LEGAL AND JUDICIAL ETHICS

2014 BAR EXAMINATIONS

COVERAGE

LEGAL AND JUDICIAL ETHICS

2014 BAR EXAMINATIONS

I. LEGAL ETHICS

A. Practice of law (Rule 138)

1. Concept

a) Privilege

b) Profession, not business

2. Qualifications

3. Appearance of non-lawyers

a) Law student practice (Rule 138-A)

b) Non-lawyers in courts

c) Non-lawyers in administrative tribunals

d) Proceedings where lawyers are prohibited from appearing

4. Sanctions for practice or appearance without authority

a) Lawyers without authority

b) Persons not lawyers

5. Public officials and practice of law

a) Prohibition or disqualification of former government attorneys

b) Public officials who cannot practice law or with restrictions

6. Lawyers authorized to represent the government

7. Lawyer’s oath

B. Duties and responsibilities of a lawyer

1. To society

a) Respect for law and legal processes

b) Efficient and convenient legal services

c) True, honest, fair, dignified and objective information on legal services

d) Participation in the improvement and reforms in the legal system

e) Participation in legal education program

2. To the legal profession

a) Integrated Bar of the Philippines (Rule 139-A)

(i) Membership and dues

b) Upholding the dignity and integrity of the profession

c) Courtesy, fairness and candor towards professional colleagues

d) No assistance in unauthorized practice of law

3. To the courts

a) Candor, fairness and good faith towards the courts

b) Respect for courts and judicial officers

c) Assistance in the speedy and efficient administration of justice

d) Reliance on merits of his cause and avoidance of any impropriety which tends to influence or gives
the appearance of influence upon the courts

4. To the clients

a) Availability of service without discrimination

(i) Services regardless of a person’s status

(ii) Services as counsel de officio

(iii) Valid grounds for refusal

b) Candor, fairness and loyalty to clients

(i) Confidentiality rule

(ii) Privileged communications

(iii) Conflict of interest

(iv) Candid and honest advice to clients

(v) Compliance with laws

(vi) Concurrent practice of another profession

c) Client’s moneys and properties

(i) Fiduciary relationship

(ii) Commingling of funds

(iii) Delivery of funds

(iv) Borrowing or lending

d) Fidelity to client’s cause

e) Competence and diligence

(i) Adequate protection

(ii) Negligence

(iii) Collaborating counsel

(iv) Duty to apprise client

f) Representation with zeal within legal bounds

(i) Use of fair and honest means

(ii) Client’s fraud

(iii) Procedure in handling the case

g) Attorney’s fees

(i) Acceptance fees

(ii) Contingency fee arrangements

(iii) Attorney’s liens

(iv) Fees and controversies with clients

(v) Concepts of attorney’s fees

(a) Ordinary concept

(b) Extraordinary concept

h) Preservation of client’s confidences

(i) Prohibited disclosures and use

(ii) Disclosure, when allowed

i) Withdrawal of services

C. Suspension, disbarment and discipline of lawyers (Rule 139-B, Rules of Court)

1. Nature and characteristics of disciplinary actions against lawyers

a) Sui generis

b) Prescription

2. Grounds

3. Proceedings

4. Discipline of Filipino lawyers practicing abroad

D. Readmission to the Bar

1. Lawyers who have been suspended

2. Lawyers who have been disbarred

3. Lawyers who have been repatriated

E. Mandatory Continuing Legal Education

1. Purpose

2. Requirements

3. Compliance

4. Exemptions

5. Sanctions

6. Bar Matter 2012, Rule on Mandatory Legal Aid Service

F. Notarial Practice (A. M. No. 02-8-13-SC, as amended)

1. Qualifications of notary public

2. Term of office of notary public

3. Powers and limitations

4. Notarial register

5. Jurisdiction of notary public and place of notarization

6. Revocation of commission

7. Competent evidence of identity

8. Sanctions

G. Canons of Professional Ethics

II. JUDICIAL ETHICS

A. Sources

1. New Code of Judicial Conduct for the Philippine Judiciary (Bangalore Draft)

2. Code of Judicial Conduct

B. Qualities

1. Independence

2. Integrity

3. Impartiality
4. Propriety

5. Equality

6. Competence and diligence

C. Discipline of members of the Judiciary

1. Members of the Supreme Court

a) Impeachment

b) Ethical Lessons from Former Chief Justice Corona’s Impeachment

2. Lower court judges and justices of the Court of Appeals and Sandiganbayan (Rule 140)

3. Grounds

4. Impeachment (ethical aspects)

5. Sanctions imposed by the Supreme Court on erring members of the Judiciary

D. Disqualification of Justices and Judges (Rule 137)

1. Compulsory

2. Voluntary
E. Powers and Duties of Courts and Judicial Officers (Rule 135)

F. Court Records and General Duties of Clerks and Stenographer (Rule 136)

G. Legal Fees (Rule 141)

1. Manner of payment

2. Fees in lien

3. Persons authorized to collect legal fees

H. Costs

1. Recovery of costs (Rule 142)

a) Prevailing party

b) Dismissed appeal or action

c) Frivolous appeal

d) False allegations

e) Non-appearance of witness
REMEDIAL LAW

2014 BAR EXAMINATIONS

1. General Principles

1.1. Concept of remedial law

1.2. Substantive law vis-á-vis remedial law

1.3. Rule-making power of the Supreme Court

1.3.1 Limitations on the rule-making power of the Supreme Court

1.3.2. Power of the Supreme Court to amend and suspend procedural rules

1.4. Nature of Philippine courts

1.4.1. Meaning of a court

1.4.2. Court as distinguished from a judge

1.4.3. Classification of Philippine courts

1.4.4. Courts of original and appellate jurisdiction

1.4.5. Courts of general and special jurisdiction

1.4.6. Constitutional and statutory courts

1.4.7. Courts of law and equity

1.4.8. Principle of judicial hierarchy

1.4.9. Doctrine of non-interference or doctrine of judicial stability

2. Jurisdiction

2.1 Over the parties

2.1.1. How jurisdiction over the plaintiff is acquired

2.1.2. How jurisdiction over the defendant is acquired

2.2 Over the subject matter

2.2 1. Meaning of jurisdiction over the subject matter

2.2 2. Jurisdiction versus the exercise of jurisdiction

2.2 3. Error of jurisdiction as distinguished from error of judgment

2.2 4. How jurisdiction is conferred and determined

2.2 5. Doctrine of primary jurisdiction

2.2 6. Doctrine of adherence of jurisdiction

2.2 7. Objections to jurisdiction over the subject matter

2.2 8. Effect of estoppel on objections to jurisdiction

2.3. Over the issues

2.4 Over the res or property in litigation

2.5. Jurisdiction of courts

2.5.1. Supreme Court

2.5.2. Court of Appeals

2.5.3. Court of Tax Appeals

2.5.4. Sandiganbayan

2.5.5. Regional Trial Courts

2.5.6. Family Courts

2.5.7. Metropolitan Trial Courts/Municipal Trial Courts

2.5.8. Shari’a Courts

2.6. Over small claims; cases covered by the Rules on Summary Procedure and Barangay conciliation

2.7 Totality rule

3. Civil Procedure

3.1. Actions

3.1.1. Meaning of ordinary civil actions

3.1.2. Meaning of special civil actions

3.1.3. Meaning of criminal actions

3.1.4. Civil actions versus special proceedings

3.1.5. Personal actions and real actions

3.1.6. Local and transitory actions

3.1.7. Actions in rem, in personam and quasi in rem

3.1.8. Independent Civil Actions

3.2. Cause of action

3.2.1. Meaning of cause of action

3.2.2. Right of action versus cause of action

3.2.3. Failure to state a cause of action

3.2.4. Test of the sufficiency of a cause of action

3.2.5. Splitting a single cause of action and its effects

3.2.6. Joinder and mis-joinder of causes of action

3.3. Parties to civil actions

3.3.1. Real parties-in-interest; indispensable parties; representatives as parties; necessary parties;

indigent parties; alternative defendants

3.3.2. Compulsory and permissive joinder of parties

3.3.3. Misjoinder and non-joinder of parties

3.3.4. Class suit

3.3.5. Suits against entities without juridical personality

3.3.6. Effect of death of party-litigant

3.4. Venue

3.4.1. Venue versus jurisdiction

3.4.2. Venue of real actions

3.4.3. Venue of personal actions

3.4.4. Venue of actions against non-residents

3.4.5. When the rules on venue do not apply

3.4.6. Effects of stipulations on venue

3.5. Pleadings

3.5.1. Kinds of pleadings

a) Complaint

b) Answer

i. Negative defenses

ii. Negative pregnant

iii. Affirmative defenses

c) Counterclaims

i. Compulsory counterclaim

ii. Permissive counterclaim

iii. Effect on the counterclaim when the complaint is dismissed

d) Cross-claims
e) Third (fourth, etc.) party complaints

f) Complaint-in-intervention

g) Reply

3.5.2. Pleadings allowed in small claim cases and cases covered by the Rules on Summary Procedure

3.5.3. Parts of a pleading

a) Caption

b) Signature and address

c) Verification and certification against forum shopping

i. Requirements of a corporation executing the verification/certification of non-forum shopping

d) Effect of the signature of counsel in a pleading

3.5.4. Allegations in a pleading

a) Manner of making allegations

i. Condition precedent

ii. Fraud, mistake, malice, intent, knowledge and other condition of the mind, judgments, official
documents or acts
b) Pleading an actionable document

c) Specific denials

i. Effect of failure to make specific denials

ii. When a specific denial requires an oath

3.5.5. Effect of failure to plead

a) Failure to plead defenses and objections

b) Failure to plead a compulsory counterclaim and cross-claim

3.5.6. Default

a) When a declaration of default is proper

b) Effect of an order of default

c) Relief from an order of default

d) Effect of a partial default

e) Extent of relief

f) Actions where default is not allowed

3.5.7. Filing and service of pleadings

a) Payment of docket fees

b) Filing versus service of pleadings

c) Periods of filing of pleadings

d) Manner of filing

e) Modes of service

i. Personal service

ii. Service by mail

iii. Substituted service

iv. Service of judgments, final orders or resolutions

v. Priorities in modes of service and filing

vi. When service is deemed complete

vii. Proof of filing and service

3.5.8. Amendment

a) Amendment as a matter of right

b) Amendments by leave of court

c) Formal amendment

d) Amendments to conform to or authorize presentation of evidence

e) Different from supplemental pleadings

f) Effect of amended pleading

3.6. Summons

3.6.1. Nature and purpose of summons in relation to actions in personam, in rem and quasi in rem

3.6.2. Voluntary appearance

3.6.3. Personal service

3.6.4. Substituted service

3.6.5. Constructive service (by publication)

a) Service upon a defendant where his identity is unknown or his whereabouts are unknown

b) Service upon residents temporarily outside the Philippines

3.6.6. Extra-territorial service, when allowed

3.6.7. Service upon prisoners and minors

3.6.8. Proof of service

3.7. Motions

3.7.1. Motions in general

a) Definition of a motion

b) Motions versus pleadings

c) Contents and forms of motions

d) Notice of hearing and hearing of motions

e) Omnibus motion rule

f) Litigated and ex parte motions

g) Pro-forma motions

3.7.2. Motions for bill of particulars

a) Purpose and when applied for

b) Actions of the court

c) Compliance with the order and effect of noncompliance

d) Effect on the period to file a responsive pleading

3.7.3. Motion to dismiss

a) Grounds

b) Resolution of motion

c) Remedies of plaintiff when the complaint is dismissed

d) Remedies of the defendant when the motion is denied

e) Effect of dismissal of complaint on certain grounds

f) When grounds pleaded as affirmative defenses

g) Bar by dismissal

h) Distinguished from demurrer to evidence under Rule 33

3.8. Dismissal of actions

3.8.1. Dismissal upon notice by plaintiff; two-dismissal rule

3.8.2. Dismissal upon motion by plaintiff; effect on existing counterclaim

3.8.3. Dismissal due to the fault of plaintiff

3.8.4. Dismissal of counterclaim, cross-claim or third-party complaint

3.9. Pre-trial

3.9.1. Concept of pre-trial

3.9.2. Nature and purpose

3.9.3. Notice of pre-trial

3.9.4. Appearance of parties; effect of failure to appear

3.9.5. Pre-trial brief; effect of failure to file

3.9.6. Distinction between pre-trial in civil case and pre-trial in criminal case

3.9.7. Alternative Dispute Resolution (ADR)

a) Special Rules of Court on ADR (A.M. No. 07-11-08-SC)

3.10. Intervention

3.10.1. Requisites for intervention

3.10.2. Time to intervene

3.10.3. Remedy for the denial of motion to intervene

3.11. Subpoena
3.11.1. Subpoena duces tecum

3.11.2. Subpoena ad testificandum

3.11.3. Service of subpoena

3.11.4. Compelling attendance of witnesses; contempt

3.11.5. Quashing of subpoena

3.12. Modes of discovery

3.12.1. Depositions pending action; depositions before action or pending appeal

a) Meaning of deposition

b) Uses; scope of examination

c) When may objections to admissibility be made

d) When may taking of deposition be terminated or its scope limited

3.12.2. Written interrogatories to adverse parties

a) Consequences of refusal to answer

b) Effect of failure to serve written interrogatories

3.12.3. Request for admission

a) Implied admission by adverse party

b) Consequences of failure to answer request for admission

c) Effect of admission

d) Effect of failure to file and serve request for admission

3.12.4. Production or inspection of documents or things

3.12.5. Physical and mental examination of persons

3.12.6. Consequences of refusal to comply with modes of discovery

3.13. Trial

3.13.1. Adjournments and postponements

3.13.2. Requisites of motion to postpone trial

a) For absence of evidence

b) For illness of party or counsel

3.13.3. Agreed statement of facts

3.13.4. Order of trial; reversal of order

3.13.5. Consolidation or severance of hearing or trial

3.13.6. Delegation of reception of evidence

3.13.7. Trial by commissioners

a) Reference by consent or ordered on motion

b) Powers of the commissioner

c) Commissioner’s report; notice to parties and hearing on the report

3.14. Demurrer to evidence

3.14.1. Ground

3.14.2. Effect of denial

3.14.3. Effect of grant

3.14.4. Waiver of right to present evidence

3.14.5. Demurrer to evidence in a civil case versus demurrer to evidence in a criminal case

3.15. Judgments and final orders

3.15.1. Judgment without trial

3.15.2. Contents of a judgment

3.15.3. Judgment on the pleadings

3.15.4. Summary judgments

a) For the claimant

b) For the defendant

c) When the case not fully adjudicated

d) Affidavits and attachments

3.15.5. Judgment on the pleadings versus summary judgments

3.15.6. Rendition of judgments and final orders

3.15.7. Entry of judgment and final order

3.16. Post-judgment remedies

3.16.1. Motion for new trial or reconsideration

a) Grounds

b) When to file

c) Denial of the motion; effect

d) Grant of the motion; effect

e) Remedy when motion is denied, fresh 15-day period rule

3.16.2. Appeals in general

a) Judgments and final orders subject to appeal

b) Matters not appealable

c) Remedy against judgments and orders which are not appealable

d) Modes of appeal

i. Ordinary appeal

ii. Petition for review

iii. Petition for review on certiorari

e) Issues to be raised on appeal

f) Period of appeal

g) Perfection of appeal

h) Appeal from judgments or final orders of the MTC

i) Appeal from judgments or final orders of the RTC

j) Appeal from judgments or final orders of the CA

k) Appeal from judgments or final orders of the CTA

l) Review of final judgments or final orders of the Comelec

m) Review of final judgments or final orders of the Ombudsman

n) Review of final judgments or final orders of the NLRC

o) Review of final judgments or final orders of quasi-judicial agencies

3.16.3. Relief from judgments, orders and other proceedings

a) Grounds for availing of the remedy

b) Time to file petition

c) Contents of petition

3.16.4. Annulment of judgments or final orders and resolutions

a) Grounds for annulment

b) Period to file action

c) Effects of judgment of annulment

3.16.5. Collateral attack of judgments

3.17. Execution, satisfaction and effect of judgments

3.17.1. Difference between finality of judgment for purposes of appeal; for purposes of execution

3.17.2. When execution shall issue

a) Execution as a matter of right

b) Discretionary execution

3.17.3. How a judgment is executed

a) Execution by motion or by independent action

b) Issuance and contents of a writ of execution

c) Execution of judgments for money

d) Execution of judgments for specific acts

e) Execution of special judgments

f) Effect of levy on third persons

3.17.4. Properties exempt from execution

3.17.5. Proceedings where property is claimed by third persons

a) In relation to third-party claim in attachment and replevin

3.17.6. Rules on redemption

3.17.7. Examination of judgment obligor when judgment is unsatisfied

3.17.8. Examination of obligor of judgment obligor

3.17.9. Effect of judgment or final orders

3.17.10. Enforcement and effect of foreign judgments or final orders

3.18. Provisional remedies

3.18.1. Nature of provisional remedies

3.18.2. Jurisdiction over provisional remedies

3.18.3. Preliminary attachment

a) Grounds for issuance of writ of attachment

b) Requisites

c) Issuance and contents of order of attachment; affidavit and bond

d) Rule on prior or contemporaneous service of summons

e) Manner of attaching real and personal property; when property attached is claimed by third person

f) Discharge of attachment and the counter-bond

g) Satisfaction of judgment out of property attached

3.18.4. Preliminary injunction

a) Definitions and differences: preliminary injunction and temporary restraining order; status quo ante
order

b) Requisites

c) Kinds of injunction

d) When writ may be issued

e) Grounds for issuance of preliminary injunction

f) Grounds for objection to, or for the dissolution of injunction or restraining order

g) Duration of a Temporary Restraining Order (TRO)

h) In relation to R.A. No. 8975, ban on issuance of TRO or writ of injunction in cases involving
government infrastructure projects

i) Rule on prior or contemporaneous service of summons in relation to attachment

3.18.5. Receivership
a) Cases when receiver may be appointed

b) Requisites

c) Requirements before issuance of an order

d) General powers of a receiver

e) Two kinds of bonds

f) Termination of receivership

3.18.6. Replevin

a) When may writ be issued

b) Requisites

c) Affidavit and bond; redelivery bond

d) Sheriff’s duty in the implementation of the writ; when property is claimed by third party

3.19. Special civil actions

3.19.1. Nature of special civil actions

3.19.2. Ordinary civil actions versus special civil actions

3.19.3. Jurisdiction and venue

3.19.4. Interpleader

a) Requisites for interpleader

b) When to file

3.19.5. Declaratory reliefs and similar remedies

a) Who may file the action

b) Requisites of action for declaratory relief

c) When court may refuse to make judicial declaration

d) Conversion to ordinary action

e) Proceedings considered as similar remedies

i. Reformation of an instrument

ii. Consolidation of ownership

iii. Quieting of title to real property

3.19.6. Review of judgments and final orders or resolution of the Comelec and COA

a) Application of Rule 65 under Rule 64

b) Distinction in the application of Rule 65 to judgments of the Comelec and COA and the application of
Rule 65 to other tribunals, persons and officers

