Bar Exams 2005

4 September 2005 8 A.M.
— 12 Noon
INSTRUCTIONS
This questionnaire consists of ten (10) numbers contained

in ten (10) pages. Read each question very carefully.
Answer legibly, clearly and concisely. Start each number
on a separate page; an answer to a sub-question under
the same number may be written continuously on the
same and immediately succeeding pages until
completed. Do not repeat the question. A mere “Yes” or
“No” answer without any corresponding discussion will
not be given any credit.
HAND IN YOUR NOTEBOOK WITH THIS QUESTIONNAIRE
GOOD LUCK!!!
_______________________________
CHAIRMAN
2005 BAR EXAMINATION COMMITTEE
PLEASE CHECK THE NUMBER OF PAGES IN THIS SET
WARNING: NOT FOR SALE OR UNAUTHORIZED USE

-I-
(a) The present Constitution introduced the concepts and processes of Initiative
and Referendum. Compare and differentiate one from the other. (3%)
(b) To give the much needed help to the Province of Aurora which was devastated
by typhoons and torrential rains, the President declared it in a “state of calamity.” Give
at least four (4) legal effects of such declaration. (4%)
(c) Enumerate the rights of the coastal state in the exclusive economic zone. (3%)
- II -
(1.) Police Officer Henry Magiting of the Narcotics Section of the Western Police
District applied for a search warrant in the Regional Trial Court of Manila for violation of
Section 11, Article II (Possession of Prohibited Drugs) of Republic Act (R.A.) No. 9165
(Comprehensive Dangerous Drugs Act of 2002) for the search and seizure of heroin in
the cabin of the Captain of the MSS Seastar, a foreign-registered vessel which was
moored at the South Harbor, Manila, its port of destination.
Based on the affidavits of the applicant’s witnesses who were crew members of
the vessel, they saw a box containing ten (10) kilograms of heroin under the bed in the
Captain’s cabin. The RTC found probable cause for the issuance of a search warrant;
nevertheless, it denied the application on the ground that Philippine courts have no
criminal jurisdiction over violations of R.A. No. 9165 committed on foreign-registered
vessels found in Philippine waters.
Is the ruling of the court correct? Support your answer with reasons. (5%)
(2.) The Philippines and Australia entered into a Treaty of Extradition concurred in
by the Senate of the Philippines on September 10, 1990. Both governments have
notified each other that the requirements for the entry into force of the Treaty have been
complied with. It took effect in 1990.
The Australian government is requesting the Philippine government to extradite

its citizen, Gibson, who has committed in his country the indictable offense of Obtaining
Property by Deception in 1985. The said offense is among those enumerated as
extraditable in the Treaty.
For his defense, Gibson asserts that the retroactive application of the extradition
treaty amounts to an ex post facto law. Rule on Gibson’s contention. (5%)
- III -
(1.) Italy, through its Ambassador, entered into a contract with Abad for the
maintenance and repair of specified equipment at its Embassy and Ambassador’s
Residence, such as air conditioning units, generator sets, electrical facilities, water
heaters, and water motor pumps. It was stipulated that the agreement shall be effective
for a period of four years and automatically renewed unless cancelled. Further, it
provided that any suit arising from the contract shall be filed with the proper courts in the
City of Manila.
Claiming that the Maintenance Contract was unilaterally, baselessly and arbitrarily
terminated, Abad sued the State of Italy and its Ambassador before a court in the City of
Manila. Among the defenses they raised were “sovereign immunity” and “diplomatic
immunity”.
(a) As counsel of Abad, refute the defenses of “sovereign immunity” and

“diplomatic immunity” raised by the State of Italy and its Ambassador.
(b) At any rate, what should be the court’s ruling on the said defenses?
(5%)
(2.) Adams and Baker are American citizens residing in the Philippines. Adams
befriended Baker and became a frequent visitor at his house. One day, Adams arrived
with 30 members of the Philippine National Police, armed with a Search Warrant
authorizing the search of Baker’s house and its premises for dangerous drugs being
trafficked to the United States of America.
The search purportedly yielded positive results, and Baker was charged with
Violation of the Dangerous Drugs Act. Adams was the prosecution’s principal witness.
However, for failure to prove his guilt beyond reasonable doubt, Baker was acquitted.
Baker then sued Adams for damages for filing trumped-up charges against him.
Among the defenses raised by Adams is that he has diplomatic immunity, conformably
with the Vienna Convention on Diplomatic Relations. He presented Diplomatic Notes
from the American Embassy stating that he is an agent of the United States Drug
Enforcement Agency tasked with “conducting surveillance operations” on suspected
drug dealers in the Philippines believed to be the source of prohibited drugs being
shipped to the U.S. It was also stated that after having ascertained the target, Adams
would then inform the Philippine narcotic agents to make the actual arrest.
(a) As counsel of plaintiff Baker, argue why his complaint should not be dismissed
on the ground of defendant Adams’ diplomatic immunity from suit.
(b) As counsel of defendant Adams, argue for the dismissal of the complaint.
(5%)
- IV -
(1.) Squatters and vendors have put up structures in an area intended for a
People’s Park, which are impeding the flow of traffic in the adjoining highway. Mayor
Cruz gave notice for the structures to be removed, and the area vacated within a month,
or else, face demolition and ejectment. The occupants filed a case with the
Commission on Human Rights (CHR) to stop the Mayor’s move.
The CHR then issued an “order to desist” against Mayor Cruz with warning that
he would be held in contempt should he fail to comply with the desistance order. When
the allotted time lapsed, Mayor Cruz caused the demolition and removal of the
structures. Accordingly, the CHR cited him for contempt.
(a) What is your concept of Human Rights? Does this case involve violations of
human rights within the scope of the CHR’s jurisdiction?
(b) Can the CHR issue an “order to desist” or restraining order?
(c) Is the CHR empowered to declare Mayor Cruz in contempt? Does it have
contempt powers at all?
(5%)
(2.) In March 2001, while Congress was adjourned, the President appointed
Santos as Chairman of the Commission on Elections. Santos immediately took his oath
and assumed office. While his appointment was promptly submitted to the Commission
on Appointments for confirmation, it was not acted upon and Congress again
adjourned. In June 2001, the President extended a second ad interim appointment to
Santos for the same position with the same term, and this appointment was again
submitted to the Commission on Appointments for confirmation. Santos took his oath
anew and performed the functions of his office.
Reyes, a political rival, filed a suit assailing certain orders issued by Santos. He
also questioned the validity of Santos’ appointment.
Resolve the following issues:
(a) Does Santos’ assumption of office on the basis of the ad interim appointments
issued by the President amount to a temporary appointment which is prohibited by
Section 1(2), Article IX-C of the Constitution?
(b) Assuming the legality of the first ad interim appointment and assumption of
office by Santos, were his second ad interim appointment and subsequent assumption
of office to the same position violations of the prohibition on reappointment under
Section 1(2), Article IX-C of the Constitution?
(5%)
-V-
(1.) Bruno still had several years to serve on his sentence when he was
conditionally pardoned by the President. Among the conditions imposed was that he
would “not again violate any of the penal laws of the Philippines.” Bruno accepted all of
the conditions and was released. Shortly thereafter, Bruno was charged with 20 counts
of estafa. He was then incarcerated to serve the unexpired portion of his sentence
following the revocation by the President of the pardon.
Bruno’s family filed a petition for habeas corpus, alleging that it was error to have
him recommitted as the charges were false, in fact, half of them were already
dismissed.
Resolve the petition with reasons. (4%)
(2.) Ricardo was elected Dean of the College of Education in a State University
for a term of five (5) years unless sooner terminated. Many were not pleased with his
performance. To appease those critical of him, the President created a new position,
that of Special Assistant to the President with the rank of Dean, without reduction in
salary, and appointed Ricardo to said position in the interest of the service.
Contemporaneously, the University President appointed Santos as Acting Dean in place
of Ricardo.
(a) Does the phrase “unless sooner terminated” mean that the position of Ricardo
is terminable at will?
(b) Was Ricardo removed from his position as Dean of the College of Education
or merely transferred to the position of Special Assistant to the President? Explain.
(5%)
(3.) Pedro Masipag filed with the Ombudsman a complaint against RTC Judge
Jose Palacpac with violation of Article 204 of the Revised Penal Code for knowingly
rendering an unjust judgment in Criminal Case No. 617. Judge Palacpac filed a motion
with the Ombudsman to refer the complaint to the Supreme Court to determine whether
an administrative aspect was involved in the said case. The Ombudsman denied the
motion on the ground that no administrative case against Judge Palacpac relative to the
decision in Criminal Case No. 617 was filed and pending in his office.
State with reasons whether the Ombudsman’s ruling is correct. (4%)
- VI -
(1.) The two accepted tests to determine whether or not there is a valid delegation
of legislative power are the Completeness Test and the Sufficient Standard Test.
Explain each. (4%)
(2.) Section 32 of Republic Act No. 4670 (The Magna Carta for Public School
Teachers) reads:
Sec. 32. Penal Provision.―A person who shall willfully interfere

with, restrain or coerce any teacher in the exercise of his rights
guaranteed by this Act or who shall in any other manner commit any act to
defeat any of the provisions of this Act shall, upon conviction, be punished
by a fine of not less than one hundred pesos nor more than one thousand
pesos, or by imprisonment, in the discretion of the court.
Is the proviso granting the court the authority to impose a penalty of imprisonment
in its discretion constitutional? Explain briefly. (4%)
- VII -
(1.) State with reason(s) whether bail is a matter of right or a matter of discretion
in the following cases:
(a) The imposable penalty for the crime charged is reclusion perpetua and the
accused is a minor;
(b) The imposable penalty for the crime charged is life imprisonment and the
accused is a minor;
(c) The accused has been convicted of homicide on a charge of murder and
sentenced to suffer an indeterminate penalty of from eight (8) years and one (1) day of
prision mayor, as minimum, to twelve (12) years and four (4) months of reclusion
temporal, as maximum.
(4%)
(2.) State with reason(s) which of the following is a government agency or a

government instrumentality:
(a) Department of Public Works and Highway;
(b) Bangko Sentral ng Pilipinas;
(c) Philippine Ports Authority;

(d) Land Transportation Office;
(e) Land Bank of the Philippines.
(5%)
- VIII -
(1.) Mariano was arrested by the NBI as a suspect in the shopping mall
bombings. Advised of his rights, Mariano asked for the assistance of his relative, Atty.
Santos. The NBI noticed that Atty. Santos was inexperienced, incompetent and
inattentive. Deeming him unsuited to protect the rights of Mariano, the NBI dismissed
Atty. Santos. Appointed in his place was Atty. Barroso, a bar topnotcher who was in the
premises visiting a relative. Atty. Barroso ably assisted Mariano when the latter gave a
statement. However, Mariano assailed the investigation claiming that he was deprived
of counsel of his choice.
Was the NBI correct in dismissing Atty. Santos and appointing Atty. Barroso in his
stead? Is Mariano’s statement, made with the assistance of Atty. Barroso, admissible in
evidence? (5%)
(2.) Emilio had long suspected that Alvin, his employee, had been passing trade
secrets to his competitor, Randy, but he had no proof. One day, Emilio broke open the
desk of Alvin and discovered a letter wherein Randy thanked Alvin for having passed on
to him vital trade secrets of Emilio. Enclosed in the letter was a check for P50,000.00
drawn against the account of Randy and payable to Alvin. Emilio then dismissed Alvin
from his employment. Emilio’s proof of Alvin’s perfidy are the said letter and check
which are objected to as inadmissible for having been obtained through an illegal
search. Alvin filed a suit assailing his dismissal.
Rule on the admissibility of the letter and check. (5%)
- IX -
(1.) In the May 8, 1995 elections for local officials whose terms were to
commence on June 30, 1995, Ricky filed on March 20, 1995 his certificate of candidacy
for the Office of Governor of Laguna. He won, but his qualifications as an elected
official was questioned. It is admitted that he is a repatriated Filipino citizen and a
resident of the Province of Laguna.
To be qualified for the office to which a local official has been elected, when at the
latest should he be:
(a) A Filipino Citizen? Explain.
(b) A resident of the locality? Explain.
(5%)
(2.) Manuel was elected Mayor of the Municipality of Tuba in the elections of
1992, 1995 and 1998. He fully served his first two terms, and during his third term, the
municipality was converted into the component City of Tuba. The said charter provided
for a hold-over and so without interregnum Manuel went on to serve as the Mayor of the
City of Tuba.
In the 2001 elections, Manuel filed his certificate of candidacy for City Mayor. He
disclosed, though, that he had already served for three consecutive terms as elected
Mayor when Tuba was still a municipality. He also stated in his certificate of candidacy
that he is running for the position of Mayor for the first time now that Tuba is a city.
Reyes, an adversary, ran against Manuel and petitioned that he be disqualified

