Special Laws - Securities Regulation Code

1. Which of the following is NOT an objective of the Securities Regulation Code a.k.a R.A.
No. 8799?
1. To establish a socially conscious, free market that regulates itself
2. To encourage the widest participation of ownership in enterprises
3. To enhance the democratization of health
4. To promote monopoly and oligopoly
According to Section 1 of RA 8799, – The State shall establish:
1. A socially conscious, free-market that regulates itself,
2. Encourage the widest participation of ownership in enterprises,
3. Enhance the democratization of wealth,
4. Promote the development of the capital market,
5. Protect investors,
6. Ensure full and fair disclosure about securities,
7. Minimize if not totally eliminate insider trading and other fraudulent or
manipulative devices and practices which create distortions in the free market

2. Which of the following is considered a security under the Securities Regulation Code?
a. Inventory
b. Options and Warrants
c. Investment property
d. Prepaid Asset
According to Section 3 - "Securities" are shares, participation or interests in a corporation or in a
commercial enterprise or profit-making venture and evidenced by a certificate, contract,
instruments, whether written or electronic in character. It includes:
a) Shares of stocks, bonds, debentures, notes evidence of indebtedness, asset-backed
securities;
b) Investment contracts, certificates of interest or participation in a profit-sharing agreement,
certifies of deposit for a future subscription;
c) Fractional undivided interests in oil, gas or other mineral rights;
d) Derivatives like option and warrants;
e) Certificates of assignments, certificates of participation, trust certificates, voting trust
certificates or similar instruments
f) Proprietary or nonproprietary membership certificates in corporations; and
g) Other instruments as may in the future be determined by the Commission.

3. Which government agency is entrusted with the administration of the Securities

Regulation Code?
a. Board of Accountancy
b. Securities and Exchange Commission
c. Bangko Sentral ng Pilipinas
d. Insurance Commission

According to Section 4. The Code shall be administered by the Security and Exchange
Commission as a collegial body, composed of a chairperson and (4) Commissioners, appointed
by the President for a term of (7) seven years each and who shall serve as such until their
successor shall have been appointed and qualified.

4. Which of the following is a function of the Securities and Exchange Commission?

a. To approve, reject, suspend, revoke or require amendments of registration
statements, and registration and licensing applications.
b. To convict a person of criminal violation of Securities Regulation Code
c. To entertain intra-corporate dispute and election contests
d. To reverse the decision of board of directors in matters of corporate management

Among the choices, only this answer is enumerated in Section 5 of the code, entitled "Powers
and Functions of the Commission".

5. What is the condition precedent before securities will be allowed to be sold or offered for
sale of distribution within the Philippines?
a. It must be guaranteed by the Government of the Republic of the Philippines.
b. The securities must be risk-free.
c. The securities must be registered first before the Securities and Exchange
Commission.
d. The securities must be profitable in all cases.
 According to Section 8 of the Code, Securities shall not be sold or offered for sale or distribution
within the Philippines, without a registration statement duly filed with and approved by the
Commission. Prior to such sale, information on the securities, in such form and with such
substance as the Commission may prescribe, shall be made available to each prospective
purchaser.

6. Which of the following may NOT be done by the SEC regarding the application for
registration of securities by the issuer?
a. The SEC may specify the terms and conditions under which any written
communication, including any summary prospectus, shall be deemed not constitute
an offer for sale.
b. The SEC may audit the financial statements, assets and other information of firm
applying for registration of its securities whenever it deems the same necessary to
insure full disclosure or to protect the interest of the investors and the public in
general.
c. The SEC shall deny any application for registration of securities if the applicant is not
a Filipino citizen.
d. The SEC shall keep Register Securities which shall record the registration of
securities and such register and all documents or information with the respect to the
securities registered therein shall be open to public inspection at reasonable hours
on business days.
According to Section 8 of the Code, the following are actions allowed by the Code to be
performed by the SEC concerning the registration of securities:
8.2. The Commission may conditionally approve the registration statement under such terms
as it may deem necessary.
8.3. The Commission may specify the terms and conditions under which any written
communication, including any summary prospectus, shall be deemed not to constitute an
offer for sale under this Section.
8.4. A record of the registration of securities shall be kept in Register Securities in which shall
be recorded orders entered by the Commission with respect such securities. Such register
and all documents or information with the respect to the securities registered therein shall be
open to public inspection at reasonable hours on business days.
8.5. The Commission may audit the financial statements, assets and other information of the
firm applying for registration of its securities whenever it deems the same necessary to insure
full disclosure or to protect the interest of the investors and the public in general.