3.19.7. Certiorari, prohibition and mandamus

a) Definitions and distinctions

i. Certiorari distinguished from appeal by certiorari

ii. Prohibition and mandamus distinguished from injunction

b) Requisites

c) When petition for certiorari, prohibition and mandamus is proper

d) Injunctive relief

e) Exceptions to filing of motion for reconsideration before filing petition

f) Reliefs petitioner is entitled to

g) Actions/omissions of MTC/RTC in election cases

h) When and where to file petition

i) Effects of filing of an unmeritorious petition

3.19.8. Quo warranto

a) Distinguish from quo warranto in the Omnibus Election Code

b) When government may commence an action against individuals

c) When individual may commence an action

d) Judgment in quo warranto action

e) Rights of a person adjudged entitled to public office

3.19.9. Expropriation

a) Matters to allege in complaint for expropriation

b) Two stages in every action for expropriation

c) When plaintiff can immediately enter into possession of the real property, in relation to R.A. No. 8974

d) New system of immediate payment of initial just compensation

e) Defenses and objections

f) Order of expropriation

g) Ascertainment of just compensation

h) Appointment of commissioners; commissioner’s report; court action upon commissioner’s report

i) Rights of plaintiff upon judgment and payment

j) Effect of recording of judgment

3.19.10. Foreclosure of real estate mortgage

a) Judgment on foreclosure for payment or sale

b) Sale of mortgaged property; effect

c) Disposition of proceeds of sale

d) Deficiency judgment

i. Instances when court cannot render deficiency judgment

e) Judicial foreclosure versus extrajudicial foreclosure

f) Equity of redemption versus right of redemption

3.19.11. Partition

a) Who may file complaint; who should be made defendants

b) Matters to allege in the complaint for partition

c) Two stages in every action for partition

d) Order of partition and partition by agreement

e) Partition by commissioners; appointment of commissioners, commissioner’s report; court action
upon commissioner’s report

f) Judgment and its effects

g) Partition of personal property

h) Prescription of action

3.19.12. Forcible entry and unlawful detainer

a) Definitions and distinction

b) Distinguished from accion publiciana, accion reivindicatoria and accion interdictal

c) How to determine jurisdiction in accion publiciana, accion reivindicatoria and accion interdictal

d) Who may institute the action and when; against whom the action may be maintained

e) Pleadings allowed

f) Action on the complaint

g) When demand is necessary

h) Preliminary injunction and preliminary mandatory injunction

i) Resolving defense of ownership

j) How to stay the immediate execution of judgment

k) Summary procedure, prohibited pleadings

3.19.13. Contempt

a) Kinds of contempt

b) Purpose and nature of each

c) Remedy against direct contempt; penalty

d) Remedy against indirect contempt; penalty

e) How contempt proceedings are commenced

f) Acts deemed punishable as indirect contempt

g) When imprisonment shall be imposed

h) Contempt against quasi-judicial bodies

4. Special Proceedings

4.1. Settlement of estate of deceased persons, venue and process

4.1.1. Which court has jurisdiction

4.1.2. Venue in judicial settlement of estate

4.1.3. Extent of jurisdiction of probate court

4.1.4. Powers and duties of probate court

4.2. Summary settlement of estates

4.2.1. Extrajudicial settlement by agreement between heirs, when allowed

4.2.2. Two-year prescriptive period

4.2.3. Affidavit of self-adjudication by sole heir

4.2.4. Summary settlement of estates of small value, when allowed

4.2.5. Remedies of aggrieved parties after extrajudicial settlement of estate

4.3. Production and probate of will

4.3.1. Nature of probate proceeding

4.3.2. Who may petition for probate; persons entitled to notice

4.4. Allowance or disallowance of will

4.4.1. Contents of petition for allowance of will

4.4.2. Grounds for disallowing a will

4.4.3. Reprobate

a) Requisites before a will proved abroad would be allowed in the Philippines

4.4.4. Effects of probate

4.5. Letters testamentary and of administration

4.5.1. When and to whom letters of administration granted

4.5.2. Order of preference

4.5.3. Opposition to issuance of letters testamentary; simultaneous filing of petition for administration

4.5.4. Powers and duties of executors and administrators; restrictions on the powers

4.5.5. Appointment of special administrator

4.5.6. Grounds for removal of administrator

4.6. Claims against the estate

4.6.1. Time within which claims shall be filed; exceptions

4.6.2. Statute of non-claims

4.6.3. Claim of executor or administrator against the estate

4.6.4. Payment of debts

4.7. Actions by and against executors and administrators

4.7.1. Actions that may be brought against executors and administrators

4.7.2. Requisites before creditor may bring an action for recovery of property fraudulently conveyed by
the deceased

4.8. Distribution and partition

4.8.1. Liquidation

4.8.2. Project of partition

4.8.3. Remedy of an heir entitled to residue but not given his share

4.8.4. Instances when probate court may issue writ of execution

4.9. Trustees

4.9.1. Distinguished from executor/administrator

4.9.2. Conditions of the bond

4.9.3. Requisites for the removal and resignation of a trustee

4.9.4. Grounds for removal and resignation of a trustee

4.9.5. Extent of authority of trustee

4.10. Escheat

4.10.1. When to file

4.10.2. Requisites for filing of petition

4.10.3. Remedy of respondent against petition; period for filing a claim

4.11. Guardianship

4.11.1. General powers and duties of guardians

4.11.2. Conditions of the bond of the guardian

4.11.3. Rule on guardianship over minor

4.12. Adoption

4.12.1. Distinguish domestic adoption from inter-country adoption

4.12.2. Domestic Adoption Act

a) Effects of adoption

b) Instances when adoption may be rescinded

c) Effects of rescission of adoption

4.12.3. Inter-country adoption

a) When allowed

b) Functions of the RTC

c) "Best interest of the minor" standard

4.13. Writ of habeas corpus

4.13.1. Contents of the petition

4.13.2. Contents of the return

4.13.3. Distinguish peremptory writ from preliminary citation

4.13.4. When not proper/applicable

4.13.5. When writ disallowed/discharged

4.13.6. Distinguish from writ of amparo and habeas data

4.13.7. Rules on Custody of Minors and Writ of Habeas Corpus in relation to Custody of Minors (A.M.
No. 03-04-04-SC)

4.14. Writ of Amparo (A.M. No. 07-9-12-SC)

4.14.1. Coverage
4.14.2. Distinguish from habeas corpus and habeas data

4.14.3. Differences between amparo and search warrant

4.14.4. Who may file

4.14.5. Contents of return

4.14.6. Effects of failure to file return

4.14.7. Omnibus waiver rule

4.14.8. Procedure for hearing

4.14.9. Institution of separate action

4.14.10. Effect of filing of a criminal action

4.14.11. Consolidation

4.14.12. Interim reliefs available to petitioner and respondent

4.14.13. Quantum of proof in application for issuance of writ of amparo

4.15. Writ of Habeas Data (A.M. No. 08-1-16-SC)

4.15.1. Scope of writ

4.15.2. Availability of writ

4.15.3. Distinguished from habeas corpus and amparo

4.15.4. Contents of the petition

4.15.5. Contents of return

4.15.6. Instances when petition may be heard in chambers

4.15.7. Consolidation

4.15.8. Effect of filing of a criminal action

4.15.9. Institution of separate action

4.15.10. Quantum of proof in application for issuance of writ of amparo

4.16. Change of name

4.16.1. Differences under Rule 103, R.A. No. 9048 and Rule 108

4.16.2. Grounds for change of name

4.17. Absentees

4.17.1. Purpose of the rule

4.17.2. Who may file; when to file

4.18. Cancellation or correction of entries in the Civil Registry

4.18.1. Entries subject to cancellation or correction under Rule 108, in relation to R.A. No. 9048

4.19. Appeals in special proceedings

4.19.1. Judgments and orders for which appeal may be taken

4.19.2. When to appeal

4.19.3. Modes of appeal

4.19.4. Rule on advance distribution

5. Criminal Procedure

5.1. General matters

5.1.1. Distinguish jurisdiction over subject matter from jurisdiction over person of the accused

5.1.2. Requisites for exercise of criminal jurisdiction

5.1.3. Jurisdiction of criminal courts

5.1.4. When injunction may be issued to restrain criminal prosecution

5.2. Prosecution of offenses

5.2.1. Criminal actions, how instituted

5.2.2. Who may file them, crimes that cannot be prosecuted de officio

5.2.3. Criminal actions, when enjoined

5.2.4. Control of prosecution

5.2.5. Sufficiency of complaint or information

5.2.6. Designation of offense

5.2.7. Cause of the accusation

5.2.8. Duplicity of the offense; exception

5.2.9. Amendment or substitution of complaint or information

5.2.10. Venue of criminal actions

5.2.11. Intervention of offended party

5.3. Prosecution of civil action

5.3.1. Rule on implied institution of civil action with criminal action

5.3.2. When civil action may proceed independently

5.3.3. When separate civil action is suspended

5.3.4. Effect of death of the accused or convict on civil action

5.3.5. Prejudicial question

5.3.6. Rule on filing fees in civil action deemed instituted with the criminal action

5.4. Preliminary investigation

5.4.1. Nature of right

5.4.2. Purposes of preliminary investigation

5.4.3. Who may conduct determination of existence of probable cause

5.4.4. Resolution of investigation prosecutor

5.4.5. Review

5.4.6. When warrant of arrest may issue

5.4.7. Cases not requiring a preliminary investigation

5.4.8. Remedies of accused if there was no preliminary investigation

5.4.9. Inquest

5.5. Arrest
5.5.1. Arrest, how made

5.5.2. Arrest without warrant, when lawful

5.5.3. Method of arrest

a) By officer with warrant

b) By officer without warrant

c) By private person

5.5.4. Requisites of a valid warrant of arrest

5.5.5. Determination of probable cause for issuance of warrant of arrest

5.5.6. Distinguish probable cause of fiscal from that of a judge

5.6. Bail

5.6.1. Nature

5.6.2. When a matter of right; exceptions

5.6.3. When a matter of discretion

5.6.4. Hearing of application for bail in capital offenses

5.6.5. Guidelines in fixing amount of bail

5.6.6. Bail when not required

5.6.7. Increase or reduction of bail

5.6.8. Forfeiture and cancellation of bail

5.6.9. Application not a bar to objections in illegal arrest, lack of or irregular preliminary investigation

5.6.10. Hold departure order & Bureau of Immigration watchlist

5.7. Rights of the accused

5.7.1. Rights of accused at the trial

5.7.2. Rights of persons under custodial investigation

5.8. Arraignment and plea

5.8.1. Arraignment and plea, how made

5.8.2. When should plea of not guilty be entered

5.8.3. When may accused enter a plea of guilty to a lesser offense

5.8.4. Accused pleads guilty to capital offense, what the court should do

5.8.5. Searching inquiry

5.8.6. Improvident plea

5.8.7. Grounds for suspension of arraignment

5.9. Motion to quash

5.9.1. Grounds

5.9.2. Distinguish from demurrer to evidence

5.9.3. Effects of sustaining the motion to quash

5.9.4. Exception to the rule that sustaining the motion is not a bar to another prosecution

5.9.5. Double jeopardy

5.9.6. Provisional dismissal

5.10. Pre-trial

5.10.1. Matters to be considered during pre-trial

5.10.2. What the court should do when prosecution and offended party agree to the plea offered by the
accused

5.10.3. Pre-trial agreement

5.10.4. Non-appearance during pre-trial

5.10.5. Pre-trial order

5.10.6. Referral of some cases for court annexed mediation and judicial dispute resolution

5.11. Trial

5.11.1. Instances when presence of accused is required by law

5.11.2. Requisite before trial can be suspended on account of absence of witness

5.11.3. Trial in absentia

5.11.4. Remedy when accused is not brought to trial within the prescribed period

5.11.5. Requisites for discharge of accused to become a state witness

5.11.6. Effects of discharge of accused as state witness

5.11.7. Demurrer to evidence

5.12. Judgment

5.12.1. Requisites of a judgment

5.12.2. Contents of judgment

5.12.3. Promulgation of judgment; instances of promulgation of judgment in absentia

5.12.4. When does judgment become final (four instances)

5.13. New trial or reconsideration

5.13.1. Grounds for new trial

5.13.2. Grounds for reconsideration

5.13.3. Requisites before a new trial may be granted on ground of newly-discovered evidence

5.13.4. Effects of granting a new trial or reconsideration

5.13.5. Application of Neypes doctrine in criminal cases

5.14. Appeal

5.14.1. Effect of an appeal

5.14.2. Where to appeal

5.14.3. How appeal taken

5.14.4. Effect of appeal by any of several accused

5.14.5. Grounds for dismissal of appeal

5.15. Search and seizure

5.15.1. Nature of search warrant

5.15.2. Distinguish from warrant of arrest

5.15.3. Application for search warrant, where filed

5.15.4. Probable cause

5.15.5. Personal examination by judge of the applicant and witnesses

5.15.6. Particularity of place to be searched and things to be seized

5.15.7. Personal property to be seized

5.15.8. Exceptions to search warrant requirement

a) Search incidental to lawful arrest

b) Consented search

c) Search of moving vehicle

d) Check points; body checks in airport

e) Plain view situation

f) Stop and frisk situation

g) Enforcement of custom laws

h) Remedies from unlawful search and seizure

5.16. Provisional remedies

5.16.1. Nature

5.16.2. Kinds of provisional remedies

6. Evidence

6.1. General principles

6.1.1. Concept of evidence

6.1.2. Scope of the Rules on Evidence

6.1.3. Evidence in civil cases versus evidence in criminal cases

6.1.4. Proof versus evidence

6.1.5. Factum probans versus factum probandum

6.1.6. Admissibility of evidence

a) Requisites for admissibility of evidence

b) Relevance of evidence and collateral matters

c) Multiple admissibility
d) Conditional admissibility

e) Curative admissibility

f) Direct and circumstantial evidence

g) Positive and negative evidence

h) Competent and credible evidence

6.1.7. Burden of proof and burden of evidence

6.1.8. Presumptions

a) Conclusive presumptions

b) Disputable presumptions

6.1.9. Liberal construction of the rules of evidence

6.1.10. Quantum of evidence (weight and sufficiency of evidence)

a) Proof beyond reasonable doubt

b) Preponderance of evidence

c) Substantial evidence

d) Clear and convincing evidence

6.2. Judicial notice and judicial admissions

6.2.1. What need not be proved

6.2.2. Matters of judicial notice

a) Mandatory

b) Discretionary

6.2.3. Judicial admissions

a) Effect of judicial admissions

b) How judicial admissions may be contradicted

6.2.4. Judicial notice of foreign laws, law of nations and municipal ordinance

6.3. Object (real) evidence

6.3.1. Nature of object evidence

6.3.2. Requisites for admissibility

6.3.3. Categories of object evidence

6.3.4. Demonstrative evidence

6.3.5. View of an object or scene

6.3.6. Chain of custody, in relation to Section 21 of the Comprehensive Dangerous Drugs Act of 2002

6.3.7. Rule on DNA Evidence (A.M. No. 06-11-5-SC)

a) Meaning of DNA

b) Applicable for DNA testing order

c) Post-conviction DNA testing; remedy

d) Assessment of probative value of DNA evidence and admissibility

e) Rules on evaluation of reliability of the DNA testing methodology

6.4. Documentary evidence

6.4.1. Meaning of documentary evidence

6.4.2. Requisites for admissibility

6.4.3. Best Evidence Rule

a) Meaning of the rule

b) When applicable

c) Meaning of original
d) Requisites for introduction of secondary evidence

6.4.4. Rules on Electronic Evidence (A.M. No. 01-7-01-SC)

a) Scope; coverage; meaning of electronic evidence; electronic data message

b) Probative value of electronic documents or evidentiary weight; method of proof

c) Authentication of electronic documents and electronic signatures

d) Electronic documents vis-a-vis the hearsay rule

e) Audio, photographic, video and ephemeral evidence

6.4.5. Parol Evidence Rule

a) Application of the parol evidence rule

b) When parol evidence can be introduced

c) Distinctions between the best evidence rule and parol evidence rule

6.4.6. Authentication and proof of documents

a) Meaning of authentication

b) Public and private documents

c) When a private writing requires authentication; proof of a private writing

d) When evidence of authenticity of a private writing is not required (ancient documents)

e) How to prove genuineness of a handwriting

f) Public documents as evidence; proof of official record

g) Attestation of a copy

h) Public record of a public document

i) Proof of lack of record

j) How a judicial record is impeached

k) Proof of notarial documents

l) How to explain alterations in a document

m) Documentary evidence in an unofficial language

6.5. Testimonial evidence

6.5.1. Qualifications of a witness

6.5.2. Competency versus credibility of a witness

6.5.3. Disqualifications of witnesses

a) By reason of mental capacity or immaturity

b) By reason of marriage

c) By reason of death or insanity of adverse party

d) By reason of privileged communications

6.5.4. Examination of a witness

a) Rights and obligations of a witness

b) Order in the examination of an individual witness

i. Direct examination

ii. Cross examination

iii. Re-direct examination

iv. Re-cross examination

v. Recalling the witness

c) Leading and misleading questions

d) Methods of impeachment of adverse party’s witness

e) How the witness is impeached by evidence of inconsistent statements (laying the predicate)

f) Evidence of the good character of a witness

g) Judicial Affidavit Rule (A.M. No. 12-8-8-SC)

6.5.5. Admissions and confessions

a) Res inter alios acta rule

b) Admission by a party

c) Admission by a third party

d) Admission by a co-partner or agent

e) Admission by a conspirator

f) Admission by privies

g) Admission by silence

h) Confessions

i) Similar acts as evidence

6.5.6. Hearsay Rule

a) Meaning of hearsay
b) Reason for exclusion of hearsay evidence

c) Exceptions to the hearsay rule

i. Dying declaration

ii. Declaration against interest

iii. Act or declaration about pedigree

iv. Family reputation or tradition regarding pedigree

v. Common reputation

vi. Part of the res gestae

vii. Entries in the course of business

viii. Entries in official records

ix. Commercial lists and the like

x. Learned treaties

xi. Testimony or deposition at a former trial

6.5.7. Opinion rule

a) Opinion of expert witness

b) Opinion of ordinary witness

6.5.8. Character evidence

a) Criminal cases

b) Civil cases

6.5.9. Rule on Examination of a Child Witness (A.M. No. 004-07-SC)

a) Applicability of the rule

b) Meaning of "child witness"

c) Competency of a child witness

d) Examination of a child witness

e) Live-link TV testimony of a child witness

f) Videotaped deposition of a child witness

g) Hearsay exception in child abuse cases

h) Sexual abuse shield rule

i) Protective orders
6.6. Offer and objection

6.6.1. Offer of evidence

6.6.2. When to make an offer

6.6.3. Objection

6.6.4. Repetition of an objection

6.6.5. Ruling

6.6.6. Striking out of an answer

6.6.7. Tender of excluded evidence

7. Revised Rules on Summary Procedure

7.1. Cases covered by the rule

7.2. Effect of failure to answer

7.3. Preliminary conference and appearances of parties

8. Katarungang Pambarangay Law (P.D. No. 1508; R.A. 7610, as amended)

8.1. Cases covered

8.2. Subject matter for amicable settlement

8.3. Venue

8.4. When parties may directly go to court

8.5. Execution

8.6. Repudiation

9. Rule of Procedure for Small Claims Cases (A.M. No. 08-8-7-SC)

9.1. Scope and applicability of the rule

9.2. Commencement of small claims action; response

9.3. Prohibited pleadings and motions

9.4. Appearances

9.5. Hearing; duty of the judge

9.6. Finality of judgment

10. Rules of Procedure for Environmental Cases (A.M. No. 09-6-8-SC)

10.1. Scope and applicability of the rule

10.2. Civil procedure

10.2.1. Prohibition against temporary restraining order and preliminary injunction

10.2.2. Pre-trial conference; consent decree

10.2.3. Prohibited pleadings and motions

10.2.4. Temporary Environmental Protection Order (TEPO)

10.2.5. Judgment and execution; reliefs in a citizen’s suit

10.2.6. Permanent Environmental Protection Order; writ of continuing mandamus

10.2.7. Strategic lawsuit against public participation

10.3. Special proceedings

10.3.1. Writ of Kalikasan

10.3.2. Prohibited pleadings and motions

10.3.3. Discovery measures

10.3.4. Writ of continuing mandamus

10.4. Criminal procedure

10.4.1. Who may file

10.4.2. Institution of criminal and civil action

10.4.3. Arrest without warrant, when valid

10.2.4. Strategic lawsuit against public participation

10.4.5. Procedure in the custody and disposition of seized items

10.4.6. Bail

10.4.7. Arraignment and plea

10.4.8. Pre-trial

10.4.9. Subsidiary liabilities

10.5. Evidence

10.5.1. Precautionary principle

10.5.2. Documentary evidence

11. Judicial Affidavit Rule (A.M. No. 12-8-8-SC)

11.1. Scope and where applicable

11.2 Contents and Procedure

11.3 Application to criminal actions

11.4 Effect of non-compliance

11.5 Effect on other rules

12. Efficient Use of Paper Rule (A.M. No. 11-9-4-SC)

 2014 BAR EXAMINATIONS

CRIMINAL LAW

I.

