BUSINESS Law name Linke A/Pecke ©. Cashilo 1. The dafinition of obligation emphasized the abligaton of the obligor or debtor and implies the correlative nght of the oblige orcrecitor to: a) sign the contract ©) demand the pertormance ot the act P ‘orconduct “ A ¢) rescind the contract <) honor his reciprocal obligaton 2. In an agreement between the seller andthe buyer whereby the former wil buy fromthe fatter a specific thing for P1,000 what is the efficient cause or juridical te 2) 10 give the specific thing * b) to pay the price c} agreement C {§} purchase of the specite ming 3 Obligations governed primarily by the agreement of the parties: a) Those arising from law b) Those arising from quasi-contracts ) Those arising from contracts d) Those arising from quasi-delicts 4. The following are essential elements ofa valid object or prestation, except 2) must be determinate of specific or atleast determinabie b) must be physically or legally possible ) must have an economie value or becapable of pecuniary estimation or possible equivalent in money An d) none of the above 5. Form is a requisite only of obligations: a) arising from law b) ar'sing from quasi-contracts < ©) arising from solemn contracts (e.g donation) @)arising from quasi-detict 4 6. This is the reason forthe existence of 7 the obligation a Active subject b Juridical te ©. Prestation d Passive subject > 7 This will NOT result to a civilabigation 2 Riding 2 eepney sccrion BAC 1-1 b Excess in the change given by a solesiaay © Break up between boytiend and girtirend d-Swwaling something tha 8 This will result to a civil obligation, a Failure to retum a borrowed item rom 8 trend Not liking the food ordered in a fast food chain because of its taste © Failure to follow parent's command te help in the household chores. Refusal to share notes with a classmate 9. Quasi-contracts are those legal relations that &, Are agreed upon by beth parties ®. Result from an illegal act ©. Requires payment to avoid being benefited at the expense of another d, Result from fault or negligence 10. Quasi-delicts are those legal relations that a. Are agreed upon by both parties . Result from an illegal act c. Requires payment to avoid being benefited at the expense of another 4, Result rom fault or negligence, there being no pre-existing contract between the partes {tis an essential element of obligation which is the efficient cause established by the varidus sources of obligations: a. vinculum juris or juridical tie b juridical capacity . prestaton, object or conduct d. active and passive subject 12. Obligations arising from this source of obligations have the force of law between the contracting parties and should be complied with in good faith a lawor ex lege , contract or ex contractu © quasi-contract or quasi-contracty act of omission punishable by law or ex delito or ex malficiec 1 18. 13. in case of material damage or injury, the liability of a convicted person includes: @, restitution b. reparation . indemnification d. ail of the above 14. itis an act or omission which causes damage to another, there being fault or negligence and there being no pro- existingcontractual relation between the partees. a. contract b. quasi-contract . crime . quasi-deliet 15. Dand C agreed that prior to the delivery of D's dog Blackie, D should keepit in the dog house, feed it four bmes a day, give ita bath five times a week and make it stroll every morning for at least ‘one hour. D should therefore, take care of Blackie a With ordinary care 'b. According to law ¢. According to stipulation d. With proper diligence of a good father ofthe family \s 16. This is a determinate thing’ a. Akilo of “dinorado® rice b. A pet dog Labrador . Ballpen you are using right now Mobile phone Samsung Galaxy 17. The following are the rights availableto 2 creditor in obligations to give a generic thing: a. To.ask for performance of theobligation . To.ask that the obiigation be compliedwith at the expense of the ~ debtor ¢. Acquires personal right to the fruits ofthe thing from the time the obligation to deliver arises . Only letter (a) and (b) If the debtor is already delayed a. Hes liable for damages even if thething was lost due to fortuitous ‘event b. He is notliable for damages if the thingwas lost ne due to fortuitous ©. He is not ii sin S able for damages aint a The debtor should also. a, gaunt ISO give the mobile ©. The debtor is not obliged to give the mobile phone charger ©. The debtor should only give the mobile phone charger f twas asked from fh, 4. The debtor should not only give the mobile phone charger Dut aiso the headphone and other accessories, if any 20. The creditor in an Obligation to do has the right to: a. Ask the debtor to perform the obligation / b. Ask ihe debtor who fails to perform the shall obligation to pay the person who executed the obligation ¢. Ask the debtor who contrived the tenor Of the obligation er have dome the work Poorly to pay: i! oF the above 21. Aand B entered into a contract stating ‘that A shall pay B P100,000.00 on or before Christmas Day of 2018 without need of demand. Supposing that after Christmas 2078, A has noi yet paid B and that B has yet to make any demand from Ato pay. In this case: 2. Ais no longer liable to pay 8 P100,000 b. Ais still iable to pay B P100,000 ©. A's iiabie to pay 8 damages only 4. Ais liable to pay B P100,000 pius damages 22. This wil notresult to tiabitty for damages; a. Fraud b. Delay Performance not according to what was agreed upon . All of the above will resutt to liability for damages 23. An obligation that does not depend on any condition ts called a. Facultative