7. Which of the following is NOT a ground for the rejection of the registration statement and
refuse registration of the securities of the issuer by the SEC?
a. The issuer has been judicially declared solvent.
b. The issuer has violated any of the provision of the Securities Regulation Code
c. The issuer has been or is engaged or about to engage in fraudulent transactions
d. The issuer has failed to comply with the conditions imposed by SEC for registration
of security
All choices are grounds for refusal of registration except the answer "The issuer has been
judicially declared SOLVENT". According to Section 13 "Rejection and Revocation of Registration
of Securities.", The Commission may reject a registration statement and refuse registration of the
security there-under, or revoke the affectivity of a registration statement and the registration of the
security there-under after the due notice and hearing by issuing an order to such effect, setting
forth its finding in respect thereto, if it finds that:
THE ISSUER,
(i) Has been judicially declared INSOLVENT;
(ii) Has violated any of the provision of this Code, the rules promulgated pursuant thereto
or any order of the Commission of which the issuer has noticed in connection with the
offering for which a registration statement has been filed
(iii) Has been or is engaged or is about to engage in fraudulent transactions;
(iv) Has made any false or misleading representation of material facts in any prospectus
concerning the issuer or its securities;
(v) Has failed to comply with any requirements that the Commission may impose as a
condition for registration of the security for which the registration statement has been
filed;
8. Which of the following transactions is exempted from mandatory tender offer?
a. Any purchase of securities from the unissued capital stock even if the acquisition will
result to a fifty percent or more ownership of securities by the purchaser or such
percentage that is sufficient to gain control of the board
b. Merger or consolidation
c. Any purchase from a publicly listed company
d. Purchase from the biggest company
 According to the IRR, 19.3 "Exemptions from the Mandatory Tender Offer Requirement", Unless
the acquisition of equity securities is intended to circumvent or defeat the objectives of the tender
offer rules, the mandatory tender offer requirement shall not apply to the following:
1. Any purchase of securities from the unissued capital stock; Provided, the acquisition will
not result to a fifty percent (50%) or more ownership of securities by the purchaser or
such percentage that is sufficient to gain control of the board;
2. Any purchase of securities from an increase in authorized capital stock;
3. Purchase in connection with foreclosure proceedings involving a duly constituted pledge
or security arrangement where the acquisition is made by the debtor or creditor;
4. Purchases in connection with a privatization undertaken by the government of the
Philippines;
5. Purchases in connection with corporate rehabilitation under court supervision;
6. Purchases in the open market at the prevailing market price; and
7. Merger or consolidation.
9. Which of the following acts is NOT considered unlawful manipulation of security prices
under Securities Regulation Code?
a. To make false misleading statement with respect to any material fact, which he knew
or had reasonable ground to believe was so false or misleading, for the purpose of
inducing the purchase or sale of any security listed or traded in an Exchange.
b. To effect, either alone or others, any series of transactions for the purchase and/or
sale of any security traded in an Exchange for the purpose of pegging, fixing or
stabilizing the price of such security.
c. To use or employ, in connection with the purchase or sale of any security any
manipulative or deceptive device or contrivance.
d. To sell securities in order to obtain gain on changes in fair value of the stocks.
According to Section 24 ". Manipulation of Security Prices; Devices and Practices"
24.1 It shall be unlawful for any person acting for himself or through a dealer or broker, directly or
indirectly:
1. To create a false or misleading appearance of active trading in any listed security traded
in an Exchange of any other trading market (hereafter referred to purposes of this
Chapter as "Exchange"): 1.1 By effecting any transaction in such security which involves
no change in the beneficial ownership thereof; 1.2 By entering an order or orders for the
purchase or sale of such security with the knowledge that a simultaneous order or orders
of substantially the same size, time and price, for the sale or purchase of any such
security, has or will be entered by or for the same or different parties; or 1.3 By
performing similar act where there is no change in beneficial ownership.
2. To affect, alone or with others, a securities or transactions in securities that: 2.1 Raises
their price to induce the purchase of a security, whether of the same or a different class
of the same issuer or of controlling, controlled, or commonly controlled company by
others; or 2.2 Creates active trading to induce such a purchase or sale through
manipulative devices such as marking the close, painting the tape, squeezing the float,
hype and dump, boiler room operations and such other similar devices.
3. To circulate or disseminate information that the price of any security listed in an
Exchange will or is likely to rise or fall because of manipulative market operations of any
one or more persons conducted for the purpose of raising or depressing the price of the
security for the purpose of inducing the purpose of sale of such security.
4. To make false or misleading statement with respect to any material fact, which he knew
or had reasonable ground to believe was so false or misleading, for the purpose of
inducing the purchase or sale of any security listed or traded in an Exchange.
5. To effect, either alone or others, any series of transactions for the purchase and/or sale
of any security traded in an Exchange for the purpose of pegging, fixing or stabilizing the
price of such security; unless otherwise allowed by this Code or by rules of the
Commission.
24.2 No person shall use or employ, in connection with the purchase or sale of any security any
manipulative or deceptive device or contrivance.

10. It refers to the act of an insider or selling or buying the security of the issuer, while in
possession of material information with respect to the issuer or the security that is not
generally available to the public.
a. Tender offer
b. Manipulation of price
c. Fraudulent practice
d. Insider trading
According to Rule 27 - Insider trading,
It shall be unlawful for an insider to sell or buy a security of the issuer, while in possession of material
information with respect to the issuer or the security that is not generally available to the public, unless:
(a) The insider proves that the information was not gained from such relationship; or (b) If the other party
selling to or buying from the insider (or his agent) is identified, the insider proves: (i) that he disclosed the
information to the other party, or (ii) that he had reason to believe that the other party otherwise is also in
possession of the information. A purchase or sale of a security of the issuer made by an insider defined in
Section 3.8 of the Code, or such insider's spouse or relatives by affinity or consanguinity within the
second degree, legitimate or common-law, shall be presumed to have been effected while in possession
of material nonpublic information if transacted after such information came into existence but prior to
dissemination of such information to the public and the lapse of a reasonable time for market to absorb
such information; Provided, however, That this presumption shall be rebutted upon a showing by the
purchaser or seller that he was aware of the material nonpublic information at the time of the purchase or
sale.

Special Laws - Code of Corporate Governance for Publicly-Listed Companies

1. Which of the following approaches is currently adopted by the Code of Corporate
Governance for Publicly-Listed Companies?
a. Mandatory compliance and disclosure approach
b. Voluntary compliance and disclosure approach
c. Mandatory compliance with voluntary disclosure
d. Voluntary compliance with mandatory disclosure
According to the Code, it will adopt the “comply or explain” approach. This approach combines
voluntary compliance with mandatory disclosure. Companies do not have to comply with the
Code, but they must state in their annual corporate governance reports whether they comply with
the Code provisions, identify any areas of non- compliance, and explain the reasons for non-
compliance.