Ms. Ahad been married to Mr. B for 10 years. Since their marriage, Mr. B had been jobless and a
drunkard, preferring to stay with his "barkadas" until the wee hours of the morning. Ms. A was the
breadwinner and attended to the needs of their three (3) growing children. Many times, when Mr. Bwas
drunk, he would beat Ms. Aand their three (3) children, and shout invectives against them. In fact, in
one of the beating incidents, Ms. A suffered a deep stab wound on her tummy that required a prolonged
stay in the hospital. Due to the beatings and verbal abuses committed against her, she consulted a
psychologist several times, as she was slowly beginning to lose her mind. One night, when Mr. Barrived
dead drunk, he suddenly stabbed Ms. Aseveral times while shouting invectives against her. Defending
herself from the attack, Ms. A grappled for the possession of a knife and she succeeded. She then
stabbed Mr. B several times which caused his instantaneous death. Medico-Legal Report showed that
the husband suffered three (3) stab wounds. Can Ms. Avalidly put up a defense? Explain. (5%)

II.

Macho married Ganda, a transgender. Macho was not then aware that Ganda was a transgender. On
their first night, after their marriage, Macho discovered that Ganda was a transgender. Macho
confronted Ganda and a heated argument ensued. In the course of the heated argument, a fight took
place wherein Ganda got hold of a knife to stab Macho. Macho ran away from the stabbing thrusts and
got his gun which he pointed at Ganda just to frighten and stop Ganda from continuing with the attack.
Macho had no intention at all to kill Ganda. Unfamiliar with guns, Macho accidentally pulled the trigger
and hit Ganda that caused the latter’s death. What was the crime committed? (4%)

III.

City Engr. A, is the city engineer and the Chairman of the Bids and Awards Committee (BAC) of the City
of Kawawa. In 2009, the City of Kawawa, through an ordinance,allotted the amount of P100 million for
the construction of a road leading to the poblacion. City Engr. A instead, diverted the construction of the
road leading to his farm. Investigation further showed that he accepted money in the amount of P10
million each from three (3) contending bidders, who eventually lost in the bidding.
Audit report likewise showed that service vehicles valued at P2 million could not be accounted for
although reports showed that these were lent to City Engr. A’s authorized drivers but the same were
never returned. Further, there were funds under City Engr. A’s custody amounting to P10 million which
were found to be missing and could not be accounted for. In another project, he was instrumentalin
awarding a contract for the construction of a city school building costing P10 million to a close relative,
although the lowest bid was P8 million. Investigation also revealed that City Engr. A has a net worth of
more than P50 million, which was way beyond his legitimate income. (8%)

(A) If you are the Ombudsman, what charge or charges will you file against City Engr. A?

(B) Suppose the discovered net worth of City Engr. Ais less than P50 million, will your answer still be the
same?

IV.

Madam X, a bank teller, received from depositor Madam Y a check payable to cash in the amount of P1
million, to be deposited to the account of Madam Y. Because the check was not a crossed check, Madam
X credited the amount to the account of her good friend, Madam W, by accomplishing a deposit slip.
Seven (7) days after, Madam X contacted her good friend, Madam W and told her that the amount of P1
million was wrongfully credited to Madam W, thus, Madam X urged Madam W to withdraw the amount
of P1 million from her accountand to turn over the same to Madam X. As a dutiful friend, Madam W
readily acceded. She was gifted by Madam X with an expensive Hermes bag after the withdrawal of the
amount. What crime/s, if any, did Madam X and Madam W commit? Explain. (5%)

V.

Congress passed a law reviving the Anti-Subversion Law, making it a criminal offense again for a person
to join the Communist Party of the Philippines. Reporma, a former high-ranking member of the
Communist Party, was charged under the new law for his membership in the Communist Party when he
was a student in the 80’s. He now challenges the charge against him. What objections may he raise?
(3%)

VI.
Awas caught peeping through a small hole in the bathroom door while a young 16-year-old lady was
taking a bath. Ais liable for: (1%)

(A) Violation of R.A. 9262 or Violence Against Women and their Children

(B) Violation of R.A. 7610 – Child Abuse Law

(C) Light coercion

(D) Acts of lasciviousness

VII.

Filthy, a very rich businessman, convinced Loko, a clerk of court, to issue an order of release for Takas,
Filthy’s cousin, who was in jail for a drug charge. After receiving P500,000.00, Loko forged the signature
of the judge on the order of release and accompanied Filthyto the detention center. At the jail, Loko
gave the guard P10,000.00 to open the gate and let Takas out.

What crime or crimes did Filthy, Loko, and the guard commit? (4%)

VIII.

Pretty was a campus beauty queen who, because of her looks and charms, attracted many suitors.
Having decided that she would become a nun, Pretty turned down all her suitors. Guapo, one of her
most persistent suitors, could not handle rejection and one night, decided to accost Pretty as she walked
home. Together with Pogi, Guapo forced Pretty into his car and drove her to an abandoned warehouse
where heand Pogi forced Pretty to dance for them. Later, the two took turns in raping her.After
satisfying their lusts, Guapo and Pogi dropped her off at her house. (4%)

(A) What crime or crimes did Guapo and Pogi commit?

(B) Pretty, after the ordeal, decided to take her own life by hanging herself one hour after the rape.
Would Guapo and Pogi be liable for Pretty’s death? Explain.

IX.

A, B, and C agreed to rob the house of Mr. Dat 10 o’clock in the evening, with Cas the driver of the
tricycle which they would use in going to and leaving the house of Mr. D, and Aand Bas the ones who
would enter the house to get the valuables of Mr. D. As planned, C parked the tricycle in a dark place,
while A and B entered the house thru an open door. Once inside, A entered the master’s bedroom and
started getting all the valuables he could see, while Bentered another room. While inside the room, B
saw a male person and immediately Bbrought out his gun but he accidentally pulled its trigger. The
bullet went through the window, hitting a neighbor that killed him. Neighbors were then awakened by
the gunfire and policemen were alerted. Not long after, policemen arrived. Aand B panicked and got
hold of a young boy and shouted to the policemen who were already outside of the house that they
would harm the boy if the policemen did not disperse. Aand B demanded that they should be allowed to
use a vehicle to bring them to a certain place and that would be the time that they would release the
young boy. The policemen acceded. In the meantime, Cwas arrested by the policemen while he was
about to flee, while Aand B, after releasing the young boy, were arrested.

What crime/s did A, B, and Ccommit, and what modifying circumstances attended the commission of
the crime/s? (6%)

X.

Loko advertised on the internet that he was looking for commercial models for a TV advertisement.
Ganda, a 16-year-old beauty, applied for the project. Loko offered her a contract, which Ganda signed.
She was asked to report to an address which turned out to be a high-end brothel. Ganda became one of
its most featured attraction. What is Loko’s liability, if any? What effect would Ganda’s minority have on
Loko’s liability? (4%)

XI.

A, in a public place, fired his gun at B with the intention of killing B, but the gun did not fire because the
bullet is a dud. The crime is: (1%)
(A) attempted homicide

(B) grave threat

(C) impossible crime

(D) alarm and scandal

XII.

Sexy boarded a taxi on her way home from a party. Because she was already tipsy, she fell asleep. Pogi,
the taxi driver, decided to take advantage of the situation and drove Sexyto a deserted place where he
raped her for a period of two (2) weeks. What crime did Pogi commit? (4%)

XIII.

Puti detested Pula, his roommate, because Pula was courting Ganda, whom Puti fancied. One day, Puti
decided to teach Pula a lesson and went to a veterinarian (Vet) to ask for poison on the pretext that he
was going to kill a sick pet, when actually Puti was intending to poison Pula.

The Vetinstantly gave Puti a non-toxic solution which, when mixed with Pula’s food, did not kill Pula.
(4%)

(A) What crime, if any, did Puti commit?

(B) Would your answer be the same if, as a result of the mixture, Pula got an upset stomach and had to
be hospitalized for 10 days?

XIV.
Malo, a clerk of court of a trial court, promised the accused in a drug case pending before the court, that
he would convince the judge to acquit him for a consideration of P5 million. The accused agreed and
delivered the money, through his lawyer, to the clerk of court.

The judge, not knowing of the deal, proceeded to rule on the evidence and convicted the accused. (4%)

(A) Malowas charged with violation of Section 3(b), Republic Act (R.A.) No. 3019, which prohibits a
public officer from directly or indirectly requesting or receiving any gift, present, share percentage or
benefit wherein the public officer, in his official capacity, has to intervene under the law. He was later
charged also with indirect bribery under the Revised Penal Code. Malo claims he can no longer be
charged under the Revised Penal Code for the same act under R.A. 3019. Is he correct?

(B) Malowas charged with estafa under Article 315 because he misrepresented that he had influence,
when he actually had none. Is the charge correct?

XV.

Which of the following is not a privilege mitigating circumstance? (1%)

(A) 17-year-old offender

(B) 14-year-old offender

(C) incomplete self-defense

(D) incomplete defense of a relative

XVI.

Mr. Benjie is the owner of a hardware store specializing in the sale of plumbing materials. On February
1, 2014, Mr. Ed, a friend and regular customer of Mr. Benjie, visited the hardware store and purchased
several plumbing materials in the total amount of P5 million. Mr. Benjiereadily accepted Mr. Ed’s
payment of three (3) postdated checks in the amount of P1 million Pesos each in view of the assurance
of Mr. Ed that the checks will be honored upon presentment for payment. Mr. Benjie, as a consequence,
immediately delivered the materials to the house of Mr. Ed. The following day, Mr. Ed went back to Mr.
Benjie to tender another two (2) postdated checks in the amount of P1 million each to complete the
payment, with the same assurance that the checks will be honored upon presentment for payment.
When the checks were presented for payment, all were dishonored for insufficiency of funds and
corresponding notices of dishonor were sent and received by Mr. Ed. One month after receipt of the
notices of dishonor, Mr. Ed failed to make good the checks. Thereafter, Mr. Benjie filed before the public
prosecutor’s office a complaint against Mr. Ed, although no demand letter was earlier sent to Mr. Ed.

During the preliminary investigation, Mr. Benjie accepted several amounts from Mr. Edas partial
payments. The wife of Mr. Benjie protested and insisted that the complaint should continue despite the
partial payments. On the other hand, Mr. Ed counters that no demand letter was earlier sent to him,
that the obligation is merely civil in character and that novation took place when Mr. Benjie accepted
the partial payments. Discuss the criminal liability, if any, of Mr. Ed. (6%)

XVII.

Pierceis a French diplomat stationed in the Philippines. While on EDSA and driving with an expired
license, he hit a pedestrian who was crossing illegally. The pedestrian died. Pierce was charged with
reckless imprudence resulting in homicide. In his defense, he claimed diplomatic immunity. Is Pierce
correct? (3%)

XVIII.

Manolo, an avid art collector, was invited to Tonio’s house. There, Manolo noticed a nice painting that
exactly looked like the painting which he reported was stolen from him some years back. Manolo
confronted Tonio about the painting, but Tonio denied any knowledge, claiming that he bought the
painting legitimately from a friend. Manolo later proved to Toniothat the painting was indeed the stolen
painting. (4%)

(A) What crime/s, if any, may Tonio be charged with?

(B) Manolo decided to take matters into his own hands and, one night, broke into Tonio’s house by
destroying the wall and taking the painting. What, if any, would be the liability of Manolo?
XIX.

Clepto went alone to a high-end busy shop and decided to take one of the smaller purses without paying
for it. Overcame by conscience, she decided to leave her own purse in place of the one she took. Her act
was discovered and Cleptowas charged with theft. She claimed that there was no theft, as the store
suffered no injuryor prejudice because she had left a purse in place of the one she took. Comment on
her defense. (3%)

XX.

Which of the following is not a qualifying aggravating circumstance? (1%)

(A) treachery

(B) evident premeditation

(C) dwelling

(D) cruelty

XXI.

During trial for theft in 2014, the prosecution managed to show that accused AA has also been convicted
by final judgment for robbery in 2003, but she eluded capture. A subsequent verification showed that
AA had several convictions, to wit:

(1.) In 1998, she was convicted of estafa;

(2.) In 2002, she was convicted of theft;

(3.) In 2004, she was convicted of frustrated homicide;

The judge trying the theft case in 2014 is about to convict AA. What circumstances affecting the liability
or penalty may the judge appreciate against AA? (4%)

XXII.

Mr. Red was drinking with his buddies, Mr. White and Mr. Blue when he saw Mr. Green with his former
girlfriend, Ms. Yellow. Already drunk, Mr. Red declared in a loud voice that if he could not have Ms.
Yellow, no one can. He then proceeded to the men’s room but told Mr. White and Mr. Blue to take care
of Mr. Green. Mr. Blue and Mr. White asked Mr. Red what he meant but Mr. Red simply said, "You
already know what I want," and then left. Mr. Blue and Mr. White proceeded to kill Mr. Green and hurt
Ms. Yellow. (4%)

(A) What, if any, are the respective liabilities of Mr. Red, Mr. White and Mr. Blue for the death of Mr.
Green?

(B) What, if any, are the respective liabilities of Mr. Red, Mr. White and Mr. Blue for the injuries of Ms.
Yellow?

XXIII.

Carla, four (4) years old, was kidnapped by Enrique, the tricycle driver engaged by her parents to drive
her to and from school every day. Enrique wrote a ransom note demanding that Carla’s parents pay him
P500,000.00 ransom in exchange for her liberty. However, before the ransom note could be received by
Carla’s parents, Enrique’s hideout was discovered by the police. Carla was rescued while Enrique was
arrested. The prosecutor considered that the ransom note was never received by Carla’s parents and
filed a case of "Impossible crime to commit kidnapping" against Enrique. Is the prosecutor correct? If he
is not correct, can he instead file a case of grave coercion? (4%)

XXIV.

A, a young boy aged sixteen (16) at the time of the commission of the crime, was convicted when he was
already seventeen (17) years of age for violation of Section 11 of R.A. 9165 or Illegal Possession of
Dangerous Drugs for which the imposable penalty is life imprisonment and a fine. Section 98 of the
same law provides that if the penalty imposed is life imprisonment to death on minor offenders, the
penalty shall be reclusion perpetuato death. Under R.A. 9344, a minor offender is entitled to a privilege
mitigating circumstance. (8%)

(A) May the privilege mitigating circumstance of minority be appreciated considering that the penalty
imposed by law is life imprisonment and fine?

(B) Is the Indeterminate Sentence Law applicable considering that life imprisonment has no fixed
duration and the Dangerous Drugs Law is malum prohibitum?

(C) If the penalty imposed is more than six (6) years and a notice of appeal was filed by Aand given due
course by the court, may A still file an application for probation?

(D) If probation is not allowed by the court, how will Aserve his sentence?

XXV.

Mr. Gray opened a savings account with Bank A with an initial deposit of P50,000.00. A few days later,
he deposited a check for P200,000.00 drawn from Bank B and endorsed by Mr. White. Ten days later,
Mr. Gray withdrew the P200,000.00 from his account. Mr. White later complained to Bank B when the
amount of P200,000.00 was later debited to his account, as he did not issue the check and his signature
thereon was forged. Mr. Gray subsequently deposited another check signed by Mr. Whitefor
P200,000.00, which amount he later withdrew. Upon receiving the amount, Mr. Gray was arrested by
agents of the National Bureau of Investigation (NBI).

Mr. Gray was convicted of estafa and attempted estafa, both through the use of commercial documents.
(4%)

(A) Mr. Gray claims as defense that, except for Mr. White’s claim of forgery, there was no evidence
showing that he was the author of the forgery and Mr. White did not suffer any injuries as to the second
check (attempted estafa). Rule on the defense of Mr. Gray.

(B) Mr. Gray claims that he was entrapped illegally because there was no showing that the second check
was a forgery and, therefore, his withdrawal based on the second check was a legal act. Is Mr. Gray
correct?
XXVI.

Awas bitten by a dog owned by a neighbor. The following day, angered by the incident, Atook the dog
without the knowledge of the owner, had it butchered and cooked the meat. Hethen invited his friends
to partake of the dish with his friends who knew fully well that the dog was taken without the
knowledge of the owner. What are the friends of Aliable for? (1%)

(A) Theft

(B) Malicious mischief

(C) Accessories

(D) Obstruction of Justice

 2014 BAR EXAMINATIONS

COMMERCIAL LAW

I.

Carlo and Bianca met in the La Boracay festivities. Immediately, they fell in love with each other and got
married soon after. They have been cohabiting blissfully as husband and wife, but they did not have any
offspring. As the years passed by, Carlo decided to take out an insurance on Bianca’slife for
P1,000,000.00 with him (Carlo) as sole beneficiary, given that he did not have a steady source of income
and he always depended on Bianca both emotionally and financially. During the term of the insurance,
Bianca died of what appeared to bea mysterious cause so that Carlo immediately requested for an
autopsy tobe conducted. It was established that Bianca died of a natural cause. More than that, it was
also established that Bianca was a transgender all along – a fact unknown to Carlo. Can Carlo claim the
insurance benefit? (5%)

II.

