Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Coverage:
o Banking Laws
General Banking Law
New Central Bank Act
Anti-Money Laundering Act
PDIC Law
Law on Bank Secrecy
o Securities Regulation Code
o Intellectual Property Code
o Insolvency Law
o Corporate Rehabilitation
1. X is a depositor of AAA Bank. She has three (3) deposit accounts all under
her name. One, in checking account, one in saving account and another one in
time deposit account. Each account has a balance of Php250,000. AAA Bank
became insolvent. Philippine Deposit Insurance Corporation closed the Bank.
X therefore is unable to withdraw from all of the accounts. She then filed
her claims with the Philippine Deposit Insurance Corporation. Which
statement is most accurate?
a. X can claim a total of Php500,000 for all the three (3) accounts.
b. X can only claim from one (1) account of Php250,000.
c. X can claim a total of Php750,000 from all the three (3) accounts.
d. X cannot claim anything from any of the deposit accounts.
2. The Bank Secrecy Law (RA 1405) prohibits disclosing any information about
deposit records of an individual without court order except -
a. In an examination to determine gross estate of a decedent.
b. In an investigation for violation of Anti-Graft and Corrupt Practices.
c. In an investigation by the Ombudsman.
d. In an impeachment proceeding.
7. The Fair Use Doctrine allows others to utilize copyrighted works under
certain conditions. The factors to consider whether use is fair or not would
be the purpose and character of the use, nature of the copyrighted work,
amount and substantiality of the portions used, and what else?
a. Effect of the use upon the creator of the work.
b. Effect of the use upon the potential market of the work.
c. Effect of the use upon the public in general.
d. Effect of the use upon the class in which the creator belongs.
8. XYZ Corporation bought ten (1 0) units of Honda Civic from CCC Corporation.
ABC Bank granted a loan to XYC Corporation which executed a financing
agreement which
the interest provided
rates and for
the the
due principal
dates. Onamount, the installment
due dates payments,
of the installment
payments, XYZ Corporation was asked to pay for some handling charges and
other fees which were not mentioned in the Financing Agreement. Can XYC
Corporation refuse to pay the same?
a. No, because handling charges and other fees are usual in certain
banking transactions.
b. Yes, because ABC Bank is required to provide XYZ Corporation not only
the amount of the monthly installments but also the details of the
finance charges as required by the Truth in Lending Act.
c. No, because the Finance Agreement is a valid document to establish the
existence of the obligation.
d. Yes, because legally, finance charges are never allowed in any banking
transaction.
12. The main feature of the Foreign Investment Act of 1991 is to introduce
the concept of "Negative Lists". Under the said law, what is a "Negative
List"?
a. It is a list of business activities or enterprises in the Philippines
that foreigners are disqualified to engage in.
b. It is a list of business activities or enterprises in the Philippines
that foreigners are qualified to engage in.
c. It is a list of business activities or enterprises that are open to
foreign investments provided it is with the approval of the Board of
Investment.
d. It is a list of business activities or enterprises that are open to
foreign investments provided it is with the approval of the Securities
and Exchange Commission.
13. May a publicly listed universal bank own 100% of the voting stocks in
another universal bank and in a commercial bank?
a. Yes, if with the permission of the Bangko Sentral ng Pilipinas.
b.
c. No,
Yes,since it has
as there is no
no power to invest
prohibition in equities.
on it.
d. No, since under the law, the 100% ownership on voting stocks must be
in either bank only.
16. Under the Financial Rehabilitation and Insolvency Act (FRIA), the
filing of a petition for voluntary rehabilitation must be approved by:
a. a majority vote of the Board of Directors and authorized by the vote
of the stockholders representing at least a majority of the
outstanding capital stock
b. a majority vote of the Board of Directors and authorized by the vote
of the stockholders representing at least two-thirds of the
outstanding capital stock
c. two-thirds vote of the Board of Directors and authorized by the vote
of the stockholders representing at least a majority of the
outstanding capital stock
d. two-thirds vote of the Board of Directors and authorized by the vote
of the stockholders representing at least two-thirds of the
outstanding capital stock
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17. X, who is the Executive Vice President of ABC Corporation, a listed
company, can be held liable or guilty of insider trading if, he -
a. Bought shares of ABC Corporation when it was planning to acquire
another company to improve its asset base, the news of which increased
the price of the shares in the Stock Exchange.