2. It is a director who has executive responsibility for the day-to-day operations of a part
or a whole of the organization.
a. Board of Directors
b. Management
c. Executive Director
d. Non-executive director
Executive director is a director who has executive responsibility of day-to-day operations of a part
or the whole of the organization.
Board of Directors – the governing body elected by the stockholders that exercises the corporate
powers of a corporation, conducts all its business and controls its properties.
Management – a group of executives given the authority by the Board of Directors to implement
the policies it has laid down in the conduct of the business of the corporation.
Non-executive director – a director who has no executive responsibility and does not perform any
work related to the operations of the corporation.

3. A compliance officer

a. should not have a rank of Senior Vice President or an equivalent position with
adequate stature and authority in the corporation. The
b. should not be a member of the Board of Directors
c. should not annually attend a training on corporate governance
d. should not assist the Board of Directors in their (BOD's) duties
According to Recommendation 1.6, the Board should ensure that it is assisted in its duties by a
Compliance Officer, who should have a rank of Senior Vice President or an equivalent position
with adequate stature and authority in the corporation. The Compliance Officer should not be a
member of the Board of Directors and should annually attend a training on corporate governance.

4. Which of the following is NOT a ground for permanent disqualification of a director?

a. convicted by final judgment or order by a competent judicial or administrative body of
any crime that involves the purchase or sale of securities, as defined in the
Securities Regulation Code
b. convicted by final judgment or order by a court, or competent administrative body of
an offense involving moral turpitude
c. judicially declared as insolvent
d. absence in more than fifty percent of all regular and special meetings of the Board
during his incumbency
As explained in Recommendation 2.6, this event is only a ground for temporary disqualifications.

5. It formalizes and clearly states the BOD's roles, responsibilities, and accountabilities
in carrying out their fiduciary duties. It should serve as a guide to the directors in the
performance of their functions and should be publicly available and posted on the
company’s website.
a. Risk management policy
b. Articles of incorporation
c. By laws
d. Board charter
According to Recommendation 2.12, the Board should have a Board Charter that formalizes and
clearly states its roles, responsibilities and accountabilities in carrying out its fiduciary duties. The
Board Charter should serve as a guide to the directors in the performance of their functions and
should be publicly available and posted on the company’s website.

6. Which of the following committees is NOT considered a Board committee necessary

to support the Board in the effective performance of its functions? *
a. Audit Committee
b. Board Risk Oversight Committee
c. Related Party Transaction Committee
d. Food Committee
According to Recommendation 3.1, The Board should establish board committees that focus on
specific board functions to aid in the optimal performance of its roles and responsibilities. Board
committees such as the Audit Committee, Corporate Governance Committee, Board Risk
Oversight Committee and Related Party Transaction Committee are necessary to support the
Board in the effective performance of its functions.

7. Which of the following committees is tasked with ensuring compliance with and proper
observance of corporate governance principles and practices?
a. Audit Committee
b. Board Risk Oversight Committee
c. Related Party Transaction Committee
d. Corporate Governance Committee
According to Recommendation 3.3, The Board should establish a Corporate Governance
Committee that should be tasked to assist the Board in the performance of its corporate
governance responsibilities, including the functions that were formerly assigned to a Nomination
and Remuneration Committee. It should be composed of at least three members, all of whom
should be independent directors, including the Chairman.

8. Which of the following is NOT an appropriate objective or reason for including

independent directors on the Board?
a. to ensure the exercise of independent judgment on corporate affairs and proper
oversight of managerial performance
b. prevention of conflict of interests and balancing of competing demands of the
corporation
c. to separate the function of the chairman of the board and the CEO/president of the
company
d. more objective decision-making, particularly in conflict of interest situations.
The separation of BOD's chairman and the president is not a function of an independent director.
According to the explanation of Recommendation 5.1, the presence of independent directors in
the Board is to ensure the exercise of independent judgment on corporate affairs and proper
oversight of managerial performance, including prevention of conflict of interests and balancing of
competing demands of the corporation. There is increasing global recognition that more
independent directors in the Board lead to more objective decision-making, particularly in the
conflict of interest situations. In addition, experts have recognized that there are varying opinions
on the optimal number of independent directors in the board. However, the ideal number ranges
from one-third to a substantial majority.

9. Which of the following committees was tasked with functions formerly assigned to a
Nomination and Remuneration Committee?
a. Corporate Governance Committee
b. Related Party Transaction Committee
c. Board Risk Oversight Committee
d. Audit Committee
According to Recommendation 3.3, The Board should establish a Corporate Governance
Committee that should be tasked to assist the Board in the performance of its corporate
governance responsibilities, including the functions that were formerly assigned to a Nomination
and Remuneration Committee.
10. Which of the following recommendations is proper to avoid conflict and to foster an
appropriate balance of power, increased accountability and better capacity for
independent decision-making on the corporate board? *
a. positions of Chairman of the BOD and Chief Executive Officer (CEO) be held by the
same individual
b. positions of Chairman of the BOD and Chief Executive Officer (CEO) be held by
different individuals
c. companies should neither have a BOD's chairman nor a CEO
d. companies should either have a BOD's chairman or a CEO but cannot have both
According to the explanation of Recommendation 5.4, to avoid conflict or a "split board" and to
foster an appropriate balance of power, increased accountability and better capacity for
independent decision-making, it is recommended that the positions of Chairman and Chief
Executive Officer (CEO) be held by different individuals.

