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Question 1

X received Php1,000 from Y which needs to be repaid in 90 days. In this situation:
Statement I: X is the active subject while Y is the active subject;
Statement II: The prestation involves doing something; and,
Statement III: The efficient cause or juridical tie is the law.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 1

B. All are false.

Active Subject- (Y) Passive (X): repaid in 90 days ; Contract

Question 2

D was driving a bus owned by X. D tried to outrun a jeepney which had cut through the lane, but
crashed into a car privately owned and driven by C. As result, the passengers in both the bus and
car were all either killed or injured. Both vehicles were insured by ABC Insurance Corp. In this situation:
Statement I: The injured passengers may separately claim damages from their respective drivers based on contract;
Statement II: C may be able to claim damages from both D and X liable based on an act or omission punished by law; and, Statement III: The heirs of the deceased
passengers of the car may file suit against the X based on quasi-delict.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 2

C. Only two are true.

Question 3

Delay or default is non-fulfillment of an obligation with respect to time. More paticluarly: Statement
I: Mora solved is delay on the part of the debtor; Statement II: Mora Accipiendi is delay on the part of the creditor; and, Statement III: compensation morae is default of both parties in any
obligation.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false

Answer 3

C. Only two are true.

Question 4

Article 1170 of the Civil Code provides for the sources of liability for damages, such as:
Statement
I: Dolo causante; Statement II: Mora Solvendi; and, Statement III: Culpa contractual.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 4

C. Only two are true.

Question 5

The Civil Code provides as a rule that no person shall be liable for fortuitous events and the corresponding loss of the thing shall extinguish the obligation to give, except:
Statement I: when the debtor has incurred delay;
Statement II: when the obligation involves the assumption of risk; and,
Statement III: when the debt is a result of a criminal offense.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 5

A. All are true.

Question 6

The Civil Code provides a condition is a future and uncertain event which may result in the demandability or extinguishment of an obligation. The following are valid conditional obligations:
Statement I: X will give Php1M if A does not swim to the earth’s core; Statement II: X will give Php1M if A’s ticket are does not win in the lottery; and, Statement III: X will give Php1M if A’s
marriage proposal is declined by B.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 6

A. All are true.

Question 7

The Civil Code provides a “day certain” is that which must necessarily come, although it may not be known when. The following are valid obligations with a period: Statement I: X will give Php1M
when A celebrates her 100th birthday; Statement II: X will give Php1M when A dies ahead of B;
and, Statement III: X will give Php1M when X recovers from his severe financial difficulties.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false

Answer 7

D. Only two are false

Question 8

A, B and C are solidarily liable to X for Php18,000 in 1:2:3 proportion, subject to the following
stipulations: A’s share is payable on demand, B’s share is payable on the last day of the next
year’s October LECPA, and C’s share is due is X’s son gets accredited as an accounting teacher. In relation thereto: Statement I: X may demand Php3000 anytime from A, but may only demand the same amount from either B or C when the respective stipulations are fulfilled; Statement II: Upon arrival of the last day of next year’s LECPA, X may demand Php6,000 from either A or B, but may only demand from the same amount from C only upon fulfillment of the related stipulation; and,
Statement III: Upon X’s son is accredited as an accounting teacher, X may demand Php9,000 from any of the solidary debtors.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 8

B. All are false.

Question 9

X has on obligation to give Php5M, which is secured by a specific horse also worth 5M, to A on
July 31 of the current year. On the other hand, A is indebted to X for Php5M due on or before
August 31 of the current year. Consider the following: Statement I: If the horse suddenly dies on
July 30, A can decide that the parties will no longer receive anything from each other due to
extinguishment of their obligations; Statement II: On July 31, A can choose not to pay and claim
that the obligation as already extinguished; and, Statement III: If on July 31, X offers the horse as
payment instead of the cash and A accepts, the latter can them claim compensation so the parties will no longer have to perform their obligations.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 9

C. Only two are true.

Question 10

D owes P2200 to C which is payable in eleven monthly installments beginning the end of the current
month. In this case: Statement I. D can use coins in denominations of 0.01 to 0.25 to pay only if C agrees to accept payment in such a manner; Statement II. D can use coins in denominations of 1.00 to 20.00 only if C does not object to such payment; or, Statement III. D can use BSP Bank Notes to pay with or without C’s consent thereto.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 10

D. Only two are false.

Question 11

Consent is manifested by the meeting of the offer, which is certain, and the acceptance, which must
be absolute, upon the thing and the cause which are to constitute the contract. In relation thereto, consider the following:
Statement I. If at the time of making the offer or acceptance one of the parties was insane, the resulting contract is void; Statement II. If before the acceptance is conveyed
to the offeror, either of the parties becomes insane, the resulting contract is voidable; and,
Statement III. If after the acceptance is conveyed to the offeror, either of the parties becomes
insane, the resulting contract is unenforceable.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false

Answer 11

B. All are false.

Question 12

Three of the following contracts are void: Statement I: A contract of pledge where the thing
pledged remained with the pledgor; Statement II: Sale of large cattle which does not follow the
prescribed form; and, Statement III: An undertaking to donate one’s kidneys to science in the event of death.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 12

C. Only two are true.

Question 13

S, a minor, orally sold his only iPad Pro for Php50,000 to B, a demented person, during the latter’s
lucid interval. The down payment of Php12,500 was paid at the point of perfection. In this situation:
Statement I: The contract is valid; Statement II: Only one of the parties may file a case to nullify the contract; and/or, Statement III: Either party may sue the other to compel performance of their
respective obligations in case of breach.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 13

A. All are true.

Question 14

Three of the following may objects of contracts: Statement I: All things which are not within the commerce of man; Statement II: All rights which are not transmissible; and, Statement III: All
services which are contrary to law, morals, good customs, public order or public policy.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 14

B. All are false.

Question 15

Consider the following: Statement I: Republic Act 386 recognizes both nominate and innominate contracts; Statement II: Do ut des (I give that you may give) is a nominate contract; and, Statement
III: Facio u facias (I do that you may do) is an innominate contract.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 15

A. All are true.

Question 16

Three of the following contracts are defective: Statement I: A court-approved sale by the guardian of a minor of property worth Php100,000 for a selling price of Php60,000; Statement II: Sale by
a mature-looking minor who pretended to be 25 years old of property worth Php100,000 for a selling price of Php600,000; and, Statement III: Sale of a minor for a selling price of Php6M in
consideration for a better life for the said minor.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false

Answer 16

D. Only two are false

Question 17

The following contracts are valid: Statement I: Sale of an son’s prospective share in the net worth his dying father; Statement II: Sale of a car that is still to be manufactured the seller; and,
Statement III: Sale of a kidney the proceeds of which are earmarked for a new iPhone.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 17

D. Only two are false.

Question 18

The following contracts are valid: Statement I: Sale of car on behalf of another without the latter’s consent; Statement II: Sale of a car that is still to be bought by the seller from a third person; and, Statement III: A contract of sale of a car where the true intention of the parties is to transfer it gratuitously.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 18

A. All are true.

Question 19

In the rules on interpretation of contracts: Statement I. If the words of the contract are clear and leave no doubt on the intention of the parties, interpretation of contracts may be proper; Statement
II. In case of gratuitous contracts, doubts shall be resolved in favor of greatest reciprocity of interest; and, Statement III. In onerous contracts, the least transmission of rights and interests shall prevail.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 19

B. All are false.

Question 20

Consider the following: Statement I. Mutual error as to the legal effect of an agreement when the
purpose of the parties is frustrated may result in the reformation of the instrument; Statement II.
Mutual mistake of the parties and the instrument does not express the true agreement will make
the contract voidable; and, Statement III. Mutual confusion as to the terms of the offer and acceptance will have no effect on the contract.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false

