REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS

Obligations
1. X and Y promised to deliver to C a specific cow. In this case,
a. The obligation is indivisible and solidary c. The obligation is divisible and solidary
b. The obligation is indivisible and joint d. The obligation is divisible and joint

2. On January 15, 2019, A obliged himself to give to B his only cow or his only dog or his only cat on December 25,
2019. On July 4, 2019, the cow died after giving birth to a young cow. Two months later, the cat died due to the
fault of A. And on November 1, 2019, the dog died due to a fortuitous event. Which of the following is true?
a. The obligation of A is extinguished
b. B is entitled to the young cow having been born after the perfection of the contract
c. A is liable for the value of the cat plus damages
d. B can require A to replace the cat by another cat which is equally satisfactory

3. In order that consignation shall produce the effect of payment it is not only essential that it must conform with
all the requisites of payment, but it is also essential that certain special requirements prescribed by law must be
complied with. Which of the following is not correct?
a. There must be a previous tender of payment
b. There is a debt due
c. The thing or amount due had been placed at the disposal of judicial authority
d. The notice previous to and after the consignation has been given to the persons interested
in the fulfillment of the obligation
CONTRACTS
4. Which of the following statements is wrong?
a. Creditors are protected in cases of contracts entered to defraud them
b. Contracts takes effect only between the parties, their assign, and heirs, except in case where the rights and
obligations arising from the contract are not transmissible by their nature, or by stipulation or by provision of
law
c. If a contract should contain some stipulation in favor of a third person, he may demand its fulfillment provided
he communicated his acceptance to the obligor before its revocation
d. In contracts creating real rights, third persons who come into possession of the object of
the contract is not bound thereby

5. Golda is the guardian of Marvin, a minor. She sold Marvin’s car with a fair value of P200,000 for just P170,000.
The contract entered into by Golda is
a. Voidable c. Valid
b. Void d. Rescissible

6. If mistake, fraud, inequitable, conduct, or accident has prevented a meeting of minds of the parties, the proper
remedy is ____________.
a. Reformation of the instrument c. Ratification of contract
b. Annulment of contract d. Specific Performance

7. Which of the following statements is true as regards a void contract?

a. A void contract may be ratified by the acceptance by a party to the contract of a benefit under its terms
b. The right to set up the defense of illegality of a void contract may be waived if the illegality is not raised
within a reasonable time
c. If a void contract is novated by a valid one, such novation is valid
d. The right to set up the defense of illegality of a void contract is imprescriptible

SALES
8. The following items, pertain to a contract of sale, which pertains to contract to sell?
a. Ownership of the thing sold is transferred upon delivery
b. Ownership of the thing is transferred to the buyer at some future time
c. The risk of loss is on the buyer upon delivery
d. The risk of loss is on the buyer if the price is not yet fully paid
9. O’s cellphone was stolen by X, who eventually sold it to B merchandising in greenhills. A then acquired the said
cellphone from B marketing, in good faith and for value. In this case,
a. O may recover the cellphone from A provided he reimburses the latter.
b. O may recover the cellphone from A even without reimbursement
c. O cannot recover the cellphone from A because it was acquired from a merchant
d. O cannot recover the cellphone from A because the latter is the third acquirer thereof.

CREDIT TRANSACTIONS
10. Essential elements of real estate mortgage, except
a. In case of foreclosure sale, the mortgagor is entitled to the excess
b. The mortgagor can sell even without the consent of the mortgagee
c. The thing mortgaged must be delivered to the creditor
d. To bind third persons it must be recorded in the Registry of Property
11. X constituted a chattel mortgage on a car (valued at Php 1M) to secure a Php 500,000 loan. For the mortgage to
be valid, X should have
a. The right to mortgage the car to the extent of half its value
b. Ownership of the car
c. Unqualified free disposal of his car
d. Registered the car in his name
BOUNCING CHECKS
12. Statement 1: For a person to be liable for violation of BP22, the check must have been issued for payment or
guaranty of a pre-existing obligation.
Statement 2: A person can be charged with estafa and violation of BP 22 at the same time without violating the rule
on Double Jeopardy.
a. True, True c. False, False
b. True, False d. False, True
13. Knowledge of insufficiency of funds in BP Blg 22 would be presumed if the check was
presented within __ days from the date of the check
a. 30 c. 90
b. 60 d. 120
CONSUMER PROTECTION
14. Lemon Law Rights period is:
a. within ten (10) months from the date of original delivery to the consumer, or up to fifteen thousand
(15,000) kilometers of operation after such delivery, whichever comes first.
b. within twelve (10) months from the date of original delivery to the consumer, or up to eighteen thousand (18,000)
kilometers of operation after such delivery, whichever comes first.
c. within twelve months from the date of original delivery to the consumer, or up to twenty thousand (20,000)
kilometers of operation after such sale, whichever comes first.
d. within twelve months from the date of original delivery to the consumer, or up to twenty thousand
(20,000) kilometers of operation after such delivery, whichever comes first.