because he had already served for three consecutive terms as Mayor. The petition was
not timely acted upon, and Manuel was proclaimed the winner with 20,000 votes over
the 10,000 votes received by Reyes as the only other candidate. It was only after
Manuel took his oath and assumed office that the COMELEC ruled that he was
disqualified for having ran and served for three consecutive terms.
(a) As lawyer of Manuel, present the possible arguments to prevent his

disqualification and removal.
(b) How would you rule on whether or not Manuel is eligible to run as Mayor of
the newly-created City of Tuba immediately after having already served for three (3)
consecutive terms as Mayor of the Municipality of Tuba?
(c) Assuming that Manuel is not an eligible candidate, rebut Reyes’ claim that he
should be proclaimed as winner having received the next higher number of votes.
(5%)
-X-
(1.) There was a boundary dispute between Dueñas, a municipality, and Passi, an
independent component city, both of the same province.
State how the two local government units should settle their boundary dispute.
(5%)
(2.) The Sangguniang Bayan of the Municipality of Santa, Ilocos Sur passed
Resolution No. 1 authorizing its Mayor to initiate a petition for the expropriation of a lot
owned by Christina as site for its municipal sports center. This was approved by the
Mayor. However, the Sangguniang Panlalawigan of Ilocos Sur disapproved the
Resolution as there might still be other available lots in Santa for a sports center.
Nonetheless, the Municipality of Santa, through its Mayor, filed a complaint for
eminent domain. Christina opposed this on the following grounds: (a) the Municipality
of Santa has no power to expropriate; (b) Resolution No. 1 has been voided since the
Sangguniang Panlalawigan disapproved it for being arbitrary; and (c) the Municipality of
Santa has other and better lots for that purpose.
Resolve the case with reasons. (5%)
NOTHING FOLLOWS.
4 September 2005 2 P.M. — 5 P.M.
INSTRUCTIONS
This questionnaire consists of nine (9) numbers contained

in nine (9) pages. Read each question very carefully.
Answer legibly, clearly and concisely. Start each number
on a separate page; an answer to a sub-question under
the same number may be written continuously on the
same and immediately succeeding pages until
completed. Do not repeat the question. A mere “Yes” or
“No” answer without any corresponding discussion will
not be given any credit.

GOOD LUCK!!!
____________________________________
CHAIRMAN
2005 BAR EXAMINATION
COMMITTEE

-I-
(1.) As Human Resources Department (HRD) manager of EZ

Components, an unorganized manufacturer of electric and electronic
components for household appliances, you are suddenly confronted with
demands for recognition and collective bargaining negotiations from two
competing labor unions. They both claim to represent all the rank-and-file
employees. Union A is led by a moderate faction, while Union B is affiliated
with a militant federation identified with leftist ideology.
Which of the following courses of action should you take to best

protect the interests of your company and employees?
(a) Recognize Union A as the rightful bargaining representative

because it will be more reasonable to deal with;
(b) Recognize Union B because you do not want to antagonize its

leftist connections and foment inter-union conflicts;
(c) Ignore the demands of either union since you cannot be

compelled legally to deal with them at this stage; or
(d) Petition the Bureau of Labor Relations to conduct a certification

election to determine which union really represents the majority of the
employees in the bargaining unit;
(10%)
(2.) Little Hands Garment Company, an unorganized manufacturer of

children’s apparel with around 1,000 workers, suffered losses for the first
time in history when its US and European customers shifted their huge
orders to China and Bangladesh. The management informed its employees
that it could no longer afford to provide transportation shuttle services.
Consequently, it announced that a nominal fare would be charged
depending on the distance traveled by the workers availing of the service.
Was the Little Hands Garments Company within its rights to withdraw
this benefit which it had unilaterally been providing to its employees?
Select the best answer(s) and briefly explain your reason(s) therefor.
(a) Yes, because it can withdraw a benefit that is unilaterally given;
(b) Yes, because it is suffering losses for the first time;
(c) Yes, because this is a management prerogative which is not due

to any legal or contractual obligation;
(d) No, because this amounts to a diminution of benefits which is

prohibited by the Labor Code;
(e) No, because it is a fringe benefit that has already ripened into a
demandable right or entitlement.
(10%)
- II -
(1.) During the open forum following your lecture to a group of

managers and HRD personnel, you were asked the following questions:
(a) What qualifying circumstances will convert “illegal recruitment” to

“economic sabotage,” thus subjecting its perpetrator or perpetrators to a
penalty of life imprisonment and a fine of at least P500,000.00? (3%)
(b) Is the commission of an unfair labor practice by an employer

subject to criminal prosecution? (3%)
(c) How are the “portability” provisions of Republic Act No. 7699
beneficial or advantageous to SSS and GSIS members in terms of their
creditable employment services in the private sector or the government, as
the case may be, for purposes of death, disability or retirement? (3%)
Please explain your answers briefly.

(2.) Mariano Martillo was a mason employed by the ABC
Construction Company. Every time that ABC had a project, it would enter
into an employment contract with Martillo for a fixed period that coincided
with the need for his services, usually for a duration of three to six months.
Since the last project involved the construction of a 40-storey
building, Martillo was contracted for 14 months. During this period, ABC
granted wage increases to its regular employees, composed mostly of
engineers and rank-and-file construction workers as a result of the just
concluded CBA negotiations. Feeling aggrieved and discriminated against,
Martillo and other similarly-situated project workers demanded that the
increases be extended to them, inasmuch as they should now be
considered regular employees and members of the bargaining unit.
(a) If you were ABC’s legal counsel, how would you respond to this
demand?
(b) How is a project worker different from a casual or contractual

worker?
Briefly explain your answers. (6%)
- III -
(1.) Antonio Antuquin, a security guard, was caught sleeping on the

job while on duty at the Yosi Cigarette Factory. As a result, he was
dismissed from employment by the Wagan Security Agency, an
independent contractor. At the time of his dismissal, Antonio had been
serving as a watchman in the factory for many years, often at stretches of
up to 12 hours, even on Sundays and holidays, without overtime, nighttime
and rest day benefits. He thereafter filed a complaint for illegal dismissal
and non-payment of benefits against Yosi Cigarette Factory, which he
claimed was his actual and direct employer.
As the Labor Arbiter assigned to hear the case, how would you
correctly resolve the following:
(a) Antonio’s charge of illegal dismissal; and
(b) Antonio’s claim for overtime and other benefits.
(6%)
(2.) Mans Weto had been an employee of Nopolt Assurance Company
for the last ten (10) years. His wife of six (6) years died last year. They
had four (4) children. He then fell in love with Jovy, his co-employee, and
they got married.
In October this year, Weto’s new wife is expected to give birth to her
first child. He has accordingly filed his application for paternity leave,
conformably with the provisions of the Paternity Leave Law which took
effect in 1996. The HRD manager of the assurance firm denied his
application, on the ground that Weto had already used up his entitlement
under that law. Weto argued that he has a new wife who will be giving birth
for the first time, therefore, his entitlement to paternity leave benefits would
begin to run anew.
(a) Whose contention is correct, Weto or the HRD manager?
(b) Is Jovy entitled to maternity leave benefits?
(6%)
- IV -
(1.) Malyn Vartan is a well-known radio-TV talk show host. She

signed a contract with XYZ Entertainment Network to host a one-hour daily
talk show where she interviews various celebrities on topical subjects that
she herself selects. She was paid a monthly remuneration of P300,000.00.
The program had been airing for almost two years when sponsors’
advertising revenues dwindled, constraining the network to cancel the show
upon the expiration of its latest contract with Ms. Vartan. The talk-show host
protested the discontinuance of her monthly talent fee, claiming that it was
tantamount to her illegal dismissal from the network since she has already
attained the status of a regular employee.
(a) As the network’s legal counsel, how would you justify its decision
to cancel Ms. Vartan’s program which in effect terminated her services in
the process?
(b) As counsel for the talk-show host, how would you argue your
case?
(6%)
-V-
During the open forum following your lecture before members of

various unions affiliated with a labor federation, you were asked the
following questions:
(a) Araw ng Kagitingan and Good Friday are among the 10 paid
regular holidays under Article 94 of the Labor Code. How much will an
employee receive when both holidays fall on the same day? (4%)
(b) May a rank-and-file employee, who is not a member of the union

representing his bargaining unit, avail of the wage increases which the
union negotiated for its members? (4%)
(c) What is meant by “payroll reinstatement” and when does it apply?

(4%)
(d) Under what conditions may a “compressed work week” schedule

be legally authorized as an exception to the “eight-hour a day” requirement
under the Labor Code? (4%)
State your answers and your reasons therefor.
- VI -
A group of employees in XYZ Factory belonging to a religious sect, in

conformity with the teachings and dictates of their religion, refused to join
the labor union in the factory. The labor union was able to negotiate a
substantial wage increase in its collective bargaining agreement with
management. A provision therein stated that the wage increase would be
paid to the members of the union only in view of a “closed shop” union
security clause in the new agreement. The members of the sect protested
and demanded that the wage increase be extended to them. The officers of
the union countered by demanding their termination from the company
pursuant to the “closed shop” provision in the just-concluded CBA.
(a) Is the CBA provision valid?
(b) Should the company comply with the union’s demand of

terminating the members of the religious sect?
(6%)
- VII -
(1.) Ricky Marvin had worked for more than ten (10) years in IGB
Corporation. Under the terms of the personnel policy on retirement, any
employee who had reached the age of 65 and completed at least ten (10)
years of service would be compulsorily retired and paid 30 days’ pay for
every year of service.
Ricky Marvin, whose immigrant visa to the USA had just been
approved, celebrated his 60th birthday recently. He decided to retire and
move to California where the son who petitioned him had settled. The
company refused to grant him any retirement benefits on the ground that
he had not yet attained the compulsory retirement age of 65 years as
required by its personnel policy; moreover, it did not have a policy on
optional or early retirement.
Taking up the cudgels for Ricky Marvin, the union raised the issue in
the grievance machinery as stipulated in the CBA. No settlement was
arrived at, and the matter was referred to voluntary arbitration.
If you were the Voluntary Arbitrator, how would you decide? Briefly
explain the reasons for your award. (5%)
(2.) Carissa, a comely bank teller, was due for her performance
evaluation which is conducted every six months. A rating of “outstanding” is
rewarded with a merit increase. She was given a “below average” rating in
the last two periods. According to the bank’s personnel policy, a third rating
of “below average” will result in termination. Mr. Perry Winkle called Carissa
into his office a few days before submitting her performance ratings. He
invited her to spend the night with him in his rest house. She politely
declined. Undaunted, Mr. Winkle renewed his invitation, and Carissa again
declined. He then warned her to “watch out” because she might regret it
later on. A few days later, Carissa found that her third and last rating was
again “below average.”
Carissa then filed a complaint for sexual harassment against Mr.

Winkle with the Department of Labor and Employment. In his counter-
affidavit, he claimed that he was enamored with Carissa. He denied having
demanded, much less received any sexual favors from her in consideration
of giving her an “outstanding” rating. He also alleged that the complaint was
premature because Carissa failed to refer the matter to the Committee on
Decorum and Discipline for investigation and resolution before the case
against him was filed. In her reply affidavit, Carissa claimed that there was
no need for a prior referral to the Committee on Decorum and Discipline of
her complaint.
- VIII -
(1.) Odeck, a policeman, was on leave for a month. While resting in

their house, he heard two of his neighbors fighting with each other. Odeck
rushed to the scene intending to pacify the protagonists. However, he was
shot to death by one of the protagonists. Zhop, a housemaid, was Odeck’s
surviving spouse whom he had abandoned for another woman years back.
When she learned of Odeck’s death, Zhop filed a claim with the GSIS for
death benefits. However, her claim was denied because (a) when Odeck
was killed, he was on leave; and (b) she was not the dependent spouse of
Odeck when he died.
Resolve with reasons whether GSIS is correct in denying the claim.

