuel was committing a serious illegal act at the time of the
collision.
XX
Under the Securities Regulation Code, what is the Margin Trading Rule? (2%)
SUGGESTED ANSWER:
Under the Margin Trading Rule, no registered broker or dealer, or member of an
exchange shall extend credit on any security an amount greater than whichever is
higher of:
a)
65 per cent of the current market price of the security, or
b)
100 per cent of the lowest market price of the security during the preceding
36 calendar months, but not more than 75 per cent of the current market price
(Section 48, Securities Regulation Code).
The purpose of the Margin Trading Rule is to prevent excessive use of credit for the
purchase of securities. It is a counter to a brokers desire to generate more sales by
encouraging clients to buy securities on credit (Carolina Industries Inc. v. CMS
Stock Brokerage, Inc., 97 SCRA 734 [1980]).
CRIMINAL LAW
PART I
I
[a]
Amado, convicted of rape but granted an absolute pardon by the

President, and one year thereafter, convicted of homicide, is a
recidivist.
SUGGESTED ANSWER:
True. Rape is now a crime against persons and, like the crime of homicide, is
embraced in the same title of the Revised Penal Code under which Amado had been
previously convicted by final judgment. The absolute pardon granted him for rape,
only excused him from serving the sentence for rape but did not erase the effects of
the conviction therefore unless expressly remitted by the pardon.
[b]
The creditor who resorts to forced labor of a child under the pretext of
reimbursing himself for the debt incurred by the childs father
commits the crime of slavery.
SUGGESTED ANSWER:
False. The proper offense is exploitation of child labour (Art. 273, RPC).
Exploitation of child labour is committed by a person, who under the pretext of
reimbursing himself of a debt incurred by an ascendant, guardian or person
entrusted with the custody of a minor, shall against the minors will, retain him in
his services.
[c]
The use of an unlicensed firearm in homicide is considered a generic

aggravating circumstance which can be offset by an ordinary
mitigating circumstance.
SUGGESTED ANSWER:
False. Offsetting may not take place because the use of an unlicensed
firearm in homicide or murder is a specific aggravating circumstance provided for
by Rep. Ac No. 8294. It is not one of the generic aggravating circumstances under
Art. 14 of the Revised Penal Code (People v. Avecilla, 351 SCRA 635[2001])
[d]
A person who, on the occasion of a robbery, kills a bystander by

accident is liable for two separate crimes: robbery and reckless
imprudence resulting in homicide.
SUGGESTED ANSWER:
False. Only one crime of robbery with homicide is constituted because the
Revised Penal Code punishes the crimes as only one indivisible offense when a
killing, whether intentional or accidental, was committed by reason or on occasion

of a robbery (Art. 294[1] RPC; People v. Mabasa, 65 Phil. 568 [1938])
[e]
A policeman who, without a judicial order, enters a private house over

the owners opposition is guilty of trespass to dwelling.
SUGGESTED ANSWER:
False. The crime committed by the policeman in this case is violation of
domicile because the official duties of a policeman carry with it an authority to
make searches and seizure upon judicial order. He is therefore acting under colour
of his official authority (Art. 128, RPC).
II
Antero Makabayan was convicted of the crime of Rebellion. While serving sentence,
he escaped from jail. Captured, he was charged with, and convicted of, Evasion of
Service of Sentence. Thereafter, the President of the Philippines issued an amnesty
proclamation for the offense of Rebellion. Antero applied for and was granted the
benefit of the amnesty proclamation.
Antero then filed a petition for habeas corpus, praying for his immediate release
from confinement. He claims that the amnesty extends to the offense of Evasion of
Service of Sentence. As judge, will you grant the petition? Discuss fully. (4%)
SUGGESTED ANSWER:
Yes, I will grant the petition because the sentence that was evaded
proceeded from the crime of rebellion which has been obliterated by the grant of
amnesty to the offender (Art. 89[3] RPC).
Since the amnesty erased the criminal complexion of the act committed by
the offender as a crime of rebellion and rendered such act as though innocent, the
sentence lost its legal basis. The purported evasion thereof cannot subsist (People
v. Patriarca, 341 SCRA 464[2000]).
Amnesty obliterates, not only the basis of conviction, but also the legal
effects thereof.
III
Rigoberto gate-crashed the 71st birthday party of Judge Lorenzo. Armed with a
piece of wood commonly known as a dos por dos, Rigoberto hit Judge Lorenzo on
the back causing the latters hospitalization for 30 days. Upon investigation, it
appeared that Rigoberto had a grudge against Judge Lorenzo who two years earlier
had cited Rigoberto in contempt and ordered his imprisonment for 3 days.
[a]
Is Rigoberto guilty of Direct Assault? Why or why not?
SUGGESTED ANSWER:
No. Rigoberto is not guilty of Direct Assault because Judge Lorenzo has ceased to
be a judged when he was attacked. He has retired (71 years old) from his position
as person in authority when he was attacked. Hence, the attack against him
cannot be regarded as against a person in authority anymore.
[b]
Would your answer be the same if the reason for the attack was that
when Judge Lorenzo was still a practicing lawyer ten years ago, he
prosecuted Rigoberto and succeeded in sending him to jail for one
year? Explain your answer.
SUGGESTED ANSWER:
Yes. Rigoberto is guilty of Direct Assault because the employment of violence
was by reason of an actual performance of duty by the offended party acting as a
practicing lawyer. Lawyers are considered persons in authority by virtue of Batas
Pambansa Blg. 873 which states that lawyers in the actual performance of their
professional duties or on occasion of such performance shall be deemed persons in
authority. But the crime having been committed 10 years ago may have already
prescribed because it is punishable by a correctional penalty.
IV
Charlie hated his classmate, Brad, because the latter was assiduously courting
Lily, Charlies girlfriend. Charlie went to a veterinarian and asked for some poison
on the pretext that it would be used to kill a very sick, old dog. Actually Charlie
intended to use the poison on Brad.
The veterinarian mistakenly gave Charlie a non-toxic powder which, when mixed
with Brads food, did not kill Brad.
[a]
Did Charlie commit any crime? If so, what and why? If not, why not?
SUGGESTED ANSWER:
Charlie committed an impossible crime of murder. His act of mixing the nontoxic powder with Brads food, done with intent to kill, would have constituted
murder which is a crime against persons, had it not been for the employment of
means which, unknown to him, were ineffectual (Art 4, par 2 RPC)
[b]
Would your answer be the same if Brad proved to be allergic to the

powder and after ingesting it with his food, fell ill and was hospitalized
for ten (10) days?
SUGGESTED ANSWER:
No, the answer would not be same. Charlie would be criminally liable for less
serious physical injuries because his act of mixing the powder with brads food was
done with felonious intent and was the proximate cause of Brads illness for 10
days. It cannot constitute attempted murder, although done with intent to kill,
because the means employed were inherently ineffectual to cause death and the
crime committed must be directly linked to the means employed, not to the intent.
Liability for an impossible crime can only arise from a consummated act.
V
Ponciano borrowed Rubens gun, saying that he would use it to kill Fredie. Because
Ruben also resented Freddie, he readily lent his gun, but told Ponciano: O,
pagkabaril mo kay Freddie, isauli mo kaagad ha. Later, Ponciano killed Freddie,
but used a knife because he did not want Freddies neighbours to hear the
gunshot.
[a]
What, if any, is the liability of Ruben? Explain (3%)
SUGGESTED ANSWER:
Rubens liability is that of an accomplice only because he merely cooperated in
Poncianos determination to kill Fredie. Such cooperation is not indispensable to
the killing, as in fact the killing was carried out without the use of Rubens gun.
Neither may Ruben be regarded as a co-conspirator since he was not a participant
in the decision-making of Ponciano to kill Freddiel he merely cooperated in carrying
out the criminal plan which was already in place (art 18,RPC)
ALTERNATIVE ANSWER:
Ruben cannot be held liable as an accomplice in the killing of Freddie because his
act of lending his gun to Ponciano did not have a relation between the acts done by
the latter to that attributed to Ruben. Even if Ruben did not lend his gun, Ponciano
would have consummated the act of killing Freddie. In other words, Rubens act is
lending his gun was not a necessary act to enable Ponciano to consummate the
crime.
[b]
Would your answer be the same if, instead of Freddie, it was Manuel,
a relative of Ruben, who was killed by Ponciano using Rubens gun?
Explain (3%)
No. The answer would not be the same because Ruben lent his gun purposely for
the killing of Freddie only, not for any other killing. Poncianos using Rubens gun
is killing a person other than Freddie is beyond Rubens criminal intent and willing
involvement. Only Ponciano will answer for the crime against Manuel.
It has been ruled that when the owner of the gun knew that it would be used to kill
a particular person, but the offender used it to kill a particular person, the owner of
the gun is not an accomplice as to the killing of the other person. While there was
community of design to kill Freddie between Ponciano and Ruben, there was none
with respect to the killing of Manuel.
Alternative Answer:
Yes. The answer would be the same because Ruben lent his gun to Ponciano with
knowledge that it would be used in killing a person, thus with knowledge that the
gun would be used to commit a crime. It is of no moment who was killed, so long as
Ruben is aware when he lent the gun that it would be used to commit a crime.
VI
Baldo killed Conrad in a dark corner, at midnight, on January 2, 1960. Dominador
witnessed the entire incident, but he was so scared to tell the authorities about it.
On January 2, 1970, Dominador, bothered by his conscience, reported the matter
to the police. After investigation, the police finally arrested Baldo on January 6,
1980. Charged in court, Baldo claims that the crime he committed had already
prescribed.
Is Baldos contention correct? Explain (3%)
SUGGESTED ANSWER:
No, Baldos contention is not correct because the crime committed has not yet
prescribed. The prescriptive period of the crime committed commence only after it
was reported to the police on January2, 1970, not on the date it was clandestinely
committed on January 2, 1960. Under the discover rule, which governs when a
crime is not publicly committed, the prescriptive period of a crime commences to
run only from the day on which the crime is discovered by the offended party, the
authorities or their agents: in this case, from January 2, 1970 when it was made
known to the police authorities until January 6, 1980, when Baldo was arrested
and charged. The killing committed, whether it be homicide or murder, is
punishable by an afflictive penalty which prescribes in twenty years, whereas only
around ten years had lapsed from January 2, 1970 (when the authorities
discovered the commission of the crime) to January 6, 1970 (when the accused was
charged in court).
VII
Charina, Clerk of Court of an RTC Branch, promised the plaintiff in a case pending
before the court that she would convince the Presiding Judge to decide the case in
plaintiffs favor. In consideration therefor, the plaintiff gave Charina P20,000,00.
Charina was charged with violation of Section 3 (b) of RA 3018, prohibiting any
public officer from directly or indirectly requesting or receiving any gift, present,
percentage, or benefit in connection with any contact or transaction x x x wherein
the public officer, in his official capacity, has to intervene under the law.
While the case was being tried, the Ombudsman filed another information against
Charina for Indirect Bribery under the Revised Penal Code. Charina demurred to
the second information, claiming that she can no longer be charged under the RPC
having been charged for the same act under RA 3019.
Is Charina correct? Explain (3%)
SUGGESTED ANSWER:
No, Charina is not correct, although the charge for violation of RA 3019 and
the charge for Indirect Bribery [Art 211, RPC) arose from the same act, the
elements of the violation charged under RA 3019 are not the same as the felony
charged for Indirect Bribery under the RPC (Mejia v. Pamaran, 160 SCRA 457
[1998]). Hence, the crime charged are separate and distinct from each other, with
different penalties. The two charges do not constitute a ground for a motion to
dismiss or motion to quash, as there is no jeopardy against the accused.
VIII
While Alfredo, Draulio, Ciraico, and Domingo were robbing a bank, policemen
arrived. A firefight ensued between the bank robbers and the responding policemen
and one of the policemen was killed.
[a]
What crime or crimes, if any, had been committed? Explain. (3%)
SUGGESTED ANSWER:
The crimes committed are Robbery with homicide, a single indivisible offense, and
Direct Assault with Multiple Attempted Homicide, a complex crime (Art 48, 148 and
249 RPC; People v. Gayrama, 60 Phil 796 [1943]).
Robbery with Homicide was committed because one of the responding policemen
was killed by reason or on occasion of the robbery being committed. The complex
crime of Direct Assault with Multiple Attempted Homicide was committed in respect
of the offenders firing guns at the responding policemen who are agents of
authority performing their duty when fired at to frustrate such performance.
[b]
Suppose it was Alfredo who was killed by the responding policemen,