15. Hazardous products that are extremely flammable must contain this word as part
of its labelling requirements:
a. Danger c. Warning
b. Caution d. Poison
FRIA
16. Which of the following is true regarding the creditor’s meeting?
a. presence of creditors holding claims amounting to at least two-thirds (2/3) of the liabilities shall be
necessary for holding a meeting
b. during the meeting, the creditors will vote for the proposed manner of payment by the debtor.
c. creditor who incurred his credit within 120 days prior to the filing of the petition shall be entitled to vote.
d. All of the above are true.
17. In this proceeding, the creditors will be called to a meeting to propose and agree on a schedule of payments and
to prevent the debtor from making any payment outside the necessary or legitimate expense of the business,
and the issuance of a suspension order to prevent pending executions against the debtor.
a. Rehabilitation c. Suspension of Payments
b. Liquidation d. None of the choices
18. First Statement: An out-of-court rehabilitation plan that is approved pursuant to an informal workout
framework shall have the same legal effect as confirmation of a plan under a court-supervised rehabilitation.
Second Statement: The Rehabilitation Plan shall take effect upon the lapse of 15 days from the date of the last
publication of notice thereof.
a. Both statements are correct c. Only the first statement is correct
b. Both statements are incorrect d. Only the second statement is correct
Philippine Competition Act
19. Restricting competition as to price, components thereof, or other terms of trade is considered a/an
a. Anti-competitive agreements c. Prohibited Merger
b. Abuse of Dominant Position d. Valid Transaction
20. S1: After the consummation of the merger agreement, the notifying entities should notify the Philippine
Competition Commission of their merger agreement for its review and approval.
S2: Merger and Acquisition which reached the threshold amount that is not reported to PCC is null and void.
a. True, True c. False, False
b. True, False d. False, True
Government Procurement Law
21. The highest possible amount for the reward of a contract for government procurement is also known as;
a. The ceiling budget for the contract c. The legal price for the contract
b. The approved budget for the contract d. The arm’s length price for the contract
22. If a bid price, as evaluated and calculated, is higher than the Approved Budget of the Contract, what shall the
BAC do?
a. Disqualify the bidder automatically
b. Give the bidder a chance to change its bid within 24 hours
c. Submit to the Head of the Procuring Entity the bid proposals of the bidder for his approval
d. Conduct another bidding for the bidder to qualify

