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1. X is a depositor of AAA Bank. She has three (3) deposit accounts all under
her name. One, in checking account, one in saving account and another one in
time deposit account. Each account has a balance of Php250,000. AAA Bank
became insolvent. Philippine Deposit Insurance Corporation closed the Bank. X
therefore is unable to withdraw from all of the accounts. She then filed her
claims with the Philippine Deposit Insurance Corporation. Which statement is
most accurate?
a. X can claim a total of Php500,000 for all the three (3) accounts.
b. X can only claim from one (1) account of Php250,000.
c. X can claim a total of Php750,000 from all the three (3) accounts.
d. X cannot claim anything from any of the deposit accounts.
2. The Bank Secrecy Law (RA 1405) prohibits disclosing any information about
deposit records of an individual without court order except -
a. In an examination to determine gross estate of a decedent.
b. In an investigation for violation of Anti-Graft and Corrupt Practices.
c. In an investigation by the Ombudsman.
d. In an impeachment proceeding.
5. X's painting of Madonna and Child was used by her mother to print some
personalized gift wrapper. As part of her mother's efforts to raise funds for
Bantay Bata, the mother of X sold the wrapper to friends. Y, an entrepreneur,
liked the painting in the wrapper and made many copies and sold the same
through National Bookstore. Which statement is most accurate?
a. Y can use the painting for his use because this is not a copyrightable
material.
b. X can sue Y for infringement because artistic works are protected from
moment of creation.
c. Works of art need to be copyrighted also to get protection under the
law.
7. The Fair Use Doctrine allows others to utilize copyrighted works under certain
conditions. The factors to consider whether use is fair or not would be the
purpose and character of the use, nature of the copyrighted work, amount and
substantiality of the portions used, and what else?
a. Effect of the use upon the creator of the work.
b. Effect of the use upon the potential market of the work.
c. Effect of the use upon the public in general.
d. Effect of the use upon the class in which the creator belongs.
8. XYZ Corporation bought ten (1 0) units of Honda Civic from CCC Corporation.
ABC Bank granted a loan to XYC Corporation which executed a financing agreement
which provided for the principal amount, the installment payments, the
interest rates and the due dates. On due dates of the installment payments,
XYZ Corporation was asked to pay for some handling charges and other fees
which were not mentioned in the Financing Agreement. Can XYC Corporation
refuse to pay the same?
a. No, because handling charges and other fees are usual in certain
banking transactions.
b. Yes, because ABC Bank is required to provide XYZ Corporation not only
the amount of the monthly installments but also the details of the
finance charges as required by the Truth in Lending Act.
c. No, because the Finance Agreement is a valid document to establish the
existence of the obligation.
d. Yes, because legally, finance charges are never allowed in any banking
transaction.
10. The Anti-Money Laundering Law is a law that seeks to prevent money
laundering activities by providing for more transparency in the Philippine
Financial System, hence the following institutions are covered by the law,
except:
a. Bank and any financial institutions;
b. Pawnshops;
c. Casino operators;
d. All of the above.
12. The main feature of the Foreign Investment Act of 1991 is to introduce
the concept of "Negative Lists". Under the said law, what is a "Negative
List"?
a. It is a list of business activities or enterprises in the Philippines
that foreigners are disqualified to engage in.
b. It is a list of business activities or enterprises in the Philippines
that foreigners are qualified to engage in.
c. It is a list of business activities or enterprises that are open to
foreign investments provided it is with the approval of the Board of
Investment.
d. It is a list of business activities or enterprises that are open to
foreign investments provided it is with the approval of the Securities
and Exchange Commission.
13. May a publicly listed universal bank own 100% of the voting stocks in
another universal bank and in a commercial bank?
a. Yes, if with the permission of the Bangko Sentral ng Pilipinas.
b. No, since it has no power to invest in equities.
c. Yes, as there is no prohibition on it.
d. No, since under the law, the 100% ownership on voting stocks must be
in either bank only.