what charges can be filed against Braulio, Ciriaco and Domingo?
Explain. (2%)
SUGGESTED ANSWER:
The crime of which Braulio, Ciriaco and Domingo can be charged is Robbery with
Homicide (Art 294 [1]), RPC) because the killing resulted by reason or on the
occasion of the robbery. It is of no moment that the person killed is one of the
robbers. A killing by reason or on the occasion of the robbery, whether deliberate or
accidental, will be a component of the crime of Robbery with Homicide, a single
indivisible offense, as long as it is intimately connected to the robbery.
[c]
Suppose in the course of the robbery, before the policemen arrived,

Braulio shot and killed Alfredo following a heated disagreement on
who should carry the money bags, what would be the criminal liability
of can be filed against Braulio, Ciriaco and Domingo? Explain. (2%)
SUGGESTED ANSWER:
Braulio shall be liable for Robbery with Homicide (Art 294 [1]), RPC) for killing
Alfredo, since the killing was by reason of the robbery. Ciriaco and Domingo having
conspired on ly in the commission of the robbery, should incur liability only for the
crime conspired upon the robbery, unless they were with Braulio during the
killing and could have prevented the same, but they did not, in which case they
shall also be liable for Robbery with Homicide.
It is of no moment that the person killed is one of the robbers and he was killed
during the robbery (People v. Barot, 89 SCRA 16 [1979]).
IX
Virgilio, armed with a gun, stopped a van along a major thoroughfare in Manila,
pointed the gun at the driver and shouted: Tigil! Kidnap ito!
Terrified, the driver, Juanito, stopped the van and allowed Virgilio to board. Inside
the van were Jeremias, a 6 year old child, son of a multi-millionaire, and Daday,
the childs nanny. Virgilio told Juanito to drive to a deserted place, and there,
ordered the driver to alight. Before Juanito was allowed to go, Virgilio instructed
him to tell Jeremias parents that unless the give a ransom of P10 million within
two (2) days, Jeremias would be beheaded. Daday was told to remain in the van
and take care of Jeremias until the ransom is paid. Virgilio then drove the van to
his safehouse.
What crime or crimes, if any, did Virgilio commit? Explain (2%)
SUGGESTED ANSWER:
The crime committed against Jeremias, the 6 year old child, is kidnapping and
serious illegal detention under Art. 267 (4), RPC. The evident criminal intent of the
offender, Virgilio, is to lock up the child to demand ransom. Whether or not the
ransom was eventually obtained will not affect the crime committed because the
demand for ransom is not an element of the crime; it only qualifies the penalty to
death but the imposition of this penalty is now prohibited by RA 9346.
As to Daday, the nanny of the child who was told to remain in the van and take
care of the child until the ransom is paid, the crime committed is Serious Illegal
Detention because the offended party deprived of liberty is a female (Art. 267, par.
4, RPC).
As to Juanito, the driver of the van who was seriously intimidated with a gun
pointed at him and directed to stop the van and allow the gun-man to board the
same, and thereafter to drive to a deserted place, the crime committed by Virgilio is
Grave Coercion (Art. 286, RPC) and Slight Illegal Detention (Art. 268, RPC) for
holding the driver before he was allowed to go.
X
To secure a release of his brother Willy, a detention prisoner, and his cousin
Vincent, who is serving sentence for homicide, Chito asked the RTC Branch Clerk
of Court to issue an Order which would allow the 2 prisoners to be brought out of
jail. At first, the Clerk refused, but when Chito gave her P50,000, she consented.
She then prepared an Order requiring the appearance in Court of Willy and
Vincent, ostensibly as witnesses in a pending case. She forged the judges
signature, and delivered the order to the jail warden who, in turn, allowed Willy
and Vincent to go out of jail in the company of an armed escort, Edwin. Chito also
gave Edwin P50,000 to leave the two inmates unguarded for 3 minutes and provide
them with an opportunity to escape. Thus, Willy and Vincent were able to escape.
What crime or crimes, if any, had been committed by Chito, Willy, Vincent, the
Branch clerk of court, Edwin, and the jail warden? Explain your answer. (5%)
SUGGESTED ANSWER:
The crimes committed in this case are as follows:
a.
Chito committed the crimes of
1.
Delivery of prisoners from Jail (Art. 156, RPC) for working out the escape of
prisoners Willy and Vincent;
2.
Two counts of Corruption of Public Officials (Art. 212, RPC), and
3.
Falsification of public documents, as a principal by inducement (Art. 172 (1)
RPC).
b.
Willy committed the crime of Delivery of Prisoners from Jail (Art. 156, RPC)
as a principal by indispensable cooperation if he was aware of the criminal plan of
Chito to have them escape from prison and he did escape pursuant to such
criminal plan; otherwise, he would not be liable for said crime if he escaped
pursuant to human instinct only.
c.
Vincent, being a prisoner serving sentence by final judgment, committed the
crime of Evasion of Service of Sentence (Art. 157, RPC) for escaping during the term
of his imprisonment.
d.
The
Branch
Clerk
of
Court
committed
the
crimes
of:
1. Direct bribery (Art. 210, RPC) for accepting the P50,000 in consideration of the
order she issued to enable the prisoners to get out of jail
2. Falsification of Public Document for forging the judges signature on Said Order
(Art. 171, RPC)
3. Delivery of Prisoners from Jail (Art. 156, RPC), as a co-principal of Chito by

indispensable cooperation for making the false Order and forging the judges
signature thereon, to enable the prisoners to get out of jail;
4. Evasion of Service of Sentence (Art. 157, RPC); as a co-principal of Vincent by
indispensable cooperation for making the false Order that enabled Vincent to evade
the service of sentence;
e.
Edwin, the jail guard who escorted the prisoners in getting out of jail,
committed the crimes of
1.
Infidelity in the custody of prisoners specifically conniving with or
consenting to Evasion for leaving unguarded the prisoners escorted by him and
provide them an opportunity to escape (Art. 223, RPC)
2.
Direct Bribery for receiving the P50,000 as consideration for leaving the
prisoners unguarded and allowing them the opportunity to escape (Art. 210, RPC).
f.
The jail warden did not commit not incur a crime there being no showing
that he was aware of what his subordinates had done nor of any negligence on his
part that would amount to infidelity in the custody of prisoners.
PART II
XI
is false. Explain your answer in not more than two sentences.
[a]
Life imprisonment is a penalty more favorable to the convict than

reclusion perpetua.
SUGGESTED ANSWER:
False. Life imprisonment is unfavorable to a convict because the penalty is
without a fixed duration, unlike the penalty of reclusion perpetua, which has
a fixed duration of 40 years and the convict may be eligible for pardon after
30 years of imprisonment (People v. Penillos, 205 SCRA 546 [1992]).
[b]
Voluntary surrender is a mitigating circumstance in all acts and

omissions punishable under the Revised Penal Code.
SUGGESTED ANSWER:
False. Voluntary surrender may not be appreciated in cases of criminal negligence
under Art. 365 since in such cases, the courts are authorized to impose a penalty
without considering Art. 62 regarding mitigating and aggravating circumstances.
[c]
In a prosecution for fencing under PD 1612, it is a complete defense

for the accused to prove that he had no knowledge that the goods or
articles found in his possession had been the subject of robbery.
SUGGESTED ANSWER:
False. Fencing is committed if the accused should have known that the goods or
articles had been the subject of theft or robbery (PD 1612, Sec. 2[a]). Mere
possession of the stolen goods gives rise to the prima facie presumption of fencing.
[d]
In the crime if libel, truth is an absolute defense.
SUGGESTED ANSWER:
False. Article 361 of the RPC provides that proof of truth shall be admissible in libel
cases only if the same imputes a crime or is made against a public officer with
respect to the facts related to the discharge of their official duties, and moreover
must have been published with good motives and for justifiable ends. Hence,
truth as a defense, on its own, is not enough.
[e]
For a person who transacts an instrument representing the proceeds

