2015 bar questions

8/17/2019 2015 Bar Questions

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Political Law - Bar Exams 2015

3

I.

The Philippines and the Republic

o

Kroi Sha established diplomatic

relations and immediately their respective Presidents signed the

following: (1 Executive Agreement allowing the Republic o Kroi Sha to

establish its embassy and consular offices within Metro Manila; and (2)

Executive Agreement allowing the Republic o Kroi Sha to bring to the

Philippines its military complement, warships, and armaments from time

to time for a period not exceeding one month for the purpose

o

training

exercises with the Philippine military forces and exempting from

Philippine criminal jurisdiction acts committed in the line o duty by

foreign military personnel, and from paying custom duties on all the

goods brought by said foreign forces into Philippine territory in

connection with the holding

o

the activities authorized under the said

Executive Agreement.

Senator Maagap questioned the constitutionality

o

the said Executive

Agreements and demanded that the Executive Agreements be submitted

to the Senate for ratification pursuant to the Philippine Constitution. Is

Senator Maagap correct? Explain. (4 )

II. (1) A bill was introduced in the House o Representatives in order to

implement faithfully the provisions o

the United Nations Convention on

the Law o the Sea (UNCLOS) to which the Philippines is a signatory.

Congressman Pat Rio Tek questioned the constitutionality o the bill on

the ground that the provisions o UNCLOS are violative

o

the provisions

o the Constitution defining the Philippine internal waters and territorial

sea. Do you agree or not with the said objection? Explain. (3 )

(2) Describe the following maritime regimes under UNCLOS (4 )

(a) Territorial sea

(b) Contiguous zone

( c) Exclusive economic zone

(d) Continental shelf

III. Professor Masipag who holds a plantilla or regular item in the University

o

the Philippines (UP) is appointed as an Executive Assistant in the

Court

o

Appeals (CA). The professor is considered only on leave

o

absence in UP while he reports for work at the CA which shall pay him

the salary o the Executive Assistant. The appointment to the CA

position was questioned, but Professor Masipag countered that he will

not collect the salary for both positions; hence, he can not be accused o

receiving double compensation. Is the argument o the professor valid?

Explain. (4 )


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Political Law - Bar Exams 2015 4

IV. When is a facial challenge to the constitutionality o a law on the ground

o violation o the Bill o Rights traditionally allowed? Explain your

answer. (3 )

V. BD Telecommunications, Inc. (BDTI), a Filipino-owned corporation,

sold its 1,000 common shares o stock in the Philippine

Telecommunications Company (PTC), a public utility, to Australian

Telecommunications (AT), another stockholder o the PTC which also

owns 1,000 common shares. A Filipino stockholder

o

PTC questions

the sale on the ground that it will increase the common shares o AT, a

foreign company, to more than 40 o the capital (stock)

o

PTC in

violation

o

the 40 limitation

o

foreign ownership

o

a public utility.

AT argues that the sale does not violate the 60-40 ownership requirement

in favor o Filipino citizens decreed in Section II, Article XII o the 1987

Constitution because Filipinos still own 70 o the capital o the PTC.

AT points to the fact that it owns only 2,000 common voting shares and

1,000 non-voting preferred shares while Filipino stockholders own 1,000

common shares and 6,000 preferred shares, therefore, Filipino

stockholders still own a majority o the outstanding capital stock o the

corporation, and both classes o shares have a par value

o

Php 20.00 per

share. Decide. (5 )

VI. (1 Distinguish the President's authority to declare a state o rebellion

from the authority to proclaim a state o national emergency. (2 )

(2) What are the limitations,

i

any, to the pardoning power o the

President? (3 )

VII. Senator Fleur De Lis is charged with plunder before the Sandiganbayan.

After finding the existence o probable cause, the court issues a warrant

for the Senator's arrest. The prosecution files a motion to suspend the

Senator relying on Section 5 o the Plunder Law. According to the

prosecution, the suspension should last until the termination o the case.