Answer 20

B. All are false.

Question 21

X bought a residential house from ABC Realty Corp. for a total contract price of Php6M and made
a down payment of Php600,000 and the remainder is to be paid in equal monthly installments of Php50,000. Consider the following: Statement I. If X had paid a total of Php1,200,000, he would be entitled to a grace period of not less than 60days; Statement II. If X had paid a total of
Php3,600,000, he would be entitled to a Php1,800,000; Statement III. If X had paid a total of
Php5,400,000, he would be entitled to Php3,510,000.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false

Answer 21

A. All are true.

Question 22

The Realty Installment Buyer Act or Maceda Law if Official designated as Republic Act No.:

A. 6550
B. 6551
C. 6552
D. 6553

Answer 22

C. 6552

Question 23

The price in a contract of sale is certain if: Statement I. the price fixed at the closing price of
Meralco Shares on the last trading day of this week; Statement II. the price is pegged to the value of the one ounce of gold; Statement III. if the price if fixed by the seller.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false

Answer 23

C. Only two are true.

Question 24

Hamzi, an American citizen based in the USA, went to the Philippines for a vacation. While in
Boracay, she met went on a drinking spree and eventually met Jay, a bartender. While under a
state of drunkenness, Hamzi orally agreed to buy and paid via check the land of Jay in Boracay for P5,000,000, when its fair market value was P500,000 only. Upon receipt of the check, Jay immediately handed over the Transfer Certificate of Title to Hamzi. What is the status of the contract?

A. Rescissible
B. Voidable
C. Unenforceable
D. Void

Answer 24

D. Void

Question 25

The law on sales provides for an implied warranty against eviction imposed on the seller. The
parties may however provide for an exemption for the seller via stipulation, which produces the
following effects: Statement I. If the seller acted in bad faith, the stipulation is rendered voidable
due to fraud; Statement II. If the seller if in good faith and the vendee assumed the consequences,
the stipulation remains enforceable; and, Statement III. If the seller if in good faith but the vendee
was unaware of the consequences, the stipulation becomes unenforceable because all the terms
need to be in writing.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 25

D. Only two are false.

Question 26

The law on sales provides: Statement I. If a team of six horses are bought and one of them has a
redhibitory defect, accion redhibitoria can be availed of for only two of the horses that constitute
a pair; Statement II. If the guide dog was bought as a companion for a visually impaired person turn out to be blind, the sale is voidable due to fraud; Statement III. If a goat was bought and it died within 3 days due to a disease, the seller shall be liable for a proportionate reduction in price
for the number of days it was alive in relation to the average lifespan of a goat.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false

Answer 26

B. All are false.

Question 27

The following are the characteristics of a contract of sale: Statement I. a contract of sale can exist by itself and is not dependent on any other contract; Statement II. requires the delivery of the object of the contract of sale for its perfection; Statement III. rights are acquired in exchange for
a valuable consideration.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 27

C. Only two are true.

Question 28

On June 1, 20x0, S sold to B 50 units of machines which were scheduled to arrive from Japan. The
sale was evidenced by an invoice identifying each machine by serial number. Each machine was
priced at P100,000.00. Unknown to the parties, 30 units were damaged beyond repair by
seawater on May 31, 20x0. In relation thereto, consider the following: Statement I. B and S retain
their respective rights to compel delivery of 50 machines and to compel payment of the corresponding price; Statement II. B may rescind the whole contract; and, Statement III. S may be compelled to delivery of the remaining 20 units subject to payment of the price therefor.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 28

C. Only two are true.

Question 29

S and B entered into an agreement and executed a document entitled “Contract of Sale” whereby
S transferred to B a specific car for specific price, while B gave to S a specific amount of cash and
a diamond ring valued at a specific amount. In relation thereto, consider the following: Statement
I. The contract here is a Sale regardless of the values of the items therein; Statement II. The contract here is a Barter or an Exchange if the value of the thing exceeds the money given as part of the
consideration; and, Statement III. The contract here is a Sale if the value of the money given is
greater than the thing given as part of the consideration.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 29

D. Only two are false.

Question 30

In foreclosures of Real Estate Mortgages: Statement I. There is generally no right of redemption in
judicial foreclosure; Statement II. In case of judicial foreclosures where the bank is the creditor and
extrajudicial foreclosures, there is a 1-year redemption period for natural persons; Statement III. In case of extrajudicial foreclosures where the mortgagor is a juridical person, the redemption
period is at least 90 days.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 30

C. Only two are true.

Question 31

Pledges are extinguished: Statement I. Upon appropriation by the creditor of the thing pledged if there is a failure to sell in the first and second notarial sale; Statement II. Renunciation or
abandonment, whether express or implied, of the pledge by the pledgee; Statement III. Return of
the thing pledged to the pledgor.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 31

C. Only two are true.

Question 32

In a Notarial sale of pledges: Statement I. This sale will extinguish the pledge (accessory contract)
but not the principal obligation in case the proceeds are deficient; Statement II. In case the
proceeds of the sale are deficient, the creditor cannot recover the deficiency even if there is a stipulation; Statement III. In case the proceeds exceed the principal obligation, the excess goes to
the creditor even if there is a stipulation.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false

Answer 32

D. Only two are false

Question 33

If in a pledge or mortgage where there are several things are pledged or mortgaged: Statement
I. the debtor who has paid a part of the debt can ask for the proportionate extinguishment of the pledge or mortgage; Statement II. the debtor’s heir who has paid a part of the debt can ask for the proportionate extinguishment of the pledge or mortgage; and, Statement III. the creditor’s heir
who received his share of the debt can return the pledge or cancel the mortgage.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 33

B. All are false.

Question 34

Pledges and mortgages have common characteristics, such as: Statement I. The contract of pledge
or mortgage may secure all kinds of obligations, be they natural, pure or subject to a suspensive
or resolutory condition, valid obligations embodied in voidable or unenforceable contracts, even
those which are void; Statement II. It is the essence of pledges and mortgages that when the principal obligation becomes due, the things in which the pledge or mortgage consists may be alienated for the payment to the creditor;
Statement III. The creditor cannot appropriate the things given by way of pledge or mortgage, or dispose of them. The parties, however, can stipulate to the contrary.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false

Answer 34

D. Only two are false

Question 35

Chattel mortgages: Statement I. require the existence of a principal contract because the chattel
mortgage cannot exist on its own; Statement II. require registration and an affidavit of good faith
to be binding upon third persons; and, Statement III. can only cover obligations existing at the time of execution and cannot extend to after-incurred obligations.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false

Answer 35

A. All are true.

Question 36

In pledges created by operation of law: Statement I. a thing under a pledge by operation of law
may be sold only after demand of the amount for which the thing is retained and the public auction shall take place within one month after such demand; Statement II. if, without just grounds, the creditor does not cause the public sale to be held within such period, the debtor may require the return of the thing; and, Statement III. after payment of the debt and expenses, the remainder of
the price of the sale shall be delivered to the obligor; however, in case of a deficiency, the rules
on conventional pledges shall apply.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false

Answer 36

C. Only two are true.

Question 37

In relation to the contract of real estate mortgage: Statement I. In addition to the requisites stated
in article 2085, it is indispensable, in order that a mortgage may be validly constituted, that the document in which it appears be recorded in the Registry of Property, otherwise, it is void;
Statement II. The persons in whose favor the law establishes a mortgage have no right to demand
the execution and the recording of the document in which the mortgage is formalized; and,
Statement III. A contract of mortgage is essentially a formal contract.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 37

B. All are false.

Question 38

. D borrowed 1M from C. The is secured by the property of X worth 1.5M. On due date, D was not able to pay the proper amount. Consider the following: Statement I. If this were a chattel mortgage, the excess of the proceeds from the foreclosure sale will go to D; Statement II. if this were a pledge, the excess of the proceeds from the notarial sale would not go to C; and, Statement III. if this were a real estate mortgage, C cannot demand payment from X.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false