of a covered unlawful activity to be liable under the Anti-Money
Laundering Act (RA 9160, as amended), it must be shown that he has
knowledge of the identities of the culprits involved in the commission
of the predicate crime.
SUGGESTED ANSWER:
False. There is nothing in the law which requires that the accused must know the
identities of the culprits involved in the commission of the predicate crimes. To
establish liability under RA 9160, it is sufficient that proceeds of an unlawful
activity are transacted, making them appear to have originated from legitimate
sources.
XII
[a]
In a conviction for homicide, the trial court appreciated two mitigating

circumstances and one aggravating circumstance. Homicide under
Article 249 of the Revised Penal Code is punishable by reclusion
temporal, an imprisonment term of 12 years and one day to 20 years.
Applying the indeterminate Sentence Law, determine the appropriate
penalty to be imposed.
SUGGESTED ANSWER:
Under the Indeterminate Sentence Law, the minimum of the sentence shall be
anywhere within the range of six years and one day to 12 years imprisonment while
the maximum of the sentence shall be anywhere within the range of Reclusion
Temporal minimum i.e., not lower than 12 years and one day to no more than 14
years and eight months.
[b]
Will your answer be the same if it is a conviction for illegal possession

of drugs under RA 9165 (Dangerous Drugs Act of 2002), the
prescribed penalty of which is also imprisonment for a term of 12

years and one day to twenty years? Why or why not?
SUGGESTED ANSWER:
No. My answer will not be the same because violations of RA 9165 are mala
prohibita in which mitigating and aggravating circumstances are not appreciated.
Although in People v. Simon (234 SCRA 555[1994]), it was held that Art. 64 can be
applied if the special law adopted the nomenclature of penalties provided under the
RPC, such pronouncement cannot be applied in the instant case because the
penalties for illegal possession of drugs under RA 9165 do not follow the technical
nomenclature of penalties in the RPC and thus, cannot be divided into periods.
Hence, the existence of mitigating and aggravating circumstances cannot be
appreciated.
XIII
XIV
XV
Joe was 17 years old when he committed homicide in 2005. The crime is
punishable by reclusion temporal. After two years in hiding, he was arrested and
appropriately charged in May 2007. Since RA 9344 (Juvenile Justice and Welfare
Act of 2006) was already in effect, Joe moved to avail of the process of intervention
or diversion.
[a]
What is intervention or diversion? Is Joe entitled to intervention or

diversion? Explain. (3%)
SUGGESTED ANSWER:
The two terms are different.
"Intervention" refers to a series of activities which are designed to address issues
that caused the child to commit an offense. It may take the form of an
individualized treatment program which may include counseling, skills training,
education and other activities that will enhance his/her psychological, mental and
psycho-social well-being. This is available to a child 15 years old or less at the time
of the commission of the crime or although over 15 but below 18 years old at the
time of commission of the crime, the child acted without discernment.
"Diversion" refers to an alternative, child-appropriate process of determining the

responsibility and treatment of a child in conflict with the law on the basis of
his/her social, cultural, economic, psychological or educational background
without resorting to formal court proceedings. This process governs when the child
is over 15 years old but below 18 at the time of the commission of the crime and he
acted with discernment.
Yes. Joe is entitled to diversion. Being only 17 years old at the time he committed
the crime of homicide, he is treated as a child in conflict with the law under RA
9344.
[b]
Suppose Joe's motion for intervention or diversion was denied, and he

was convicted two (2) years later when Joe was already 21 years old,
should the judge apply the suspension of sentence? Explain. (2%)
SUGGESTED ANSWER:
No. The judge should not suspend sentence anymore because Joe was already 21
years old. Suspension of sentence is availing under RA 9344 only until a child
reaches the maximum age of twenty-one (21) years.
[c]
Suppose Joe was convicted of attempted murder with a special

aggravating circumstance and was denied suspension of sentence,
would he be elegible for probation under Presidential Decree (PD) 968,
considering that the death penalty is imposable for the consummated
felony? Explain. (2%)
SUGGESTED ANSWER:
Yes. He would be eligible for probation because the penalty imposable on Joe will
not exceed 6 years imprisonment.
Even if it would be considered that the crime committed was punishable by death,
the penalty as far as Joe is concerned can only be reclusion perpetua because RA
9344 forbids the imposition of the capital punishment upon offenders thereunder.
The murder being attempted only, the prescribed penalty is two degree lower than
reclusion perpetual; hence, prision mayor. Because Joe was 17 years old when he
committed the crime, the penalty of prision mayor should be lowered further by one
degree because his minority is a privileged mitigating circumstance; hence, prision
correccional or imprisonment within the range of six months and 1 day to
(unreadable).
XVI
Roger and Jessie, Municipal Mayor and Treasurer, respectively, of San Rafael,
Leyte, caused the disbursement of public funds allocated for their local
development programs for 2008. Records show that the amount of P2-million was
purportedly used as financial assistance for a rice production livelihood project.
Upon investigation, however, it was found that Roger and Jessie falsified the
disbursement vouchers and supporting documents in order to make it appear that
qualified recipients who, in fact, are non-existent individuals, received the money.
Roger and Jessie are charged with malversation through falsification and violation
of Section 3 (e) of R.A. 3019 for causing undue injury to the government. Discuss
the propriety of the charges filed against Roger and Jessie. Explain. (4%)
SUGGESTED ANSWER:
The charge of malversation through fasciation is not correct because the
falsifications of several documents were not necessary means to obtain the money
that were malversed. The falsifications were committed to cover up or hide the
malversation and therefore, should be separately treated from malversation. The
given facts state that Roger and Jessie falsified disbursement vouchers and
supporting documents "in order to make it appear" that qualified recipients
received the money. Art. 48, RPC on complex crimes is not applicable.
They should be charged of violation of Section 3(e) of Rep. Act 3019 for the breach
of public trust and undue injury caused to the Government, The violation is a
crime malum prohibitum.
XVII
Wenceslao and Loretta were staying in the same boarding house, occupying
different rooms. One late evening, when everyone in the house was asleep,
Wenceslao entered Lorettas room with the use of a picklock. Then, with force and
violence, Wenceslao ravished Loretta. After he had satisfied his lust, Wenceslao
stabbed Loretta to death and, before leaving the room, took her jewelry.
[a]
What crime or crimes, if any, did Wenceslao commit? Explain. (4%)
SUGGESTED ANSWER:
Wenceslao committed the following crimes: (1) the special complex
crime of rape with homicide (2) theft and (3) unlawful possession of picklocks
and similar tools under Art. 304, RPC. His act of having carnal knowledge of
Loretta against her will and with the use of force and violence constituted
rape, plus the killing of Loretta by reason or on the occasion of the rape, gave
rise to the special complex crime of rape with homicide. Since the taking of
the jewelry was an afterthought as it was done only when he was about to
leave the room and when Loretta was already dead, the same constitutes
theft. His possession and use of the picklock without lawful cause is by
itself punishable under Art. 304, RPC.
[b]
Discuss the applicability of the relevant aggravating circumstances of

dwelling, nocturnity and the use of the picklock to enter the room of
the victim. (3%)
SUGGESTED ANSWER:
Dwelling is aggravating because the crimes were committed in the privacy of

Lorettas room which in law is considered as her dwelling. It is well settled that
dwelling includes a room in a boarding house being occupied by the offended
party where she enjoys privacy, peace of mind and sanctity of an abode.
Nocturnity or nighttime is also aggravating because although it was not purposely
or especially sought for by Wenceslao, nighttime was obviously taken advantaged of
by him in committing the other crimes. Under the objective test, nocturnity is
aggravating when taken advantaged of by the offender during the commission of
the crime thus facilitating the same. The use of picklock to enter the room of the
victim is not an aggravating circumstance under Art. 14 of the Code but punished
as a crime by itself where the offender has no lawful cause for possessing it. The
use of picklocks is equivalent to force upon things in robbery with force upon
things.
[c]
Would your answer to [a] be the same if, despite the serious stab
wounds she sustained, Loretta survived? Explain. (3%)
SUGGESTED ANSWER:
No, the answer will be different. In that case, the crimes committed would be four
separate crimes of (1) rape (2) frustrated rape (3) theft and (4) unlawful possession
and use of picklocks under Art. 304, RPC. The special complex crime of rape and
the killing are consummated; when one or both of them are not consummated; they
are to be charged and punished separately. In any event, the possession of the
picklock without lawful cause, more so its use in an unlawful entry is punished
as a crime by itself.
XVIII
At the Maligaya Disco Club, Leoncio and Evelyn were intimately dancing a
very seductive dance number. While gyrating with their bodies, Leoncio dipped his
private parts in Evelyns buttocks. Incensed, Evelyn protested, but Leoncio
continued and tightly embraced her.
[a]
What crime or crimes, if any, did Leoncio commit? Explain. (3%)
SUGGESTED ANSWER:
Leoncio committed the crime of unjust vexation only because the act was
done in the course of dancing. The act of dipping his private parts in Evelyns
buttocks during a very seductive dance, although offensive to Evelyn, may be
viewed as part of a dirty dancing. Lewd intent cannot simply be presumed
from the act of dirty dancing. The fact that the act was perpetrated in a
public place and with an audience, negates lewd designs or lascivious intent,
which is essential in the crime of acts of lasciviousness.
[b]
Would your answer be the same if, even after the music had stopped,
Leoncio continued to dance dirty, rubbing his private parts on
Evelyns buttocks? Explain. (3%)
SUGGESTED ANSWER:
The crime would then be acts of lasciviousness. That the music for dancing
had already stopped, puts an end to any pretense of dancing by Leoncio. His
continued dirty acts absent the dancing as there was no music anymore is
patently lewd and lasciviousness. More so, Evelyn already protested Leoncios
lewd acts in the course of dancing. So where the dance ended, Leoncios
continued dirty acts cannot be veiled as still part of dancing.
XIX
Delmo learned that his enemy, Oscar, was confined at the Intensive Care Unit (ICU)
of the Philippine Medical Center. Intending to kill Oscar, Delmo disguised himself
as a nurse, entered the ICU, and saw a man lying on the hospital bed with several
life-saving tubes attached to the body. Delmo disconnected the tubes and left.
Later, the resident physician doing his rounds entered the ICU and, seeing the
disconnected tubes, replaced them. The patient survived. It turned out that the
patient was Larry, as Oscar had been discharged from the hospital earlier.
Delmo was charged with frustrated murder, qualified by evident premeditation and
treachery as aggravating circumstances. Discuss the propriety of the charge. (4%)
SUGGESTED ANSWER:
Delmo was correctly charged with the crime of frustrated murder qualified by
treachery not evident premeditation because the victim was different from
the one premeditated against. Delmo has performed all the acts of execution
that would produce the death of the victim but for reasons independent of the
will of the perpetrator, the death of the victim was not accomplished.
Treachery qualifies the crime, because the means, manner and method of
committing the intended killing were consciously adopted to insure its
execution without risk that may arise from the defense the victim may make.
Evident premeditation is absorbed in the treachery.
REMEDIAL LAW
PART I
I
[a]
The Vallejo standard refers to jurisprudential norms considered by the

