POLITICAL LAW

I.
A priority thrust of the Administration is the change of the form of government from unitary to
federal. The change can be effected only through constitutional amendment or revision.

a. What are the methods of amending the Constitution? Explain briefly each method. (3%)

b. Cite at least three provisions of the Constitution that need to be amended or revised to effect the
change from unitary to federal, and explain briefly why. (3%)

II.
A.
Under the doctrine of immunity from suit, the State cannot be sued without its consent. How may
the consent be given by the State? Explain your answer. (3%)

B.
The doctrine of immunity from suit in favor of the State extends to public officials in the performance
of their official duties. May such officials be sued nonetheless to prevent or undo their oppressive or
illegal acts, or to compel them to act? Explain your answer. (3%)

C.
Do government-owned or -controlled corporations also enjoy the immunity of the State from suit?
Explain your answer. (3%)

III.
State A and State B, two sovereign states, enter into a 10-year mutual defense treaty. State A finds that
more progressive State B did not go to the aid of State A when it was threatened by its strong neighbor
State C. State B reasoned that it had to be prudent and deliberate in reacting to State C because of
their existing trade treaties.

a. May State A unilaterally withdraw from its mutual defense treaty with State B? Explain your answer.
(2.5%)

b. What is the difference between the principles of pacta sunt servanda and rebus sic stantibus in
international law? (2.5%)

c. Are the principles of pacta sunt servanda and rebus sic stantibus relevant in the treaty relations between
State A and State B? What about in the treaty relations between State B and State C? Explain your
answer. (2.5%)

IV.
a. What is the pardoning power of the President under Art. VIII, Sec. 19 of the Constitution? Is the
exercise of the power absolute? (4%)

b. Distinguish pardon from amnesty. (4%)

 V.
a. What is the right of legation, and how is it undertaken between states? Explain your answer. (2%)

b. Under this right, may a country like Malaysia insist that the Philippines establishes a consulate in
Sabah to look after the welfare of the Filipino migrants in the area? Explain your answer. (2%)

VI.
A.
The President appoints the Vice President as his Administration’s Housing Czar, a position that
requires the appointee to sit in the Cabinet. Although the appointment of the members of the Cabinet
requires confirmation by the Commission on Appointment (CA), the Office of the President does not
submit the appointment to the CA. May the Vice President validly sit in the Cabinet? (2.5%)

B.
The Executive Department has accumulated substantial savings from its appropriations. Needing
P3,000,000 for the conduct of a plebiscite for the creation of a new city but has no funds appropriated
soon by the Congress for the purpose, the COMELEC requests the President to transfer funds from
the savings of the Executive Department in order to avoid a delay in the holding of the plebiscite.

May the President validly exercise his power under the 1987 Constitution to transfer funds from the
savings of the Executive Department, and make a cross-border transfer of P3,000,000 to the
COMELEC by way of augmentation? Is your answer the same if the transfer is treated as aid to the
COMELEC? Explain your answer. (4%)

VII.
Give the limitations on the power of the Congress to enact the General Appropriations Act. Explain
your answer. (5%)

VIII.
A bank acquired a large tract of land as the highest bidder in the foreclosure sale of the mortgaged
assets of its borrower. It appears that the land has been originally registered under the Torrens system
in 1922 pursuant to the provisions of the Philippine Bill of 1902, the organic act of the Philippine
Islands as a colony of the USA. Sec. 21 of the Philippine Bill of 1902 provided that “all valuable
mineral deposits in public lands in the Philippine Islands, both surveyed and unsurveyed, are hereby
declared to be free and open too exploration, occupation, and purchase, and the land in which they
are found to occupation and purchase, by citizens of the United States, or of said Islands.” Sec. 27 of
the law declared that a holder of the mineral claim so located was entitled to all the minerals that lie
within his claim but he could not mine outside the boundary lines of his claim.

The 1935 Constitution expressly prohibited the alienation of natural resources except agricultural
lands. Sec. 2, Art. XII of the 1987 Constitution contains a similar prohibition, and proclaims that all
lands of public domain, waters, minerals, coal, petroleum, and other mineral oils, all forces of potential
energy, fisheries, forests, or timber, wildilfe, flora, and fauna, and other natural resources are owned
by the State. This provision enunciates the Regalian Doctrine.
May the Government, on the basis of the Regalian Doctrine enunciated in the constitutional
provisions, deny the bank its right as the owner of the mineral resources underneath the surface of its
property as recognized under the Philippine Bill of 1902? Explain your answer. (5%)

IX.
A.
Ambassador Robert of State Alpha committed a very serious crime while he headed his foreign
mission in the Philippines. Is he subject to arrest by Philippine authorities? Explain your answer. (3%)

B.
Extradition is the process pursuant to a treaty between two State parties for the surrender by the
requested State to the custody of the requesting State of a fugitive criminal residing in the former.
However, extradition depends on the application of two principles – the principle of specialty and the
dual criminality principle. Explain these principles. (4%)

C.
The President signs an agreement with his counterpart in another country involving reciprocity in the
treatment of each other country’s nationals residing in the other’s territory. However, he does not
submit the agreement to the Senate for concurrence.

Sec. 21, Art. VII of the Constitution provides that no treaty or international agreement shall be valid
and effective without such concurrence.

Is the agreement signed by the President effective despite the lack of Senate concurrence? Explain
your answer. (4%)

X.
A.
Under the enrolled bill doctrine, the signing of a bill by both the Speaker of the House of
Representatives and the President of the Senate and the certification by the secretaries of both Houses
of Congress that the bill was passed on a certain date are conclusive on the bill’s due enactment.
Assuming there is a conflict between the enrolled bill and the legislative journal, to the effect that the
enrolled bill signed by the Senate President and eventually approved by the President turned out to be
different from what the Senate actually passed as reflected in the legislative journal.

a. May the Senate President disregard the enrolled bill doctrine and consider his signature as invalid
and of no effect? (2.5%)

b. May the President thereafter withdraw his signature? Explain your answer. (2.5%)

B.
Sec. 26(2), Art. VI of the Constitution provide that no bill passed by either House of Congress shall
become a law unless it has passed three readings on separate days and printed copies of it in its final
form have been distributed to the Members of the House three days before its passage.

Is there an exception to the provision? Explain your answer. (3%)

XI.
Sec. 17, Art. VI of the Constitution establishes an Electoral Tribunal for each of the Houses of
Congress, and makes each Electoral Tribunal “the sole judge of all contests relating to the election,
returns, and qualifications of their respective Members.” On the other hand, Sec. 2(1).C Art. IX of
the Constitution grants to the COMELEC the power to enforce and administer all laws and
regulations “relative to the conduct of an election, plebiscite, initiative, referendum, and recall.”

Considering that there is no concurrence of jurisdiction between the Electoral Tribunals and the
COMELEC, state when the jurisdiction of the Electoral Tribunals begins, and the COMELEC’s
jurisdiction ends. Explain your answer. (4%)

XII.
The Congress establishes by law Philippine Funds, Inc., a private corporation, to receive foreign
donations coming from abroad during national and local calamities and disasters, and to enable the
unhampered and speedy disbursements of the donations through the mere action of its Board of
Directors. Thereby, delays in the release of the donated funds occasioned by the stringent rules of
procurement would be avoided. Also, the releases would not come under the jurisdiction of the
Commission on Audit (COA).

a. Is the law establishing Philippine Funds, Inc., constitutional? Explain your answer. (3%)

b. Can the Congress pass the law that would exempt foreign grants from the jurisdiction of the COA.
Explain your answer. (3%)

XIII.
Command responsibility pertains to the responsibility of commanders for crimes committed by
subordinate members of the armed forces or other persons subject to their control in international
wars or domestic conflicts. The doctrine has now found application in civil actions for human rights
abuses, and in proceedings seeking the privilege of the writ of amparo.

a. What are the elements to be established in order to hold the superior or commander liable under
the doctrine of command responsibility? (4%)

b. May the doctrine of command responsibility apply to the President for the abuses of the armed
forces (AFP and PNP) given his unique role as the commander-in-chief of all the armed forces?
Explain your answer. (4%)

XIV.
To fulfill a campaign promise to the poor folk in a far-flung area in Mindanao, the President requested
his friend, Pastor Roy, to devote his ministry to them. The President would pay Pastor Roy a monthly
stipend of P50,000 from his discretionary fund, and would also erect a modest house of worship in
the locality in an area of the latter’s choice.

Does the President thereby violate any provisions of the Constitution? Explain your answer. (3%)

XV.
a. According the Sec. 3, Art. VIII of the Constitution, the Judiciary shall enjoy fiscal autonomy. What
does the term “fiscal autonomy” signify? Explain your answer. (3%)
b. May a complaint for disbarment against the Ombudsman prosper during her incumbency? Explain
your answer. (3%)

c. Sec. 3, Art. XI of the Constitution states that “[n]o impeachment proceedings shall be initiated
against the same official more than once within a period of one year.” What constitutes initiation of
impeachment proceedings under the provision? (3%)
 LABOR LAW
I
a. What are the accepted tests to determine the existence of an employer-employee relationship? (5%)

b. Applying the tests to determine the existence of employer-employee relationship, is a jeepney driver
operating under the boundary system an employee of the jeepney operator or a mere lessee of the
jeepney? Explain your answer. (3%)

II
Procopio was dismissed from employment for stealing his co-employee Raul’s watch. Procopio filed
a complaint for illegal dismissal. The Labor Arbiter ruled in Procopio’s favor on the ground that Raul’s
testimony was doubtful, and, therefore, the doubt should be resolved in favor of Procopio. On appeal,
the NLRC reversed the ruling because Article 4 of the Labor Code – which states that all doubts in
the interpretation and implementation of the provisions of the Labor Code, including the
implementing rules and regulations, shall be resolved in favor of labor – applied only when the doubt
involved the “implementation and interpretation” of the Labor Code; hence, the doubt, which
involved the application of the rules on evidence, not the Labor Code, could not necessarily be
resolved in favor of Procopio. Was the reversal correct? Explain your answer. (3%)

III
a. Andrew Manning Agency (AMA) recruited Feliciano for employment by Invictus Shipping, its
foreign principal. Meantime, AMA and Invictus Shipping terminated their agency agreement. Upon
his repatriation following his premature termination, Feliciano claimed from AMA and Invictus
Shipping the payment of his salaries and benefits for the unserved portion of the contract. AMA
denied liability on the ground that it no longer had an agency agreement with Invictus Shipping. Is
AMA correct? Explain your answer. (3%)

b. As a rule, direct hiring of migrant workers is not allowed. What are the exceptions? Explain your
answer. (2.5%)

c. Phil, a resident alien, sought employment in the Philippines. The employer, noticing that Phil was a
foreigner, demanded that he first secures an employment permit from the DOLE. Is the employer
correct? Explain your answer. (2.5%)

IV.
The Regional Tripartite Wages and Productivity Board (RTWPB) for Region 3 issued a wage order on
November 2, 2017, fixing the minimum wages for all industries throughout Region 3.

a. Is the wage order subject to the approval of the National Wages and Productivity Commission
before it takes effect? (2%)

b. The law mandates that no petition for wage increase shall be entertained within a period of 12
months from the effectivity of the wage order. Under what circumstances may the Kilusang Walang
Takot, a federation of labor organizations that publicly and openly assails the wage order as blatantly
unjust, initiate the review of the wage increases under the wage order without waiting for the end of
the 12-month period? Explain your answer. (3%)
 V.
a. Percival was a mechanic of Pacific Airlines. He enjoyed a meal break of one hour. However, during
meal breaks, he was required to be on standby for emergency work. During emergencies, he was made
to forego his meals or to hurry up eating. He demanded payment of overtime for work done during
his meal periods. Is Percival correct? Explain your answer. (3%)

b. Distinguish a learner from an apprentice. (4%)

c. Are there differences between a househelper and a homeworker? Explain your answer. (4%)

VI.
a. One of Pacific Airline’s policies was to hire only single applicants as flight attendants, and considered
as automatically resigned the flight attendants at the moment they got married. Is the policy valid?
Explain your answer. (2.5%)

b. Tarcisio was employed as operations manager and received a monthly salary of P25,000 through
his payroll account with DB Bank. He obtained a loan from Roberto to purchase a car. Tarcisio failed
to pay Roberto when the loan fell due. Roberto sued to collect, and moved to garnish Tarcisio’s payroll
account. The latter vigorously objected and argued that salaries were exempt from garnishment. Is
Tarcisio correct? Explain your answer. (3%)

