Today is Tuesday, October 04, 2016
Bar Examination Questionnaire for Commercial Law Set A
(1) P rode a Sentinel Liner bus going to Baguio fro !anila" #t a sto$%o&er in Ta Tarlac, rlac, t'e bus dri&er, t'e conductor, and t'e $assengers disebared for lunc'" P decided, 'oe&er, to reain in t'e bus, t'e door of 'ic' as not loced" #t t'is $oint, *, a &endor, sneaed into t'e bus and offered P soe refres'ents" +'en P rudely declined, * attaced 'i, resulting in P suffering fro bruises and contusions" oes 'e 'a&e cause to sue Sentinel Liner(#) .es, .es, since t'e carrier/s cre did not'ing to $rotect a $assenger 'o reained in t'e bus during t'e sto$%o&er" (B) o, since t'e carrier/s cre could no t 'a&e foreseen t'e attac" () .es, .es, since t'e bus is liable for anyt'ing t'at goes rong in t'e course of a tri$" () o, since t'e attac on P too $lace 'en t'e bus as at a sto$%o&er" (2) # cargo s'i$ of S'i$$ing, o" ran aground off t'e coast of ebu during a stor and lost all its cargo aounting to P'$30 !illion" T'e s'i$ itself suffered daages estiated at P'$0 !illion" T'e cargo oners filed a suit against S'i$$ing but it in&oed t'e doctrine of liited li ability since its &essel suffered an P'$0 !illion da age, ore t'an t'e collecti&e &alue of all lost cargo" 5s S'i$$ing correct(#) .es, .es, since under t'at doctrine, t'e &alue of t'e lost cargo and t'e daage to t'e s'i$ can be set%off" (B) o, since eac' cargo oner 'as a se$arate and indi&idual clai for daages" () .es, .es, since t'e etent of t'e s'i $7s daage as greater t'an t'at of t'e &alue of t'e lost cargo" () o, since S'i$$ing neit'er incurred a total loss nor abandoned its s'i$" (8) # rites a $roissory note in fa&or of 'is creditor, B" 5t says9 :Sub;ect to y o$tion, 5 $roise to $ay B P'$1 !illion or 'is order or gi&e P'$1 !illion ort' of ceent or to aut'ori
(4) #B or$" increased its ca$ital stocs fro P'$10 !illion to P'$13 !illion and, in t'e $rocess, issued 1,000 ne s'ares di&ided into oon S'ares :B: and o on S'ares :": T, T, a stoc'older oning 300 s'ares, insists on buying t'e nely issued s'ares t'roug' a rig't of $re%e$tion" T'e co$any clais, 'oe&er, t'at its By%las deny T any rig't of $re%e$tion" 5s t'e cor$oration correct(#) o, since t'e By%Las cannot deny a s'are'older 'is rig't of $re%e$tion" (B) .es, .es, but t'e denial of 'is $re%e$ti&e rig't etends only to 300 s'ares" () .es, .es, since t'e denial of t'e rig't under t'e By%las is binding on T" () o, since $re%e$ti&e rig'ts are go&erned b y t'e articles of incor$oration" (3) ! aes a $roissory note t'at states9 :5, !, $roise to $ay P'$3,000"00 to B or bearer" Signed, !": ! negotiated t'e note by deli&ery to B, B to , and to O" B 'ad non t'at ! as banru$t 'en ! issued t'e note" +'o ould be liable to O(#) ! and since t'ey ay be assued to no of !/s banru$tcy (B) , being O/s iediate negotiator of a bearer note () B, !, and , being indorsers by deli&ery of a bearer note () B, 'a&ing non of !/s banru$tcy (6) S deli&ered 10 boes of cell$'ones to Tre Bus Liner, for trans$ort fro !anila to 5locos Sur on t'e folloing da y, for 'ic' S $aid t'e freig'tage" !ean'ile, t'e boes ere stored in t'e bus liner7s liner 7s bodega" T'at nig't, 'oe&er, a robber broe into t'e bodega and stole S7s boes" S sues Tre Bus Liner for contractual breac' but t'e latter argues t'at S 'as n o cause of action based on suc' breac' since t'e loss occurred 'ile t'e goods aaited trans$ort" +'o is correct(#) T'e bus liner since t'e goods ere not lost 'ile being trans$orted" (B) S since t'e goods ere unconditionally $laced it' T for trans$ortation" () S since t'e freig'tage for t'e goods 'ad been $aid" () T'e bus liner since t'e loss as due to a fortuitous e&ent" (>) or$" o$erates a call center t'at recei&ed orders for $i<
t'e ot'er" () .es, since t'e to co$anies $erfor to distinct businesses" () # negotiable instruent can be indorsed by ay of a restricti&e indorseent, 'ic' $ro'ibits furt'er negotiation and constitutes t'e indorsee as agent of t'e indorser" #s agent, t'e indorsee 'as t'e rig't, aong ot'ers, to (#) deand $ayent of t'e instruent only" (B) notify t'e draer of t'e $ayent of t'e instruent" () recei&e $ayent of t'e instruent" () instruct t'at $ayent be ade to t'e dr aee" (?) @nder t'e egotiable 5nstruents La, a signature by $rocuration o$erates as a notice t'at t'e agent 'as but a liited aut'ority to sign" T'us, a $erson 'o taes a bill t'at is dran, acce$ted, or indorsed by $rocuration is duty%bound to in=uire into t'e etent of t'e agent/s aut'ority by9 (#) eaining t'e agent7s s$ecial $oer of attorney" (B) eaining t'e bill to deterine t'e etent of suc' aut'ority" () asing t'e agent about t'e etent of suc' aut'ority" () asing t'e $rinci$al about t'e etent of suc' aut'ority" (10) @nder t'e egotiable 5nstruents La, if t'e 'older 'as a lien on t'e instruent 'ic' arises eit'er fro a contract or by i$lication of la, 'e ould be a 'older for &alue to t'e etent of (#) 'is successor/s interest" (B) 'is $redecessor/s interest" () t'e lien in 'is fa&or" () t'e aount indicated on t'e instruent/s face" (11) T'e liability of a coon carrier for t'e goods it trans$orts begins fro t'e tie of (#) conditional recei$t" (B) constructi&e recei$t" () actual recei$t" () eit'er actual or constructi&e recei$t"
