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ATTY. MICHAEL B. BONGALONTA CPA,MICB,MBA,CTT,DBA, MRIS,MRITAX

CONSUMER ACT 2023

1. What is the main objective of the Consumer Act of

the Philippines?
6. What is the principle of caveat emptor?
a. To promote competition in the market
b. To protect the interest of consumers a. Consumers have the right to information and
c. To encourage business growth and development
protection against hazards
d. To provide legal representation to consumers
b. Sellers have the responsibility to provide accurate
and complete information about their products
2. What government agency is responsible for the
c. Consumers have the responsibility to ensure the
implementation and enforcement of the Consumer Act
of the Philippines? quality and suitability of products before purchasing
d. Sellers have the responsibility to compensate
a. Department of Trade and Industry (DTI)
b. Bureau of Customs consumers for losses incurred during the use of their
c. Intellectual Property Office of the Philippines products
(IPOPHL)
d. Department of Justice
7. Can a consumer sue a supplier or manufacturer for
breach of warranty under the Consumer Act of the
3. What is the scope of protection under the Consumer
Philippines?
Act of the Philippines?
a. No, breach of warranty is not covered under the
a. Protection of consumers against defective products
Consumer Act
and hazardous goods or services b. Yes, only if the warranty is express
b. Protection of consumers against unfair business c. Yes, for both express and implied warranties
d. Yes, only if the warranty is for a period of at least
practices and deceptive advertising one year
c. Protection of consumers against abusive debt
collection and privacy violations
8. What is the difference between an implied and
d. All of the above express warranty?

a. There is no difference, the terms are synonymous

4. What is the definition of a consumer under the b. An implied warranty is provided by the supplier or
Consumer Act of the Philippines?
manufacturer while an express warranty is provided by
a. Any individual who purchases goods or services for the consumer
resale c. An implied warranty is not stated in writing, while an
b. Any individual who uses goods or services for express warranty is stated in writing
personal or household purposes d. None of the above
c. Any individual who uses goods or services for
business purposes
9. Can a supplier or manufacturer provide disclaimers
d. None of the above of warranties or liability for damages under the
Consumer Act of the Philippines?

5. Can a consumer file a complaint against a supplier a. Yes, disclaimers are allowed as long as they are
or manufacturer under the Consumer Act of the prominently displayed
Philippines?
b. No, disclaimers are not allowed under the Consumer
Act
a. Yes, within one year from the time the cause of
c. Yes, disclaimers are allowed for minor defects or
action arises
issues with the product
b. No, consumers are not allowed to file complaints
d. Yes, disclaimers are allowed for luxury products
under the Consumer Act
c. Yes, only if the supplier or manufacturer is a foreign
entity
d. Yes, only through a lawyer
10. What is the penalty for engaging in deceptive or a. A fine of up to P1,000,000 and imprisonment for up
false advertising under the Consumer Act of the
to 5 years
Philippines?
b. A fine of up to P500,000 and imprisonment for up to
a. A fine of up to P1,000,000 and imprisonment for up 3 years
to 5 years c. A fine of up to P250,000 and imprisonment for up to
b. A fine of up to P500,000 and imprisonment for up to 1 year
3 years d. None of the above
c. A fine of up to P250,000 and imprisonment for up to
1 year
16. Can a supplier or manufacturer be held liable for
d. None of the above
damages caused by a defective product under the
Consumer Act of the Philippines?

11. Can a consumer cancel a contract for a defective a. No, the consumer assumes all risk when using the
product under the Consumer Act of the Philippines?
product

a. Yes, within 7 days from the date of delivery b. Yes, if the supplier or manufacturer knew or should
b. Yes, within 30 days from the date of delivery have known about the defect
c. Yes, within one year from the date of delivery
c. Yes, only for defects that cause physical injury
d. No, consumers are not allowed to cancel contracts
under the Consumer Act d. None of the above