Senator Lis vigorously opposes the motion contending that only the

Senate can discipline its members; and that to allow his suspension by the

Court would violate the principle o separation o powers. Is Senator

Lis's contention tenable? Explain. (4 )


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Political aw - Bar Exams 2015

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VIII. A law provides that the Secretaries

of

the Departments of Finance and

Trade and Industry, the Governor

of

the Central Bank, the Director

General of the National Economic Development Authority, and the

Chairperson

of

the Philippine Overseas Construction Board shall sit as

ex-officio members

of

the Board of Directors (BOD)

of

a government

owned and controlled corporation (GOCC). The other four (4) members

shall come from the private sector. The BOD issues a resolution to

implement a new organizational structure, staffing pattern, a position

classification system, and a new set

of qualification standards. After the

implementation of the Resolution, Atty. Dipasupil questioned the legality

of the Resolution alleging that the BOD has no authority to do so. The

BOD claims otherwise arguing that the doctrine

of

qualified political

agency applies to the case. t contends that since its agency is attached to

the Department

of

Finance, whose head, the Secretary

of

Finance, is an

alter ego

of

the President, the BOD's acts were also the acts

of

the

President. Is the invocation of the doctrine by the BOD proper? Explain.

4o/o)

IX. Several senior officers

of

the Armed Forces of the Philippines received

invitations from the Chairperson of the Senate Committees on National

Defense and Security for them to appear as resource persons in scheduled

public hearings regarding a wide range

of

subjects. The invitations state

that these public hearings were triggered by the privilege speeches of the

Senators that there was massive electoral fraud during the last national

elections. The invitees Brigadier General Matapang and Lieutenant

Coronel Makatuwiran, who were among those tasked to maintain peace

and order during the last election, refused to attend because

of

an

Executive Order banning all public officials enumerated in paragraph 3

thereof from appearing before either house

of Congress without prior

approval

of

the President to ensure adherence to the rule

of

executive

privilege. Among those included in the enumeration are senior officials

of

executive departments who, in the judgment

of

the department heads,

are covered by executive privilege. Several individuals and groups

challenge the constitutionality of the subject executive order because it

frustrates the power of the Congress to conduct inquiries in aid

of

legislation under Section 21, Article VI

of

the 1987 Constitution. Decide

the case. (5%)

X.

The Secretary

of

the Department of Environment and Natural Resources

(DENR) issued Memorandum Circular No. 123-15 prescribing the

administrative requirements for the conversion of a timber license

agreement (TLA) into an Integrated Forestry Management Agreement

(IFMA). ABC Corporation, a holder

of

a TLA which is about to expire,

claims that the conditions for conversion imposed by the said circular are

unreasonable and arbitrary and a patent nullity because it violates the

non-impairment clause under the Bill

of

Rights

of

the 1987 Constitution.


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ABC Corporation goes to court seeking the nullification of the subject

circular. The DENR moves to dismiss the case on the ground that ABC

Corporation has failed to exhaust administrative remedies which is fatal

to its cause of

action. f you were the judge, will you grant the motion?

Explain. (4%)

XI.

(1)

What is the concept of expanded judicial review under the 1987

Constitution? (3%)

(2) Differentiate the rule-making power or the power of the Supreme

Court to promulgate rules under Section 5, Article VIII of the 1987

Constitution and judicial legislation. (2%)

XII. Discuss the evolution of the principle of

us

s nguinis as basis

of

Filipino

citizenship under the 1935, 1973, and 1987 Constitutions. (3%)

XIII. On August 15, 2015, Congresswoman Dina Tatalo filed and sponsored

House Bill No. 5432, entitled An Act Providing for the Apportionment

of the Lone District of the City ofPangarap. The bill eventually became

a law, R.A. No. 1234.

t

mandated that the lone legislative district

of

the

City of Pangarap would now consist of two (2) districts. For the 2016

elections, the voters of the City of Pangarap would be classified as

belonging to either the first or second district, depending on their place of

residence. The constituents of each district would elect their own

representative to Congress as well as eight (8) members of the

Sangguniang Panglungsod. R.A. No. 1234 apportioned the City's

barangays. The COMELEC thereafter promulgated Resolution No. 2170

implementing R.A. No. 1234.

Piolo Cruz assails the COMELEC Resolution as unconstitutional.

According to him, R.A. No. 1234 cannot be implemented without

conducting a plebiscite because the apportionment under the law falls

within the meaning of

creation, division, merger, abolition or substantial

alteration of boundaries of cities under Section 10, Article X of the 1987

Constitution. Is the claim correct? Explain. (4%)

XIV. Congress enacted R.A. No. 14344 creating the City of Masuwerte which

took effect on September 25, 2014. Section

23

of

the law specifically

exempts the City of Masuwerte from the payment of legal fees in the

cases that it would file and/or prosecute in the courts of law. In two (2)

cases that it filed, the City of Masuwerte was assessed legal fees by the

clerk

of

court pursuant to Rule

4

(Legal Fees) of the Rules of Court.