16. Under the Financial Rehabilitation and Insolvency Act (FRIA), the
filing of a petition for voluntary rehabilitation must be approved by:
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
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17. X, who is the Executive Vice President of ABC Corporation, a listed
company, can be held liable or guilty of insider trading if, he -
a. Bought shares of ABC Corporation when it was planning to acquire another
company to improve its asset base, the news of which increased the price
of the shares in the Stock Exchange.
b. Bought shares of XYC Corporation, a sister company of ABC Corporation
when he learned that XYC Corporation was about to also list its share
in the Philippine Stock Exchange.
c. Bought shares of ZZZ Corporation when he learned that ABC Corporation
would acquire ZZZ Corporation.
d. All of the above.
21. The government agency granted with the power of supervision and
examination over banks and non-bank financial institutions performing quasi-
banking functions, to ensure that the conduct of its business is on a sound
financial basis that will provide continued solvency and liquidity is -
a. The Philippine Deposit Insurance Corporation;
b. The Bangko Sentral ng Pilipinas;
c. The Anti-Money Laundering Council;
d. The Securities and Exchange Commission.
22. X maintains a savings deposit in the amount of Php·1 Million with ABC
Bank Corporation. X also has obtained a loan from ABC Bank Corporation in the
amount of Php1 Million. In case of default,
a. ABC Bank can set-off the loan from the savings account being
maintained by X with ABC Bank.
b. Set-off is not possible because legal compensation is not allowed in
banking transaction.
c. Deposit accounts are usually earmarked for specific purpose hence
offsetting is not legally possible.
d. Off -setting is not possible because the obligation of X is a "simple
loan".
24. XXX Bank Corporation and ZZZ Corporation were merged into XX ZZ Bank
Corporation. So as not to create any unnecessary conflict, all the former
directors of both banks wanted to be appointed /elected as members of the
Board of Directors of the merged bank. Each bank used to have eleven (11)
members of the board. The maximum number of directors of the merged bank is
a. 15;
b. 22;
c. 21;
d. 11.
25. All senior officers of ABC Bank are entitled to obtain a housing loan.
X is an Executive Vice President for Operations of ABC Bank. She obtained a
housing loan with the ABC Bank. Which statement is most accurate?
a. The housing loan of X requires a guarantor from somebody who is not
connected with the bank.
b. The housing loan of X requires the approval of the Board of Directors
of the bank.
c. The housing loan of X, being a benefit for employees, does not require
(a) but will require (b).
d. The housing loan of X, being a benefit for employees, will not require
(a) and (b).
26. ABC Holdings Company, a Hong Kong company, owns 10% of XYZ Bank. Because
of the peace and order situation in the Philippines, ABC Holding Company
wanted to sell its shareholdings in XYZ Bank. Unfortunately, nobody is
interested to buy a 1 0% shareholdings in a bank. The board of directors of
XYZ Bank thought that it would be a good idea to buy back the shares owned by
ABC Holding Company. Which statement is most accurate?
a. Buying back the shares by XYZ Bank is absolutely not allowed.
b. Buying back the shares may be allowed provided it is with the approval
of the Monetary Board and disposed of within six (6) months.
c. Buying back the shares may be allowed provided such shares 'will be
disposed of within ten (1 0) years.
d. Buying back the shares may be done anytime provided the Board of
Directors will approve the same.
29. X is a depositor of AAA Bank. She has three (3) deposit accounts all
under her name. One, in checking account, one in saving account and another
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one in time deposit account. Each account has a balance of Php250,000. AAA
Bank became insolvent. Philippine Deposit Insurance Corporation closed the
Bank. X therefore is unable to withdraw from all of the accounts. She then
filed her claims with the Philippine Deposit Insurance Corporation. Which
statement is most accurate?
a. X can claim a total of Php500,000 for all the three (3) accounts.
b. X can only claim from one (1) account of Php250,000.
c. X can claim a total of Php750,000 from all the three (3) accounts.
d. X cannot claim anything from any of the deposit accounts.
30. The Bank Secrecy Law (RA 1405) prohibits disclosing any information
about deposit records of an individual without court order except -
a. In an examination to determine gross estate of a decedent.
b. In an investigation for violation of Anti-Graft and Corrupt Practices.
c. In an investigation by the Ombudsman.
d. In an impeachment proceeding.