Partnership
23. If no P & L ratio was agreed upon by the partners, losses and profits for the period shall be distributed
_______________
a. equally c. based on the original capital contribution ratio
b. based on the ending capital ratio d. based on the weighted average capital ratio
24. Gem, Mondy and Maddie formed a general partnership with the following contributions to the common fund:
Gem, P20,000; Mondy, P40,000; Maddie, P60,000. There was no agreement on the division of profits or
apportionment of losses. After some years of business operations, the assets of the partnership dwindled to
P30,000, so the partners agreed to stop their business. The partnership is indebted to Sansa for a loan of
P120,000. Under the circumstances, how much can Sansa collect from the partners?
a. Gem, P15,000; Mondy, P30,000; Maddie, P45,000
b. Gem, P20,000; Mondy, P40,000; Maddie, P60,000
c. Gem, P30,000; Mondy, P30,000; Maddie, P30,000
d. Gem, P40,000; Mondy, P40,000; Maddie, P40,000
25. Which of the following has the least priority when it comes to assets of a general partnership?
a. Those owing to general partners in respect to profits
b. Those owing to general partners in respect to capital
c. Those owing to general partners, other than capital or profits
d. Those to outside creditors
26. Which of the following cannot qualify as a Limited Partnership
a. Partnership composed of an industrial partner, a capitalist partner and a limited partner
b. Partnership composed of 2 capitalist partners, and an industrial partner
c. Partnership composed of no industrial partner, 3 capitalist partners and 2 limited partners
d. Partnership composed of 2 capitalist partners, 2 industrial partners and a limited partner
INSURANCE
27. This includes insurance against lightning, windstorm, tornado and earthquake
a. Life Insurance c. Casualty Insurance
b. Fire Insurance d. Microinsurance
28. The legitimate wife and children of Juan Dela Cruz are asking for the revocation or reduction in the insurance
proceeds designated to Juan’s common law wife and illegitimate child, Janice. To whom should the designated
proceeds go?
a. Common law wife and Janice c. Legitimate wife and children
b. Janice only d. Estate of the insured
COOPERATIVE
29. The cooperative principle exemplified by the rule that each member gets one vote:
a. Voluntary and Open Membership c. Member Economic Participation
b. Democrative Member Control d. Autonomy and Independence
30. An elected officer of a cooperative may be removed by _____ votes of the regular members present and
constituting a quorum, in a regular or special general assembly meeting called for that purpose.
a. 2/3 c. ½
b. ¾ d. 1/10
31. Any merger or consolidation of cooperatives shall be effective upon:
a. The issuance of the certificate of merger and consolidation by the CDA
b. The filing of the articles of merger and consolidation with the CDA
c. The election of the directors of the merged and consolidated cooperatives
d. The date indicated in the articles of merger and consolidation
PDIC LAW
32. Which of the following statements is correct?
a. All obligations or loans of the depositor with the closed bank as of bank closure shall be deducted from the
depositor’s total deposit with the said bank for purpose of computing the insured deposit
b. In case a depositor maintains a simple account and joint accounts with a closed bank, his insured deposit is PHP
500,000 for simple account and PHP 500,000 for a joint account
c. PDIC shall pay deposit insurance on all valid deposits of PHP 500,000 per depositor of a closed bank
d. In the case of a joint account involving a juridical person and a natural person, the maximum deposit of
PHP500,000 to such joint account shall be divided equally between the juridical person and the natural person

33. Mr. Domingo has the following deposit accounts in a closed bank (BDO):
Mr. Domingo’s Modeling Business (Sole Proprietorship) Checking Account – BDO Pasay City branch - P300,000
Mr. Domingo Savings Deposit – BDO-Taguig City branch - P400,000
Mr. Domingo and John Santos Time Deposit BDO-Manila City branch - P600,000
Mr. Domingo and Rey Langit Savings Deposit BDO-Lipa City branch - P800,000
What is the maximum deposit insurance coverage by PDIC in so far as Mr. Domingo is concerned?
a. P1,000,000 b. P1,200,000 c. P500,000 d. P800,000

BANK SECRECY
34. In order for a depositor or investor to waive the secrecy of his deposits and/or investments, his waiver must be:
A. In writing
B. Made orally or in writing
C. Communicated as soon as possible to the bank manager
D. Made orally only