VII.
Dr. Crisostomo entered into a retainer agreement with AB Hotel and Resort whereby he would
provide medical services to the guests and employees of AB Hotel and Resort, which, in turn, would
provide the clinic premises and medical supplies. He received a monthly retainer fee of P60,000, plus
70% share in the service charges from AB Hotel and Resort’s guests availing themselves of the clinic’s
services. The clinic employed nurses and allied staff, whose salaries, SSS contributions, and other
benefits he undertook to pay. AB Hotel and Resort issued directives giving instructions to him on the
replenishment of emergency kits and forbidding the clinic staff from receiving cash payments from
the guests. In time, the nurses and the clinic staff claimed entitlement to rights as regular employees
of AB Hotel and Resort, but the latter refused on the ground that Dr. Crisostomo, who was their
employer, was an independent contractor. Rule with reasons. (4%)

VIII.
Marciano was hired as Chief Engineer on board the vessel M/V Australia. His contract of employment
was for nine months. After nine months, he was re-hired. He was hired for a third time after another
nine months. He now claims entitlement to the benefits of a regular employee based on his having
performed tasks usually necessary and desirable to the employer’s business for a continuous period of
more than one year. is Marciano’s claim tenable? Explain your answer. (3%)

IX.
Section 255 of the Labor Code recognizes three categories of employees, namely: managerial,
supervisory, and rank-and-file.

a. Give the characteristics of each category of employees, and state whether the employees in each
category may organize and form unions. Explain your answer. (5%)
b. May confidential employees who assist managerial employees and who act in a confidential capacity
or have access to confidential matters being handled by persons exercising managerial functions in the
field of labor relations form, or assist, or join labor unions? Explain your answer. (2.5%)

X.
a. The labor sector has been loudly agitating for the end of labor-only contracting, as distinguished
from job contracting. Explain these two kinds of labor contracting, and give the effect of a finding
that one is a labor-only contractor. Explain your answers. (4%)

b. What are the grounds for validly terminating the services of an employee based on a just cause?
(5%)

c. Give the procedure to be observed for validly terminating the services of an employee based on a
just cause. (4%)

XI.
a. The modes of determining the exclusive bargaining agent of the employees in a business are: (a)
voluntary recognition; (b) certification election; and (c) consent election. Explain how they differ from
one another. (4%)

b. Marcel was the Vice President for Finance and Administration and a member of the Board of
Directors of Mercedes Corporation. He brought a complaint for illegal suspension and illegal dismissal
against Mercedes Corporation, which moved to dismiss the complaint on the ground that the
complaint pertained to the jurisdiction of the RTC due to the controversy being intracorporate based
on his positions in the corporation. Marcel countered that he had only been removed as Vice President
for Finance and Administration, not as a member of the Board of Directors. he also argued that his
position was not listed as among the corporate offices in Mercedes Corporation’s by-laws. Is the
argument of Marcel correct? Explain your answer. (2.5%)

c. State the jurisdiction of the Voluntary Arbitrator, or Panel of Voluntary Arbitrators in labor
disputes? (4%)

XII.
A.
Juanito initiated a case for illegal dismissal against Mandarin Company. The Labor Arbiter decided in
his favor, and ordered his immediate reinstatement with full backwages and without loss of seniority
and other benefits. Mandarin Company did not like to allow him back in its premises to prevent him
from influencing his co-workers to move against the interest of the company; hence, it directed his
payroll reinstatement and paid his full backwages and other benefits even as it appealed to the NLRC.
A few months later, the NLRC reversed the ruling of the Labor Arbiter and declared that Juanito’s
dismissal was valid. The reversal ultimately became final.

May Mandarin Company recover the backwages and other benefits paid to Juanito pursuant to the
decision of the Labor Arbiter in view of the reversal by the NLRC? Rule with reasons. (2.5%)

B.
Gene is a married regular employee of Matibay Corporation. The employees and Matibay Corporation
had an existing CBA that provided for funeral and bereavement aid of P15,000 in case of the death of
a legal dependent of a regular employee. His widowed other, who had been living with him and his
family for many years, died; hence, he claimed the funeral aid. Matibay Corporation denied the claim
on the basis that she had not been his legal dependent as the term legal dependent was defined by the
Social Security Law.

a. Who may be the legal dependents of Gene under the Social Security Law? (2.5%)

b. Is Gene entitled to the funeral aid for the death of his widowed mother? Explain your answer. (2%)

C.
Rosa was granted vacation leave by her employer to spend three weeks in Africa with her family. Prior
to her departure, the General manager of the company requested her to visit the plant of a client of
the company in Zimbabwe in order to derive the best manufacturing practices useful to the company.
She accepted the request because the errand would be important to the company and Zimbabwe was
anyway in her itinerary. It appears that she contracted a serious disease during the trip. Upon her
return, she filed a claim for compensation, insisting that she had contracted the disease while serving
the interest of her employer.

Under the Labor Code, the sickness or death of an employee, to be compensable, must have resulted
from an illness either definitely accepted as an occupational disease by the Employees’ Compensation
Commission, or caused by employment subject to proof that the risk of contracting the same is
increased by working conditions.

Is the serious disease Rosa contracted during her trip to Africa compensable? Explain your answer.
(2.5%)

XIII.
A.
Given that the liability for an illegal strike is individual, not collective, state when the participating
union officers and members may be terminated from employment because of the illegal strike. Explain
your answer. (4%)

B.
A sympathetic strike is stoppage of work to make common cause with other strikers in another
establishment or business. Is the sympathetic strike valid? Explain your answer. (1%)

C.
Due to business recession, Ballistic Company retrenched a part of its workforce. Opposing the
retrenchment, some of the affected employees staged a strike. Eventually, the retrenchment was found
to be justified, and the strike was declared illegal; hence, the leaders of the strike, including the
retrenched employees, were declared to have lost their employment status.

Are the striking retrenched employees still entitled to separation pay under Sec. 298 of the Labor Code
despite the illegality of their strike? Explain your answer. (2%)

XIV.
Pursuant to his power under Sec. 278(g) of the Labor Code, the Secretary of Labor assumed
jurisdiction over the three-day old strike in Armor Steel Plates, Inc., one of the country’s bigger
manufacturers of steel plates, and ordered all the striking employees to return to work. The striking
employees ignored the order to return to work.

a. What conditions may justify the Secretary of Labor to assume jurisdiction? (2.5%)

b. What are the consequences of the assumption of jurisdiction by the Secretary of Labor, and of the
disobedience to the return to work? Explain your answer. (2.5%)
 LEGAL ETHICS
I.
A.
Brando & Luzon Law Office had a retainer agreement with Gregory, a businessman with shady
connections. Gregory was recently charged in the RTC in Manila with money laundering in relation
to an illegal drugs syndicate using Cable Co., his holding company, as its money laundering conduit.
The members of the Brando & Luzon Law Office assigned to handle Gregory's account, including
yourself, were implicated in the money laundering case for their role in the incorporation of Cable Co.
and in the active management of its business affairs.

In a bid to fortify the case against Gregory and the others, the public prosecutor approaches you (as
the least guilty person who will qualify for a discharge as a state witness) and offers to make you a
state witness. Should you accept the offer? Explain your answer. (5%)

B.
Under the facts of the preceding question, assume that you had resigned from the Brando & Luzon
Law Office prior to the filing of the money laundering case against Gregory and the others, and that
you were not implicated in the case. However, you had assisted in handling the Cobra Co. account
during your time with the law firm. Cobra Co. was largely owned by Cable Co.

The public prosecutor handling the case against Gregory and the others asks you, as a former member
of the Brando & Luzon Law Office, to help strengthen the case for the Government, and hints that
you may be implicated in the case if you do not cooperate. What is your legal and ethical course of
action? Explain your answer. (5%)

II.
A.
Pedro Tigas, a known toughie, asked Atty. Chloe to meet with him in the Jollibee Restaurant in
Harrison Plaza because he wanted to seek her legal advice on an important matter. Atty. Chloe had
once before been consulted by Pedro Tigas, who had then paid her well. When they met in Jollibee
Restaurant, he confided his planned assassination of Pepeng Taga, his rival for control of the
neighborhood in San Andres Bukid, Manila. He wanted her to represent him should he be
apprehended for the assassination. Atty. Chloe did not agree, and left the restaurant in a hurry before
Pedro Tigas could utter anything more.

A few days afterwards, Pepeng Taga was killed near his house in San Andres Bukid, Manila. The police
follow-up team arrested Pedro Tigas on the basis of testimony by at least two residents that they had
heard him saying two days before the killing that Pepeng Taga would not live beyond 48 hours. Should
Atty. Chloe reveal to the police investigator what Pedro Tigas had stated to her at the Jollibee
Restaurant without violating the confidence of the latter as a client? Explain your answer. (4%)

B.
Assuming that the meeting between Pedro Tigas and Atty. Chloe in Jollibee Restaurant occurred after
the killing of Pepeng Taga, and in that meeting Pedro Tigas expressly admitted to Atty. Chloe in strict
confidence as his lawyer that he had shot Pepeng Taga. Is Atty. Chloe ethically bound to reveal the
admission of Pedro Tigas to the police investigator what Pedro Tigas had stated to her at the Jollibee
Restaurant? Explain your answer. (4%)

III.
A.
Alleging that Atty. Frank had seduced her when she was only 16 years old, and that she had given
birth to a baby girl as a result, Malen filed a complaint for his disbarment seven years after the birth
of the child charging that he was a grossly immoral person unworthy and unfit to continue in the Legal
Profession. In his comment, Atty. Frank argued that the complaint for disbarment should be dismissed
because of prescription.

Explain whether or not Atty. Frank's argument is justified. (4%)

B.
Beth administratively charged her former lawyer, Atty. Rawet, with gross misconduct and gross
ignorance of the law for the latter's inadequate legal representation of her in her suit against her
neighbor. Midway during the investigation, Beth decided to migrate to Australia. Learning about her
plans, Atty. Rawet approached her and pleaded for her understanding. He was able to persuade her to
execute an affidavit of desistance in respect of her administrative complaint. He submitted the affidavit
of desistance to the Supreme Court, and moved to dismiss the charge against him.

Will the affidavit of desistance warrant the dismissal of the administrative charge? Explain your
answer. (4%)

IV.
Atty. Jessa was the counsel for Mr. Nolan, a cantankerous millionaire, in the latter's personal case.
Soon after the case was submitted for decision, Mr. Nolan withdrew the files from Atty. Jessa and
informed her that he was engaging another lawyer. On that same day, a copy of the decision in the
case was received by Atty. Jessa but she did not do anything anymore with the decision. She did not
also file a withdrawal of her appearance. Mr. Nolan's new counsel did not file any notice of his
appearance. By the time Mr. Nolan found out about the adverse decision, his period to appeal had
lapsed.

Was the service of the decision on Atty. Jessa still effective? Explain your answer. (4%)

V.
Eva consulted Atty. Doble Kara, a well-known solo practitioner, to represent her as a probable heir
to the huge estate of her late lamented grandaunt who died without issue. After Atty. Doble Kara
perused the documents relevant to the estate presented by Eva, he told Eva that he could not be of
help to her.

A few days later, Eva learned that Atty. Doble Kara had just initiated intestate proceedings involving
the same estate in the RTC, and the petitioner seeking appointment as administratrix was Mely, Eva's
hostile cousin and co-heir to the estate.

Eva moved to immediately disqualify Atty. Doble Kara from representing Mely on the ground of
conflict of interest, but Atty. Doble Kara explained to the estate court that there was no conflict of
interest because he had no lawyer-client relationship with Eva. He further indicated that Eva had not
also paid him any retainer fee.

Given his explanations to the estate court, may Atty. Doble Kara ethically represent Mely? (4%)

VI.
For services to be rendered by Atty. Hamilton as counsel for Gener in a civil case involving the
recovery of the ownership and possession of a parcel of land with an area of 5,000 square meters, the
two of them agreed on a success fee for Atty. Hamilton of ₱50,000.00 plus 500 square meters of the
land. The trial court ultimately rendered judgment in favor of Gener, and the judgment became final
and executory. After receiving ₱50,000.00, Atty. Hamilton demanded the transfer to him of the
promised 500 square meters of the land.

Instead of complying, Gener brought an administrative complaint charging Atty. Hamilton with
violation of the Code of Professional Responsibility and Art. 1491(5) of the Civil Code for demanding
the delivery of a portion of the land subject of the litigation.