Answer 38

B. All are false.

Question 39

Republic Act No. 3591 is the law that created the Philippine Deposit Insurance Corporation or
PDIC. It has been amended several time over the years, and the most recent amendatory law is
Republic Act No:

A. 10864.
B. 11840.
C. 10149.
D. 11211

Answer 39

B. 11840.

Question 40

RA 3591 as amended provides: Statement I. PDIC is a Government Owned and Controlled
Corporation attached to the Bangko Sentral ng Pilipinas for policy and program coordination;
Statement II. The Vice President and other officials of PDIC shall be appointed and may be removed by its (PDIC’s) President; and, Statement III. PDIC enjoys fiscal and administrative
autonomy.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false

Answer 40

D. Only two are false

Question 41

RA 3591 as amended provides PDIC shall exercise its authority to examine banks and deposit
records, jointly with the BSP, in the following cases: Statement I. There is finding of unsafe and
unsound banking related to deposit-taking; Statement II. There is a failure of prompt corrective
action as declared by the Monetary Board due to capital deficiency; and, Statement III. Whenever
the PDIC deems it appropriate and necessary to join BSP in the conduct of the examination of a
bank..

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 41

C. Only two are true.

Question 42

RA 3591 as amended provides: Statement I. PDIC is now mandated to provide insurance cover to
Islamic bank products or arrangements classified as deposits by the BSP; Statement II. PDIC may adjust the maximum deposit insurance coverage (beyond Php500,000.00) based on inflation and other relevant economic indicators without the need for legislation; and, Statement III. PDIC shall exclude from deposit insurance coverage deposit account/s or transaction/s subject of the Directive
to Cease and Desist (DCD) issued by the BSP which exclusion shall be effective upon the publication
of the DCD.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 42

A. All are true.

Question 43

The New Central Bank Act as amended (RA 7653) provides for the “close now, hear later” policy.
This is allowed whenever, upon report of the head of the supervising or examining department,
the Monetary Board finds that a bank: Statement I. has notified the Bangko Sentral or publicly
announced a unilateral closure; Statement II. has been dormant for at least thirty (30) days or in any manner has suspended the payment of its deposit/deposit substitute liabilities; Statement III.
or is unable to pay its liabilities as they become due in the ordinary course of business.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 43

C. Only two are true.

Question 44

AMLA and its implementing regulations provide for certain principles in the country’s fight against
money laundering. In relation thereto, consider the following: Statement I: Covered persons may be held liable for violation of the Data Privacy Act for reporting covered and suspicious
transactions; Statement II: Covered persons are required to keep records even for longer than 5
years as long as the case is active relative to said transactions; and, Statement III: Lawyers are
generally required to file suspicious transaction reports.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false

Answer 44

C. Only two are true.

Question 45

. In determining the identity of the beneficial owners, CPs should establish the customer’s ownership
structure and understand the ownership at each layer. Usually, the beneficial owner is not one
individual; there may be several beneficial owners in a structure. When there are complex
ownership layers and no reasonable explanation for them, CPs should consider the possibility that
the structure is being used to hide the beneficial owner. In relation thereto: Statement I. Any natural person who directly or indirectly owns more than twenty percent (20%) of the legal person who is a customer of the CP (“Ownership Prong”) shall be considered the beneficial owner; and, Statement
II. Any individual who has “significant” responsibility to control, manage, or direct the legal person (“Effective Control Prong”) will be also be considered the beneficial owner.

A. Both are true.
B. None are true.
C. Only I is true.
D. Only II is true.

Answer 45

D. Only II is true.

Question 46

The following circumstances warrants the filing of a suspicious transaction report: Statement I: The
client is a politically exposed person; Statement II: The client is a casino junket operator; or,
Statement III: The client is not properly identified.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false

Answer 46

D. Only two are false

Question 47

The Financial Action Task Force (FATF) is an inter-governmental body established in 1989 by the
Ministers of its Member jurisdictions. Statement I. The Financial Action Task Force (FATF) is the
global money laundering and terrorist financing guide dog; Statement II. The mandate of the FATF
is to set standards and to promote effective implementation of legal, regulatory and operational
measures for combating money laundering, terrorist financing and the financing of proliferation,
and other related threats to the integrity of the international financial system; and, Statement III.
In collaboration with other international stakeholders, the FATF also works to identify national-level
vulnerabilities with the aim of protecting the international financial system from misuse.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false

Answer 47

C. Only two are true.

Question 48

AMLA defines several terms, and one of which is “Unlawful activity,” which includes any act or
omission or series or combination thereof involving or having direct relation to a violation of Section
254 of Chapter II, Title X of the National Internal Revenue Code of 1997, as amended: Statement
I. where the deficiency basic tax due in the preliminary assessment is in excess of Twenty-five
million pesos (P25,000,000.00) per taxable year, for all tax types covered and there has been a
finding of probable cause by the competent authority; Statement II. Provided, further, That there
need not be a finding of fraud, willful misrepresenting or malicious intent on the part of the
taxpayer; and, Statement III. Provided, finally, AMLC shall institute forfeiture proceedings to
recover monetary instruments, property or proceeds representing, involving, or relating to a tax crime, even if the same has already been recovered or collected by the Bureau of Internal Revenue (BIR) in a separate proceeding.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 48

B. All are false.

Question 49

Under the AMLA, the Anti-Money Laundering Council or AMLC, which shall act unanimously in the discharge of its functions, is tasked to implement targeted financial sanctions: Statement I. in relation to proliferation of weapons of mass destruction and its financing; Statement II. including
ex parte freeze, within 24 hours, against all funds and other assets that are owned and controlled,
directly or indirectly, including funds and assets derived or generated therefrom; Statement III. by
individuals or entities designated and listed under United Nations Security Council Resolution
Numbers 1718 of 2006 and 2231 of 2015 and their successor resolutions as well as any binding
resolution of the Security Council.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false

Answer 49

C. Only two are true.

Question 50

AMLA defines several terms, and one of which is “Covered Transaction,” which is: Statement I. a
transaction in cash or other equivalent monetary instrument involving a total amount in excess of
Five hundred thousand pesos (P500,000.00) within one (1) banking day; Statement II. for covered persons under Section 3(a)(8), a single casino cash transaction involving an amount in excess of Five million pesos (P5,000,000.00) or its equivalent in any other currency; and, Statement III. for
covered persons under Section 3(a)(9) herein, a single cash transaction involving an amount in
excess of Seven million five hundred thousand pesos (P7,500,000.00) or its equivalent in any other currency.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 50

A. All are true.

Question 51

What term refers to the statement “no administrative, criminal, or civil proceedings, shall lie against any person for having made a covered transaction report of a suspicious transaction report in the regular performance of his duties and in good faith, whether or not such reporting results in any
criminal prosecution under this Act or any other Philippine law”?

A. Safe harbor provision
B. Prosecutorial Immunity
C. Nulla Poena Sine Lege
D. These all mean the same thing

Answer 51

A. Safe harbor provision

Question 52

The law entitled “An Act Defining The Crime Of Money Laundering, Providing Penalties Therefor
And For Other Purposes” or The Anti-Money Laundering Act of 2001 is designated as Republic Act
No. 9160. Over the years, it have done through several amendments, the latest one being Republic Act No.:

A. 11520.
B. 11521.
C. 11522.
D. 11523

Answer 52

B. 11521.

Question 53

The Guidelines provide that should the beneficial owner be determined to be a “Politically Exposed
Person” (“PEP”), Covered Persons: Statement I. need not obtain senior management approval
before establishing (or continuing, for relationships; existing customers) such business; Statement II.
Conduct enhanced ongoing monitoring on that relationship; and, Statement III. Reassess the risk
profile of the customer and beneficial owner based on the CPs existing policy.

