B ReSA The Review School of Accountancy ‘Wel. No. 735-9807 & 734-3989 BUSINESS LAW 09 Febru, u ary 2014 (Sunday) First Pre-Board Examination 3:30 P.M. - 5:00 mine MULTIPLE CHOICE INSTRUCTIONS: “Seloct the correct answer For each GF the following cor gtOns. Mark only one answer for each item by shading the bow STareepording to the letter’ of your choice on the sheet’ provided. SHRICTOY NO ERASURES ARE ALLOWED. Use pencil no. 2 only. a If the object of sale involves un-issued shates of stocks, it is regarded as cA. an Assignment of Shares 8. a Subscription + a Barter Db. none of the above 7+ Im such an event, the sale transaction is entered between the stockholder, as setier, and the assignee, as buyer @ corporation and another Corporation the corporation, as buyer, and the stockholder, as vendor %. the corporation, as vendor, and the buyer, as subscriber A.A: At the time of the perfection of sale, the seller may not be the r of the thing. Br But, ‘a seller who is not the owner thereof cannot transfer vel to the buyer at the time of delivery. Only A is true #. Only B is true ©. Both are true D. Both are false 4.4 sold to B her guitar. lt was agreed that A would fix the price a week later. At the agreed time, A named the price P10,000. Was the sale perfected? A. No, because the price was left to the discretion of one of the contracting parties. R. No, because at the time of sale the price fixed was conditional. ©. Yes, because the price fixed by one of the parties was accepted by the other. D. Yes, jbecause there was agreement that A would fix the price. 5. A: Only a determinate thing can be sold. y Since a “car” is a generic thing, therefore, it cannot be sold. A. Only A is true B. Only B is true c. Both are true D. Both are false her watch to B for P1,000, B olfered to buy the When 8 returned to go nj to sell the watch 4%. A offered to sell watch for P800 but it was rejected by A. away, A called him and said she is now will for P800. May B refuse to buy said watch? No, because B’s offer of P80 was accepted by A. ae js B. No, there is a meeting of minds between the parties. ©. Yes, because # made a counter offer which was accepted by A. Yes, because Lhere was no perfected sale.B c A3 3 D Later, they novated the contract by stipulating that ReSA: The Review School of Accountancy Page 2 of 8 Atria assigns tne CIM, gatantecd by c. B assigns nis credit to x. x gne the credit to A. A’s obligation 1s extingulened ana 8 released trom his obligation as guarantory- 7 0b x - TT et games, © PIM guaranteod by C. B anslgne his credit to x. x assigns his cre it to C, the guarantor. a's obligation is extinguished and © is released from his obligation a2 guaremor! b. True, False £. False, True D, Both are false A.A sold to B his cow for P5,000. No date i. i sold . io s Fixed by the parties for aby, Performance of their respective obligations. The obligation or - to deliver the cow immediately as there is a perf diate s fect contract amis to deliver the cow within the reasonable time from the perfection of the contract to deliver the cow upon the payment of B of P5,000 to rescind the contract as there is no’ time fixed for the delivery and payment 9. Quasi-traditio is equivalent to: A. Traditio Longa-manu 5. Traditio brevi-manu Traditio constitutum possessorium Delivery of the title of ownership DB 20. The creditor has a right to the fruits of the thing from the time: A. The thing is delivered. B. The fruits are delivered ©. The obligation to deliver the thing arises. D, The contract is perfected. 11. A owes B PIM. C in behalf of A pays B PIM against the will of A. 1 = A’s obligation towards B is extinguished. II ~ € may not recover from A. 4. Both are true True, Fals False, True Both are false 12. A sold to B a parcel of land for PAM. The sale is evidenced by a memorandum of agreement of sale. One week later, A sold the same parcel of land to C for P4M. This is evidenced by a formal deed of salc. Upon buying the property, C, who was aware of the first sale, immediately took possession of the lot. When informed of the second B subsequently registered an adverse claim to the property. sale, © registered the deed of sale in her favor. The parcel of Later, land shall belong to: A, B because he has got an older title B. C because he is the first to register. ©. C because he is the first to take possess D. No one as both sales are void. into a