b. Bought shares of XYC Corporation, a sister company of ABC Corporation
when he learned that XYC Corporation was about to also list its share
in the Philippine Stock Exchange.
c. Bought shares of ZZZ Corporation when he learned that ABC Corporation
would acquire ZZZ Corporation.
d. All of the above.
director as a person
would interfere with who
his must not have
exercise a relation with
of independent the corporation
judgment in carryingwhich
out
the responsibilities of a director. To ensure independence therefore, he
must be -
a. Nominated and elected by the entire shareholders;
b. Nominated and elected by the minority shareholders;
c. Nominated and elected by the majority shareholders;
d. Appointed by the Board.
21. The government agency granted with the power of supervision and
examination over banks and non-bank financial institutions performing quasi-
banking functions, to ensure that the conduct of its business is on a sound
financial basis that will provide continued solvency and liquidity is -
a. The Philippine Deposit Insurance Corporation;
b. The Bangko Sentral ng Pilipinas;
c. The Anti-Money Laundering Council;
d. The Securities and Exchange Commission.
22. X maintains a savings deposit in the amount of Php·1 Million with ABC
Bank Corporation. X also has obtained a loan from ABC Bank Corporation in
the amount of Php1 Million. In case of default,
a. ABC Bank can set-off the loan from the savings account being
maintained by X with ABC Bank.
b. Set-off is not possible because legal compensation is not allowed in
banking transaction.
c. Deposit accounts are usually earmarked for specific purpose hence
offsetting is not legally possible.
d. Off -setting is not possible because the obligation of X is a "simple
loan".
24. XXX Bank Corporation and ZZZ Corporation were merged into XX ZZ Bank
Corporation. So as not to create any unnecessary conflict, all the former
directors of both banks wanted to be appointed /elected as members of the
Board of Directors of the merged bank. Each bank used to have eleven (11)
members of the board. The maximum number of directors of the merged bank is
a. 15;
b. 22;
c. 21;
d. 11.
25. All senior officers of ABC Bank are entitled to obtain a housing loan.
X is an Executive Vice President for Operations of ABC Bank. She obtained a
housing loan with the ABC Bank. Which statement is most accurate?
a. The housing loan of X requires a guarantor from somebody who is not
connected with the bank.
b. The housing loan of X requires the approval of the Board of Directors
of the bank.
c. The housing loan of X, being a benefit for employees, does not require
(a) but will require (b).
d. The housing loan of X, being a benefit for employees, will not require
(a) and (b).
26. ABC Holdings Company, a Hong Kong company, owns 10% of XYZ Bank.
Because of the peace and order situation in the Philippines, ABC Holding
Company wanted to sell its shareholdings in XYZ Bank. Unfortunately, nobody
is interested to buy a 1 0% shareholdings in a bank. The board of directors
of XYZ Bank thought that it would be a good idea to buy back the shares
owned by ABC Holding Company. Which statement is most accurate?
a. Buying back the shares by XYZ Bank is absolutely not allowed.
b. Buying back the shares may be allowed provided it is with the approval
of the Monetary Board and disposed of within six (6) months.
c. Buying back the shares may be allowed provided such shares 'will be
disposed of within ten (1 0) years.
d. Buying back the shares may be done anytime provided the Board of
Directors will approve the same.
29. X is a depositor of AAA Bank. She has three (3) deposit accounts all
under her name. One, in checking account, one in saving account and another
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REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS – NEW TOPICS
one in time deposit account. Each account has a balance of Php250,000. AAA
Bank became insolvent. Philippine Deposit Insurance Corporation closed the
Bank. X therefore is unable to withdraw from all of the accounts. She then
filed her claims with the Philippine Deposit Insurance Corporation. Which
statement is most accurate?
a. X can claim a total of Php500,000 for all the three (3) accounts.
b. X can only claim from one (1) account of Php250,000.
c. X can claim a total of Php750,000 from all the three (3) accounts.
d. X cannot claim anything from any of the deposit accounts.