Bong bought 300 bags of rice from Ben for P300,000.00. As payment, Bong indorsed to Bena Bank of the
Philippine Islands (BPI) check issued by Baby in the amount of P300,000.00. Upon presentment for
payment, the BPI check was dishonored because Baby’s account from which it was drawn has been
closed. To replace the dishonored check, Bong indorsed a crossed Development Bank of the Philippines
(DBP) check issued also by Baby for P300,000.00. Again, the check was dishonored because of
insufficient funds. Ben sued Bong and Baby on the dishonored BPI check. Bong interposed the defense
that the BPI check was discharged by novation when Ben accepted the crossed DBP check as
replacement for the BPI check. Bong cited Section 119 of the Negotiable Instruments Law which
provides that a negotiable instrument is discharged "by any other act which will discharge a simple
contractfor the payment of money." Is Bong correct? (4%)

III.

Under the Financial Rehabilitation and Insolvency Act (FRIA), the filing of a petition for voluntary
rehabilitation must be approved by: (1%)
(A) a majority vote of the Board of Directors and authorized by the vote of the stockholders representing
at least a majority of the outstanding capital stock

(B) a majority vote of the Board of Directors and authorized by the vote of the stockholders representing
at least two-thirds of the outstanding capital stock

(C) two-thirds vote of the Board of Directors and authorized by the vote of the stockholders
representing at least a majority of the outstanding capital stock

(D) two-thirds vote of the Board of Directors and authorized by the vote of the stockholders
representing at least two-thirds of the outstanding capital stock

IV.

DC is a unit owner of Medici Condominium located in Pasig City. On September 7, 2011, Medici
Condominium Corp. (Medici) demanded from DC payment for alleged unpaid association dues and
assessments amounting to P195,000.00. DC disputed the claim, saying that he paid all dues as shown by
the fact that he was previously elected as Director and President of Medici. Medici, on the other hand,
claimed that DC’s obligation was a carry-over of his obligations to the condominium developer, Medici
Construction Corporation. Consequently, DCwas prevented from exercising his right to vote and be
voted for during the 2011 election of Medici’s Board of Directors. This prompted DC to file a complaint
for damages before the Special Commercial Court of Pasig City. Medici filed a motion to dismiss on the
ground that the court has no jurisdiction over the intra-corporate dispute which the Housing and Land
Use Regulatory Board (HLURB) has exclusive jurisdiction over. Is Medici correct? (4%)

V.

A corporation organized under the Corporation Code commences to have corporate existence and
juridical personality and is deemed incorporated: (1%)

(A) from the date the application for incorporation is filed with the Securities and Exchange Commission
(SEC)

(B) from the date the SEC issues a certificate of incorporation under its official seal
(C) thirty (30) days after the date the application for incorporation is filed with the SEC

(D) thirty (30) days after the datethe SEC issues a certificate of incorporation under its official seal

VI.

On May 26, 2014, Jess insured with Jack Insurance (Jack) his 2014 Toyota Corolla sedan under a
comprehensive motor vehicle insurance policy for one year. On July 1, 2014, Jess’ car was unlawfully
taken. Hence, he immediately reported the theft to the Traffic Management Command (TMC) of the
Philippine National Police (PNP), which made Jess accomplish a complaint sheet as part of its procedure.
In the complaint sheet, Jess alleged that a certain Ric Silat(Silat) took possession of the subject vehicle to
add accessories and improvements thereon. However, Silat failed to return the subject vehicle within
the agreed 3-day period. As a result, Jess notified Jack of his claim for reimbursement of the value of the
lost vehicle under the insurance policy. Jack refused to pay claiming that there is no theft as Jess gave
Silat lawful possession of the car. Is Jack correct? (4%)

VII.

Jinggy went to Kluwer University(KU) in Germany for his doctorate degree (Ph.D.). He completed his
degree with the highest honors in the shortest time. When he came back, he decided to set-up his own
graduate school in his hometown in Zamboanga. After seeking free legal advice from his high-flying
lawyer-friends, he learned that the Philippines follows the territoriality principle in trademark law, i.e.,
trademark rights are acquired through valid registration in accordance with the law. Forth with, Jinggy
named his school the Kluwer Graduate School of Business of Mindanao and immediately secured
registration with the Bureau of Trademarks. KU did not like the unauthorized use of its name by its top
alumnus no less. KU sought your help. What advice can you give KU? (4%)

VIII.

As a rule, an insurance contract is consensual and voluntary. The exception is in the case of: (1%)

(A) Inland Marine Insurance

(B) Industrial Life Insurance

(C) Motor Vehicle Liability Insurance

(D) Life Insurance

IX.

On February 21, 2013, Barrack entered into a contract of insurance with Matino Insurance Company
(Matino) involving a motor vehicle. The policy obligates Matino to pay Barrack the amount of Six
Hundred Thousand Pesos (P600,000.00) in case of loss or damage to said vehicle during the period
covered, which is from February 26, 2013 to February 26, 2014.

On April 16, 2013, at about 9:00 a.m., Barrack instructed his driver, JJ, to bring the motor vehicle to a
near by auto shop for tune-up. However, JJno longer returned and despite diligent efforts to locate the
said vehicle, the efforts proved futile. Resultantly, Barrack promptly notified Matino of the said loss and
demanded payment of the insurance proceeds of P600,000.00.

In a letter dated July 5, 2013. Matino denied the claim, reasoning as stated in the contract that "the
company shall not be liable for any malicious damage caused by the insured, any member of his family
or by a person in the insured’s service. Is Matino correct in denying the claim? (4%)

X.

A person is said to have an insurable interest in the subject matter insured where he has a relation or
connection with, or concern in it that he will derive pecuniary benefit or advantage from its
preservation. Which among the following subject matters is not considered insurable? (1%)

(A) A partner in a firm on its future profits

(B) A general creditor on debtor’s property

(C) A judgment creditor on debtor’s property

(D) A mortgage creditor on debtor’s mortgaged property

XI.

PA Assurance (PA) was incorporated in 1980 toengage in the sale of pre-need educational plans. It sold
open-ended educational plans which guaranteed the payment of tuition and other fees to planholders
irrespective of the cost at the time of availment. Italso engaged in the sale of fixed value plans which
guaranteed the payment of a pre-determined amount to planholders. In 1982, PAwas among the
country’s top corporations. However, it subsequently suffered financial difficulties.

On September 8, 2005, PA filed a Petition for Corporate Rehabilitation before the Regional Trial Court
(RTC) of Makati City. On October 17, 2005, ten (10) plan holders filed an Opposition and Motion to
Exclude Planholders from Stay Order on the ground that planholders are not creditors as they
(planholders) have a trust relationship with PA. Are the planholders correct? (4%)

XII.

To constitute a quorum for the transaction of corporate business, only a majority of the number of
Board of Directors is required: (1%)

(A) as fixed by the corporate by-laws

(B) as fixed in the articles of incorporation

(C) actually serving in the board

(D) actually serving in the board but constituting a quorum

XIII.
Pursuant to its By-Laws, Soei Corporation’s Board of Directors created an Executive Committee to
manage the affairs of the corporation in between board meetings. The Board of Directors appointed the
following members of the Executive Committee: the President, Sarah L; the Vice President, Jane L; and, a
third member from the board, Juan Riles. On December 1, 2013, the Executive Committee, with Sarah L
and Jane L present, met and decided on the following matters:

1. Purchase of a delivery van for use in the corporation’s retail business;

2. Declaration and approval of the 13th month bonus;

3. Purchase of an office condominium unit at the Fort; and

4. Declaration of P10.00 per share cash dividend.

Are the actions of the Executive Committee valid? (4%)

XIV.

On September 25, 2013, Danny Marcial (Danny) procured an insurance on his life with a face value of
P5,000,000.00 from RN Insurance Company (RN), with his wife Tina Marcial(Tina) as sole beneficiary. On
the same day, Danny issued an undated check to RN for the full amount of the premium. On October 1,
2013, RN issued the policy covering Danny’s life insurance. On October 5, 2013, Dannymet a tragic
accident and died. Tina claimed the insurance benefit, but RN was quick to deny the claim because at
the time of Danny’s death, the check was not yet encashed and therefore the premium remained
unpaid.

Is RN correct? Will your answer be the same if the check is dated October 15, 2013? (4%)

XV.

A, B, C, D, and Ewere members of the 2003-2004 Board of Directors of FLP Corporation. At the election
for the 2004-2005 Board of Directors, not one of them was elected. They filed in court a derivative suit
on behalf of FLP Corporation against the newly-elected members of the Board of Directors. They
questioned the validity of the election as it was allegedly marred by lack of quorum, and prayed for the
nullification of the said election. The 2004-2005 Board of Directorsmoved to dismiss the complaint
because the derivative suit is not proper. Decide. (4%)

XVI.

In intellectual property cases, fraudulent intent is not an element of the cause of action except in cases
involving: (1%)

(A) trademark infringement

(B) copyright infringement

(C) patent infringement

(D) unfair competition

XVII.

On December 1, 2010, Kore A Corporationshipped from South Korea to LT Corporation in Manila some
300,000 sheets of high-grade special steel. The shipment was insured against all risks by NA
Insurance(NA). The carrying vessel arrived at the Portof Manila on January 10, 2011. When the shipment
was discharged, it was noted that 25,000 sheets were damaged and in bad order. The entire shipment
was turned over to the custody of ATI, the arrastre operator, on January 21, 2011 for storage and
safekeeping, pending its withdrawal by the consignee’s authorized customs broker, RVM.

On January 26 and 29, 2011, the subject shipment was withdrawn by RVM from the custody of ATI. On
January 29, 2011, prior to the withdrawal of the last batch of the shipment, a joint inspection of the
cargo was conducted per the Request for Bad Order Survey (RBO) dated January 28, 2011. The
examination report showed that 30,000 sheets of steel were damaged and in bad order.

NA Insurance paid LT Corporationthe amount of P30,000,000.00 for the 30,000 sheets that were
damaged, as shown in the Subrogation Receipt dated January 13, 2013. Thereafter, NA Insurance
demanded reparation against ATI for the goods damaged in its custody, in the amount of P5,000,00.00.
ATI refused to pay claiming that the claim was already barred by the statute of limitations. ATI alleged
that the Carriage of Goods by Sea Act (COGSA) applies in this case since the goods were shipped from a
foreign port to the Philippines. NA Insurance claims that the COGSA does not apply, since ATIis not a
shipper or carrier. Who is correct? (5%)

XVIII.

Skechers Corporation sued Inter-Pacific for trademark infringement, claiming that Inter-Pacificused
Skechers’ registered "S" logo mark on Inter-Pacific’s shoe products without its consent. Skechers has
registered the trademark "SKECHERS" and the trademark "S" (with an oval design) with the Intellectual
Property Office (IPO).

In its complaint, Skechers points out the following similarities: the color scheme of the blue, white and
gray utilized by Skechers. Even the design and "wave-like" pattern of the mid-sole and outer sole of Inter
Pacific’s shoes are very similar to Skechers’ shoes, if not exact patterns thereof. On the side of Inter-
Pacific’s shoes, near the upper part, appears the stylized "S" placed in the exact location as that of the
stylized "S" the Skechers shoes. On top of the "tongue" of both shoes, appears the stylized "S" in
practically the same location and size.

In its defense, Inter-Pacific claims that under the Holistic Test, the following dissimilarities are present:
the mark "S" found in Strong shoes is not enclosed in an "oval design"; the word "Strong" is
conspicuously placed at the backside and insoles; the hang tags labels attached to the shoes bear the
word "Strong" for Inter-Pacific and "Skechers U.S.A." for Skechers; and, Strong shoes are modestly
priced compared to the costs of Skechers shoes.

Under the foregoing circumstances, which is the proper test to be applied – Holistic or Dominancy Test?
Decide. (4%)

XIX.

Guetze and his wife have three (3) children: Neymar, 25, who is now based in Rio de Janeiro, Brazil;
Muelter, 23, who has migrated to Munich, Germany; and James, 21, who resides in Bogota, Colombia.
Neymar and Muelter have since renounced their Philippine citizenship in favor of their country of
residence. Nearing 70 years old, Guetze decided to incorporate his business in Binondo, Manila. He
asked his wife and three (3) children to act as incorporators with one (1) share of stock each, while he
owned 999,996 shares of the 1,000,000 shares of the capital stock. (6%)
(A) Assuming all other requirements are met, should the Securities and Exchange Commission (SEC)
accept or reject the Articles of Incorporation? Why?

(B) Being the control freak and micro-manager that he is, Guetze asked you – his astute legal adviser – if
he can serve as Chairman of the Board of Directors, as President, and as General Manager of the
corporation, all at the same time. Please advise Guetze.

(C) Assuming the corporation has beenproperly registered, may the Articles of Incorporation now
beamended to reduce the number of directors to two (2) – Guetze and his wife– to reflect the real
owners of the shares of stock?

XX.

On May 13, 1996, PAM, Inc. obtained a P15,000,000.00 fire insurance policy from Ilocano Insurance
covering its machineries and equipment effective for one (1) yearor until May 14, 1997. The policy
expressly stated that the insured properties were located at "Sanyo Precision Phils. Building, Phase III,
Lots 4 and 6, Block 15, PEZA, Rosario, Cavite." Before its expiration, the policy was renewed on "as is"
basis for another year or until May 13, 1998. The subject properties were later transferred to Pace
Factory also in PEZA. On October 12, 1997, during the effectivity of the renewed policy, a fire broke out
at the Pace Factory which totally burned the insured properties.

The policy forbade the removal of the insured properties unless sanctioned by Ilocano. Condition 9(c) of
the policy provides that "the insurance ceases to attach as regards the property affected unless the
insured, before the occurrence of any loss or damage, obtains the sanction of the company signified by
endorsement upon the policy x x x (c) if the property insured is removed to any building or place other
than in that which is herein stated to be insured." PAM claims that it has substantially complied with
notifying Ilocano through its sister company, the RBC, which, in fact, referred PAM to Ilocano for the
insurance coverage. Is Ilocano liable under the policy? (4%)

XXI.

On July 3, 1993, Delia Sotero (Sotero) took out a life insurance policy from Ilocos Bankers Life Insurance
Corporation (Ilocos Life) designating Creencia Aban(Aban), her niece, as her beneficiary. Ilocos Life
issued Policy No. 747, with a face value of P100,000.00, in Sotero’s favor on August 30, 1993, after the
requisite medical examination and payment of the premium.
On April 10, 1996, Sotero died. Aban filed a claim for the insurance proceeds on July 9, 1996. Ilocos Life
conducted an investigation into the claim and came out withthe following findings:

1. Soterodid not personally apply for insurance coverage, as she was illiterate.

2. Soterowas sickly since 1990.

3. Soterodid not have the financial capability to pay the premium on the policy.

4. Soterodid not sign the application for insurance.

5. Aban was the one who filed the insurance application and designated herself as the beneficiary.

For the above reasons and claiming fraud, Ilocos Life denied Aban’s claim on April 16, 1997, but
refunded the premium paid on the policy. (6%)

(A) May Sotero validly designate her niece as beneficiary?

(B) May the incontestability period set in even in cases of fraud as alleged in this case?

(C) Is Aban entitled to claim the proceeds under the policy?

XXII.

Paul George Pua (Pua) filed a complaint for a sum of money against the spouses Benito and Caroline
James (Spouses James). In the complaint, Pua prayed that the defendants pay Pua the amount of
P8,500,000.00, covered by a check. Pua asserts that defendants owed him a sum of money way back in
1988 for which the Spouses James gave him several checks. These checks, however, had all been
dishonored and Pua has not been paid the amount of the loan plus the agreed interest. In 1996, the
Spouses James approached Pua to get the computation of their liability including the 2% compounded
interest. After bargaining to lower the amount of their liability, the Spouses James gave Puaa postdated
check bearing the discounted amount of P8,500,000.00. Like the 1988 checks, the drawee bank likewise
dishonored this check. To prove his allegations, Pua submitted the original copies of the 17 checks
issued by Caroline in 1988 and the check issued in 1996, Manila trust Check No. 750. The Spouses James,
on the other hand, completely denied the existence of the debt asserting that they had never
approached Pua to borrow money in 1988 or in 1996. They assert, instead, that Pua is simply acting at
the instance of his sister, Lilian, to file a false charge against them using a check left to fund a gambling
business previously operated by Lilian and Caroline. Decide. (5%)

XXIII.

What vote is needed to consider every decision to be a valid corporate act? (1%)

(A) a majority of the directors present at the meeting

(B) two-thirds of the directors present at the meeting

(C) a majority of the directors present at the meeting at which there is a quorum

(D) two-thirds of the directors present at the meeting at which there is a quorum

XXIV.

A criminal complaint for violation of B.P. 22 was filed by Foton Motors (Foton), an entity engaged in the
business of car dealership, against Pura Felipe (Pura) with the Office of the City Prosecutor of Quezon
City. The Office found probable cause to indict Pura and filed an information before the Metropolitan
Trial Court (MeTC) of Quezon City, for her issuance of a postdated check in the amount of P1,020,000.00
which was subsequently dishonored upon presentment due to "Stop Payment."

Pura issued the check because her son, Freddie, attracted by a huge discount of P220,000.00, purchased
a Foton Blizzard 4x2 from Foton. The term of the transaction was Cash-on-Delivery and no
downpayment was required. The car was delivered on May 14, 1997, but Freddie failed to pay upon
delivery. Despite non-payment, Freddie took possession of the vehicle.
Pura was eventually acquitted of the charge of violating B.P. 22 but was found civilly liable for the
amount of the check plus legal interest. Pura appealed the decision as regards the civil liability, claiming
that there was no privity of contract between Foton and Pura. No civil liability could be adjudged against
her because of her acquittal from the criminal charge. It was Freddie who was civilly liable to Foton, Pura
claimed. Pura added that she could not be an accommodation party either because she only came in
after Freddie failed to pay the purchase price, or six (6) months after the execution of the contract
between Foton and Freddie. Her liability was limited to her act of issuing a worthless check, but by her
acquittal in the criminal charge, there was no more basis for her to be held civilly liable to Foton. Pura’s
act of issuing the subject check did not, by itself, assume the obligation of Freddie to Foton or
automatically make her a party to the contract. Is Pura liable? (5%)

XXV.