The City of Masuwerte questions the assessment claiming that it is

exempt from paying legal fees under Section

23 of

its charter. Is the

claim of exemption tenable? Explain. ( 4%)


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XV. The President appointed Dexter

I

Ty as Chairperson of the COMELEC

on June 14, 2011 for a term of seven (7) years pursuant to the 1987

Constitution. His term of office started on June 2, 2011 to end on June 2,

2018. Subsequently, the President appointed Ms. Marikit as the third

member of the COMELEC for a term

of

seven (7) years starting June 2,

2014 until June 2, 2021.

On

June 2, 2015, Chairperson Ty retired

optionally after having served the government for thirty (30) years. The

President then appointed Commissioner Marikit as COMELEC

Chairperson. The Commission on Appointments confirmed her

appointment. The appointment papers expressly indicate that Marikit

will serve as COMELEC Chairperson until the expiration

of

the original

term of her office as COMELEC Commissioner or on June 2, 2021.

Matalino, a tax payer, files a petition for certiorari before the Supreme

Court asserting that the appointment of Marikit as COMELEC

Chairperson is unconstitutional for the following reasons: (1) The

appointment of Marikit as COMELEC Chairperson constituted a re

appointment which is proscribed by Section 1 2), Article IX of the 1987

Constitution; and (2) the term of office expressly stated in the

appointment papers of Marikit likewise contravenes the aforementioned

constitutional provision. Will the constitutional challenge succeed?

Explain. (4%)

XVI. (1) Gandang Bai filed her certificate of candidacy (COC) for municipal

mayor stating that she is eligible to run for the said position. Pasyo

Maagap, who also filed his COC for the same position, filed a petition to

deny due course or cancel

Bai s

COC under Section 78 of the Omnibus

Election Code for material misrepresentation as before Bai filed her

COC, she had already been convicted of a crime involving moral

turpitude. Hence, she is disqualified perpetually from holding any public

office or from being elected to any public office. Before the election, the

COMELEC cancelled Bai ' s COC but her motion for reconsideration

(MR) remained pending even after the election. Bai garnered the highest

number of votes followed by Pasyo Maagap, who took his oath as Acting

Mayor. Thereafter, the COMELEC denied

Bai s MR

and declared her

disqualified for running for Mayor. P. Maagap asked the Department

of

Interior and Local Government Secretary to be allowed to take his oath as

permanent municipal mayor. This request was opposed by Vice Mayor

Umaasa, invoking the rule on succession to the permanent vacancy in the

Mayor's office. Who between Pasyo Maagap and Vice Mayor Umaasa

has the right to occupy the position of Mayor? Explain your answer.

(5%)

(2) How do you differentiate the petition filed under Section 68 from the

petition filed under Section 78, both of the Omnibus Election Code? (3%)


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XVII. The Gay, Bisexual and Transgender Youth Association (GBTYA), an

organization

of gay, bisexual, and transgender persons, filed for

accreditation with the COMELEC to join the forthcoming party-list

elections. The COMELEC denied the application for accreditation on the

ground that GBTYA espouses immorality which offends religious

dogmas. GBTYA challenges the denial

of

its application based on moral

grounds because it violates its right to equal protection of the law.

I)

What are the three (3) levels

of

test that are applied in equal

protection cases? Explain. (3 )

(2) Which

of

the three (3) levels of test should be applied to the present

case? Explain. (3 )

XVIII. Around 12:00 midnight, a team

of

police officers was on routine patrol

in Barangay Makatarungan when it noticed an open delivery van neatly

covered with banana leaves. Believing that the van was loaded with

contraband, the team leader flagged down the vehicle which was driven

by Hades. He inquired from Hades what was loaded on the van. Hades

just gave the police officer a blank stare and started to perspire profusely.

The police officers then told Hades that they will look inside the vehicle.

Hades did not make any reply. The police officers then lifted the banana

leaves and saw several boxes. They opened the boxes and discovered

several kilos

of

shabu inside. Hades was charged with illegal possession

of illegal drugs. After due proceedings, he was convicted by the trial

court. On appeal, the Court

of

Appeals affirmed his conviction.