Is Atty. Hamilton liable under the Code of Professional Responsibility and the Civil Code? Explain
your answer. (4%)

VII.
A.
You had just taken your oath as a new lawyer. The secretary of a big university offered to get you as
the university's notary public. She explained that the faculty and students would be sent to you to have
their documentations and affidavits notarized; and that the arrangement would be very lucrative for
you. However, the secretary wants you to share with her half of your earnings throughout the year.
Will you agree to the arrangement proposed by the secretary of the university? Explain your answer.
(4%)

B.
The plaintiff died during the pendency of the case in the RTC. If you were the counsel of the plaintiff,
what is the last duty you need to discharge in behalf of the late client before your professional
engagement for the case may be deemed terminated? Explain briefly your answer. (4%)

VIII.
A.
Sancho Mahilig went to the office of Atty. Charm to engage her legal representation in the criminal
case for adultery that the husband of his socialite friend had brought against him in the City
Prosecutor's Office in Manila. Atty. Charm thoroughly interviewed Sancho in her office with only
Linda, the secretary/stenographer of Atty. Charm, the only other person present. On that occasion,
Sancho candidly informed Atty. Charm about his illicit affair with the socialite wife, and gave many
details. Linda faithfully recorded the interview.

During the trial of the criminal case for adultery, the trial prosecutor requested the court to issue a
subpoena duces tecum to compel the production of the record of the interview and a subpoena ad
testificandum to compel Linda to testify on the admission of the affair by Sancho. Atty. Charm
objected to the request on the basis of lawyer-client confidentiality.
If you were the trial judge, how will you resolve the objection of Atty. Charm? Justify your answer.
(4%)

B.
Prosecutor Regan was designated to represent the State during the trial of an action to declare the
nullity of a marriage. He realized soon enough, however, that the counsels of the parties were very
competent and sincere in doing their work for their respective clients. Thus, Prosecutor Regan,
mindful of his large caseload of preliminary investigations, and believing that his attendance at the trial
was superfluous, decided not to attend the trial anymore so that he could devote more time to the
work back in his office.

Explain whether or not the decision of Prosecutor Regan to miss the trial of the action to declare the
nullity of the marriage was warranted. (4%)

IX.
Atty. Miriam rents her office space in a building owned by Winston. Eventually, Atty. Miriam became
Winston's regular legal counsel. Because of their good relationship, Atty. Miriam did not hesitate to
borrow money from Winston. Atty. Miriam issued postdated checks covering the interest of her loans.
Unfortunately, Atty. Miriam failed to pay her obligations to Winston. Her postdated checks with
Winston also bounced. Hence, he filed a criminal case for violation of the Bouncing Checks
Law against her.

In her counter-affidavit, Atty. Miriam averred that Winston was "a businessman who is engaged in the
real estate business, trading and buy and sell of deficiency taxed imported cars, shark loans and other
shady deals and has many cases pending in court."

Hurt by the allegations, Winston filed a disbarment complaint against Atty. Miriam arguing that her
allegations in the counter-affidavit constituted a breach of their confidential lawyer-client relationship.
Discuss whether or not the disclosures in Atty. Miriam's counter-affidavit constitute a breach of
fidelity towards her client. (4%)

X.
Atty. Anna Kirmet was one of Worry Bank's valued clients. The bank gave her a credit card with a
credit limit of ₱250,000.00. Because of her extravagance, Atty. Kirmet exceeded her credit limit and
refused to pay the monthly charges as they fell due.

Hence, aside from a collection case, Worry Bank filed a disbarment case against Atty. Kirmet. In her
comment on the disbarment complaint, Atty. Kirmet insisted that she did not violate the Code of
Professional Responsibility because her obligation to the bank was personal in nature and had no
relation to her being a lawyer.

Is Atty. Kirmet correct? Explain your answer briefly. (4%)

XI.
A.
Define champerty. (3%)
 B.
Atty. Andy and Atty. Valeriano were classmates in law school. As such, they developed a close friendly
relationship. They agreed that they would refer clients to each other, and whoever referred clients
would receive a commission or portion of the attorney's fees. Atty. Andy referred a client to Atty.
Valeriano, who charged the client ₱100,000.00 as initial attorney's fees. Thereafter, Atty. Valeriano
sent 15% of ₱100,000.00, or ₱15,000.00, to Atty. Andy as the latter's referral fee.

Explain if the agreement on the referral fee is ethical. (3%)

XII.
Atty. Simplicio published the following advertisement in a local newspaper: "Annulment of Marriage,
Competent Attorney, Reasonable Fees, Call 221-2345."

A Justice of the Supreme Court saw the advertisement and thereafter called the attention of his
colleagues. The Supreme Court directed the Bar Confidant investigate the matter. When directed to
explain why no disciplinary action should be taken against him for the improper advertisement, Atty.
Simplicio contended that: (a) the advertisement was not improper because his name was not
mentioned; and (b) he could not be subjected to disciplinary action because there was no complaint
filed against him.

Rule on Atty. Simplicio's contentions. (4%)

XIII.
Herbert Madasalin, a 25-year old Bar candidate, surrendered his driver's license to the security guard
at the Arlegui Gate when he entered the Malacanang compound to pray at the National Shrine of St.
Jude Thaddeus. After praying the novena to St. Jude, Herbert went to the Arlegui Gate to retrieve his
driver's license. However, he was not able to get the license because the security guard was then
elsewhere. He returned the next day only to be told that the security guard had misplaced the license.
The security guard concerned could not anymore remember where he had placed the license.

Herbert immediately requests your assistance in the preparation of an affidavit of loss. His address is
at 143 Zuzuaregui Street, Don Antonio Heights, Quezon City. As his friend, prepare Herbert's
affidavit of loss. (5%)

XIV.
Kyle Angelo was served with summons and a copy of the complaint of Ciara Jane for collection of
the amount of ₱1,000,000.00 as evidenced by a promissory note signed by Kyle Angelo. She alleged
that the debt was overdue; and that Kyle Angelo refused to pay despite repeated demands.

Kyle Angelo engaged the services of Atty. Carlos Sabit, who decided to file a motion to dismiss on
the ground of lack of cause of action and prescription. Atty. Carlos Sabit drafted the motion and sent
the draft to Kyle Angelo for his perusal. Kyle Angelo, being himself a law graduate, quickly noticed
that the draft did not contain a notice of hearing.

Draft the notice of hearing that Atty. Carlos Sabit should include in the motion to dismiss. (3%)

XV.
Believing that an onerous transfer would result in lesser taxes than a gratuitous transfer, Nenita Villo,
a widow, decided to sell her lone asset worth ₱3,000,000.00 to her daughters, Andrea, Carina and
Carissa, all of legal age, gainfully employed and still unmarried. The asset consisted of the house and
the lot registered under Transfer Certificate of Title No. 67890 of the Register of Deeds of Paranaque
City and situated at No. 3156 Bayswater Street, Metro Ville Subdivision, Paranaque City where Nenita
and her daughters presently resided.

Nenita required her daughters to make a down payment of ₱1,000,000.00, and the balance to be paid
once the title to the property was transferred to her daughters' names. All the taxes, fees, and costs
related to the sale would be for the account of Nenita, while those related to the transfer of title would
be paid by Andrea, Carina and Carissa.

Draft the contract to be executed by Nenita and her daughters in connection with the transfer of the
house and lot. Omit details other than those stated in the question. (10%)

XVI.
Determine if the following advertisements by an attorney are ethical or unethical. Explain your answer.
(a) A calling card, 2 inches x 2 inches in size, bearing the attorney's name in bold print, office, residence
and email addresses, telephone and facsimile numbers. (2%)

(b) A business card, 3 inches x 4 inches in size, indicating the aforementioned data with his 1 inch x 1
inch photograph. (2%)

(c) A pictorial press release in a broadsheet newspaper made by the attorney showing him being
congratulated by the president of a client corporation for winning a multi-million damage suit against
the company in the Supreme Court. (2%)

(d)The same press release made in a tabloid by the attorney's client. (2%)

(e) A small announcement that the attorney is giving free legal advice on November 30, 2017 published
in Balita, a tabloid in Filipino. (2%)
 MERCANTILE LAW
I.
A.
Absolute Timber Co. (ATC) has been engaged in the logging business in lsabela. To secure one of its
shipments of logs to be transported by Andok Shipping Co., ATC purchased a marine policy with an
"all risks" provision. Because of a strong typhoon then hitting Northern Luzon, the vessel sank and
the shipment of logs was totally lost. ATC filed its claim, but the insurer denied the claim on several
grounds, namely: (1) the vessel had not been seaworthy; (2) the vessel's crew had lacked sufficient
training; (3) the improper loading of the logs on only one side of the vessel had led to the tilting of
the ship to that side during the stormy voyage; and (4) the extremely bad weather had been a fortuitous
event.

ATC now seeks your legal advice to know if its claim was sustainable. What is your advice? Explain
your answer. (3%)

B.
The newly restored Ford Mustang muscle car was just released from the car restoration shop to its
owner, Seth, an avid sportsman. Given his passion for sailing, he needed to go to a round-the-world
voyage with his crew on his brand-new 180-meter yacht. Hearing about his coming voyage, Sean, his
bosom friend, asked Seth if he could borrow the car for his next roadshow. Sean, who had been in
the business of holding motor shows and promotions, proposed to display the restored car of Seth in
major cities of the country. Seth agreed and lent the Ford Mustang to Sean. Seth further expressly
allowed Sean to use the car even for his own purposes on special occasions during his absence from
the country. Seth and Sean then went together to Bayad Agad Insurance Co. (BAIC) to get separate
policies for the car in their respective names.

BAIC consults you as its lawyer on whether separate policies could be issued to Seth and Sean in
respect of the same car.

(a) What is insurable interest? (2%)

(b) Do Seth and Sean have separate insurable interests? Explain Briefly your answer(3%)

II.
A.
Morgan, a lawyer, received a lot of diving and other water sports equipment as payment of his
professional fees by Dennis, his client in a child custody case. Dennis owned a diving and water sports
dealership in Anilao, Batangas. Morgan decided to name Dennis as entrustee because he did not have
any experience in selling such specialized sports equipment. They executed a trust receipt agreement,
with Morgan as entruster and Dennis as entrustee.

Before the sports equipment could be sold, a strong typhoon hit Batangas. Anilao and other parts of
Batangas experienced power outage. Taking advantage of the total darkness, unidentified thieves
destroyed the padlocks of the establishment of Dennis, and carted off the equipment inside.
Morgan demanded that Dennis pay the value of the stolen equipment, but the latter refused on the
ground that he also had suffered from the effects of the typhoon, and insisted that the cause of the
loss was a fortuitous event or force majeure.

Is the justification of Dennis warranted? Explain your answer. (4%)

B.
Safe Warehouse, Inc. (Safe) issued on various dates negotiable warehouse receipts to Peter, Paul and
Mary covering certain goods deposited by the latter with the former. Peter, Paul and Mary then
negotiated and endorsed the warehouse receipts to Cyrus, Magnus and Charles upon payment by the
latter of valuable consideration for the warehouse receipts. Cyrus, Magnus and Charles were not aware
of, nor were they parties to any irregularity or infirmity affecting the title or the face of the warehouse
receipts.

On due dates of the warehouse receipts, Cyrus, Magnus and Charles demanded that Safe surrender
the goods to them. Safe refused because its warehouseman's claim must first be paid. Cyrus, Magnus
and Charles refused to pay, and insisted that such claim was the liability of Peter, Paul and Mary.

(a) What is a warehouseman's claim? (3%)

(b) Is Safe's refusal to surrender the goods to Cyrus, Magnus and Charles legally justified? Explain
your answer. (3%)

III.
A.
Data Realty, Inc. (DRI) was engaged in realty development. The family of Matteo owned 100% of the
capital stock of DRI. Matteo was also the President and Chairman of the Board of Directors. Other
members of Matteo's family held the major positions in DRI. Because of a nasty takeover fight with
D&E Realty Co., Inc. (D&E), another realty developer, for the control of a smaller realty company
with vast landholdings, DRI and D&E engaged in an expensive litigation that eventually led to a
money judgment being rendered in favor of D&E.

Meantime, DRI, facing inability to pay its liabilities as they fall due but still holding substantial assets,
filed a petition for voluntary rehabilitation. Trying to beat the consequences of rehabilitation
proceedings, D&E moved in the trial court for the issuance of a writ of execution. The trial court also
happened to be the rehabilitation court. The writ of execution was issued.