Special Laws - Intellectual Property Code of the Philippines

1. Which of the following is NOT an appropriate reason or objective for the Philippines to
establish an effective intellectual and industrial property system?
a. The establishment is vital to the development of domestic and creative activity,
facilitates transfer of technology, attracts foreign investments, and ensures market
access for our products.
b. It protects and secures the exclusive rights of scientists, inventors, artists and other
gifted citizens to their intellectual property and creations, particularly when beneficial
to the people.
c. It is to promote intellectual property theft that involves robbing people or companies
of their ideas, inventions, and creative expressions which can include everything
from trade secrets and proprietary products and parts to movies, music, and
software.
d. It is to promote the diffusion of knowledge and information for the promotion of
national development and progress and the common good.
According to Section 2 of 8293, the State recognizes that an effective intellectual and industrial
property system is vital to the development of domestic and creative activity, facilitates transfer of
technology, attracts foreign investments, and ensures market access for our products. It shall
protect and secure the exclusive rights of scientists, inventors, artists and other gifted citizens to
their intellectual property and creations, particularly when beneficial to the people, for such
periods as provided in this Act.
The use of intellectual property bears a social function. To this end, the State shall promote the
diffusion of knowledge and information for the promotion of national development and progress
and the common good.
It is also the policy of the State to streamline administrative procedures of registering patents,
trademarks and copyright, to liberalize the registration on the transfer of technology, and to
enhance the enforcement of intellectual property rights in the Philippines.

2. The term "intellectual property rights" does NOT include

a. Copyrights
b. Industrial designs
c. Geographic indications
d. Financial statements
According to Section 4.1, the term "intellectual property rights" consists of:
a) Copyright and Related Rights;
b) Trademarks and Service Marks;
c) Geographic Indications;
d) Industrial Designs;
e) Patents;
f) Layout-Designs (Topographies) of Integrated Circuits; and
g) Protection of Undisclosed Information (n, TRIPS).

3. The right to a patent does not belong to

a. its inventor
b. its inventor's heirs
c. its inventor's assignees
d. its inventor's government
According to Section 28 if Chapter III, The right to a patent belongs to the inventor, his heirs, or
assigns. When two (2) or more persons have jointly made an invention, the right to a patent shall
belong to them jointly.

4. On January 01, 2004, Mang Tomas invented the technology of Bamboo Lamp. On the
same day but on a different place, Mang Pedro invented the same technology of
Bamboo Lamp. Mang Pedro made an application for registration with Intellectual
Property Office. Who has better rights over the patent of the technology?
a. Mang Pedro
b. Mang Tomas
c. Jointly by Mang Pedro and Mang Tomas
d. The Government
According to Section 29 of Chapter III, If two (2) or more persons have made the invention
separately and independently of each other, the right to the patent shall belong to the person who
filed an application for such invention, or where two or more applications are filed for the same
invention, to the applicant who has the earliest filing date or, the earliest priority date.

5. The use of a patented process without the authorization of the patentee constitutes
a. Patent laundering
b. Patent infringement
c. Patent misappropriation
d. Patent destruction
According to Section 76 of Chapter VIII, the making, using, offering for sale, selling, or importing a
patented product or a product obtained directly or indirectly from a patented process, or the use
of a patented process without the authorization of the patentee constitutes patent infringement.

6. It means any visible sign capable of distinguishing the goods (trademark) or services
(service mark) of an enterprise and shall include a stamped or marked container of
goods.
a. Patent
b. Copyright
c. Mark
d. Insignia
According to Section 121.1 of Part III, "Mark" means any visible sign capable of distinguishing the
goods (trademark) or services (service mark) of an enterprise and shall include a stamped or
marked container of goods.

7. John believes that the registration of a mark made by an individual, personally

unknown to him, will damage him and his current business. Accordingly, John should *
a. file a rescission of the contract since it affects a third person
b. file an oral opposition and argument at the presence of the Intellectual Property
Office and the party accused
c. file with the Intellectual Property Office an opposition to the application within thirty
(30) days after the publication of the application
d. file an opposition and require the applicant of the Mark and the Intellectual Property
Office damages
According to Section 134, any person who believes that he would be damaged by the registration
of a mark may, upon payment of the required fee and within thirty (30) days after the publication,
file with the Intellectual Property Office an opposition to the application. Such opposition shall be
in writing and verified by the oppositor or by any person on his behalf who knows the facts, and
shall specify the grounds on which it is based and include a statement of the facts relied upon.
Copies of certificates of registration of marks registered in other countries or other supporting
documents mentioned in the opposition shall be filed therewith, together with the translation in
English, if not in the English language. For good cause shown and upon payment of the required
surcharge, the time for filing an opposition may be extended by the Director of Legal Affairs, who
shall notify the applicant of such extension. The Regulations shall fix the maximum period of time
within which to file the opposition.

8. At its expiration, a certificate of registration of a mark may be renewed for how many
periods?
a. For periods of ten years
b. For periods of forty years
c. For periods of twenty years
d. For periods of thirty years
According to Section 146, a certificate of registration may be renewed for periods of ten (10)
years at its expiration upon payment of the prescribed fee and upon the filing of a request.
9. Literary and artistic works, are original intellectual creations in the literary and artistic
domain protected from the moment of their
a. Creation
b. Approval
c. Application
d. Consummation
According to Section 172, literary and artistic works are original intellectual creations in the
literary and artistic domain protected from the moment of their creation.