court in assessing the probative value of DNA evidence.
SUGGESTED ANSWER:
TRUE. In People v. Vallejo, 382 SCRA 192 (2002), it was held that in assessing
the probative value of DNA evidence, courts should consider, among other
things, the following data: how the samples were collected, how they were
handled, the possibility of contamination of the samples, the procedure
followed in analyzing the samples, whether the proper standards and
procedures were followed in conducting the tests, and the qualification of the
analyst who conducted the tests.
[b]
The One-Day Examination of Witness Rule abbreviates court

proceedings by having a witness fully examined in only one day
during trial.
SUGGESTED ANSWER:
TRUE. Par 5(i) of Supreme Court A.M. No. 03-1-09-SC requires that a witness
has to be fully examined in one (1) day only. This rule shall be strictly
adhered to subject to the courts discretion during trial on whether or not to
extend the direct and/or cross-examination for justifiable reasons. On the last
hearing day allocated for each party, he is required to make his formal offer of
evidence after the presentation of his last witness and the opposing party is
required to immediately interpose his objection thereto. Thereafter, the judge
shall make the ruling on the offer of evidence in open court. However, the
judge has the discretion to allow the offer of evidence in writing in
conformity with Section 35, Rule 132.
ALTERNATIVE ANSWER:
FALSE. The rule is not absolute: it will still allow the trail judge the discretion
whether to extend the direct and/or cross examination for justifiable reasons
or not. The exercise of this discretion may still result in wrangling as to the
proper exercise of the trial courts discretion, which can delay the
proceedings.
[c]
A suit for injunction is an action in rem.
SUGGESTED ANSWER:
FALSE. A suit for injunction is an action in personam. In the early case of
Auyong Hian v. Court of Tax Appeals (59 SCRA 110 [1974]], it was held that a
restraining order, like an injunction, operates upon a person. It is granted in

the exercise of equity jurisdiction and has no in rem effect to invalidate an
act done in contempt of an order of the court except where by statutory
authorization the decree is so framed as to act in rem on property. (Air
Materiel Wing Savings and Loan Association, Inc. v. Manay, 535 SCRA 356
[2007]).
[d]
Under the doctrine of adoptive admission, a third partys statement

becomes the admission of the party embracing or espousing it.
SUGGESTED ANSWER:
TRUE. The effect or consequence of the admission will bind also the party
who adopted or espoused the same, as applied in Estrada v. Desierto, 356
SCRA 108 [2001]. An adoptive admission is a partys reaction to a statement
or action by another person when it is reasonable to treat the partys reaction
as an admission of something stated or implied by the other person.
[e]
Summons may be served by mail.
SUGGESTED ANSWER:
FALSE. Rule 14 of the Rules of Court, on Summons, provide only for serving
Summons (a) to the defendant in person; or (b) if this is not possible within a
reasonable time, then by substituted service in accordance with Sec. 7
thereof; or (c) if any of the foregoing two ways is not possible, then with leave
of court, by publication in accordance with the same Rule.
ALTERNATIVE ANSWER:
TRUE, but only in extraterritorial service under Sec. 15 of the Rule on
Summons where service may be effected in any other manner the court may
deem sufficient.
XXXXX ENTERIA
XXXX ESCALONA
VI
Arrested in a buy-bust operation, Edmond was brought to the police station where
he was informed of his constitutional rights. During the investigation, Edmond
refused to give any statement. However, the arresting officer asked Edmond to
acknowledge in writing that six (6) sachets of shabu were confiscated from him.
Edmond consented and also signed a receipt for the amount of P3,000.00, allegedly
representing the purchase price of the shabu. At the trial, the arresting officer
testified and identified the documents executed and signed by Edmond. Edmonds
lawyer did not object to the testimony. After the presentation of the testimonial
evidence, the prosecutor made a formal offer of evidence which included the
documents signed by Edmond.
Edmonds lawyer objected to the admissibility of the documents for being the fruit
of the poisonous tree. Resolve the objection with reasons. (3%)
SUGGESTED ANSWER:
The objection to the admissibility of the documents which the arresting officer
asked Edmond to sign without the benefit of counsel, is well-taken. Said
documents having been signed by the accused while under custodial investigation,
imply an admission without the benefit of counsel, that the shabu came from him
and that the P3,000.00 was received by him pursuant to the illegal selling of the
drugs. Thus, it was obtained by the arresting officer in clear violation of Sec. 12(3),
Art. III of the 1987 Constitution, particularly the right to be assisted by counsel
during custodial investigation.
Moreover, the objection to the admissibility of the evidence was timely made, i.e.,
when the same is formally offered.
VII
Cresencio sued Dioscoro for collection of a sum of money. During the trial, but
after the presentation of the plaintiffs evidence, Dioscoro died. Atty. Cruz,
Dioscoros counsel, then filed a motion to dismiss the action on the ground of his
clients death. The court denied the motion to dismiss and, instead, directed
counsel to furnish the court with names and addresses of Dioscoros heirs and
ordered that the designated administrator of Dioscoros estate be substituted as
representative party.
After trial, the court rendered judgment in favor of Cresencio. When the decision
had become final and executory, Cresencio moved for the issuance of a writ of
execution against Dioscoros estate to enforce his judgment claim. The court issued
the writ of execution. Was the courts issuance of the writ of execution proper?
Explain. (2%)
SUGGESTED ANSWER:
No, the trial courts issuing the writ of execution is not proper and in excess of
jurisdiction, since the judgment obligor is already dead when the writ was issued.
The judgment for money may only be enforced against the estate of the deceased in
the probate proceedings, by way of a claim filed with the probate court in
accordance with Rule 86 of the Rules of Court.
Cresencio should enforce that judgment in his favor in the settlement proceedings
of the estate of Dioscoro as a money claim in accordance with Rule 86 or Rule 88
as the case may be.
VIII
On July 15, 2009, Atty. Manananggol was served copies of numerous unfavorable
judgments and orders. On July 29, 2009, he filed motions for reconsideration
which were denied. He received the notices of denial of the motions for
reconsideration on October 2, 2009, a Friday. He immediately informed his clients,
who, in turn, uniformly instructed him to appeal. How, when and where should he
pursue the appropriate remedy for each of the following: (10%)
[a]
Judgment of a Municipal Trial Court (MTC) pursuant to its delegated

jurisdiction dismissing his clients application for land registration?
SUGGESTED ANSWER:
By notice of appeal, within 15 days from notice of judgment or final order
appealed from, to the Court of Appeals;
[b]
Judgment of the Regional Trial Court (RTC) denying his clients

petition for a Writ of Habeas Data?
SUGGESTED ANSWER:
By verified petition for review on certiorari under Rule 45, with the
modification that appellant may raise questions of fact or law or both, within 5
work days from date of notice of the judgment or final order to the Supreme Court
(Sec. 19, A.M. No. 08-1-16SC);
[c]
Order of a Family Court denying his clients petition for Habeas

Corpus in relation to custody of a minor child?
SUGGESTED ANSWER:
By notice of appeal, within 48 hours from notice of judgment or final order to
the Court of Appeals (Sec. 14, R.A. No. 8369 in relation to Sec. 3, Rule 41, Rules of
Court).
[d]
Order of the RTC denying his clients Petition for Certiorari

questioning the Metropolitan Trial Courts (MeTCs) denial of a motion
to suspend criminal proceedings?
SUGGESTED ANSWER:
By notice of appeal, within 15 days from notice of the final Order, to the
Court of Appeals (Magestrado v. People, 527 SCRA 125 [2007]).
[e]
Judgment of the First Division of the Court of Tax Appeals (CTA)