(12) On 7s failure to $ay 'is loan to #B Ban, t'e latter foreclosed t'e Aeal state !ortgage 'e eecuted in its fa&or" T'e auction sale as set for ec" 1, 2010 it' t'e notices of sale $ubl is'ed as t'e la re=uired" T'e sale as, 'oe&er, cancelled 'en ec" 1, 2010 as declared a 'oliday and re%sc'eduled to Can" 10, 2011 it'out re$ublication of notice" T'e auction sale t'en $roceeded on t'e ne date" @nder t'e circustances, t'e auction sale is (#) rescissible" (B) unenforceable" () &oid" () &oidable" (18) eecuted a $roissory note it' a face &alue of P'$30,000"00, $ayable to t'e order of ." . indorsed t'e note to D, to 'o . oed P'$80,000"00" 5f 'as no defense at all against ., for 'o uc' ay D collect fro (#) P'$20,000"00, as 'e is a 'older for &alue to t'e etent of t'e difference beteen ./s debt and t'e &alue of t'e note" (B) P'$80,000"00, as 'e is a 'older for &alue to t'e etent of 'is lien" () P'$30,000"00, but it' t'e obligation to 'old P'$20,000"00 for ./s benefit" () one, as D/s reedy is to run after 'is debtor, ." (14) @nder t'e #nti%!oney Laundering La, a co&ered institution is re=uired to aintain a syste of &erifying t'e true identity of t'eir clients as ell as $ersons $ur$orting to act on be'alf of (#) t'ose doing business it' suc' clients" (B) unnon $rinci$als" () t'e co&ered institution" () suc' clients" (13) 5t is settled t'at neit'er $ar &alue nor boo &alue is an accurate indicator of t'e fair &alue of a s'are of stoc of a cor$oration" #s to un$aid subscri$tions to its s'ares of stoc, as t'ey are regarded as cor$orate assets, t'ey s'ould be included in t'e (#) ca$ital &alue" (B) boo &alue" () $ar &alue" () aret &alue" (16) P sold to ! 10 gras of s'abu ort' P'$3,000"00" #s 'e 'ad no oney at t'e tie of t'e sale, ! rote a $roissory note $roising to $ay P or 'is or der P'$3,000" P t'en indorsed t'e note to ('o did not no about t'e s'abu), and to ." @nable
to collect fro P, . t'en sued on t'e note" set u$ t'e defense of illegality of consideration" 5s 'e correct(#) o, since , being a subse=uent indorser, arrants t'at t'e note is &alid and subsisting" (B) o, since , a general indorser, arrants t'at t'e note is &alid and subsisting" () .es, since a &oid contract does not gi&e rise to any rig't" () .es, since t'e note as born of an illegal consideration 'ic' is a real defense" (1>) 5n a contract of carriage, t'e coon carrier is liable for t'e i n;ury or deat' of a $assenger resulting fro its e$loyee7s fault alt'oug' t'e latter acted beyond t'e sco$e of 'is aut'ority" T'is is based on t'e (#) rule t'at t'e carrier 'as an i$lied duty to trans$ort t'e $assenger safely" (B) rule t'at t'e carrier 'as an e$ress duty to trans$ort t'e $assenger safely () octrine of Aes$ondeat Su$erior" () rule in cul$a a=uiliana" (1) # 'older in due course 'olds t'e instruent free fro any defect of title of $rior $arties and free fro defenses a&ailable to $rior $arties aong t'esel&es" #n ea$le of suc' a defense is % (#) fraud in induceent" (B) duress aounting to forgery" () fraud in esse contractus" () alteration" (1?) 5n elections for t'e Board of Trustees of non%stoc cor$orations, ebers ay cast as any &otes as t'ere are trustees to be elected but ay not cast ore t'an one &ote for one can didate" T'is is true % (#) unless set aside by t'e ebers in $lenary session" (B) in e&ery case e&en if t'e Board of Trustees resol&es ot'erise" () unless ot'erise $ro&ided in t'e #rticles of 5ncor$oration or in t'e By%las" () in e&ery case e&en if t'e a;ority of t'e ebers decide ot'erise during t'e elections" (20) T'e rule is t'at t'e &aluation of t'e s'ares of a stoc'older 'o eercises 'is a$$raisal rig'ts is deterined as of t'e day $rior to t'e date on 'ic' t'e &ote as taen" T'is is true % (#) regardless of any de$reciation or a $$reciation in t'e s'are/s fair &alue"
(B) regardless of any a$$reciation in t'e s'are/s fair &alue" () regardless of any de$reciation in t'e s'are/s fair &alue" () only if t'ere is no a$$reciation or de$reciation in t'e s'are/s fair &alue" (21) T S'i$$ing, o" insured all of its &essels it' A 5nsurance, o" T'e insurance $olicies stated t'at t'e insurer s'all anser for all daages due to $erils of t'e sea" One of t'e insured/s s'i$, t'e !* ona Priscilla, ran aground in t'e Panaa anal 'en its engine $i$es leaed and t'e oil see$ed into t'e cargo co$artent" T'e leaage as caused by t'e etensi&e ileage t'at t'e s'i$ 'ad accuulated" !ay t'e insurer be ade to anser for t'e daage to t'e cargo and t'e s'i$(#) .es, because t'e insurance $olicy co&ered any or all daage arising fro $erils of t'e sea" (B) .es, since t'ere a$$ears to 'a&e been no fault on t'e $art of t'e s'i$oner and s'i$ca$tain" () o, since t'e $roiate cause of t'e daage as t'e breac' of arranty of seaort'iness of t'e s'i$" () o, since t'e $roiate cause of t'e daage as due to ordinary usage of t'e s'i$, and t'us not due to a $eril of t'e sea" (22) 'as been a long%tie 'ouse'old 'el$er of D " /s 'usband, ., 'as also been D/s long%tie dri&er" !ay D insure t'e li&es of bot' and . it' D as beneficiary(#) .es, since and . render ser&ices to D" (B) o, since and . 'a&e no $ecuniary interest on t'e life of D arising fro t'eir e$loyent it' 'i" () o, since D 'as no $ecuniary interest in t'e li&es of and . arising fro t'eir e$loyent it' 'i" () .es, since and . are D7s e$loyees" (28) , o", a $artners'i$, is co$osed of # (ca$italist $artner), B (ca$italist $artner) and (industrial $artner)" 5f you ere $artner #, 'o beteen B and ould you 'a&e an insurable interest on, suc' t'at you ay t'en insure 'i(#) o one, as t'ere is erely a $artners'i$ contract aong #, B and " (B) Bot' B and , as t'ey are your $artners" () Only , as 'e is an industrial $artner" () Only B, as 'e is a ca$italist $artner" (24) is t'e 'older of an instruent $ayable to 'i () or 'is order, it' . as aer" t'en indorsed it as follos9 :Sub;ect to no recourse, $ay to D" Signed, ": + 'en D ent to collect fro ., it turned out t'at ./s signature as forged" D no sues for collection" +ill it $ros$er(#) .es, because , as a conditional indorser, arrants t'at t'e note is genui ne"