33. Apart from economic rights, the author of a copyright also has moral
rights which he may transfer by way of assignment. The term of these moral
rights shall last
a. During the author's lifetime and for 50 years after his death.
b. Forever.
c. 50 years from the time the author created his work.
d. During the author's lifetime.
34. X invented a device which, through the use of noise, can recharge a
cellphone battery. He applied for and was granted a patent on his device,
effective within the Philippines. As it turns out, a year before the grant of
X's patent, Y, also an inventor, invented a similar device which he used in
his cellphone business in Manila. But X files an injunctive suit against Y to
stop him from using the device on the ground of patent infringement. Will the
suit prosper?
a. No, since the correct remedy for X is a civil action for damages.
b. No, since Y is a prior user in good faith.
c. Yes, since X is the first to register his device for patent
registration.
d. Yes, since Y unwittingly used X’s patented invention.
35. It is a legal scheme whereby a debtor, who has sufficient assets but who
may be unable to meet his obligations as and when they fall due, may petition
for more time within which to settle such obligations.
a. Insolvency Proceedings
b. Suspension of Payments
c. Corporate Rehabilitation
d. Voluntary Insolvency
36. Samsung invented a cellular phone that can also play digital music or
MP3s. It applied for the issuance of letters patent.
a. The invention is not patentable because it is a combination of old
functions which does not produce a new result.
b. The invention is patentable because it is a new product which is
beneficial to the public.
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c. The invention is not patentable because Samsung is a foreign
corporation and it should file its application in its home country.
d. The invention is patentable because it combines existing elements, a
cellular phone and a digital music player, and produces a new and
useful result, namely, the convenience of having two gadgets in one.
37. Lucky Me registered its trademark, “Ang Sarap Pancit Palabok” with the
Intellectual Property Office. Nissin subsequently introduced its new
product, “Ang Sarap Pinoy Ramen”. Lucky Me sued for trademark infringement.
a. Nissin is not guilty of trademark infringement because the trademark
“Ang Sarap” is descriptive, hence not capable of exclusive
appropriation.
b. Nissin is not guilty of trademark infringement because its product,
Pinoy Ramen, belongs to a different category from Lucky Me’s
product, Pancit Palabok.
c. Nissin is guilty of trademark infringement because it did not
register its trademark “Ang Sarap Pinoy Ramen”.
d. Nissin is guilty of trademark infringement because the trademark
“Ang Sarap” is fanciful and arbitrary, hence capable of exclusive
appropriation.
38. Center Book Store is the publisher of the book Legal Journal. It donated
one copy to the Library of the U.E. College of Law. The Library, in order to
preserve the original book, reproduced one copy of the Journal for lending to
the University’s students for room use. Is the U.E. Law Library liable for
copyright infringement?
a. No. The reproduction is consistent with fair use.
b. Yes. Only the National Library is allowed to reproduce books and
other works.
c. No. The copy of the Journal is marked “For Room Use Only” and is
therefore not made available to the public outside of the Library.
d. Yes. The law only allows a library to photocopy a book if it is
fragile or rare.
39. Which among the following is not a function of the Bangko Sentral ng
Pilipinas?
a. As official depositary of the Philippine government.
b. As financial adviser of the Philippine government.
c. As fiscal agent of the Philippine government.
d. As the watchdog of government funds.
40. No. 1 – A bank may be may lend to a single borrower more than fifteen
(15%) of the bank’s unimpaired capital.
No. 2 – A deposit in a bank in foreign currency may be inquired into
provided the depositor gives his consent, orally or in writing.
a. Both are false.
b. Both are true.
c. No. 1 is true; no. 2 is false.
d. No. 1 is true; no. 2 is false.
42. No. 1 - The Ombudsman may inquire into the bank deposit of a public
officer whose case is pending criminal investigation in the Ombudsman even if
there is no actual case filed in court.
No. 2 - A writ of garnishment directed to a bank deposit is prohibited
by law.
a. Both are false.
b. Both are true.