contract whereby A was to give B P2M. instead of car was’ A and B entered cash A would give a particular car. Subsequently the 1 ; ocl? destroyed by a Lortuitous event. which is correc! A. B has the option to demand either P2M or the value of the car. 3 B. A is liable Lo pay P2M, thé amount of the old, obligation:ReSA: The Review School of Accountancy Page 3 of 8 + The original obligavion obligation to deliver the car. The original obligation and Sar are both extinguished. extinguished but not the obligation to deliver the Zones B two debts. The first debt is secured by a mortgage, the oa if, NOt: A tells B that the payment he is making should be ihed to the second debt instead of the first. which is costect> Bomay refuse sation on the ground that the first debt is more burdenseme to the dept Bmay refuse such aopti appiied proportio B cannot refuse the debtor. D. B cannot refuse benefit. jon because the payment ail be son because of the option of ation because it is to his A 25. 10ga1 subrogation ss presunee A. When a third person, not interested in the obligation, pays i. Men a third person, in the following, except: is preferred, nterested in the obligation, pays with the express or (acit approval of the debtor. When, oven without the snowledge of the debtor, a person interested in the fulfillment of the obligation pays. D 16. Instance where the law imposes ‘oint liability: A. Obligations arising from tert. B. Obligations of pailees in commodatum Liability of principals to a common agent. Liability of partners arising out of a contract. Co! Bho a > wnggvee wars Lor auoened wae gemand fromthe debtor vhad me 3 has pate, except hat Lf he paid without ‘wie Kamoledieee eee tie will of the debtor he cannet recover anything Tt - The debtor of a thing cannot compel the creditor to receive a different one, although the latter may be on the same value as, or more valuable than that which is due. A, Both are true B. True, False ©. False, True D. Both are false matter of sale. 5 of a sale contract. J 18. A: Future inheritance may be the subj B: Services are also the proper opje A, Only Ais true B, Only B is trae ©. Both are true D. Both are false is void. fy Or oane aeeiey as 8 tL Ns on Mhonditioned ‘on that (ne thing will cone into existence, A. omy Ais true &. Only B is true &. poth aro bene eth are false isReSA: The Review School of Accountancy Page 5 of 8 ©. Both are true. D. Beth are false. a Tf it is only by way of legal exception that the husband and the wife can sell property to each other. v- Bs If at the time of perfection of sale,’ the thing has been entirely lost, the contract shall be without any effect. y A. only A is true B. Only B is true ©. Both are true D. Both are false d 98. shen a thing has been specifically designated or physically segregated from all other of the same class. it is a Pungible thing 4. Generic object ©. Personal property D. Wone of the above A 29. There is delivery to the buyer when - A. The thing is placed in his possession and control. Full payment is received by the seller. There is a written contract of sale. There is consent since it is consensual. B 0. a: in the sale of immovable properties-like parcel of lands-there is no need to deliver the thing. E: The delivery of personal properties the execution of public instruments. A. Only A is true 4. only B is true cl Both are true D. Both are false ~ B 31. then goods are delivered to the buyer “on sale or return” to give the buyer an option to return the goods instead of paying the price, the risk of loss is on a. Seller BL Buyer Both of them None of thei n also be done through A A2. Comparably, when goods are delivered to the buyer on “approval or on trial or on satisfaction, loss is borne by- A. Seller 8. Buyer Cc. Both of them b. None of them or other similar terms, the risk of A. Seller C. Both of them D. None of them an ey il ice aoe ae i iS . BueTaec] | AME CIO ODE.AAADN EXAMINATION (RATCH 9700. 