A. All are true.
B. Only two are true.
C. Only one is true.
D. None are true.

Answer 53

B. Only two are true.

Question 54

Under BP 22, consider the following: Statement I: It shall not be the duty of the drawee of any check, when refusing to pay the same to the holder thereof upon presentment, to cause to be
written, printed, or stamped in plain language thereon, or attached thereto, the reason for
drawee’s dishonor or refusal to pay the same; Statement II: When there are no sufficient funds in
or credit with such drawee bank, such fact shall always be explicitly stated in the notice of dishonor
or refusal; and, Statement III. Where the check is drawn by a corporation, company or entity, the person or persons who actually signed the check on behalf of such drawer shall not be liable.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 54

D. Only two are false.

Question 55

Under B.P. 22, the prosecution must prove: Statement I. the accused issued a check that was
subsequently dishonored; Statement II. the accused was actually notified, via written or oral notice,
that the check was dishonored; and, Statement III. the accused failed, within three banking days
from the date of the check, to pay the holder of the check the amount due thereon or to make
arrangements for its payment.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 55

D. Only two are false.

Question 56

Our Supreme Court has sanctioned numerous defenses which have acquitted individuals charged
with a violation of BP 22, such as: Statement I. payment of the value of the dishonored check within
three banking days from receipt of the notice of dishonor; Statement II. payment of the value of the check while the criminal case is pending in court; and, Statement III. failure to properly serve a notice of dishonor, orally or in writing, to the issuer.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 56

B. All are false.

Question 57

Consider the following distinctions: Statement I. a drawer of a dishonored check may be convicted
under Article 315 (2-d) of the Revised Penal Code even if he had issued the same for a preexisting obligation, while under BP 22, such circumstance negates criminal liability; Statement II.
estafa is essentially a crime against property, while violation of BP 22 is principally a crime against public interest as it does injury to the entire banking system; and, Statement III. violations of Article
315 of the Revised Penal Code are mala prohibita, while those of BP22 are mala in se.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false

Answer 57

D. Only two are false

Question 58

As such, this type of estafa (under Art. 315, paragraph 2(d) of the RPC) has the following elements:
Statement I. the offender has postdated or issued a check on account or for value; Statement II.
at the time of postdating or issuance of said check, the offender has no funds in the bank or the
funds deposited are not sufficient to cover the amount of the check; and, Statement III. regardless
of whether or not the payee has been defrauded.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 58

D. Only two are false.

Question 59

According to the General Banking Act (RA 8791) and related issuances: Statement I. the fiduciary
nature of banking that requires high standards of integrity and performance; Statement II. the
diligence of good father of a family required of banks where the fiduciary nature of their
relationship with their depositors is concerned; and, Statement III. operations and activities of
banks shall be subject to supervision of the Bangko Sentral.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 59

C. Only two are true.

Question 60

In relation to the laws on bank secrecy, consider the following: Statement I. According to RA 8791,
no director, officer, employee, or agent of any bank shall, without order of a court of competent
jurisdiction, disclose to any unauthorized person any information relative to the funds or properties
in the custody of the bank belonging to private individuals, corporations, or any other entity,
including bank deposits; Statement II. When the bank deposit is denominated in pesos, the
provisions of RA 6426 shall govern; and, Statement III. If, on the other hand, the deposit is in
foreign currency, RA 1405 should be followed.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 60

B. All are false.

Question 61

Notwithstanding the laws on bank secrecy, the following are the exceptional cases when the
Commissioner of Internal Revenue may inspect bank deposits: Statement I. When there is
application of compromise liability by a taxpayer on the ground of financial incapacity; Statement
II. To determine the gross estate for computation of estate tax’s liability; and, Statement III. To
determine the taxable income of politicians pursuant to a duly issued letter of authority (LOA) from
the Commissioner of Internal Revenue.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 61

C. Only two are true.

Question 62

In relation to bank secrecy of foreign currency deposits, consider the following: Statement I. The AMLC can perform a bank inquiry if the deposit is in foreign currency; Statement II. The heirs can
look into the foreign currency deposit previously opened by the deceased; and, Statement III. The
foreign currency deposit of a tourist who committed rape and escaped can be garnished to satisfy
a judgment for damages in favor of the victim.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 62

A. All are true.

Question 63

In relation to the laws on bank secrecy, the following are considered exceptions common to both Peso and Foreign currency deposits: Statement I. The Financial Rehabilitation and Insolvency Act
(RA 10142); Statement II. The Plunder Law (RA 7080); and, Statement III. Unclaimed Balances Act (Act 3936).

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false

Answer 63

C. Only two are true.

Question 64

The Implementing Rules and Regulations of the Securities Regulation Code define define: Statement I. “Registration statement” as the application for the registration of securities required to be filed with the Commission; and, Statement II. “Prospectus” as the document made by or on behalf of an
issuer, underwriter or dealer to sell or offer securities for sale to the public through a registration
statement filed with the Commission.

A. Both are true.
B. None are true.
C. Only I is true.
D. Only II is true.

Answer 64

A. Both are true.

Question 65

The Implementing Rules and Regulations of the Securities Regulation Code state that no securities shall be sold or offered for sale, or distributed by any person or entity within the Philippines:
Statement I. unless such securities are duly registered with the Commission through Form 12-1, and the registration statement has been declared effective by the Commission; Statement II. except
of a class exempt under Section 9 of the Code or unless sold in any transaction exempt under Section 10 thereof and these Rules; and, Statement III. no information relating to an offering of
securities shall be disseminated unless a registration statement has been filed with the Commission
and the written communication proposed to be released contains the required information under SRC Rule 8.3.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 65

A. All are true.

Question 65

According to the Securities Regulation Code, the requirement of registration under Subsection 8.1
shall not apply to the sale of any security in any of the following transactions: Statement I. Any
evidence of indebtedness issued by a financial institution that has been licensed by the BSP to engage in banking or quasi-banking shall be exempt from registration under Section 8.1 of the
Code; Statement II. Evidence of indebtedness issued to the BSP under its open market and/or
rediscounting operations; and, Statement III. Bills of exchange arising from a bona fide sale of goods and services that are distributed and/or traded by banks or investment houses duly licensed
by the Commission and BSP through an organized market that is operated under the rules
approved by the Commission.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 65

B. All are false.

Question 66

The law entitled “The Securities Regulation Code” is designated as Republic Act No.:

A. 8798.
B. 8799.
C. 8797.
D. 8796

Answer 66

B. 8799.

Question 67

The Implementing Rules and Regulations of the Securities Regulation Code also state that public and reporting companies shall file with the Commission: Statement I. An annual report on SEC Form 17-A for the fiscal year in which the registration statement was rendered effective by the Commission, and for each fiscal year thereafter, within one hundred five (105) calendar days after the end of the fiscal year; Statement II. A quarterly report on SEC Form 17-Q within forty five
(45) calendar days after the end of each quarter of each fiscal year; and, Statement III. A current
report on SEC Form 17-C, as may be necessary, to make a full, fair and accurate disclosure to the
public of every material fact or event that occurs which would reasonably be expected to affect
the investors’ decisions in relation to those securities.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 67

C. Only two are true.

Question 68

The mandatory tender offer requirement shall not apply to the following: Statement I. Purchases
in connection with corporate rehabilitation under court supervision; Statement II. Any purchase of
securities from an increase in authorized capital stock; Statement III. Purchase in connection with
foreclosure proceedings involving a duly constituted pledge or security arrangement where the
acquisition is made by the debtor or creditor.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 68