30. The Bank Secrecy Law (RA 1405) prohibits disclosing any information
about deposit records of an individual without court order except -
a. In an examination to determine gross estate of a decedent.
b. In an investigation for violation of Anti-Graft and Corrupt Practices.
c. In an investigation by the Ombudsman.
d. In an impeachment proceeding.
33. Apart from economic rights, the author of a copyright also has moral
rights which he may transfer by way of assignment. The term of these moral
rights shall last
a. During the author's lifetime and for 50 years after his death.
b. Forever.
c. 50 years from the time the author created his work.
d. During the author's lifetime.
34. X invented a device which, through the use of noise, can recharge a
cellphone battery. He applied for and was granted a patent on his device,
effective within the Philippines. As it turns out, a year before the grant
of X's patent, Y, also an inventor, invented a similar device which he used
in his cellphone business in Manila. But X files an injunctive suit against
Y to stop him from using the device on the ground of patent infringement.
Will the suit prosper?
a. No, since the correct remedy for X is a civil action for damages.
b. No, since Y is a prior user in good faith.
c. Yes, since X is the first to register his device for patent
registration.
d. Yes, since Y unwittingly used X’s patented invention.
35. It is a legal scheme whereby a debtor, who has sufficient assets but
who may be unable to meet his obligations as and when they fall due, may
petition for more time within which to settle such obligations.
a. Insolvency Proceedings
b. Suspension of Payments
c. Corporate Rehabilitation
d. Voluntary Insolvency
36. Samsung invented a cellular phone that can also play digital music or
MP3s. It applied for the issuance of letters patent.
a. The invention is not patentable because it is a combination of old
functions which does not produce a new result.
b. The invention is patentable because it is a new product which is
beneficial to the public.
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REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS – NEW TOPICS
c. The invention is not patentable because Samsung is a foreign
corporation and it should file its application in its home country.
d. The invention is patentable because it combines existing elements, a
cellular phone and a digital music player, and produces a new and
useful result, namely, the convenience of having two gadgets in one.
37. Lucky Me registered its trademark, “Ang Sarap Pancit Palabok” with the
Intellectual Property Office. Nissin subsequently introduced its new
product, “Ang Sarap Pinoy Ramen”. Lucky Me sued for trademark infringement.
a. Nissin is not guilty of trademark infringement because the trademark
“Ang Sarap” is descriptive, hence not capable of exclusive
appropriation.
b. Nissin is not guilty of trademark infringement because its product,
Pinoy Ramen, belongs to a different category from Lucky Me’s
product, Pancit Palabok.
c. Nissin is guilty of trademark infringement because it did not
register its trademark “Ang Sarap Pinoy Ramen”.
d. Nissin is guilty of trademark infringement because the trademark
“Ang Sarap” is fanciful and arbitrary, hence capable of exclusive
appropriation.
38. Center Book Store is the publisher of the book Legal Journal. It
donated one copy to the Library of the U.E. College of Law. The Library, in
order to preserve the srcinal book, reproduced one copy of the Journal for
lending to copyright
liable for the University’s students for room use. Is the U.E. Law Library
infringement?
a. No. The reproduction is consistent with fair use.
b. Yes. Only the National Library is allowed to reproduce books and
other works.
c. No. The copy of the Journal is marked “For Room Use Only” and is
therefore not made available to the public outside of the Library.
d. Yes. The law only allows a library to photocopy a book if it is
fragile or rare.
39. Which among the following is not a function of the Bangko Sentral ng
Pilipinas?
a. As official depositary of the Philippine government.
b. As financial adviser of the Philippine government.
c. As fiscal agent of the Philippine government.
d. As the watchdog of government funds.
40. No. 1 – A bank may be may lend to a single borrower more than fifteen
(15%) of the bank’s unimpaired capital.
No. 2 – A deposit in a bank in foreign currency may be inquired into
provided the depositor gives his consent, orally or in writing.
a. Both are false.
b. Both are true.
c. No. 1 is true; no. 2 is false.
d. No. 1 is true; no. 2 is false.