(B) .es, because , as a =ualified indorser, arrants t'at t'e note is genuine" () o, because ade a =ualified indorseent" () o, because a =ualified indorseent does not include t'e arranty of genuin eness" (23) # bill of ec'ange 'as T for its draee, @ as draer, and E as 'older" +'en E ent to T for $resentent, E learned t'at T is only 13 years old" E ants to reco&er fro @ but t'e latter insists t'at a notice of dis'onor ust first be ade, t'e instruent being a bill of ec'ange" 5s 'e correct(#) .es, since a notice of dis'onor is essential to c'arging t'e draer" (B) o, since T can ai&e t'e re=uireent of notice of dis'onor" () o, since E can treat @ as aer due to t'e inority of T, t'e draee" () .es, since in a bill of ec'ange, notice of dis'onor is at all ties re=uired" (26) #n insured, 'o gains noledge of a aterial f act already after t'e effecti&ity of t'e insurance $olicy, is not obliged to di&ulge it" T'e reason for t'is is t'at t'e test of concealent of aterial fact is deterined (#) at t'e tie of t'e issuance of t'e $olicy" (B) at any tie before t'e $a yent of $reiu" () at t'e tie of t'e $ayent of t'e $reiu" () at any tie before t'e $ olicy becoes effecti&e" (2>) T, t'e ca$tain of !* on #lan, 'ile aslee$ in 'is cabin, dreat of an 5ntensity eart'=uae a long t'e $at' of 'is s'i$" On aing u$, 'e iediately ordered t'e s'i$ to return to $ort" True enoug', t'e eart'=uae and tsunai struc t'ree days later and 'is s'i$ as sa&ed" +as t'e de&iation $ro$er(#) .es, because t'e de&iation as ade in good fait' and on a reasonable ground for belie&ing t'at it as necessary to a&oid a $eril" (B) o, because no reasonable ground for a&oiding a $eril eisted at t'e tie of t'e de&iation" () o, because T relied erely on 'is su$$osed gift of $ro$'ecy" () .es, because t'e de&iation too $lace based on a reasonable belief of t'e ca$tain" (2) , draee of a bill of ec'ange, rote t'e ords9 :#cce$ted, it' $roise to ae $ayent it'in to days" Signed, ": T'e draer =uestioned t'e acce$tance as in&alid" 5s t'e acce$tance &alid(#) .es, because t'e acce$tance is in reality a clear assent to t'e order of t'e draer to $ay" (B) .es, because t'e for of t'e acce$tance is really iaterial"
() o, because t'e acce$tance ust be a clear assent to t'e order of t'e draer to $ay" () o, because t'e docuent ust not e$ress t'at t'e draee ill $erfor 'is $roise it'in to days" (2?) cae u$ it' a ne ay of $resenting a tele$'one directory in a obile $'one, 'ic' 'e dubbed as t'e :iTel: and 'ic' uses lesser tie for locating naes and tele$'one nubers" !ay 'a&e 'is :iTel: co$yrig'ted in 'is nae(#) o, because it is a ere syste or et'od" (B) .es, because it is an original creation" () .es, because it entailed t'e a$$lication of /s intellect" () o, because it did not entail any a$$lication of /s intellect" (80) , debtor of , rote a $roissory note $ayable to t'e order of " /s brot'er, !, isre$resenting 'iself as 7s agent, obtained t'e note fro , t'en n egotiated it to after forging /s signature" indorsed it to , 'o indorsed it to E, a 'older in due course" !ay E reco&er fro (#) o, since t'e forgery of /s signature results in t'e disc'arge of " (B) .es, since only t'e forged signature is ino$erati&e and is bound as indorser" () o, since t'e signature of , t'e $ayee, as forged" () .es, since t'e signature of is iaterial, 'e being t'e $ayee" (81) # aterial alteration of an instruent it'out t'e assent of all $arties liable t'ereon results in its a&oidance, PT against a (#) $rior indorsee" (B) subse=uent acce$tor" () subse=uent indorser" () $rior acce$tor" (82) constituted a c'attel ortgage on a car (&alued at P'$1 !illion $esos) to secure a P300,000"00 loan" Eor t'e ortgage to be &alid, s'ould 'a&e (#) t'e rig't to ortgage t'e car to t'e etent of 'alf its &alue" (B) oners'i$ of t'e car" () un=ualified free dis$osal of 'is car"
() registered t'e car in 'is nae" (88) B borroed P'$1 illion fro L and offered to 'i 'is B!+ car ort' P'$1 !illi on as collateral" B t'en eecuted a $roissory note t'at reads9 :5, B, $roise to $ay L or bearer t'e aount of P'$1 !illion and to ee$ y B!+ car (loan collateral) free fro any ot'er encubrance" Signed, B": 5s t'is note negotiable(#) .es, since it is $ayable to bearer" (B) .es, since it contains an unconditional $roise to $ay a su certain in oney" () o, since t'e $roise to ;ust $ay a su of oney is unclear" () o, since it contains a $roise to do an act in addition to t'e $ayent of oney" (84) # ban can be $laced under recei&ers'i$ 'en, if alloed to continue in business, its de$ositors or creditors ould incur (#) $robable losses (B) ine&itable losses () $ossible losses () a slig't c'ance of losses (83) EF Eoundation, 5nc", a non%$rofit organi) dras a bill of ec'ange t'at states9 :One ont' fro date, $ay to B or 'is order P'$100,000"00" Signed, ": T'e draee
naed in t'e bill is " B negotiated t'e bill to !, ! to , to O, and O to P" ue to non%acce$tance and after $roceedings for dis'onor ere ade, P ased O to $ay, 'ic' O did" Ero 'o ay O reco&er(#) B, being t'e $ayee (B) , as indorser to O () , being t'e draee () , being t'e draer (8) T, an associate attorney in .D La O ffice, rote a nes$a$er $ublis'er a letter dis$uting a colunist7s clai about an incident in t'e attorney7s faily" T used t'e la fir7s letter'ead and its co$uter in $re$aring t'e letter" T also re=uested t'e fir7s essenger to deli&er t'e letter to t'e $ublis'er" +'o ons t'e co$yrig't to t'e letter(#) T, since 'e is t'e original creator of t'e contents of t'e letter" (B) Bot' T and t'e $ublis'er, one rote t'e letter to t'e ot'er 'o 'as $ossession of it" () T'e la office since T as an e$loyee and 'e rote it on t'e fir7s letter'ead" () T'e $ublis'er to 'o t'e le tter as sent" (8?) recei&ed goods fro T for dis$lay and sale in /s store" as to turn o&er to T t'e $roceeds of an y sale and return t'e ones unsold" To docuent t'eir agreeent, eecuted a trust recei$t in T7s fa&or co&ering t'e goods" +'en failed to turn o&er t'e $roceeds fro 'is sale of t'e goods or return t'e ones unsold des$ite deand, 'e as c'arged in court for estafa" o&ed to disiss on t'e ground t'at 'is liability is only ci&il" 5s 'e correct(#) o, since 'e coitted fraud 'en 'e $roised to $ay for t'e goods an d did not" (B) o, since 'is breac' of t'e trust recei$t agreeent sub;ects 'i to bot' ci&il and criinal liability for estafa" () .es, since cannot be c'arged it' estafa o&er goods co&ered a trust recei$t" () .es, since it as erely a consignent sale and t'e buyer could not $ay" (40) T'e aut'ori