affirming the RTC decision convicting his client for violation of the
National Internal Revenue Code?
SUGGESTED ANSWER:
By petition for review filed with the Court of Tax Appeals (CTA) en banc,
within 30 days from receipt of the decision or ruling in question (Sec. 9[b], Rule 9,
rev. Rules of CTA).
IX
Modesto sued Ernesto for a sum of money, claiming that the latter owed him P1million, evidenced by a promissory note, quoted and attached to the complaint. In
his answer with counterclaim, Ernesto alleged that Modesto coerced him into
signing the promissory note, but that it is Modesto who really owes him P1.5
million. Modesto filed an answer to Ernestos counterclaim admitting that he owed
Ernesto, but only in the amount of P0.5 million. At the pre-trial, Modesto marked
and identified Ernestos promissory note. He also marked and identified receipts
covering payments he made to Ernesto, to the extent of Po.5 million, which Ernesto
did not dispute. After pre-trial, Modesto filed a motion for judgment on the
pleadings, while Ernesto filed a motion for summary judgment on his counterclaim.
Resolve the two motions with reasons. (5%)
SUGGESTED ANSWER:
Modestos motion for judgment on the pleadings should be denied. While it is
true that under the actionable document rule, Ernestos failure to deny under oath
the promissory note in his answer amounted to an implied admission of its
genuineness and due execution, his allegation in his answer that he was coerced
into signing the promissory note tendered an issue which should be tried. The
issue of coercion is not inconsistent with the due execution and genuineness of the
instrument. Thus, Ernestos failure to deny the genuineness of the promissory note
cannot be considered a waiver to raise the issue that he was coerced in signing the
same. Said claim of coercion may also be proved as an exception in the Parol
Evidence Rule.
On the other hand, Ernestos motion for summary judgment may be granted.
Modestos answer to Ernestos counterclaim- that he owed the latter a sum less
than what was claimed- amounted to an admission of a material fact and if the
amount thereof could summarily be proved by affidavits, depositions, etc.
ALTERNATIVE ANSWER:
Modestos motion for judgment on the pleading should be denied because there is
an issue of fact. While Ernesto did not specifically deny under oath the promissory
note attached to Modestos complaint as an actionable document,, such non denial
will not bar Ernestos evidence that Modesto coerced him into signing the
promissory note. Lack of consideration, as a defense, does not relate to the

genuineness and due execution of the promissory note.
Likewise, Ernestos motion for summary judgment should be denied because there
is an issue of fact- the alleged coercion- raised by Ernesto which he has yet to
prove in a trial on its merits. It is axiomatic that summary judgment is not proper
or valid when there is an issue of fact remaining which requires a hearing. And this
is so with respect to the coercion alleged by Ernesto as his defense, since coercion
is not capable of being established by documentary evidence.
X
Upon termination of the pre-trial, the judge dictated the pretrial order in the
presence of the parties and their counsel, reciting what had transpired and defining
three (3) issues to be tried.
[a]
If, immediately upon receipt of his copy of the pre-trial order,

plaintiffs counsel should move for its amendment to include a fourth
(4th) triable issue which he allegedly inadvertently failed to mention
when the judge dictated the order. Should the motion to amend be
granted? Reasons. (2%)
SUGGESTED ANSWER:
Depending on the merit of the issue sought to be brought in by the amendment,
the motion to amend may be granted upon due hearing. It is a policy of the Rules
that parties should be afforded reasonable opportunity to bring about a complete
determination of the controversy between them, consistent with the substantial
justice. With this end in view, the amendment before trial may be granted to
prevent manifest injustice. The matter is addressed to the sound and judicious
discretion of the trial court.
[b]
Suppose trial had already commenced and after the plaintiffs second
witness had testified, the defendants counsel moves for the
amendment of the pretrial order to include a fifth (5th) triable issue
vital to his clients defense. Should the motion be granted over the
objection of plaintiffs counsel? Reasons. (3%)
SUGGESTED ANSWER:
The motion may be denied since trial had already commenced and two witnesses
for the plaintiff had already testified. Courts are required to issue pre-trial Order
after the pre-trial conference has been terminated and before trial begins, precisely
because the reason for such Order is to define the course of the action during the
trail. Where trial had already commenced, more so the adverse party had already
presented witnesses, to allow an amendment would be unfair to the party who had
already presented his witnesses. The amendment would simply render nugatory the
reason for or purpose of the pre-trial Order.
Sec. 7 of Rule 18 on pre-trial in civil actions is explicit in allowing a modification of

the pre-trial Order before: trial begins to prevent manifest injustice.
XI
is false. Explain your answer in nit more than two (2) sentences. (5%)
[a]
The accused in a criminal case has the right to avail of the various
modes of discovery.
SUGGESTED ANSWER:
TRUE. The accused has the right to move for the production or inspection of
material evidence iun the possession of the prosecution. It authorizes the defense
to inspect, copy or photograph any evidence of the prosecution in its possession
after obtaining permission from the court(Rule 116, Sec. 10; Webb v. De Leon, 247
SCRA 652 [1995]).
[b]
The viatory right of a witness served with a subpoena ad

testificandum refers to his right not to comply with the subpoena.
SUGGESTED ANSWER:
FALSE. The viatory right of a witness, embodied in Sec. 10, Rule 21 of the Rules of
Civil Procedure, refers to his right not to be compelled to attend upon a subpoena,
by reason of the distance from the residence of the witness to the place where he is
to testify. It is available only in civil cases (People v. Montejo, 21 SCRA 722 [1965]).
[c]
In the exercise of its original jurisdiction, the Sandiganbayan may

grant petitions for the issuance ofd a writ of habeas corpus.
SUGGESTED ANSWER:
FALSE. The Sandiganbayan ,ay grant petitions for Habeas corpus only in aid of its
appellate jurisdiction (RA 7975, as amended by RA 8249), not in the exercise of
original jurisdiction.
[d]
An electronic document is the equivalent of an original document

under the Best Evidence Rule if it is a printout or output readable by
sight or other means, shown to reflect the data accurately.
SUGGESTED ANSWER:
TRUE. This statement is embodied in Sec. 1, Rule 4 of A.M. No. 01-7-01-SC, re:
Rules on Electronic Evidence.
[e]
The filing of a motion for reconsideration of the trial courts decision

results in the abandonment of a perfected appeal.
SUGGESTED ANSWER:
FALSE. The trial court has lost jurisdiction after perfection of the appeal and so it
can no longer entertain a motion for reconsideration.
ALTERNATIVE ANSWER:
FALSE, because the appeal may be perfected as to one party but not yet perfected
as to the other party who may still file a motion for reconsideration without
abandonment of his right of appeal even though the appeal of the case is perfected
already as to the other party.
PART II
XII
Mike was renting an apartment unit in the building owned by Jonathan. When
Mike failed to pay six months' rent, Jonathan filed an ejectment suit. The
Municipal Trial Court (MTC) rendered judgment in favor of Jonathan, who then
filed a motion for the issuance of a writ of execution. The MTC issued the writ.
[a]
How can Mike stay the execution of the MTC judgment? Explain. (2%)
SUGGESTED ANSWER:
Execution shall issue immediately upon motion unless Mike (a) perfects his appeal
to the RTC, (b) files a sufficient supersedeas bond to pay the rents, damages and
costs accruing up to the time of the judgment appealed from, and (c) deposits
monthly with the RTC during the pendency of the appeal the amount of rent due
from time to time (Rule 70, Sec. 19).
[b]
Mike appealed to the Regional Trial Court (RTC), which affirmed the
MTC decision. Mike then filed a petition for review with the Court of
Appeals (CA). The CA dismissed the petition on the ground that the
sheriff had already executed the MTC decision and had ejected Mike
from the premises, thus rendering the appeal moot and academic. Is
the CA correct? Reasons. (3%)
SUGGESTED ANSWER:
NO, the Court of Appeals is not correct. The dismissal of the appeal is wrong,
because the execution of the RTC jusgment is only in respect of the eviction of the
defendant from the leased premises. Such execution pending appeal has no effect
on the merits of the ejectment suit which still has to be resolved in the pending
appeal. Rule 70, Sec. 21 of the Rules provided that the RTC judgment against the
defendant shall be immediately executory, without prejudice to a further appeal
that may be taken therefrom (Uy v. Santiago, 336 SCRA 680 [2000]).
XIII
[a]
Continental Chemical Corporation (CCC) filed a complaint for a sum

of money against Barstow Trading Corporation (BTC) for the latter's
failure to pay for its purchases of industrial chemicals. In its answer,
BTC contended that it refused to pay because CCC misrepresented
that the products it sold belonged to a new line, when in fact they
were identical with CCC's existing products. To substantiate its
defense, BTC filed a motion to compel CCC to give a detailed list of the
products' ingredients and chemical components, relying on the right
to avail of the modes of discovery allowed under Rule 27. CCC
objected, invoking confidentiality of the information sought by BTC.
Resolve BTC's motion with reasons. (3%)

SUGGESTED ANSWER:
I will deny the motion. The ingredients and chemical components of CCCs
products are trade secrets within the contemplation of the law. Trade secrets may
not be the subject of compulsory disclosure by reason of their confidential and
privileged character. Otherwise, CCC would eventually be exposed to unwarranted
business competition with others who may imitate and market the same kinds of
products in violation of CCCs propriety rights. Being privileged, the detailed list of
ingredients and chemical components may not be the subject of mode of discovery
under Rule 27, Section 1 which expressly makes privileged information an
exception from its coverage (Air Philippines Corporation v. Pennswell, Inc., 540 SCRA
215 [2007]).
[b]
Blinded by extreme jealousy, Alberto shot his wife, Betty, in the

presence of his sister, Carla. Carla brought Betty to the hospital.
Outside the operating room, Carla told Domingo, a male nurse, that it
was Alberto who shot Betty. Betty died while undergoing emergency
surgery. At the trial of the parricide charges filed against Alberto, the
prosecutor sought to present Domingo as witness, to testify on what
Carla told him. The defense counsel objected on the ground that
Domingo's testimony is inadmissible for being hearsay. Rule on the
objection with reasons. (3%)
SUGGESTED ANSWER:
Objection overruled. The disclosure received by Domingo Carla may be regarded as
independently relevant statement which is not covered by the hearsay rule; hence
admissible. The statement may be received not as evidence of the truth of what was
stated but only as to the tenor thereof and the occurrence when it was said
independently of whether it was true of false. (People v. Cloud, 333 Phil. 306 [1996];
People v. Malibiran, et. al., G.R. No. 178301, April 24, 2009)
ALTERNATIVE ANSWER:
Objection sustained. The disclosure made by Carla has no other probative value
except to identify who shot Betty. Its tenor is irrelevant to the incident, and the
same was made not to a police investigator of the occurrence but to a nurse whose
concern is only to attend to the patient. Hence, the disclosure does not qualify as
independently relevant statement and therefore, hearsay. The nurse is competent
to testify only on the condition of Betty when rushed to the hospital but not as to
who caused the injury. The prosecution should call on Carla as the best witness to
the incident.
XXXX MILLENA
XVII
Having obtained favorable judgment in his suit for a sum of money against Patricio,
Orencio sought the issuance of a writ execution. When the write was issued, the
sheriff levied upon a parcel of land that Patricio owns, and a date was set for the
execution sale.
[a]
How may Patricio prevent the sale of the property on execution? (2%)
SUGGESTED ANSWER:
Patricio may file a Petition for Relief with preliminary injunction (Rule 38), posting a
bond equivalent to the value of the property levied upon; or assail the levy as
invalid if ground exists. Patricio may also simply pay the amount required by the
writ and the costs incurred therewith.
[b]
If Orencio is the purchases of the property at the execution sale, how