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TOPICS c. No. 1 is false; No. 2 is true.
d. No. 1 is true; No. 2 is false
43. Jose and his wife, Perla, opened and maintained the following accounts
with Allied Bank Recto. (a) Savings deposit – P300,000; (b) Demand deposit –
P400,000; (c) Time deposit - P350,000. They also have the same deposits with
the same amount in Allied Bank Makati. If Allied bank becomes insolvent the
Philippine Deposit Insurance Corporation will be bound to be liable to the
spouses for its insurance liability equivalent to
a. Two deposits.
b. One deposit.
c. Six deposits.
d. Three deposits.
45. Which among the following securities transactions require that the
securities be registered in order to be compliant with the Securities
Regulation Code?
a. A sale of capital stock of a corporation to its own stockholders
only where no fee is paid in connection with the sale.
b. A bank selling its own securities.
c. An insurance company selling its own securities.
d. The transaction of a broker on the PSE pursuant to his client's
orders.
50. A bank is NOT liable for its failure to observe the degree of diligence
as required by its fiduciary duty under Sec. 2 of the GBL of 2000.
a. If such failure was prior to the enactment of the GBL of 2000.
b. If no actual damage was suffered by the depositor.
c. If the transaction involves money market placements.
d. If there is a contractual stipulation between the bank and the depositor
supported by valuable consideration which lowers the degree of diligence
required to be exercised by the bank to that of a good father of family.
52. A universal bank and a commercial bank differ in terms of their power
–
a. To invest in non-financial allied enterprises.
b. To create and accept demand deposits.
c. To act as investment house.
d. To perform quasi-banking functions.
54. The distinction between the three modes of entry of foreign banks in the
Philippines under the Foreign Banks Liberalization Act is material in
determining –
a. Whether or not a foreign bank may avail of more than one mode of entry.
b. Whether or not Monetary Board Approval is required for such entry.
c. Whether or not head office guarantee is required.
d. Whether or not the foreign bank shall perform the same functions enjoy the
same privileges, and be subject to the same limitations imposed upon a
Philippine bank of the same category.
55. The head office of a foreign bank authorized to operate branches in the
Philippines is sued in a Philippine court by a payee of a check drawn by
a depositor of the Philippine branch of such foreign bank which refused to
honor a check notwithstanding that funds were sufficient. What defense can
the head office raise to avoid liability to such payee?
a. Philippine courts have no jurisdiction over the head office of the
foreign bank.
b. The head office of a foreign bank is not liable for the unauthorized acts
of its Philippine branch.
c. The head office guarantee is applicable only to liabilities to
depositors.
d. The bank is not liable to the payee for dishonor of checks.
60. What can a bank lawfully do or omit to do without violating its duty
to exercise extraordinary diligence in the handling of deposits?
a. Allowing a crossed check to be cashed provided that the payee is
personally known to the bank.
b. Accepting as deposit a check which is not indorsed by the payee, provided
that the check is a manager’s check.
c. Closing a demand deposit account with prior notice to a depositor who has
been misusing such account repeatedly overdrawing against it.
d. Disclosing information regarding “and/or” savings account where one of
the two depositors has given his written permission for such disclosure.
62. A public officer is charged with violation of the anti-graft and corrupt
practices act before the Office of the Ombudsman. The Ombudsman requests a
bank to disclose information regarding the accounts in the name of the public
officer’s immediate family. What principle or ground may the bank invoke to
resist such inquiry?
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a. An inquiry into bank deposits cannot be had at the preliminary
investigation level.
b. No inquiry into bank deposits can be had in the absence of a court order.
c. No inquiry can be made except into bank accounts of the person charged.
d. The office of the Ombudsman has no power to inquire into bank deposits.
65. XX applied for the issuance of a preliminary injunctive order on the ground
that she is entitled to the use of the trademark on product A and its container
based on her copyright and patent over the same. Can she do this?
a. Yes. These are registrable marks
b. No. These are not registrable marks
c. Yes, although its copyrightability and patentability should be
registered separately
d. No. These are rights which are not interchangeable. The granting of
one right will not necessarily apply to the other rights.