10. Which of the following is INCORRECT regarding the term of protection of

copyrights?
a. Copyrights of literary and artistic works such as books, musical compositions and
paintings be protected during the life of the author and for fifty (50) years after his
death.
b. Copyrights of literary and artistic works such as books, musical compositions and
paintings under anonymous or pseudonyms shall be protected for fifty years from the
date on which the work was first lawfully published.
c. Copyrights of photographic works shall be for fifty years from publication of the work
and, if unpublished, fifty years from the making.
d. Copyrights of literary and artistic works such as books, musical compositions and
paintings with joint ownership shall be protected during the total sum of the lives of
the author/s.
According to Section 213.2 of Chapter XVI, in case of works of joint authorship, the economic
rights shall be protected during the life of the last surviving author and for fifty (50) years after his
death.

Special Laws - Data Privacy Act

1. Which of the following is NOT an objective of the Data Privacy Act?
a. safeguard the fundamental human right of every individual to privacy while ensuring
free flow of information for innovation, growth, and national development.
b. recognize the vital role of information and communications technology in nation-
building
c. enforce the State’s inherent obligation to ensure that personal data in information
and communications systems in the government and in the private sector are
secured and protected.
d. permits disclosure of sensitive personal data
According to Section 2, – It is the policy of the State to protect the fundamental human right of
privacy, of communication while ensuring free flow of information to promote innovation and
growth. The State recognizes the vital role of information and communications technology in
nation-building and its inherent obligation to ensure that personal information in information and
communications systems in the government and in the private sector are secured and protected.

2. What year was the data privacy act created?

a. 2018
b. 2016
c. 2014
d. 2012
According to Section 45, the Act shall take effect fifteen (15) days after its publication in at least
two (2) national newspapers of general circulation.
The act is a consolidation of Senate Bill No. 2965 and House Bill No. 4115 was finally passed by
the Senate and the House of Representatives on June 6, 2012.

3. Which of the following statements is NOT true about the duty of confidentiality?
a. Members, employees, and consultants of the National Privacy Commission shall
ensure at all times the confidentiality of any personal data that come to their
knowledge
b. Members, employees, and consultants of the National Privacy Commission shall
ensure at all times the confidentiality of any personal data that come to their
possession
c. The duty of confidentiality shall remain even after their term, employment, or contract
has ended.
d. The duty of confidentiality shall expire after their term, employment, or contract has
ended.
According to Section 12 of the IRR, members, employees, and consultants of the Commission
shall ensure at all times the confidentiality of any personal data that come to their knowledge and
possession: Provided, that such duty of confidentiality shall remain even after their term,
employment, or contract has ended.

4. Which of the following is CORRECT regarding the scope of the Data Privacy Act?
a. Duly accredited reporters of any newspaper shall not be compelled to reveal the
source of any news report or information appearing in said publication if it was
related in any confidence to such reporter.
b. The burden of proving that the Act and the implementing rules and regulations (IRR)
are not applicable to a particular information falls on those involved in the processing
of personal data or the party claiming the applicability.
c. The act and implementing rules and regulations (IRR) apply to the processing of
personal data by any natural and juridical person in the government only and not to
those in the private sector.
d. The act and implementing rules and regulations (IRR) apply to the processing of
personal data by any natural and juridical person inside the Philippines only.
In relation with the question, the following are Rules for Scope of Application of the Act and its
IRR:
Section 4: The Act and these Rules apply to the processing of personal data by any natural and
juridical person in the government or private sector. They apply to an act done or practice
engaged in and outside of the Philippines
Section 6.b: The burden of proving that the Act and these Rules are not applicable to a particular
information falls on those involved in the processing of personal data or the party claiming the
non-applicability.
Section 7: Publishers, editors, or duly accredited reporters of any newspaper, magazine or
periodical of general circulation shall not be compelled to reveal the source of any news report or
information appearing in said publication if it was related in any confidence to such publisher,
editor, or reporter.

5. It is an independent body mandated to administer and implement the Data Privacy

Act, and to monitor and ensure compliance of the country with international standards
set for personal data protection.
a. Freedom of Information Commission
b. Anti-Money Laundering Council
c. National Privacy Commission
d. National Telecommunications Commission
According to Section 8, the National Privacy Commission is an independent body mandated to
administer and implement the Act, and to monitor and ensure compliance of the country with
international standards set for personal data protection.

6. Which of the following is NOT a function of the National Privacy Commission?

a. Develop, promulgate, review or amend the data privacy acts and its provisions.
b. Recommend technical security measures for personal data protection, encryption,
and access to sensitive personal information maintained by government agencies.
c. Ensure proper and effective coordination with data privacy regulators in other
countries and private accountability agents
d. Issue guidelines for physical security measures for personal data protection.
According to Section 9.a and Section 9.a.5, the commission can only develop, promulgate, review
or amend RULES and REGULATIONS for the effective implementation of the Act but not amend
or modify the Act itself. Also, the commission can only PROPOSE legislation, amendments or
modifications to Philippine laws on privacy or data protection, as may be necessary.

7. These are people whose personal information is collected, stored, and processed.
a. National Privacy Commission
b. Data Subjects
c. Data Controller
d. Personal Data
According to Section 2.d, “Data subject” refers to an individual whose personal, sensitive
personal, or privileged information is processed.
8. If you feel that your personal data has been misused, maliciously disclosed, or
improperly disposed, or if any of the rights discussed here have been violated, you have
the right to
a. File a complaint to the National Privacy Commission
b. Reveal some sensitive data regarding the other party
c. Destroy the other party's reputation
d. File a complaint to Raffy Tulfo in Action
According Section 9.e, The Commission shall adjudicate on complaints and investigations on
matters affecting personal data: Provided, that in resolving any complaint or investigation, except
where amicable settlement is reached by the parties, the Commission shall act as a collegial
body. This includes (1) Receiving complaints and instituting investigations regarding violations of
the Act, these Rules, and other issuances of the Commission, including violations of the rights of
data subjects and other matters affecting personal data.