42. No. 1 - The Ombudsman may inquire into the bank deposit of a public
officer whose case is pending criminal investigation in the Ombudsman even
if there is no actual case filed in court.
No. 2 - A writ of garnishment directed to a bank deposit is prohibited
by law.
a. Both are false.
b. Both are true.
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REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS – NEW TOPICS
c. No. 1 is false; No. 2 is true.
d. No. 1 is true; No. 2 is false
43. Jose and his wife, Perla, opened and maintained the following accounts
with Allied Bank Recto. (a) Savings deposit – P300,000; (b) Demand deposit –
P400,000; (c) Time deposit - P350,000. They also have the same
deposits with the same amount in Allied Bank Makati. If Allied bank becomes
insolvent the Philippine Deposit Insurance Corporation will be bound to be
liable to the spouses for its insurance liability equivalent to
a. Two deposits.
b. One deposit.
c. Six deposits.
d. Three deposits.
50. A bank is NOT liable for its failure to observe the degree of
diligence as required by its fiduciary duty under Sec. 2 of the GBL of 2000.
a. If such failure was prior to the enactment of the GBL of 2000.
b. If no actual damage was suffered by the depositor.
c. If the transaction involves money market placements.
d. If there is a contractual stipulation between the bank and the depositor
supported by valuable consideration which lowers the degree of diligence
required to be exercised by the bank to that of a good father of family.
51. A bank may be deemed as a mortgagee in good faith if it does not –
a. Ascertain the mortgagor’s title or ownership over the property mortgaged.
b. Ascertain the identity of the person borrowing the owner’s duplicate
srcinal title of property mortgaged before allowing such person to
borrow such title for photocopying purposes.
c. Check both the owner’s duplicate srcinal title to the property mortgaged
and the title thereof in the registry of deeds.
d. Conduct an ocular inspection of the property, provided there is nothing
in the title to the property which would arouse suspicion and require an
ocular inspection.
52. A universal bank and a commercial bank differ in terms of their power
–
a. To invest in non-financial allied enterprises.
b. To create and accept demand deposits.
c. To act as investment house.
d. To perform quasi-banking functions.
54. The distinction between the three modes of entry of foreign banks in
the Philippines under the Foreign Banks Liberalization Act is material in
determining –
a. Whether or not a foreign bank may avail of more than one mode of entry.
b. Whether or not Monetary Board Approval is required for such entry.
c. Whether or not head office guarantee is required.
d. Whether or not the foreign bank shall perform the same functions enjoy
the same privileges, and be subject to the same limitations imposed upon
a Philippine bank of the same category.
account in payment
insufficiency of the of depositor’s
funds loan
to cover the to the
amount bank
of the resulting
check drawn. in the
c. If before dishonoring the check, the bank did not notify the depositor
that his funds are insufficient to cover the amount of the check drawn as
to give him an opportunity to deposit sufficient funds.
d. If the bank does not allow the depositor to deposit the funds needed to
cover the check drawn within a reasonable time after presentment in order
to avoid dishonor of said check.
60. What can a bank lawfully do or omit to do without violating its duty
to exercise extraordinary diligence in the handling of deposits?
a. Allowing a crossed check to be cashed provided that the payee is
personally known to the bank.
b. Accepting as deposit a check which is not indorsed by the payee, provided
that the check is a manager’s check.
c. Closing a demand deposit account with prior notice to a depositor who has
been misusing such account repeatedly overdrawing against it.
d. Disclosing information regarding “and/or” savings account where one of
the two depositors has given his written permission for such disclosure.
61. The right to secrecy of bank deposits –
a. Being part of municipal law, does not apply to deposits in branches of
foreign banks in the Philippines.
b. Is a constitutional right which may, however, be regulated by statute.
c. Cannot be invoked in the absence of an express statutory provision.
d. If violated will render the information obtained thereby inadmissible as
evidence in any proceeding against the depositor.
rights?
a. No. Since rebroadcasting and retransmission are forms of copyright
infringement
b. Yes. Since Rebroadcasting and retransmissions are allowed under the must-
carry rule.
c. Rebroadcasting is not a protected intellectual property right due to the
must-carry rule whereas retransmissions are protected copyrights.
d. Rebroadcasting is a protected intellectual property right whereas
retransmissions are not protected copyrights due to the must-carry rule.