In his final bid for exoneration, Hades went to the Supreme Court

claiming that his constitutional right against unreasonable searches and

seizures was violated when the police officers searched his vehicle

without a warrant; that the shabu confiscated from him is thus

inadmissible in evidence; and that there being no evidence against him,

he is entitled to an acquittal.

For its part, the People of the Philippines maintains that the case of Hades

involved a consented warrantless search which is legally recognized.

The People adverts to the fact that Hades did not offer any protest when

the police officers asked him if they could look inside the vehicle. Thus,

any evidence obtained in the course thereof is admissible in evidence.

Whose claim is correct? Explain. (

5o/o


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·Political Law - Bar Exams 2015

9

XIX. Pursuant to its mandate to manage the orderly sale, disposition and

privatization

o

the National Power Corporation's (NPC) generation

assets, real estate and other disposable assets, the Power Sector Assets

and Liabilities Management (PSALM) started the bidding process for the

privatization

o

Angat Hydro Electric Power Plant ( AHEPP). After

evaluation o the bids, K-Pop Energy Corporation, a South Korean

Company, was the highest bidder. Consequently, a notice

o award was

issued to K-Pop. The Citizens' Party questioned the sale arguing that it

violates the constitutional provisions on the appropriation and utilization

o

a natural resource which should be limited to Filipino citizens and

corporations which are at least 60 Filipino-owned. The PSALM

countered that only the hydroelectric facility is being sold and not the

Angat Dam; and that the utilization o water by a hydroelectric power

plant does not constitute appropriation

o

water from its natural source

o

water that enters the intake gate

o

the power plant which is an artificial

structure. Whose claim is correct? Explain. ( 4 )

XX. Typhoon Bangis devastated the Province o Sinagtala. Roads and

bridges were destroyed which impeded the entry

o

vehicles into the area.

This caused food shortage resulting in massive looting o grocery stores

and malls. There is power outage also in the area. For these reasons, the

governor o the province declares a state

o

emergency in their province

through Proclamation No. 1 He also invoked Section 465

o

the Local

Government Code

o

1991 (R.A. No. 7160) which vests on the provincial

governor the power to carryout emergency measures during man-made

and natural disasters and calamities, and to call upon the appropriate

national law enforcement agencies to suppress disorder and lawless

violence. In the same proclamation, the governor called upon the

members o the Philippine National Police, with the assistance o the

Armed Forces o the Philippines, to set up checkpoints and chokepoints,

conduct general searches and seizures including arrests, and other actions

necessary to ensure public safety. Was the action

o

the provincial

governor proper? Explain. ( 4 )

XXL The Partido ng Mapagkakatiwalaang Pilipino (PMP) is a major political

party which has participated in every election since the enactment

o

the

1987 Constitution. t has fielded candidates mostly for legislative district

elections. In fact, a number o its members were elected, and are actually

serving, in the House

o

Representatives. In the coming 2016 elections, the

PMP leadership intends to join the party-list system.

Can PMP join the party-list system without violating the Constitution and

Republic Act (R.A.) No. 7941? (4 )


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XXII. The President appoints Emilio Melchor as Chairperson

of

the Civil

Service Commission. Upon confirmation of Melchor's appointment, the

President issues an executive order including him as Ex-Officio member

of the Board of Trustees of the Government Service Insurance System

(GSIS), Employees Compensation Commission (ECC), and the Board

of

Directors of the Philippine Health Insurance Corporation

(PHILHEAL TH). Allegedly, this is based on the Administrative Code of

1997 (E.O. No. 292), particularly Section 14, Chapter 3, Title I-A, Book

V. This provision reads: The chairman of the CSC shall be a member of

the Board of Directors

of

other governing bodies

of

government entities

whose functions affect the career development, employment, status,

rights, privileges, and welfare

of

government officials and employees

A taxpayer questions the designation of Melchor as ex-officio member

of

the said corporations before the Supreme Court based on two (2)

grounds, to wit: (1) it violates the constitutional prohibition on members

of

the Constitutional Commissions to hold any other office or

employment during his tenure; and (2) it impairs the independence of the

CSC. Will the petition prosper? Explain. ( 4%)


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Labor Law - arExam 2015

3

A

Rocket Corporation is a domestic corporation registered with the SEC,

with 30 of its authorized capital stock owned by foreigners and 70 of its

authorized capital stock owned by Filipinos. Is Rocket Corporation allowed to

engage in the recruitment and placement

of

workers, locally and overseas? Briefly

state the basis for your answer. (2 )

B. When does the recruitment

of

workers become an act

of

economic

sabotage? (2 )

II

LKG Garments Inc. makes baby clothes for export. As part of its measures

to meet its orders, LKG requires its employees to work beyond eight (8) hours

everyday, from Monday to Saturday. t pays its employees an additional 35 of

their regular hourly wage for work rendered in excess

of

eight (8) hours per day.