In an action for collection of a sum of money, the Regional Trial Court (RTC) of Makati City issued a
decision finding D-Securities, Inc. liable to Rehouse Corporation for P10,000,000.00. Subsequently, the
writ of execution was issued but returned unsatisfied because D-Securities had no more assets to satisfy
the judgment. Rehouse moved for an Alias Writ of Execution against Fairfield Bank (FB), the parent
company of D-Securities. FB opposed the motion on the grounds that it is a separate entity and that it
was never made a party to the case. The RTC granted the motion and issued the Alias Writ of Execution.
In its Resolution, the RTC relied on the following facts: 499,995 out of the 500,000 outstanding shares of
stocks of D-Securities are owned by FB; FB had actual knowledge of the subject matter of litigation as
the lawyers who represented D-Securities are also the lawyers of FB. As an alter ego, there is no need
for a finding of fraud or illegality before the doctrine of piercing the veil of corporate fiction can be
applied. The RTC ratiocinated that being one and the same entity in the eyes of the law, the service of
summons upon D-Securities has bestowed jurisdiction over both the parent and wholly-owned
subsidiary. Is the RTC correct? (4%)

XXVI.

DMP Corporation (DMP) obtained a loan of P20 million from National Bank (NB) secured by a real estate
mortgage over a 63,380-square-meter land situated in Cabanatuan City. Due to the Asian Economic
Crisis, DMP experienced liquidity problems disenabling it from paying its loan on time. For that reason,
NB sought the extra judicial foreclosure of the said mortgage by filing a petition for sale on June 30,
2003. On September 4, 2003, the mortgaged property was sold at public auction, which was eventually
awarded to NBas the highest bidder. That same day, the Sheriff executed a Certificate of Sale in favor of
NB.

On October 21, 2003, DMP filed a Petition for Rehabilitation before the Regional Trial Court (RTC).
Pursuant to this, a Stay Order was issued by the RTC on October 27, 2003.
On the other hand, NB caused the recording of the Sheriff’s Certificate of Sale on December 3, 2003 with
the Register of Deeds of Cabanatuan City. NB executed an Affidavit of Consolidation of Ownership and
had the same annotated on the title of DMP. Consequently, the Register of Deeds cancelled DMP’s title
and issued a new title in the name of NB on December 10, 2003.

NB also filed on March 17, 2004 an Ex-Parte Petition for Issuance of Writ of Possession before the RTC of
Cabanatuan City. After hearing, the RTC issued on September 6, 2004 an Order directing the Issuance of
the Writ of Possession, which was issued on October 4, 2004.

DMP claims that all subsequent actions pertaining to the Cabanatuan property should have been held in
abeyance after the Stay Order was issued by the rehabilitation court. Is DMP correct? (4%)

XXVII.

ELP Insurance, Inc. issued Marine Policy No. 888 in favor of FCL Corp. to insure the shipment of 132
bundles of electric copper cathodes against all risks. Subsequently, the cargoes were shipped on board
the vessel "M/V Menchu" from Leyte to Pier 10, North Harbor, Manila.

Upon arrival, FCL Corp. engaged the services of CGM, Inc. for the release and withdrawal of the cargoes
from the pier and the subsequent delivery to its warehouses/plants in Valenzuela City. The goods were
loaded on board twelve (12) trucks owned by CGM, Inc., driven by its employed drivers and
accompanied by its employed truck helpers. Of the twelve (12) trucks en routeto Valenzuela City, only
eleven (11) reached the destination. One (1) truck, loaded with eleven (11) bundles of copper cathodes,
failed to deliver its cargo.

Because of this incident, FCL Corp. filed with ELP Insurance, Inc. a claim for insurance indemnity in the
amount of P1,500,000.00. After the requisite investigation and adjustment, ELP Insurance, Inc. paid FCL
Corp. the amount of P1,350,000.00 as insurance indemnity.

ELP Insurance, Inc., thereafter, filed a complaint for damages against CGM, Inc. before the Regional Trial
Court (RTC), seeking reimbursement of the amount it had paid to FCL Corp. for the loss of the subject
cargo. CGM, Inc. denied the claim on the basis that it is not privy to the contract entered into by and
between FCL Corp. and ELP Insurance, Inc., and hence, it is not liable therefor. If you are the judge, how
will you decide the case? (4%)
XXVIII.

Which of the following instruments is negotiable if all the other requirements of negotiability are met?
(1%)

(A) A promissory note with promise to pay out of the U.S. Dollar account of the maker in XYZ Bank

(B) A promissory note which designates the U.S. Dollar currency in which payment is to be made

(C) A promissory note which contains in addition a promise to paint the portrait of the bearer

(D) A promissory note made payable to the order of Jose Cruz or Josefa Cruz

XXIX.

KKis from Bangkok, Thailand. She studies medicine in the Pontifical University of Santo Tomas (UST). She
learned that the same foreign books prescribed in UST are 40-50% cheaper in Bangkok. So she ordered
50 copies of each book for herself and her classmates and sold the books at 20% less than the price in
the Philippines. XX, the exclusive licensed publisher of the books in the Philippines, sued KK for copyright
infringement. Decide. (4%)

---oo0ooo---
 2014 BAR EXAMINATIONS

CIVIL LAW

I.

Ariz and Paz were officemates at Perlas ng Silangan Bank (PSB). They fell in love with each other and had
a civil and church wedding. Meanwhile, Paz rapidly climbed the corporate ladder of PSB and eventually
became its Vice President, while Ariz remained one of its bank supervisors, although he was short of 12
units to finish his Masters of Business Administration (MBA) degree.

Ariz became envious of the success of his wife. He started to drink alcohol until he became a drunkard.
He preferred to join his "barkadas"; became a wifebeater; would hurt his children without any reason;
and failed to contribute to the needs of the family. Despite rehabilitation and consultation with a
psychiatrist, his ways did not change.

After 19 years of marriage, Paz, a devout Catholic, decided to have their marriage annulled by the
church. Through the testimony of Paz and a psychiatrist, it was found that Ariz was a spoiled brat in his
youth and was sometimes involved in brawls. In his teens, he was once referred to a psychiatrist for t
reatment due to his violent tendencies. In due time, the National Appellate Matrimonial Tribunal
(NAMT) annulled the union of Ariz and Paz due to the failure of Ariz to perform and fulfill his duties as a
husband and as a father to their children. The NAMT concluded that it is for the best interest of Paz, Ariz
and their children to have the marriage annulled.

In view of the NAMT decision, Paz decided to file a Petition for Declaration of Nullity of Marriage of their
civil wedding before the Regional Trial Court (RTC) of Makati City using the NAMT decision and the same
evidence adduced in the church annulment proceedings as basis.

If you are the judge, will you grant the petition? Explain. (5%)

II.

Crispin died testate and was survived by Alex and Josine, his children from his first wife; Rene and Ruby,
his children from his second wife; and Allan, Bea, and Cheska, his children from his third wife.

One important provision in his will reads as follows:

"Ang lupa at bahay sa Lungsod ng Maynila ay ililipat at ilalagay sa pangalan nila Alex at Rene hindi bilang
pamana ko sa kanila kundi upang pamahalaan at pangalagaan lamang nila at nang ang sinuman sa aking
mga anak, sampu ng aking mga apo at kaapuapuhan ko sa habang panahon, ay may tutuluyan kung
magnanais na mag-aral sa Maynila o sa kalapit na mga lungsod."

Is the provision valid? (4%)

III.

The Roman Catholic Church accepted a donation of a real property located in Lipa City. A deed of
donation was executed, signed by the donor, Don Mariano, and the donee, the Church, as represented
by Fr. Damian. Before the deed could be notarized, Don Mariano died. Is the donation valid? (4%)

IV.

Nante, a registered owner of a parcel of land in Quezon City, sold the property to Monica under a deed
of sale which reads as follows:

"That for and in consideration of the sum of P500,000.00, value to be paid and delivered to me, and
receipt of which shall be acknowledged by me to the full satisfaction of Monica, referred to as Vendee, I
hereby sell, transfer, cede, convey, and assign, as by these presents, I do have sold, transferred, ceded,
conveyed and assigned a parcel of land covered by TCT No. 2468 in favor of the Vendee."

After delivery of the initial payment of P100,000.00, Monica immediately took possession of the
property. Five (5) months after, Monica failed to pay the remaining balance of the purchase price. Nante
filed an action for the recovery of possession of the property. Nante alleged that the agreement was one
to sell,which was not consummated as the full contract price was not paid. Is the contention of Nante
tenable? Why? (4%)

V.

What is the effect of preterition ? (1%)

 (A) It annuls the devise and legacy

(B) It annuls the institution of heir

(C) It reduces the devise and legacy

(D) It partially annuls the institution of heir

VI.

Miko and Dinah started to live together as husband and wife without the benefit of marriage in 1984.
Ten (10) years after, they separated. In 1996, they decided to live together again, and in 1998, they got
married.

On February 17, 2001, Dinah filed a complaint for declaration of nullity of her marriage with Miko on the
ground of psychological incapacity under Article 36 of the Family Code. The court rendered the following
decision:

"1. Declaring the marriage null and void;

2. Dissolving the regime of absolute community of property; and

3. Declaring that a decree of absolute nullity of marriage shall only be issued after liquidation, partition
and distribution of the parties’ properties under Article 147 of the Family Code."

Dinah filed a motion for partial reconsideration questioning the portion of the decision on the issuance
of a decree of nullity of marriage only after the liquidation, partition and distribution of properties under
Article 147 of the Code.

If you are the judge, how will you decide petitioner’s motion for partial reconsideration? Why? (4%)
 VII.

Due to the continuous heavy rainfall, the major streets in Manila became flooded. This compelled Cris to
check-in at Square One Hotel. As soon as Crisgot off from his Toyota Altis, the Hotel’s parking attendant
got the key of his car and gave him a valet parking customer’s claim stub. The attendant parked his car
at the basement of the hotel. Early in the morning, Cris was informed by the hotel manager that his car
was carnapped. (4%)

(A) What contract, if any, was perfected between Cris and the Hotel when Cris surrendered the key of
his car to the Hotel’s parking attendant?

(B) What is the liability, if any, of the Hotel for the loss of Cris’ car?

VIII.

Tess leased her 1,500 sq. m. lot in Antipolo City to Ruth for a period of three (3) years, from January
2010 to February 2013.

On March 19, 2011, Tess sent a letter to Ruth, part of which reads as follows:

"I am offering you to buy the property you are presently leasing at P5,000.00 per sq. m. or for a total of
P7,500,000.00. You can pay the contract price by installment for two (2) years without interest.

I will give you a period of one (1) year from receipt of this letter to decide whether you will buy the
property."

After the expiration of the lease contract, Tess sold the property to her niece for a total consideration of
P4 million.

Ruth filed a complaint for the annulment of the sale, reconveyance and damages against Tess and her
niece. Ruth alleged that the sale of the leased property violated her right to buy under the principle of
right of first refusal.
 Is the allegation of Ruth tenable? (4%)

IX.

Spouses Macario and Bonifacia Dakila entered into a contract to sell with Honorio Cruz over a parcel of
industrial land in Valenzuela, Bulacan for a price of Three Million Five Hundred Thousand Pesos
(P3,500,000.00). The spouses would give a downpayment of Five Hundred Thousand Pesos
(P500,000.00) upon the signing of the contract, while the balance would be paid for the next three (3)
consecutive months in the amount of One Million Pesos (P1,000,000.00) per month. The spouses paid
the first two (2) installments but not the last installment. After one (1) year, the spouses offered to pay
the unpaid balance which Honorio refused to accept.

The spouses filed a complaint for specific performance against Honorio invoking the application of the
Maceda Law. If you are the judge, how will you decide the case? (4%)

X.

Dorotea leased portions of her 2,000 sq. m. lot to Monet, Kathy, Celia, and Ruth for five (5) years. Two
(2) years before the expiration of the lease contract, Dorotea sold the property to PM Realty and
Development Corporation. The following month, Dorotea and PM Realty stopped accepting rental
payments from all the lessees because they wanted to terminate the lease contracts.

Due to the refusal of Dorotea to accept rental payments, the lessees , Ruth, et al., filed a complaint for
consignation of the rentals before the Regional Trial Court (RTC) of Manila without notifying Dorotea.

Is the consignation valid? (4%)

XI.

An easement that can be acquired by prescription: (1%)

(A) Right of way

 (B) Watering of an animal

(C) Lateral and subjacent support

(D) Light and view

XII.

J.C. Construction (J.C.) bought steel bars from Matibay Steel Industries (MSI) which is owned by Buddy
Batungbacal. J.C. failed to pay the purchased materials worth P500,000.00 on due date. J.C. persuaded
its client Amoroso with whom it had receivables to pay its obligation to MSI. Amoroso agreed and paid
MSI the amount of P50,000.00. After two (2) other payments, Amoroso stopped making further
payments.

Buddy filed a complaint for collection of the balance of the obligation and damages against J.C. J.C.
denied any liability claiming that its obligation was extinguished by reason of novation which took place
when MSI accepted partial payments from Amoroso on its behalf.

Was the obligation of J.C. Construction to MSI extinguished by novation? Why? (4%)

XIII.

Esteban and Martha had four (4) children: Rolando, Jun, Mark, and Hector. Rolando had a daughter,
Edith, while Mark had a son, Philip. After the death of Esteban and Martha, their three (3) parcels of
land were adjudicated to Jun. After the death of Jun, the properties passed to his surviving spouse Anita,
and son Cesar. When Anita died, her share went to her son Cesar. Ten (10) years after, Cesar died
intestate without any issue. Peachy, Anita’s sister, adjudicated to herself the properties as the only
surviving heir of Anita and Cesar. Edith and Philip would like to recover the properties claiming that they
should have been reserved by Peachy in their behalf and must now revert back to them.

Is the contention of Edith and Philip valid? (4%)

 XIV.

A pedestrian, who was four (4) months pregnant, was hit by a bus driver while crossing the street.
Although the pedestrian survived, the fetus inside her womb was aborted. Can the pedestrian recover
damages on account of the death of the fetus? (1%)

(A) Yes, because of Article 2206 of the Civil Code which allows the surviving heirs to demand damages
for mental anguish by reason of the death of the deceased.

(B) Yes, for as long as the pedestrian can prove that she was not at fault and the bus driver was the one
negligent.

(C) No, because a fetus is not a natural person.

(D) No, if the fetus did not comply with the requirements under Article 41 of the Civil Code.

XV.

Mr. Bong owns several properties in Pasig City. He decided to build a condominium named Flores de
Manila in one of his lots. To fund the project, he obtained a loan from the National Bank (NB) secured by
a real estate mortgage over the adjoining property which he also owned.

During construction, he built three (3) pumps on the mortgaged property to supply water to the
condominium. After one (1) year, the project was completed and the condominium was turned over to
the buyers. However, Mr. Bong failed to pay his loan obligation to NB. Thus, NB foreclosed the
mortgaged property where the pumps were installed. During the sale on public auction of the
mortgaged property, Mr. Simon won in the bidding. When Mr. Simon attempted to take possession of
the property, the condominium owners, who in the meantime constituted themselves into Flores de
Manila Inc. (FMI), claimed that they have earlier filed a case for the declaration of the existence of an
easement before the Regional Trial Court (RTC) of Pasig City and prayed that the easement be
annotated in the title of the property foreclosed by NB. FMI further claimed that when Mr. Bong
installed the pumps in his adjoining property, a voluntary easement was constituted in favor of FMI.

Will the action prosper? (4%)

 XVI.

A congregation for religious women, by way of commodatum, is using the real property owned and
registered in the name of Spouses Manuel as a retreat house.

Maria, a helper of the congregation discovered a chest in the backyard. When she opened the chest, it
contained several pieces of jewelry and money. (4%)

(A) Can the chest containing the pieces of jewelry and money be considered as hidden treasure?

(B) Who has the right to claim ownership of it?

XVII.

On March 30, 2000, Mariano died intestate and was survived by his wife, Leonora, and children, Danilo
and Carlito. One of the properties he left was a piece of land in Alabang where he built his residential
house.

After his burial, Leonora and Mariano’s children extrajudicially settled his estate. Thereafter, Leonora
and Danilo advised Carlito of their intention to partition the property. Carlito opposed invoking Article
159 of the Family Code. Carlito alleged that since his minor child Lucas still resides in the premises, the
family home continues until that minor beneficiary becomes of age.

Is the contention of Carlito tenable? (4%)

XVIII.

Spouses Magtanggol managed and operated a gasoline station on a 1,000 sq.m. lot which they leased
from Francisco Bigla-awa. The contract was for a period of three (3) years. When the contract expired,
Francisco asked the spouses to peacefully vacate the premises. The spouses ignored the demand and
continued with the operation of the gasoline station.
 One month after, Francisco, with the aid of a group of armed men, caused the closure of the gasoline
station by constructing fences around it.

Was the act of Francisco and his men lawful? Why? (4%)

XIX.

Who enjoys the Right of Retention? (1%)

(A) Depositary until full payment of what may be due him in deposit.

(B) Lessee if he advances the expenses for the repair of the leased premises.

(C) Bailee if bailor owes him something.

(D) Builder in bad faith for the recovery of necessary and useful expenses.

XX.

Mabuhay Elementary School organized a field trip for its Grade VI students in Fort Santiago, Manila Zoo,
and Star City. To be able to join, the parents of the students had to sign a piece of paper that reads as
follows:

"I allow my child (name of student), Grade – Section, to join the school’s field trip on February 14, 2014.

I will not file any claim against the school, administrator or teacher in case something happens to my
child during the trip."
 Joey, a 7-year-old student of Mabuhay Elementary School was bitten by a snake while the group was
touring Manila Zoo. The parents of Joey sued the school for damages. The school, as a defense,
presented the waiver signed by Joey’s parents.

Was there a valid waiver of right to sue the school? Why? (4%)

XXI.

A delayed accession is: (1%)

(A) formation of an island

(B) avulsion

(C) alluvium

(D) change in the course of the riverbed

XXII.

On March 27, 1980, Cornelio filed an application for land registration involving a parcel of agricultural
land that he had bought from Isaac identified as Lot No. 2716 with an area of one (1) hectare. During the
trial, Cornelio claimed that he and his predecessors-in-interest had been in open, continuous,
uninterrupted, public and adverse possession and occupation of the land for more than thirty (30) years.
He likewise introduced in evidence a certification dated February 12, 1981 citing a presidential
declaration to the effect that on June 14, 1980, agricultural lands of the public domain, including the
subject matter of the application, were declared alienable and disposable agricultural land. (4%)

(A) If you are the judge, will you grant the application for land registration of Cornelio?

(B) Can Cornelio acquire said agricultural land through acquisitive prescription, whether ordinary or
extraordinary?
 XXIII.

After undergoing sex reassignment in a foreign country, Jose, who is now using the name of "Josie,"
married his partner Ador. Is the marriage valid? (1%)

(A) Yes, the marriage is valid for as long as it is valid in the place where it is celebrated following Article
17 of the Civil Code.

(B) Yes, the marriage is valid if all the essential and formal elements of marriage under the Family Code
are present.

(C) No, the marriage is not valid because one essential element of marriage is absent.

(D) No, the marriage is not valid but is voidable because "Josie" concealed her real identity.

XXIV.