65. XX applied for the issuance of a preliminary injunctive order on the ground
that she is entitled to the use of the trademark on product A and its
container based on her copyright and patent over the same. Can she do this?
a. Yes. These are registrable marks
b. No. These are not registrable marks
c. Yes, although its copyrightability and patentability should be registered
separately
d. No. These are rights which are not interchangeable. The granting of one
right will not necessarily apply to the other rights.
66. Which of the following are not included under technology transfer
arrangements under the IP code?
a. the licensing of a new management program in favor of a Philippine
company
b. the exact process of how to create a new and improved child-proof paint
c. the secret ingredient of the KFC srcinal recipe chicken.
d. the use of Windows software in businesses.
a. Upon filing a motion in court, the court shall order for his substitution
as patentee
b. the court shall order for his substitution as patentee, or at the option of
the court, cancel the patent, and award actual and other damages in his
favor if warranted by the circumstances,
c. the court shall order for his substitution as patentee, or at the option of
the true inventor, cancel the patent, and award actual and other damages in
his favor if warranted by the circumstances
d. Upon a petition by the true inventor, cancel the patent, and award actual
and other damages in his favor if warranted by the circumstances.
70.
a. WhereWhich of the following
the subject matter ofare rights is
a patent conferred by a to
a product, patent?
restrain, prohibit
and prevent any unauthorized person or entity from making, using, offering
for sale, selling or importing that product;
b. Where the subject matter of a patent is a process, to restrain, prevent or
prohibit any unauthorized person or entity from using the process, and from
manufacturing, dealing in, using, selling or offering for sale, or
importing any product obtained directly or indirectly from such process.
c. Patent owners shall have the right to assign, or transfer by succession
the patent, and to conclude licensing contracts for the same
d. All of the above
71. Which of the following requisites are not included for an invention to
be patentable?
a. It is New, it has an inventive step, and it does not form part of a prior
art
b. It is New, it has an inventive step, and it is industrially applicable
c. It is new, it does not form part of a prior art and it is registered
d. None of the above
72. A Scientist has managed to create a new breed of pigs by altering its
DNA of which such has never existed prior to such act by the scientist. Is
the pig breed patentable?
a. No. Since it is immoral
b. Yes. Since the pig was created purely by the hand of the scientist
c. No. Since animal breeds are not patentable
d. Yes. Although the animal breeds are not patentable, the essential micro-
biological process is patentable
75. A was able to invent a new type of vehicle. However, B was able to
register the invention first although it was clearly A who was the true
inventor. What remedy may A avail of?
a. He will file a civil case of patent infringement
b. He can file for cancellation of patent plus damages
c. He can file for the substitution as the real patentee
d. Both A and C
76. A medicine already being distributed both in the U.S. and in the
Philippines by distributor VX authorized by the patent holder is now being
imported by A, a doctor who operates a small clinic and is using the drug
for the treatment of his patients. Is A liable for patent infringement?
a. Yes. A is liable since VX is the only authorized distributor of the
patented drug.
b. No. A is not liable since section 72 (1) allows such use of the
product.
77. A has been importing patented medical drugs from Thailand. The patent
is owned by B. B has a local distribution unit in the Philippines. B wants
to file a case of patent infringement and importation of counterfeit drugs
against A. Will this prosper?
a. No. This is a case of fair use
b. Yes. A counterfeit drug is a form of infringement against the patent
of B.
c. No. An unregistered drug is not the same as a counterfeit drug and
also that section 72 (1) allows such importation by a 3rd party.
d. Yes. B has not authorized A to distribute the products.
79. B was selling a product of A who was the patent holder of B’s product.
Apparently, B has been passing A’s patent as his. A filed a criminal case of
infringement against B. will this prosper?
a. Yes. A is the rightful owner of the patent
b. No. B is exempted under the fair use doctrine
c. Yes. A never authorized B to sell such products as his.
d. No. B has yet to be found guilty of a previous infringement, hence A
has no cause of action.
b.
c. No.