(5%)
(2.) Maryrose Ganda’s application for the renewal of her license to

recruit workers for overseas employment was still pending with the
Philippine Overseas Employment Administration (POEA). Nevertheless,
she recruited Alma and her three sisters, Ana, Joan and Mavic, for
employment as housemaids in Saudi Arabia. Maryrose represented to the
sisters that she had a license to recruit workers for overseas employment.
Maryrose also demanded and received P30,000.00 from each of them for
her services. However, Maryrose’s application for the renewal of her
license was denied, and consequently failed to employ the four sisters in
Saudi Arabia.
The sisters charged Maryrose with large scale illegal recruitment.

Testifying in her defense, Maryrose declared that she acted in good faith
because she believed that her application for the renewal of her license
would be approved. Maryrose adduced in evidence the Affidavits of
Desistance which the four private complainants had executed after the
prosecution rested its case. In the said affidavits, they acknowledged
receipt of the refund by Maryrose of the total amount of P120,000.00 and
indicated that they were no longer interested to pursue the case against
Maryrose.
- IX -
Kitchie Tempo was one of approximately 500 production operators at

HITEC Semiconductors, Inc., an export-oriented enterprise whose business
depended on orders for computer chips from overseas. She was hired as a
contractual employee four years ago. Her contracts would be for a duration
of five (5) months at a time, usually after a one-month interval. Her re-hiring
was contingent on her performance for the immediately preceding contract.
Six months after the expiration of her last contract, Kitchie went to
HITEC’s personnel department to inquire why she was not yet being
recalled for another temporary contract. She was told that her performance
during her last stint was “below average.”
Since there was no union to represent her, Kitchie seeks your advice
as a labor lawyer about her chances of getting her job back. What will your
advice be? (5%)
NOTHING FOLLOWS.
11 September 2005 8 A.M. — 12 Noon
INSTRUCTIONS
This questionnaire consists of sixteen (16) numbers

contained in nine (9) pages. Read each question very
carefully. Answer legibly, clearly and concisely. Start
each number on a separate page; an answer to a sub-
question under the same number may be written
continuously on the same and immediately succeeding
pages until completed. Do not repeat the question.
GOOD LUCK!!!
____________________________________
CHAIRMAN

-I-
Gabby and Mila got married at Lourdes Church in Quezon City on

July 10, 1990. Prior thereto, they executed a marriage settlement whereby
they agreed on the regime of conjugal partnership of gains. The marriage
settlement was registered in the Register of Deeds of Manila, where Mila is
a resident. In 1992, they jointly acquired a residential house and lot, as
well as a condominium unit in Makati. In 1995, they decided to change
their property relations to the regime of complete separation of property.
Mila consented, as she was then engaged in a lucrative business. The
spouses then signed a private document dissolving their conjugal
partnership and agreeing on a complete separation of property.
Thereafter, Gabby acquired a mansion in Baguio City, and a 5-

hectare agricultural land in Oriental Mindoro, which he registered
exclusively in his name.
In the year 2000, Mila’s business venture failed, and her creditors
sued her for P10,000,000.00. After obtaining a favorable judgment, the
creditors sought to execute on the spouses’ house and lot and
condominium unit, as well as Gabby’s mansion and agricultural land.
a) Discuss the status of the first and the amended marriage

settlements. (2%)
b) Discuss the effect/s of the said settlements on the properties

acquired by the spouses. (2%)
c) What properties may be held answerable for Mila’s obligations?

Explain. (2%)
- II -
In 1985, Sonny and Lulu, both Filipino citizens, were married in the
Philippines. In 1987, they separated, and Sonny went to Canada, where
he obtained a divorce in the same year. He then married another Filipina,
Auring, in Canada on January 1, 1988. They had two sons, James and
John. In 1990, after failing to hear from Sonny, Lulu married Tirso, by
whom she had a daughter, Verna. In 1991, Sonny visited the Philippines
where he succumbed to heart attack.
a) Discuss the effect of the divorce obtained by Sonny and Lulu in

Canada. (2%)
b) Explain the status of the marriage between Sonny and Auring.

(2%)
c) Explain the status of the marriage between Lulu and Tirso.

(2%)
d) Explain the respective filiation of James, John and Verna.

(2%)
e) Who are the heirs of Sonny? Explain. (2%)
- III -
Emil, the testator, has three legitimate children, Tom, Henry and
Warlito; a wife named Adette; parents named Pepe and Pilar; an illegitimate
child, Ramon; brother, Mark; and a sister, Nanette. Since his wife Adette is
well-off, he wants to leave to his illegitimate child as much of his estate as
he can legally do. His estate has a net amount of P1,200,000.00, and all
the above-named relatives are still living. Emil now comes to you for
advice in making a will.
How will you distribute his estate according to his wishes without
violating the law on testamentary succession? (5%)
- IV -
Steve was married to Linda, with whom he had a daughter, Tintin.

Steve fathered a son with Dina, his secretary of 20 years, whom Dina
named Joey, born on September 20, 1981. Joey’s birth certificate did not
indicate the father’s name. Steve died on August 13, 1993, while Linda
died on December 3, 1993, leaving their legitimate daughter, Tintin, as sole
heir. On May 16, 1994, Dina filed a case on behalf of Joey, praying that the
latter be declared an acknowledged illegitimate son of Steve and that Joey
be given his share in Steve’s estate, which is now being solely held by
Tintin. Tintin put up the defense that an action for recognition shall only be
filed during the lifetime of the presumed parents and that the exceptions
under Article 285 of the Civil Code do not apply to him since the said article
has been repealed by the Family Code. In any case, according to Tintin,
Joey’s birth certificate does not show that Steve is his father.
a) Does Joey have a cause of action against Tintin for recognition

and partition? Explain. (2%)
b) Are the defenses set up by Tintin tenable? Explain. (2%)
c) Supposing that Joey died during the pendency of the action,

should the action be dismissed? Explain. (2%)
-V-
In 1984, Eva, a Filipina, went to work as a nurse in the USA. There,

she met and fell in love with Paul, an American citizen, and they got
married in 1985. Eva acquired American citizenship in 1987. During their
sojourn in the Philippines in 1990, they filed a joint petition for the adoption
of Vicky, a 7-year old daughter of Eva’s sister. The government, through
the Office of the Solicitor General, opposed the petition on the ground that
the petitioners, being both foreigners, are disqualified to adopt Vicky.
a) Is the government’s opposition tenable? Explain. (2%)
b) Would your answer be the same if they sought to adopt Eva’s

illegitimate daughter? Explain. (2%)
c) Supposing that they filed the petition to adopt Vicky in the year
2000, will your answer be the same? Explain. (2%)
- VI -
Hans Herber, a German national, and his Filipino wife, Rhoda, are
permanent residents of Canada. They desire so much to adopt Magno, an
8-year old orphaned boy and a baptismal godson of Rhoda. Since the
accidental death of Magno’s parents in 2004, he has been staying with his
aunt who, however, could hardly afford to feed her own family.
Unfortunately, Hans and Rhoda cannot come to the Philippines to adopt
Magno although they possess all the qualifications as adoptive parents.
Is there a possibility for them to adopt Magno? How should they go

about it? (5%)
- VII -
Don was the owner of an agricultural land with no access to a public

road. He had been passing through the land of Ernie with the latter’s
acquiescence for over 20 years. Subsequently, Don subdivided his
property into 20 residential lots and sold them to different persons. Ernie
blocked the pathway and refused to let the buyers pass through his land.
a) Did Don acquire an easement of right of way? Explain. (2%)
b) Could Ernie close the pathway and refuse to let the buyers pass?
Give reasons. (2%)
c) What are the rights of the lot buyers, if any? Explain. (2%)
- VIII -
State with reason whether each of the following is a nuisance, and if

so, give its classification, whether public or private:
a) A squatter’s hut (1%)

b) A swimming pool (1%)
c) A house of prostitution (1%)
d) A noisy or dangerous factory in a private land (1%)
e) Uncollected garbage (1%)
- IX -
Marvin offered to construct the house of Carlos for a very reasonable

price of P900,000.00, giving the latter 10 days within which to accept or
reject the offer. On the fifth day, before Carlos could make up his mind,
Marvin withdrew his offer.
a) What is the effect of the withdrawal of Marvin’s offer? (2%)
b) Will your answer be the same if Carlos paid Marvin P10,000.00 as

consideration for that option? Explain. (2%)
c) Supposing that Carlos accepted the offer before Marvin could

communicate his withdrawal thereof? Discuss the legal consequences.
(2%)
-X-
Bernie bought on installment a residential subdivision lot from

DEVLAND. After having faithfully paid the installments for 48 months,
Bernie discovered that DEVLAND had failed to develop the subdivision in
accordance with the approved plans and specifications within the time
frame in the plan. He thus wrote a letter to DEVLAND informing it that he
was stopping payment. Consequently, DEVLAND cancelled the sale and
wrote Bernie, informing him that his payments are forfeited in its favor.
a) Was the action of DEVLAND proper? Explain. (2%)

b) Discuss the rights of Bernie under the circumstances. (2%)
c) Supposing DEVLAND had fully developed the subdivision but

Bernie failed to pay further installments after 4 years due to business
reverses. Discuss the rights and obligations of the parties. (2%)
- XI -
Before he left for Riyadh to work as a mechanic, Pedro left his

Adventure van with Tito, with the understanding that the latter could use it
for one year for his personal or family use while Pedro works in Riyadh. He
did not tell Tito that the brakes of the van were faulty. Tito had the van
tuned up and the brakes repaired. He spent a total amount of P15,000.00.
After using the vehicle for two weeks, Tito discovered that it consumed too
much fuel. To make up for the expenses, he leased it to Annabelle.
Two months later, Pedro returned to the Philippines and asked Tito to
return the van. Unfortunately, while being driven by Tito, the van was
accidentally damaged by a cargo truck without his fault.
a) Who shall bear the P15,000.00 spent for the repair of the van?
Explain. (2%)
b) Who shall bear the costs for the van’s fuel, oil and other materials
while it was with Tito? Explain. (2%)
c) Does Pedro have the right to retrieve the van even before the
lapse of one year? Explain. (2%)
d) Who shall bear the expenses for the accidental damage caused
by the cargo truck, granting that the truck driver and truck owner are
insolvent? Explain. (2%)
- XII -
On July 14, 2004, Pedro executed in favor of Juan a Deed of
Absolute Sale over a parcel of land covered by TCT No. 6245. It appears
in the Deed of Sale that Pedro received from Juan P120,000.00 as
purchase price. However, Pedro retained the owner’s duplicate of said
title. Thereafter, Juan, as lessor, and Pedro, as lessee, executed a contract
of lease over the property for a period of one (1) year with a monthly rental
of P1,000.00. Pedro, as lessee, was also obligated to pay the realty taxes
on the property during the period of lease.
Subsequently, Pedro filed a complaint against Juan for the

reformation of the Deed of Absolute Sale, alleging that the transaction
covered by the deed was an equitable mortgage. In his verified answer to
the complaint, Juan alleged that the property was sold to him under the
Deed of Absolute Sale, and interposed counterclaims to recover
possession of the property and to compel Pedro to turn over to him the
owner’s duplicate of title.
- XIII -
Rod, the owner of an FX taxi, found in his vehicle an envelope

containing TCT No. 65432 over a lot registered in Cesar’s name. Posing
as Cesar, Rod forged Cesar’s signature on a Deed of Sale in Rod’s favor.
Rod registered the said document with the Register of Deeds, and obtained
a new title in his name. After a year, he sold the lot to Don, a buyer in good
faith and for value, who also registered the lot in his name.
a) Did Rod acquire title to the land? Explain. (2%)
b) Discuss the rights of Don, if any, over the property. (2%)
c) In an ejectment case filed by Don against Cesar, can the latter ask
for the cancellation of Don’s title considering that he (Cesar) is the rightful
owner of the lot? Explain. (2%)
- XIV -
Under a written contract dated December 1, 1989, Victor leased his

land to Joel for a period of five (5) years at a monthly rental of P1,000.00,
to be increased to P1,200.00 and P1,500.00 on the third and fifth year,
respectively. On January 1, 1991, Joel subleased the land to Conrad for a
period of two (2) years at a monthly rental of P1,500.00.
On December 31, 1992, Joel assigned the lease to his compadre,