Ted, married to Annie, went to Canada to work. Five (5) years later, Ted became a naturalized Canadian
citizen. He returned to the Philippines to convince Annie to settle in Canada. Unfortunately, Ted
discovered that Annie and his friend Louie were having an affair. Deeply hurt, Ted returned to Canada
and filed a petition for divorce which was granted. In December 2013, Ted decided to marry his
childhood friend Corazon in the Philippines. In preparation for the wedding, Ted went to the Local Civil
Registry of Quezon City where his marriage contract with Annie was registered. He asked the Civil
Register to annotate the decree of divorce on his marriage contract with Annie. However, he was
advised by the National Statistics Office (NSO) to file a petition for judicial recognition of the decree of
divorce in the Philippines.

Is it necessary for Ted to file a petition for judicial recognition of the decree of divorce he obtained in
Canada before he can contract a second marriage in the Philippines? (4%)

XXV.
Mario executed his last will and testament where he acknowledges the child being conceived by his live-
in partner Josie as his own child; and that his house and lot in Baguio City be given to his unborn
conceived child. Are the acknowledgment and the donation mortis causa valid? Why? (4%)

XXVI.

Isaac leased the apartment of Dorotea for two (2) years. Six (6) months after, Isaac subleased a portion
of the apartment due to financial difficulty. Is the sublease contract valid? (1%)

(A) Yes, it is valid for as long as all the elements of a valid sublease contract are present.

(B) Yes, it is valid if there is no express prohibition for subleasing in the lease contract.

(C) No, it is void if there is no written consent on the part of the lessor.

(D) No, it is void because of breach of the lease contract.

XXVII.

Fe, Esperanza, and Caridad inherited from their parents a 500 sq. m. lot which they leased to Maria for
three (3) years. One year after, Fe, claiming to have the authority to represent her siblings Esperanza
and Caridad, offered to sell the leased property to Maria which the latter accepted. The sale was not
reduced into writing, but Maria started to make partial payments to Fe, which the latter received and
acknowledged. After giving the full payment, Maria demanded for the execution of a deed of absolute
sale which Esperanza and Caridad refused to do. Worst, Maria learned that the siblings sold the same
property to Manuel. This compelled Maria to file a complaint for the annulment of the sale with specific
performance and damages.

If you are the judge, how will you decide the case? (4%)

XXVIII.
Spouses Esteban and Maria decided to raise their two (2) nieces, Faith and Hope, both minors, as their
own children after the parents of the minors died in a vehicular accident.

Ten (10) years after, Esteban died. Maria later on married her boss Daniel, a British national who had
been living in the Philippines for two (2) years.

With the permission of Daniel, Maria filed a petition for the adoption of Faith and Hope. She did not
include Daniel as her co-petitioner because for Maria, it was her former husband Esteban who raised the
kids.

If you are the judge, how will you resolve the petition? (4%)

XXIX.

Timothy executed a Memorandum of Agreement (MOA) with Kristopher setting up a business venture
covering three (3) fastfood stores known as "Hungry Toppings" that will be established at Mall Uno, Mall
Dos, and Mall Tres.

The pertinent provisions of the MOA provides:

1. Timothy shall be considered a partner with thirty percent (30%) share in all of the stores to be set up
by Kristopher;

2. The proceeds of the business, after deducting expenses, shall be used to pay the principal amount of
P500,000.00 and the interest therein which is to be computed based on the bank rate, representing the
bank loan secured by Timothy;

3. The net profits, if any, after deducting the expenses and payments of the principal and interest shall
be divided as follows: seventy percent (70%) for Kristopher and thirty percent (30%) for Timothy;

4. Kristopher shall have a free hand in running the business without any interference from Timothy, his
agents, representatives, or assigns , and should such interference happen, Kristopher has the right to
buy back the share of Timothy less the amounts already paid on the principal and to dissolve the MOA;
and

5. Kristopher shall submit his monthly sales report in connection with the business to Timothy.

What is the contractual relationship between Timothy and Kristopher? (4%)

XXX.

Joe Miguel, a well-known treasure hunter in Mindanao, executed a Special Power of Attorney (SPA)
appointing his nephew, John Paul, as his attorney-infact. John Paul was given the power to deal with
treasure-hunting activities on Joe Miguel’s land and to file charges against those who may enter it
without the latter’s authority. Joe Miguel agreed to give John Paul forty percent (40%) of the treasure
that may be found on the land.

Thereafter, John Paul filed a case for damages and injunction against Lilo for illegally entering Joe
Miguel’s land. Subsequently, he hired the legal services of Atty. Audrey agreeing to give the latter thirty
percent (30%) of Joe Miguel’s share in whatever treasure that may be found in the land.

Dissatified however with the strategies implemented by John Paul, Joe Miguel unilaterally revoked the
SPA granted to John Paul.

Is the revocation proper? (4%)

---oo0ooo---
 2014 BAR EXAMINATIONS

TAXATION LAW

I.

On March 27, 2012, the Bureau of Internal Revenue (BIR) issued a notice of assessment against Blue
Water Industries Inc. (BWI), a domestic corporation, informing the latter of its alleged deficiency
corporate income tax for the year 2009. On April 20, 2012, BWI filed a letter protest before the BIR
contesting said assessment and demanding that the same be cancelled or set aside.

However, on May 19, 2013, that is, after more than a year from the filing of the letter protest, the BIR
informed BWI that the latter’s letter protest was denied on the ground that the assessment had already
become final, executory and demandable. The BIR reasoned that its failure to decide the case within 180
days from filing of the letter protest should have prompted BWI to seek recourse before the Court of
Tax Appeals (CTA) by filing a petition for review within thirty (30) days after the expiration of the 180-
day period as mandated by the provisions of the last paragraph of Section 228 of the National Internal
Revenue Code (NIRC). Accordingly, BWI’s failure to file a petition for review before the CTA rendered the
assessment final, executory and demandable. Is the contention of the BIR correct? Explain. (5%)

II.

Mr. De Sarapen is a candidate in the upcoming Senatorial elections. Mr. De Almacen, believing in the
sincerity and ability of Mr. De Sarapen to introduce much needed reforms in the country, contributed
P500,000.00 in cash to the campaign chest of Mr. De Sarapen. In addition, Mr. De Almacen purchased
tarpaulins, t-shirts, umbrellas, caps and other campaign materials that he also donated to Mr. De
Sarapen for use in his campaign. Is the contribution of cash and campaign materials subject to donor’s
tax? (4%)

III.

Dr. Taimtim is an alumnus of the College of Medicine of Universal University (UU), a privately-owned
center for learning which grants yearly dividends to its stockholders.

UU has a famous chapel located within the campus where the old folks used to say that anyone who
wanted to pass the medical board examinations should offer a dozen roses on all the Sundays of
 October. This was what Dr. Taimtim did when he was still reviewing for the board examinations. In his
case, the folk saying proved to be true because he is now a successful cardiologist. Wanting to give back
to the chapel and help defray the costs of its maintenance, Dr. Taimtim donated P50,000.00 to the
caretakers of the chapel which was evidenced by an acknowledgment receipt.

In computing his net taxable income, can Dr.Taimtim use his donation to the chapel as an allowable
deduction from his gross income under the National Internal Revenue Code (NIRC)? (4%)

IV.

Gangwam Corporation (GC) filed its quarterly tax returns for the calendar year 2012 as follows:

First quarter - April 25, 2012

Second quarter - July 23, 2012

Third quarter - October 25, 2012

Fourth quarter - January 27, 2013

On December 22, 2013, GC filed with the Bureau of Internal Revenue (BIR) an administrative claim for
refund of its unutilized input Value-Added Tax (VAT) for the calendar year 2012. After several months of
inaction by the BIR on its claim for refund, GC decided to elevate its claim directly to the Court of Tax
Appeals (CTA) on April 22, 2014.

In due time, the CTA denied the tax refund relative to the input VAT of GC for the first quarter of 2012,
reasoning that the claim was filed beyond the two-year period prescribed under Section 112(A) of the
National Internal Revenue Code (NIRC).

(A) Is the CTA correct? (3%)

 (B) Assuming that GC filed its claim before the CTA on February 22, 2014, would your answer be the
same? (3%)

V.

The City of Liwliwa assessed local business taxes against Talin Company. Claiming that there is double
taxation, Talin Company filed a Complaint for Refund or Recovery of Illegally and/or Erroneously-
collected Local Business Tax; Prohibition with Prayer to Issue Temporary Restraining Order and Writ of
Preliminary Injunction with the Regional Trial Court (RTC). The RTC denied the application for a Writ of
Preliminary Injunction. Since its motion for reconsideration was denied, Talin Company filed a special
civil action for certiorari with the Court of Appeals (CA). The government lawyer representing the City of
Liwliwa prayed for the dismissal of the petition on the ground that the same should have been filed with
the Court of Tax Appeals (CTA). Talin Company, through its lawyer, Atty. Frank, countered that the CTA
cannot entertain a petition for certiorari since it is not one of its powers and authorities under existing
laws and rules.

Decide. (5%)

VI.

Choose the correct answer. Smuggling - (1%)

(A) does not extend to the entry of imported or exported articles by means of any false or fraudulent
invoice, statement or practices; the entry of goods at less than the true weight or measure; or the filing
of any false or fraudulent entry for the payment of drawback or refund of duties.

(B) is limited to the import of contraband or highly dutiable cargo beyond the reach of customs
authorities.

(C) is committed by any person who shall fraudulently import or bring into the Philippines, or assist in so
doing, any article, contrary to law, or shall receive, conceal, buy, sell or any manner facilitate the
transportation, concealment or sale of such article after importation, knowing the same to have been
imported contrary to law.
 VII.

In accordance with the Local Government Code (LGC), the Sangguniang Panglungsod (SP) of Baguio City
enacted Tax Ordinance No. 19, Series of 2014, imposing a P50.00 tax on all the tourists and travellers
going to Baguio City. In imposing the local tax, the SP reasoned that the tax collected will be used to
maintain the cleanliness of Baguio City and for the beautification of its tourist attractions. (D) is
punishable by administrative penalty only.

Claiming the tax to be unjust, Baguio Travellers Association (BTA), an association of travel agencies in
Baguio City, filed a petition for declaratory relief before the Regional Trial Court (RTC) because BTA was
apprehensive that tourists might cancel their bookings with BTA’s member agencies. BTA also prayed for
the issuance of a Temporary Restraining Order (TRO) to enjoin Baguio City from enforcing the local tax
on their customers and on all tourists going to Baguio City.

The RTC issued a TRO enjoining Baguio City from imposing the local tax. Aggrieved, Baguio City filed a
petition for certiorari before the Supreme Court (SC) seeking to set aside the TRO issued by the RTC on
the ground that collection of taxes cannot be enjoined. Will the petition prosper? (5%)

VIII.

Masarap Kumain, Inc. (MKI) is a Value-Added Tax (VAT)-registered company which has been engaged in
the catering business for the past 10 years. It has invested a substantial portion of its capital on flat
wares, table linens, plates, chairs, catering equipment, and delivery vans. MKI sold its first delivery van,
already 10 years old and idle, to Magpapala Gravel and Sand Corp. (MGSC), a corporation engaged in the
business of buying and selling gravel and sand. The selling price of the delivery van was way below its
acquisition cost. Is the sale of the delivery van by MKI to MGSC subject to VAT? (4%)

IX.

Mr. Gipit borrowed from Mr. Maunawain P100,000.00, payable in five (5) equal monthly installments.
Before the first installment became due, Mr. Gipit rendered general cleaning services in the entire office
building of Mr. Maunawain, and as compensation therefor, Mr. Maunawain cancelled the indebtedness
of Mr. Gipit up to the amount of P75,000.00. Mr. Gipit claims that the cancellation of his indebtedness
cannot be considered as gain on his part which must be subject to income tax, because according to
him, he did not actually receive payment from Mr. Maunawain for the general cleaning services. Is Mr.
Gipit correct? Explain. (4%)
 X.

Which of the following is an exclusion from gross income? (1%)

(A) Salaries and wages

(B) Cash dividends

(C) Liquidating dividends after dissolution of a corporation

(D) De minimis benefits

(E) Embezzled money

XI.

Triple Star, a domestic corporation, entered into a Management Service Contract with Single Star, a non-
resident foreign corporation with no property in the Philippines. Under the contract, Single Star shall
provide managerial services for Triple Star’s Hongkong branch. All said services shall be performed in
Hongkong.

Is the compensation for the services of Single Star taxable as income from sources within the
Philippines? Explain. (4%)

XII.

Which of the following should not be claimed as deductions from gross income? (1%)

(A) discounts given to senior citizens on certain goods and services.

 (B) advertising expense to maintain some form of goodwill for the taxpayer’s business.

(C) salaries and bonuses paid to employees.

(D) interest payment on loans for the purchase of machinery and equipment used in business.

XIII.

Hopeful Corporation obtained a loan from Generous Bank and executed a mortgage on its real property
to secure the loan. When Hopeful Corporation failed to pay the loan, Generous Bank extrajudicially
foreclosed the mortgage on the property and acquired the same as the highest bidder. A month after
the foreclosure, Hopeful Corporation exercised its right of redemption and was able to redeem the
property. Is Generous Bank liable to pay capital gains tax as a result of the foreclosure sale? Explain.
(4%)

XIV.

Mr. X, a Filipino residing in Alabama, U.S.A., died on January 2, 2013 after undergoing a major heart
surgery. He left behind to his wife and two (2) kids several properties, to wit: (4%)

(1) Family home in Makati City;

(2) Condominium unit in Las Piñas City;

(3) Proceeds of health insurance from Take Care, a health maintenance organization in the Philippines;
and

(4) Land in Alabama, U.S.A.

The following expenses were paid:

 (1) Funeral expenses;

(2) Medical expenses; and

(3) Judicial expenses in the testate proceedings.

(A) What are the items that must be considered as part of the gross estate income of Mr. X?

(B) What are the items that may be considered as deductions from the gross estate?

XV.

When is a pre-assessment notice required under the following cases? (1%)

(A) When the finding for any deficiency tax is the result of mathematical error in the computation of the
tax as appearing on the face of the return.

(B) When a discrepancy has been determined between the tax withheld and the amount actually
remitted by the withholding agent.

(C) When the excise tax due on excisable articles has been paid.

(D) When an article locally purchased or imported by an exempt person, such as, but not limited to
vehicles, capital equipment, machineries and spare parts, has been sold, traded or transferred to non-
exempt persons.

XVI.
 Mr. Tiaga has been a law-abiding citizen diligently paying his income taxes. On May 5, 2014, he was
surprised to receive an assessment notice from the Bureau of Internal Revenue (BIR) informing him of a
deficiency tax assessment as a result of a mathematical error in the computation of his income tax, as
appearing on the face of his income tax return for the year 2011, which he filed on April 15, 2012. Mr.
Tiaga believes that there was no such error in the computation of his income tax for the year 2011.
Based on the assessment received by Mr. Tiaga, may he already file a protest thereon? (4%)

XVII.

In a civil case for Annulment of Contract of Sale, plaintiff Ma. Reklamo presented in evidence the
Contract of Sale which she sought to be annulled. No documentary stamp tax on the Contract of Sale
was paid because according to plaintiff Ma. Reklamo, there was no need to pay the same since the sale
was not registered with the Register of Deeds. Plaintiff Ma. Reklamo is now offering the Contract of Sale
as her evidence. Is the Contract of Sale admissible? (4%)

XVIII.

Madam X owns real property in Caloocan City. On July 1, 2014, she received a notice of assessment from
the City Assessor, informing her of a deficiency tax on her property. She wants to contest the
assessment. (4%)

(A) What are the administrative remedies available to Madam X in order to contest the assessment and
their respective prescriptive periods?

(B) May Madam X refuse to pay the deficiency tax assessment during the pendency of her appeal?

XIX.

The Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. 65-2012
imposing Value-Added Tax (VAT) on association dues and membership fees collected by condominium
corporations from its member condominium-unit owners. The RMC’s validity is challenged before the
Supreme Court (SC) by the condominium corporations.
 The Solicitor General, counsel for BIR, claims that association dues, membership fees, and other
assessment/charges collected by a condominium corporation are subject to VAT since they constitute
income payments or compensation for the beneficial services it provides to its members and tenants.

On the other hand, the lawyer of the condominium corporations argues that such dues and fees are
merely held in trust by the condominium corporations exclusively for their members and used solely for
administrative expenses in implementing the condominium corporations’ purposes. Accordingly, the
condominium corporations do not actually render services for a fee subject to VAT.

Whose argument is correct? Decide. (5%)

XX.

During his lifetime, Mr. Sakitin obtained a loan amounting to P10 million from Bangko Uno for the
purchase of a parcel of land located in Makati City, using such property as collateral for the loan. The
loan was evidenced by a duly notarized promissory note. Subsequently, Mr. Sakitin died. At the time of
his death, the unpaid balance of the loan amounted to P2 million. The heirs of Mr. Sakitin deducted the
amount of P2 million from the gross estate, as part of the "Claims against the Estate." Such deduction
was disallowed by the Bureau of Internal Revenue (BIR) Examiner, claiming that the mortgaged property
was not included in the computation of the gross estate. Do you agree with the BIR? Explain. (4%)

XXI.

On August 31, 2014, Haelton Corporation (HC), thru its authorized representative Ms. Pares, sold a 16-
storey commercial building known as Haeltown Building to Mr. Belly for P100 million. Mr. Belly, in turn,
sold the same property on the same day to Bell Gates, Inc. (BGI) for P200 million. These two (2)
transactions were evidenced by two (2) separate Deeds of Absolute Sale notarized on the same day by
the same notary public.

Investigations by the Bureau of Internal Revenue (BIR) showed that:

(1) the Deed of Absolute Sale between Mr. Belly and BGI was notarized ahead of the sale between HC
and Mr. Belly; (2) as early as May 17, 2014, HC received P40 million from BGI, and not from Mr. Belly; (3)
the said payment of P40 million was recorded by BGI in its books as of June 30, 2014 as investment in
 Haeltown Building; and (4) the substantial portion of P40 million was withdrawn by Ms. Pares through
the declaration of cash dividends to all its stockholders.

Based on the foregoing, the BIR sent Haeltown Corporation a Notice of Assessment for deficiency
income tax arising from an alleged simulated sale of the aforesaid commercial building to escape the
higher corporate income tax rate of thirty percent (30%). What is the liability of Haeltown Corporation, if
any? (4%)

XXII.

Choose the correct answer. Double Taxation - (1%)

(A) is one of direct duplicate taxations wherein two (2) taxes must be imposed on the same subject
matter, by the same taxing authority, within the same jurisdiction, during the same period, with the
same kind or character of tax, even if the purposes of imposing the same are different.

(B) is forbidden by law; and therefore, it is a valid defense against the validity of a tax measure.

(C) means taxing the same property twice when it should be taxed only once; it is tantamount to taxing
the same person twice by the same jurisdiction for the same thing.

(D) exists when a corporation is assessed with local business tax as a manufacturer, and at the same
time, value-added tax as a person selling goods in the course of trade or business.

XXIII.

Choose the correct answer. Tax Avoidance ‒ (1%)

(A) is a scheme used outside of those lawful means and, when availed of, it usually subjects the taxpayer
to further or additional civil or criminal liabilities.