66. Which of the following are not included under technology transfer
arrangements under the IP code?
a. the licensing of a new management program in favor of a Philippine
company
b. the exact process of how to create a new and improved child-proof paint
c. the secret ingredient of the KFC original recipe chicken.
d. the use of Windows software in businesses.
a. Upon filing a motion in court, the court shall order for his
substitution as patentee
b. the court shall order for his substitution as patentee, or at the option
of the court, cancel the patent, and award actual and other damages in his
favor if warranted by the circumstances,
c. the court shall order for his substitution as patentee, or at the option of
the true inventor, cancel the patent, and award actual and other damages in
his favor if warranted by the circumstances
d. Upon a petition by the true inventor, cancel the patent, and award
actual and other damages in his favor if warranted by the circumstances.
71. Which of the following requisites are not included for an invention
to be patentable?
a. It is New, it has an inventive step, and it does not form part of a prior
art
b. It is New, it has an inventive step, and it is industrially applicable
c. It is new, it does not form part of a prior art and it is registered
d. None of the above
72. A Scientist has managed to create a new breed of pigs by altering its
DNA of which such has never existed prior to such act by the scientist. Is
the pig breed patentable?
a. No. Since it is immoral
b. Yes. Since the pig was created purely by the hand of the scientist
c. No. Since animal breeds are not patentable
d. Yes. Although the animal breeds are not patentable, the essential
micro-biological process is patentable
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b. B since a patent application in a foreign country has no effect
here in the Philippines
c. A since he filed his patent in Malaysia earlier and also he has
claimed priority expressly, and it is within 12 months from the
initial registration in Malaysia.
d. B since he was the first one to file his registration in
the Philippines
75. A was able to invent a new type of vehicle. However, B was able to
register the invention first although it was clearly A who was the true
inventor. What remedy may A avail of?
a. He will file a civil case of patent infringement
b. He can file for cancellation of patent plus damages
c. He can file for the substitution as the real patentee
d. Both A and C
76. A medicine already being distributed both in the U.S. and in the
Philippines by distributor VX authorized by the patent holder is now being
imported by A, a doctor who operates a small clinic and is using the drug
for the treatment of his patients. Is A liable for patent infringement?
a. Yes. A is liable since VX is the only authorized distributor of
the patented drug.
b. No. A is not liable since section 72 (1) allows such use of the
product.
c. Yes. A is liable since he is not an authorized distributor of
the product.
d. No. A is not liable since this is a case of fair use.
77. A has been importing patented medical drugs from Thailand. The patent
is owned by B. B has a local distribution unit in the Philippines. B wants
to file a case of patent infringement and importation of counterfeit drugs
against A. Will this prosper?
a. No. This is a case of fair use
b. Yes. A counterfeit drug is a form of infringement against the patent
of B.
c. No. An unregistered drug is not the same as a counterfeit drug and
also that section 72 (1) allows such importation by a 3rd party.
d. Yes. B has not authorized A to distribute the products.
79. B was selling a product of A who was the patent holder of B’s product.
Apparently, B has been passing A’s patent as his. A filed a criminal case of
infringement against B. will this prosper?
a. Yes. A is the rightful owner of the patent
b. No. B is exempted under the fair use doctrine
c. Yes. A never authorized B to sell such products as his.
d. No. B has yet to be found guilty of a previous infringement, hence A
has no cause of action.
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81. The provisions of compulsory licensing provides for instances where
the patent holder is required to grant a license to the government or to
a 3rd party. Is this provision unfair for depriving the patent holder of
his right to his property?
a. No. This is a case of eminent domain.
b. Yes. This is a case of depriving the patent holder of his property
without due process of law
c. No. The patent holder is not deprived of his rights to the
patent since he will still receive royalties for his patents.
d. Yes. The patent holder has exclusive rights over his patents and
such exclusivity is rendered inutile by the provision.
82. Q: Which of the following types of names confer the greatest chance
of being a valid trademark?
a. Generic
b. Descriptive
c. Suggestive
d. Arbitrary/Fanciful
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88. A reporter wants to write a true-to-life story about a person who
was kidnapped and buried alive for 83 hours. The reporter then extensively
interviewed the survivor and spent several months coming up with a book
documenting the plight of the survivor. A Hollywood studio company then
made a movie out of the ordeal of the survivor. The reporter is saying that
even though the movie was not based on the book, the research he has spent
documenting the event was copyrightable. Is the contention of the reporter
correct?