Ernie, who acted on the belief that Joel was the rightful owner and
possessor of the said lot. Joel has been faithfully paying the stipulated
rentals to Victor. When Victor learned on May 15, 1992 about the sublease
and assignment, he sued Joel, Conrad and Ernie for rescission of the
contract of lease and for damages.
a) Will the action prosper? If so, against whom? Explain. (2%)
b) In case of rescission, discuss the rights and obligations of the

parties. (2%)
- XV -
Under the law on quasi-delict, aside from the persons who caused
injury to persons, who else are liable under the following circumstances:
a) When a 7-year-old boy injures his playmate while playing with his
father’s rifle. Explain. (2%)
b) When a domestic helper, while haggling for a lower price with a

fish vendor in the course of buying foodstuffs for her employer’s family,
slaps the fish vendor, causing her to fall and sustain injuries. Explain. (2%)
c) A carpenter in a construction company accidentally hits the right

foot of his co-worker with a hammer. Explain. (2%)
d) A 15-year-old high school student stabs his classmate who is his
rival for a girl while they were going out of the classroom after their last
class. Explain. (2%)
e) What defense, if any, is available to them? (2%)
XVI
Dr. and Mrs. Almeda are prominent citizens of the country and are
frequent travelers abroad. In 1996, they booked round-trip business class
tickets for the Manila-Hong Kong-Manila route of the Pinoy Airlines, where
they are holders of Gold Mabalos Class Frequent Flier cards. On their
return flight, Pinoy Airlines upgraded their tickets to first class without their
consent and, inspite of their protestations to be allowed to remain in the
business class so that they could be with their friends, they were told that
the business class was already fully booked, and that they were given
priority in upgrading because they are elite members/holders of Gold
Mabalos Class cards. Since they were embarrassed at the discussions
with the flight attendants, they were forced to take the flight at the first class
section apart from their friends who were in the business class. Upon their
return to Manila, they demanded a written apology from Pinoy Airlines.
When it went unheeded, the couple sued Pinoy Airlines for breach of
contract claiming moral and exemplary damages, as well as attorney’s
fees.
Will the action prosper? Give reasons. (5%)
NOTHING FOLLOWS
11 September 2005 2 P.M. — 5 P.M.
INSTRUCTIONS
This questionnaire consists of fourteen (14) numbers

contained in eight (8) pages. Read each question very
GOOD LUCK!!!
____________________________________
CHAIRMAN

-I-
a) Describe the power of taxation. May a legislative body enact laws

to raise revenues in the absence of a constitutional provision granting said
body the power to tax? Explain.
b) May taxes be the subject of set-off or compensation? Explain.
c) Can an assessment for a local tax be the subject of set-off or

compensation against a final judgment for a sum of money obtained by the
taxpayer against the local government that made the assessment?
Explain.
d) Is a deficiency tax assessment a bar to a claim for tax refund or

tax credit? Explain.
e) Is the approval of the court, sitting as probate or estate settlement

court, required in the enforcement and collection of estate tax? Explain.
(10%)
- II -
(1.) Explain briefly whether the following items are taxable or non-
taxable:
a) Income from jueteng;
b) Gain arising from expropriation of property;
c) Taxes paid and subsequently refunded;

d) Recovery of bad debts previously charged off;
e) Gain on the sale of a car used for personal purposes.
(5%)
(2.) State and discuss briefly whether the following cases may be
compromised or may not be compromised:
a) Delinquent accounts;
b) Cases under administrative protest, after issuance of the

final assessment notice to the taxpayer, which are still
pending;
c) Criminal tax fraud cases;
d) Criminal violations already filed in court;
e) Cases where final reports of reinvestigation or

reconsideration have been issued resulting in the reduction
of the original assessment agreed to by the taxpayer when
he signed the required agreement form.
(5%)
- III -
(1.) A city outside of Metro Manila plans to enact an ordinance that

will impose a special levy on idle lands located in residential subdivisions
within its territorial jurisdiction in addition to the basic real property tax. If
the lot owners of a subdivision located in the said city seek your legal
advice on the matter, what would your advice be? Discuss.
(5%)
(2.) a) State and explain the basis of dutiable value of an imported
article subject to an ad valorem tax under the Tariff and Customs Code.
b) Distinguish countervailing duty from dumping duty.
(5%)
(3.) Jacob, after serving a 5-year tour of duty as military attaché in

Jakarta, returned to the Philippines bringing with him his personal effects
including a personal computer and a car. Would Jacob be liable for taxes
on these items? Discuss fully.
(5%)
- IV -
(1.) State with reasons the tax treatment of the following in the
preparation of annual income tax returns:
a) Proceeds of life insurance received by a child as irrevocable

beneficiary;
b) 13th month pay and de minimis benefits;
c) Dividends received by a domestic corporation from (i) another

domestic corporation; and (ii) a foreign corporation;
d) Interest on deposits with (i) BPI Family Bank; and (ii) a local
offshore banking unit of a foreign bank;
e) Income realized from sale of (i) capital assets; and (ii) ordinary
assets.
(5%)
(2.) a) State the conditions required by the Tax Code before the
Commissioner of Internal Revenue could authorize the refund or credit of
taxes erroneously or illegally received.
b) Does a withholding agent have the right to file an application for

tax refund? Explain.
(5%)
-V-
A taxpayer received a tax deficiency assessment of P1.2 Million from

the BIR demanding payment within 10 days, otherwise, it would collect
through summary remedies. The taxpayer requested for a reconsideration
stating the grounds therefor. Instead of resolving the request for
reconsideration, the BIR sent a Final Notice Before Seizure to the taxpayer.
May this action of the Commissioner of Internal Revenue be deemed

a denial of the request for reconsideration of the taxpayer to entitle him to
appeal to the Court of Tax Appeals? Decide with reasons.
(5%)
- VI -
Danilo, who is engaged in the trading business, entrusted to his

accountant the preparation of his income tax return and the payment of the
tax due. The accountant filed a falsified tax return by underdeclaring the
sales and overstating the expense deductions by Danilo.
Is Danilo liable for the deficiency tax and the penalties thereon?
What is the liability, if any, of the accountant? Discuss.
(5%)
- VII -
An international airline with no landing rights in the Philippines sold

tickets in the Philippines for air transportation. Is income derived from such
sales of tickets considered taxable income of the said international air
carrier from Philippine sources under the Tax Code? Explain.
(5%)
- VIII -
JR was a passenger of an airline that crashed. He survived the

accident but sustained serious physical injuries which required
hospitalization for 3 months. Following negotiations with the airline and its
insurer, an agreement was reached under the terms of which JR was paid
the following amounts: P500,000.00 for his hospitalization; P250,000.00 as
moral damages; and P300,000.00 for loss of income during the period of
his treatment and recuperation. In addition, JR received from his employer
the amount of P200,000.00 representing the cash equivalent of his earned
vacation and sick leaves.
Which, if any, of the amounts he received are subject to income tax?

Explain.
(5%)
- IX -
Company A decides to close its operations due to continuing losses

and to terminate the services of its employees. Under the Labor Code,
employees who are separated from service for such cause are entitled to a
minimum of one-half month pay for every year of service. Company A paid
the equivalent of one month pay for every year of service and the cash
equivalent of unused vacation and sick leaves as separation benefits.
Are such benefits taxable and subject to withholding tax under the
Tax Code? Decide with reasons.
(5%)
-X-
The Roman Catholic Church owns a 2-hectare lot in a town in Tarlac

province. The southern side and middle part are occupied by the Church
and a convent, the eastern side by a school run by the Church itself, the
southeastern side by some commercial establishments, while the rest of
the property, in particular the northwestern side, is idle or unoccupied.
May the Church claim tax exemption on the entire land? Decide with
reasons.
(5%)
- XI -
An alien employee of the Asian Development Bank (ADB) who is

retiring soon has offered to sell his car to you which he imported tax-free for
his personal use. The privilege of exemption from tax is granted to
qualified personal use under the ADB Charter which is recognized by the
tax authorities. If you decide to purchase the car, is the sale subject to
tax? Explain.
(5%)
- XII -
Ralph Donald, an American citizen, was a top executive of a U.S.

company in the Philippines until he retired in 1999. He came to like the
Philippines so much that following his retirement, he decided to spend the
rest of his life in the country. He applied for and was granted a permanent
resident status the following year. In the spring of 2004, while vacationing
in Orlando, Florida, USA, he suffered a heart attack and died. At the time
of his death, he left the following properties: (a) bank deposits with Citibank
Makati and Citibank Orlando, Florida; (b) a resthouse in Orlando, Florida;
(c) a condominium unit in Makati; (d) shares of stock in the Philippine
subsidiary of the U.S. Company where he worked; (e) shares of stock in
San Miguel Corp. and PLDT; (f) shares of stock in Disney World in Florida;
(g) U.S. treasury bonds; and (g) proceeds from a life insurance policy
issued by a U.S. corporation.
Which of the foregoing assets shall be included in the taxable gross

estate in the Philippines? Explain.
(5%)
- XIII -
Josel agreed to sell his condominium unit to Jess for P2.5 Million. At
the time of the sale, the property had a zonal value of P2.0 Million. Upon
the advice of a tax consultant, the parties agreed to execute two deeds of
sale, one indicating the zonal value of P2.0 Million as the selling price and
the other showing the true selling price of P2.5 Million. The tax consultant
filed the capital gains tax return using the deed of sale showing the zonal
value of P2.0 Million as the selling price.
Discuss the tax implications and consequences of the action taken

by the parties.
(5%)
- XIV -
(1.) Mr. Fermin, a resident of Quezon City, is a Certified Public
Accountant-Lawyer engaged in the practice of his two professions. He has
his main office in Makati City and maintains a branch office in Pasig City.
Mr. Fermin pays his professional tax as a CPA in Makati City and his
professional tax as a lawyer in Pasig City.
a) May Makati City, where he has his main office, require him to pay
his professional tax as a lawyer? Explain.
b) May Quezon City, where he has his residence and where he also
practices his two professions, go after him for the payment of his
professional tax as a CPA and a lawyer? Explain.
(5%)
(2.) In 1995, the BIR filed before the Department of Justice (DOJ) a
criminal complaint against a corporation and its officers for alleged evasion
of taxes. The complaint was supported by a sworn statement of the BIR
examiners showing the computation of the tax liabilities of the erring
taxpayer. The corporation filed a motion to dismiss the criminal complaint
on the ground that there has been, as yet, no assessment of its tax liability;
hence, the criminal complaint was premature. The DOJ denied the motion
on the ground that an assessment of the tax deficiency of the corporation is
not a precondition to the filing of a criminal complaint and that in any event,
the joint affidavit of the BIR examiners may be considered as an
assessment of the tax liability of the corporation.
Is the ruling of the DOJ correct? Explain.
(5%)
NOTHING FOLLOWS
INSTRUCTIONS
This questionnaire consists of fifteen (15) numbers

contained in ten (10) pages. Read each question very
GOOD LUCK!!!
____________________________________
CHAIRMAN

-I-
(1.) What is a negotiable instrument? Give the characteristics of a

negotiable instrument. (2%)
(2.) Distinguish a negotiable document from a negotiable instrument.