(B) is a tax saving device within the means sanctioned by law.

 (C) is employed by a corporation, the organization of which is prompted more on the mitigation of tax
liabilities than for legitimate business purpose.

(D) is any form of tax deduction scheme, regardless if the same is legal or not.

XXIV.

A, B, and C, all lawyers, formed a partnership called ABC Law Firm so that they can practice their
profession as lawyers. For the year 2012, ABC Law Firm received earnings and paid expenses, among
which are as follows: (6%)

Earnings:

(1) Professional/legal fees from various clients

(2) Cash prize received from a religious society in recognition of the exemplary service of ABC Law Firm

(3) Gains derived from sale of excess computers and laptops

Payments:

(1) Salaries of office staff

(2) Rentals for office space

(3) Representation expenses incurred in meetings with clients

(A) What are the items in the above mentioned earnings which should be included in the computation of
ABC Law Firm’s gross income? Explain.
(B) What are the items in the above-mentioned payments which may be considered as deductions from
the gross income of ABC Law Firm? Explain.

(C) If ABC Law Firm earns net income in 2012, what, if any, is the tax consequence on the part of ABC
Law Firm insofar as the payment of income tax is concerned? What, if any, is the tax consequence on
the part of A, B, and C as individual partners, insofar as the payment of income tax is concerned?

XXV.

Which of the following transactions is subject to Value-Added Tax (VAT)? (1%)

(A) Sale of shares of stock-listed and traded through the local stock exchange

(B) Importation of personal and household effects belonging to residents of the Philippines returning
from abroad subject to custom duties under the Tariff and Customs Code

(C) Services rendered by individuals pursuant to an employeremployee relationship

(D) Gross receipts from lending activities by credit or multi-purpose cooperatives duly registered with
the Cooperative Development Authority

XXVI.

Freezy Corporation, a domestic corporation engaged in the manufacture and sale of ice cream, made
payments to an officer of Frosty Corporation, a competitor in the ice cream business, in exchange for
said officer’s revelation of Frosty Corporation’s trade secrets.

May Freezy Corporation claim the payment to the officer as deduction from its gross income? Explain.
(4%)

XXVII.
In January 2013, your friend got his first job as an o ffice clerk. He is single and lives with his family who
depends upon him for financial support. His parents have long retired from their work, and his two (2)
siblings are still minors and studying in grade school. In February 2014, he consulted you as he wanted
to comply with all the rules pertaining to the preparation and filing of his income tax return. He now
asks you the following:

(A) Is he entitled to personal exemptions? If so, how much? (1%)

(B) Is he entitled to additional exemptions? If so, how much? (1%)

(C) What is the effect of the taxes withheld from his salaries on his taxable income? (2%)

XXVIII.

Choose the correct answer. Tax laws - (1%)

(A) may be enacted for the promotion of private enterprise or business for as long as it gives incidental
advantage to the public or the State

(B) are inherently legislative; therefore, may not be delegated

(C) are territorial in nature; hence, they do not recognize the generally-accepted tenets of international
law

(D) adhere to uniformity and equality when all taxable articles or kinds of property of the same class are
taxable at the same rate

XXIX.

Doña Evelina, a rich widow engaged in the business of currency exchange, was assessed a considerable
amount of local business taxes by the City Government of Bagnet by virtue of Tax Ordinance No. 24.
 Despite her objections thereto, Doña Evelina paid the taxes. Nevertheless, unsatisfied with said Tax
Ordinance, Doña Evelina, through her counsel Atty. ELP, filed a written claim for recovery of said local
business taxes and contested the assessment. Her claim was denied, and so Atty. ELP elevated her case
to the Regional Trial Court (RTC).

The RTC declared Tax Ordinance No. 24 null and void and without legal effect for having been enacted in
violation of the public ation requirement of tax ordinances and revenue measures under the Local
Government Code (LGC) and on the ground of double taxation. On appeal, the Court of Tax Appeals
(CTA) affirmed the decision of the RTC. No motion for reconsideration was filed and the decision
became final and executory. (4%)

(A) If you are Atty. ELP, what advice will you give Doña Evelina so that she can recover the subject local
business taxes?

(B) If Doña Evelina eventually recovers the local business taxes, must the same be considered as income
taxable by the national government?

---ooo0ooo---
2014 BAR EXAMINATIONS

LABOR LAW

I.

Linda was employed by Sectarian University (SU) to cook for the members of a religious order who teach
and live inside the campus. While performing her assigned task, Linda accidentally burned herself.
Because of the extent of her injuries, she went on medical leave. Meanwhile, SU engaged a replacement
cook. Linda filed a complaint for illegal dismissal, but her employer SU contended that Linda was not a
regular employee but a domestic househelp. Decide. (4%)

II.

Lucy was one of approximately 500 call center agents at Hambergis, Inc. She was hired as a contractual
employee four years ago. Her contracts would be for a duration of five (5) months at a time, usually
after a onemonth interval. Her re-hiring was contingent on her performance for the immediately
preceding contract. Six (6) months after the expiration of her last contract, Lucy went to Hambergis
personnel department to inquire why she was not yet being recalled to work. She was told that her
performance during her last contract was "below average." Lucy seeks your legal advice about her
chances of getting her job back. What will your advice be? (4%)

III.

Lolong Law Firm (LLF), which employs around 50 lawyers and 100 regular staff, suffered losses for the
first time in its history. The management informed its employees that it could no longer afford to
provide them free lunch. Consequently, it announced that a nominal fee would henceforth be charged.
Was LLF justified in withdrawing this benefit which it had unilaterally been providing to its employees?
(1%)

(A) Yes, because it is suffering losses for the first time.

(B) Yes, because this is a management prerogative which is not due to any legal or contractual
obligation.
(C) No, because this amounts to a diminution of benefits which is prohibited by the Labor Code.

(D) No, because it is a fringe benefit that has already ripened into a demandable right.

IV.

Linis Manpower, Inc. (LMI) had provided janitorial services to the Philippine Overseas Employment
Administration (POEA) since March 2009. Its service contract was renewed every three months.
However, in the bidding held in June 2012, LMI was disqualified and excluded. In 2013, six janitors of
LMI formerly assigned at POEA filed a complaint for underpayment of wages. Both LMI and POEA were
impleaded as respondents. Should POEA, a government agency subject to budgetary appropriations
from Congress, be held liable solidarily with LMI for the payment of salary differentials due to the
complainant? Cite the legal basis of your answer. (4%)

V.

Liwayway Glass had 600 rank-and-file employees. Three rival unions – A, B, and C ‒ participated in the
certification elections ordered by the Med-Arbiter. 500 employees voted. The unions obtained the
following votes: A-200; B-150; C-50; 90 employees voted "no union"; and 10 were segregated votes. Out
of the segregated votes, four (4) were cast by probationary employees and six (6) were cast by dismissed
employees whose respective cases are still on appeal. (10%)

(A) Should the votes of the probationary and dismissed employees be counted in the total votes cast for
the purpose of determining the winning labor union?

(B) Was there a valid election?

(C) Should Union A be declared the winner?

(D) Suppose the election is declared invalid, which of the contending unions should represent the rank-
and-file employees?
(E) Suppose that in the election, the unions obtained the following votes: A-250; B-150; C-50; 40 voted
"no union"; and 10 were segregated votes. Should Union A be certified as the bargaining
representative?

VI.

Lina has been working as a steward with a Miami, U.S.A.-based Loyal Cruise Lines for the past 15 years.
She was recruited by a local manning agency, Macapagal Shipping, and was made to sign a 10-month
employment contract everytime she left for Miami. Macapagal Shipping paid for Lina’s round-trip travel
expenses from Manila to Miami. Because of a food poisoning incident which happened during her last
cruise assignment, Lina was not re-hired. Lina claims she has been illegally terminated and seeks
separation pay. If you were the Labor Arbiter handlingthe case, how would you decide? (4%)

VII.

Non-lawyers can appear before the Labor Arbiter if: (1%)

(A) they represent themselves

(B) they are properly authorized to represent their legitimate labor organization or member thereof

(C) they are duly-accredited members of the legal aid office recognized by the DOJ or IBP

(D) they appear in cases involving an amount of less than Php5,000

VIII.

As a result of a bargaining deadlock between Lazo Corporation and Lazo Employees Union, the latter
staged a strike. During the strike, several employees committed illegal acts. Eventually, its members
informed the company of their intention to return to work. (6%)

(A) Can Lazo Corporation refuse to admit the strikers?

(B) Assuming the company admits the strikers, can it later on dismiss those employees who committed
illegal acts?

(C) If due to prolonged strike, Lazo Corporation hired replacements, can it refuse to admit the replaced
strikers?

IX.

Luisa Court is a popular chain of motels. It employs over 30 chambermaids who, among others, help
clean and maintain the rooms. These chambermaids are part of the union rank-and-file employees
which has an existing collective bargaining agreement (CBA) with the company. While the CBA was in
force, Luisa Court decided to abolish the position of chambermaids and outsource the cleaning of the
rooms to Malinis Janitorial Services, a bona fide independent contractor which has invested in
substantial equipment and sufficient manpower. The chambermaids filed a case of illegal dismissal
against Luisa Court. In response, the company argued that the decision to outsource resulted from the
new management’s directive to streamline operations and save on costs. If you were the Labor Arbiter
assigned to the case, how would you decide? (4%)

X.

Luisa was hired as a secretary by the Asian Development Bank (ADB) in Manila. Luisa’s first boss was a
Japanese national whom she got along with. But after two years, the latter was replaced by an arrogant
Indian national who did not believe her work output was in accordance with international standards.
One day, Luisa submitted a draft report filled with typographical errors to her boss. The latter scolded
her, but Luisa verbally fought back. The Indian boss decided to terminate her services right then and
there. Luisa filed a case for illegal dismissal with the Labor Arbiter claiming arbitrariness and denial of
due process. If you were the Labor Arbiter, how would you decide the case? (4%)

XI.

Lionel, an American citizen whose parents migrated to the U.S. from the Philippines, was hired by JP
Morgan in New York as a call center specialist. Hearing about the phenomenal growth of the call center
industry in his parents’ native land, Lionel sought and was granted a transfer as a call center manager for
JP Morgan’s operations in Taguig City. Lionel’semployment contract did not specify a period for his stay
in the Philippines. After three years of working in the Philippines, Lionel was advised that he was being
recalled to New York and being promoted to the position of director of international call center
operations. However, because of certain "family reasons," Lionel advised the company of his preference
to stay in the Philippines. He was dismissed by the company. Lionel now seeks yo ur legal advice on:
(6%)

(A) whether he has a cause of action

(B) whether he can file a case in the Philippines

(C) what are his chances of winning

XII.

Which of the following groups does not enjoy the right to selforganization? (1%)

(A) those who work in a non-profit charitable institution

(B) those who are paid on a piece-rate basis

(C) those who work in a corporation with less than 10 employees

(D) those who work as legal secretaries

XIII.

Don Luis, a widower, lived alone in a house with a large garden. One day, he noticed that the plants in
his garden needed trimming. He remembered that Lando, a 17-year old out-of-school youth, had
contacted him in church the other day looking for work. He contacted Lando who immediately attended
to Don Luis’s garden a nd finished the job in three days. (4%)

(A) Is there an employer-employee relationship between Don Luis and Lando?

(B) Does Don Luis need to register Lando with the Social Security System (SSS)?

XIV.

Luisito has been working with Lima Land for 20 years. Wanting to work in the public sector, Luisito
applied with and was offered a job at Livecor. Before accepting the offer, he wanted to consult you
whether the payments that he and Lima Land had made to the Social Security System (SSS) can be
transferred or credited to the Government Service Insurance System (GSIS). What would you advice?
(4%)

XV.

Our Lady of Peace Catholic School Teachers and Employees Labor Union (OLPCS-TELU) is a legitimate
labor organization composed of vice principals, department heads, coordinators, teachers, and non-
teaching personnel of Our Lady of Peace Catholic School (OLPCS).

OLPCS-TELU subsequently filed a petition for certification election among the teaching and non-teaching
personnel of OLPCS before the Bureau of Labor Relations (BLR) of the Department of Labor and
Employment (DOLE). The Med-Arbiter subsequently granted the petition and ordered the conduct of a
joint certification election for the teaching and non-teaching personnel of OLPCS.

May OLPCS-TELU be considered a legitimate labor organization? (5%)

XVI.

Samahang East Gate Enterprises (SEGE) is a labor organization composed of the rank-and-file employees
of East Gate Enterprises (EGE), the leading manufacturer of all types of gloves and aprons.

EGE was later requested by SEGE to bargain collectively for better terms and conditions of employment
of all the rank -and-file employees of EGE. Consequently, EGE filed a petition for certification election
before the Bureau of Labor Relations (BLR).
During the proceedings, EGE insisted that it should participate in the certification process. EGE reasoned
that since it was the one who filed the petition and considering that the employees concerned were its
own rankand-file employees, it should be allowed to take an active part in the certification process.

Is the contention of EGE proper? Explain. (5%)

XVII.

Philhealth is a government-owned and controlled corporation employing thousands of Filipinos. Because

of the desire of the employees of Philhealth to obtain better terms and conditions of employment from
the government, they formed the Philhealth Employees Association (PEA) and demanded Philhealth to
enter into negotiations with PEA regarding terms and conditions of employment which are not fixed by
law. (4%)

(A) Are the employees of Philhealth allowed to self-organize and form PEA and thereafter demand
Philhealth to enter into negotiations with PEA for better terms and conditions of employment?

(B) In case of unresolved grievances, can PEA resort to strikes, walkouts, and other temporary work
stoppages to pressure the government to accede to their demands?

XVIII.

The procedural requirements of a valid strike include: (1%)

(A) a claim of either unfair labor practice or deadlock in collective bargaining

(B) notice of strike filed at least 15 days before a ULP-grounded strike or at least 30 days prior to the
deadlock in a bargaining grounded strike

(C) majority of the union membership must have voted to stage the strike with notice thereon furnished
to the National Conciliation and Mediation Board (NCMB) at least 24 hours before the strike vote is
taken
(D) strike vote results must be furnished to the NCMB at least seven (7) days before the intended strike

XIX.

Lincoln was in the business of trading broadcast equipment used by television and radio networks. He
employed Lionel as his agent. Subsequently, Lincoln set up Liberty Communications to formally engage
in the same business. He requested Lionel to be one of the incorporators and assigned to him 100
Liberty shares. Lionel was also given the title Assistant Vice-President for Sales and Head of Technical
Coordination. After several months, there were allegations that Lionel was engaged in "under the table
dealings" and received "confidential commissions" from Liberty’s clients and suppliers. He was,
therefore, charged with serious misconduct and willful breach of trust, and was given 48 hours to
present his explanation on the charges. Lionel was unable to comply with the 48 -hour deadline and was
subsequently barred from entering company premises. Lionel then filed a complaint with the Labor
Arbiter claiming constructive dismissal. Among others, the company sought the dismissal of the
complaint alleging that the case involved an intra-corporate controversy which was within the
jurisdiction of the Regional Trial Court (RTC).

If you were the Labor Arbiter assigned to the case, how would you rule on the company’s motion to
dismiss? (5%)

XX.

Lito was anticipating the bonus he would receive for 2013. Aside from the 13th month pay, the company
has been awarding him and his other co-employees a two to three months bonus for the last 10 years.
However, because of poor over-all sales performance for the year, the company unilaterally decided to
pay only a one month bonus in 2013. Is Lito’s employer legally allowed to reduce the bonus? (4%)

XXI.

An accidental fire gutted the JKL factory in Caloocan. JKL decided to suspend operations and requested
its employees to stop reporting for work. After six (6) months, JKL resumed operations but hired a new
set of employees. The old set of employees filed a case for illegal dismissal. If you were the Labor
Arbiter, how would you decide the case? (4%)

XXII.
Despite a reinstatement order, an employer may choose not to reinstate an employee if: (1%)

(A) there is a strained employer-employee relationship

(B) the position of the employee no longer exists

(C) the employer’s business has been closed

(D) the employee does not wish to be reinstated.

XXIII.

Luningning Foods engaged the services of Lamitan Manpower, Inc., a bona fide independent contractor,
to provide "tasters" that will check on food quality. Subsequently, these "tasters" joined the union of
rank -and-file employees of Luningning and demanded that they be made regular employees of the
latter as they are performing functions necessary and desirable to operate the company’s business.
Luningning rejected the demand for regularization. On behalf of the "tasters", the union then filed a
notice of strike with the Department of Labor and Employment (DOLE). In response, Luningning sought a
restraining order from the Regional Trial Court (RTC) arguing that the DOLE does not have jurisdiction
over t he case since it does not have an employer-employee relationship with the employees of an
independent contractor. If you were the RTC judge, would you issue a restraining order against the
union? (4%)

XXIV.

Lanz was a strict and unpopular Vice-President for Sales of Lobinsons Land. One day, Lanz shouted
invectives against Lee, a poor performing sales associate, calling him, among others, a "brown monkey."
Hurt, Lee decided to file a criminal complaint for grave defamation against Lanz. The prosecutor found
probable cause and filed an information in court. Lobinsons decided to terminate Lanz for committing a
potential crime and other illegal acts prejudicial to business. Can Lanz be legally terminated by the
company on these grounds? (4%)

XXV.
Lizzy Lu is a sales associate for Luna Properties. The latter is looking to retrench Lizzy and five other sales
associates due to financial losses. Aside from a basic monthly salary, Lizzy and her colleagues receive
commissions on the sales they make as well as cost of living and representation allowances. In
computing Lizzy’s separation pay, Luna Properties should consider her: (1%)

(A) monthly salary only

(B) monthly salary plus sales commissions

(C) monthly salary plus sales commissions, plus cost of living allowance

(D) monthly salary plus sales commissions, plus cost of living allowance and representation allowance

XXVI.

Liwanag Corporation is engaged in the power generation business. A stalemate was reached during the
collective bargaining negotiations between its management and the union. After following all the
requisites provided by law, the union decided to stage a strike. The management sought the assistance
of the Secretary of Labor and Employment, who assumed jurisdiction over the strike and issued a return-
to-work order. The union defied the latter and continued the strike. Without providing any notice,
Liwanag Corporation declared everyone who participated in the strike as having lost their employment.
(4%)

(A) Was Liwanag Corporation’s action valid?

(B) If, before the DOLE Secretary assumed jurisdiction, the striking union members communicated in
writing their desire to return to work, which offer Liwanag Corporation refused to accept, what remedy,
if any, does the union have?

XXVII.

The jurisdiction of the National Labor Relations Commission does not include: (1%)
(A) exclusive appellate jurisdiction over all cases decided by the Labor Arbiter

(B) exclusive appellate jurisdiction over all cases decided by Regional Directors or hearing officers
involving the recovery of wages and other monetary claims and benefits arising from employer-
employee relations where the aggregate money claim of each does not exceed five thousand pesos
(Php5,000)

(C) original jurisdiction to act as a compulsory arbitration body over labor disputes certified to it by the
Regional Directors

(D) power to issue a labor injunction

---ooo0ooo---
 2014 BAR EXAMINATIONS

POLITICAL LAW

I.