A. Yes, considering that the research material used served as the foundation
for the subsequent book of the reporter about the survivor.
B. Yes, considering that the reporter has exerted substantial time
and effort in his research, it is copyrightable.
C. No, facts and research involved in obtaining facts should not
be distinguished, and are not copyrightable.
D. No. the subject matter is not copyrightable.
92. Bank accounts maybe garnished by the creditors of the depositor. Which
of the following deposits are exempt from garnishment?
a. Foreign Currency deposits and those exempt by rules of Civil Procedure
like provision for the family for four months.
b. Deposit that have become dormant for a period of ten (10) years.
c. Money or security or other evidence of indebtedness of any kind and
interests thereon with banks, buildings and loan associations.
d. Loans and other credit accommodations with maturities of more than five
(5) years.
93. An Act that vests the Bangko Central ng Pilipinas with the sole power
and authority to issue currency within the territory of the Philippines
a. Act No. 3936 -Private Development Banks
b. R.A. 9302- Thrift Banks Act
c. The New Central Bank Act
d. R.A. 6848- Islamic Investment Bank of the Philippines
94. When may the Anti- Money Laundering Council (AMLC) perform an inquiry
into deposits of a person?
a. For purposes of determining his liabilities.
b. To determine his assets with proper court order.
c. Upon order of the court when there is probable cause that the deposits
are related to crime of unlawful activities defined in R.A. 9194
d. When there is written consent of the depositor.
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95. The total amount of loans, credit accommodations and guarantees that may
be extended by a bank to any person, partnership, association, corporation,
or other entity is known as CEILING.
What is the percentage required of the net worth of such bank?
a. 20%
b. 30%
c. 25%
d. 35%
96. The BSP upon approval of at least five (5) members of the Monetary Board,
may also grant this kind of loan or advances in the amount not exceeding 50%
of its total deposits and deposits substitutes is known as:
a. Loans without collateral
b. Emergency loans
c. Salary loans
d. Banking loans
97. The powers that may be conferred to the conservator are such powers as
may be necessary in Conservatorship except:
a. To take charge of the assets, liabilities, and the management
b. To reorganize the management of the subject bank
c. To collect all monies and debts due and exercise all powers necessary to
restore its viability
d. All of the above
a. Partnership Business
b. Trust Business
c. Corporation Business
d. Trusteeship Business
101. Which of the following statement is not true about the nature of
Banking business?
103. All of the following are exceptions to the Bank Secrecy Law except?
a. Upon order of the competent court in cases involving Graft and Corrupt
Practices Act
b. Examination by an independent auditor hired by the bank
c. The BSP and PDIC to the Corporation and/or Bangko Sentral may inquire
into or examine deposit accounts pursuant to explanation
d. In- camera inspection by the Ombudsman
104. The following are the grounds when the Monetary Board may close a bank
or quasi-bank except?
a. If unable to pay its liabilities (cash flow test)
b. Has insufficient realizable assets to meet its liabilities (balance sheet
test)
c. If cannot continue without involving probable losses to its depositors or
creditors.
d. It persistently conducts business in a sound and safe manner
105. As part of the safeguards against imprudent banking, the General Banking
Law imposes limits or restrictions on loans and credit accommodations which
may be extended by banks. Which of the following are not considered limits
and restriction on loans and credit accommodation?
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107. Ritchie love to shop and she has a habit of paying only in cash. In one
of her shopping sprees in SM North Edsa, she got the shock of he life when
for the first time, a store cashier refuse to accept her coins in payment for
a purchase worth not more than one hundred pesos. Ritchie was paying 70 pesos
in 25-centavo coins and twenty five pesos in 10-centavo coin. The salesgirl
told her that her coins where not legal tender. Do you agree?
a. Yes, Coins shall be legal tender in amounts not exceeding P 75.00 for
denominations of 25 centavos and above and 25.00 for denominations of 10
centavos or less
b. No. Coins shall be legal tender in amounts not exceeding P 100.00 for
denominations of 25 centavos and above and 25.00 for denominations of 10
centavos or less
c. Yes. All notes and coins shall be legal tender for all debts , public and
private, in amounts not exceeding 100 for denominations of 1, 5, 10 and 25
sentimo coins
d. Yes. All notes and coins issued by the Bangko Sentral shall be fully guaranteed
as legal tender in the Philippines unless otherwise fixed by the Monetary
Board, that coins shall be legal tender in amounts not exceeding Fifty pesos
(P50.00) for denominations of Twenty-five centavos and above, and in amounts
not exceeding Twenty pesos (P20.00) for denominations of Ten centavos or
less.