A. All are true.

Question 69

According to the Securities Regulation Code, proxies must be issued, and proxy solicitation must
be made in accordance with rules and regulations to be issued by the Commission. As such:
Statement I. Proxies must be in writing, signed by the stockholder or his duly authorized
representative and filed before or after the scheduled meeting with the corporate secretary;
Statement II. Unless otherwise provided in the proxy, it shall be valid until it is revoked; Statement
III. No proxy shall be valid and effective for a period longer than five (5) years at one time.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false

Answer 69

D. Only two are false

Question 70

Under the SRC, an issuer also shall devise and maintain a system of internal accounting controls
sufficient to provide reasonable assurances that: Statement I. Transactions and access to assets are
pursuant to management authorization; Statement II. Financial statements are prepared in
conformity with generally accepted accounting principles that are adopted by the Accounting
Standards Council and the rules promulgated by the Commission with regard to the preparation
of financial statements; and, Statement III. These are so that recorded assets are accurate and need not be compared with existing assets.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 70

C. Only two are true.

Question 71

According to the Securities Regulation Code, in relation to “Fraudulent Transactions,” it shall be unlawful for any person, directly or indirectly, in connection with the purchase or sale of any securities to: Statement I. Employ any device, scheme, or artifice to defraud; Statement II. Obtain
money or property by means of any untrue statement of a material fact of any omission to state
a material fact necessary in order to make the statements made, in the light of the circumstances
under which they were made, not misleading; or, Statement III. Engage in any act, transaction,
practice or course of business which operates or would operate as a fraud or deceit upon any
person.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false

Answer 71

A. All are true.

Question 72

The Implementing Rules and Regulations further provide that Issuers of Registered Securities:
Statement I. shall enter into an underwriting agreement with a commercial bank, investment house
or any other financial institution duly licensed under the Investment Houses Law; however, Statement
II. if the underwriter is part of a group composed of such institutions, the group shall agree on a syndicate manager that shall act on behalf of, and be responsible to, the group and whose actions shall be binding on the members of the group; but, Statement III. An underwriting agreement shall
be always be necessary, including for issuers proprietary/non-proprietary securities and timeshares.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 72

D. Only two are false.

Question 73

Republic Act No. 10173 refers to:

A. Intellectual Property Code
B. Data Privacy Act
C. Electronic Commerce Act
D. Ease of Doing Business and Efficient Government Service Delivery Act

Answer 73

B. Data Privacy Act

Question 74

Under RA 8293, in relation to copyright, consider the following: Statement I. A satirical version of a song cannot be fair use of the original song; Statement II. The photo-copying of a book which is
out of stock made by a library is may not be shown; or, Statement III. The public performance of a work by a charitable organization where no admission fee is charged is not allowed.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 74

B. All are false.

Question 75

Under RA 8293, in relation to trademarks, consider the following: Statement I. A trademark need
not be a visible sign as long as it has the quality of distinctiveness; Statement II. A trademark
requires no actual use prior to registration or even thereafter; or, Statement III. A trademark
registration once granted by the IPO is already conclusive regardless of the circumstances.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 75

B. All are false.

Question 76

RA 8293 provides for the following: Statement I. An invention qualifies for registration as a utility model if it is new, industrially applicable, and involves an inventive step; Statement II. a “mark” cannot be registered if it consists of the name, signature, or portrait of Benigno S. Aquino, Jr.; or,Statement III. a copyright can be obtained for the original iPhone model.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false

Answer 76

B. All are false.

Question 77

Under RA 8293, in relation to patents, consider the following: Statement I. A device which can
quickly detect fake coins being used in self-operated gambling machines used in non-PAGCOR
accredited venues is patentable; Statement II. If Albert Einstein were alive today and applied for
a patent over his theory of general relativity (E = mc2), the application will be granted by the IPO; or, Statement III. X, the wife of Y, together with Atty. M formed a corporation for the purpose of
filing a patent application for X’s invention. Shortly after filing the application, X died due to undisclosed causes. Thereafter, Y (who, while still married, has long been living separately from X)
opposed the application and filed an application of his own. In this case, IPO should decide against of Y.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 77

B. All are false.

Question 78

RA 8293 and jurisprudence provide for the following definitions: Statement I. An invention patent
is a government-issued grant, bestowing an exclusive right to an inventor over a product or process
that provides any technical solution to a problem in any field of human activity which is new,
inventive, and industrially applicable; Statement II. “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; or, Statement III. “Copyright” is the legal protection
extended to the owner of the rights in an original or derivative work.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false

Answer 78

A. All are true.

Question 79

Republic Act No. 11032 refers to:

A. Intellectual Property Code
B. Data Privacy Act
C. Electronic Commerce Act
D. Ease of Doing Business and Efficient Government Service Delivery Act

Answer 79

D. Ease of Doing Business and Efficient Government Service Delivery Act

Question 80

RA 10173 defines the term “Personal Data Breach,” which may be in the nature of: Statement I.
an availability resulting from the unauthorized disclosure of or access to personal data; Statement
II. an integrity breach resulting from alteration of personal data; and/or, Statement III. a confidentiality breach resulting from loss, accidental or unlawful destruction of personal data.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 80

D. Only two are false.

Question 81

. RA 10173 and its related issuances require the mandatory registration of the Data Processing
Systems of the following: Statement I. A PIC or PIP that employs one hundred fifty (150) or more persons; Statement II. those processing sensitive personal information of one hundred (100) or more individuals; or, Statement III. those processing data that will likely pose a risk to the rights and freedoms of PICs or PIPs.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 81

B. All are false.

Question 82

Under the Data Privacy Act, the data subject has the right to furnished certain information before
the entry (or at the next practical opportunity) of personal information into a processing system of a PIC. However, this is not applicable if the: Statement I. personal information be needed pursuant
to a subpoena; Statement II. collection and processing are for obvious purposes; or, Statement III.
information is being collected and processed as a result of legal obligation.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 82

A. All are true.

Question 83

RA 10173 defines the term “Personal Information Controller” as: Statement I. a person or organization who controls the collection, holding, processing or use of personal information;
Statement II. a person or organization who instructs another person or organization to performs
such functions; and/or, Statement III. an individual who performs such functions in connection with
the individual’s personal, family or household affairs.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false

Answer 83

C. Only two are true.

Question 84

Under the RA 10173, the following are considered personal information: Statement I. Data
collected discloses the number of PhilHealth-covered persons; Statement II. Data collected is
composed of fingerprints; and/or, Statement III. Data collected reveals 20% of the employees in
a company are between 25 to 35 years old.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false

Answer 84

D. Only two are false

Question 85

Under RA 10173 “Sensitive Personal Information” may refer to: Statement I. any and all forms of
data which under the Rules of Court and other pertinent laws constitute privileged communication;
Statement II. personal information specifically established by an executive order or an act of Congress to be kept classified; and/or, Statement III. personal information issued by government
agencies peculiar to an individual.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 85

C. Only two are true.

Question 86

In relation to the right to privacy, one of the following statements is not correct:
A. The right to privacy means “to be free from unwarranted publicity,” or “to live without
unwarranted interference by the public in matters in which the public is not necessarily
concerned.”
B. Our Constitution and other laws have created “zones of privacy which are recognized and
protected in our laws. Within these zones, any form of intrusion is impermissible unless excused by law and in accordance with customary legal process.”
C. The three strands of the right to privacy, are: (1) locational or situational privacy; (2) informational privacy; and (3) interdimensional privacy.
D. The Data Privacy Act is concerned with only one strand of the right to privacy

Answer 86

C. The three strands of the right to privacy, are: (1) locational or situational privacy; (2) informational privacy; and (3) interdimensional privacy.