much does he have to pay? Explain. (2%)
SUGGESTED ANSWER:
Orencio, the judgment creditor should pay only the excess amount of the bid over
the amount of the judgment, if the bid exceeds the amount of the judgment.
[c]
If the property is sold to a third party at the execution sale, what can
Patricio do to recover the property? Explain. (2%)
SUGGESTED ANSWER:
Patricio can exercise his right of legal redemption within 1 year from date of
registration of the certificate of sale by paying the amount of the purchase price
with interests of 1% monthly, plus assessment and taxes paid by the purchaser,
with interest thereon, at the same rate.
XVIII
Pinoy died without a will. His wife, Rosie, and three children executed a deed of
extrajudicial settlement of his estate. The deed was properly published and
registered with the Office of the Register of Deeds. Three years thereafter, Suzy
appeared, claiming to be the illegitimate child of Pinoy. She sought to annul the
settlement alleging that she was deprived of her rightful share in the estate. Rosie
and the three children contended that (1) the publication of the deed constituted
constructive notice to the whole world, and should therefore bind Suzy; and (2)
Suzy's action had already prescribed. Are Rosie and the three children correct?
Explain. (4%)
SUGGESTED ANSWER:
NO, the contention is not correct. Suzy can file a complaint to annul the
extrajudicial statement and she can recover what is due her as such heir if her
status as an illegitimate child of the deceased has been established. The
publication of the settlement does not constitute constructive notice to the heirs
who had no knowledge or did not take part in it because the was notice after the
fact of execution. The requirement of publication is intended for the protection of
creditors and was never intended to deprive heirs of their lawful participation in the
decedent's estate. She can file the action therefor within four (4) years after the
settlement was registered.
XIX
[a]
Distinguish the two (2) modes of appeal from the judgment of the
Regional Trial Court to the Court of Appeals. (3%)
SUGGESTED ANSWER:
In cases decided by the Regional Trial Courts in the exercise of their original
jurisdiction, appeals to the Court of Appeals shall be ordinary appeal by filing
written notice of appeal indicating the parties to the appeal; specifying the
judgment/final order or part thereof appealed from; specifying the court to which
the appeal is being taken; and stating the material dates showing the timeliness of
the appeal. The notice of appeal shall be filed with the RTC which rendered the
judgment appealed from and copy thereof shall be served upon the adverse party
within 15 days from notice of judgment or final order appealed from. But if the case
admits of multiple appeals or is a special proceeding, a record of appeal is required
aside from the written notice of appeal to perfect the appeal, in which case the
period for appeal and notice upon the adverse party is not only 15 days but 30
days from notice of judgment or final order appealed from. The full amount of the
appellate court docket fee and other lawful fees required must also be paid within
the period for taking an appeal, to the clerk of the court which rendered the
judgment or final order appealed from ( Secs. 4 and 5, Rule 41, Rules of Court). The
periods of 15 or 30 days above-stated are non-extendible.
In cases decided by the Regional Trial Court in the exercise of its appellate
jurisdiction, appeal to the Court of Appeals shall be by filling a verified petition for
review with the Court of Appeals and furnishing the RTC and the adverse party
with copy thereof, within 15 days form notice of judgment or final order appealed
from. Within the same period for appeal, the docket fee and other lawful fees
required with the deposit for cost should be paid. The 15-day period may be
extended for 15 days and another 15 days for completing reasons.
[b]
What is the write of amparo? How is it distinguished for the writ of

habeas corpus? (2%)
SUGGESTED ANSWER:
The petition for a writ of amparo is a remedy available to any person whose right to
life, liberty and security is violated or threated with violation by an unlawful act or
omission of a public office or employee, or of a private individual or entity. The
write shall cover extralegal killings and enforced diappaoerances of threats thereof.
The writ of amparo differs from a writ of habeas corpus in that the latter writ is
availed of as a remedy against cases of unlawful confinement or detention by which
any person is deprived of his liberty, or cases by which rightful custody of any
person is withheld from another who is lawfully entitled thereto (Sec 1, Rutile 102,
Rules of Court).
[c]
What is the writ of habeas data? (1%)
SUGGESTED ANSWER:
The writ of habeas data is a remedy available to any person whose right of privacy
in life, liberty or security is violated or threatened by an unlawful act or omission of
a public official or employee, or of a private individual or entity engaged in the
gathering, collection or storing of data or information regarding the person, family,
home and correspondence of the aggrieved party.
LEGAL ETHICS AND PRACTICAL EXERCISES

PART I
I
[a]
The Bangalore Draft, approved at a Roundtable Meeting of Chief

Justices held at the Hague, is now the New Code of Judicial Conduct
in the Philippines.
SUGGESTED ANSWER:
TRUE. The whereas clause of the New Code of Judicial Conduct in the
Philippines provides that the Bangalore Draft of the Code of Judicial Conduct
is intended to be a Universal Declaration of Judicial Standard applicable in all
judiciaries. As such, it was adopted by the Supreme Court as its Code of
Judicial Conduct, in solidarity with other jurisdictions in the world.
[b]
An attorney ad hoc is a lawyer appointed by the court to represent an

absentee defendant in a suit in which the appointment is made.
SUGGESTED ANSWER:
TRUE. This applies when the absentee defendant has no counsel present in
court and delay has to be avoided. Said counsel, also known as a curator ad
hoc, is different from a counsel de oficio where the party to be represented is
present in court but has no counsel (Bienvenu v. Factors & Traders
Insurance Co., 33 La. Ann. 209, 1881 WL 8922[La.])
[c]
A charging lien, as distinguished from a retaining lien, is an active lien

which can be enforced by execution.
SUGGESTED ANSWER:
TRUE. It is active because it requires the lawyer to charge the judgment and
its execution for the payment of his fees.
[d]
A lawyer cannot refuse to divulge the name or identity of his client.
SUGGESTED ANSWER:
FALSE. As a general rule, a clients name is not confidential, but there are
exceptions enumerated in Regala v. Sandiganbayan (262 SCRA 122 [1996]),
to wit: (a) where a strong possibility exists that revealing a clients name
would implicate that client in the very activity for which he sought the
lawyers advice, (b) where disclosure would open the client to civil liability,
and (c) where the governments lawyers have no case against an attorneys
client unless by revealing the clients name, the said name would furnish the
only link that would form the chain of testimony necessary to convict an
individual crime.
[e]
A notary public is disqualified from performing a notarial act when

the party to the document is a relative by affinity within the 4th civil
degree.
SUGGESTED ANSWER:
TRUE. Sec. 3 (c), Rule IV of the 2004 Rules on Notarial Practice provides that
a notary public is disqualified from performing notarial act if he is a spouse,
common-law partner, ancestor, descendant, or relative by affinity or
consanguinity of the principal within the fourth civil degree.
II
[a]
What is the object of the bar examinations? Explain. (2%)
SUGGESTED ANSWER:
Public policy demands that any person seeking admission to the bar in the
Philippines be required to furnish satisfactory proof of his knowledge of the
law and ethical standards and of his possession of such degree of learning and
proficiency in law must be deemed necessary for the due performance of his
duties of lawyer.
[b]
What are the three (3) tests to determine conflict of interest for
practicing lawyers? Explain each briefly. (3%)
SUGGESTED ANSWER:
(1) When in representation of one client, a lawyer is required to fight for an
issue or claim, but is also duty bound to oppose it for another client;
(2) When the acceptance of the new retainer will require an attorney to
perform an act that may injuriously affect the first client or when called upon
in a new relation to use against the first client any knowledge acquired
through their professional connection;
(3) When the acceptance of a new relation would prevent full discharge of an
attorneys duty to give undivided fidelity and loyalty to the client or would
invite suspicion of unfaithfulness or double-dealing in the performance of that
duty (Northwestern University v. Arquillo, 415 SCRA 513 [2005]).
III
[a]
May a party appear as his own counsel in a criminal or in a civil case?