35. Apple is the creditor of Liam. Upon demand, Liam failed to pay. Thus, Apple filed a case against Liam who has a
foreign currency denominated savings deposit account with Gab Bank. Subsequently, the court ordered that
Liam’s account be garnished to satisfy the judgment in favor of Apple. Liam complained that the garnishment
violated the bank secrecy law. Decide.
a. Liam is not correct because foreign deposits may be subject to garnishment and the bank may comply with the
order of garnishment without violating the bank secrecy law
b. Liam is correct because the process of garnishment, the information about his savings account is divulge to
the public
c. Liam is correct because the Bank Secrecy Law protects the disclosure of the existence of bank account of
depositors
d. Liam’s complaint is meritorious because foreign currency deposits are exempt from attachment, garnishment,
or any other order or process of any court, legislative body, government agency, or administrative body
TRUTH IN LENDING ACT
36. Under the Truth and Lending Act, the following are Finance charge except?
a. Interest c. Discount
b. Service charges d. Registration fee of registrable property
37. S1: Subsequent compliance of the requirements of the Truth in Lending Act will able the creditor/lender to
collect finance charges.
S2. The finance charges must be made known to the debtor at the time the loan contract is perfected.
a. True, True c. False, False
b. True, False d. False, True
AMLA LAW
38. What is the proper order of the stages of money laundering?
a. Layering – Placement – Integration c. Integration – Layering – Placement
b. Placement – Layering – Integration d. Placement – Integration – Layering
39. Statement 1: Covered institutions, when reporting covered transactions to AMLC, are not deemed to have
violated the Bank Secrecy Law; however, they cannot communicate the contents thereof, otherwise, they are
criminally liable.
Statement 2: A bank officer after having made a covered transaction report in the regular course of his
work in the bank, reported the same to AMLC, and the person who owns the deposit account was exposed with
criminal charges for kidnapping for ransom is not liable administratively, criminally or civilly.
a. True, True c. False, False
b. True, False d. False, True.
40. Suspicious Transactions are reported to the AMLC within ______ from occurrence:
a. The next working day c. 5 working days
b. 10 calendar days d. 15 working days
INTELLECTUAL PROPERTY ACT
41. Statement 1: Intellectual property right is a property right given to persons over the creation of their minds
Statement 2: IPR is natural right provided in the Philippine Constitution
a. Statement 1 is true and Statement 2 is false c. Both statements are true
b. Statement 1 is false and Statement 2 is true d. Both statements are false
42. The term of protection for copyright begins:
a. From the moment of creation c. From the issuance of the certificate of
b. From filing of the application registration
d. From the agreement of the parties
DPA
43. Who is a personal information controller below?
a. The person who processes information as instructed by another person or organization
b. An Individual who collects, holds, processes personal information in connection with the individual’s personal,
family, or household affairs
c. A juridical or natural person, qualified to act under the law, where a person outsources the processing of
personal information or sensitive personal information.
d. A person or organization who controls the collection, holding, processing or use of personal information.

44. Processing of Sensitive Personal Information shall be allowed in the following instances, except:
a. The processing is to protect the life and health of the data subject or another person, and the data subject is
not legally or physically able to express his or her consent prior to the processing
b. The processing is necessary for purposes of medical treatment, is carried out by a medical practitioner or a
medical treatment institution, and an adequate level of protection of personal information is ensured
c. The processing concerns such personal information as is necessary for the protection of lawful rights and
interests of natural or legal persons in court proceedings, or the establishment, exercise or defense of legal
claims, or when provided to government or public authority
d. None of the choices is an exception