Question 87

Republic Act No. 8293 refers to:

A. Intellectual Property Code
B. Data Privacy Act
C. Electronic Commerce Act
D. Ease of Doing Business and Efficient Government Service Delivery Act

Answer 87

A. Intellectual Property Code

Question 88

RA 8792 provides for the following concepts: Statement I. Statutory Interpretation - Unless otherwise expressly provided for, the interpretation of this Act shall give due regard to its national
origin and the need to promote uniformity in its application and the observance of good faith in domestic trade relations. Statement II. Variation by Agreement - As between parties involved in
generating, sending, receiving, storing or otherwise processing electronic data message or
electronic document, any provision of this Act shall be obligatory and may not be varied by
agreement between and among them. Statement III. Reciprocity - All benefits, privileges,
advantages or statutory rules established under this Act, including those involving practice of
profession, shall be enjoyed only by parties whose country of origin grants the same benefits and
privileges or advantages to Filipino citizens.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 88

D. Only two are false.

Question 89

RA 8792’s IRR provides a service provider shall not be subject to any civil or criminal liability in
respect of the electronic data message or electronic document for which it merely provides access
to as long as the service provider: Statement I. is not aware of the facts or circumstances from
which it is apparent, that the making, publication, dissemination or distribution of such material is
unlawful or infringes any rights subsisting in or in relation to such material; or, Statement II. does
not knowingly receive a financial benefit directly attributable to the unlawful or infringing activity; or Statement III. does not directly commit any infringement or other unlawful act and does not
induce or cause another person or party to commit any infringement or other unlawful act and/or does not benefit financially from the infringing activity or unlawful act of another person or party.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 89

A. All are true.

Question 90

RA 8792 provides for the following violations and penalties: Statement I. Hacking or cracking shall be punished by a minimum fine of one hundred thousand pesos (P100,000.00) and a maximum
commensurate to the damage incurred and a mandatory imprisonment of six (6) months to three
(3) years; Statement II. Piracy shall be punished by a minimum fine of one hundred thousand pesos
(P100,000.00) and a maximum commensurate to the damage incurred and a mandatory
imprisonment of six (6) months to three (3) years; and, Statement III. Other violations of the
provisions of RA 8792 shall be penalized with a maximum penalty of one million pesos
(P1,000,000.00) or six-(6) years imprisonment.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 90

A. All are true.

Question 91

RA 8792’s IRR provides for the following definitions: Statement I. “Electronic data message” 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; Statement II. “Electronic
document” refers to information generated, sent, received or stored by electronic, optical or similar means, but not limited to, electronic data interchange (EDI), electronic mail, telegram, telex or
telecopy; Statement III. “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.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false

Answer 91

D. Only two are false

Question 92

According to RA 8792, the State recognizes: Statement I. the vital role of information and communications technology (ICT) in nation-building; Statement II. the need to create an information friendly environment which supports and ensures the availability, diversity and affordability of ICT products and services; and, Statement III. the primary responsibility of the public sector in
contributing investments and services in telecommunications and information technology.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 92

C. Only two are true.

Question 93

Republic Act No. 8792 refers to:

A. Intellectual Property Code
B. Data Privacy Act
C. Electronic Commerce Act
D. Ease of Doing Business and Efficient Government Service Delivery Act

Answer 93

C. Electronic Commerce Act

Question 94

RA 11032 provides that all offices and agencies providing government services shall be subjected
to a Report Card Survey (“RCS”). Its objectives are to: Statement I. obtain feedback on ow the
provisions in the Citizen’s Charter and provisions of RA No. 11032 are being followed and how
the agency is performing; Statement II. obtain information and/or estimates of hidden costs incurred by applicants or requesting parties to access government service which may include, but
are not limited to, bribes and payment to fixers; and, Statement III. provide for the basis for the
grant of awards, recognition and/or incentives for excellent delivery of services in all government services.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false

Answer 94

A. All are true.

Question 95

RA 11032 provides for the adoption of a zero-contact policy which means contact with any applicant or requesting party is prohibited unless contact is allowed by law or is strictly necessary, such as when: Statement I. during preliminary assessment of the request and evaluation of
sufficiency of submitted requirements; Statement II. it is time for payment of required fees when
the government agency or office does not have an electronic/online payment facility; and,
Statement III. inspection, training or meeting with the applicant is an integral part of the application process for a simple, complex, or highly technical transaction.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 95

C. Only two are true.

Question 96

RA No. 11032 provides that the processing and approval or licenses, clearances, permits,
certifications or authorizations for the installation and operation of telecommunication, broadcast
towers, facilities, equipment and service shall be: Statement I. a nonextendible period of seven (7)
working days for those issued by the barangay, LGUs and NGAs; Statement II. a nonextendible
period of twenty (20) working days when the approval of the appropriate local legislative body
is necessary; and, Statement III. a nonextendible period of thirty (30) working days is granted the
officers of the homeowners association to give its consent or disapproval for homeowners and other community clearances.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 96

D. Only two are false.

Question 97

RA No. 11032 provides for the following members of the Anti-Red Tape Authority: Statement I. the Director General whose tenure is co-terminous with the President of the Philippines; Statement II. the three (3) Deputy Directors General whose tenure is co-terminous with the President of the
Philippines; and, Statement III. the Secretaries of DTI, DICT, DILG and DOF whose tenure is co terminous with the President of the Philippines:

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 97

D. Only two are false.

Question 98

RA No. 11032 applies to all government offices and agencies whether located in the Philippines
or abroad, that provide services covering business and nonbusiness related transactions as defined in this Act, including: Statement I. Business Permits and Licensing Department Quezon City; Statement II. RDO No. 39 of the Bureau of Internal Revenue; and, Statement III. Notarial Division
of the Regional Trial Court of Makati.

A. All are true.
B. All are false.
C. Only two are true.
D. Only two are false.

Answer 98

C. Only two are true

Question 99

That when the consumer transaction was entered into, the consumer was unable to receive a substantial benefit from the subject of the transaction. This is an example of:

a. Unfair sales practices
b. Unconscionable sales practices
c. Deceptive sales practices
d. All of the choices

Answer 99

d. All of the choices

Question 100

A dealer of a consumer product would be liable for the warranty if he fails to provide a sales report to the manufacturer within __ days from the sale.

a. 15 days
b. 30 days
c. 60 days
d. 90 days

Answer 100

b. 30 days

Question 101

Which of the following is NOT considered mislabeling for Food, Cosmetics, Drugs and Devices?

a. if its labeling is false or misleading in any way
b. if its in package form unless it bears a label conforming to the requirements
of the Consumer Protection Act or the regulations promulgated therefor
c. if any word, statement or other information required by or under authority
of the Consumer Protection Act to appear on the principal display panel of the label or labeling is not prominently placed thereon with such
conspicuousness as compared with other words, statements, designs or devices
in the labeling and in such terms as to render it likely to be read and understood by the ordinary individual under customary conditions of purchase and use
d. if its container is so made, formed or filled as to be misleading
e. None of the choices

Answer 101

e. None of the choices

Question 102

Under the Philippine Lemon Law, any defect on the vehicle must undergo 4 separate attempts. What’s the next step?

a. File a case with the DTI
b. File a request for mediation
c. Bring the vehicle for a last repair attempt
d. Provide notice of the intention to invoke the Lemon Law

Answer 102

d. Provide notice of the intention to invoke the Lemon Law

Question 103

If a vehicle would be replaced or the purchase price refunded, a reasonable allowance for use will be provided. If the vehicle was originally purchased for P2,000,000, indicated a distance in the odometer of 12,000 kms over the 6 months of use, how much would be such reasonable allowance for use?

a. P120,000
b. P200,000
c. P240,000
d. P300,000

Answer 103

b. P200,000

reasonable allowance for use: whichever is LOWER

a) 20% x price x months used/12 or
20% x 2M x 6/12 = 200,000 = LOWER

b) (distance travelled/100k kms) x price
12k/100k x 2M = 240,000

Question 104

If a petition for rehabilitation is filed and the court finds that the rehabilitation
is not feasible, the course of action to be taken would be:

a. To give course to the petition
b. To deny the petition
c. To convert the proceedings to liquidation
d. To require to debtor to submit additional proof