b. AlternativeBUSINESS Law © Resolutory o Pure D 24 A got a loan worth P100.000 00 from 8 A binds himser to pay B when hue financial condition would allow him to do ‘80. A's obligation to pay B in this case @ An example of a pure obligation A D_An example of an obligation with apotestatve condition An example of an obligation with aperiod An exampie of an obligation with aresolutory condition A 25 An event that is both future and Uuncertam upon wheh Bie existence or extinguishment of an obligaton is made touspend caled @ Fortuitous event Condition © Period ¥ 3. Day certain D 26. Aand 5 had an agieement where A isobliged to give something to B. The ‘obligation ts based on C passing the CPABoard Exam. In this case: 2. A's obligation is based on a easuaicondition and is valid b.A’s obligation is based ona potestatvecondition and is not valid ©. A's obligation is based on a mixedcondition and is not valid x d. A's obligation is based on a casuaicondition and isnot valid B 27 if A binds himseff to give B P1,000 if Swill not cause harm ta C, the 2. Obligation is void x b Obligation becomes demandable atonce c. The obligation is subject to impossiblecondition %K d. None of the above 28. An obligation where only one of theparties is bound to fulfill a A Prestation: a. Personal » Divisible 29 Obiigations arising ftom the same Greettor ofthe otner = 60F and a 2 Soldery b Pure ® Alternative 4 Reciprocal 30, This when the debtor toun different prestations meet Bese be 3 Alternative obligation b Facutatve oblgeton ¢. Joint obligation d. Solidary obiigation 31. This is when the debtors answer only for their part a. Joint obligation b. Solidary obligation © Facutatve obigation 4d. Alternative obligation 32. A obliged to give B P100,000 if B's Favorite basketball team wil not win the championship. The legal consequence of this agreement is: a. A should pay B P100,000 if the basketball team loses the championship b A should pay B even before another team wins championship if the team was eliminated from the finals ©. A should pay B the moment it becomes. evident that the team will not win the championship for whatever reason Allo the above 33, There is constructive fulfilment of a condition when a. The obligor voluntarily prevents the fulfillment of a suspensive condition or condition precedent b. The obligor voluntarily prevents the fulfilment of a resolutory condition or condition subsequent ¢. There is impossible condition d. None of the above 34. Mario borrowed the laptop of Trixie. The agreement was for Mario to return the laptop to Trixie next Monday. Unfortunately, a fire that occurred onC BUSINESS LAW a Mario should pay the value of the laptopto Trixie but without interost b Mario should pay the value of the laptopto Trixie subject to interest ¢ Mario should pay the value of the laptapto Tnxie and damages because there are important files in the said laptop belongingto Trixie Marios not liable to pay Trixie 5 Acertain diamond ring owned by Mrs Cruz was stolen the night before Mrs. Cruz deliver the same to Mrs. Santos based on their agreement. tn this case ‘a. The diamond ring is considered lost Mis. Cruz & liable] pay MIS, ‘Santosdamages ¢ Mrs. Cruz stil hable to deliver thediamond ring to Mrs. Cruz d, Allief the above 36 A promised to give his celiphone to Bon condition that B will graduate with honors The legal consequence if the cellphone deteriorates would be: 2 A's obligation is extinguished regardiesswhether A was at fautt or not . B will bear the cost of the repair of the cellphone f the deterioration was not dueto As fauit ¢ Acannot rescind the obligation regardless whether the deterioration isdue io A's fault oF not d. None of the above is correct 37. As bound to give B his watch while B 's bound to give A his dog. In case the dogdies: a Ass still bound to give B his watch regardless whether B was at fault or not BA sno longer bound to give his watch to © A's only bound to give B his watch only wien B was not at fault None of the above is correct 38 A 1s bound to pay B P100,000 on or j\ oe ma ty b Amay recover trom 8 © Amay recover tro wath intrest None of the above the amount pat =m B the entire amenint 39. The debtor shall lose his ght ta make use of the period when ‘a When after the obligation has been contracted, he becomes insolvent, unless he gives a guaranty or security for the debt b When he does not furnish to the creator the guaranties of securities which he has promised ic. When by his own acts he has impaired ‘said guaranties or securities after their establishment, and when through a fortuitous event they disappear, unless he immediately gives new ones equally satisfactory ¢. Allof the above, 40. Tito, Vic and Joey are liable sodese che jointly and severally in the amourit > 30,000.00. In this case a. Jose can ask Tito to pay the entire amount b, Jose cannot ask Tito to pay the entre ~ amount ©. Jose should ask the three, Tito, Vie and Joey to pay if she wants to be paid the entire amount d. Jose can ask his debtors to pay their respective share only 41CBR and Steph are sclidariy obliged to #6 Minda a Specific car worth "500,000.00: The car was losl because of the fault of Steph, Hence, Minda asked them to pay the amount of P500,000 00. Pilo is ready to pay his share but Steph cannot In this caso’ , Minda can compe’ Pilo to pay the entire amount 7 b Minda cannot compel Pilo to pay the entire amount <. Pilo is relieved trom his obligation Becauee the car was lost due to Steph's fault x —v uses AW BUSINESS Lay C2 Rone hired tanto tree #2 Re to foe y got © P90 .09 masa They areca Rat 80 90s Ronn msson heap 00 Rome