Because of additional orders, LKG now requires two (2) shifts of workers with

both shifts working beyond eight (8) hours but only up to a maximum of four ( 4)

hours. Carding is an employee who used to render up to six ( 6) hours

of

overtime

work before the change in schedule. He complains that the change adversely

affected him because now he can only earn up to a maximum

of

four ( 4) hours'

worth of overtime pay. Does Carding have a cause of action against the company?

(4 )

III

Benito is the owner

of

an eponymous clothing brand that is a top seller. He

employs a number

of

male and female models who wear Benito's clothes in

promotional shoots and videos. His deal with the models is that Benito will pay

them with 3 sets

of

free clothes per week. Is this arrangement allowed? (2 )

IV

Far East Bank (FEB) is one of the leading banks in the country. Its

compensation and bonus packages are top of the industry. For the last 6 years,

FEB had been providing the following bonuses across-the-board to all its

employees:

(a) 3th month pay;

(b) 4th to 8th month pay;

(c) Christmas basket worth P6,000;

(d) Gift check worth P4,000; and


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Labor Law - Bar Exam 2015

4

( e) Productivity-based incentive ranging from a 20o o to 40 increase in

gross monthly salary for all employees who would receive an

evaluation of Excellent for 3 straight quarters in the same year.

Because

of

its poor performance over-all, FEB decided to cut back on the

bonuses this year and limited itself to the following:

(a) 3th month pay;

(b)

4th

month pay;

(c) Christmas basket worth P4,000; and

( d) Gift check worth

:P2,000

Katrina, an employee of FEB, who had gotten a rating

of

Excellent for the

last 3 quarters was looking forward to the bonuses plus the productivity incentive

bonus. After learning that FEB had modified the bonus scheme, she objected. Is

Katrina's objectionjustified? Explain. (3%)

Soledad, a widowed school teacher, takes under her wing one of her

students, Kiko,

3

years old, who was abandoned by his parents and has to do odd

jobs in order to study. She allows Kiko to live

in

her house, provides him with

clean clothes, food, and a daily allowance

of

200 pesos. In exchange, Kiko does

routine housework, consisting of cleaning the house and doing errands for Soledad.

One day, a representative of

the DOLE and the DSWD came to Soledad's house

and charged her with violating the law that prohibits work by minors. Soledad

objects and offers as a defense that she was not requiring Kiko to work as the

chores were not hazardous. Further, she did not give him chores regularly but only

intermittently as the need may arise. Is Soledad's defense meritorious? (4 )

VI

Ador is a student working on his master's degree in horticulture. To make

ends meet, he takes on jobs to come up with flower arrangements for friends. His

neighbor, Nico, is about to get married to Lucia and needs a floral arranger. Ador

offers his services and Nico agrees. They shake hands on it, agreeing that Nico

will pay Ador

:P20,000.00

for his services but that Ador will take care of

everything. As Ador sets about to decorate the venue, Nico changes all

of

Ador's

plans and ends up designing the arrangements himself with Ador simply executing

Nico's instructions.

(a) Is there an employer-employee relationship between Nico and Ador?

(4%)

(b) Will Nico need to register Ador with the Social Security System

(SSS)?

(2%)


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5

VII

Don Don is hired as a contractual employee o CALLHELP, a call center.