28 RS,D ReSA: The Review School of Accountancy 34, Page 6 of 8 A borrowed PiM trom B. and, Without the know: dept. As a result 2. € may foreclose the mortgage on Ala 1 8. © cannot claim reimbursement 3 much Cor reas made without the knowledge of a On &S the € can recover the amount. fr reimbursement to c. D. The obligation ot a reimburse ¢ the The loan was secured by a mortgage of As edge of A, PM © paid B the sum of Pim for As and if A cannot pay. from A in us A refuses the to M was extinguished but A should amount of Pim. and C ‘executed @ promissory note worded as follows: “We to Pay %, Y and 2 the sum of 90,000. Sqd. A, B and c. ia correct? A is obliged to pay xX, ¥ and z 99,000 4 is obliged to pay x’ p60,0n0 &. A is obliged to pay ¥ P30,000 4 is obliged to pay % ¥10/000 736. Who is barely 16 yoars of age, sold her car Lo Ade, who years old, for Php700,000.00, the contract of sale is A. Valid Voidable Roscissible + Unenforceable 37. Leciet’s cellphone was borrowed by Barry. buy it after using it, and the former owne The latter offered to consented. The buyer acquires ip through this mode of delivery- Traditio longa manu Traditio brevi manu + Symbolica tradition 2. Real delivery 38. where, in pursuance autho of a contract of sale, the seller is zed to send the goods to a carrior, whether named by the or not, for the purpose of transmission to him, and the same t, the risk of loss falls on the Seller Buyer ©. Both of them D. Carrier 39. A: The vendor is bound to deliver the thing sold, even if the “verte has not paid him the price ‘Wo: WHEN CM) PAYNEDT bag USER mats thimugh cherk payments, the seiler is no longer an unpaid seller. y A. Only A is true B. Only B is true ¢. Both are true D. Both are talse . deliver 1,000 sacks of sugar yiteciag, ex camila. bat ‘the goods “ave stad tossed be hed ier and was bound to its destination along Bulacan, Tf the becomes insolvent, the unpaid seller may ~ A. Exercise a cight of retention over the goods delivered @. Rescind the transfer of title and cesime the ownership in Exeraias bis wiuiie, ah akepping thew fa wendeseg 5. ALL of the above‘6 +" ReSA: The Review School of Accountancy sy age 7 of 8 has boen transferred to the buyer, the unpaid seller may A. Exercise his possessory Lien over them B. Rescind the transfer of title and resume the ownership in the goods ©. Hxercise his right of stoppage D. only (A) and (B) can be availed of as remedies P42. 1t takes place whenever by @ final judgment based on’ right prior co the sole or un act inputeble to the vendor; the vendes’ tm deprived of the whole or of a part of the thing purchased. A. Foreclosure Eviction Breach of warranty against hidden detects ALL of them or defects in the thing sold, even though he was not aware of it. * B: If the thing sold should be lost in consequence of tne hidden faulty, and the vendor wad sndve OT. iia ben balk eas hm Lane, Re Only A is Leve Bl Only Bis true c. Both are true D! Both are false Cyt Ate Be ane naa 3 deemed Lo have accepted the goods when, after the lapse of a reasonable time, he retains the goods without ES, g to the seller that he has rejected them. 1 B: Acceptance of the goods by the buyer shall not discharge the er from liability in damages for breach of any warranty. A. Only A is true B. Only B is true c. Both are true D. Roth are false A, #5. Auot agreed to sell the cars of Oule for a certain commission or percentage based on the sale of thereof. If Agot, whether he makes Bepale on not, is obliged to render payment. or accounting to Owie after a term agreed upon, there is between them A. Contract of sale B. Contract of agency to sell Contract fon a piece of work Db. Barter Py Ae. me. cape placed an order at a merchant's store for @ particular style of lady handbag that ran out of sale due to the volume of purchases during the holidays. If he acquires them upon their availability, it is a~ A. Contract for a piece of work 8. Contract of sale : ©. contract of agency to sell D. None of the above B 47. Deto owed Kiddo Phpi0,000.00. Since he cannot .pay in cash, he ‘offered to deliver his wistwatch to the latter, who accepted it, the transaction is governed by the~ . A. law on obligations and contracts B, Law on sales 2) Law on Joans BD. None of the aboveReSA: The Review Schoo! of Accountancy Page 8 of 8 B av. me toregoing transaction ig considered a- A. Sale B. Dation in Payment °C. Payment by cession D. Application of paynent A 49. Where the purchase price cannot be determined in accordance with law, or in any other manner, the sale is A. Inefficacious B. Valid so that the buyer must pay a reasonable price ¢ S. Voidable because of mistaken consent 2B. None of the above Py 0. te is considered as part of the price and as proof of the perfection of the contract. i A. Option money #: Earnest money Cc. Reservation D. None of the above end