Serving the writ of execution, Merto, the court sheriff who had just passed his Credit Transactions
subject in law school, garnished Matteo's bank accounts, and levied his real properties, including his
house and lot in Makati.

Are the garnishment and levy of Matteo's assets lawful and proper? Explain your answer. (4%)

B.
Sid used to be the majority stockholder and President of Excellent Corporation (Excellent). When
Meridian Co., Inc. (Meridian), a local conglomerate, took over control and ownership of Excellent, it
brought along its team of officers. Sid thus became a minority stockholder and a minority member of
the Board of Directors. Excellent, being the leading beverage manufacturer in the country, became
the monopoly when Meridian's own beverage business was merged with Excellent's, thereby making
Excellent virtually the only beverage manufacturer in the country.

Left out and ignored by the management, Sid became a fiscalizer of sorts, questioning during the
Board meetings the direction being pursued by Excellent's officers.

Ultimately, Sid demanded the inspection of the books and other corporate records of Excellent. The
management refused to comply, saying that his right as a minority stockholder has been much reduced.
State under what conditions may Sid properly assert his right to inspect the books and other corporate
records of Excellent. Explain your answer. (3%)

IV.
Procopio, a Director and the CEO of Parisian Hotel Co., Inc. (Parisian), was charged along with other
company officials with several counts of estafa in connection with the non-remittance of SSS
premiums the company had collected from its employees. During the pendency of the cases, Parisian
filed a petition for rehabilitation. The court, finding the petition to be sufficient in form and substance,
issued a commencement order together with a stay or suspension order.

Citing the commencement order, Procopio and the other officers facing the criminal charges moved
to suspend the proceedings in the estafa cases.

(a) What is a commencement order, and what is the effect of its issuance? Explain your answer. (4%)

(b) Suppose you are the trial judge, will you grant the motion to suspend of Procopio, et al.? Explain
your answer. (4%)

V.
A.
Under the Nell Doctrine, so called because it was first pronounced by the Supreme Court in the 1965
ruling in Nell v. Pacific Farms, Inc. (15 SCRA 415), the general rule is that where one corporation sells
or otherwise transfers all of its assets to another corporation, the latter is not liable for the debts and
liabilities of the transferor.

State the exceptions to the Nell Doctrine. (4%)

B.
Santorini Corporation (Santorini) was in dire straits. In order to firm up its financial standing, it agreed
to entertain the merger and takeover offer of Proficient Corporation (Proficient), the leading company
in their line of business. Erica, the major stockholder of Santorini, strongly opposed the merger and
takeover. The matter of the merger and takeover by Proficient was included in the agenda of the next
meeting of Santorini's Board of Directors. However, owing to Erica's serious illness that required her
to seek urgent medical treatment and care in Singapore, she failed to attend the meeting and was
consequently unable to cast her vote. The Board of Directors approved the merger and takeover. At
the time of the meeting, Santorini had been in the red for a number of years owing to its recurring
business losses and reverses.

Erica seeks your legal advice regarding her right as a stockholder opposed to the corporate action.
Explain your answer. (4%)
 C.
Samito is the President and a Director of Lucky Bank (Lucky}, a commercial bank holding its main
office in Makati. His brother, Othello, owned a big fishing business based in Malabon. Othello applied
for a loan of PSO Million with Lucky. Othello followed the ordinary banking procedures in all the
stages of the processing of his application. When required, he made the necessary arrangements to
guarantee the loan. Thus, in addition to the real estate mortgage, Othello executed a joint and solidary
suretyship, issued postdated checks, and submitted all other requirements prescribed by Lucky.

When the loan application was about to be approved and the proceeds released, BG Company, a keen
competitor of Othello in the fishing industry, wrote to the Board of Directors and the management
of Lucky questioning the loan on the ground of conflict of interest due to Samito and Othello being
brothers, citing the legal restriction against bank exposure of directors, officers, stockholders or their
related interests (DOSRI).

(a) What are the three restrictions imposed by law on DOSRI transactions? (4%)

(b) Is BG Company's opposition based on conflict of interest and violation of the restrictions on
DOSRI transactions legally and factually correct? Explain your answer. (4%)

VI.
A.
Hortencio owned a modest grocery business in Laguna. Because of the economic downturn, he
incurred huge financial liabilities. He remained afloat only because of the properties inherited from
his parents who had both come from landed families in Laguna. His main creditor was Puresilver
Company (Puresilver), the principal supplier of the merchandise sold in his store. To secure his credit
with Puresilver, he executed a real estate mortgage with a dragnet clause involving his family's assets
worth several millions of pesos.

Nonetheless, Hortencio, while generally in the black, now faces a situation where he is unable to pay
his liabilities as they fall due in the ordinary course of business. What will you advise him to do to
resolve his dire financial condition? Explain your answer. (5%)

B.
Wyatt, an internet entrepreneur, engaged in a sideline business of creating computer programs for
selected clients on a per project basis and for servicing basic computer problems of his friends and
family members. His main job was being an IT consultant at Futurex Co., a local computer company.
Because of his ill-advised investments in the stock market and the fraud perpetrated against him by
his trusted confidante, Wyatt was already drowning in debt, that is, he had far more liabilities than his
entire assets.

What legal recourse remained available to Wyatt? Explain your answer. (5%)

VII.
A.
Virtucio was a composer of llocano songs who has been quite popular in the llocos Region. Pascuala
is a professor of music in a local university with special focus on indigenous music. When she heard
the musical works of Virtucio, she purchased a CD of his works. She copied the CD and sent the
second copy to her Music instructions for the class to listen to the CD and analyze the works of
Virtucio.

Did Pascuala thereby infringe Virtucio's copyright? Explain your answer. (4%)

B.
Super Biology Corporation (Super Biology) invented and patented a miracle medicine for the cure of
AIDS. Being the sole manufacturer, Super Biology sold the medicine at an exorbitant price. Because
of the sudden prevalence of AIDS cases in Metro Manila and other urban areas, the Department of
Health (DOH) asked Super Biology for a license to produce and sell the AIDS medicine to the public
at a substantially lower price. Super Biology, citing the huge costs and expenses incurred for research
and development, refused.

Assuming you are asked your opinion as the legal consultant of the DOH, discuss how you will resolve
the matter. (4%)

VIII.
A.
Flora, a frequent traveller, found a purse concealed between the cushions of a large sofa inside the
VIP lounge in NAIA while she was waiting for her flight to be called. Inside the purse was a very
valuable diamond-studded necklace. She decided not to turn over the purse to the airport
management, and instead to keep it. On her return from her travels, she had a dependable jeweller
appraise the necklace, and the latter told her that the necklace was easily worth at least ₱5,000,000.00
in the open market. To test the appraisal, she pawned the necklace for ₱2,000,000.00. She then
deposited the entire amount in her checking account with Metro Bank. Promptly, Metro Bank
reported the transaction to the Anti-Money Laundering Council (AMLC).

Given that her appropriation of the necklace was theft, may Flora be successfully prosecuted for
money laundering? Explain briefly your answer. (4%)

B.
Prosperous Bank is a domestic bank with head office in Makati. It handles the banking requirements
of thousands of clients.

The AMLC initiated a discreet investigation of the financial transactions of Lorenzo, a suspected drug
trafficker based in Naga City. The intelligence group of the AMLC, in coordination with the
counterpart group from the PDEA and the NBI, gathered ample evidence establishing Lorenzo's
unlawful drug activities. The AMLC had probable cause that his deposits and investments in various
banks, including Prosperous Bank, were related to money laundering.

Accordingly, the AMLC now transmits to Prosperous Bank a formal demand to allow its agents to
examine the banking transactions of Lorenzo, but Prosperous Bank refuses the demand.

Is Prosperous Bank's refusal justified? Explain your answer. (4%)

IX.
A.
Alfred issued a check for ₱1,000.00 to Benjamin, his friend, as payment for an electronic gadget. The
check was drawn against Alfred's account with Good Bank. Benjamin then indorsed the check
specially in favor of Cesar. However, Cesar misplaced the check. Dexter, a dormmate of Cesar, found
the check, altered its amount to ₱91,000.00, and forged Cesar's indorsement by way of a blank
indorsement in favor of Felix, a known jeweler. Felix then caused the deposit of the check in his
account with Solar Bank. As collecting bank, Solar Bank stamped "all previous indorsements
guaranteed" on the check. Seeing such stamp of the collecting bank, Good Bank paid the amount of
₱91,000.00 on the check.

May Good Bank claim reimbursement from Alfred? Explain your answer. (4%)

B.
In 2006, Donald, an American temporarily residing in Cebu City, issued to Rhodora a check for
$50,000.00 drawn against Wells Fargo Bank with offices in San Francisco, California. Rhodora
negotiated the check and delivered it to Yaasmin, a Filipina socialite who frequently travelled locally
and internationally. Because of her frequent travels, Yaasmin misplaced the check. It was only 11 years
later on, in 2017, when she found the check inside a diary kept in her vault in her Hollywood, California
house.

Discuss and explain the rights of Yaasmin on the check. (4%)

X.
Wisconsin Transportation Co., Inc. (WTC) owned and operated an inter-island de luxe bus service
plying the Manila-Batangas-Mindoro route. Three friends, namely: Aurelio, Jerome and Florencio rode
on the same WTC bus from Manila bound for Mindoro. Aurelio purchased a ticket for himself.
Jerome, being a boyhood friend of the bus driver, was allowed a free ride by agreeing to sit during the
trip on a stool placed in the aisle. Florencio, already penniless after spending all of his money on beer
the night before, just stole a ride in the bus by hiding in the on-board toilet of the bus.

During the trip, the bus collided with another bus coming from the opposite direction. The three
friends all suffered serious physical injuries.

What are WTC's liabilities, if any, in favor of Aurelio, Jerome and Florencio? Explain your answer.
(4%)

XI.
TRUE or FALSE - Explain briefly your answer.

(a) A conviction under the Trust Receipts Law shall bar a prosecution for estafa under the Revised
Penal Code. (2%)

(b) The term capital in relation to public utilities under Sec. 11, Art. XII of the 1987 Constitution
refers to the total outstanding capital stock comprising both common and non-voting preferred
shares. (2%)

(c) Forgery is a real defense but may only be raised against a holder not in due course. (2%)
(d) News reports are not copyrightable. (2%)

(e) The law on life insurance prohibits double insurance. (2%)

XII.
Onassis Shipping, Inc. (Onassis) operated passenger vessels and cargo trucks, and offered its services
to the general public. In line with its vision and mission to protect the environment, Go-Green Asia
(Go-Green), an NGO affiliated with Greenpeace, entered into a contract with Onassis whereby Go-
Green would operate with its own crew the MN Dolphin, an ocean-going passenger vessel of Onassis.
While on its way to Palawan carrying Go-Green's invited guests who were international and local
observers desirous of checking certain environmental concerns in the area, the MN Dolphin
encountered high waves and strong winds caused by a typhoon in the West Philippine Sea. The rough
seas led to serious physical injuries to some of the guests.

Discuss the liabilities of Onassis and Go-Green to the passengers of the M/V Dolphin. Explain briefly
your answer. (3%)
 CIVIL LAW
I.
State whether the following marital unions are valid, void, or voidable, and give the corresponding
justifications for your answer:

(a) Ador and Becky's marriage wherein Ador was afflicted with AIDS prior to the marriage. (2%)

(b) Carlos' marriage to Dina which took place after Dina had poisoned her previous husband Edu in
order to free herself from any impediment in order to live with Carlos. (2%)

(c) Eli and Fely's marriage solemnized seven years after the disappearance of Chona, Eli's previous
spouse, after the plane she had boarded crashed in the West Philippine Sea. (2%)

(d) David who married Lina immediately the day after obtaining a judicial decree annulling his prior
marriage to Elisa. (2%)

(e) Marriage of Zoren and Carmina who did not secure a marriage license prior to their wedding, but
lived together as husband and wife for 10 years without any legal impediment to marry. (2%)

II.
In 1960, Rigor and Mike occupied two separate but adjacent tracts of land in Mindoro. Rigor's tract
was classified as timber land while Mike's was classified as agricultural land. Each of them fenced and
cultivated his own tract continuously for 30 years. In 1991, the Government declared the land
occupied by Mike as alienable and disposable, and the one cultivated by Rigor as no longer intended
for public use or public service.

Rigor and Mike now come to you today for legal advice in asserting their right of ownership of their
respective lands based on their long possession and occupation since 1960.