a. Yes, because the book was photocopied without the consent of the author and
used publicly in a classroom.
b. No, because the private reproduction of a published work in a single copy,
where the reproduction is made by a natural person exclusively for research
and private study, shall be permitted, without the authorization of the owner
of copyright in the work.
c. No, because Mr. Dela Cruz reproduced a single copy only, exclusively for his
private study and he did not gain any profit for photocopying some of the
pages of the book.
d. No, because he did not reproduced the whole book but only some of its pages,
it can be permitted even without the consent of the owner of the copyright.
110. Kris Aquino commissioned Mr. Magaling to write a biography of her late
father, Ninoy Aquino, for a fee. Upon completion of the work, Kris paid Mr.
Magaling the agreed price. The biography was copyrighted. Kris, however,
changed her mind again upon reading the book and decided not to have it
published. Can Kris Aquino sell the property without the consent of Mr.
Magaling?
a. Yes, Kris Aquino can sell the copyrighted biography of her father without
need of securing the consent of Mr. Magaling, the writer of said biography.
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b. Mr. Magaling entered into a contract with Kris Aquino and having compensated,
he had parted with all his rights to the said book, in effect making Kris
his assignee.
c. The assignee’s rights include the right to sell the work without the consent
of the writer, Mr. Magaling.
d. All of the above
111. Atty. Ana Maganda wrote a legal opinion for a client on the differences
of a probationary, regular, casual and seasonal employee. She quoted without
permission Atty. Aliling’s comment appearing in his book “Annotations on the
Labor Code”, but she indicated the source of the quotation, the book and the
author’s name. Atty Aliling is a labor law expert. Can Atty. Aliling hold
Atty. Ana Maganda liable for infringement of copyright for quoting a portion
of his book without his permission?
a. Yes, because Atty. Ana Maganda copied somebody else’s work without the
original author’s consent.
b. No, because the Intellectual Property Code provides that a quotation from a
copyrighted work can be used for judicial proceedings or for giving
professorial advice by legal practitioner, provided the source are
identified.
c. Yes, because Atty. Ana Maganda used the work of another for her own gain. d.
No, because everybody can quote somebody as long as the source and the name
of the author of the quotation are identified.
112. Read the following statements and determine which of the choices are
correct:
a. Element no. 1
b. Element No. 2
c. Element No. 3
d. All of the above
114. Unilevel Corporation asked your legal advice regarding their plan to use
a trademark with the words “SWEET CANDY” However, there is an existing and
registered trademark using the words “TWEET CANDY” Which of the following
advices are correct.
a. The firm must abandon the plan because another company uses the trademark
Tweet Candy and there is a danger of a suit for infringement. The words Sweet
and Tweet is almost similar in sound and they can confuse or mislead the
public.
b. They can use the SWEET CANDY as long as there will be a very different
packaging and flavors so as not to mislead the public.
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c. Unilevel is a well-known company and their products are patronized country-
wide, they can use the trademark SWEET CANDY because TWEET CANDY is owned by
a small-time company whose market is within Luzon only.
d. None of the above
116. The Sogod Hotel chain reproduces DVD’s, distributes the copies thereof
to its hotels and makes them available to hotel guests for viewing in the
hotel guest rooms and charges a separate fee for the use of the DVD players.
Is Sogod Hotel liable for infringement?
a. No, the DVD viewing is done privately in the hotel guest rooms.
b. Yes, because the reproduction of the DVD’s violate the copyright or
economic rights of the owner of the film. The hotel charge fees for the use
of DVD player as well as there are room charges, they earn gain from the use
of the DVD because it entices the guests to check-in in their hotel.
c. No, the DVD viewing is part of the hotel services and it is the use of the
DVD players that is charged and not the cost of the DVD.
d. None of the above
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