one 'ic' t'e 'older ade it' t'e (#) $rinci$al debtor" (B) $rinci$al creditor" () secondary creditor" () secondary debtor" (42) @$on eecution of a trust recei$t o&er goods, t'e $arty 'o is obliged to release suc' goods and 'o retains security interest on t'ose goods, is called t'e (#) 'older" (B) s'i$$er" () entrustee" () entrustor" (48) , are'ousean, sent a tet essage to ., to 'o 'ad issued a are'ouse recei$t for ./s 300 sacs of corn, notifying 'i of t'e due date and tie to settle t'e storage fees" T'e essage stated also t'at if . does not settle t'e are'ouse c'arges it'in 10 days, 'e ill ad&ertise t'e goods for sale at a $ublic auction" +'en . ignored t'e deand, sold 100 sacs of corn at a $ublic auction" Eor 7s failure to co$ly it' t'e statutory re=uireent of ritten notice to satisfy 'is lien, t'e sale of t'e 100 sacs of corn is (#) &oidable" (B) rescissible" () unenforceable" () &oid" (44) On Cune 1, 2011, ailed to . 5nsurance, o" 'is a$$lication for life insurance, it' $ayent for 3 years of $reiu enclosed in it" On Culy 21, 2011, t'e insurance co$any acce$ted t'e a$$lication and ailed, on t'e sae day, its acce$tance $lus t'e co&er note" 5t reac'ed /s residence on #ugust 11, 2011" But, as it 'a$$ened, on #ugust 4, 2011, figured in a car accident" He died a day later" !ay /s 'eirs reco&er on t'e insurance $olicy(#) .es, since under t'e ognition T'eory, t'e insurance contract as $erfected u $on acce$tance by t'e insurer of /s a$$lication" (B) o, since t'ere is no $ri&ity of contract beteen t'e insurer and 7s 'eirs" () o, since 'ad no noledge of t'e insurer/s acce$tance of 'is a$$lication before 'e died" () .es, since under t'e !anifestation T'eory, t'e insurance contract as $erfected u$on acce$tance of t'e
insurer of /s a$$lication" (43) # bill of ec'ange 'as as draer, as draee and E as $a yee" T'e bill as t'en indorsed to F, F to H, and H to 5" 5, t'e current 'older $resented t'e bill to for acce$tance" acce$ted but, as it l ater turned out, is a fictitious $erson" 5s freed fro liability(#) o, since by acce$ting, adits t'e eistence of t'e draer" (B) o, since by acce$ting, arrants t'at 'e is sol&ent" () .es, if as not aare of t'at fact at t'e tie of acce$tance" () .es, since a bill of ec'ange it' a fictitious draer is &oid and ineistent" (46) ue to 'is debt to , rote a $roissory note 'ic' is $ayable to t'e order of " /s brot'er, !, isre$resenting 'iself as agent of , obtained t'e note fro " ! t'en negotiated t'e note to after forging t'e signature of " !ay enforce t'e note against (#) .es, since is t'e $rinci$al debtor" (B) o, since t'e signature of as forged" () o, since it is 'o can enforce it, t'e note being $ayable to t'e order of " () .es, since , as aer, is $riarily liable on t'e note" (4>) T or$" 'as a cor$orate ter of 20 years under its #rticles of 5ncor$oration or fro Cune 1, 1?0 to Cune 1, 2000" On Cune 1, 1??1 it aended its #rticles of 5ncor$oration to etend its life by 13 years fro Cune 1, 1?0 to Cune 1, 2013" T'e S a$$ro&ed t'is aendent" On Cune 1, 2011, 'oe&er, T or$ decided to s'orten its ter b y 1 year or until Cune 1, 2014" Bot' t'e 1??1 and 2011 aendents ere a$$ro&ed by a;ority &ote of its Board of irectors and ratified in a s$ecial eeting by its stoc'olders re$resenting at least 2G8 of its outstanding ca$ital stoc" T'e S, 'oe&er, disa$$ro&ed t'e 2011 aendent on t'e ground t'at it cannot be ade earlier t'an 3 years $rior to t'e e$iration date of t'e cor$orate ter, 'ic' is Cune 1, 2014" 5s t'is S disa$$ro&al correct(#) o, since t'e 3%year rule on aendent of cor$orate ter a$$lies only to etension, not to s'ortening, of ter" (B) .es, any aendent affecting cor$orate ter cannot be ade earlier t'an 3 years $rior to t'e cor$oration7s e$iration date" () o, since a cor$oration can in fact 'a&e a cor$orate life of 30 years" () .es, t'e aendent to s'orten cor$orate ter cannot be ade earlier t'an 3 years $rior to t'e cor$oration7s e$iration date" (4) B, 'ile drun, acce$ted a $assenger in 'is taicab" B t'en dro&e t'e tai reclessly, and ine&itably, it cras'ed into an electric $ost, resulting in serious $'ysical in;uries to t'e $assengers" T'e latter t'en filed a suit for tort against B/s o$erator, #, but # raised t'e defense of 'a&ing eercised etraordinary diligence in t'e safety of t'e $assenger" 5s 'is defense tenable-
(#) .es, as a coon carrier can rebut t'e $resu$tion of negligence by raising suc' a defense" (B) o, as in tort actions, t'e $ro$er defense is due diligence in t'e selection and su$er&ision of t'e e$loyee by t'e e$loyer" () o, as B, t'e coon carrier/s e$loyee, as ob&iously negligent due to 'is intoication" () .es, as a coon carrier can in&oe etraordinary diligence in t'e safety of $assengers in tort cases" (4?) is a director in T or$" 'o as elected to a 1%year ter on Eeb" 1, 2010" On #$ril 11, 2010, resigned and as re$laced by A, 'o assued as director o n !ay 1>, 2010" On o&" 21, 2010, A died" S as t'en elected in 'is $lace" @ntil 'ic' tie s'ould S ser&e as director(#) #$ril 11, 2011" (B) Eeb" 1, 2011" () !ay 1>, 2011" () o&" 21, 2011" (30) !, t'e aer, issued a $roissory note to P, t'e $ayee 'ic' states9 :5, !, $roise to $ay P or order t'e aount of P'$1 !illion" Signed, !": P negotiated t'e note by i ndorseent to , t'en to O