(a) What are the legal consequences of the 1991 declarations of the Government respecting the lands?
Explain your answer. (2%)

(b) Given that, according to Section 48(b) of Commonwealth Act No. 141, in relation to Section 14(1)
of Presidential Decree No. 1529, the open, continuous, exclusive and notorious possession and
occupation of alienable and disposable lands of the public domain as basis for judicial confirmation
of imperfect title must be from June 12, 1945, or earlier, may Mike nonetheless validly base his
assertion of the right of ownership on prescription under the Civil Code? Explain your answer. (4%)

(c) Does Rigor have legal basis for his application for judicial confirmation of imperfect title based on
prescription as defined by the Civil Code given that, like Mike, his open, continuous, exclusive and
notorious possession and occupation was not since June 12, 1945, or earlier, and his tract of land was
timber land until the declaration in 1991? Explain your answer. (4%)

III.
Josef owns a piece of land in Pampanga. The National Housing Authority (NHA) sought to
expropriate the property for its socialized housing project. The trial court fixed the just compensation
for the property at P50 million. The NHA immediately deposited the same at the authorized
depository bank and filed a motion for the issuance of a writ of possession with the trial court.
Unfortunately, there was delay in the resolution of the motion. Meanwhile, the amount deposited
earned interest.

When Josef sought the release of the amount deposited, NHA argued that Josef should only be
entitled to P50 million.

Who owns the interest earned? (3%)

IV.
(a) Distinguish antichresis from usufruct? (3%)

(b) Distinguish commodatum from mutuum. (3%)

V.
Jacob has owned a farm land in Ramos, Tarlac. In 2012, Liz surreptitiously entered and cultivated the
property. In 2014, Jacob discovered Liz's presence in and cultivation of the property. Due to his being
busy attending to his business in Cebu, he tolerated Liz's cultivation of the property. Subsequently, in
December 2016, Jacob wanted to regain possession of the property; hence, he sent a letter to Liz
demanding that she vacate the property. Liz did not vacate despite the demand.

Jacob comes to enlist your legal assistance to bring an action against Liz to recover the possession of
the property.

What remedies are available to Jacob to recover possession of his property under the circumstances?
Explain your answer. (4%)

VI.
Tyler owns a lot that is enclosed by the lots of Riley to the North and East, of Dylan to the South,
and of Reece to the West. The current route to the public highway is a kilometer's walk through the
northern lot of Riley, but the route is a rough road that gets muddy during the rainy season, and is
inconvenient because it is only 2.5 meters wide. Tyler's nearest access to the public highway would be
through the southern lot of Dylan.

May Dylan be legally required to afford to Tyler a right of way through his property? Explain your
answer. (4%)

VII.
Alice agreed to sell a parcel of land with an area of 500 square meters registered in her name and
covered by TCT No. 12345 in favor of Bernadette for the amount of ₱900,000.00. Their agreement
dated October 15, 2015 reads as follows:

I, Bernadette, agree to buy the lot owned by Alice covered by TCT No. 12345 for the amount of ₱900,000.00 subject
to the following schedule of payment:
Upon signing of agreement – ₱100,000.00
November 15, 2015 – ₱200,000.00
December 15, 2015 - ₱200,000.00
January 15, 2016 - ₱200,000.00
February 15, 2016 - ₱200,000.00
Title to the property shall be transferred upon full payment of ₱900,000.00 on or before February 15, 2016.

After making the initial payment of ₱100,000.00 on October 15, 2015, and the second instalment of
₱200,000.00 on November 15, 2015, Bernadette defaulted despite repeated demands from Alice.

In December 2016, Bernadette offered to pay her balance but Alice refused and told her that the land
was no longer for sale. Due to the refusal, Bernadette caused the annotation of her adverse claim upon
TCT No. 12345 on December 19, 2016. Later on, Bernadette discovered that Alice had sold the
property to Chona on February 5, 2016, and that TCT No. 12345 had been cancelled and another one
issued (TCT No. 67891) in favor of Chona as the new owner.

Bernadette sued Alice and Chona for specific performance, annulment of sale and cancellation of TCT
No. 67891. Bernadette insisted that she had entered into a contract of sale with Alice; and that because
Alice had engaged in double sale, TCT No. 67891 should be cancelled and another title be issued in
Bernadette's favor.

(a) Did Alice and Bernadette enter into a contract of sale of the lot covered by TCT No. 12345?
Explain your answer. (4%)

(b)Did Alice engage in double sale of the property? Explain your answer. (4%)

VIII.
Pedro had worked for 15 years in Saudi Arabia when he finally decided to engage in farming in his
home province where his 10- hectare farmland valued at ₱2,000,000.00 was located. He had already
₱3,000,000.00 savings from his long stint in Saudi Arabia.

Eagerly awaiting Pedro's arrival at the NAIA were his aging parents Modesto and Jacinta, his common-
law spouse Veneranda, their three children, and Alex, his child by Carol, his departed legal wife. Sadly
for all of them, Pedro suffered a stroke because of his overexcitement just as the plane was about to
land, and died without seeing any of them.

The farmland and the savings were all the properties he left.

(a) State who are Pedro's legal heirs, and the shares of each legal heir to the estate? Explain your
answer. (4%)

(b) Assuming that Pedro's will is discovered soon after his funeral. In the will, he disposed of half of
his estate in favor of Veneranda, and the other half in favor of his children and his parents in equal
shares. Assuming also that the will is admitted to probate by the proper court. Are the testamentary
dispositions valid and effective under the law on succession? Explain your answer. (4%)

IX.
Danny and Elsa were married in 2002. In 2012, Elsa left the conjugal home and her two minor children
with Danny to live with her paramour. In 2015, Danny sold without Elsa's consent a parcel of land
registered in his name that he had purchased prior to the marriage. Danny used the proceeds of the
sale to pay for his children's tuition fees.

Is the sale valid, void or voidable? Explain your answer. (3%)

X.
Briefly explain whether the following contracts are valid, rescissible, unenforceable, or void:
(a) A contract of sale between Lana and Andy wherein 16-year old Lana agreed to sell her grand piano
for ₱5,000.-00. (2%)

(b) A contract of lease of the Philippine Sea entered by and between Mitoy and Elsa. (2%)

(c) A barter of toys executed by 12-year old Clarence and 10-year old Czar (2%)

(d) A sale entered by Barri and Garri, both minors, which their parents later ratified. (2%)

(e) Jenny's sale of her car to Celestine in order to evade attachment by Jenny's creditors. (2%)

XI.
Zeny and Nolan were best friends for a long time already. Zeny borrowed ₱10,000.00 from Nolan,
evidenced by a promissory note whereby Zeny promised to pay the loan "once his means
permit." Two months later, they had a quarrel that broke their long-standing friendship.

Nolan seeks your advice on how to collect from Zeny despite the tenor of the promissory note. What
will your advice be? Explain your answer. (3%)

XII.
Krystal owns a parcel of land covered by TCT No. 12345 in Angeles City. Due to severe financial
constraints, Krystal was forced to sell the property to RBP Corporation, a foreign corporation based
in South Korea. Subsequently, RBP Corporation sold the property to Gloria, one of its most valued
clients.

Wanting her property back, Krystal, learning of the transfer of the property from RBP Corporation
to Gloria, sued both of them in the Regional Trial Court (RTC) for annulment of sale and for
reconveyance. She alleged that the sale by RBP Corporation to Gloria was void because RBP
Corporation was a foreign corporation prohibited by the Constitution from acquiring and owning
lands in the Philippines.

Will Krystal's suit for annulment of sale and reconveyance prosper? Explain your answer. (4%)

XIII.
TRUE or FALSE - Explain your answers.
(a) All rights are considered as property. (2%)

(b) A lessee cannot bring a case for quieting of title respecting the property that he leases. (2%)

(c) Only the city or municipal mayor can file a civil action to abate a public nuisance. (2%)
(d) Possession of a movable property is lost when the location of the said movable is unknown to the
owner. (2%)

(e) Continuous non-apparent easements can be acquired either through title or by prescription. (2%)

XIV.
Plutarco owned land that borders on a river. After several years, the action of the water of the river
caused the deposit of soil, and increased the area of Plutarco's property by 200 square meters.
(a) If Plutarco wants to own the increase in area, what will be his legal basis for doing so? Explain your
answer. (2%)

(b) On the other hand, if the river dries up, may Plutarco validly claim a right of ownership of the
dried-up river bed? Explain your answer. (2%)

XV.
Kevin signed a loan agreement with ABC Bank. To secure payment, Kevin requested his girlfriend
Rosella to execute a document entitled "Continuing Guaranty Agreement" whereby she expressly
agreed to be solidarily liable for the obligation of Kevin.

Can ABC Bank proceed directly against Rosella upon Kevin's default even without proceeding against
Kevin first? Explain your answer. (3%)

XVI.
Jovencio operated a school bus to ferry his two sons and five of their schoolmates from their houses
to their school, and back. The parents of the five schoolmates paid for the service. One morning,
Porfirio, the driver, took a short cut on the way to school because he was running late, and drove
across an unmanned railway crossing. At the time, Porfirio was wearing earphones because he loved
to hear loud music while driving. As he crossed the railway tracks, a speeding PNR train loudly blared
its horn to warn Porfirio, but the latter did not hear the horn because of the loud music. The train
inevitably rammed into the school bus. The strong impact of the collision between the school bus and
the train resulted in the instant death of one of the classmates of Jovencio's younger son.

The parents of the fatality sued Jovencio for damages based on culpa contractual alleging that Jovencio
was a common carrier; Porfirio for being negligent; and the PNR for damages based on culpa
aquiliana.

Jovencio denied being a common carrier. He insisted that he had exercised the diligence of a good
father of a family in supervising Porfirio, claiming that the latter had had no history of negligence or
recklessness before the fatal accident.

(a) Did his operation of the school bus service for a limited clientele render Jovencio a common
carrier? Explain your answer. (3%)

(b) In accordance with your answer to the preceding question, state the degree of diligence to be
observed by Jovencio, and the consequences thereof. Explain your answer. (3%)

(c) Assuming that the fatality was a minor of only 15 years of age who had no earning capacity at the
time of his death because he was still a student in high school, and the trial court is minded to award
indemnity, what may possibly be the legal and factual justifications for the award of loss of earning
capacity? Explain your answer. (4%)
 TAXATION LAW
I.
SMZ, Inc. is a VAT-registered enterprise engaged in the general construction business. HP
International contracts the services of SMZ, Inc. to construct HP lnternational's factory building
located in the Laguna Techno Park, a special economic zone. HP International is registered with the
Philippine Economic Zone Authority (PEZA) as an ecozone export enterprise, and, as such, enjoys
income tax holiday pursuant to the Special Economic Zone Act of 1995.

SMZ, Inc. files an application with the Bureau of Internal Revenue (BIR) for the VAT zero-rating of
its sale of services to HP International. However, the BIR denies SMZ, lnc.'s application on the ground
that HP International already enjoys income tax holiday.

Is the BIR correct in denying SMZ, lnc.'s application? Explain your answer. (6%)

II.
Wreck Corporation is a domestic corporation engaged in the business of importing, refining and
selling petroleum products. During the period from September 1, 2014 to December 31, 2014, Wreck
Corporation imported 225 million liters of Jet A-1 aviation fuel and paid the excise taxes thereon.
Seventy-five percent (75%) of the total volume of aviation fuel imported were actually sold to
international carriers of Philippine and foreign registries for their use or consumption outside of the
Philippines in the period from November 1, 2014 to December 31, 2014. Wreck Corporation did not
pass on to the international carriers the excise taxes it paid on the importation of petroleum products.
On June 25, 2015, Wreck Corporation filed an administrative claim for refund or issuance of tax credit
certificate amounting to the excise taxes it had paid on the importation of 225 million liters of Jet A-
1 aviation fuel.

If you were the Commissioner of Internal Revenue, will you grant Wreck Corporation's administrative
claim for refund or issuance of tax credit certificate? Explain your answer. (6%)

III.
Vanderful, lnc.'s income tax return for taxable year 2015 showed an overpayment due to excess
creditable withholding taxes in the amount of ₱750,000.00. The company opted to carry over the
excess income tax credits as tax credit against its quarterly income tax liabilities for the next succeeding
years. For taxable year 2016, the company's income tax return showed an overpayment due to excess
creditable withholding taxes in the amount of ₱1,100,000.00, which included the carry-over from year
2015 in the amount of ₱750,000.00 because its operations resulted in a net loss; hence, there was no
application for any tax liability. This time, the company opted and marked the box "To be refunded' in
respect of the total amount of ₱1,100,000.00.