(2%)
(3.) State and explain whether the following are negotiable

instruments under the Negotiable Instruments Law:
(i) Postal Money Order;

(ii) A certificate of time deposit which states “This is to certify
that bearer has deposited in this bank the sum of FOUR
THOUSAND PESOS (P4,000.00) only, repayable to the
depositor 200 days after date.”
(iii) Letters of credit;
(iv) Warehouse receipts;
(v) Treasury warrants payable from a specific fund.
(5%)
- II -
(1.) Dagul has a business arrangement with Facundo. The latter

would lend money to another, through Dagul, whose name would appear in
the promissory note as the lender. Dagul would then immediately indorse
the note to Facundo.
Is Dagul an accommodation party? Explain. (2%)

(2.) a) What is a crossed check? What are the effects of crossing a
check? Explain.
b) Distinguish an irregular indorser from a general indorser.
(3%)
(3.) Brad was in desperate need of money to pay his debt to Pete, a
loan shark. Pete threatened to take Brad’s life if he failed to pay. Brad and
Pete went to see Señorita Isobel, Brad’s rich cousin, and asked her if she
could sign a promissory note in his favor in the amount of P10,000.00 to
pay Pete. Fearing that Pete would kill Brad, Señorita Isobel acceded to the
request. She affixed her signature on a piece of paper with the assurance
of Brad that he will just fill it up later. Brad then filled up the blank paper,
making a promissory note for the amount of P100,000.00. He then
indorsed and delivered the same to Pete, who accepted the note as
payment of the debt.
What defense or defenses can Señorita Isobel set up against Pete?

Explain. (3%)
- III -
(1.) Under what conditions may a stock corporation acquire its own
shares? (2%)
(2.) Janice rendered some consultancy work for XYZ Corporation.

Her compensation included shares of stock therein.
Can XYZ Corporation issue shares of stock to pay for the services of
Janice as its consultant? Discuss your answer. (2%)
- IV -
Divine Corporation is engaged in the manufacture of garments for
export. In the course of its business, it was able to obtain loans from
individuals and financing institutions. However, due to the drop in the
demand for garments in the international market, Divine Corporation could
not meet its obligations. It decided to sell all its equipment such as sewing
machines, perma-press machines, high speed sewers, cutting tables,
ironing tables, etc., as well as its supplies and materials to Top Grade
Fashion Corporation, its competitor.
a) How would you classify the transaction?
b) Can Divine Corporation sell the aforesaid items to its competitor,

Top Grade Fashion Corporation? What are the requirements to validly sell
the items? Explain.
c) How would you protect the interests of the creditors of Divine

Corporation?
d) In case Divine Corporation violated the law, what remedies are

available to Top Grade Fashion Corporation against Divine Corporation?
(5%)
-V-
(1.) a) Under what circumstances may a corporation declare

dividends? (2%)
b) Distinguish dividend from profit; cash dividend from stock

dividend. (2%)
c) From what funds are cash and stock dividends sourced?

Explain why. (2%)
(2.) A Korean national joined a corporation which is engaged in the
furniture manufacturing business. He was elected to the Board of Directors.
To complement its furniture manufacturing business, the corporation also
engaged in the logging business.
With the additional logging activity, can the Korean national still be a
member of the Board of Directors? Explain. (3%)
- VI -
Jojo deposited several cartons of goods with SN Warehouse

Corporation. The corresponding warehouse receipt was issued to the
order of Jojo. He endorsed the warehouse receipt to EJ who paid the value
of the goods deposited. Before EJ could withdraw the goods, Melchor
informed SN Warehouse Corporation that the goods belonged to him and
were taken by Jojo without his consent. Melchor wants to get the goods,
but EJ also wants to withdraw the same.
a) Who has a better right to the goods? Why?
b) If SN Warehouse Corporation is uncertain as to who is entitled to

the property, what is the proper recourse of the corporation? Explain.
(5%)
- VII -
(1.) Briefly discuss the doctrine of corporate opportunity. (2%)
(2.) Malyn, Schiera and Jaz are the directors of Patio Investments, a
close corporation formed to run the Patio Café, an al fresco coffee shop in
Makati City. In 2000, Patio Café began experiencing financial reverses,
consequently, some of the checks it issued to its beverage distributors and
employees bounced.
In October 2003, Schiera informed Malyn that she found a location
for a second café in Taguig City. Malyn objected because of the dire
financial condition of the corporation.
Sometime in April 2004, Malyn learned about Fort Patio Café located
in Taguig City and that its development was undertaken by a new
corporation known as Fort Patio, Inc., where both Schiera and Jaz are
directors. Malyn also found that Schiera and Jaz, on behalf of Patio
Investments, had obtained a loan of P500,000.00, from PBCom Bank, for
the purpose of opening Fort Patio Café. This loan was secured by the
assets of Patio Investments and personally guaranteed by Schiera and Jaz.
Malyn then filed a corporate derivative action before the Regional

Trial Court of Makati City against Schiera and Jaz, alleging that the two
directors had breached their fiduciary duties by misappropriating money
and assets of Patio Investments in the operation of Fort Patio Café.
a) Did Schiera and Jaz violate the principle of corporate opportunity?

Explain.
b) Was it proper for Malyn to file a derivative suit with a prayer for
injunctive relief? Explain.
c) Assuming that a derivative suit is proper, may the action continue if

the corporation is dissolved during the pendency of the suit? Explain.
(5%)
- VIII -
Aaron, a well-known architect, is suffering from financial reverses.

He has four creditors with a total claim of P26 Million. Despite his intention
to pay these obligations, his current assets are insufficient to cover all of
them. His creditors are about to sue him. Consequently, he was
constrained to file a petition for insolvency.
a) Since Aaron was merely forced by circumstances to petition the

court to declare him insolvent, can the judge properly treat the petition as
one for involuntary insolvency? Explain.
b) If Aaron is declared an insolvent by the court, what would be the
effect, if any, of such declaration on his creditors? Explain.
c) Assuming that Aaron has guarantors for his debts, are the
guarantors released from their obligations once Aaron is discharged from
his debts? Explain.
d) What remedies are available to the guarantors in case they are

made to pay the creditors? Explain.
(5%)
- IX -
(1.) What are the effects of an irrevocable designation of a

beneficiary under the Insurance Code? Explain. (2%)
(2.) Jacob obtained a life insurance policy for P1 Million designating

irrevocably Diwata, a friend, as his beneficiary. Jacob, however, changed
his mind and wants Yob and Jojo, his other friends, to be included as
beneficiaries considering that the proceeds of the policy are sufficient for
the three friends.
Can Jacob still add Yob and Jojo as his beneficiaries? Explain. (2%)
-X-
(1.) M/V Pearly Shells, a passenger and cargo vessel, was insured
for P40,000,000.00 against “constructive total loss.” Due to a typhoon, it
sank near Palawan. Luckily, there were no casualties, only injured
passengers. The shipowner sent a notice of abandonment of his interest
over the vessel to the insurance company which then hired professionals to
afloat the vessel for P900,000.00. When re-floated, the vessel needed
repairs estimated at P2,000,000.00. The insurance company refused to
pay the claim of the shipowner, stating that there was “no constructive total
loss.”
a) Was there “constructive total loss” to entitle the shipowner to

recover from the insurance company? Explain.
b) Was it proper for the shipowner to send a notice of abandonment

to the insurance company? Explain.
(5%)
(2.) a) When does double insurance exist? (2%)
b) What is the nature of the liability of the several insurers in

double insurance? Explain. (2%)
- XI -
Ricardo mortgaged his fishpond to AC Bank to secure a P1 Million

loan. In a separate transaction, he opened a letter of credit with the same
bank for $500,000.00 in favor of HS Bank, a foreign bank, to purchase
outboard motors. Likewise, Ricardo executed a Surety Agreement in favor
of AC Bank.
The outboard motors arrived and were delivered to Ricardo, but he

was not able to pay the purchase price thereof.
a) Can AC Bank take possession of the outboard motors? Why?
b) Can AC Bank also foreclose the mortgage over the fishpond?

Explain.
(5%)
- XII -
Hi Yielding Corporation filed a complaint against five of its officers for

violation of Section 31 of the Corporation Code. The corporation claimed
that the said officers were guilty of advancing their personal interests to the
prejudice of the corporation, and that they were grossly negligent in
handling its affairs. Aside from documents and contracts, the corporation
also submitted in evidence records of the officers’ U.S. Dollar deposits in
several banks overseas - Boston Bank, Bank of Switzerland, and Bank of
New York.
For their part, the officers filed a criminal complaint against the
directors of Hi Yielding Corporation for violation of Republic Act No. 6426,
otherwise known as the Foreign Currency Deposit Act of the Philippines.
The officers alleged that their bank deposits were illegally disclosed for
want of a court order, and that such deposits were not even the subject of
the case against them.
a) Will the complaint filed against the directors of Hi Yielding

Corporation prosper? Explain.
b) Was there a violation of the Secrecy of Bank Deposits Law

(Republic Act No. 1405)? Explain.
(5%)
- XIII -
(1.) Discuss the “kabit system” in land transportation and its legal
consequences. (2%)
(2.) Procopio purchased an Isuzu passenger jeepney from Enteng, a

holder of a certificate of public convenience for the operation of public utility
vehicle plying the Calamba-Los Baños route. While Procopio continued
offering the jeepney for public transport services, he did not have the
registration of the vehicle transferred in his name. Neither did he secure for
himself a certificate of public convenience for its operation. Thus, per the
records of the Land Transportation Franchising and Regulatory Board,
Enteng remained its registered owner and operator. One day, while the
jeepney was traveling southbound, it collided with a ten-wheeler truck
owned by Emmanuel. The driver of the truck admitted responsibility for the
accident, explaining that the truck lost its brakes.
Procopio sued Emmanuel for damages, but the latter moved to

dismiss the case on the ground that Procopio is not the real party in interest
since he is not the registered owner of the jeepney.
Resolve the motion with reasons. (3%)
(3.) Baldo is a driver of Yellow Cab Company under the boundary

system. While cruising along the South Expressway, Baldo’s cab figured in
a collision, killing his passenger, Pietro. The heirs of Pietro sued Yellow
Cab Company for damages, but the latter refused to pay the heirs, insisting
that it is not liable because Baldo is not its employee.
Resolve with reasons. (2%)
- XIV -
(1.) On a clear weather, M/V Sundo, carrying insured cargo, left the
port of Manila bound for Cebu. While at sea, the vessel encountered a
strong typhoon forcing the captain to steer the vessel to the nearest island
where it stayed for seven days. The vessel ran out of provisions for its
passengers. Consequently, the vessel proceeded to Leyte to replenish its
supplies.
a) Assuming that the cargo was damaged because of such deviation,

who between the insurance company and the owner of the cargo bears the
loss? Explain.
b) Under what circumstances can a vessel properly proceed to a port

other than its port of destination? Explain.
(4%)
(2.) Star Shipping Lines accepted 100 cartons of sardines from

Master to be delivered to 555 Company in Manila. Only 88 cartons were
delivered, however, these were in bad condition.
555 Company claimed from Star Shipping Lines the value of the
missing goods, as well as the damaged goods. Star Shipping Lines
refused because the former failed to present a bill of lading.
Resolve with reasons the claim of 555 Company. (4%)
- XV -
(1.) S Development Corporation sued Shangrila Corporation for

using the “S” logo and the tradename “Shangrila”. The former claims that it
was the first to register the logo and the tradename in the Philippines and
that it had been using the same in its restaurant business.
Shangrila Corporation counters that it is an affiliate of an international

organization which has been using such logo and tradename “Shangrila”
for over 20 years.
However, Shangrila Corporation registered the tradename and logo

in the Philippines only after the suit was filed.
a) Which of the two corporations has a better right to use the logo
and the tradename? Explain.
b) How does the international affiliation of Shangrila Corporation

affect the outcome of the dispute? Explain.
(5%)
(2.) Cezar works in a car manufacturing company owned by Joab.