also by indorseent, and O to I, again by indorseent" But before O indorsed t'e note to I, O/s ife rote t'e figure :2: on t'e note after :P'$1: it'out O/s noledge, aing it a$$ear t'at t'e note is for P'$12 !illion" Eor 'o uc' is O liable to I(#) P'$1 !illion since it is t'e original tenor of t'e note" (B) P'$1 !illion since 'e arrants t'at t'e note is genuine and in all res$ects 'at it $ur$orts to be" () P'$12 !illion since 'e arrants 'is sol&ency and t'at 'e 'as a good title to t'e note" () P'$12 !illion since 'e arrants t'at t'e note is genuine and in all res$ects 'at it $ur$orts to be" (31) or$", 'ose business $ur$ose is to anufacture and sell &e'icles, in&ested its funds in . or$", an in&estent fir, t'roug' a resolution of its Board of irectors" T'e in&estent gre treendously on account of . or$"/s ecellent business ;udgent" But a inority stoc'older in or$" assails t'e in&estent as ultra &ires" 5s 'e rig't and, if so, 'at is t'e status of t'e in&estent(#) .es, it is an ultra &ires act of t'e cor$oration itself but &oidable only, sub;ect to stoc'olders7 ratification" (B) .es, it is an ultra &ires act of its Board of irectors and t'us &oid" () .es, it is an ultra &ires act of its Board of irectors but &oidable only, sub;ect to stoc'olders7 ratification" () .es, it is an ultra &ires act of t'e cor$oration itself and, conse=uently, &oid" (32) otice of dis'onor is not re=uired to be ade in all cases" One instance 'ere suc' notice is not necessary is 'en t'e
indorser is t'e one to 'o t'e instruent is su$$ose to be $resented for $ayent" T'e rationale 'ere is t'at t'e indorser (#) already nos of t'e dis'onor and it aes no sense to notify 'i of it" (B) is bound to ae t'e acce$tance in all cases" () 'as no reason to e$ect t'e dis'onor of t'e instruent" () ust be ade to account for all 'is actions" (38) :agleson Aefillers, o",: a fir t'at sells ater to t'e $ublic, o$$oses t'e trade nae a$$lication of :agleson Laundry, o",: on t'e ground t'at suc' trade nae tends to decei&e trade circles or confuse t'e $ublic it' res$ect to t'e ater fir7s registered trade nae" +ill t'e o$$osition $ros$er(#) .es, since suc' use is liely to decei&e or confuse t'e $ ublic" (B) .es, since bot' co$anies use ater in conducting t'eir business" () o, since t'e co$anies are not engaged in t'e sae line of business" () o, since t'e root ord :agle: is a generic nae not sub;ect to registration" (34) Eor a constructi&e total loss to eist in arine insurance, it is re=uired t'at t'e $erson insured relin=uis' 'is interest in t'e t'ing insured" T'is relin=uis'ent ust be (#) actual" (B) constructi&e first and if it fails, t'en actual" () eit'er actual or constructi&e" () constructi&e" (33) T'e or$oration ode sanctions a contract beteen to or ore cor$orations 'ic' 'a&e interlocing directors, $ro&ided t'ere is no fraud t'at attends it and it is fair and reasonable under t'e circustances" T'e interest of an interlocing director in one cor$oration ay be eit'er substantial or noinal" 5t is noinal if 'is interest9 (#) does not eceed 23J of t'e outstanding ca$ital stoc" (B) eceeds 23J of t'e outstanding ca$ital stoc" () eceeds 20J of t'e outstanding ca$ital stoc" () does not eceed 20J of t'e outstanding ca$ital stoc" (36) , an aateur astronoer, stubled u$on 'at a$$eared to be a assi&e &olcanic eru$tion in Cu$iter 'ile $eering at t'e $lanet t'roug' 'is telesco$e" T'e folloing ee, , it'out notes, $resented a lecture on 'is findings before t'e #ssociation of #stronoers of t'e P'ili$$ines" To 'is disay, 'e later read an article in a science ;ournal ritten by ., a $rofessional astronoer,
re$eating eactly 'at disco&ered it'out any attribution to 'i" Has . infringed on /s co$yrig't, if any(#) o, since did not reduce 'is lecture in riting or ot'er aterial for" (B) .es, since t'e lecture is considered 7s ori ginal or" () o, since no $rotection etends to a ny disco&ery, e&en if e$ressed, e$lained, illustrated, or ebodied i n a or" () .es, since .7s article failed to ae any attribution to " (3>) 5n case of disagreeent beteen t'e cor$oration and a it'draing stoc'older 'o eercises 'is a$$raisal rig't regarding t'e fair &alue of 'is s'ares, a t'ree%eber grou$ s'all by a;ority &ote resol&e t'e issue it' finality" !ay t'e ife of t'e it'draing stoc'older be naed to t'e t'reeeber grou$(#) o, t'e ife of t'e it'draing s'are'older is not a disinterested $erson" (B) .es, since s'e could best $rotect 'er 'usband/s s'are'oldings" () .es, since t'e rules do not discriinate against i&es" () o, since t'e stoc'older 'iself s'ould sit in t'e t'ree%eber grou$" (3) #$art fro econoic rig'ts, t'e aut'or of a co$yrig't also 'as oral rig'ts 'ic' 'e ay transfer by ay of assignent" T'e ter of t'ese oral rig'ts s'all last (#) during t'e aut'or/s lifetie and for 30 years after 'is deat'" (B) fore&er" () 30 years fro t'e tie t'e aut'or created 'is or" () during t'e aut'or/s lifetie" (3?) +'ic' of t'e folloing indorsers e$ressly arrants in negotiating an instruent t'at 1) it is genuine and trueK 2) 'e 'as a good title to itK 8) all $rior $arties 'a&e ca$acity to ne gotiateK and 4) it is &alid and subsisting at t'e tie of 'is indorseent(#) T'e irregular indorser" (B) T'e regular indorser" () T'e general indorser" () T'e =ualified indorser" (60) +'ere t'e insurer as ade to $ay t'e insured for a loss co&ered by t'e insurance contract, suc' insurer can run after t'e t'ird $erson 'o caused t'e loss t'roug' subrogation" +'at is t'e basis for conferring t'e rig't of subrogation to t'e insurer-