Yes.He hasis
This not
a registered his competition.
case of unfair tradename.
d. No. He has not registered his trademark.
84. When testing whether the likelihood of deception has occurred, at what
point of a transaction do we consider such likelihood?
a. After the sale of the item bearing the mark.
b. Prior to the sale of the item bearing the mark.
c. At the point of the sale of the item bearing the mark.
d. None of the above.
D. it
No,is
onnot
allcopyrightable.
cases.
92. Bank accounts maybe garnished by the creditors of the depositor. Which
of the following deposits are exempt from garnishment?
a. Foreign Currency deposits and those exempt by rules of Civil Procedure
like provision for the family for four months.
b. Deposit that have become dormant for a period of ten (10) years.
c. Money or security or other evidence of indebtedness of any kind and
interests thereon with banks, buildings and loan associations.
d. Loans and other credit accommodations with maturities of more than five
(5) years.
93. An Act that vests the Bangko Central ng Pilipinas with the sole power
and authority to issue currency within the territory of the Philippines
a. Act No. 3936 -Private Development Banks
b. R.A. 9302- Thrift Banks Act
c. The New Central Bank Act
d. R.A. 6848- Islamic Investment Bank of the Philippines
94. When may the Anti- Money Laundering Council (AMLC) perform an inquiry
into deposits of a person?
a. For purposes of determining his liabilities.
b. To determine his assets with proper court order.
c. Upon order of the court when there is probable cause that the deposits
are related to crime of unlawful activities defined in R.A. 9194
d. When there is written consent of the depositor.
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REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS – NEW TOPICS
95. The total amount of loans, credit accommodations and guarantees that
may be extended by a bank to any person, partnership, association,
corporation, or other entity is known as CEILING.
What is the percentage required of the net worth of such bank?
a. 20%
b. 30%
c. 25%
d. 35%
96. The BSP upon approval of at least five (5) members of the Monetary
Board, may also grant this kind of loan or advances in the amount not
exceeding 50% of its total deposits and deposits substitutes is known as:
a. Loans without collateral
b. Emergency loans
c. Salary loans
d. Banking loans
97. The powers that may be conferred to the conservator are such powers as
may be necessary in Conservatorship except:
a. To take charge of the assets, liabilities, and the management
b. To reorganize the management of the subject bank
c. To collect all monies and debts due and exercise all powers necessary to
restore its viability
d. All of the above
101. Which of the following statement is not true about the nature of
Banking business?
103. All of the following are exceptions to the Bank Secrecy Law except?
a. Upon order of the competent court in cases involving Graft and Corrupt
Practices Act
b. Examination by an independent auditor hired by the bank
c. The BSP and PDIC to the Corporation and/or Bangko Sentral may inquire
into or examine deposit accounts pursuant to explanation
d. In- camera inspection by the Ombudsman
104. The following are the grounds when the Monetary Board may close a bank
or quasi-bank except?
a. If unable to pay its liabilities (cash flow test)
b. Has insufficient realizable assets to meet its liabilities (balance sheet
test)
c. If cannot continue without involving probable losses to its depositors or
creditors.
d. It persistently conducts business in a sound and safe manner
d. Yes. All notes and coins issued by the Bangko Sentral shall be fully
guaranteed as legal tender in the Philippines unless otherwise fixed by the
Monetary Board, that coins shall be legal tender in amounts not exceeding
Fifty pesos (P50.00) for denominations of Twenty-five centavos and above,
and in amounts not exceeding Twenty pesos (P20.00) for denominations of Ten
centavos or less.