Cezar is quite innovative and loves to tinker with things. With the materials
and parts of the car, he was able to invent a gas-saving device that will
enable cars to consume less gas. Francis, a co-worker, saw how Cezar
created the device and likewise, came up with a similar gadget, also using
scrap materials and spare parts of the company. Thereafter, Francis filed
an application for registration of his device with the Bureau of Patents.
Eighteen months later, Cezar filed his application for the registration of his
device with the Bureau of Patents.
a) Is the gas-saving device patentable? Explain.
b) Assuming that it is patentable, who is entitled to the patent? What,

if any, is the remedy of the losing party?
c) Supposing Joab got wind of the inventions of his employees and

also laid claim to the patents, asserting that Cezar and Francis were using
his materials and company time in making the devices, will his claim prevail
over those of his employees? Explain.
(5%)
NOTHING FOLLOWS.
18 September 2005 2 P.M. — 5 P.M.
INSTRUCTIONS
This questionnaire consists of fifteen (15) numbers

contained in nine (9) pages. Read each question very
GOOD LUCK!!!
____________________________________
CHAIRMAN

-I-
(1.) Distinguish the following from each other:
a) Complex crime under Article 48 of the Revised Penal Code;

b) Special complex crime; and
c) delito continuado.
(3%)
(2.) Under Article 27 of the Revised Penal Code, as amended by

Republic Act (RA) No. 7959, reclusion perpetua shall be from 20 years and
1 day to 40 years. Does this mean that reclusion perpetua is now a
divisible penalty? Explain. (2%)
(3.) Distinguish pecuniary penalties from pecuniary liabilities. (2%)
(4.) Taking into account the nature and elements of the felonies of
coup d’ etat and rape, may one be criminally liable for frustrated coup d’
etat or frustrated rape? Explain. (2%)
(5.) Distinguish malum in se from malum prohibitum. (2%)
- II -
(1.) Belle saw Gaston stealing the prized cock of a neighbor and
reported him to the police. Thereafter, Gaston, while driving a car saw
Belle crossing the street. Incensed that Belle had reported him, Gaston
decided to scare her by trying to make it appear that he was about to run
her over. He revved the engine of his car and drove towards her but he
applied the brakes. Since the road was slippery at that time, the vehicle
skidded and hit Belle causing her death.
What is the liability of Gaston? Why? (4%)
(2.) DD was engaged in the warehouse business. Sometime in

November 2004, he was in dire need of money. He, thus, sold
merchandise deposited in his warehouse to VR for P500,000.00. DD was
charged with theft, as principal, while VR as accessory. The court
convicted DD of theft but acquitted VR on the ground that he purchased the
merchandise in good faith. However, the court ordered VR to return the
merchandise to the owner thereof and ordered DD to refund the
P500,000.00 to VR.
DD moved for the reconsideration of the decision insisting that he

should be acquitted of theft because being the depositary, he had juridical
possession of the merchandise. VR also moved for the reconsideration of
the decision insisting that since he was acquitted of the crime charged, and
that he purchased the merchandise in good faith, he is not obligated to
return the merchandise to its owner.
Rule on the motions with reasons. (5%)
- III -
(1.) Harold was convicted of a crime defined and penalized by a

special penal law where the imposable penalty is from 6 months, as
minimum, to 3 years, as maximum.
State with reasons whether the court may correctly impose the
following penalties:
a) a straight penalty of 10 months;

b) 6 months, as minimum, to 11 months, as maximum;
c) a straight penalty of 2 years.
(5%)
(2.) E and M are convicted of a penal law that imposes a penalty of

fine or imprisonment or both fine and imprisonment. The judge sentenced
them to pay the fine, jointly and severally, with subsidiary imprisonment in
case of insolvency.
a) Is the penalty proper? Explain.
b) May the judge impose an alternative penalty of fine or

imprisonment? Explain.
(4%)
(3.) The accused was found guilty of 10 counts of rape for having
carnal knowledge with the same woman. In addition to the penalty of
imprisonment, he was ordered to pay indemnity in the amount of
P50,000.00 for each count. On appeal, the accused questions the award
of civil indemnity for each count, considering that the victim is the same
woman.
How would you rule on the contention of the accused? Explain. (3%)
- IV -
(1.) Maganda was charged with violation of the Bouncing Checks

Law (BP 22) punishable by imprisonment of not less than 30 days but not
more than 1 year or a fine of not less than but not more than double the
amount of the check, which fine shall not exceed P200,000.00, or both.
The court convicted her of the crime and sentenced her to pay a fine of
P50,000.00 with subsidiary imprisonment in case of insolvency, and to pay
the private complainant the amount of the check. Maganda was unable to
pay the fine but filed a petition for probation. The court granted the petition
subject to the condition, among others, that she should not change her
residence without the court’s prior approval.
a) What is the proper period of probation?
b) Supposing before the Order of Discharge was issued by the court

but after the lapse of the period of probation, Maganda transferred
residence without prior approval of the court. May the court revoke the
Order of Probation and order her to serve the subsidiary imprisonment?
Explain.
(5%)
(2.) DD purchased a television set for P50,000.00 with the use of a

counterfeit credit card. The owner of the establishment had no inkling that
the credit card used by DD was counterfeit.
What crime or crimes did DD commit? Explain.
(5%)
-V-
Paz Masipag worked as a housemaid and yaya of the one-week old

son of the spouses Martin and Pops Kuripot. When Paz learned that her
70 year-old mother was seriously ill, she asked Martin for a cash advance
of P1,000.00 but Martin refused. One morning, Paz gagged the mouth of
Martin’s son with stockings; placed the child in a box; sealed it with
masking tape and placed the box in the attic. Later in the afternoon, she
demanded P5,000.00 as ransom for the release of his son. Martin did not
pay the ransom. Subsequently, Paz disappeared.
After a couple of days, Martin discovered the box in the attic with his
child already dead. According to the autopsy report, the child died of
asphyxiation barely three minutes after the box was sealed.
What crime or crimes did Paz commit? Explain. (5%)

- VI -
Candido stabbed an innocent bystander who accidentally bumped

him. The innocent bystander died as a result of the stabbing. Candido
was arrested and was tested to be positive for the use of “shabu” at the
time he committed the stabbing.
What should be the proper charge against Candido? Explain. (3%)
- VII -
Jose employed Mario as gardener and Henry as cook. They learned

that Jose won P500,000.00 in the lotto, and decided to rob him. Mario
positioned himself about 30 meters away from Jose’s house and acted as
lookout. For his part, Henry surreptitiously gained entry into the house and
killed Jose who was then having his dinner. Henry found the P500,000.00
and took it. Henry then took a can of gasoline from the garage and burned
the house to conceal the acts. Mario and Henry fled, but were arrested
around 200 meters away from the house by alert barangay tanods. The
tanods recovered the P500,000.00.
Mario and Henry were charged with and convicted of robbery with
homicide, with the aggravating circumstances of arson, dwelling, and
nighttime.
Mario moved to reconsider the decision maintaining that he was not

at the scene of the crime and was not aware that Henry killed the victim;
hence, he was guilty only of robbery, as an accomplice. Mario also claimed
that he conspired with Henry to commit robbery but not to kill Jose. Henry,
likewise, moved to reconsider the decision, asserting that he is liable only
for attempted robbery with homicide with no aggravating circumstance,
considering that he and Mario did not benefit from the P500,000.00. He
further alleged that arson is a felony and not an aggravating circumstance;
dwelling is not aggravating in attempted robbery with homicide; and
nighttime is not aggravating because the house of Jose was lighted at the
time he was killed.
Resolve with reasons the respective motions of Mario and Henry.
(7%)
- VIII -
Pete, a security guard, arrived home late one night after rendering
overtime. He was shocked to see Flor, his wife, and Benjie, his best friend,
completely naked having sexual intercourse. Pete pulled out his service
gun and shot and killed Benjie. Pete was charged with murder for the
death of Benjie. Pete contended that he acted in defense of his honor and
that, therefore, he should be acquitted of the crime.
The court found that Benjie died under exceptional circumstances

and exonerated Pete of the crime, but sentenced him to destierro,
conformably with Article 247 of the Revised Penal Code. The court also
ordered Pete to pay indemnity to the heirs of the victim in the amount of
P50,000.00.
a) Is the defense of Pete meritorious? Explain.
b) Under Article 247 of the Revised Penal Code, is destierro a

penalty? Explain.
c) Did the court correctly order Pete to pay indemnity despite his
exoneration under Article 247 of the Revised Penal Code? Explain.
(5%)
- IX -
Allan, the Municipal Treasurer of the Municipality of Gerona, was in a

hurry to return to his office after a day-long official conference. He alighted
from the government car which was officially assigned to him, leaving the
ignition key and the car unlocked, and rushed to his office. Jules, a
bystander, drove off with the car and later sold the same to his brother,
Danny for P20,000.00, although the car was worth P800,000.00.
a) What are the respective crimes, if any, committed by Allan, Danny

and Jules? Explain.
b) What, if any, are their respective civil liabilities? Explain.
(5%)
-X-
During a PNP buy-bust operation, Cao Shih was arrested for selling
20 grams of methamphetamine hydrochloride (shabu) to a poseur-buyer.
Cao Shih, through an intermediary, paid Patrick, the Evidence Custodian of
the PNP Forensic Chemistry Section, the amount of P500,000.00 in
consideration for the destruction by Patrick of the drug. Patrick managed to
destroy the drug.
State with reasons whether Patrick committed the following crimes:
a) Direct bribery;
b) Indirect bribery;
c) Section 3(e) of RA 3019 (Anti-Graft and Corrupt Practices
Act);
d) Obstruction of Justice under PD 1829;
(7%)
- XI -
On July 1, 2004, Jet Matulis, a pedophile, gave P1,000.00 to Sherly,
an orphan and a prostitute, and brought her to a motel. He inserted a rusty
and oversized vibrator into her vagina with such force that she bled
profusely. Jet panicked and fled. Sherly was brought to the hospital and
died a few days later because of shock caused by hemorrhage.
a) What crime or crimes did Jet Matulis commit? Explain.
b) If Sherly were a minor when she died, would your answer be the
same? Explain.
(5%)
- XII -
Don Gabito, a philanthropist, offered to fund several projects of the

Mayor. He opened an account in the Mayor’s name and regularly
deposited various amounts ranging from P500,000.00 to P1 Million. From
this account, the Mayor withdrew and used the money for constructing
feeder roads, barangay clinics, repairing schools and for all other municipal
projects. It was subsequently discovered that Don Gabito was actually a
jueteng operator and the amounts he deposited were proceeds from his
jueteng operations.
What crime/s were committed? Who are criminally liable? Explain.

(6%)
- XIII -
Obie Juan is suspected to have in his possession an unspecified

amount of methamphetamine hydrochloride or “shabu”. An entrapment
operation was conducted by police officers, resulting in his arrest following
the discovery of 100 grams of the said dangerous drug in his possession.
He was subjected to a drug test and was found positive for the use of
marijuana, another dangerous drug. He was subsequently charged with
two crimes: Violation of Section 11, Article II of RA 9165 for the possession
of “shabu” and violation of Section 15, Article II of RA 9165 for the use of
marijuana.
a) Are the charges proper? Explain.
b) So as not to be sentenced to death, Obie Juan offers to plead

guilty to a lesser offense. Can he do so? Why?
(5%)
- XIV -
Al Chua, a Chinese national, filed a petition under oath for

naturalization, with the Regional Trial Court of Manila. In his petition, he
stated that he is married to Leni Chua; that he is living with her in
Sampaloc, Manila; that he is of good moral character; and that he has
conducted himself in an irreproachable manner during his stay in the
Philippines. However, at the time of the filing of the petition, Leni Chua was
already living in Cebu, while Al was living with Babes Toh in Manila, with
whom he has an amorous relationship. After his direct testimony, Al Chua
withdrew his petition for naturalization.
What crime or crimes, if any, did Al Chua commit? Explain. (5%)
- XV -
In an interview aired on television, Cindee uttered defamatory

statements against Erika, a successful and reputable businesswoman.
What crime or crimes did Cindee commit? Explain. (3%)

NOTHING FOLLOWS.
INSTRUCTIONS
This questionnaire consists of eighteen (18) numbers

contained in ten (10) pages. Read each question very
GOOD LUCK!!!
____________________________________
CHAIRMAN

-I-
a) Under Article 1144 of the New Civil Code, an action upon a

judgment must be brought within 10 years from the time the right of action
accrues.
Is this provision applicable to an action filed in the Philippines to

enforce a foreign judgment? Explain.
b) May the aggrieved party file a petition for certiorari in the Supreme
Court under Rule 65 of the 1997 Rules of Civil Procedure instead of filing a
petition for review on certiorari under Rule 45 thereof for the nullification of
a decision of the Court of Appeals in the exercise either of its original or
appellate jurisdiction? Explain.
c) May a private document be offered and admitted in evidence both

as documentary evidence and as object evidence? Explain.
d) Distinguish a derivative suit from a class suit.
e) When may the trial court order that the testimony of a child be
taken by live-link television? Explain.
(10%)
- II -
(1.) While Marietta was in her place of work in Makati City, her
estranged husband Carlo barged into her house in Parañaque City,
abducted their six-year old son, Percival, and brought the child to his
hometown in Baguio City. Despite Marietta’s pleas, Carlo refused to return
their child. Marietta, through counsel, filed a petition for habeas corpus
against Carlo in the Court of Appeals in Manila to compel him to produce
their son before the court and for her to regain custody. She alleged in the
petition that despite her efforts, she could no longer locate her son.
In his comment, Carlo alleged that the petition was erroneously filed
in the Court of Appeals as the same should have been filed in the Family
Court in Baguio City which, under Republic Act No. 8369, has exclusive
jurisdiction over the petition. Marietta replied that under Rule 102 of the
Rules of Court, as amended, the petition may be filed in the Court of
Appeals and if granted, the writ of habeas corpus shall be enforceable
anywhere in the Philippines.
Whose contention is correct? Explain. (5%)