(#) T'eir e$ress sti$ulation in t'e contract of insurance" (B) T'e e=uitable assignent t'at results fro t'e insurer7s $ayent of t'e insured" () T'e insured7s foral assignent of 'is rig't to indenification to t'e insurer" () T'e insured7s endorseent of its clai to t'e i nsurer" (61) in&ented a de&ice 'ic', t'roug' t'e use of noise, can rec'arge a cell$'one battery" He a$$lied for and as granted a $atent on 'is de&ice, effecti&e it'in t'e P'ili$$ines" #s it turns out, a year before t'e grant of /s $atent, ., also an in&entor, in&ented a siilar de&ice 'ic' 'e used in 'is cell$'one business in !anila" But files an in;uncti&e suit against . to sto$ 'i fro using t'e de&ice on t'e ground of $atent infringeent" +ill t'e suit $ros$er(#) o, since t'e correct reedy for is a ci&il action for daages" (B) o, since . is a $rior user in good fait'" () .es, since is t'e first to register 'is de&ice for $atent registration" () .es, since . unittingly used 7s $atented in&ention" (62) P, a sales girl in a floer s'o$ at t'e #yala Station of t'e !etro Aail Transit (!AT) boug't to toens or ticets, one for 'er ride to or and anot'er for 'er ride 'oe" S'e got to 'er floer s'o$ 'ere s'e usually ored fro a"" to 3 $"" #t about 8 $"", 'ile P as attending to 'er duties at t'e floer s'o$, to cres of t'e !AT got into a fig't near t'e floer s'o$, causing in;uries to P in t'e $rocess" an P sue t'e !AT for contractual breac' as s'e as it'in t'e !AT $reises 'ere s'e ould s'ortly tae 'er ride 'oe(#) o, since t'e incident too $lace, not in an !AT train coac', but at t'e !AT station" (B) o, since P 'ad no intention to board an !AT train coac' 'en t'e incident occured" () .es, since s'e already 'ad a ticet for 'er ride 'oe an d as in t'e !ATs $reises at t'e tie of t'e incident" () .es, since s'e boug't a round tri$ ticet and !AT 'ad a duty 'ile s'e as at its station to ee$ 'er safe for 'er return tri$" (68) Eorgery of bills of ec'ange ay be subdi&ided into, a) forgery of an indorseent on t'e bill and b) forgery of t'e draer/s signature, 'ic' ay eit'er be it' acce$tance by t'e draee, or (#) it' acce$tance but t'e bill is $aid by t'e draee" (B) it'out acce$tance but t'e bill is $aid by t'e draer" () it'out acce$tance but t'e bill is $aid by t'e draee" () it' acce$tance but t'e bill is $aid by t'e draer" (64) 5f an insurance $olicy $ro'i bits additional insurance on t'e $ro$erty insured it'out t'e insurer/s consent, suc' $ro&ision
being &alid and reasonable, a &iolation by t'e insured (#) reduces t'e &alue of t'e $olicy" (B) a&oids t'e $olicy" () offsets t'e &alue of t'e $olicy it' t'e additional insurances7s &alue" () forfeits $reius already $aid" (63) found a c'ec on t'e street, dran by . against #B Ban, it' D as $ayee" forged D/s signature as an indorser, t'en indorsed it $ersonally and deli&ered it to E Ban" T'e latter, in turn, indorsed it to #B Ban 'ic' c'arged it to t'e .7s account" . later sued #B Ban but it set u$ t'e forgery as its defense" + ill it $ros$er(#) o, since t'e $ayee/s signature 'as been forged" (B) o, since .7s reedy is to run after t'e forger, " () .es, since forgery is only a $ersonal defense" () .es, since #B Ban is bound to no t'e signature of ., its client" (66) T'e rule is t'at no stoc di&idend s'all be issued it'out t'e a$$ro&al of stoc'olders re$resenting at least 2G8 of t'e outstanding ca$ital stoc at a regular or s$ecial eeting called for t'e $ur$ose" #s to ot'er fors of di&idends9 (#) a ere a;ority of t'e entire Board of irectors a$$lies" (B) a ere a;ority of t'e =uoru of t'e Board of irectors a$$lies" () a ere a;ority of t'e &otes of stoc'olders re$resenting t'e outstanding ca$ital stoc a$$lies" () t'e sae rule of 2G8 &otes a$$lies" (6>) , at .7s re=uest, eecuted a Aeal state !ortgage (A!) on 'is (7s) land to secure ./s loan fro D" D successfully foreclosed t'e A! 'en . defaulted on t'e loan but 'alf of ./s obligation reained un$aid" !ay D sue to enforce 'is rig't to t'e deficiency(#) .es, but solidarily it' ." (B) .es, since 7s is deeed to arrant t'at 'is land ould co&er t'e 'ole obligation" () o, since it is t'e buyer at t'e auction sale 'o s'ould anser for t'e deficiency" () o, because is not D7s debtor" (6) !ay a $ublicly listed uni&ersal ban on 100J of t'e &oting stocs in anot'er uni&ersal ban and in a coercial ban-
(#) .es, if it' t'e $erission of t'e Bango Sentral ng Pili$inas" (B) o, since it 'as no $oer to in&est in e=uities" () .es, as t'ere is no $ro'ibition on it" () o, since under t'e la, t'e 100J oners'i$ on &oting stocs ust be in eit'er ban only" (6?) Perils of t'e s'i$, under arine insurance la, refer to loss 'ic' in t'e ordinary course of e&ents results fro (#) natural and ine&itable actions of t'e sea" (B) natural and ordinary actions of t'e sea" () unnatural and ine&itable actions of t'e sea" () unnatural and ordinary actions of t'e sea" (>0) @nder t'e 5ntellectual Pro$erty ode, lectures, serons, addresses or dissertations $re$ared for oral deli&ery, 'et'er or not reduced in riting or ot'er aterial fors, are regarded as (#) non%original ors" (B) original ors" () deri&ati&e ors" () not sub;ect to $rotection" (>1) an a draee 'o acce$ts a aterially altered c'ec reco&er fro t'e 'older and t'e draer(#) o, 'e cannot reco&er fro eit'er of t'e" (B) .es fro bot' of t'e" () .es but only fro t'e draer" () .es but only fro t'e 'older" (>2) T'e rule is t'at t'e intentional cancellation of a $erson secondarily liable results in t'e disc'arge of t'e latter" +it' res$ect to an indorser, t'e 'older/s rig't to cancel 'is signature is9 (#) it'out liitation" (B) not liited to t'e case 'ere t'e indorseent is necessary to 'is title" () liited to t'e case 'ere t'e indorseent is not necessary to 'is title"