Answer 104

c. To convert the proceedings to liquidation

Question 105

Which of the following may be approved by the court even without the required support
of the creditors?

a. Court-supervised rehabilitation
b. Pre-negotiated rehabilitation
c. Out-of-court rehabilitation
d. None of the choices

Answer 105

a. Court-supervised rehabilitation

Question 106

A stay order would be applicable to ____ and would last _____.

a. Court-supervised rehabilitation; 3 months
b. Suspension of payments; 3 months
c. Court-supervised rehabilitation; as long as the proceedings continue
d. Suspension of payments; as long as the proceedings continue

Answer 106

c. Court-supervised rehabilitation; as long as the proceedings continue

Question 107

Involuntary liquidation of an juridical debtor would require debts of:

a. At least P500,000
b. More than P500,000
c. P1,000,000 or 25% of the outstanding capital, whichever is higher
d. P1,000,000 or 25% of the outstanding capital, whichever is lower

Answer 107

c. P1,000,000 or 25% of the outstanding capital, whichever is higher

Question 108

The period of confirmation of a rehabilitation plan in a court-supervised
rehabilitation must not exceed:

a. 6 months
b. 1 year
c. 18 months
d. 2 years

Answer 108

b. 1 year

more than 1 year - convert to liquidation

Question 109

Which of the following apply only to a Suspension of Payments proceeding:

a. Applies to both individual and juridical debtors
b. It may be voluntary or involuntary
c. It may apply only to a debtor who is technically insolvent
d. Secured debtors rights are suspended

Answer 109

c. It may apply only to a debtor who is technically insolvent

Question 110

The following are the options available to a secured creditor in the event of liquidation, except:

a. waive his right under the security or lien, prove his claim in the liquidation
proceedings and share in the distribution of assets of the debtor
b. Maintain his rights under the security or lien. In which case, the value of the property may be fixed by the liquidator
c. The liquidator may sell the property and satisfy the secured creditor’s entire
claim from the proceeds of the sale
d. The secured creditor may enforce the lien and foreclose on the property

Answer 110

b. Maintain his rights under the security or lien. In which case, the value of the property may be fixed by the liquidator

Question 111

Imposing barriers to entry or committing acts that prevent competitors from growing
within the market in an anti-competitive manner is an example of:

a. Anti-Competitive Agreement
b. Abuse of Dominant Position
c. Prohibited Mergers and Acquisitions
d. All of the choices require at least two parties

Answer 111

b. Abuse of Dominant Position

Question 112

Which of the following is prohibited per se under the Philippine Competition Act?

a. Restricting competition as to price, or components thereof, or other terms of trade
b. Having a dominant position in a relevant market
c. Acquiring an entity and obtaining control over the same who is a competitor
d. All of the choices

Answer 112

a. Restricting competition as to price, or components thereof, or other terms of trade

Question 113

Which of the following is market allocation?

a. Restricting competition as to price, or components thereof, or other terms of trade
b. Fixing price at an auction or in any form of bidding including cover bidding, bid suppression, bid rotation and market allocation and other analogous practices of bid manipulation
c. Setting, limiting, or controlling production, markets, technical development, or investment
d. Dividing or sharing the market, whether by volume of sales or purchases, territory, type of goods or services, buyers or sellers or any other means

Answer 113

d. Dividing or sharing the market, whether by volume of sales or purchases, territory, type of goods or services, buyers or sellers or any other means

Question 114

Parties to the merger or acquisition agreement wherein the value of the transaction
exceeds _____ are prohibited from consummating their agreement until thirty (30) days after providing notification to the Commission in the form and containing the information specified in the regulations issued by the Commission.

a. P1,000,000,000
b. P3,200,000,000
c. P5,000,000,000
d. P10,000,000,000

Answer 114

a. P1,000,000,000

Question 115

The following may be covered by the compulsory notification requirement under the Philippine Competition Act, except:

a. Two companies joining together where one is absorbed by the other
b. Two companies joining together to form a new corporation
c. Acquisition by one company of all or substantially all the assets or shares
of another corporation thereby obtaining control
d. None is an exception

Answer 115

d. None is an exception

Question 116

First Statement: Having a dominant position is generally prohibited unless otherwise proven.

Second Statement: An agreement may not necessarily be deemed a violation of the Philippine Competition Act, if the transaction contributes to improving the
production or distribution of goods and services or to promoting technical or economic progress, while allowing consumers a fair share of the resulting benefits.

Third Statement: The acquisition of the stock or other share capital of one or more corporations solely for investment and not used for voting or exercising control and not to otherwise bring about, or attempt to bring about the prevention, restriction,
or lessening of competition in the relevant market is still prohibited

a. Only 1 statement is correct
b. Only 2 statements are correct
c. All 3 statements are correct
d. None of the 3 statements are correct

Answer 116

a. Only 1 statement is correct

False; True; False (not prohibited)

Question 117

Which of the following stages of competitive bidding in the Government Procurement
Law uses a pass/fail criteria?

a. Preliminary Examination
b. Post-Qualification
c. Eligibility Check
d. Opening of Bids

Answer 117

a. Preliminary Examination

Question 118

In the preliminary examination of bids,

a. The technical component is opened first
b. The financial component is opened first
c. Both the technical and financial components are opened together
d. The Bids and Awards Committee decides which component to open first

Answer 118

a. The technical component is opened first

Question 119

A bid for consulting services that passes the post-qualification stage is referred
to as:

a. The lowest calculated responsive bid
b. The highest calculated responsive bid
c. The lowest rated responsive bid
d. The highest rated responsive bid

Answer 119

d. The highest rated responsive bid

calculated responsive bid - for goods and infrastructure

rated responsive bid - services

Question 120

The approval of the recommendation of the BAC of the winning bidder is ____ if a higher authority approval is needed:

a. 10 calendar days
b. 15 calendar days
c. 20 calendar days
d. 30 calendar days

Answer 120

c. 20 calendar days

Question 121

Those sold by an exclusive dealer or manufacturer, which does not have sub-dealers selling at lower prices and for which no suitable substitute can be obtained at more
advantageous terms to the government:

a. Limited Source Bidding
b. Direct Contracting
c. Negotiated Procurement
d. Repeat Order

Answer 121

b. Direct Contracting

no choice and government

Question 122

Resort to Repeat Order would be allowable if the additional quantity of goods to be secured does not exceed ___ of the original quantity:

a. 10%
b. 25%
c. 50%
d. 100%

Answer 122

b. 25%

Question 123

Payments under the insurance contract is contingent upon the happening of an event which may or may not happen or that which may happen at an indeterminate time. This refers to which characteristic of an insurance contract?

a. Risk-distributing device
b. Contract of adhesion
c. Aleatory
d. Contract of indemnity

Answer 123

c. Aleatory

Question 124

Insurable interest is required to exist both at the time the insurance was taken out and at the time of loss:

a. Life Insurance
b. Property Insurance
c. Both Life and Property Insurance
d. Neither Life nor Property Insurance

Answer 124

b. Property Insurance

Life Insurance - required only at the time it was taken out only

Question 125

Precious stones, jewels, jewelry, precious metals, whether in course of
transportation or otherwise may be covered by which type of insurance?

a. Marine insurance
b. Fire insurance
c. Casualty insurance
d. Variable insurance

Answer 125

a. Marine insurance

Marine insurance - perils of the sea and perils of the ship

Fire Insurance - covered all natural calamities (earthquake/tornado/lightning)

Casualty Insurance - accidents/mishaps

Variable insurance - value varies

Question 126

The maximum pay-out in an industrial life insurance

a. 50x the statutory minimum wage
b. 100x the statutory minimum wage
c. 500x the statutory minimum wage
d. 1000x the statutory minimum wage