9. Which of the following is NOT a qualification of the Privacy Commissioner?

a. Must be above 35 years of age.
b. Must be of good moral character.
c. Must have unquestionable integrity and known probity.
d. recognized expert in the field of information technology and data privacy.
According to Section 9 of the law, the Privacy Commissioner must be at least thirty-five (35) years
of age and of good moral character, unquestionable integrity and known probity, and a
recognized expert in the field of information technology and data privacy. The Privacy
Commissioner shall enjoy the benefits, privileges and emoluments equivalent to the rank of
Secretary.

10. Who is the current Privacy Commissioner? (Can be found on their website)
a. Raymund Enriquez Liboro
b. Atty. John Henry Du Naga
c. Atty. Leandro Angelo Y. Aguirre
d. President Rodrigo Duterte
The current (2020) Privacy Commissioner is Raymund Enriquez Liboro. The two deputies that will
assist the Privacy Commissioner are Atty. John Henry Du Naga and Atty. Leandro Angelo Y.
Aguirre.

Special Laws - Ease of Doing Business and Efficient Government Service

1. A fixer is NOT
a. An individual not officially involved in the operation of a government office who has
access to people working therein.
b. An individual officially involved in the operation of a government office who has
access to people working therein.
c. An individual not officially involved in the operation of a government agency who has
no access to people working therein.
d. An individual officially involved in the operation of a government agency who has
access to people working therein.
According to the Act, a Fixer is any individual whether or not officially involved in the operation of
a government office or agency who has access to people working therein, and whether or not in
collusion with them, facilitates speedy completion of transactions for pecuniary gain or any other
advantage or consideration.

2. Which of the following departments and agencies is not covered by the Act?
a. Government agencies located on foreign lands
b. Local government units
c. Government-owned and -controlled corporations
d. Non-stock and nonprofit private corporations
According to Section 3, the Act shall apply to all government offices and agencies including local
government units (LGUs), government-owned or controlled corporations and other government
instrumentalities, whether located in the Philippines or abroad, that provide services covering
business and nonbusiness related transactions as defined in this Act.

3. It is a type of transaction of applications or requests submitted by applicants or

requesting parties of a government office or agency which only require ministerial
actions on the part of the public officer or employee or that which present only
inconsequential issues for the resolution by an officer or employee of said government.
a. Arm's length transaction
b. Related -party transactions
c. Complex transactions
d. Simple transactions
4. Which of the individuals will NOT be part of the Ease of Doing Business and Anti-Red
Tape Advisory Council?
a. Secretary of DepEd
b. Secretary of the DTI
c. Secretary of DICT
d. Secretary of DILG
According to Section 19, the Council shall be composed of the Secretary of the DTI as
Chairperson, the Director General of the Authority as Vice-Chairperson, the Secretaries of the
DICT, DILG and Department of Finance (DOF), and two (2) representatives from the private
sector as the members. The department secretaries may designate their representatives, who
shall sit in a permanent capacity, with no less than Undersecretary in rank, and their acts shall be
considered the acts of their principals. The private sector representatives shall be appointed by
the President of the Philippines for a term of three (3) years, and may be reappointed only once,
from the nominees submitted by reputable business groups or associations.

5. Which of the following agencies or departments was tasked to make and complete a
web-based software enabled business registration system that is acceptable to the
public as mandated under Section 26 of the Act?
a. Department of the Interior and Local Government
b. Department of Trade and Industry
c. Department of Information and Communications Technology
d. Department of Science and Technology
According to Section 7, once the Department of Information and Communications Technology
(DICT) has completed a web-based software enabled business registration system that is
acceptable to the public as mandated under Section 26 of the Act, all transactions shall be
coursed through such system. All government agencies including LGUs shall adopt a zero-
contact policy.

6. The service standards of all government agencies including departments, bureaus,

offices, instrumentalities, or government-owned and/or –controlled corporations, or
LGUs is called
a. Generally Accepted Service Standards
b. Citizens Charter
c. Corporate Charter
d. Code of Standards
According to Section 6, all government agencies including departments, bureaus, offices,
instrumentalities, or government-owned and/or –controlled corporations, or LGUs shall set up
their respective most current and updated service standards to be known as the Citizen’s Charter
in the form of information billboards which shall be posted at the main entrance of offices or at the
most conspicuous place, in their respective websites and in the form of published materials
written either in English, Filipino, or in the local dialect.

7. Which of the following is INCORRECT regarding the most current and updated
service standards of all government agencies?
a. It may be written in local dialect.
b. It may be posted at the main entrance of the office
c. It shall detail the amount of fees involved in delivering the service, if necessary.
d. It shall detail the procedure to obtain a particular service of another unrelated
government agency.
According to Section 6, All government agencies including departments, bureaus, offices,
instrumentalities, or government-owned and/or –controlled corporations, or LGUs shall set up
their respective most current and updated service standards to be known as the Citizen’s Charter
in the form of information billboards which shall be posted at the main entrance of offices or at the
most conspicuous place, in their respective websites and in the form of published materials
written either in English, Filipino, or in the local dialect, that detail:
a) A comprehensive and uniform checklist of requirements for each type of application or
request;
b) The procedure to obtain a particular service;
c) The person/s responsible for each step;
d) The maximum time to conclude the process;
e) The document/s to be presented by the applicant or requesting party, if necessary;
 f) The amount of fees, if necessary; and
g) The procedure for filing complaints.