Explain. (3%)
SUGGESTED ANSWER:
A party may appear as his own counsel in civil cases (Sec. 34, Rule 138). However,
in criminal cases involving grace and less grave offenses, he must always appear
through counsel.
A party may appear without his own counsel before the Municipal Trial
Court, whether or not for a civil or criminal case. In the RTC or the Appellate
Courts, a party in a civil suit may conduct his litigation either personally or by
attorney unless the party is a juridical person. However, with respect to criminal
proceedings in the said tribunals, the right to counsel of an accused is absolute or
immutable. It has never been considered subject to waiver (Flores v Ruiz, 90 SCRA
428 [1979]).
[b]
What is the student practice rule? (2%)
SUGGESTED ANSWER:
The Student Practice Rule (Rule 138-A) is the Rule authorizing a law student
who has successfully completed his 3rd year of the regular four-year prescribed
curriculum and is enrolled in a recognized law schools clinical legal education
program approved by the Supreme Court, to appear without compensation in any
civil, criminal or administrative case before any trial court, tribunal or boar or
officer, to represent indigent clients accepted by the legal clinic of the law school,
under the direct supervision and control of a member of the IBP accredited by the
law school.
IV
[a]
In a case for homicide filed before the Regional Trial Court (RTC),
Presiding Judge Quintero issued an order for the arrest of the
accused, granted a motion for the reduction of bail, and set the date
for the arraignment of the accused. Subsequently, Judge Quintero
inhibited himself from the case, alleging that even before the case was
raffled to his court, he already had personal knowledge of the
circumstances surrounding the case. Is Judge Quinteros inhibition
justified? Explain. (3%)
SUGGESTED ANSWER:
Judge Quinteros inhibition is justified. One of the grounds for inhibition under
Section 5, Canon 3 of the New Code of Judicial Conduct for the Philippine
Judiciary is where the judge has actual bias or prejudice concerning a party or
personal knowledge of disputed evidentiary facts concerning the proceedings.
[b]
After being diagnosed with stress dermatitis, Judge Rosalind, without

seeking permission from the Supreme Court, refused to wear her robe
during court proceedings. When her attention was called, she
explained that whenever she wears her robe she is reminded of her
heavy caseload, thus making her tense. This, in turn, triggers the
outbreak of skin rashes. Is Judge Rosalind justified in not wearing her
judicial robe? Explain. (3%)
SUGGESTED ANSWER:
Judge Rosalind is not justified. IN Chan v. Majaducon (413 SCRA 354 [2003]), the
Supreme Court emphasized that the wearing of robes by judges as required by
Adm, Circular No. 25, dated June 9, 1989, serves the dual purpose of heightening
public consciousness on the solemnity of judicial proceedings and in impressing
upon the judge the exacting obligations of his office. The robe is part of judges
appearance and is as important as a gavel. The Supreme Court added that while
circumstances, such as the medical condition claimed by respondent judge, may
exempt one from complying with AC No. 25, he must first secure the Courts
permission for such exemption. He cannot simply excuse himself, like respondent
judge, from complying with the requirement.
V
Cliff and Greta were law school sweethearts. Cliff became a lawyer, but Greta
dropped out. One day, Cliff asked Greta to sign a marriage contract. The following
day, Cliff showed Greta the document already signed by an alleged solemnizing
officer and two witnesses. Cliff then told Greta that they were already married and
Greta consented to go on a honeymoon. Thereafter, the couple cohabited and begot
a child. Two years later, Cliff left Greta and married a Venezuelan beauty. Incensed,
Greta filed a disbarment complaint against Cliff. Will the case prosper? Explain.
(4%)
SUGGESTED ANSWER:
The disbarment case will prosper. In the case Cabrera v. Agustin (106 Phil. 256
[1959]), a lawyer who deceived a woman to believe that they were already married
after they had signed an application for a marriage license, and afterward took
advantage of her belief to satisfy his lust, until she bore his a child, was considered
by the Supreme Court to be lacking in integrity and good moral character to remain
a member of the bar.
XXXX OGENA
XXXX PASCUAL
X
Given the same facts in No. IX above, assume that summons has been
served on Jamero, but no responsive pleading was filed within the reglementary
period.
Prepare a motion to declare Jamero in default. (4%)
SUGGESTED ANSWER:
REPUBLIC OF THE PHILIPPINES

NATIONAL CAPITAL JUDICIAL REGION
REGIONAL TRIAL COURT
BRANCH _____, MANILA
ALEXANDER SISON,
Plaintiff,
-Versus-
CIVIL CASE No. _______________
JUAN JAMERO,
Defendant
X---------------------------------------------X
MOTION TO DECLARE IN DEFAULT
PLAINTIFF, through undersigned counsel, through this Honorable court

respectfully alleges:
1.
That on September _____, 2009, defendant was served with summons and a
copy of the Complaint;
2.
That the reglementary period for the defendant to file an Answer or motion to
dismiss expired on ___________________, without the defendant filing any such
answer or motion.
3.
That the defendant may now be declared in default.
Wherefore, it is respectfully prayed that the defendant be declared in default and

the plaintiff be allowed to present his evidence ex parte.
Manila, ____________________, 2009.
ATTY. ____________________
Counsel for the Plaintiff
(address)
Attorneys Roll No. __________
Date ____________________
PTR No., _____, Place/Date of Issue
IBP O.R. No. _____________
Date/ Place issued __________
MCLE Cert. No. _________
Email address: __________
NOTICE OF HEARING
Mr. Juan Jamero

222 Juan Luna St., Tondo
Manila
Sir:
Notice is hereby given that on ___________________, at 8:30 a.m., the

foregoing motion will be submitted to the Honorable Court for its consideration and
resolution.
ATTY. ____________________
XI
True or False. Answer TRUE if the statement is true, or FALSE if the statement is
false. Explain your answer in not more than two (2) sentences. (5%)
[a] The duty of a lawyer to his client is more paramount than his duty to the Court.
Suggested Answer: FALSE. A lawyers paramount duty is to the court. This is

because he is an officer of the court.
[b] It is ethical for a lawyer to advise his client to enter a plea of guilty in a criminal
case if the lawyer is personally convinced that he cannot win the case for his client.
Suggested Answer: TRUE. A lawyer should be candid with a client. But he should
leave it up to the client to decide whether to plead guilty or not.
[c] There is no presumption of innocence or improbability of wrongdoing in an

attorneys favor when he deals with his client concurrently as lawyer and as
businessman.
Suggested Answer: TRUE. This is the ruling of the Supreme Court in Nakpil v.
Valdes (288 SCRA 758 [1998]).
[d] The satisfaction of a judgment debt does not, by itself, bar or extinguish the
attorneys liens, except when there has been a waiver by the lawyer as shown by
his (text unreadable)
Suggested Answer: TRUE. In the case of Sesbreno v. Court of Appeals (551 SCRA
524 [2008]), the Supreme Court held that the satisfaction of the judgment
extinguishes the lien, if there has been a waiver as shown either by the lawyers
conduct or by his passive omission. No rule will allow a lawyer to collect from his
client and then collect anew from the judgment debtor except, perhaps, on a claim
for a higher amount.
[e] A companion or employee of the judge who lives in the judges household is
included in the definition of the judges family.
Suggested Answer: TRUE. A judges family as defined in the New Code of Judicial
Conduct for the Philippine Judiciary includes a judges spouse, son, daughter,
son-in-law, daughter-in-law, and any other relative by consanguinity or affinity
within the sixth civil degree, or person who is a companion or employee of the judge
and who lives in the judges household.
XII
Write the complete text of the attorneys oath. (5%)
Suggested Answer:
I, _____, do solemnly swear that I will maintain allegiance to the Republic of the
Philippines, I will support the Constitution and obey the laws as well as the legal
orders of the duly constituted authorities therein; I will do no falsehood, nor
consent to the doing of any in court; I will not wittingly or willingly promote or sue
any groundless, false or unlawful suit, nor give aid nor consent to the same; I will
delay no man for money or malice, and will conduct myself as a lawyer according to
the best of my knowledge and discretion, with all good fidelity as well to the courts
as to my client; and I impose upon myself this voluntary obligation without any
mental reservation or purpose of evasion. So help me God.
XIII
Atty. Hyde, a bachelor, practices law in the Philippines. On long weekends,
he dates beautiful actresses in Hong Kong. Kristine, a neighbor in the Philippines,
filed with the Supreme Court an administrative complaint against the lawyer
because of sex videos uploaded through the internet showing Atty. Hydes sordid
dalliance with the actresses in Hong Kong.
In his answer, Atty. Hyde [1] questions the legal personality and interest of
Kristine to institute the complaint and [2] insists that he is a bachelor and the sex
videos relate to his private life which is outside public scrutiny and have nothing to
do with his law practice.
Rule on the validity of Atty. Hydes defenses. (5%)
Suggested Answer:
(a)
The legal personality and interest of Kristine to initiate the complaint for
disbarment is immaterial. A disbarment proceeding is sui generis, neither a civil
nor a criminal proceeding. Its sole purpose is to determine whether or not a lawyer
is still deserving to be a member of the bar. In a real sense, Kristine is not a