Vanderful, Inc. now files in the BIR a claim for refund of unutilized overpayments of ₱1,100,00.00.
Is the claim meritorious? (4%)

IV.
On the basis of a warrant of seizure and detention issued by the Collector of Customs for the purpose
of enforcing the Tariff and Customs Code, assorted brands of liquor and cigarettes said to have been
illegally imported into the Philippines were seized from a store operating in a Freeport zone. The store
owner moved for the quashal of the warrant on the ground that the Collector of Customs had no
jurisdiction to enforce it within the Freeport zone.

Should the motion to quash be granted? (3%)

V.
On March 30, 2016, XL Co. filed an administrative claim for refund of unutilized input VAT for
taxable year 2014, together with supporting documents. XL Co. claimed that its sale of generated
power and delivery of electric capacity and energy was VAT zero-rated. Due to the inaction of the
Commissioner of Internal Revenue (CIR), XL Co. filed with the Court of Tax Appeals (CTA) the
following judicial claims for refund:
Period Covered Date Filed

1st Quarter of 2014 March 31, 2016

2nd Quarter of 2014 June 30, 2016

3rd and 4th Quarter of 2014 August 12, 2016

Is XL Co.'s claim for VAT refund timely filed? Explain your answer. (5%)

VI.
Heeding the pronouncement of the President that the worsening traffic condition in the metropolis
was a sign of economic progress, the Congress enacted Republic Act No. 10701 (RA 10701), also
known as An Act Imposing a Transport Tax on the Purchase of Private Vehicles.

Under RA 10701, buyers of private vehicles are required to pay a transport tax equivalent to 5°/o of
the total purchase price per vehicle purchased. RA 10701 provides that the Land Transportation
Office (LTO) shall not accept for registration any new vehicles without proof of payment of the 5%
transport tax. RA 10701 further provides that existing owners of private vehicles shall be required to
pay a tax equivalent to 5% of the current fair market value of every vehicle registered with the LTO.
However, RA 10701 exempts owners of public utility vehicles and the Government from the coverage
of the 5% transport tax.

A group of private vehicle owners sue on the ground that the law is unconstitutional for contravening
the Equal Protection Clause of the Constitution.

Rule on the constitutionality and validity of RA 10701. (5%)

VII.
Calvin Dela Pisa was a Permits and Licensing Officer (rank-and-file) of Sta. Portia Realty Corporation
(SPRC). He invited the Regional Director of the Housing and Land Use Regulatory Board (HLURB)
to lunch at the Sulo Hotel in Quezon City to discuss the approval of SPRC's application for a
development permit in connection with its subdivision development project in Pasig City. At breakfast
the following day, Calvin met a prospective client interested to enter into a joint venture with SPRC
for the construction of a residential condominium unit in Cainta, Rizal.
Calvin incurred expenses for the lunch and breakfast meetings he had with the Regional Director of
HLURB and the prospective client, respectively. The expenses were duly supported by official receipts
issued in his name. At month's end, he requested the reimbursement of his expenses, and SPRC
granted his request.

(a) Can SPRC claim an allowable deduction for the expenses incurred by Calvin? Explain your answer.
(2.5%)

(b) Is the reimbursement received by Calvin from SPRC subject to tax? Explain your answer. (2.5%)

VIII.
On April 30, 2015, Daryl resigned as the production manager of 52nd Avenue, a television studio
owned by SSS Entertainment Corporation. 52nd Avenue issued to her a Certificate of Withholding
Tax on Compensation (BIR Form No. 2316), which showed that the tax withheld from her
compensation was equal to her income tax due for the period from January 2015 to April 30, 2015.

A month after her resignation, Daryl put up her own studio and started producing short films. She
was able to earn a meager income from her short films but did not keep record of her production
expenses.

Is Daryl qualified for substituted filing for taxable year 2015? Explain your answer. (3%)

IX.
Upon his retirement, Alfredo transferred his savings derived from his salary as a marketing assistant
to a time deposit with AAB Bank. The bank regularly deducted 20% final withholding tax on the
interest income from the time deposit.

Alfredo contends that the 20% final tax on the interest income constituted double taxation because
his salary had been already subjected to withholding tax.

Is Alfredo's contention correct? Explain your answer. (3%)

X.
On January 27, 2017, Ramon, the comptroller of Vantage Point, Inc., executed a document
entitled Waiver of the Statute of Limitations in connection with the BIR's investigation of the tax
liabilities of the company for the year 2012. However, the Board of Directors of Vantage Point, Inc.
did not adopt a board resolution authorizing Ramon to execute the waiver.

On October 14, 2017, Vantage Point, Inc. received a preliminary assessment notice from the BIR
indicating its deficiency withholding taxes for the year 2012. Vantage Point, Inc. filed its protest. On
October 30, 2017, the BIR issued a formal letter of demand and final assessment notice. Vantage
Point, Inc. again filed a protest. The Commissioner of Internal Revenue denied the protests and
directed the collection of the assessed deficiency taxes.

Accordingly, Vantage Point, Inc. filed a petition for review in the CTA to seek the cancellation and
withdrawal of the assessment on the ground of prescription.
(a) What constitutes a valid waiver of the statute of limitations for the assessment and collection of
taxes? Explain your answer. (3%)

(b) Has the right of the Government to assess and collect deficiency taxes from Vantage Point, Inc.
for the year 2012 prescribed? Explain your answer. (3%)

XI.
The Board of Directors of Sumo Corporation, a company primarily engaged in the business of
marketing and distributing pest control products, approved the partial cessation of its commercial
operations, resulting in the separation of 32 regular employees. Only half of the affected employees
were notified of the board resolution.

Rule on the taxability of the separation pay and indemnity that will be received by the affected
employees as the result of their separation from service. Explain your answer. (3%)

XII.
On September 17, 2015, Data Realty, Inc., a real-estate corporation duly organized and existing under
Philippine law, sold to Jenny Vera a condominium unit at Freedom Residences in Malabon City with
an area of 32.31 square meters for a contract price of ₱4,213,000.00. The condominium unit had a
zonal value amounting to ₱2,877,000.00 and fair market value amounting to ₱550,000.00.
(a) Is the transaction subject to value-added tax and documentary stamp tax? Explain your answer.
(3%)

(b) Would your answer be the same if the property was sold by a bank in a foreclosure sale? Explain
your answer. (3%)

XIII.
BATAS Law is a general professional partnership operating in the City of Valenzuela. It regularly pays
value-added tax on its services. All its lawyers have individually paid the required professional tax for
the year 2017. However, as a condition for the renewal of its business permit for the year 2017, the
City Treasurer of Valenzuela assessed BAT AS Law for the payment of percentage business tax on its
gross receipts for the year 2016 in accordance with the Revenue Tax Code of Valenzuela.

Is BATAS Law liable to pay the assessed percentage business tax? Explain your answer. (3%)

XIV.
Globesmart Services, Inc. received a final assessment notice with formal letter of demand from the
BIR for deficiency income tax, value-added tax and withholding tax for the taxable year 2016
amounting to P48 million. Globesmart Services, Inc. filed a protest against the assessment, but the
Commissioner of Internal Revenue denied the protest. Hence, Globesmart Services, Inc. filed a
petition for review in the CTA with an urgent motion to suspend the collection of tax.

After hearing, the CTA Division issued a resolution granting the motion to suspend but required
Globesmart Services, Inc. to post a surety bond equivalent to the deficiency assessment within 15 days
from notice of the resolution. Globesmart Services, Inc. moved for the partial reconsideration of the
resolution and for the reduction of the bond to an amount it could obtain. The CTA Division issued
another resolution reducing the amount of the surety bond to Jl24 million. The latter amount was still
more than the net worth of Globesmart Services, Inc. as reported in its audited financial statements.
(a) May the collection of taxes be suspended? Explain your answer. (3%)

(b) Is the CTA Division justified in requiring Globesmart Services, Inc. to post a surety bond as a
condition for the suspension of the deficiency tax collection? Explain your answer. (3%)

XV.
Casimira died on June 19, 2017 after three weeks of confinement due to an unsuccessful liver
transplant. For her confinement, she had incurred substantial medical expenses that she financed
through personal loans secured by mortgages on her real properties. Her heirs are still in the process
of making an inventory of her assets that can be used to pay the estate taxes, if any, which are due on
December 19, 2017.

(a) Are the medical expenses, personal loans and mortgages incurred by Casimira deductible from her
gross estate? Explain your answer.(5%)

(b) May the heirs of Casimira file the estate tax return and pay the corresponding estate tax beyond
December 19, 2017 without incurring interest and surcharge? Explain your answer.(3%)

XVI.
The BIR assessed the Babuyan Water District (BWD) with deficiency income taxes amounting to P8.5
million, inclusive of interest and surcharge. The BWD disputed the assessment, and argued that it was
a wholly-owned government entity performing essential government functions. However, the BIR
denied the protest.

The BWD filed a petition for arbitration in the Office of the Secretary of Justice pursuant to Sections
66 to 71, Chapter 14, Book IV of the Administrative Code of 1987 to assail the denial of its protest,
and to seek the proper interpretation of Section 32(8)(7)(b) of the Tax Code that excluded from gross
income the income derived by the Government or its political subdivisions. The Secretary of Justice
rendered a decision declaring the BWD exempt from the payment of income tax.

The Commissioner of Internal Revenue appealed to the CTA on the sole ground that the Secretary of
Justice had no jurisdiction to review the assessment of the BIR.

Is the appeal meritorious? Explain your answer. (4%)

XVII.
San Juan University is a non-stock, non-profit educational institution. It owns a piece of land in
Caloocan City on which its three 2-storey school buildings stood. Two of the buildings are devoted
to classrooms, laboratories, a canteen, a bookstore and administrative offices. The third building is
reserved as dormitory for student athletes who are granted scholarships for a given academic year.
In 2017, San Juan University earned income from tuition fees and from leasing a portion of its
premises to various concessionaires of food, books, and school supplies.
(a) Can the City Treasurer of Caloocan City collect real property taxes on the land and building of San
Juan University? Explain your answer. (5%)
(b) Is the income earned by San Juan University for the year 2017 subject to income tax? Explain your
answer. (5%)
 XVIII.
(a) Differentiate outright smuggling from technical smuggling. (3%)

(b)Distinguish compromise from abatement of taxes. (3%)

XIX.
CMI School, Inc., a non-stock, non-profit corporation, donated its three parcels of idle land situated
in the Municipality of Cuyapo, Nueva Ecija to SLC University, another non-stock, non-profit
corporation, in recognition of the latter's contribution to and participation in the spiritual and
educational development of the former.
(a) Is CMI School, Inc. liable for the payment of donor's tax? Explain your answer. (2.5%)

(b) If SLC University later sells the three parcels of idle land to Puregold Supermarket, Inc., a stock
corporation, will SLC University be liable for capital gains tax? Explain your answer. (3%)

(c) If SLC University donates the three parcels of idle land in favor of the Municipality of Cuyapo,
Nueva Ecija, will SLC University be liable for donor's tax? Explain your answer. (2.5%)
 REMEDIAL LAW
I.
What trial court outside Metro Manila has exclusive original jurisdiction over the following cases?
Explain briefly your answers.

(a) An action filed on November 13, 2017 to recover the possession of an apartment unit being
occupied by the defendant by mere tolerance of the plaintiff, after the former ignored the last demand
to vacate that was duly served upon and received by him on July 6, 2016. (2.5%)

(b) A complaint in which the principal relief sought is the enforcement of a seller's contractual right
to repurchase a lot with an assessed value of ₱15,000.00. (2.5%)

II.
Santa filed against Era in the RTC of Quezon City an action for specific performance praying for the
delivery of a parcel of land subject of their contract of sale. Unknown to the parties, the case was
inadvertently raffled to an RTC designated as a special commercial court. Later, the RTC rendered
judgment adverse to Era, who, upon realizing that the trial court was not a regular RTC, approaches
you and wants you to file a petition to have the judgment annulled for lack of jurisdiction.