(2.) Under Republic Act No. 8353, one may be charged with and
found guilty of qualified rape if he knew on or before the commission of the
crime that he is afflicted with Human Immuno-Deficiency Virus
(HIV)/Acquired Immune Deficiency Syndrome (AIDS) or any other sexually
transmissible disease and the virus or disease is transmitted to the victim.
Under Section 17(a) of Republic Act No. 8504 the court may compel
the accused to submit himself to a blood test where blood samples would
be extracted from his veins to determine whether he has HIV.
a) Are the rights of the accused to be presumed innocent of the crime

charged, to privacy, and against self-incrimination violated by such
compulsory testing? Explain.
b) If the result of such test shows that he is HIV positive, and the
prosecution offers such result in evidence to prove the qualifying
circumstance under the Information for qualified rape, should the court
reject such result on the ground that it is the fruit of a poisonous tree?
Explain.
(8%)
- III -
Perry is a resident of Manila, while Ricky and Marvin are residents of

Batangas City. They are the co-owners of a parcel of residential land
located in Pasay City with an assessed value of P100,000.00. Perry
borrowed P100,000.00 from Ricky which he promised to pay on or before
December 1, 2004. However, Perry failed to pay his loan. Perry also
rejected Ricky and Marvin’s proposal to partition the property.
Ricky filed a complaint against Perry and Marvin in the Regional Trial
Court of Pasay City for the partition of the property. He also incorporated in
his complaint his action against Perry for the collection of the latter’s
P100,000.00 loan, plus interests and attorney’s fees.
State with reasons whether it was proper for Ricky to join his causes
of action in his complaint for partition against Perry and Marvin in the
Regional Trial Court of Pasay City.
(5%)
- IV -
Raphael, a warehouseman, filed a complaint against V Corporation,

X Corporation and Y Corporation to compel them to interplead. He alleged
therein that the three corporations claimed title and right of possession over
the goods deposited in his warehouse and that he was uncertain which of
them was entitled to the goods. After due proceedings, judgment was
rendered by the court declaring that X Corporation was entitled to the
goods. The decision became final and executory.
Raphael filed a complaint against X Corporation for the payment of

P100,000.00 for storage charges and other advances for the goods. X
Corporation filed a motion to dismiss the complaint on the ground of res
judicata. X Corporation alleged that Raphael should have incorporated in
his complaint for interpleader his claim for storage fees and advances and
that for his failure he was barred from interposing his claim. Raphael
replied that he could not have claimed storage fees and other advances in
his complaint for interpleader because he was not yet certain as to who
was liable therefor.
Resolve the motion with reasons.
(4%)
-V-
(1.) After Lulu’s death, her heirs brought her last will to a lawyer to
obtain their respective shares in the estate. The lawyer prepared a deed of
partition distributing Lulu’s estate in accordance with the terms of her will.
Is the act of the lawyer correct? Why? (2%)
(2.) Nestor died intestate in 2003, leaving no debts. How may his
estate be settled by his heirs who are of legal age and have legal
capacity? Explain. (2%)
(3.) State the rule on venue in judicial settlement of estate of

deceased persons. (2%)
- VI -
While cruising on a highway, a taxicab driven by Mans hit an electric

post. As a result thereof, its passenger, Jovy, suffered serious injuries.
Mans was subsequently charged before the Municipal Trial Court with
reckless imprudence resulting in serious physical injuries.
Thereafter, Jovy filed a civil action against Lourdes, the owner of the
taxicab, for breach of contract, and Mans for quasi-delict. Lourdes and
Mans filed a motion to dismiss the civil action on the ground of litis
pendentia, that is, the pendency of the civil action impliedly instituted in the
criminal action for reckless imprudence resulting in serious physical
injuries.
- VII -
Katy filed an action against Tyrone for collection of the sum of P1
Million in the Regional Trial Court, with an ex-parte application for a writ of
preliminary attachment. Upon posting of an attachment bond, the court
granted the application and issued a writ of preliminary attachment.
Apprehensive that Tyrone might withdraw his savings deposit with

the bank, the sheriff immediately served a notice of garnishment on the
bank to implement the writ of preliminary attachment. The following day,
the sheriff proceeded to Tyrone’s house and served him the summons, with
copies of the complaint containing the application for writ of preliminary
attachment, Katy’s affidavit, order of attachment, writ of preliminary
attachment and attachment bond.
Within fifteen (15) days from service of the summons, Tyrone filed a
motion to dismiss and to dissolve the writ of preliminary attachment on the
following grounds: (i) the court did not acquire jurisdiction over his person
because the writ was served ahead of the summons; (ii) the writ was
improperly implemented; and (iii) said writ was improvidently issued
because the obligation in question was already fully paid.
- VIII -
In a complaint for recovery of real property, the plaintiff averred,

among others, that he is the owner of the said property by virtue of a deed
of sale executed by the defendant in his favor. Copy of the deed of sale
was appended to the complaint as Annex “A” thereof.
In his unverified answer, the defendant denied the allegation

concerning the sale of the property in question, as well as the appended
deed of sale, for lack of knowledge or information sufficient to form a belief
as to the truth thereof.
Is it proper for the court to render judgment without trial? Explain.

(4%)
- IX -
On May 12, 2005, the plaintiff filed a complaint in the Regional Trial
Court of Quezon City for the collection of P250,000.00. The defendant filed
a motion to dismiss the complaint on the ground that the court had no
jurisdiction over the action since the claimed amount of P250,000.00 is
within the exclusive jurisdiction of the Metropolitan Trial Court of Quezon
City.
Before the court could resolve the motion, the plaintiff, without leave
of court, amended his complaint to allege a new cause of action consisting
in the inclusion of an additional amount of P200,000.00, thereby increasing
his total claim to P450,000.00. The plaintiff thereafter filed his opposition to
the motion to dismiss, claiming that the Regional Trial Court had jurisdiction
over his action.
Rule on the motion of the defendant with reasons. (4%)
-X-
A obtained a money judgment against B. After the finality of the

decision, the court issued a writ of execution for the enforcement thereof.
Conformably with the said writ, the sheriff levied upon certain properties
under B’s name. C filed a third-party claim over said properties claiming
that B had already transferred the same to him.
A moved to deny the third-party claim and to hold B and C jointly and
severally liable to him for the money judgment alleging that B had
transferred said properties to C to defraud him (A).
After due hearing, the court denied the third-party claim and
rendered an amended decision declaring B and C jointly and severally
liable to A for the money judgment.
Is the ruling of the court correct? Explain. (4%)

- XI -
Helen is the daughter of Eliza, a Filipina, and Tony, a Chinese, who is

married to another woman living in China. Her birth certificate indicates
that Helen is the legitimate child of Tony and Eliza and that she is a
Chinese citizen.
Helen wants her birth certificate corrected by changing her filiation

from “legitimate” to “illegitimate” and her citizenship from “Chinese” to
“Filipino” because her parents were not married.
What petition should Helen file and what procedural requirements

must be observed? Explain. (5%)
- XII -
Mariano was convicted by the Regional Trial Court for raping Victoria
and meted the penalty of reclusion perpetua. While serving sentence at
the National Penitentiary, Mariano and Victoria were married. Mariano filed
a motion in said court for his release from the penitentiary on his claim that
under Republic Act No. 8353, his marriage to Victoria extinguished the
criminal action against him for rape, as well as the penalty imposed on
him. However, the court denied the motion on the ground that it had lost
jurisdiction over the case after its decision had become final and executory.
a) Is the ruling of the court correct? Explain.
b) What remedy/remedies should the counsel of Mariano take to

secure his proper and most expeditious release from the National
Penitentiary? Explain.
(7%)
- XIII -
Rodolfo is charged with possession of unlicensed firearms in an

Information filed in the Regional Trial Court. It was alleged therein that
Rodolfo was in possession of two unlicensed firearms: a .45 caliber and a .
32 caliber.
Under Republic Act No. 8294, possession of an unlicensed .45

caliber gun is punishable by prision mayor in its minimum period and a fine
of P30,000.00, while possession of an unlicensed .32 caliber gun is
punishable by prision correccional in its maximum period and a fine of not
less than P15,000.00.
As counsel of the accused, you intend to file a motion to quash the

Information. What ground or grounds should you invoke? Explain. (4%)
- XIV -
Police operatives of the Western Police District, Philippine National

Police, applied for a search warrant in the Regional Trial Court for the
search of the house of Juan Santos and the seizure of an undetermined
amount of shabu. The team arrived at the house of Santos but failed to
find him there. Instead, the team found Roberto Co.
The team conducted a search in the house of Santos in the presence

of Roberto Co and barangay officials and found ten (10) grams of shabu.
Roberto Co was charged in court with illegal possession of ten grams of
shabu.
Before his arraignment, Roberto Co filed a motion to quash the

search warrant on the following grounds: (a) he was not the accused
named in the search warrant; and (b) the warrant does not describe the
article to be seized with sufficient particularity.

- XV -
For the multiple stab wounds sustained by the victim, Noel was
charged with frustrated homicide in the Regional Trial Court. Upon
arraignment, he entered a plea of guilty to said crime. Neither the court nor
the prosecution was aware that the victim had died two days earlier on
account of his stab wounds.
Because of his guilty plea, Noel was convicted of frustrated homicide

and meted the corresponding penalty. When the prosecution learned of the
victim’s death, it filed within fifteen (15) days therefrom a motion to amend
the Information to upgrade the charge from frustrated homicide to
consummated homicide. Noel opposed the motion claiming that the
admission of the amended Information would place him in double jeopardy.
- XVI -
Dencio barged into the house of Marcela, tied her to a chair and
robbed her of assorted pieces of jewelry and money. Dencio then brought
Candida, Marcela’s maid, to a bedroom where he raped her. Marcela could
hear Candida crying and pleading: “Huwag! Maawa ka sa akin!” After
raping Candida, Dencio fled from the house with the loot. Candida then
untied Marcela and rushed to the police station about a kilometer away and
told Police Officer Roberto Maawa that Dencio had barged into the house
of Marcela, tied the latter to a chair and robbed her of her jewelry and
money. Candida also related to the police officer that despite her pleas,
Dencio had raped her. The policeman noticed that Candida was hysterical
and on the verge of collapse. Dencio was charged with robbery with rape.
During the trial, Candida can no longer be located.
a) If the prosecution presents Police Officer Roberto Maawa to testify
on what Candida had told him, would such testimony of the policeman be
hearsay? Explain.
b) If the police officer will testify that he noticed Candida to be

hysterical and on the verge of collapse, would such testimony be
considered as opinion, hence, inadmissible? Explain.
(8%)
- XVII -
Explain briefly whether the Regional Trial Court may, motu proprio,
take judicial notice of the following:
a) The street name of methamphetamine hydrochloride is shabu;

b) Ordinances approved by municipalities under its territorial
jurisdiction;
c) Foreign laws;
d) Rules and Regulations issued by quasi-judicial bodies
implementing statutes;
e) Rape may be committed even in public places.
(5%)
- XVIII -
Regional Director AG of the Department of Public Works and