108. Which is
a. The Bangko not true
Sentral about
shall the Bangko
provide policySentral ng Pilipinas?
directions in the areas of money,
banking and credit
b. The Bangko Sentral is hereby authorized to adopt, alter, and use corporate
seal which shall be judicially noticed: to enter into contracts ; to
lease or own real and personal property
c. BSP may compromise, condone or release, in whole or in part , any claim
of or settled liability to the Bangko Sentral regardless of the amount
involved under such term and condition as may be prescribed by the Monetary
Board to protect the interest of the Bangko Sentral
d. The Bangko Sentral may acquire and hold assets and incur such liabilities
in connections with its operations authorized by the provision of RA 7653.
a. Yes, because the book was photocopied without the consent of the author and
used publicly in a classroom.
b. No, because the private reproduction of a published work in a single copy,
where the reproduction is made by a natural person exclusively for research
and private study, shall be permitted, without the authorization of the
owner of copyright in the work.
c. No, because Mr. Dela Cruz reproduced a single copy only, exclusively for
his private study and he did not gain any profit for photocopying some of
the pages of the book.
d. No, because he did not reproduced the whole book but only some of its
pages, it can be permitted even without the consent of the owner of the
copyright.
110. Kris Aquino commissioned Mr. Magaling to write a biography of her late
father, Ninoy Aquino, for a fee. Upon completion of the work, Kris paid Mr.
Magaling the agreed price. The biography was copyrighted. Kris, however,
changed her mind again upon reading the book and decided not to have it
published. Can Kris Aquino sell the property without the consent of Mr.
Magaling?
a. Yes, Kris Aquino can sell the copyrighted biography of her father without
need of securing the consent of Mr. Magaling, the writer of said biography.
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REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS – NEW TOPICS
b. Mr. Magaling entered into a contract with Kris Aquino and having
compensated, he had parted with all his rights to the said book, in effect
making Kris his assignee.
c. The assignee’s rights include the right to sell the work without the
consent of the writer, Mr. Magaling.
d. All of the above
111. Atty. Ana Maganda wrote a legal opinion for a client on the
differences of a probationary, regular, casual and seasonal employee. She
quoted without permission Atty. Aliling’s comment appearing in his book
“Annotations on the Labor Code”, but she indicated the source of the
quotation, the book and the author’s name. Atty Aliling is a labor law
expert. Can Atty. Aliling hold Atty. Ana Maganda liable for infringement of
copyright for quoting a portion of his book without his permission?
a. Yes, because Atty. Ana Maganda copied somebody else’s work without the
srcinal author’s consent.
b. No, because the Intellectual Property Code provides that a quotation from a
copyrighted work can be used for judicial proceedings or for giving
professorial advice by legal practitioner, provided the source are
identified.
c. Yes, because Atty. Ana Maganda used the work of another for her own gain.
d. No, because everybody can quote somebody as long as the source and the name
of the author of the quotation are identified.
112. Read the following statements and determine which of the choices are
correct:
a. Element no. 1
b. Element No. 2
c. Element No. 3
d. All of the above
114. Unilevel Corporation asked your legal advice regarding their plan to
use a trademark with the words “SWEET CANDY” However, there is an existing
and registered trademark using the words “TWEET CANDY” Which of the
following advices are correct.
a. The firm must abandon the plan because another company uses the trademark
Tweet Candy and there is a danger of a suit for infringement. The words
Sweet and Tweet is almost similar in sound and they can confuse or mislead
the public.
b. They can use the SWEET CANDY as long as there will be a very different
packaging and flavors so as not to mislead the public.
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c. Unilevel is a well-known company and their products are patronized country-
wide, they can use the trademark SWEET CANDY because TWEET CANDY is owned
by a small-time company whose market is within Luzon only.
d. None of the above
115. Which of the following works are protected and can be copyrighted?
a. A biography containing your life, love and success.
b. Your musical compositions with or without words.
c. News of the day and other facts having the character of mere press
information.
d. A and B only
116. The Sogod Hotel chain reproduces DVD’s, distributes the copies thereof
to its hotels and makes them available to hotel guests for viewing in the
hotel guest rooms and charges a separate fee for the use of the DVD players.
Is Sogod Hotel liable for infringement?
a. No, the DVD viewing is done privately in the hotel guest rooms.
b. Yes, because the reproduction of the DVD’s violate the copyright or
economic rights of the owner of the film. The hotel charge fees for the use
of DVD player as well as there are room charges, they earn gain from the
use of the DVD because it entices the guests to check-in in their hotel.
c. No, the DVD viewing is part of the hotel services and it is the use of the
DVD players that is charged and not the cost of the DVD.
d. None of the above