12. What is the penalty for selling hazardous goods or 17. What is the requirement for a supplier or
services under the Consumer Act of the Philippines? manufacturer to provide adequate warnings for their
products under the Consumer Act of the Philippines?
a. A fine of up to P1,000,000 and imprisonment for up
to 5 years a. The warnings must be stated in the product manual
b. A fine of up to P500,000 and imprisonment for up to
3 years or guide
c. A fine of up to P250,000 and imprisonment for up to b. The warnings must be presented in a language
1 year
understood by the consumer
d. None of the above
c. The warnings must be provided in a prominent and
conspicuous manner
13. What is the difference between a warranty and a
guarantee? d. None of the above

a. There is no difference, the terms are synonymous

b. A warranty is a promise to repair or replace a 18. Can a supplier or manufacturer be held liable for
harm caused by a product that was modified by the
product while a guarantee is a promise to refund the consumer?
purchase price
a. No, the supplier or manufacturer cannot be held
c. A warranty is voluntary while a guarantee is
liable for modifications made by the consumer
mandatory
b. Yes, if the modification was made with the approval
d. None of the above
or direction of the supplier or manufacturer
c. Yes, if the modification was made without the
14. Can a supplier or manufacturer use a consumer's knowledge or consent of the supplier or manufacturer
personal information without their consent under the
Consumer Act of the Philippines? d. None of the above

a. Yes, if the information is used for marketing

purposes 19. Can a supplier or manufacturer be held liable for
harm caused by a product that was misused by the
b. Yes, if the information is already publicly available consumer?
c. No, supplier or manufacturer cannot use a
a. No, the supplier or manufacturer cannot be held
consumer's personal information without their consent
liable for misuse by the consumer
d. Yes, if the information is used for improving the
b. Yes, if the product was designed or marketed in a
quality of products
way that encouraged or facilitated misuse
c. Yes, if the consumer did not receive adequate
15. What is the penalty for violating a cease and desist warnings or instructions for safe use of the product
order issued by the Director of the Bureau of Trade
Regulation and Consumer Protection? d. Yes, under all circumstances
20. Can a consumer file a complaint with the b. Yes, but only if the product was already used or
Department of Trade and Industry (DTI) for violation of
consumed
their rights under the Consumer Act of the Philippines?
c. Yes, but only if the product was on sale or
a. Yes, by filing a formal letter of complaint with the discounted
DTI regional or central office d. Yes, but only if the consumer did not receive
b. No, complaints must be filed through a lawyer or adequate warnings or instructions for safe use of the
legal representative product
c. Yes, by filing a complaint online through the DTI
website
d. Yes, only if the consumer has already filed a 25. Can a supplier or manufacturer be held liable for
damages caused by a product that was recalled?
complaint with the supplier or manufacturer but did
not receive adequate response a. Yes, if the recalled product caused harm prior to the
recall
b. Yes, if the recall was not conducted within a
21. Can a supplier or manufacturer be held liable for
reasonable period of time
damages caused by a product that was used beyond its
intended use? c. No, the supplier or manufacturer cannot be held
liable for damages caused by a recalled product
a. No, the supplier or manufacturer cannot be held
d. None of the above
liable for misuse by the consumer
b. Yes, if the consumer did not receive adequate
warnings or instructions for safe use of the product 26. Can a supplier or manufacturer offer voluntary
remedies for their products under the Consumer Act of
c. Yes, if the consumer continues to use the product
the Philippines?
after knowing or being warned of its limitations
a. Yes, as long as the remedies do not violate the
d. Yes, under all circumstances
rights of the consumers under the Consumer Act
b. No, voluntary remedies are not allowed under the
22. What is the difference between a refund and a
Consumer Act
replacement under the Consumer Act of the
Philippines? c. Yes, voluntary remedies are allowed only for minor
defects or issues with the product
a. There is no difference, the terms are synonymous
d. Yes, voluntary remedies are allowed only for
b. A refund is a return of the purchase price while a
products that are not used for personal or household
replacement is a substitution of the defective product
purposes
c. A refund is mandatory while a replacement is
voluntary
d. None of the above 27. Can a supplier or manufacturer offer discounts or
incentives to consumers who waive their rights under
the Consumer Act of the Philippines?

23. Can a supplier or manufacturer provide limited a. Yes, as long as the discount or incentive is
warranties for their products under the Consumer Act
reasonable and not coercive
of the Philippines?
b. No, suppliers or manufacturers cannot offer
a. Yes, as long as the limited warranty does not violate discounts or incentives to consumers who waive their
the rights of the consumers under the Consumer Act rights under the Consumer Act
b. No, limited warranties are not allowed under the c. Yes, as long as the discount or incentive is provided
Consumer Act after the consumer has already waived their rights
c. Yes, limited warranties are allowed only for luxury d. Yes, as long as the discount or incentive is provided
goods or services to consumers who file formal complaints under the
d. Yes, limited warranties are allowed only for products Consumer Act
that are not used for personal or household purposes