Highways was charged with violation of Section 3(e) of Republic Act No.
3019 in the Office of the Ombudsman. An administrative charge for gross
misconduct arising from the transaction subject matter of said criminal case
was filed against him in the same office. The Ombudsman assigned a
team composed of investigators from the Office of the Special Prosecutor
and from the Office of the Deputy Ombudsman for the Military to conduct a
joint investigation of the criminal case and the administrative case. The
team of investigators recommended to the Ombudsman that AG be
preventively suspended for a period not exceeding six (6) months on its
finding that the evidence of guilt is strong. The Ombudsman issued the
said order as recommended by the investigators.
AG moved to reconsider the order on the following grounds: (a) the
Office of the Special Prosecutor had exclusive authority to conduct a
preliminary investigation of the criminal case; (b) the order for his
preventive suspension was premature because he had yet to file his
answer to the administrative complaint and submit countervailing evidence;
and (c) he was a career executive service officer and under Presidential
Decree No. 807 (Civil Service Law), his preventive suspension shall be for
a maximum period of three months.
Resolve with reasons the motion of respondent AG.
(5%)
NOTHING FOLLOWS.
25 September 2005 2 P.M. — 5 P.M.
INSTRUCTIONS
This questionnaire consists of sixteen (16) numbers

contained in seven (7) pages. Read each question very
GOOD LUCK!!!
____________________________________
CHAIRMAN

-I-
Multiple choice. Choose the correct answer. Write the letter

corresponding to your answer.
(1.) Which of the following need not be verified?
a) Petition for Certiorari;

b) Interpleader;
c) Petition for Habeas Corpus;
d) Answer with compulsory counterclaim;
e) All pleadings under the Rules on Summary Procedure.
(2%)
(2.) Which of the following statements is false?
a) All administrative cases against Justices of appellate courts and

judges of lower courts fall exclusively within the jurisdiction of the Supreme
Court.
b) Administrative cases against erring Justices of the Court of

Appeals and Sandiganbayan, judges, and lawyers in the government
service are not automatically treated as disbarment cases.
c) The IBP Board of Governors may, motu proprio, or upon referral

by the Supreme Court or by a Chapter Board of Officers, or at the instance
of any person, initiate and prosecute proper charges against erring lawyers
including those in the government service.
d) The filing of an administrative case against the judge is not a

ground for disqualification/inhibition.
e) Trial courts retain jurisdiction over the criminal aspect of offenses
committed by justices of appellate courts and judges of lower courts.
(2%)
(3.) On which of the following is a lawyer proscribed from testifying

as a witness in a case he is handling for a client:
a) On the mailing of documents;
b) On the authentication or custody of any instrument;
c) On the theory of the case;
d) On substantial matters in cases where his testimony is essential to

the ends of justice.
(2%)
- II -
Mike Adelantado, an aspiring lawyer, disclosed in his petition to take

the 2003 Bar Examinations that there were two civil cases pending against
him for nullification of contract and damages. He was thus allowed to
conditionally take the bar, and subsequently placed third in the said exams.
In 2004, after the two civil cases had been resolved, Mike
Adelantado filed his petition to take the Lawyer’s Oath and sign the Roll of
Attorneys before the Supreme Court. The Office of the Bar Confidant,
however, had received two anonymous letters: the first alleged that at the
time Mike Adelantado filed his petition to take the bar, he had two other civil
cases pending against him, as well as a criminal case for violation of Batas
Pambansa (B.P.) Bilang 22; the other letter alleged that Mike Adelantado,
as Sangguniang Kabataan (SK) Chairperson, had been signing the
attendance sheets of (SK) meetings as “Atty. Mike Adelantado.”
a) Having passed the bar, can Mike Adelantado already use the
appellation “attorney”? Explain your answer. (3%)
b) Should Mike Adelantado be allowed to take his oath as a lawyer

and sign the Roll of Attorneys? Explain your answer. (3%)
- III -
Atty. Kuripot was one of Town Bank’s valued clients. In recognition of

his loyalty to the bank, he was issued a gold credit card with a credit limit of
P250,000.00. After two months, Atty. Kuripot exceeded his credit limit, and
refused to pay the monthly charges as they fell due. Aside from a collection
suit, Town Bank also filed a disbarment case against Atty. Kuripot.
In his comment on the disbarment case, Atty. Kuripot insisted that he

did not violate the Code of Professional Responsibility, since his obligation
to the bank was personal in nature and had no relation to his being a
lawyer.
a) Is Atty. Kuripot correct? Explain your answer. (3%)
b) Explain whether Atty. Kuripot should be held administratively liable

for his refusal to settle his credit card bill. (3%)
- IV -
You had just taken your oath as a lawyer. The secretary to the
president of a big university offered to get you as the official notary public of
the school. She explained that a lot of students lose their Identification
Cards and are required to secure an affidavit of loss before they can be
issued a new one. She claimed that this would be very lucrative for you, as
more than 30 students lose their Identification Cards every month.
However, the secretary wants you to give her one-half of your earnings
therefrom.
Will you agree to the arrangement? Explain. (5%)
-V-
Judge Horacio would usually go to the cockpits on Saturdays for

relaxation, as the owner of the cockpit is a friend of his. He also goes to
the casino once a week to accompany his wife who loves to play the slot
machines. Because of this, Judge Horacio was administratively charged.
When asked to explain, he said that although he goes to these places, he
only watches and does not place any bets.
Is his explanation tenable? Explain. (5%)
- VI -
A business man is looking for a new retainer. He approached you

and asked for your schedule of fees or charges. He informed you of the
professional fees he is presently paying his retainer, which is actually lower
than your rates. He said that if your rates are lower, he would engage your
services.
Will you lower your rates in order to get the client? Explain. (5%)
- VII -
(1.) Judge Segotier is a member of Phi Nu Phi Fraternity. Atty.

Nonato filed a motion to disqualify Judge Segotier on the ground that the
counsel for the opposing party is also a member of the Phi Nu Phi
Fraternity. Judge Segotier denied the motion.
Comment on his ruling. (5%)
(2.) In an intestate proceeding, a petition for the issuance of letters of

administration in favor of a Regional Trial Court Judge was filed by one of
the heirs. Another heir opposed the petition on the ground that the judge is
disqualified to become an administrator of the estate as he is the brother-
in-law of the deceased.
Rule on the petition. (5%)
- VIII -
Due to the number of cases handled by Atty. Cesar, he failed to file a
notice of change of address with the Court of Appeals. Hence, he was not
able to file an appellant’s brief and consequently, the case was dismissed.
Aggrieved, Atty. Cesar filed a motion for reconsideration of the resolution
dismissing the appeal and to set aside the entry of judgment on the ground
that he already indicated in his “Urgent Motion for Extension of Time to File
Appeal Brief” his new address and that his failure to file a notice of change
of address is an excusable negligence.
Will the motion prosper? Explain. (5%)
- IX -
Darius is charged with the crime of murder. He sought Atty. Francia’s

help and assured the latter that he did not commit the crime. Atty. Francia
agreed to represent him in court. During the trial, the prosecution
presented several witnesses whose testimonies convinced Atty. Francia
that her client is guilty. She confronted his client who eventually admitted
that he indeed committed the crime. In view of his admission, Atty. Francia
decided to withdraw from the case.
Should Atty. Francia be allowed to do so? Explain. (5%)
-X-
Atty. Yabang was suspended as a member of the Bar for a period of

one (1) year. During the period of suspension, he was permitted by his law
firm to continue working in their office, drafting and preparing pleadings and
other legal documents but was not allowed to come into direct contact with
the firms’ clients. Atty. Yabang was subsequently sued for illegal practice of
law.
Would the case prosper? Explain. (5%)

- XI -
Atty. Japzon, a former partner of XXX law firm, is representing

Kapuso Corporation in a civil case against Kapamilya Corporation whose
legal counsel is XXX law firm. Atty. Japzon claims that she never handled
the case of Kapamilya Corporation when she was still with XXX law firm.
Is there a conflict of interest? Explain. (5%)
- XII -
Pending before the sala of Judge Magbag is the case of CDG versus
JQT. The legal counsel of JQT is Atty. Ocsing who happens to be the
brother of Atty. Ferreras, a friend of Judge Magbag. While the case was
still being heard, Atty. Ferreras and his wife celebrated their wedding
anniversary. They invited their friends and family to a dinner party at their
house in Forbes Park. Judge Magbag attended the party and was seen
conversing with Atty. Ocsing while they were eating at the same table.
Comment on the propriety of Judge Magbag’s act. (5%)
- XIII -
Gerry Cruz is the owner of a 1,000-square meter lot covered by

Transfer Certificate of Title No. 12345 located in Sampaloc, Metro Manila.
Gerry decided to sell the property but did not have the time to look for a
buyer. He then designated his brother, Jon, to look for a buyer and
negotiate the sale. Jon met Angelo Santos who expressed his interest to
buy the lot. Angelo agreed to pay P1 Million for the property on September
26, 2005.
a) Draft the Special Power of Attorney to be executed by Gerry Cruz,

as principal, in favor of his brother Jon, as agent, authorizing the latter to
sell the property in favor of Angelo Santos. (7%)
b) Draft the Deed of Sale of Real Property. (7%)
- XIV -
Draft a withdrawal of counsel without conformity of client. (6%)
- XV -
Draft a Notice of Appeal. (6%)
- XVI -
Draft a Certification of Non-Forum Shopping. (6%)
NOTHING FOLLOWS.

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4 September 2005 8 A.M.

This questionnaire consists of ten (10) numbers contained

HAND IN YOUR NOTEBOOK WITH THIS QUESTIONNAIRE

PLEASE CHECK THE NUMBER OF PAGES IN THIS SET

WARNING: NOT FOR SALE OR UNAUTHORIZED USE

The Australian government is requesting the Philippine government to extradite

(a) As counsel of Abad, refute the defenses of “sovereign immunity” and

(b) Can the CHR issue an “order to desist” or restraining order?

Resolve the following issues:

Resolve the petition with reasons. (4%)

State with reasons whether the Ombudsman’s ruling is correct. (4%)

Sec. 32. Penal Provision.―A person who shall willfully interfere

(2.) State with reason(s) which of the following is a government agency or a

(a) Department of Public Works and Highway;

(b) Bangko Sentral ng Pilipinas;

(c) Philippine Ports Authority;

(e) Land Bank of the Philippines.

Rule on the admissibility of the letter and check. (5%)

(a) A Filipino Citizen? Explain.

(b) A resident of the locality? Explain.

Reyes, an adversary, ran against Manuel and petitioned that he be disqualified

(a) As lawyer of Manuel, present the possible arguments to prevent his

Resolve the case with reasons. (5%)

This questionnaire consists of nine (9) numbers contained

HAND IN YOUR NOTEBOOK WITH THIS QUESTIONNAIRE

PLEASE CHECK THE NUMBER OF PAGES IN THIS SET

WARNING: NOT FOR SALE OR UNAUTHORIZED USE

(1.) As Human Resources Department (HRD) manager of EZ

Which of the following courses of action should you take to best

(a) Recognize Union A as the rightful bargaining representative

(b) Recognize Union B because you do not want to antagonize its

(c) Ignore the demands of either union since you cannot be

(d) Petition the Bureau of Labor Relations to conduct a certification

(2.) Little Hands Garment Company, an unorganized manufacturer of

(a) Yes, because it can withdraw a benefit that is unilaterally given;

(b) Yes, because it is suffering losses for the first time;

(c) Yes, because this is a management prerogative which is not due

(d) No, because this amounts to a diminution of benefits which is

(1.) During the open forum following your lecture to a group of

(a) What qualifying circumstances will convert “illegal recruitment” to

(b) Is the commission of an unfair labor practice by an employer

Please explain your answers briefly.

(b) How is a project worker different from a casual or contractual

Briefly explain your answers. (6%)

(1.) Antonio Antuquin, a security guard, was caught sleeping on the

(b) Antonio’s claim for overtime and other benefits.

(a) Whose contention is correct, Weto or the HRD manager?

(b) Is Jovy entitled to maternity leave benefits?

(1.) Malyn Vartan is a well-known radio-TV talk show host. She

During the open forum following your lecture before members of

(b) May a rank-and-file employee, who is not a member of the union

(c) What is meant by “payroll reinstatement” and when does it apply?

(d) Under what conditions may a “compressed work week” schedule

State your answers and your reasons therefor.

A group of employees in XYZ Factory belonging to a religious sect, in

(a) Is the CBA provision valid?

(b) Should the company comply with the union’s demand of

Carissa then filed a complaint for sexual harassment against Mr.