plaintiff; hence, interest on her part is not required.
(b)
Atty. Hydes second defense is untenable. His duty is not to engage in
unlawful, dishonest, immoral and deceitful conduct under Rule 1.01 of the CPR, as
well as his duty not to engage in scandalous conduct to the discredit of the legal
profession under Rule 7.03, is applicable to his private as well as to his
professional life.
XIV
Marlyn, a widow, engaged the services of Atty. Romanito in order to avert the
foreclosure of several parcels of land mortgaged by her late husband to several
creditors. Atty. Romanito advised the widow to execute in his favor deeds of sale
over the properties, so that he could sell them and generate funds to pay her
creditors. The widow agreed. Atty. Romanito did not sell the properties, but paid
the mortgage creditors with his own funds, and had the land titles registered in his
name. Atty. Romanito succeeds in averting the foreclosure. Is he administratively
liable? Reasons. (3%)
Suggested Answer:
Yes, Atty. Romanito is administratively liable. The basic facts in this case are
the same as the facts in Hernandez v. Go (450 SCRA 1 [2005]), where the Supreme
Court found the lawyer to have violated Canons 16 and 17 of the Code of
Professional Responsibility, and disbarred him. The Supreme Court held that a
lawyers acts of acquiring for himself the lots entrusted to him by his clients are, by
any standard, acts constituting gross misconduct. The lawyer in that case was
disbarred.
XV
Atty. Wilmar represented Beatriz in a partition case among heirs, and won. When
Wilmar demanded payment of attorneys fees, Beatriz refused to pay. Wilmar sued
Beatriz for the unpaid attorneys fees and obtained a favorable judgment.
Thereafter, Beatriz filed an administrative complaint against Wilmar claiming that
he lied when he stated in his claim for attorneys fees that the subject of the
partition case involved the entire estate of the deceased when, in fact, it covered
only 50% thereof. Wilmar set up the defenses that [1] Beatriz filed the complaint
only to delay the execution of the judgment ordering her to pay attorneys fees and
[2] Beatriz engaged in forum-shopping. Are the defenses of Atty. Wilmar tenable?
Explain. (4%)
Suggested Answer:
The defenses of Atty. Wilmar are tenable.
(1)
The claim of Beatriz that he lied when he stated in his claim for attorneys
fees that the subject of the partition case involved the entire estate, should have
been raised in the suit for collection filed by Atty. Wilmar. It is clear that Beatriz is
trying to delay the execution of a final judgment.
(2)
Yes. Beatriz engaged in forum shopping. There is forum-shopping when as a
result of a decision in one forum, a party seeks a favorable opinion in another
forum through means other than appeal or certiorari, raising identical causes of
action, subject matter and issues. There is identity of subject matter, causes of
action and issues between the civil case brought by Atty. Wilmar and the
administrative case brought by Beatriz.
XVI
Atty. Simeon persuaded Armando, Benigno and Ciriaco to invest in a business
venture that later went bankrupt. Armando, Benigno and Ciriaco charged Atty.
Simeon with estafa. Simultaneously, they filed an administrative complaint against
the lawyer with the Supreme Court.
[a] If Simeon is convicted of estafa, will he be disbarred? Explain. (3%)
SUGGESTED ANSWER:
Yes. One of the grounds for disbarment under Sec. 27, Rule 138, is
conviction of a crime involving moral turpitude. Estafa is a crime involving moral
turpitude.
[b] If Simeon is acquitted of the estafa charge, will the disbarment complaint be
dismissed? Explain. (3%)
SUGGESTED ANSWER:
Not necessarily. If the acquittal is based on the ground that no crime was
committed, or that Simeon is innocent, the administrative case may be dismissed.
But if the acquittal is based merely on reasonable doubt, the disbarment
proceeding may still continue. The purpose of a disbarment proceeding is to
determine whether a lawyer still deserves to remain a member of the bar. For such
determination, conduct which merely avoids the penalty of the law is not sufficient.
XVII
When Atty. Romualdo interviewed his client, Vicente, who is accused of
murder, the latter confessed that he killed the victim in cold blood. Vicente also
said that when he takes the witness stand, he will deny having done so. Is Atty.
Romualdo obliged, under his oath as lawyer, to inform the judge that [a] his client
is guilty and [b] his client will commit perjury on the witness stand? Explain. (4%)
SUGGESTED ANSWER:
(a)
Atty. Romualdo cannot reveal to the judge that Vicente is guilty. He is bound
to keep what Vicente told him in confidence, because that is an admission of a
crime already committed.
(b)
Atty. Romualdo can reveal to the judge that Vicente will commit perjury on
the witness stand. This is already a revelation of a crime still to be committed, and
that lies outside the mantle of privileged communication.
XVIII
Atty. Utang borrowed from Y Php 300,000.00 secured by a postdated check. When
presented the check was dishonored. Y filed a BP 22 cease in court, and a
disbarment complaint with the IBP. In the latter case, Atty. Utang moved for
dismissal as the act has nothing to do with his being a lawyer and that it is
premature because the case is pending and he is entitled to a presumption of
innocence. Should the disbarment complaint be dismissed?
e)
No, because lawyers may be disciplined for all acts, whether professional or
private.
f)
Yes, there is no conviction yet.
g)
Yes, BP 22 does not involve moral turpitude.
h)
No, unless he pays the amount of the check to the satisfaction of Y.
Suggested Answer:
a) No, because lawyers may be disciplined for all acts, whether professional or
private.
XIX
Atty Juan Cruz of the Cruz, Cruz, and Cruz Law Office personally handled a
damages case of Mr. Gonzalo which resulted in an award of Php 500,000.00. the
write of execution was served by Sheriff Onoy, but resulted in the recovery of only
Php 70,000.00 Mr. Gonzalo was unsatisfied and filed an administrative complaint.
When informed, Sheriff Onoy berated and threatened Mr. Gonzalo, and for this, the
Sheriff was charged with Grave Threat. Atty. Pedro Cruz of the same Cruz, Cruz,
and Cruz Law Office appeared as defense counsel pro bono. Mr. Gonzalo seeks his
disqualification. Decide.
e)
No conflict of interest. The Grave Threat case arose out of different factual
scenario.
f)
There is conflict of interest because both Atty. Juan Cruz and Atty. Pedro
Cruz belong to one law office.
g)
No conflict of interest since the court case was wholly handled by Atty. Juan
Cruz. The law office did not participate in any way.
h)
No conflict of interest. No likelihood that information in the civil case can be
used in the criminal case.
Suggested Answer:
b) There is conflict of interest because both Atty. Juan Cruz and Atty. Pedro Cruz
belong to one law office.
XX
From the affidavits and the death certificate submitted during the preliminary
investigation, the following facts are established: At 6:00 oclock in the evening of
September 13, 2009, at the corner of Dapitan and Dos Castillas Sts., Sampaloc,
Manila, Edgar Bastonero, alias Bugoy, and Carlos Tirador, alias Pogi, accosted
Johnny Escolar, a student, and demanded the latters cellular phone and wrist
watch. Because Johnny resisted, Bastonero pulled out a knife and stabbed Johnny
several times in the chest, causing instantaneous death. Bastonero and Tirador
then ran away. The affidavits were executed by William Tan and Henry Uy,
classmates of Johnny, who witnessed the entire incident. The death certificate was
isse=ued by Dr. Jose Cabra who conducted the autopsy on Johnny.
As Assistant City Prosecutor in Manila, prepare the appropriate criminal
information to be filed in court. (10%)
SUGGESTED ANSWER:
REPUBLIC OF THE PHILIPPINES

NATIONAL CAPITAL JUDICIAL REGION
REGIONAL TRIAL COURT
MANILA
PEOPLE OF THE PHILIPPINES
Plaintiff
- versus -
CRIM CASE NO. _________________

For: Robbery with Homicide
EDGAR BASTONERO alias BUGOY and

CARLOS TIRADOR alias POGI
Accused.
INFORMATION
The undersigned Assistant Prosecutor of Manila hereby accuses Edgar

Batonero alias Bugoy and Carlos Tirador alias Pogi, of the crime of ROBBERY
WITH HOMICIDE, committed as follows:
That on or about 6:00 p.m. of September 13, 2009 at the corner of Dapitan
and Castillas Streets, Sampaloc, Manila, Philippines, within the jurisdiction of this
Honorable Court, the said accused, conspiring and confederating together and
murually aiding each other, with the use of superior force, and with intent to gain,
did then and there, willfully, unlawfully and feloniously, and by means of violence,
take and take away from one JOHNNY ESCOLAR, a student, one cellular phone
and a wrist watch belonging to the said Johnny Escolar, of the total value of One
Hundred Thousand Pesos (P100,000.00) , to the damage and prejudice of the said
owner, and on the same occasion and for the purpose of anabling them to take
away the articles above mentioned, the herein accused, in pursuance of their
conspiracy, did there and there willfully, unlawfully and feloniously, with intent to
kill, and taking advantage of their superior number and strength, treacherously
attack, assault, and repeatedly stab the said JOHNNY ESCOLAR in the chest with
a knife, thereby inflicting multiple chest wounds on the said person which directly
caused his death.
Contrary to law.
Manila, Philippines, 2009
Assistant City Prosecutor
CERTIFICATION
I hereby certify that a preliminary investigation was conducted by me, in

which the accused were given an opportunity to present their evidence, and on the
basis of the affidavits presented, there is a prima facie reason to believe that a
crime has been committed and that the accused are probably guilty thereof.
Assistant City Prosecutor
Witnesses:
Names
Addresses
William Tan
Henry Uy
Dr. Jose Cabra
Bail Recommended: P100,000.00 for each accused

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POLITICAL LAW

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Having reacquired Philippine citizenship, is Warlito a natural-born or

With Warlito having regained Philippine citizenship, will Shirley also

Do the children Johnny, Warlito Jr., and Luisa become Filipino

Maximino, an employee of the Department of Education, is administratively

Is the Secretary of Education a property party to seek the review of

If the SC affirms the CA decision, is Maximino entitled to recover back

Aliens are absolutely prohibited from owning private lands in the

False. Under Section 7, Article XII of the Constitution, aliens may

The President exercises the power of control over all executive

Decisions of the Ombudsman imposing penalties in administrative

Dual citizenship is not the same as dual allegiance.

True. Dual citizenship arises when, as a result of the concurrent

If William applies for bail, claiming that he is entitled thereto under

Was the Philippine action justified under the international law

As a consequence of the foregoing incident, Asyaland charges the

Assume that the commando team captured a member of the Emerald

Decide with reasons. (3%)

The petition of KMM must be denied. Diplomatic negotiations are

Will your answer be the same if the information sought by KMM

The act of MTRCB constitutes prior restraint and violates the

While Memorandum Circular No. 98-17 was issued and published in

Angelina, a married woman, is a Division Chief in the Department of

Meanwhile, Jenny, also a member of Yahwehs Observers was severely

property. To be just, the compensation must be paid within a reasonable time.

Suppose the expropriation succeeds, but the City decides to abandon

The draft of the proposed amendment must be embodied in the petition

LABOR AND SOCIAL LEGISLATION

An employment contract prohibiting employment in a competing

All confidential employees are disqualified to unionize for the purpose

A runaway shop is an act constituting unfair labor practice.

In the law on labor relations, the substitutionary doctrine prohibits a

The visitorial and enforcement powers of the DOLE Regional Director

Enumerate at least four (4) policies enshrined in Section 3, Article XIII

All workers shall have the right to peaceful concerted activities,

They shall be entitled to a living wage.

They shall participate in policy and decision making processes

The state shall promote the principle of shared responsibility

Clarito, an employee of Juan, was dismissed for allegedly stealing

The Labor Arbiter has no jurisdiction over the case; (2%)

"Money Claims. - Notwithstanding any provision

Because Richie was not able to leave for Qatar, no employer-employee

Rule on the validity of the foregoing arguments with reasons.

Baldo was dismissed from employment for having been absent

Domingo, a bus conductor of San Juan Transportation Company,

Is Indays refusal tenable? Explain. (3%)

Distinguish briefly, but clearly, a househelper from a homeworker.

convenience of the members of the employers household, including the

Rule on the foregoing contentions with reasons.

The Labor Arbiter found management guilty of unfair labor practice

Thereafter, the NMMR filed a criminal case against the Manager of

Can the order of reinstatement be immediately enforced in the

If the order of reinstatement is being enforced, what should JSA do in

Explain your answers.