His contract

is

expressly for a term o 4 months. Don Don

is

hired for 3 straight

contracts o 4 months each but at 2-week intervals between contracts. After the

third contract ended, Don Don

is

told that

he

will no longer be given another

contract because o poor performance. Don Don files a suit for regularization

and for illegal dismissal, claiming that

he is

a regular employee o CALLHELP

and that he was dismissed without cause. You are the Labor Arbiter. How would

you decide the case? ( 4%)

VIII

Star Crafts is a lantern maker based

in

Pampanga. It supplies Christmas

lanterns to stores in Luzon, Metro Manila, and parts o Visayas, with the months o

August to November being the busiest months. Its factory employs a workforce o

2,000 workers who make different lanterns daily for the whole year. Because

o

increased demand, Star Crafts entered into a contractual arrangement with People

Plus, a service contractor, to supply the former with I workers for only 4

months, August to November, at a rate different from what they pay their regular

employees. The contract with People Plus stipulates that all equipment and raw

materials will be supplied by Star Crafts with the express condition that the

workers cannot take any o the designs home and must complete their tasks within

the premises o Star Crafts.

Is there an employer-employee relationship between Star Crafts and the 100

workers from People Plus? Explain. (4%)

IX

Din Din is a single mother with one child. She is employed as a sales

executive at a prominent supermarket. She and her child live in Quezon City and

her residence and workplace are a 15-minute drive apart. One day, Din Din

is

informed by her boss that she is being promoted to a managerial position but she

is

now being transferred to the Visayas. Din Din does not want to uproot her family

and refuses the offer. Her boss is

so humiliated by Din Din's refusal o the offer

that she gives Din Din successive unsatisfactory evaluations that result

in

Din Din

being removed from the supermarket.

Din Din approaches you, as counsel, for legal advice. What would you

advise her? (4% )


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x

Karina Santos is a famous news anchor appearing nightly in the country's

most watched newscast. She is surprised, after one newscast, to receive a notice of

hearing before the station's Vice-President for Human Resources and calls the VP

immediately to ask what was wrong. Karina is told over the phone that one

of

her

crew filed a complaint against her for verbal abuse and that management is duty

bound to investigate and give her a chance to air her side. Karina objects and

denies that she had ever verbally assaulted her crew. The VP then informed her

that pending the investigation she will be placed on a 30-day preventive suspension

without pay and that she will not be allowed to appear in the newscast during this

time.

Is the preventive suspension of Karina valid? Discuss the reasons for your

answer. (4%)

XI

Rico has a temper and, in his work as Division Manager

of

Matatag

Insurance, frequently loses his temper with his staff. One day, he physically

assaults his staff member by slapping him. The staff member sues him for physical

injuries. Matatag Insurance decides to terminate Rico, after notice and hearing, on

the ground of loss

of

trust and confidence. Rico claims that he is entitled to the

presumption

of innocence because he has not yet been convicted. Comment on

Matatag's action in relation to Rico's argument. (4%)

XII

Blank Garments, Inc. (BLANK), a clothing manufacturer, employs more

than 200 employees in its manufacturing business. Because of its high overhead,

BLANK decided to sell its manufacturing business to Bleach Garments, Inc.

(BLEACH) lock, stock and barrel which included goodwill, equipment, and

personnel. After taking on

BLANK s

business, BLEACH reduces the workforce

by not hiring half the workers specifically the ones with seniority. BLANK and

BLEACH are still discerned to be sister companies with identical incorporators.

The laid-off employees sue both BLANK and BLEACH for unlawful termination.

(a) How would you decide this case? (4%)

(b) What is the successor employer doctrine? (2%)


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7

XIII

Luisa is an unwed mother with 3 children from different fathers. In 2004,

she became a member

o

the Social Security System (SSS). That same year, she

suffered a miscarriage

o

a baby out

o

wedlock from the father

o

her third child.

She wants to claim maternity benefits under the SSS Act. Is she entitled to claim?

(3 )

XIV

Luis, a PNP officer, was o duty and resting at home when he heard a

scuffle outside his house. He saw two o his neighbors fighting and he rushed out

to pacify them. One o the neighbors shot Luis by mistake, which resulted in

Luis's death. Marian, Luis's widow, filed a claim with the GSIS seeking death

benefits. The GSIS denied the claim on the ground that the death o Luis was not

service-related as he was

o

duty when the incident happened. Is the GSIS

correct?

3

)

x

Victor was hired by a local manning agency as a seafarer cook on board a

luxury vessel for an eight-month cruise. While on board, Victor complained

o

chronic coughing, intermittent fever, and joint pains. He was advised by the ship's

doctor to take complete bed rest but was not given any other medication. His

condition persisted but the degree varied from day to day. At the end

o

the cruise,

Victor went home to Iloilo and there had himself examined. The examination

revealed that he had tuberculosis.