Answer 126

c. 500x the statutory minimum wage

Question 127

Which of the following would require materiality before it can be a ground to cancel
the insurance contract?

a. False Representation
b. Concealment
c. Breach of Warranty
d. All of the choices

Answer 127

d. All of the choices

ALL = Uberrimae fidei or “uberrima fides” means “utmost
good faith”

Question 128

A claim under a life insurance is required to be settled ___ days after the presentation of the claim and proof of death.

a. 15 days
b. 30 days
c. 60 days
d. 90 days

Answer 128

c. 60 days

Question 129

Sanji’s regular working hours are 1-10pm with a 1 hour lunch break from 5-6pm. In a particular day, he worked 3 hours overtime. How much would be the total pay he would
receive for that day if he receives a regular pay of P800/day?

a. P1,212.50
b. P1,205.00
c. P1,190.00
d. P1,175.00

Answer 129

a. P1,212.50

8 hours - 800

overtime pay - (3hrs*100) *125%

night shift differential - 375*10%

Question 130

If an employee worked during his rest day that is at the same time a regular holiday, the pay he would be entitled to is equivalent to:

a. 130%
b. 150%
c. 169%
d. 260%

Answer 130

d. 260%

An employee who works on a regular holiday which falls on their rest day shall be paid an additional 30% of the daily rate of 200%.(Basic wage x 200% x 130).

Question 131

Under Proclamation No. 368 dated 11 October 2023, which of the following is a regular holiday?

a. Ninoy Aquino Day
b. Christmas Day
c. All Saints’ Day
d. Feast of the Immaculate Conception of Mary

Answer 131

b. Christmas Day

a, c, d - special holidays

Question 132

Which of the following entitles an employee to 5 days leave with pay?

a. Solo Parent Leave
b. Paternity Leave
c. VAWC Victims’ Leave
d. Service Incentive Leave

Answer 132

d. Service Incentive Leave

Cumulative and convertible to cash is
for Service Incentive Leave only

7 days; 7 days; 10 days; 5 days

Question 133

First Statement: The 13th month pay is equivalent to 1 month salary

Second Statement: The 13th month pay must be paid not later than November 30

Third Statement: The 13th month pay may be given as Christmas bonus in the form of goods

a. Only 1 statement is true
b. Only 2 statements are true
c. All 3 statements are true
d. All 3 statements are false

Answer 133

d. All 3 statements are false

total basic pay/12; not later than December 24; cash only

Question 134

Which of the following compulsory members is not required to pay the entire 14%
contribution for 2024?

a. Employees
b. Self-employed individuals
c. Overseas Filipino Workers
d. All of the choices are required

Answer 134

a. Employees

Question 135

If an employee had CYS of service equivalent to 25 years and an average monthly salary credit of P15,000, how much is his monthly pension in case of permanent total
disability?

a. P9,300
b. P8,800
c. P8,300
d. P7,800

Answer 135

a. P9,300

Question 136

First Statement: In no case shall the daily sickness benefit be paid longer than 90
days in one 1 calendar year.

Second Statement: Any unused portion of the sickness benefit in a year can be carried forward and added to the total number of compensable days allowable in the subsequent year

Third Statement: The daily sickness benefit shall not be paid for more than 240 days
on account of the same confinement

Fourth Statement: The sickness benefit is equivalent to 90% of the average monthly salary credit

a. Only 1 statement is correct
b. Only 2 statements are correct
c. Only 3 statements are correct
d. All 4 statements are correct

Answer 136

a. Only 1 statement is correct

should be 120 days; noncumulative; true; daily

Question 137

The maternity leave with pay that a female member is entitled to in case of
miscarriage if she avails of the additional 30 days allowable by law:

a. 60 days
b. 75 days
c. 90 days
d. 120 days

Answer 137

a. 60 days

Question 138

For the year 2024, if a kasambahay receives P3,000 monthly salary, what would be his/her monthly salary credit for purposes of determining the SSS contribution?

a. P3,000
b. P3,500
c. P4,000
d. P5,000

Answer 138

a. P3,000

Question 139

Luffy obliged himself to deliver the Wado Ichimonji to Zoro. If Luffy fails to perform his obligation, what is/are the remedies of Zoro?

a. Specific Performance
b. Substitute Performance
c. Both A and B
d. Neither A nor B

Answer 139

a. Specific Performance

Question 140

Which of the following is not a conditional obligation?

a. D will pay C P10,000, 15 days after the former’s graduation
b. D will pay C P10,000, as soon as his financial means permit him to do so
c. D will pay C P10,000, after passing the 2024 October CPA Board Exams
d. D will pay C P10,000, 10 days after he marries X

Answer 140

b. D will pay C P10,000, as soon as his financial means permit him to do so

obligation with a period

Question 141

Chopper, while driving recklessly the cab of his employer Usopp, hit a Meralco post and caused injury to Nami, a passenger. Nami can sue Usopp under:
I. Contract
II. Quasi-Contract
III. Delict
IV. Quasi-Delict

a. All of the above
b. All except II
c. III and IV only
d. I and IV only

Answer 141

b. All except II

Question 142

The defense that the employer exercised due diligence in the selection and
supervision of the employee is valid against which liability?
I. Vicarious liability under Quasi-Delict
II. Subsidiary liability under Delict

a. Both I and II
b. I only
c. II only
d. Neither I nor II

Answer 142

b. I only

Question 143

Robin promised to deliver to Franky the Radical Beam, a laser machine subject to the condition that the latter would have to complete the construction of the Thousand Sunny. During the pendency of the condition, however, the Radical Beam was lost without the fault of Robin. In this case,

a. The obligation is extinguished
b. The obligation is extinguished but Robin is liable for damages
c. Franky can choose to have the delivery still and ask for damages
d. Franky suffers the impairment

Answer 143

a. The obligation is extinguished

Question 144

W, X, Y, Z are solidarily indebted to C for P40,000. When C demanded payment from W, the latter refused claiming that X is a minor, Y’s share was already condoned and that Z is undergoing a rehabilitation in court. How much is W required to pay C?

a. P40,000
b. P30,000
c. P20,000
d. P10,000

Answer 144

c. P20,000

Question 145

There is ______ when, through insidious words or machinations of one of the contracting parties, the other is induced to enter into a contract which, without them, he would not have agreed to

a. Violatio
b. Dolo
c. Culpa
d. Mora

Answer 145

b. Dolo

breach; fraud; negligence; delay

Question 146

D is indebted to C for P100,000 secured by a mortgage executed by M on his lot and
a guaranty by G. Which of the following is false if M offers to pay the loan?

a. C can be compelled to accept the payment
b. M will be subrogated to the rights of C
c. M can later on collect from G if D fails to pay M
d. If it turns out that D already paid half of the loan, M can only collect P50,000

Answer 146

d. If it turns out that D already paid half of the loan, M can only collect P50,000

Question 147

Ms. Lessee rented an apartment unit from Mr. Lessor. They agreed that Ms. Lessee would pay for a one-month deposit and one-month advance and would shoulder all utility costs during the length of her possession. Ms. Lessee, without notice, left the apartment unit and never returned, leaving an unpaid electric bill of P4,800.
From whom can the electric company collect?

a. Ms. Lessee
b. Mr. Lessor
c. Both, equally
d. Neither

Answer 147

b. Mr. Lessor

Question 148

Compensation is not proper in all of the following cases, except:

a. Deposit on the part of the depositary
b. Bail as to the bailor
c. Support as to the one obliged to give support
d. Civil liability arising from a penal offense

Answer 148

b. Bail as to the bailor

should be bailee

Question 149

Which of the following is considered legal tender?

a. Manager’s check
b. Certified check
c. Cashier’s check
d. None of the choices

Answer 149

d. None of the choices