P5000 00 in mg td ay 4 20.009 & Allan can jus St PAY P5.000 it he want 10 do the act of necklace P Allan should pay Ronnie P5,000 is Cefauls © Gel Ging's necklace c Allen ets to.d0 What Ronnie askshim to do and also rs P5.000" 8° #9 als0 refuse to pay the, @ Atlan cannot refuse to do what Ronnieasks him to do because of his, contract with Ronnie X does ( gettng Ging's 88 Chona wanted to buy a new yobbhone Her tend Regilor knew about TEIN wanted to impress Chora. Sone Dought the exact pena wanted to buy: He did wathout 4 Chona’s consent Unknown ig egidor, Chena could have availed of Mae Gscount from aseler Inthe cage tocrega Should Day the entire amount x. toRegidor thearena 1S Only lable to pay 75% of theamount of the collphore tnoanena 'S Only lable to pay 25% of _- theamount of the cellphone 4 % Chona is not lable at al to Regidor 44 Troy is indebted to James in the Sere eES0.000)As a secunty, Troy offered fit lamond-embedded fing that oe veted by Missy. Missy paid the loan of Troy to James thinking that Troy will default She did itwithout Troy's consent in this case 3. Missy can get Troy's ring ithe cannotpay the P50,000 b. Missy cannot get Troy's ring even if R hefails to pay ©. Troy cannot be forced to pay Missy because she paid the loan without Troy'sconsent © Troy's only liable to give Missy the ring 45 Joshua owed Katring P100,000 Subject to 10% intorest (simple interest only). Joshua paid Katrina P20,000 Howmuch is not Joshua's indebtedness? a P100,000 46 Jose transacts in Us, Doliars. She y | liable to pay U: 5$ 10.000 to xYC = Company Ata declaring later passed ‘9a to pay in US Dollars or FONCY In this cage 47. Acontractis. a litical necessity to perform an Obligation for another person p.An agreement wherein at least two Persons agree that they will give oF ao ‘Something for the other. & A choice to give, 1 do or not to do 6.A meeting of minds between smo Feseens whereby one will pay a sum of ‘money to the ather person 48. The parties to a contract 2 Are fr8e to stpuiate on the terms and Conditions of the contract subject ip” Certain limitation b-Are fe to stipulats on the terms and fandltions of the contract without any limitation at all ©. Are not free to stipulate on the terms and conditions in al! cases d. Are not free to ‘Stipulate on the terms, and Conditions in certain cases: 49. An autocontract is; 2A contract where two distinct persons enter into it b A contract were one person contracts with himself or herself © Acontract where a party has already a Prepared form of contract and the other arty just have to take it of leave it A contract where only one of the parties has an obligationBUSINESS LAW ey })) 80. Contracts may be classified answered that she is wiling to buy the cue accordinggo is Importance oF ‘alpione, for the price bul just 15 places. FOF dependence on another contract as Is the contract perfected a No, because there 1s a quaitied follows a, Onerous, gratuitous of acceptance which constitutes an offer by remuneratwecontracts the buyor b Principal, acces: b Yes, because there perfected sate because the number of pieces is merely preparatorycontracts E Nominate ar innominate contracts because the nurber of places te merety, 4. Consensual, real oF formal contracts capable of paral detrvery i © Yos, because therewas already J\ 51 Acontract wherein only one of scapes theparties has an obligation is called Er hue pecause the offer is not ya certain 2 Unilateral contract Bilateral contract VW 57. Aqualied acceptance consbiutes: ¢ Commutative contract a Acceptance 4. Aleatory contract bb Counter-cfer © Meeting of the minds (52. This snot generally required in order @. Aloftne above \ tomate a contract valid a Consent of the parties, 7 A 58. The principle that states that the b Objectof thaconiract ( contract takes effect only between their & Causeofthe contract assigns and heirs is known as d. Specttc form of the contract ~ 3 Relativity A b. Mutuality \ 53, The meeting of the offer and @. Obligatory force theaccepiance is called: d. Freedom tostipulate > Consent b. Cause YP _s8KAllan borrowed money okies i coonmmgunicatin D col n. The loan was subject to 4. Consideration interest rate. XYZ Corporation wants now t to increase the interest rate without the 54. Consent in a contract means: consent of Allan. Allan, in this case, may a. The offer'cf ane.of the peries protest such action of XYZ Corporation by b. The acceptance of the offer subject to citing: acertain condition a. Principle of autonomy of contracts” ¢. The offer of several options b. Principle of mutuality of contracts 4 d The meeting of the offer ¢. Principle of relativity of contracts ‘andacceptance d. Principle that parties can stipulate as long as itis not contrary to law, morals, 55. Mario is trying to sell to Trixie his good customs, public policy, and public merchandise. He is offering his laptop order to Troxie for P20,000.00, Trixie asked Mario for a discount Mario responded ee 60. Contracts that are perfected by that he will ask his boss if he can lower delivery of the object of the obligation is the price in this case. , called a. The contract of sale is perfected ¥ a. Consensual contract » There is a contract of sale butit y b.Realcontract isunenforoeable tei c, Delivery contract © There ts no contact yet 4. Obligatory con 4. Travie should pay Mario the sy ciaisiaiiai entireamount of P20,000.00 / C81. Aowns.a property for rent which was leased by B }a.C without A's consent. Ih f natin trance . case A jater ratifies to contract, the Paula « om contract of lease isdD BUSINESS LAW a Valid b Void ¢ Voidable 4 Unenforceable perty for rent which