With the passage of time, the members of the House of Representatives increased with the creation of
new legislative districts and the corresponding adjustments in the number of party-list representatives.
At a time when the House membership was already 290, a great number of the members decided that it
was time to propose amendments to the Constitution. The Senators, however, were cool to the idea.
But the members of the House insisted. They accordingly convened Congress into a constituent
assembly in spite of the opposition of the majority of the members of the Senate. When the votes were
counted, 275 members of the House of Representatives approved the proposed amendments. Only 10
Senators supported such proposals. The proponents now claim that the proposals were validly made,
since more than the required three-fourths vote of Congress has been obtained. The 14 Senators who
voted against the proposals claim that the proposals needed not three-fourths vote of the entire
Congress but each house. Since the required number of votes in the Senate was not obtained, then
there could be no valid proposals, so argued the Senators. Were the proposals validly adopted by
Congress? (5%)

II.

Several citizens, unhappy with the proliferation of families dominating the political landscape, decided
to take matters into their own hands. They proposed to come up with a people’s initiative defining
political dynasties. They started a signature campaign for the purpose of coming up with a petition for
that purpose. Some others expressed misgivings about a people’s initiative for the purpose of proposing
amendments to the Constitution, however. They cited the Court’s decision in Santiago v. Commission on
Elections, 270 SCRA 106 (1997), as authority for their position that there is yet no enabling law for s uch
purpose. On the other hand, there are also those who claim that the individual votes of the justices in
Lambino v. Commission on Elections, 505 SCRA 160 (2006), mean that Santiago’s pronouncement has
effectively been abandoned. If you were consulted by those behind the new attempt at a people’s
initiative, how would you advise them? (4%)

III.

In Serrano v. Gallant Maritime Services, Inc., 582 SCRA 254 (2009), the Supreme Court declared as
violative of the Equal Protection Clause the 5th paragraph of §10 R.A. No. 8042 (Migrant Workers and
Overseas Filipinos Act of 1995) for discriminating against illegally dismissed OFWs who still had mo re
than a year to their contract compared to those who only had less than a year remaining. The next year,
 Congress enacted R.A. No 10222, an amendment to the Migrant Workers and Overseas Filipinos Act,
which practically reinstated the provision struck down in Serrano.

Seamacho, an overseas seafarer who still had two years remaining on his contract when he was illegally
terminated, and who would only be entitled to a maximum of six-month’s pay under the reinstated
provision, engages you as his counsel. How are you to argue that the new law is invalid insofar as it
brings back to the statute books a provision that has already been struck down by the Court? (5%)

IV.

Beauty was proclaimed as the winning candidate for the position of Representative in the House of
Representatives three (3) days after the elections in May. She then immediately took her oath of office.
However, there was a pending disqualification case against her, which case was eventually decided by
the COMELEC against her 10 days after the election. Since she has already been proclaimed, she ignored
that decision and did not bother appealing it. The COMELEC then declared in the first week of June that
its decision holding that Beauty was not validly elected had become final. Beauty then went to the
Supreme Court questioning the jurisdiction of the COMELEC claiming that since she had already been
proclaimed and had taken her oath of office, such election body had no more right to come up with a
decision – that the jurisdiction had already been transferred to the House of Representatives Electoral
Tribunal. How defensible is the argument of Beauty? (4%)

V.

Greenpeas is an ideology-based political party fighting for environmental causes. It decided to

participate under the party-list system. When the election results came in, it only obtained 1.99 percent
of the votes cast under the party -list system. Bluebean, a political observer, claimed that Greenpeas is
not entitled to any seat since it failed to obtain at least 2% of the votes. Moreover, since it does not
represent any of the marginalized and underrepresented sectors of society, Greenpeas is not entitled to
participate under the party-list system. How valid are the observations of Bluebean? (4%)

VI.

A few months before the end of the present Congress, Strongwill was invited by the Senate to shed light
in an inquiry relative to the alleged siphoning and diverting of the pork barrel of members of Congress to
non-existent or fictitious projects. Strongwill has been identified in the news as the principal actor
responsible for the scandal, the leader of a non-governmental organization which ostensibly funnelled
the funds to certain local government projects which existed only on paper. At the start of the hearings
before the Senate, Strongwill refused at once to cooperate. The Senate cited him in contempt and sent
him to jail until he would have seen the light. The Congress, thereafter, adjourned sine die preparatory
to the assumption to office of the newly-elected members. In the meantime, Strongwill languished
behind bars and the remaining senators refused to have him released, claiming that the Senate is a
continuing body and , therefore, he can be detained indefinitely. Are the senators right? (4%)

VII.

Margie has been in the judiciary for a long time, starting from the lowest court. Twenty (20) years from
her first year in the judiciary, she was nominated as a Justice in the Court of Appeals. Margie also
happens to be a first-degree cousin of the President. The Judicial and Bar Council included her in the
short-list submitted to the President whose term of office was about to end – it was a month before the
next presidential elections. Can the President still make appointments to the judiciary during the so-
called midnight appointment ban period? Assuming that he can still make appointments, could he
appoint Margie, his cousin? (4%)

VIII.

The President, concerned about persistent reports of widespread irregularities and shenanigans related
to the alleged ghost projects with which the pork barrel funds of members of Congress had been
associated, decided not to release the funds authorized under a Special Appropriations Act for the
construction of a new bridge. The Chief Executive explained that, to pro perly conserve and preserve the
limited funds of the government, as well as to avoid further mistrust by the people, such a project –
which he considered as unnecessary since there was an old bridge near the proposed bridge which was
still functional – should be scrapped. Does the President have such authority? (4%)

IX.

Gerrymandering refers to the practice of: (1%)

(A) creating or dividing congressional districts in a manner intended to favor a particular party or
candidate

(B) truancy as applied to Members of Congress

 (C) loafing among members of Congress

(D) coming up with guessing game when it comes to legislation

(E) commandeering large chunks of the budget for favoured congressional districts

X.

The void-for-vagueness doctrine is a concept which means that: (1%)

(A) if a law is vague, then it must be void

(B) any law which could not be understood by laymen is a nullity

(C) if a law is incomprehensible to ordinary people such that they do not really know what is required or
prohibited, then the law must be struck down

(D) a government regulation that lacks clear standards is nonsensical and useless as a guide for human
conduct

(E) clarity in legal language is a mandate of due process.

XI.

In keeping with the modern age of instant and incessant information and transformation, Congress
passed Cybercrime Prevention Act to regulate access to and use of the amenities of the cyberspace.
While ostensibly the law is intended to protect the interests of society, some of its provisions were also
seen as impermissibly invading and impairing widely cherished liberties of the people particularly the
freedom of expression. Before the law could even be implemented, petitions were filed in the Supreme
Court questioning said provisions by people who felt threatened, for themselves as well as for the
benefit of others who may be similarly affected but not minded enough to challenge the law. The
Solicitor General countered that there is no basis for the exercise of the power of judicial review since
there has yet been no violation of the law, and therefore, there is no actual case or controversy to speak
of, aside from the fact that the petitioners have no locus standi since they do not claim to be in
imminent danger of being prosecuted under the law. Can the Court proceed to decide the case even if
the law has not yet become effective? (4%)

XII.

The Court had adopted the practice of announcing its decision in important, controversial or interesting
cases the moment the votes had been taken among the justices, even as the final printed decision and
separate opinions are not yet available to the public. In a greatly anticipated decision in a case of wide-
ranging ramifications, the voting was close – 8 for the majority, while 7 were for the other side. After the
Court had thus voted, it issued a press release announcing the result, with the advice that the printed
copy of the decision, together with the separate opinions, were to be issued subsequently. The following
day, however, one of the members of the Court died. The Court then announced that it would
deliberate anew on the case since apparently the one who died belonged to the majority. Citizens for
Transparency, a group of civic-spirited professionals and ordinary citizens dedicated to transparency and
accountability in the government, questioned the act of the Court. The petitioners claimed the decision
had already been validly adopted and promulgated. Therefore, it could no longer be recalled by the
Court. At the same time, the group also asked the Court to disclose to the public the original decision
and the separate opinions of the magistrates, together with what they had deliberated on just before
they came up with the press release about the 8-7 decision. (6%)

(A) Was the announced 8-7 decision already validly promulgated and thus not subject to recall?

(B) If the decision was not yet finalized at the time when the justice died, could it still be promulgated?

(C) If the decision was still being finalized, should the Court release to the public the majority decision
and the separate opinions as originally announced, together with their deliberations on the issues?

XIII.

Congress may increase the appellate jurisdiction of the Supreme Court: (1%)

(A) anytime it wants

 (B) if requested by the Supreme Court

(C) upon recommendation of the President

(D) only with the advice and concurrence of the Supreme Court

(E) whenever it deems it appropriate, advisable or necessary

XIV.

The guarantee of freedom of expression signifies: (1%)

(A) absolute freedom to express oneself

(B) freedom from prior restraint

(C) right to freely speak on anything without limitations

(D) the right of the government to regulate speech

(E) the right of broadcast stations to air any program

XV.

Allmighty Apostles is a relatively new religious group and movement with fast-growing membership.
One time, DeepThroat, an investigative reporter, made a research and study as to what the group’s
leader, Maskeraid was actually doing. DeepThroat eventually came up with the conclusion that
Maskeraid was a phony who is just fooling the simple-minded people to part with their money in
exchange for the promise of eternal happiness in some far -away heaven. This was published in a
newspaper which caused much agitation among the followers of Maskeraid. Some threatened violence
against DeepThroat, while some others already started destroying properties while hurting those selling
the newspaper. The local authorities, afraid of the public disorder that such followers might do, decided
to ban the distribution of the newspaper containing the article. DeepThroat went to court complaining
about the prohibition placed on the dissemination of his article. He claims that the act of the authorities
partakes of the nature of heckler’s veto, thus a violation of the guaranty of press freedom. On th e other
hand, the authorities counter that the act was necessary to protect the public order and the greater
interest of the community. If you were the judge, how would you resolve the issue? (4%)

XVI.

The overbreadth doctrine posits that the government: (1%)

(A) must know the extent of its power

(B) when it exercises too much power it is like someone with bad breath – it is not healthy to society

(C) can enact laws which can reach outside its borders, like long -arm statues

(D) the government is prohibited in banning unprotected speech if a substantial amount of protected
speech is restrained or chilled in the process

XVII.

Towards the end of the year, the Commission on Audit (COA) sought the remainder of its appropriation
from the Department of Budge t and Management (DBM). However, the DBM refused because the COA
had not yet submitted a report on the expenditures relative to the earlier amount released to it. And,
pursuant to the "no report, no release" policy of the DBM, COA is not entitled to any further releases in
the meantime. COA counters that such a policy contravenes the guaranty of fiscal autonomy granted by
the Constitution. Is COA entitled to receive the rest of its appropriations even without complying with
the DBM policy? (4%)

XVIII.
 The National Building Code and its implementing rules provide, inter alia, that operators of shopping
centers and malls should provide parking and loading spaces, in accordance with a prescribed ratio. The
Solicitor General, heeding the call of the public for the provision of free parking spaces in malls, filed a
case to compel said business concerns to discontinue their practice of collecting parking fees. The mall
owners and operators oppose, saying that this is an invalid taking of their property, thus a violation of
due process. The Solicitor General justifies it, however, claiming that it is a valid exercise of police
power. Could the mall owners and operators be validly compelled to provide free parking to their
customers? (4%)

XIX.

Surveys Galore is an outfit involved in conducting nationwide surveys. In one such survey, it asked the
people about the degree of trust and confidence they had in several institutions of the government.
When the results came in, the judiciary was shown to be less trusted than most of the government
offices. The results were then published by the mass media. Assension, a trial court judge, felt
particularly offended by the news. He then issued a show-cause order against Surveys Galore directing
the survey entity to explain why it should not be cited in contempt for coming up with such a survey and
publishing the results which were so unflattering and degrading to the dignity of the judiciary. Surveys
Galore immediately assailed the show-cause order of Judge Assension, arguing that it is violative of the
constitutional guaranty of freedom of expression. Is Surveys Galore’s petition meritorious? (4%)

XX.

Under the so-called doctrine of qualified political agency, (1%)

(A) civil servants must first qualify before they could be appointed to office

(B) all employees in the government are merely agents of the people

(C) the acts of subordinates presumptively of those of the heads of offices disapproves them

(D) members of the Cabinet must have the absolute trust and confidence of the President

XXI.
 Constituent power refers to the authority (1%)

(A) of public officials to command respect

(B) given to Congress to enact police power measures

(C) to propose constitutional amendments or revisions

(D) of the people to take back the power entrusted to those in government

(E) of the President to call out the armed forces to suppress lawless violence

XXII.

The National Power and Grid Corporation (NPGC), a government entity involved in power generation
distribution, had its transmissi on lines traverse some fields belonging to Farmerjoe. NPGC did so
without instituting any expropriation proceedings. Farmerjoe, not knowing any better, did not
immediately press his claim for payment until after ten years later when a son of his took up Law and
told him that he had a right to claim compensation. That was then the only time that Farmerjoe
earnestly demanded payment. When the NPGC ignored him, he instituted a case for payment of just
compensation. In defense, NPGC pointed out that the claim had already prescribed since under its
Charter it is clearly provided that "actions for damages must be filed within five years after the rights of
way, transmission lines, substations, plants or other facilities shall have been established and that after
said period, no suit shall be brought to question the said rights of way, transmission lines, substations,
plants or other facilities." If you were the lawyer of Farmerjoe, how would you protect and vindicate the
rights of your client? (4%)

XXIII.

The police got a report about a shooting incident during a town fiesta. One person was killed. The police
immediately went to the scene and started asking the people about what they witnessed. In due time,
they were pointed to Edward Gunman, a security guard, as the possible malefactor. Edward was then
having refreshment in one of the eateries when the police approached him. They asked him if he had a
gun to which question he answered yes. Then they asked if he had seen anybody shot in the vicinity just
a few minutes earlier and this time he said he did not know about it. After a few more questions, one of
the policemen asked Edward if he was the shooter. He said no, but then the policeman who asked him
told him that several witnesses pointed to hi m as the shooter. Whereupon Edward broke down and
started explaining that it was a matter of self-defense. Edwardwas eventually charged with murder.
During his trial, the statements he made to the police were introduced as evidence against him. He obj
ected claiming that they were inadmissible since he was not given his Miranda rights. On the other
hand, the prosecution countered that there was no need for such rights to be given since he was not yet
arrested at the time of the questioning. If you wer e the judge, how would you rule on the issue? (4%)

XXIV.

Alienmae is a foreign tourist. She was asked certain questions in regard to a complaint that was filed
against her by someone who claimed to have been defrauded by her. Alienmae answered all the
questions asked, except in regard to some matters in which she invoked her right against self-
incrimination. When she was pressed to elucidate, she said that the questions being asked might tend to
elicit incriminating answers insofar as her home state is concerned. Could Alienmae invoke the right
against self-incrimination if the fear of incrimination is in regard to her foreign law? (4%)

XXV.

Rosebud is a natural-born Filipino woman who got married to Rockcold, a citizen of State Frozen. By
virtue of the laws of Frozen, any person who marries its citizens would automatically be deemed its own
citizen. After ten years of marriage, Rosebud, who has split her time between the Philippines and
Frozen, decided to run for Congress. Her opponent sought her disqualification, however, claiming that
she is no longer a natural-born citizen. In any event, she could not seek elective position since she never
renounced her foreign citizenship pursuant to the Citizenship Retention and Reacquisition Act (R.A. No.
9225). Is Rosebuddisqualified to run by reason of citizenship? (4%)

XXVI.

The one-year-bar rule in impeachment proceedings is to be reckoned from the time the (1%)

(A) first impeachment complaint is filed

 (B) impeachment complaint is referred to the Committee on Justice

(C) House of Representatives vote on the impeachment complaint

(D) House of Representatives endorses the Articles of Impeachment to the Senate

XXVII.

Congress enacted a law exempting certain government institutions providing social services from the
payment of court fees. Atty. Kristopher Timoteo challenged the constitutionality of the said law on the
ground that only the Supreme Court has the power to fix and exempt said entities from the payment of
court fees.

Congress, on the other hand, argues that the law is constitutional as it has the power to enact said law
for it was through legislative fiat that the Judiciary Development Fund (JDF) and the Special Allowance
for Judges and Justices (SAJJ), the funding of which are sourced from the fees collected by the courts,
were created. Thus, Congress further argues that if it can enact a law utilizing court fees to fund the JDF
and SAJJ, a fortiori it can enact a law exempting the payment of court fees.

Discuss the constitutionality of the said law, taking into account the arguments of both parties? (4%)

XXVIII.

From an existing province, Wideland, Congress created a new province, Hundred Isles, consisting of
several islands, with an aggregate area of 500 square kilometres. The law creating Hundred Isles was
duly approved in a plebiscite called for that purpose. Juan, a taxpayer and a resident of Wideland,
assailed the creation of Hundred Isles claiming that it did not comply with the area requirement as set
out in the Local Government Code, i.e., an area of at least 2,000 square kilometres. The proponents
justified the creation, however, pointing out that the Rules and Regulations Implementing the Local
Government Code states that "the land area requirement shall not apply where the pr oposed province
is composed of one (1) or more islands." Accordingly, since the new province consists of several islands,
the area requirement need not be satisfied. How tenable is the position of the proponents? (4%)

XXIX.
 Ambassador Gaylor is State Juvenus’ diplomatic representative to State Hinterlands. During one of his
vacations, Ambassador Gaylor decided to experience for himself the sights and sounds of State Paradise,
a country known for its beauty and other attractions. While in State Paradise, Ambassador Gaylor was
caught in the company of children under suspicious circumstances. He was arrested for violation of the
strict anti-pedophilia statute of State Paradise. He claims that he is immune from arrest and
incarceration by virtue of his diplomatic immunity. Does the claim of Ambassador Gaylor hold water?
(4%)

XXX.

Congress passed a law, R.A. No. 15005, creating an administrative Board principally tasked with the
supervision and regulation of legal education. The Board was attached to the Department of Education.
It was empowered, among others, to prescribe minimum standards for law admission and minimum
qualifications of faculty members, the basic curricula for the course of study aligned to the requirements
for admission to the Bar, law practice and social consciousness, as well as to establish a law practice
internship as a requirement for taking the Bar which a law student shall undergo anytime during the law
course, and to adopt a system of continuing legal education. Professor Boombastick, a long-time law
practitioner and lecturer in several prestigious law schools, assails the constitutionality of the law
arguing; that it encroached on the prerogatives of the Supreme Court to promulgate rules relative to
admission to the pra ctice of law, the Integrated Bar, and legal assistance to the underprivileged. If you
were Professor Boombastick’s understudy, how may you help him develop clear, concise and cogent
arguments in support of his position based on the present Constitution and the decisions of the
Supreme Court on judicial independence and fiscal autonomy? (4%)

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