What advice would you give to Era? Explain your answer. (4%)

III.
Answer the following briefly:
(a) What elements should concur for circumstantial evidence to be sufficient for conviction? (2%)

(b) When is bail a matter of judicial discretion? (2%)

(c) Give at least two instances when a peace officer or a private person may make a valid warrantless
arrest. (2%)

(d) What is a tender of excluded evidence? (2%)

IV.
Give brief answers to the following:
(a) What is the doctrine of hierarchy of courts? (2%)

(b) What is the Harmless Error Rule in relation to appeals? (2%)

(c) When does a public prosecutor conduct an inquest instead of a preliminary investigation? (2%)

V.
After working for 25 years in the Middle East, Evan returned to the Philippines to retire in Manila,
the place of his birth and childhood. Ten years before his retirement, he bought for cash in his name
a house and lot in Malate, Manila. Six months after his return, he learned that his house and lot were
the subject of foreclosure proceedings commenced by ABC Bank on the basis of a promissory note
and a deed of real estate mortgage he had allegedly executed in favor of ABC Bank five years earlier.
Knowing that he was not in the country at the time the promissory note and deed of mortgage were
supposedly executed, Evan forthwith initiated a complaint in the RTC of Manila praying that the
subject documents be declared null and void.

ABC Bank filed a motion to dismiss Evan's complaint on the ground of improper venue on the basis
of a stipulation in both documents designating Quezon City as the exclusive venue in the event of
litigation between the parties arising out of the loan and mortgage.

Should the motion to dismiss of ABC Bank be granted? Explain your answer. (5%)

VI.
Hanna, a resident of Manila, filed a complaint for the partition of a large tract of land located in
Oriental Mindoro. She impleaded her two brothers John and Adrian as defendants but did not implead
Leica and Agatha, her two sisters who were permanent residents of Australia.

Arguing that there could be no final determination of the case without impleading all indispensable
parties, John and Adrian moved to dismiss the complaint.

Does the trial court have a reason to deny the motion? Explain your answer. (4%)

VII.
Elise obtained a loan of ₱3 Million from Merchant Bank. Aside from executing a promissory note in
favor of Merchant Bank, she executed a deed of real estate mortgage over her house and lot as security
for her obligation. The loan fell due but remained unpaid; hence, Merchant Bank filed an action against
Elise to foreclose the real estate mortgage. A month after, and while the foreclosure suit was pending,
Merchant Bank also filed an action to recover the principal sum of ₱3 Million against Elise based on
the same promissory note previously executed by the latter.

In opposing the motion of Elise to dismiss the second action on the ground of splitting of a single
cause of action, Merchant Bank argued that the ground relied upon by Elise was devoid of any legal
basis considering that the two actions were based on separate contracts, namely, the contract of loan
evidenced by the promissory note, and the deed of real estate mortgage.

Is there a splitting of a single cause of action? Explain your answer. (4%)

VIII.
A.
Laura was the lessee of an apartment unit owned by Louie. When the lease expired, Laura refused to
vacate the property. Her refusal prompted Louie to file an action for unlawful detainer against Laura
who failed to answer the complaint within the reglementary period.

Louie then filed a motion to declare Laura in default. Should the motion be granted? Explain your
answer. (3%)

B.
Agatha filed a complaint against Yana in the RTC in Makati City to collect ₱350,000.00, an amount
representing the unpaid balance on the price of the car Yana had bought from Agatha. Realizing a
jurisdictional error in filing the complaint in the RTC, Agatha filed a notice of dismissal before she
was served with the answer of Yana. The RTC issued an order confirming the dismissal.

Three months later, Agatha filed another complaint against Yana based on the same cause of action
this time in the MeTC of Makati City. However, for reasons personal to her, Agatha decided to have
the complaint dismissed without prejudice by filing a notice of dismissal prior to the service of the
answer of Yana. Hence, the case was dismissed by the MeTC.

A month later, Agatha refiled the complaint against Yana in the same MeTC.

May Yana successfully invoke the Two-Dismissal Rule to bar Agatha's third complaint? Explain your
answer. (3%)

IX.
Abraham filed a complaint for damages in the amount of ₱750,000.00 against Salvador in the RTC in
Quezon City for the latter's alleged breach of their contract of services. Salvador promptly filed his
answer, and included a counterclaim for ₱250,000.00 arising from the allegedly baseless and malicious
claims of Abraham that compelled him to litigate and to engage the services of counsel, and thus
caused him to suffer mental anguish.

Noting that the amount of the counterclaim was below the exclusive original jurisdiction of the RTC,
Abraham filed a motion to dismiss vis-8-vis the counterclaim on that ground.

Should the counterclaim of Salvador be dismissed? Explain your answer. (4%)

X.
On the basis of an alleged promissory note executed by Harold in favor of Ramon, the latter filed a
complaint for ₱950,000.00 against the former in the RTC of Davao City. In an unverified answer,
Harold specifically denied the genuineness of the promissory note. During the trial, Harold sought to
offer the testimonies of the following: (1) the testimony of an NBI handwriting expert to prove the
forgery of his signature; and (2) the testimony of a credible witness to prove that if ever Harold had
executed the note in favor of Ramon, the same was not supported by a consideration.

May Ramon validly object to the proposed testimonies? Give a brief explanation of your answer. (5%)

XI.
A.
Teddy filed against Buboy an action for rescission of a contract for the sale of a commercial lot. After
having been told by the wife of Buboy that her husband was out of town and would not be back until
after a couple of days, the sheriff requested the wife to just receive the summons in behalf of her
husband. The wife acceded to the request, received the summons and a copy of the complaint, and
signed for the same.

(a) Was there a valid service of summons upon Buboy? Explain your answer briefly. (3%)
(b) If Buboy files a motion to dismiss the complaint based on the twin grounds of lack of jurisdiction
over his person and prescription of the cause of action, may he be deemed to have voluntarily
submitted himself to the jurisdiction of the court? Explain your answer briefly (3%).

B.
What is the mode of appeal applicable to the following cases, and what issues may be raised before
the reviewing court/tribunal?

(a) The decision or final order of the National Labor Relations Commission. (1.5%)

(b) The judgment or final order of the RTC in the exercise of its appellate jurisdiction. (1.5%)

XII.
A.
Judgment was rendered against defendant Jaypee in an action for unlawful detainer. The judgment
ordered Jaypee to vacate and to pay attorney's fees in favor of Bart, the plaintiff.

To prevent the immediate execution of the judgment, would you advise the posting of
a supersedeas bond as counsel for Jaypee? Explain your answer briefly? (2%).

B.
A temporary restraining order (TRO) was issued on September 20, 2017 by the RTC against defendant
Jeff enjoining him from entering the land of Regan, the plaintiff.

On October 9, 2017, upon application of Regan, the trial court, allegedly in the interest of justice,
extended the TRO for another 20 days based on the same ground for which the TRO was issued.

On October 15, 2017, Jeff entered the land subject of the TRO.

May Jeff be liable for contempt of court? Why? (4%)

XIII.
Police officers arrested Mr. Druggie in a buy-bust operation and confiscated from him 10 sachets
of shabu and several marked genuine peso bills worth ₱5,000.00 used as the buy-bust money during
the buy-bust operation.

At the trial of Mr. Druggie for violation of R.A. No. 9165 (Comprehensive Dangerous Drug Act
of 2002), the Prosecution offered in evidence, among others, photocopies of the confiscated marked
genuine peso bills. The photocopies were offered to prove that Mr. Druggie had engaged at the time
of his arrest in the illegal selling of dangerous drugs.

Invoking the Best Evidence Rule, Atty. Maya Bang, the defense counsel, objected to the admissibility
of the photocopies of the confiscated marked genuine peso bills.

Should the trial judge sustain the objection of the defense counsel? Briefly explain your answer (5%)

XIV.
Immediately before he died of gunshot wounds to his chest, Venancio told the attending physician,
In a very feeble voice, that it was Arnulfo, his co-worker, who had shot him. Venancio added that it
was also Arnulfo who had shot Vicente, the man whose cadaver was lying on the bed beside him.

In the prosecution of Arnulfo for the criminal killing of Venancio and Vicente, are all the statements
of Venancio admissible as dying declarations? Explain your answer. (5%)

XV.
In an attempt to discredit and impeach a Prosecution witness in a homicide case, the defense counsel
called to the stand a person who had been the boyhood friend and next-door neighbor of the
Prosecution witness for 30 years. One question that the defense counsel asked of the impeaching
witness was: "Can you tell this Honorable Court about the general reputation of the prosecution
witness in your community for aggressiveness and violent tendencies?"

Would you, as the trial prosecutor, interpose your objection to the question of the defense counsel?
Explain your answer. (4%)

XVI.
Engr. Magna Nakaw, the District Engineer of the DPWH in the Province of Walang Progreso, and
Mr. Pork Chop, a private contractor, were both charged in the Office of the Ombudsman for violation
of the Anti-Graft and Corrupt Practices Act (R.A. No. 3019) under a conspiracy theory.

While the charges were undergoing investigation in the Office of the Ombudsman, Engr. Magna
Nakaw passed away. Mr. Pork Chop immediately filed a motion to terminate the investigation and to
dismiss the charges against him, arguing that because he was charged in conspiracy with the deceased,
there was no longer a conspiracy to speak of and, consequently, any legal ground to hold him for trial
had been extinguished.

Rule on the motion to terminate filed by Mr. Pork Chop, with brief reasons. (5%).

XVII.
Juancho entered a plea of guilty when he was arraigned under an information for homicide. To
determine the penalty to be imposed, the trial court allowed Juancho to present evidence proving any
mitigating circumstance in his favor. Juancho was able to establish complete self-defense.

Convinced by the evidence adduced by Juancho, the trial court rendered a verdict of acquittal.

May the Prosecution assail the acquittal without infringing the constitutional guarantee against double
jeopardy in favor of Juancho? Explain your answer. (5%)

XVIII.
Tomas was criminally charged with serious physical injuries allegedly committed against Darvin.
During the pendency of the criminal case, Darvin filed a separate civil action for damages based on
the injuries he had sustained.

Tomas filed a motion to dismiss the separate civil action on the ground of litis pendentia, pointing out
that when the criminal action was filed against him, the civil action to recover the civil liability from
the offense charged was also deemed instituted. He insisted that the basis of the separate civil action
was the very same act that gave rise to the criminal action.

Rule on Tomas' motion to dismiss, with brief reasons. (5%)

XIX.
Boy Maton, a neighborhood tough guy, was arrested by a police officer on suspicion that he was
keeping prohibited drugs in his clutch bag. When Boy Maton was searched immediately after the
arrest, the officer found and recovered 10 sachets of shabu neatly tucked in the inner linings of the
clutch bag. At the time of his arrest, Boy Maton was watching a basketball game being played in the
town plaza, and he was cheering for his favorite team. He was subsequently charged with illegal
possession of dangerous drugs, and he entered a plea of not guilty when he was arraigned.

During the trial, Boy Maton moved for the dismissal of the information on the ground that the facts
revealed that he had been illegally arrested. He further moved for the suppression of the evidence
confiscated from him as being the consequence of the illegal arrest, hence, the fruit of the poisonous
tree.

The trial court, in denying the motions of Boy Maton, explained that at the time the motions were
filed Boy Maton had already waived the right to raise the issue of the legality of the arrest. The trial
court observed that, pursuant to the Rules of Court, Boy Maton, as the accused, should have assailed
the validity of the arrest before entering his plea to the information. Hence, the trial court opined that
any adverse consequence of the alleged illegal arrest had also been equally waived.

Comment on the ruling of the trial court. (5%)

 CRIMINAL LAW
I.
Tonito, an 8-year-old boy, was watching a free concert at the Luneta Park with his father Tony. The
child stood on a chair to be able to see the performers on the stage. Juanito, a 10-year-old boy, who
was also watching the concert, could not see much of the performance on the stage because Tonito
was blocking his line of sight by standing on the chair. Using his elbow, Juanito strongly shoved Tonito
to get a good view of the stage. The shove caused Tonito to fall to the ground. Seeing this, Tony
struck Juanito on the head with his hand and caused the boy to fall and to hit his head on a chair.
Tony also wanted to strangle Juanito but the latter's aunt prevented him from doing so. Juanito
sustained a lacerated wound on the head that required medical attendance for 10 days.

Tony was charged with child abuse in violation of Sec. 10(a), in relation to Sec. 3(b)(2), of R.A. No.
7610 (Child Abuse Law) for allegedly doing an "act by deeds or words which debases, degrades or
demeans the intrinsic worth and dignity of a child as a human being." In his defense, Tony contended
that he had no intention to maltreat Juanito, much less to degrade his intrinsic worth and dignity as a
human being.