was 62 Acwns a proy ue leased by B to C without A's conse’ this case, the contract of lease is: a Valid b Void © Voidabie d Unenforceable 63. A offered to sei his favorite car to B for? 400,000 Betore B was able to acceptthe offer, A died of sudden heart attack In this case 2 The heirs of A is obliged to sell the carte B . The heirs of A is not obliged to sell mmecar to 8 cc Bis obliged to buy the car None of the above 64 A offered to sell his favorite car to B TorP400,000_A gave B one week to accept the offer or the car will be sold to another In this case a. A cannot withdraw his offer to By beforethe lapse of one week : > Acan withdraw his offer to 8 after the lapse of one week ¢ Acan wthcraw his offer to Beven afterthe lapse of one week 4. None of the above 65. Who among the following cannot giveconsent to a contract a. John, who is deaf and mute b Rebecca who is 18 years old * ©. Connie, who is in lucid interval ¢_Allof them may give consent to acontract 66 A contract entered by A, who was drunk at the time of the contract and Bwho was in a normal state of mind is: a. Valid b. Void ©. Voidable d. Unenforceable 67 A needed a vehicle that can ride at least 10 persons as his family planned to go to Sagade_B offered his vehicle for hire A accepted the offer. When B delivered the car on the agreed date, A saw that the car can ride only 8 persons including the driver. In this case, the contract between A and B is. a. Valid b Void c Voidable d. Unenforceable 68. A participated in a public auction of vero are for sale conducted by 2 _ private auclion firm, The sale was “es is where is basis.” 4 participated in a bidding for certain item which he thought will be useful for his business. ft turned out that the items have no longer economic use. It this case 3) There was no mistake-and the > contractof sale is perfectly valid b) There was a mistake in this case and Ais allowed to invalidate the sale c) There was no mistake but A can stillrefund whatever he paid for the xK items d) None of the above C68. When one party in a contract was Cc sompelled by a reasonable and weil- ‘grounded fear ofan imminent and grave pags nis * property, Gr upon Te person or property of his. spause, ‘descendants or ascendanis, there is a) Fraud b) Violence: ) Intimiation od) Undue intt Z0-(Pal /as Caught Stealing the laptop ot f }ocause the laptop was damaged ue to Pilo's act, Steph asked Pilo pay her (P30,000.00'or else, Steph will sue Pil and would send him to jail. Pilo signed a contract to this effect. Later, he said that he acted with fear because of the intimidation employed by Steph. In this case. eo a. The contract is voidable b. The contract is unenforceable” c The contract is valid — d The contract is void —end-——-cagpih mr uses wee Use THE PROVIDED ANSWER SHEET. BLACK INK PEN ONLY ‘BACK OF THE ANSWER SHEET ISWER. valid contract of sale in the Philippines? ‘a note requirement for @ es ye subjoct matter ofthe contract Mrainin money or i's equivalent a contract of sale with a susponsive condition in the Philippines? fon of tho soli is immeciatoly enforceable A The oblonten of the solr Is subject 0th fulment ofthe contion “C. The contract is voidable . The contract is void ‘When is the ownership cf the thing sold transferred to the buyer in the Phillppines? ‘A. Upon pettection of the contract B. Upon delivery of the thing sold C. Upon payment of the price: 1 Upon registration with the relevant goverment agency 2. What isthe effect of 4. Which of the following is not a warranty of the setor in a contract of sale in the Philippines? ‘A. Warranty against eviction B, Warranty against hidden defects CC. Warranty against redhibitary defects 1D, Warranty against nermal wear and tear 5, Inthe Philippines, who bears the risk of loss or deterioration of the thing solid in a contract of sale? A The buyer B. The seller C. The carter or transporter ' 1, The Insurance company 6. Which of the following is net a remedy available to the buyer in case of breach of warranty by the seller In the Philippines? ‘A. Rescission of the contract 8. Reduction of the price C. Damages D. Specific performance 7. What is the period within which the buyer must notiy the seller of any hidden defects of the thing sold in the Philippines? A. 6 months from delivery B.1 year from delivery ©. 2 years trom delivery 1D. 3 years from delivery 8. Whatis the effect of a contract of sale with a resolutory condition in the Pnilippines? ‘A. The obligation of the seller is immediately enforceable The obligation of the sellar is subject tothe fulfilment ofthe condition C. The contracts voidable D. The contract Is void 9. What is the lability ofthe seller for the warranties in @ contract of sale in the Philippines? A. Strict liability B. Nogigenco-based liablty €. No liability D. Liability only for intentional acts 10. in the Philippines, when may the seller be considered in default in a contract of sale? ‘A. When the buyer fails to pay the price on time B. When the seller fails to deliver te thing sold on time C. When the buyer breaches any of the warranties of the seller . When the seller breaches any of the warranties of the buyer a[BUSINESS LAW [pO TERM EXAMINATION In contract of sale in the nate the effect ot the seller's breach of warranty against eviction Phitippes? ate oper may rescind the contract and recover the price paid B The buyer may claim damages against the seller €. The buyer may claim specific performance from the seller 15. The buyer has no remedy against the sellor 412, When may a buyer be considered in default in a contract of sale in the Philppines? A. When the buyer falls fo pay the price on time 8. When the seller falls to deliver the thing sold on time C_ When the buyer broaches any of the warranties of the seller 1D. When the seller breaches any of the warranties of the buyer 13. Which of the following is not a mode of extinguishing an obligation in a contract of sale in the Philippines? A. Payment B, Novation C. Rescission D. Substitution 14. What the effact ofa sale of a thing already owned by the buyer inthe Philppines? 