E-COMMERCE
45. Any distinctive mark, characteristic and/or sound in electronic from, 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.
 a. Electronic Document c. Electronic Data Message
b. Electronic Signature d. Electronic Mark
46. First Statement: If the parties to an electronic document or electronic data message are both participants of the
designated information system, the time of receipt shall be upon entry of the ED or EDM in the designated
information system.
Second Statement: If there are multiple places of business, the place of dispatch shall be that which has the
closest relationship to the underlying transaction.
a. Both statements are correct c. Only the first statement is correct
b. Both statements are incorrect d. Only the second statement is correct
EASE OF DOING BUSINESS
47. They refer to 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 office
a. Simple transactions c. Ordinary transactions
b. Common transactions d. Normal transactions
48. In case of violation of the EDBA, to which government agency can the aggrieved party file a complaint?
i. Regional Trial Court where the agency concerned is located
ii. Civil Service Commission
iii. Office of the Ombudsman
iv. Department of Justice
a. i, ii, and iii only c. ii and iii only
b. i, ii, and iv only d. iii and iv only
LABOR LAW
48. What is the minimum amount of the 13th month pay?
a. One month pay
b. One-twelfth (1/12) of the total basic salary earned by an employee within a calendar year
c. One month pay or at least half of one month pay whichever is lower
d. One month pay or at least half of one month pay whichever is higher
49. Georgia works as a legal researcher in a Gen. Prof. She receives a daily rate of PHP 800.00 as compensation. How
much will she receive as compensation if the particular day where she reported for work is A special holiday
a. PHP 1,000 c. PHP 1200
b. PHP 1,040 d. PHP 1600
SSS LAW
50. If a deceased member has not paid the required 36 monthly contributions prior to the semester of death, his
beneficiaries shall be entitled to the higher between 12 times the monthly pension or:
a. Lump sum equivalent to the monthly pension times the number of monthly contributions paid to SSS
b. Lump sum equivalent to the monthly pension 36 times the monthly pension
to secondary beneficiaries in case no primary beneficiary
c. Monthly pension to primary beneficiary and dependent’s pension to
dependents for 36 monthly contributions
d. Monthly pension at the time the member dies
51. A solo parent female employee who gave birth shall be entitled to a maternity leave equivalent to:
a. 60 days c. 120 days
b. 105 days d. 150 days
Corporation
52. Which among the following is not a characteristic of corporation?
a. It is created by operation of law.
b. It is automatically dissolved upon the death of all stockholders.
c. The shares of stocks are transferable.
d. The stockholders are liable only to the extent of their investment.
53. This test of nationality of corporation is a three-level relationship test by which the percentage of Filipino equity
is computed in a corporation engaged in fully or partly nationalized areas of activity provided in the Constitution
and other nationalization laws, in cases where corporate shareholders are present in the situation, by attributing
the nationality of the second or even subsequent tier of ownership to determine the nationality of the corporate
shareholder
a. Place of incorporation test c. Dominancy test
b. Control test d. Grandfather rule test
54. When does an amendment to the articles of incorporation take effect?
a. Upon approval by the SEC or from the date of filing with the SEC if not acted upon within 6 months from the
date of filing for a cause not attributable to the corporation
b. Upon approval by the SEC or upon expiration of 6 months from the date of filing with the SEC if not acted
upon for a cause not attributable to the corporation
c. Upon approval by the SEC or from the date of filing with the SEC if not acted upon within 6 months from the
date of filing for a cause attributable to the corporation
d. Upon approval by the SEC or upon expiration of 6 months from the date of filing with the SEC if not acted
upon for a cause attributable to the corporation
55. When by-laws are adopted and filed prior to incorporation, which of the following is correct?
a. Approved and signed by all the incorporators
b. Approved by the stockholders representing at least 2/3 of the outstanding capital stock
c. Approved by the stockholders representing at least a majority of the outstanding capital stock
d. Approved and signed by at least 2/3 of the incorporators
56. When by-laws are adopted and filed after the incorporation, which of the following is correct?
a. Submitted within one (1) month after the filing of the Articles of Incorporation with the SEC
b. Approved and signed by at least a majority of the incorporators
c. Approved by the stockholders representing at least 2/3 of the outstanding capital stock
d. Approved by the stockholders representing at least a majority of the outstanding capital stock
57. The articles of incorporation of ABC Corporation provides for 7 directors. In the monthly meeting of the board of
directors held on April 8, 2015, directors B, C, D and E were present and the following resolutions were
approved:
A. A resolution for the purchase of a delivery truck from E Trading, a sole proprietorship owned by E. B, C, D
and E voted for the resolution

B. A resolution appointing T as the new corporate secretary where B, C, D and E voted for the resolution.
Which is correct?
a. Both resolutions are valid and do not need stockholders’ approval
b. Both resolutions are valid but need stockholders’ approval
c. Resolution A needs stockholders approval. Resolution B is valid
d. Resolution A is not valid. Resolution B needs stockholders’ approval
58. The rule is that no stock dividend shall be issued without the approval of stockholders representing at least 2/3
of the outstanding capital stock at a regular or special meeting called for the purpose. As to other forms of
dividends
a. A mere majority of the entire Board of Directors applies
b. A mere majority of the quorum of the Board of Directors applies
c. A mere majority of the votes of stockholders representing the outstanding capital stock applies
d. The same rule of 2/3 votes applies
59. First Statement: Stockholdings of at least 20% of the outstanding capital stock shall be considered substantial for
purposes of interlocking directors.
Second Statement: Even if not provided for in the by-laws, an executive committee may be created by
affirmative vote of majority of the board of directors with ratification of stockholders owning or representing at
least 2/3 of the outstanding capital stock.
a. Both statements are true. c. Only the first statement is true.
b. None of the statements is true. d. Only the second statement is true.

60. Who may form a one person corporation?

a. Natural person
b. Trust
c. Estate
d. Any of the above