() liited to t'e case 'ere t'e indorseent is necessary to 'is title" (>8) , in t'e 'os$ital for idney dysfunction, as about to be disc'arged 'en 'e et 'is friend ." told . t'e reason for 'is 'os$itali4) Se&eral #erican doctors anted to set u$ a grou$ clinic in t'e P'ili$$ines so t'ey could render odern edical ser&ices" 5f t'e clinic is to be incor$orated under our las, 'at is t'e re=uired foreign e=uity $artici$ation in suc' a cor$oration(#) 40J (B) 0J () 60J () >0J (>3) eecuted a $roissory note in fa&or of . by ay of accoodation" 5t says9 :Pay to . or order t'e aount of P'$30,000"00" Signed, ": . t'en indorsed t'e note to D, and D to T" +'en T soug't collection fro ., t'e latter countered as indorser t'at t'ere s'ould 'a&e been a $resentent first to t'e aer 'o dis'onors it" 5s . correct(#) o, since . is t'e real debtor and t'us, t'ere is no need for $resentent for $ayent and dis'onor by t'e aer" (B) .es, since as an indorser 'o is secondarily liable, t'ere ust first be $resentent for $ayent and dis'onor by t'e aer" () o, since t'e absolute rule is t'at t'ere is no need for $resentent for $ayent and dis'onor to 'old a n indorser liable" () .es, since t'e secondary liability of . and D ould only arise after $resentent for $ayent and dis'onor by t'e aer" (>6) T'e Board of irectors of .D or$" unaniously $assed a Aesolution a$$ro&ing t'e taing of ste$s t'at in reality aounted to illful ta e&asion" On disco&ering t'is, t'e go&ernent filed ta e&asion c'arges against all t'e co$any7s ebers of t'e board of directors" T'e directors in&oed t'e defense t'at t'ey 'a&e no $ersonal liability, being ere directors of a fictional being" #re t'ey correct(#) o, since as a rule only natural $ersons lie t'e ebers of t'e board of directors can coit cor$orate
cries" (B) .es, since it is t'e cor$oration t'at did not $ay t'e ta and it 'as a $ersonality distinct fro its directors" () .es, since t'e directors officially and collecti&ely $erfored acts t'at are i$utable only to t'e cor$oration" () o, since t'e la aes directors of t'e cor$oration solidarily liable for gross negligence and bad fait' in t'e disc'arge of t'eir duties" (>>) T is t'e registered tradear oner of :AOOS: 'ic' ' e uses on 'is ready%to%ear clot'es" Baning on t'e $o$ularity of T/s trade ar, B cae u$ it' 'is on :AOOS: ar, 'ic' 'e t'en used for 'is :AOOS: burgers" T no sues B for tradear infringeent but B argues t'at 'is $roduct is a burger, 'ence, t'ere is no infringeent" 5s B correct(#) o, since t'e oner of a ell%non ar registered in t'e P'ili$$ines 'as rig'ts t'at etends e&en to dissiilar inds of goods" (B) .es, since t'e rig't of t'e oner of a ell%non ar registered in t'e P'ili$$ines does not etend to g oods 'ic' are not of t'e sae ind" () .es, as B as in bad fait' in coing u$ it' 'is on :AOOS: ar" () o, since unlie T, 'e did not register 'is on :AOOS: ar for 'is $roduct" (>) #, t'e $ro$rietor of a fleet of ten taicabs, decides to ado$t, as 'is business nae, :# Trans$ort o", 5nc": !ay t'is be alloed(#) o, it ould be dece$ti&e since 'e is a $ro$rietor, not a cor$oration" (B) o, since :#: is a generic nae, not suitable for registration" () .es, since 'is line of business is $ublic trans$ortation" () .es, since suc' nae ould gi&e 'is business a cor$orate identity" (>?) T deli&ers to refrigerators to t'e are'ouse of + 'o t'en issues a negotiable recei$t undertaing t'e deli&ery of t'e refrigerators to :T or bearer": T entrusted t'e recei$t to B for safeee$ing only" B negotiated it, 'oe&er, to E 'o boug't it in good fait' and for &alue" + 'o is entitled to t'e deli&ery of t'e refrigerators(#) T, since 'e is t'e real oner of t'e refrigerators" (B) E, since 'e is a $urc'aser in good fait' and for &alue" () B, since T entrusted t'e recei$t to 'i" () +, since 'e 'as as a are'ousean a li en on t'e goods" (0) T'e #rticles of 5ncor$oration ust be acco$anied by a Treasurer/s #ffida&it certifying under oat', aong ot'ers, t'at t'e total subscri$tion $aid is9
(#) not less t'an P23,000"00" (B) not ore t'an P3,000"00" () A5FHT #S+A not less t'an P3,000"00" () not ore t'an P23,000"00" (1) 5n a s$ecial eeting called for t'e $ur$ose, 2G8 of t'e stoc'olders re$resenting t'e outstanding ca$ital stoc in " o" aut'ori3 !illion $aid%u$ ca$ital" (B) .es, since t'ere is substantial co$liance it' our nationali
(#) T, being t'e are'ousean it' a lien on t'e goods (B) D, being a $urc'aser for &alue of t'e are'ouse recei$t () , being .7s ;udgent creditor () ., being t'e oner of t'e goods (3) # $roissory note states, on its face9 :5, , $roise to $ay . t'e aount of P'$ 3,000"00 fi&e days after co$letion of t'e on%going construction of y 'ouse" Signed, ": 5s t'e note negotiable(#) .es, since it is $ayable at a fied $eriod after t'e occurrence of a s$ecified e&ent" (B) o, since it is $ayable at a fied $eriod after t'e occurrence of an e&ent 'ic' ay not 'a$$en" () .es, since it is $ayable at a fied $eriod or deterinable future tie" () o, since it s'ould be $ayable at a fied $eriod before t'e occurrence of a s$ecified e&ent" (6) P sold to ! a $air of geco (tuo) for P'$30,000"00" ! t'en issued a $roissory note to P $roising to $ay t'e oney it'in ?0 days" @nnon to P and !, a la as $assed a ont' before t'e sale t'at $ro'ibits and declares &oid any agreeent to sell geco in t'e country" 5f ac=uired t'e note in good fait' and for &alue, ay 'e enforce $ayent on it(#) o, since t'e la declared &oid t'e contract on 'ic' t'e $roissory note as founded" (B) o, since it as not 'o boug't t'e geco" () .es, since 'e is a 'older in due course of a note 'ic' is distinct fro t'e sale of geco" () .es, since 'e is a 'older in due course and P and ! ere not aare of t'e la t'at $ro'ibited t'e sale of geco" (>) P aut'ori