7 A. The sale is void $ ¥ ad a ee 3 The sale is valid but the buyer cannot transfer ownership to another person . The sale is valid and the buyer ean transfer ovmership to another person D. The sale is vaia but the buyer sable to the real owner ofthe thing sold 15, What is the effect of a contract of sale that is simulated or fictitious in the Philippines? ‘A. The contract is void B. The contract is voidable ©. The contract is valid and enforceable 1D. The contract s valid but unenforceable 46. in the Philippines, when may the buyer be considered in default in a contract of sale? ‘A When the buyer fails to pay the price on time B. When the seller fals to doliver the thing sold on time C. When the buyer breaches any of the warranties of the seller 1D. When the seller breaches any of the warranties of the buyar 1), 17. When does ownership of the thing sold in a contract of salo transfer to the buyer? a. Upon payment of the price . Upon delivery of the thing sold ¢, Upon perfection of the contract . Upon registration of the sale with the government 48. In a contract of sale, what is the effect of a breach by the seller in delivering the thing sold? a. Buyer may rescind the contract b. Buyer must pay the full price» . Buyer must accspt the partial delivery d. Buyer has no remedy 49. Which of the following is not a warranty against eviction? a. Warranty against hidden defects . Warranty against encumbrance sc. Warranty of title d. Warranty of possession [\ 20. ina contract of sale, what s the effect of breach by the buyer in paying the price? a. Sellr may rescind the contract i. Soller must deliver the thing sold ¢. Seller must accept partial payment 4. Selle has no remedy (21. Which of the fallowing is not a ground for rescission of a contract of sal a, _Fraud'b, Mistake c. Incapacity d, Non-payment of the price 2a eRM EXAMINATION BUSINESS LAW 22, When may a seller refuse to deliver the thing sold to the buyer? a. Buyer is insolvent B Buyer le a minor. Buyer has not yet paid the price ‘6. Buyer hes changed his/her mind 23. n'a contact of sale, who is responsbo forthe payment of wansfer taxes and ‘Seller b. Buyer ¢. Both seller and buyer d. Neither seller nor buyer iinielensl 24. Which of he fotowing it not a mode of extinguishing a convat 3. Roseission b. Novation c. Prescripton d, Mutual agweerent eo » 2S. ina contract of sale, what is the effect of a warranty ist ces? 8 Buyer may demand the inmesiate delivery of he tang sox see 8, Buyer may demand a roduc af he ice, 6, Buyer may rescina te contrat d. Buyer may claim damages J) 26. Ina contract of sale, what is the effect of a breach by the buyer in ora ni wat Wika bby the buyer in taking delivery of the thing sold? b. Seller must deliver the thing sold . Soller must accept partial delivery 4d. Seller has no remedy 27. In a cantract of sale, which of the following is a breach of warranty against eviction? ‘A. The seller did not have the right to sell the thing BB. The thing sold was not as represented by the seller ©. The thing sold was not delivered to the buyer D. The thing sold was defective 28. In a contract of sate, which of the following is a breach of warranty against hidden defects? A. The seller did not have the right to soll the thing 6B. The thing sold was not as represented by the seller C. The thing sold was not deiivered to the buyer 1. The thing sold was defective 28. In a contact of sale, which of the following is a warranty againet eviction? ~ A. The seller warrants that the thing sold is free from hidden defec's, 1B. The seller warrants that the thing sold is free from encumbrances CC. The seller warrants that the buyer will not be disturbed in the possession of the thing sold D. The seller warrants thal the thing sold will conform to a particular standard ©) 30. Ina contract of sale, which of the following is a warranty against encumbrances? ‘A. The seller warrants that the thing sold fs free from hidden defects B. The seller warrants that the thing sold Is fre from encumbrances ©. The seller warrants that the buyer will not be disturbed in the possession of the thing sold D. The seller warrants that the thing sold will conform to a particular standard LZ. 31. Ina contract of sale, which of the following is a warranty that the seller has the right to sell the thing sold? 7 A. Warranty against hidden detects B. Warranty against eviction CC. Warranty against encumbrances D. Warranty against exhibitory defects 32. | In.a contract of sale, the seller is always obliged to transfer ownership of the thing sold to the buyer. ll: A buyer who has paid in full for the thing sold may net withhold payment of the balance even ifthe seller has not yet delivered the thing sold A. 4 statement is true both stataments are false B, 1% statement is false d. both statements are trueBUSINESS LAW 2°° TERM EXAMINATION 83, 1A contract of sale is always a consensual contract, in contract of sale, the buyer may demand the imi nl yet delivered the thing soi, jodiate transfer of ownership even Ifthe seller has, a. 1" statement is true . both statornents are false b. 1 statement Is false d. both statements are true 18 to the buyer upon the 34.1 Ina