8. It is an administrative process that is not necessarily illegal but is ineffective or

detrimental in achieving the process's objective and as a result, produces suboptimal
outcomes.
a. Nonbusiness transactions
b. Fixer
c. Redundant process
d. Red tape
According to the definition of terms of the Act, red tape is any regulation, rule, or administrative
procedure or system that is ineffective or detrimental in achieving its intended objectives and, as
a result, produces slow, suboptimal, and undesirable social outcomes.

9. Who among the individuals shall be primarily responsible for the implementation of the
Ease of Doing Business and Efficient Government Service Delivery Act?
a. Any individual whether or not officially involved in the operation of a government
office or agency who has access to people working therein
b. The head of the government office
c. Officers directly supervising the office or agency concerned
d. Front desk officer
According to Section 8, the head of the office or agency shall be primarily responsible for the
implementation of this Act and shall be held accountable to the public in rendering fast, efficient,
convenient and reliable service. All transactions and processes are deemed to have been made
with the permission or clearance from the highest authority having jurisdiction over the
government office or agency concerned.
10. What is the maximum limit of signatories or signature for any document?
a. One
b. Two
c. Three
d. Four
According to Section 9.d, the number of signatories in any document shall be limited to a
maximum of three (3) signatures which shall represent officers directly supervising the office or
agency concerned: Provided, that in case the authorized signatory is on official business or
official leave, an alternate shall be designated as signatory. Electronic signatures or pre-signed
license, clearance, permit, certification or authorization with adequate security and control
mechanism may be used.

Special Laws - Electronic Commerce Act

1. Which of the following is the objective of the Electronic Commerce Act, RA No. 8792?
a. To facilitate domestic and international dealings, transactions, arrangements,
agreements, contracts and exchanges and storage of information through the
utilization of electronic, optical and similar medium, mode, instrumentality and
technology.
b. To ensure that the Philippines shall not be used as a money laundering site for the
proceeds of any unlawful activity.
c. To protect and preserve the integrity of the Philippine financial system, including the
confidentiality of bank accounts.
d. To extend cooperation, consistent with Philippines’ foreign policy, in transnational
investigations and prosecutions of persons involved in money laundering activities
wherever committed.
According to Section 3, the Act aims to facilitate domestic and international dealings,
transactions, arrangements, agreements, contracts and exchanges and storage of information
through the utilization of electronic, optical and similar medium, mode, instrumentality and
technology to recognize the authenticity and reliability of electronic documents related to such
activities and to promote the universal use of electronic transaction in the government and
general public.

2. It refers to information generated, sent, received or stored by electronic, optical or

similar means.
a. Electronic signature
b. Electronic document
c. Electronic key
d. Electronic Data message

According to Section 5, "Electronic Data message" refers to information generated, sent, received
or stored by electronic, optical or similar means.
"Electronic signature" refers to any distinctive mark, characteristic and/or sound in electronic
form, representing the identity of a person and attached to or logically associated with the
electronic data message or electronic document or any methodology or procedures employed or
adopted by a person and executed or adopted by such person with the intention of authenticating
or approving an electronic data message or electronic document.
"Electronic document" refers to information or the representation of information, data, figures,
symbols or other modes of written expression, described or however represented, by which a
right is established or an obligation extinguished, or by which a fact may be proved and affirmed,
which is received, recorded, transmitted, stored, processed, retrieved or produced electronically.
"Electronic key" refers to a secret code which secures and defends sensitive information that
crosses over public channels into a form decipherable only with a matching electronic key.

3. Which of the following is INCORRECT regarding electronic signatures?

a. An electronic signature on the electronic document shall be equivalent to the
signature of a person on a written document if that signature is proved by showing
that a prescribed procedure, not alterable by the parties interested in the electronic
document.
b. In any proceeding involving an electronic signature, it shall be presumed that the
electronic signature is the signature of the person to whom it correlates
c. In any proceeding involving an electronic signature, it shall be presumed that the
electronic signature was affixed by that person with the intention of signing or
approving the electronic document unless the person relying on the electronically
signed electronic document knows or has notice of defects in or unreliability of the
signature or reliance on the electronic signature is not reasonable under the
circumstances.
d. For an electronic signature to be legally binding under the Act, it is recommended
that all electronic signatures be backed up by physical signatures including the
signed documents.
According to Section 8: An electronic signature on the electronic document shall be equivalent to
the signature of a person on a written document if that signature is proved by showing that a
prescribed procedure, not alterable by the parties interested in the electronic document.
Section 9: In any proceeding involving an electronic signature, it shall be presumed that -
a) The electronic signature is the signature of the person to whom it correlates; and
b) The electronic signature was affixed by that person with the intention of signing or
approving the electronic document unless the person relying on the electronically signed
electronic document knows or has notice of defects in or unreliability of the signature or
reliance on the electronic signature is not reasonable under the circumstances.

4. Which of the following is NOT an appropriate procedure to establish the integrity of

the information and communication in which an electronic data message or electronic
document is recorded or stored?
a. By evidence that at all material times the information and communication system or
other similar device was operating in a manner that did not affect the integrity of the
electronic data message and/or electronic document, and there are no other
reasonable grounds to doubt the integrity of the information and communication
system
b. By showing that the electronic data message and/or electronic document was
recorded or stored by a party to the proceedings who is adverse in interest to the
party using it
c. By showing that the electronic data message and/or electronic document was
recorded or stored in the usual and ordinary course of business by a person who is
not a party to the proceedings and who did not act under the control of the party
using the record.
d. By showing that the manpower behind the process and maintenance of the
information and communication are people with integrity and expertise.
According to Section 11, in the absence of evidence to the contrary, the integrity of the
information and communication system in which an electronic data message or electronic
document is recorded or stored may be established in any legal proceeding
a) By evidence that at all material times the information and communication system or other
similar device was operating in a manner that did not affect the integrity of the electronic
data message and/or electronic document, and there are no other reasonable grounds to
doubt the integrity of the information and communication system;
b) By showing that the electronic data message and/or electronic document was recorded
or stored by a party to the proceedings who is adverse in interest to the party using it; or
c) By showing that the electronic data message and/or electronic document was recorded
or stored in the usual and ordinary course of business by a person who is not a party to
the proceedings and who did not act under the control of the party using the record.

