1.

In 1992, RA 7432 entitled “An Act to Maximize the Contribution of Senior Citizens to Nation-
Building, Grant Benefits and Special Privileges and For Other Purposes” was enacted where
Section 4 of the said law provided for the 20% discount on the purchase of medicine by senior
citizens. Section 4 further provided that private establishments may claim the cost as tax credit.
In 2004, RA 9257, amending certain provisions of RA 7432, was enacted modifying the tax
treatment of the discount granted to senior citizens from tax deduction from gross income
which shall be computed based on the net cost of goods sold or services rendered. Because of
the modification, ANNA, the owner of a Drugstore which was established by her ancestors
way back 1900, claimed that her business profit was affected, hence, she sought the help of
other drugstore owners and they all filed a case before the court questioning the
constitutionality of the provision modifying the tax treatment of the discount granted to senior
citizens mainly based on the ground that it is tantamount to taking of private property without
payment of just compensation. Will the case prosper? Why or why not? (10 pts.)

2. X obliged himself to deliver Y a specific horse on December 31, 2015. The carabao died
yesterday. Y has not proof that X was negligent. Is X liable to Y? Provide a comprehensive
answer with the statement of the laws applicable. (10 pts.)

3. A jeep driven by A bumped the rear side of the car driven by B. As a result, two of the
passengers of A suffered injuries. Because of the impact, the car of B bumped a pedestrian
who was running while crossing the pedestrian lane. After investigation, it was revealed that
A was actually drunk. Identify the sources of obligations that may have arisen in this incident.
Explain with reasons. (10 pts.)

4. One afternoon, ANNA went to the Baguio International Airport to meet his fiancée. In order
to easily spot her fiancée, ANNA went to the terrace of the airport. On her way, ANNA
slipped over an elevation about five inches high at the far end of the terrace. She then fell on
her back and broke her thigh bone. She was then operated the next day which took about
three hours. Because of her injuries, ANNA filed a case against the Civil Aeronautics Board
(CAA) being the entity in charge to administer, operate, manage, control, maintain and develop
the Baguio International Airport before the Regional Trial Court of Baguio City. During the
pendency of the case, an ocular inspection was conducted and it was determined that the
elevation which caused ANNA to slip was actually a dangerously sliding step which was indeed
the proximate cause of the injury of ANNA. With these facts, is the CAA liable for damages?
If so, what is the source of its obligation? Explain your answer. (10 pts.)

5. ANNA is the CEO of ABC Corporation engaged in manufacturing. In all their corporate
transactions, ANNA usually issues checks as payment for their purchases and these were
always honoured by the drawee bank. For her purchases in 2018, she likewise issued post-
dated checks on various dates, in favour of her supplier of raw materials, BELLA. A total of
10 checks drawn against Bank of the Philippine Islands (BPI) worth an aggregate total of
P1,000,000.00 was issued. However, upon presentment, these checks were dishonored by the
drawee bank for having been drawn against a closed account.

Thus, BELLA, through counsel, sent three demand letters regarding the 10 issued checks. In
answer, ANNA reasoned out that the dishonour of the checks was due to the Petition filed
by ABC Corporation with the Securities and Exchange Commission (SEC) for the Declaration
of a State of Suspension of Payments, for the Approval of a Rehabilitation Plan and
Appointment of a Management Committee. In action to the Petition, the SEC then issued an
Order suspending all actions, claims, and proceedings against ABC Corporation until further
order from the SEC Hearing Panel. Using the same reason, ABC Corporation did not still pay
BELLA.

Despite the explanation of ANNA, BELLA still presented the checks to BPI which were again
dishonoured on the same ground of closed account. Thereafter, BELLA then filed a
Complaint with the Office of the City Prosecutor charging ANNA with ten counts of violation
of Batas Pambansa Blg. 22 (B.P. 22) for the dishonoured checks. In her Counter-Affidavit,
ANNA reiterated that the dishonour was due to the order of suspension of payment issued
by the SEC. If you were the judge, will you rule in favour of BELLA or would you acquit
ANNA? Explain your answer. (10 pts.)