contract of sale, the ris of loas or dotortoratlon of the thing sold pat perfection of the contract. Il Tho seller in a contract of sale Is always bound to deliver the thing sold to the buyer personally, A. 1® statement is true c. both statements are false 8, 1% statement is false 1. both statements are true 36. |: Accontract of sale may be rescinded even ifthe dofect in the thing sold is only slight or insignificant, Ii seller who selis @ thing without being tie owner of such thing is always liable to the buyer for breach of | warranty against eviction. A. 1® statement is true «c.both statements are false B. 1 statoment is false a. both statements are true BEL deri sib psbA mn nets emieoneoy bc tte M1 ive dows not take part inthe transalon. I Accontract of sale may be rescinded eveff the defect inthe thing sold is knowm tothe buyer at tho time of the sale. A. 1® statements true «. both statements are falso B. 1 statement is false d. both statements are true —— 37. Which schools aro mandated to comply with the Recto Law? All private and public schools in the Philippines. BB. Only public schools in the Philippines C. Only private schools in the Philippines 38. What is the purpose of the Recto Law? ‘A. To promote nationalism and patriotism among Filipinos, especially the youth, B. To promote the use of foreign textbooks in schools. CC. To promote the use of English as the medium of instruction in schoois, — 39, Whois responsible for writing and producing the textbooks and other instructional materials under the Recto Law? A. Qualified Filipinos B, Foreigners C. Anyone who wants to write and produce them 40. When was the Racto Law enacted? ‘A. June 19, 1984 B. June 12, 1898 C. July 4, 1946 44. What is the significance of the Recto Law? ‘A. Itemphasizes the importance of knowing and understanding the country’s history, culture, and Identity Bi. tencourages Filipinos to forget thelr history and culture. ©. Iipromotes the use of foreign textbooks in schools. ~ 42, Whatis the punishment for schools that do not comply with the Recto Law? A. Afine of not less than P-1,000 but not more than 5,000 or Imprisonment of not less than six months but not more than one year, of both. B. A warning letter from the Department of Education, ©. No punishment, only @ reprimand 43, How can the Recto Law benefit the Philippines? ‘A. By promoting a deeper understanding and appreciation of Philppine ratory, culture, and Worty ‘among Fiipinos. E. By promoting the use of foreign textbooks In schools. ©. By encouraging Flipinos to forget thalr history and culture, 4yO 2°© TERM EXAMINATION BUSINESS LAW 144. Under the Maceda Law, which properties are specifically protected? ‘A. Residential units 8, Commercial unit C. industrial units D. All of tha above 45. How many years of installments must a buyer have pald to be entitled to the protections of the Maceda Law? A. Atleast two years B. Al least one-year C. At least three years D. At least six months 7+ 46, What is the minimum grace period provided to buyers under the Maceda Law? A. 60 days B. 30 days C. 90 days D, 120 days |} 47 Quring the grace period, can the buyer be charged any penalty or interast? A.No B. Yes, but only a minimal ammount . Yes, at the seller's discretion D. Yes, as mandated by the law }\ 48. Can a buyer surancor the propary tthe sale sr paying et eas 60% of te ttl contac price? A. Yes 8. No C. Only if the seller agrees D, Only if the buyer agrees: oat ce 48. What the denon cf cash suronder ale under he Maced Law? otal payments made, less necessary expenses anda easonable mount fr use of he property 8. Total payments made, loss necassary expenses: only ® © Tota payments made, less necassary expenses and taxes only ©. Total payments made, less all expenes IncurTed bythe seller, 50. What is the minum percentage of he tta contact pice that a buyer must havo palo be ented refund of the cash surrender value? en Semi o tee Be 50% B 60% ©: TO%D. Bor 7 51. Whats the purpose of the Maceda Law? A. To protect buyers of real estate on instalment payments and ensure transparency inthe dealings with sellers B. To promote real estate development in the Philippines . To provide tax incentives to real estate developers: D. To encourage foreign investment in the Philippine real estate sector 52. What is the main objective of the Condominium Act? ‘A. To provide for the creation, regulation, and management of condominiums in the Philippines B. To promote tourism in the Philippines CC. To encourage foreign investment in the Philippine real estate sector D, To protect sellers of real estate on installment payments [| 53. what's the defiiton ofa condominium under the Condorrinium Act? rm A. An interest in real property consisting of a separate interest in a unit in a residential, industrial or ‘commercial building and an undivided interest in common, directly o indiracty, inthe land on which itis, located and in other common areas of the building B. A single-family home located In a gated community . An apartment complex owned by a single entity D. A hotel that offers long-term stays A. 54. eer »contorinuan project can be sold to the public, what must be done? A. The project must be registered with the Housing and Land Use Regulatory Board (HLURB) B, The project must be approved by the Department of Tourism C. The project must be endorsed by the local government unit D. The project must be certified by a licensed engineer |) 55. Who is responsible for the management and maintenance of the common areas in a condominium? A. The condominium corporation B. The unit owner ©. The developer —_O. The local government unit 527° TERM EXAMINATION 48. What is the composition of a condominium corporation? Al the unit owners B. The developer and the unit owners 6. The local government unit and the unit owners . The buyers and sellers of the condominium units (57, wnatis te role ofthe board of directors in a condominium corporation? 