(a) Distinguish crimes mala in se from crimes mala prohibita. (3%)

(b) Was Tony criminally liable for child abuse under R.A. No. 7610? Explain your answer. (3%)

II.
Sixteen year old Aliswan prodded Amethyst, his girlfriend, to remove her clothing while they were
secretly together in her bedroom late one evening. Failing to get a positive response from her, he
forcibly undressed her. Apprehensive about rousing the attention of the household who did not know
of his presence inside her room, she resisted him with minimal strength, but she was really sobbing in
a muffled manner. He then undressed himself while blocking- the door. Yet, the image of a hapless
and sobbing Amethyst soon brought him to his senses, and impelled him to leave her room naked.
He did not notice in his hurry that Amante, the father of Amethyst, who was then sitting alone on a
sofa in the sala, saw him leave his daughter's room naked.

Outside the house, the now-clothed Aliswan spotted Allesso, Amethyst's former suitor. Knowing how
Allesso had aggressively pursued Amethyst, Aliswan fatally stabbed Allesso. Aliswan immediately went
into hiding afterwards.

Upon learning from Amethyst about what Aliswan had done to her, an enraged Amante wanted to
teach Aliswan a lesson he would never forget. Amante set out the next day to look for Aliswan in his
school. There, Amante found a young man who looked very much like Aliswan. Amante immediately
rushed and knocked the young man unconscious on the pavement, and then draped his body with a
prepared tarpaulin reading RAPIST AKO HUWAG TULARAN. Everyone else in the school was
shocked upon witnessing what had just transpired, unable to believe that the timid and quiet Alisto,
Aliswan's identical twin brother, had committed rape.

(a) A criminal complaint for attempted rape with homicide was brought against Aliswan in the
Prosecutor's Office. However, after preliminary investigation, the Investigating Prosecutor
recommended the filing of two separate informations - one for attempted rape and the other
for homicide. Do you agree with the recommendation? Explain your answer. (3%)
(b) Before the trial court, Aliswan moved that the cases should be dismissed because he was entitled
to the exempting circumstance of minority. Is his motion correct? Explain your answer. (3%)

(c) After receiving medical attendance for 10 days, Alisto consulted you about filing the proper
criminal complaint against Amante. What crimes, if any, will you charge Amante with? Explain your
answer. (3%)

(d) Answering the criminal complaint filed by Alisto, Amante contended that he had incurred no
criminal liability for lack of criminal intent on his part, his intended victim being Aliswan, not Alisto.
What is this defense of Amante, and explain if the same will prosper? (3%)

III.
Overjoyed by the award to his firm of a multi-billion government contract for the development of an
economic and tourism hub in the Province of Blank, Mr. Gangnam allotted the amount of P100
Million to serve as gifts for certain persons instrumental in his firm's winning the award. He gave 50%
of that amount to Governor Datu, the official who had signed the contract with the proper
authorization from the Sangguniang Panlalawigan; 25% to Bokal Diva, the Sangguniang Panlalawigan
member who had lobbied for the award of the project in the Sangguniang Panlalawigan; and 25% to
Mayor Dolor of the Municipality where the project would be implemented. Governor Datu received
his share through his wife, Provincial First Lady Dee, who then deposited the amount in her personal
bank account.

Previously, upon facilitation by Bokal Diva, Mr. Gangnam concluded an agreement with Mayor Dolor
for the construction of the Blank Sports Arena worth ₱800 Million. The project was highly overpriced
because it could be undertaken and completed for not more than ₱400 Million. For this project, Mayor
Dolor received from Mr. Gangnam a gift of ₱10 Million, while Bokal Diva got ₱25 Million.

In both instances, Bokal Diva had her monetary gifts deposited in the name of her secretary, Terry,
who personally maintained a bank account for Bokal Diva's share in government projects.

(a) May each of the above-named individuals be held liable for plunder? Explain your answer. (4%)

(b) Define wheel conspiracy and chain conspiracy. Is either or both kinds existent herein? Explain
your answer. (4%)

(c) What provisions of R.A. No. 3019 (Anti-Graft & Corrupt Practices Act), if any, were violated by
any of the above-named individuals, specifying the persons liable therefor? Explain your answer. (4%)

(d) What crimes under the Revised Penal Code, if any, were committed, specifying the persons liable
therefor? Explain your answer. (4%)

IV
Maita was the object of Solito's avid sexual desires. Solito had attempted many times to entice Maita
to a date in bed with him but Maita had consistently refused. Fed up with all her rejections, Solito
abducted Maita around 7 p.m. one night. With his cohorts, Solito forced Maita into a Toyota lnnova
and drove off with her to a green-painted house situated in a desolate part of the town. There, Solito
succeeded in having carnal knowledge of Maita against her will.

Meanwhile, the police authorities were tipped off that at 11:30 p.m. on that same night Solito would
be selling marijuana outside the green-painted house. Acting on the tip, the PNP station of the town
formed a buy-bust team with PO2 Masahol being designated the poseur buyer. During the buy-bust
operation, Solito opened the trunk of the Toyota lnnova to retrieve the bag of marijuana to be sold to
PO2 Masahol. To cut the laces that he had tied the bag with, Solito took out a Swiss knife, but his
doing so prompted PO2 Masahol to effect his immediate arrest out of fear that he would attack him
with the knife. PO2 Masahol then confiscated the bag of marijuana as well as the Toyota lnnova.

(a) Two informations were filed against Solito in the RTC - one for forcible abduction with
rape, raffled to Branch 8 of the RTC; the other for illegal sale of drugs, assigned to Branch 29 of the
RTC. Was Solito charged with the proper offenses based on the circumstances? Explain your answer.
(5%)

(b) While the Prosecution was presenting its evidence in Branch 29, Branch 8 convicted Solito.
Immediately after the judgment of conviction was promulgated, Solito filed in both Branches a motion
for the release of the Toyota lnnova. He argued and proved that he had only borrowed the vehicle
from his brother, the registered owner. Branch 8 granted the motion but Branch 29 denied it. Were
the two courts correct in their rulings? Explain your answer. (5%)

V
To aid in the rebuilding and revival of Tacloban City and the surrounding areas that had been
devastated by the strongest typhoon. to hit the country in decades, the Government and other sectors,
including NGOs, banded together in the effort. Among the NGOs was Bagon Waray, Inc. (BaWI),
headed by Mr. Jose Ma. Gulang, its President and CEO. BaWI operated mainly as a social amelioration
and charitable institution. For its activities in the typhoon-stricken parts of Leyte Province, BaWI
received funds from all sources, local and foreign, including substantial amounts from legislators, local
government officials and the EU. After several months, complaints were heard about the very slow
distribution of relief goods and needed social services by BaWI.

The COA reported the results of its audit to the effect that at least P10 Million worth of funds coming
from public sources channeled to BaWI were not yet properly accounted for. The COA demanded
reimbursement but BaWI did not respond.

Hence, Mr. Gulang was criminally charged in the Office of the Ombudsman with malversation of
public funds and failure of accountable officer to render accounts as respectively defined and
punished by Art. 217 and Art. 218 of the Revised Penal Code. He was also· charged with violation of
Sec. 3(e) of R.A. No. 3019 for causing undue injury to the Government.

In his defense, Mr. Gulang mainly contended that he could not be held 1iable under the various·
charges because he was not a public officer.

(a) Who is a public officer? (2%)

(b) Discuss whether the crimes charged against Mr. Gulang are proper. Explain your answer. (3%)
 VI
Answer with brief explanations the following queries:
(a) If the slightest penetration of the female genitalia consummates rape by carnal knowledge, how
does the accused commit attempted rape by carnal knowledge? (2%)

(b) What crime is committed by a capataz who enrolls two fictitious names in the payroll and collects
their supposed daily wages every payday? (2%)

(c) What is now the age of doli incapax in the Philippines? (2%)

(d) Why is there no crime of frustrated serious physical injuries? (2%)

VII
Bernardo was enraged by his conviction for robbery by Judge Samsonite despite insufficient evidence.
Pending his appeal, Bernardo escaped in order to get even with Judge Samsonite. Bernardo learned
that the judge regularly slept in his mistress' house every weekend. Thus, he waited for the judge to
arrive on Saturday evening at the house of his mistress. It was about 8:00 p.m. when Bernardo entered
the house of the mistress. He found the judge and his mistress having coffee in the kitchen and
engaging in small talk. Without warning, Bernardo stabbed the judge at least 20 times. The judge
instantly died.

Prosecuted and tried, Bernardo was convicted of direct assault with murder. Rule with reasons
whether or not the conviction for direct assault with murder was justified, and whether or not the trial
court should appreciate the following aggravating circumstances against Bernardo, to wit: (1) disregard
of rank and age of the victim, who was 68 years old; (2) dwelling; (3) nighttime; (4) cruelty; and (5)
quasi-recidivism. (10%)

VIII
Porthos made a sudden turn on a dark street, and his Rolls-Royce SUV bumped the rear of a parked
Cadillac Sedan inside which Aramis was then taking a nap. Angered by the violent Impact, Aramis
alighted and confronted Porthos who had also alighted. Aramis angrily and repeatedly shouted at
Porthos: Putang Ina mo! Porthos, displaying fearlessness, aggressively shouted back at Aramis: Wag
kang magtapang-tapangan dyan, papatayin kita! Without saying anything more, Aramis drew his gun
from his waist and shot Porthos in the leg. Porthos' wound was not life threatening.
(a) What are the kinds of unlawful aggression, and which kind was displayed in this case? Explain your
answer. (3%)

(b) Standing trial for frustrated murder, Aramis pleaded self-defense. The Prosecution's contention
was that the plea of self-defense applied only to consummated killings. Rule, with explanations, on the
tenability of Aramis' claim of self-defense, and on the Prosecution's contention. (3%)

(c) Porthos insisted that the element of treachery was present. To rule out treachery, Aramis asserted
that both he and Porthos were then facing and confronting each other when he fired the shot. Rule,
with reasons, on the respective contentions. (3%)

IX
During the nationwide transport strike to protest the phase out of old public utility vehicles, striking
jeepney drivers Percy, Pablo, Pater and Sencio, each armed with guns, hailed several MMDA buses
then providing free transport to the stranded public to stop them from plying their routes. They later
on commandeered one of the buses without allowing any of the passengers to alight, and told the
driver to bring the bus to Tanay, Rizal.

Upon reaching a remote area in Tanay, Percy, Pablo, Pater and Sencio forcibly divested the passengers
of their cash and valuables. They ordered the passengers to leave thereafter. Then, they burned the
bus. When a tanod of the barangay of the area came around to Intervene, Pater fired at him, instantly
killing him.

After Percy, Pablo, Pater and Sencio were arrested, the police authorities recommended them to be
charged with the following crimes, to wit: (1) carnapping; (2) robbery, (3) direct assault with
homicide; (4) kidnapping; and (5) arson.

State your legal opinion on the recommendation of the police authorities on the criminal liabilities
incurred by Percy, Pablo, Pater and Sencio. (10%)

X.
Sammy Peke was convicted of a violation of R.A. No. 123456 for selling fake books. The law
prescribes the penalty of prision correccional, a divisible penalty whose minimum period is six months
and one day to two years and four months; medium period is two years, four months and one day to
four years and two months; and maximum period is four years, two months and one day to six years.
At arraignment, Sammy Peke pleads guilty to the crime charged.

(a) Explain how the Indeterminate Sentence Law is applied in crimes punished by special laws. (3%)

(b) Supposing the trial judge imposes a straight penalty of imprisonment for one year, is the penalty
correct in the context of the Indeterminate Sentence Law? Explain your answer. (3%)

XI.
In his homily, Fr. Chris loudly denounced the many extrajudicial killings committed by the men in
uniform. Policeman Stone, then attending the mass, was peeved by the denunciations of Fr. Chris. He
immediately approached the priest during the homily, openly displayed his firearm tucked in his waist,
and menacingly uttered at the priest: Father, may kalalagyan kayo kung hindi kayo tumigil. His
brazenness terrified the priest, who cut short his homily then and there. The celebration of the mass
was disrupted, and the congregation left the church in disgust over the actuations of Policeman Stone,
a co-parishioner.

Policeman Stone was subsequently charged.

The Office of the Provincial Prosecutor is now about to resolve the case, and is mulling on what to
charge Policeman Stone with.

May Policeman Stone be properly charged with either or both of the following crimes, or, if not, with
what proper crime?

(a) Interruption of religious worship as defined and punished under Art. 132 of the Revised Penal
Code; and/or
(b) Offending the religious feelings as defined and punished under Art. 133 of the Revised Penal Code.
Explain fully your answers. (8%)