28. Can a supplier or manufacturer be held liable for

24. Can a supplier or manufacturer refuse to accept damages caused by a counterfeit product under the
returns or exchanges under the Consumer Act of the Consumer Act of the Philippines?
Philippines?
a. No, the supplier or manufacturer is not responsible
a. No, consumers have the right to return or exchange for counterfeit products
products within a reasonable period of time
b. Yes, if the supplier or manufacturer knew or should 33. Can a supplier or manufacturer provide automatic
warranty extensions for their products under the
have known of the counterfeit product
Consumer Act of the Philippines?
c. Yes, if the supplier or manufacturer does not provide
adequate warnings against counterfeit products a. Yes, as long as the automatic warranty extension is

d. None of the above reasonable and not coercive

b. No, automatic warranty extensions are not allowed
under the Consumer Act
29. Can a consumer file a complaint with the
c. Yes, automatic warranty extensions are allowed only
Department of Justice for violation of their rights under
the Consumer Act of the Philippines? for luxury goods or services
d. Yes, automatic warranty extensions are allowed only
a. No, the Department of Justice is not responsible for
for products that are not used for personal or
consumer complaints
household purposes
b. Yes, by filing a formal letter of complaint with the
Department of Justice regional or central office
c. Yes, by filing a complaint online through the 34. What is the difference between a consumer and a
buyer?
Department of Justice website
d. Yes, only if the consumer has already filed a
a. There is no difference, the terms are synonymous
complaint with the Department of Trade and Industry
b. A consumer uses the product for personal or
but did not receive adequate response
household purposes while a buyer purchases the
product for resale
c. A consumer is protected under the Consumer Act
30. Can a consumer waive their rights under the
Consumer Act of the Philippines through a contract or while a buyer is not
agreement?
d. None of the above

a. No, consumers cannot waive their rights under the

Consumer Act
35. Can a supplier or manufacturer be held liable for
b. Yes, as long as the waiver is explicit and compensatory damages caused by their defective
product under the Consumer Act of the Philippines?
conspicuous
c. Yes, but only for luxury goods or services a. Yes, if the consumer can prove the defect caused
d. None of the above the damages suffered
b. Yes, but only if the damages suffered are physical in
nature
31. What is the difference between a warranty of
merchantability and fitness for a particular purpose? c. No, the supplier or manufacturer cannot be held
liable for compensatory damages
a. There is no difference, the terms are synonymous
d. None of the above
b. A warranty of merchantability ensures that the
product is suitable for its intended use while a
warranty of fitness for a particular purpose ensures 36. Can a supplier or manufacturer be held liable for
punitive damages caused by their defective product
that the product is suitable for a specific intended use
under the Consumer Act of the Philippines?
c. A warranty of merchantability is voluntary while a
warranty of fitness for a particular purpose is a. No, punitive damages are not allowed under the

mandatory Consumer Act

d. None of the above b. Yes, if the supplier or manufacturer was grossly

negligent or intentionally caused harm
c. Yes, but only if the damages suffered exceed the
32. Can a supplier or manufacturer be held liable for
purchase price of the product
damages caused by a product that was mislabeled?
d. Yes, but only if the product was intended for
a. Yes, if the mislabeling caused harm to the consumer
children
b. Yes, if the mislabeling was intentional or reckless
c. No, the supplier or manufacturer cannot be held
37. Can a consumer file a criminal case against a
liable for mislabeling
supplier or manufacturer for violation of the Consumer
d. None of the above Act of the Philippines?

a. Yes, but only for serious violations of the law

b. Yes, for any violation of the law
c. No, consumers cannot file criminal cases under the
Consumer Act
d. Yes, but only through a lawyer

38. Can a supplier or manufacturer be held liable for

damages caused by a product that belongs to a third
party?

a. No, the supplier or manufacturer is not responsible

for third-party products
b. Yes, if the supplier or manufacturer knew or should
have known of the danger posed by the third-party
product
c. Yes, if the product was sold in combination with the
third-party product
d. None of the above

39. Can a supplier or manufacturer be held liable for

damages caused by a product that was imported from
another country?

a. No, the supplier or manufacturer is not responsible

for products imported from other countries
b. Yes, if the supplier or manufacturer was responsible
for the design or manufacture of the product
c. Yes, but only if the importation was unauthorized or
illegal
d. None of the above

40. Can a supplier or manufacturer be held liable for

damages caused by a product that was used together
with another product?

a. No, the supplier or manufacturer is not responsible

for damages caused by other products
b. Yes, if the supplier or manufacturer knew or should
have known of the danger posed by the other product
c. Yes, if the other product was defective or hazardous
d. Yes, but only if the supplier or manufacturer sold