275 manage and operate the common areas of the bullding prove the sale of eondornium un it the monthly assessments for the unit owners D. Te approve the construction of addtional bulidings within the project '58. What is the purpose of the monthly assessments paid by condominium unit owners? A, To cover the maintenance and operation of the common areas of the building B. To provide additional income for the developer C. To fund the construction of adalttonal buildings within the project D. To pay for the salaries of the board of directors = $8, What is the penalty for fallure to pay monthly assessments? ‘A. The suspension of the unit owner's voting rights 8. The foreclosure of the unit C. The revocation of the unit owner's ownership rights 7 1. The confiscation of the unit owner's personal property 60. What is the right of condominium unit owners regarding the use of the common areas? ‘A. The right to use the common areas B. The right to sell the common areas . The right to rent out the common areas 1D. The right to prohibit others from using the common areas |. What is the right of condominium unit owners regarding the transfer of ownership of thelr units? ‘A. The right to transfer thelr ownership of the unit BB. The obligation to seek the approval of the board of directors before transferring ownership C. The right to transfer ownership oniy to family members 1D. The obligation to pay a transfer tax tothe local government unit ©. ez. What Is the purpose of the Truth in Lending Act In the Philippines? A. To regulate the interest rates of loans B. To ensure lenders disclose accurate information to borrowers C. To provide financial assistance to borrowers D, To promote borrowing without restrictions (/ 63. Which agency it responsible for enforcing the Truth in Lending Act inthe Philippines? ‘A. Bangko Sentral ng Pilipinas (BSP) 8, Department of Finance (DOF) C, Securities and Exchange Commission (SEC) D ‘Consumer Financial Protection Bureau (CFPB) |. 64, What disclosure is required under the Truth in Lending Act in the Philippines? ‘A, Annual percentage rate (APR) B. Borrower's employment history C. Lenders credit score D. Lender's business address. |). 65. When should the borrower recelve the required disclosures under the Truth in Lending Act n ®e Prsienes! ‘A. Before the loan is granted B. After the loan is granted CC. During the loan term D. After the loan is repaidos. C ot Bb 68. (Des. Q 7. 2 TERM EXAMINATION BUSINESS LAW What is the purpose of the APR dleclosure under the Truth in Lending Act nthe Phiippines? (A. To disciose the total cost of the loan B. Te disclose the lender's contact information 6. To disclose the borrower's credit history To digclose the loan repayment schedule Whats the right of rescission under the Truth in Lending Actin the Priippinos? A Sorrower's right {9 cancel the loan without penaity B. Lender's right to Increase the interest rato C. Lenders right to seize collateral 1D. Borrower's right to defer loan payments What typeof loans are eigite for the right of rescission under the Truh in Lending Ae the Philippines? a A ing secured by the borrowers principal dweling B. Business joan C. Personal ioans D. Auto loans \ nats the time period for exercising the right of rescission under the Truth In Lancing Act the Philippines? RTS tsiness days 8. 7 business days C. 10 calendar days D. 30 calendar days What can borrowers doi hey believe @ onder has violated the Truth in Lending Acti tho Philippines?” ‘A Fille a complaint with the regulatory agency B. Seek legal assistance ©. Botn A and B 1. Nothing, as there are no remedies avaliable 71. Which government agency Is primary responsible for implomenting the Ant-Money Laundering Act (AMLA) in the Philippines? «3, Department of Justice . Bangko Sentral ng Plipinas ¢ Securites and Exchange Commission 4, AntkMoney Laundering Councll A. 72, whats the main objective of the Anti-Money Laundering Act (AMEA)? Wier event the flow of legal proceeds through franca netuions B. To cnsure the stability ofthe Philippine economy ©. To protect the interests of depositors and investors § To facilitate the growth of the banking industry A. 75. wnetis the maximum penalty for violating the Ant. Money Laundering Act (AMLA)? wet isonmant of up t0 70 years and a fine cf up fo 1 mon Pears o retfsonment of up 0 20 years and a feof up to & mien Pace 2 imprisanment of up to 30 years ane 2 fine of UP oo 7 tmiion pesos 5S Imorisonment of up to 49 years and a fe f uP 10 20 rrilion pesos “V7 74, Which of the folowing is considered 9 "covered transaction® under the Anti-Money Laundering Act (AMLAY? Sey section involving an arnount greater tan 1 millon peace Fearne anapidove n nature orinconeksen va he customers profile a reneection tat Involves a polically exposed person (PEP) 4. All of the above 76, what isthe threshold amount for reporting a covered transaction under the Anti-Money Laundering Act (AMLAY? 200 pesos b. 100,000 pesos c. 800,000 pesos d. 1,000,000 Psso8 76. Which ofthe folowing is not considered @ money laundeting offense under he ‘Anti-Money Laundering ‘Act (AMLA)? a seauiston, possession oF use of proceeds from an uniewful actly ao aenis sen conversion, or transfer of proceeds from an unlawul avy 2 eon eymot covered rensacions to the Ant-Monay Laundering Counc! 