(#) .es, since t'e indorseent to . is for P'$1 !illion" (B) o, since D is not a $arty to t'e loan beteen and ." () o, since is erely an agent of D, 'is only rig't being to collect" () .es, since oed . P'$1 !illion" (?) S'i$$ing, o", insured its &essel !* on Teodoro for P'$100 !illion it' #B 5nsurance, o" t'roug' T, an agent of S'i$$ing" uring a &oyage, t'e &essel accidentally caug't fire and suffered daages estiated at P'$0 !illion" T $ersonally infored #B 5nsurance t'at S'i$$ing as abandoning t'e s'i$" Later, #B insurance denied S'i$$ing7s clai for loss on t'e ground t'at a notice of abandonent t'roug' its agent as i$ro$er" 5s #B 5nsurance rig't(#) .es, since S'i$$ing s'ould 'a&e ratified its agent7s action" (B) o, since T, as agent of S'i$$ing 'o $rocured t'e insurance, can also gi&e notice of abandonent for 'is $rinci$al" () .es, since only t'e agent of S'i$$ing relayed t'e fact of abandonent" () o, since in t'e first $lace, t'e daage as ore t'an of t'e s'i$/s &alue" (?0) # la as $assed dis=ualifying forer ebers of ongress fro sitting in t'e Board of irectors of go&ernent%oned or controlled cor$orations" Because of t'is, t'e Board of irectors of #B or$", a go&ernent%oned and controlled cor$oration, dis=ualified , a forer ongressan, fro continuing to sit as one of its ebers" ob;ected, 'oe&er, insisting t'at under t'e or$oration ode ebers of t'e board of directors of cor$orations ay only be reo&ed by &ote of stoc'olders 'olding 2G8 of its outstanding ca$ital stoc in a regular or s$ecial eeting called for t'at $ur$ose" 5s correct(#) .es, since t'e ne la cannot be a$$lied to ebers of t'e board of directors already elected $rior to its $assage" (B) o, since t'e dis=ualification taes effect by o$eration of la, it is sufficient t'at 'e as declared no longer a eber of t'e board" () .es, since t'e $ro&isions of t'e or$oration ode a$$lies as ell to go&ernent%oned and controlled cor$orations" () o, since t'e board 'as t'e $oer to oust 'i e&en it'out t'e ne la" (?1) 002%8%0001 F, a grocery g oods su$$lier, sold 100 sacs of rice to H 'o $roised to $ay once 'e 'as sold all t'e rice" H eantie deli&ered t'e goods to +, a are'ousean, 'o issued a are'ouse recei$t" +it'out t'e noledge of F and +, H negotiated t'e recei$t to P 'o ac=uired it in good fait' and for &alue" P t'en claied t'e goods fro +, 'o released t'e" #fter t'e rice as loaded on a s'i$ bound for !anila, F in&oes 'is rig't to sto$ t'e goods in transit due to 'is un$aid lien" +'o 'as a better rig't to t'e rice(#) A5FHT #S+A P, since 'e 'as su$erior rig'ts as a $urc'aser for &alue and in good fait'" (B) P, regardless of 'et'er or not 'e is a $urc'aser for &alue and in good fait'"
() F, since as an un$aid seller, 'e 'as t'e rig't of sto$$age in transitu" () +, since it a$$ears t'at t'e are'ouse c'arges 'a&e not be en $aid" (?2) 5n a signature by $rocuration, t'e $rinci$al is bound only in case t'e agent acted it'in t'e actual liits of 'is aut'ority" T'e signature of t'e agent in suc' a case o$erates as notice t'at 'e 'as (#) a =ualified aut'ority to sign" (B) a liited aut'ority to sign" () a s$ecial aut'ority to sign" () full aut'ority to sign" (?8) 5n return for t'e 20 years of fait'ful ser&ice of as a 'ouse'el$er to ., t'e latter $roised to $ay P'$100,000"00 to 7s 'eirs if 'e () dies in an accident by fire" agreed" 5s t'is an insurance contract(#) .es, since all t'e eleents of an insurance contract are $resent" (B) .es, since 7 ser&ices ay be regarded as t'e consideration" () o, since . actually ade a conditional donation in 7s fa&or" () o, since it is in fact an innoinate contract beteen and ." (?4) # bill of ec'ange states on its face9 :One (1) ont' after sig't, $ay to t'e order of !r" A t'e aount of P'$30,000"00, c'argeable to t'e account of !r" S" Signed, !r" T": !r" S, t'e draee, acce$ted t'e bill u$on $resentent by riting on it t'e ords :5 s'all $ay P'$80,000"00 t'ree (8) ont's after sig't": !ay 'e acce$t under suc' ters, 'ic' &aries t'e coand in t'e bill of ec'ange(#) .es, since a draee acce$ts according to t'e tenor of 'is acce$tance" (B) o, since, once 'e acce$ts, a draee is liable according to t'e tenor of t'e bill" () .es, $ro&ided t'e draer and $ayee agree to t'e acce$tance" () o, since 'e is bound as draee to acce$t t'e bill according to its tenor" (?3) !ay t'e indorsee of a $roissory note indorsed to 'i :for de$osit: file a suit against t'e indorser(#) .es, as long as t'e indorser recei&ed &alue for t'e restricti&e indorseent" (B) .es, as long as t'e indorser recei&ed &alue for t'e conditional indorseent" () .es, 'et'er or not t'e indorser recei&ed &alue for t'e conditional in dorseent"
() .es, 'et'er or not t'e indorser recei&ed &alue for t'e restricti&e indorseent" (?6) issued a c'ec in fa&or of 'is creditor, ." 5t reads9 : Pay to . t'e aount of Se&en T'ousand Hundred Pesos (P'$>00,000"00)" Signed, :" +'at aount s'ould be construed as true in suc' a case(#) P'$>00,000"00" (B) P'$>00"00" () P'$>,000"00" () P'$>00,100"00" (?>) S'i$oner , in a$$lying for a arine insurance $olicy fro #B, o", stated t'at 'is &essel usually sails iddle of #ugust and it' norally 100 tons of cargo" 5t turned out later t'at t'e &essel de$arted on t'e first ee of Se$teber and it' only 10 tons of cargo" +ill t'is a&oid t'e $olicy t'at as issued(#) .es, because t'ere as breac' of i$lied arranty" (B) o, because t'ere as no intent to breac' an i$lied arranty" () .es, because it relates to a aterial re$resentation" () o, because t'ere as only re$resentation of intention" (?) T'e #rticles of 5ncor$oration of #B Trans$ort o", a $ublic utility, $ro&ides for ten (10) ebers in its Board of irectors" +'at is t'e $rescribed iniu nuber of Eili$ino citi () 3 (??) P aut'ori
s'ortened by an aendent of t'e #rticles 'en a$$ro&ed by a;ority of its Board of irectors and9 (#) a$$ro&ed and ratified by at least 2G8 of all stoc'olders" (B) a$$ro&ed by at least 2G8 of t'e stoc'olders re$resenting t'e outstanding ca$ital stoc" () ratified by at least 2G8 of all stoc'olders" () ratified by at least 2G8 of t'e stoc'olders re$resenting t'e outstanding ca$ital stoc"
T'e La$'il Pro;ect % #rellano La Eoundation