5. Unless otherwise agreed between the originator and the addressee, the dispatch of
an electronic data message or electronic document occurs when
a. it enters an information system outside the control of the originator
b. it enters an information system not possessed by the originator
c. it enters an information system not owned by the originator
d. it enters another part of the information system of the originator
According to Section 21, unless otherwise agreed between the originator and the addressee, the
dispatch of an electronic data message or electronic document occurs when it enters an
information system outside the control of the originator or of the person who sent the electronic
data message or electronic document on behalf of the originator.

6. Which of the following is outside the scope of application of the electronic commerce
act?
a. Representation of information produced electronically used in the context of non-
commercial activities within the Philippines
b. Written expression transmitted electronically used in the context of commercial
activities used in international dealings
c. Information generated by electronic means used in the context of non-commercial
activities including storage of information
d. Data, figures and symbols by which a right is established which is received,
recorded, transmitted and processed without the use of any electronic and other
similar means.
According to Section 4, the Act shall apply to any kind of *data message and **electronic
document used in the context of commercial and non-commercial activities to include domestic
and international dealings, transactions, arrangements, agreements, contracts and exchanges
and storage of information.
*"Electronic Data message" refers to information generated, sent, received or stored by
electronic, optical or similar means.
**"Electronic document" refers to information or the representation of information, data, figures,
symbols or other modes of written expression, described or however represented, by which a
right is established or an obligation extinguished, or by which a fact may be proved and affirmed,
which is received, recorded, transmitted, stored, processed, retrieved or produced electronically.

7. A service provider does NOT refer to a provider of

a. Monetary transactions such as deposits, loans, investments, and currency exchange.
b. The necessary technical means by which electronic documents of an originator may
be stored and made accessible to a designated or undesignated third party
c. Such service providers shall have no authority to modify or alter the content of the
electronic data message or electronic document received or to make any entry
therein on behalf of the originator, addressee or any third party unless specifically
authorized to do so, and who shall retain the electronic document in accordance with
the specific request or as necessary for the purpose of performing the services it was
engaged to perform
d. On-line services or network access, or the operator of facilities thereof, including
entities offering the transmission, routing, or providing of connections for online
communications, digital or otherwise, between or among points specified by a user,
of electronic documents of the user’s choosing
According to Section 5.j, "Service provider" refers to a provider of -
i. On-line services or network access, or the operator of facilities thereof, including entities
offering the transmission, routing, or providing of connections for online communications,
digital or otherwise, between or among points specified by a user, of electronic
documents of the user’s choosing; or
 ii. ii) The necessary technical means by which electronic documents of an originator may be
stored and made accessible to a designated or undesignated third party;
iii. iii) Such service providers shall have no authority to modify or alter the content of the
electronic data message or electronic document received or to make any entry therein on
behalf of the originator, addressee or any third party unless specifically authorized to do
so, and who shall retain the electronic document in accordance with the specific request
or as necessary for the purpose of performing the services it was engaged to perform.

8. It refers to any device or apparatus which, by electronic, electro-mechanical or

magnetic impulse, or by other means, is capable of receiving, recording, transmitting,
storing, processing, retrieving, or producing information, data, figures, symbols or other
modes of written expression according to mathematical and logical rules or of performing
any one or more of those functions.
a. Information System
b. Intermediary
c. Communication System
d. Computer
According to Section 5.b, "Computer" refers to any device or apparatus which, by electronic,
electro-mechanical or magnetic impulse, or by other means, is capable of receiving, recording,
transmitting, storing, processing, retrieving, or producing information, data, figures, symbols or
other modes of written expression according to mathematical and logical rules or of performing
any one or more of those functions.

9. Which of the following committees will not be allowed to be part of the Congressional
Oversight Committee?
a. Trade and Industry/Commerce
b. Science and Technology
c. Finance and Appropriations
d. Nomination and Appointment
According to Section 35, There shall be a Congressional Oversight Committee composed of the
Committees on Trade and Industry/Commerce, Science and Technology, Finance and
Appropriations of both the Senate and House of Representatives, which shall meet at least every
quarter of the first two years and every semester for the third year after the approval of this Act to
oversee its implementation. The DTI, DBM, Bangko Sentral ng Pilipinas, and other government
agencies as may be determined by the Congressional Committee shall provide a quarterly
performance report of their actions taken in the implementation of this Act for the first three (3)
years.

10. Which of the following government agencies was not empowered to enforce the
provisions of the Electronic Commerce Act?
a. Department of Trade and Industry
b. Bangko Sentral ng Pilipinas
c. Department of Science and Technology
d. Department of Budget and Management
According to Section 34, the DTI, Department of Budget and Management and the Bangko
Sentral ng Pilipinas are hereby empowered to enforce the provisions of this Act and issue
implementing rules and regulations necessary, in coordination with the Department of
Transportation and Communications, National Telecommunications Commission, National
Computer Center, National Information Technology Council, Commission on Audit, other
concerned agencies and the private sector, to implement this Act within sixty (60) days after its
approval.