4. Allo the above are considered money laundering offenses 72° TERM E) XAMINATION. BUSINESS LAW [\\ 77. wien ot tne folowing Is key feature ofthe Ant-Money Laundering Act (MUAY? eereStirs fnanetal nsttuione to maintain records of customer transactions Bt prohibits the use of anonymous accounts and wansactions 2 Proves for the freedng and frtetur of assets derived from unlawful acts d. All ofthe above 78, Which of the folowing is nt a designated non-financial business or profession (ONFBP) under the Ant- ‘Money Laundering Act (AMLAY? Casinos and othor gaiing establishments . Real estate agents and developers ¢. Lawyers, notaries, and accountants 6. Benks and other financial insttutions 79. what the ole of the Ant-Meney Laundering Council (AMG) inthe implementation of the Anti-Money jundering Act (AMLA)? See ceponsiie fr investigating and prosecuting money laundering cases Ets responsible fr issuing rulos and regulations for implementing the AMLA is responeibio for receiving and analyzing suspicious transaction reports itis responsible for providing technical assistance to law enforcement agencies in anti-money laundering cases, |A) To promote transparency in the foreign currency banking system, 8) To attract foreign investment by providing favorable terms for foreign currency deposits ) To protect the confidentiality and promote the stably of the foreign currency banking system. 1) To regulate the exchange rate of foreign currencies, C 0, . What isthe main objective of Republic Act 6426? 81. Who can open a foreign currency deposit account under Republic Act 6426? ‘A) Philippine clizens and residents ony, B) Foreign nationals only. ©) Both Philippine ctizens and residente, and foreign nationals. 1B) None of the above. C 82. How are foreign currency deposit accounts diflerent from regular bank accounts? |A} They are subject to citferent interest rates. 8) They can only be used for foreign transactions. C) They are denominatad in foreign currencies. 1D) They are not insured by the Philippine Deposit Insurance Corporation. [D_83. What the primary beneft ofa foreign currency deposit account? |A) Higher interest rates compared to regular bank accounts B) Lower taxes and fees compared to regular bank accounts. ©) More flexible withdrawal and deposit options compared to regular bank accounts. 5) Greater secuty and cenfidertialty compared to reguler bank accounts 4, What isthe maximum amount of foreign currancy deposits that can be windrawn without prior notice ¥ under Republic Act 6426? {A) USS 10,000 B) USS 60,000 C) USS 100,000 D) There is no limit C & iiggnn acute information about a foreign currency deposit account under Republic Act 426? / ‘A) Only the account holder. B) Only authorized government officials. C) Only authorized bank personnel. 1D) Only the account nolder and authorized government officials. 166, Whot is the panaity for unauthorized élsclosure of information about a foreign currency deposit account under Republic Act 64267 ‘Ay imprisonment for 6 months to 3 years, and a fine of P10,000 to P20,000. B) Imprisonment for 2 to 4 years, and a fine of P20,000 to P50,000. C) Imprisonment for 5 to 10 years, and a fine of P'50,000 to 100,000. 15) Imprisonment for 10 to 20 years, and a fine of 100,000 to 600,000.~ TERM EXAMINATION BUSINESS LAW 87, What s the purpose of the secracy provision under Repubile Act 64267 1) To promote waneparency i he foreign curency banking eysto, 8) To protect the confidentaty and promote the stabilty of the foreign currency CC) To prevent money laundering and ther financial crrmes, yeni yeti, 1D) To regulate the exchange rate of foreign currencies '), 88, What is the purpose of the Bank Secrecy Law In the Philippines? V {A) To promote transparency in the banking system 8) To protwet the privacy and secu of bank deposits and account Information C) To encourage illegal activities and tax evasion 1) None of the above >) 83, Under sat agmatanore can banks disclose the details of a depositor's account? \ A) In all circumstances BB) Only in cases of tax fraud C) Only in cases of impeachment proceedings 1) Only in cases of inheritance disputes 90. Who is authorized to access bank account information under the Bi ‘A) Anyone whe requests it ank Secrecy Law? B) Only the account holder (C) Only authorized government officials. 1D) Both Band C 91. Can foreign bank accounts be covered under the Bank Secrecy Law? A) Yes, as long as they are maintained by Philippine residents 'B) Yes, as long as they are maintained by Philippine citizens C) No, only domestic bank accounts are covered 1D) None of the above 2 hats the main purpose of he Bank Serer La? ) To promote corruption and tax evasion 68) To ensure transparency in the banking system C) To protect the privacy and securty of banking transactions 1} None of the above 93. What is the penalty for violating the Bank Secrecy Lew? A) A fine of P10,000 to P20,000 BB) Imorisonment for up to 1 year C) Both A and B ) Imprisonment for 6 months to 2 years, and a fine of P10,000 to P20,000 ‘94, What is the Bank Secracy Law designed to protect? ‘A) The confidentiality of bank deposits and account information B) The interests of the government C) The interests of the banking sector ) The rights of depositors to engage in legal activities 95, Which of the following is NOT an exception to the Bank Secrecy Law? A) Cases of tax fraud- B) Cases of money laundering: C) Cases of impeachment proceedings D) Cases of inheritance disputes .ooass bank account information under the Bank Secrecy Law? _) %6. Who can initiate 2 request to a ‘The government D) All of the above A). The account holder B) The bank C) —END-—