(a) Victor sued for medical reimbursement, damages and attorney's fees,

claiming that tuberculosis was a compensable illness. Do you agree with Victor?

Why or why not? (2 )

(b) Due to his prolonged illness, Victor was unable to work for more than

120 days. Will this entitle him to claim total permanent disability benefits? (2 )


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8

XVI

The Alliance of Independent Labor Unions (AILU) is a legitimate labor

federation which represents a majority

of

the appropriate bargaining unit at the

Lumens Brewery (LB). While negotiations were ongoing for a renewal of the

collective bargaining agreement (CBA), LB handed down a decision in a

disciplinary case that was pending which resulted in the termination of the AILU's

treasurer and two other members for cause. AILU protested the decision, claiming

that LB acted in bad faith and asked that LB reconsider. LB refused to reconsider.

AILU then walked out of the negotiation and declared a strike without a notice of

strike or a strik;: vote. AILU members locked in the LB management panel by

barricading the doors and possible exits (including windows and fire escapes). LB

requested the DOLE to assume jurisdiction over the dispute and to certify it for

compulsory arbitration.

The Secretary

of

Labor declined to assume jurisdiction, finding that the

dispute was not one that involved national interest. LB then proceeds to terminate

all of the members of the bargaining agent on the ground that it was unlawful to:

(1) barricade the management panel in the building, and (2) participate in an illegal

strike.

(a) Was AILU justified in declaring a strike without a strike vote and a

notice of strike? Why or why not? (3 )

(b) Was the Secretary

of

Labor correct in declining to assume jurisdiction

over the dispute? 2o/o)

(c) Was LB justified in terminating all those who were members

of

AILU

on the two grounds cited? (3 )

XVII

The Collective Bargaining Agreement (CBA) between Libra Films and its

union, Libra Films Employees' Union (LFEU), contains the following standard

clauses:

1. Maintenance ofmembership;

2. Check off for union dues and agency fees; and

3. No strike, no lock-out.

While Libra Films and LFEU are in re-negotiations for an extension of the

CBA, LFEU discovers that some of its members have resigned from the union,

citing their constitutional right to organize (which includes the right NOT to

organize). LFEU demands that Libra Films institute administrative proceedings to

terminate those union members who resigned in violation of the CBA s

maintenance of membership clause. Libra Films refuses, citing its obligation to

remain a neutral party. As a result, LFEU declares a strike and after filing a notice


15/62


9

of

strike and taking a strike vote, goes on strike. The union claims that Libra Films

grossly violated the terms of the CBA and engaged in unfair labor practice.

(a) Are LFEU s claims correct? Explain. (4%)

(b) Distinguish between a closed shop clause and a maintenance

of

membership clause. (2%)

( c) Distinguish between union dues and agency fees. (2%)

XVIII

George is an American who is working as a consultant for a local IT

company. The company has a union and George wants to support the union. How

far can George go in terms of his support for the union? (3%)

XIX

What is the rule on the equity

of

the incumbent ? (2%)

xx

A XYZ Company and Mr. AB, a terminated employee who also happens

to be the President

ofXYZ

Employees Union, agree in writing to submit Mr. AB s

illegal dismissal case to voluntary arbitration. Is this agreement a valid one? (3%)

B. XYZ Company and XYZ Employees Union (XYZEU) reach a

deadlock in their negotiation for a new collective bargaining agreement (CBA).

XYZEU files a notice

of

strike; XYZ Company proposes to XYZEU that the

deadlock be submitted instead to voluntary arbitration. If you are counsel for

XYZEU, what advice would you give the union as to the: (1) propriety

of

the

request

of

XYZ Company, and (2) the relative advantages/disadvantages between

voluntary arbitration and compulsory arbitration? ( 4%)

XXI

Philippine News Network (PNN) engages the services

of

Anya, a prominent

news anchor from a rival station, National News Network (NNN). NNN objects to

the transfer of Anya claiming that she is barred from working in a competing

company for a period

of

three years from the expiration

of

her contract. Anya

proceeds to sign with PNN which then asks her to anchor their nightly newscast.

NNN sues Anya and PNN before the National Labor Relations Commission

(NLRC), asking for a labor injunction. Anya and PNN object claiming that it is a

matter cognizable by a regular court and not the NLRC.


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10

(a) Is

NNN s

remedy correct? Why or why not?

3o/o)

(b) What are the grounds for a labor injunction to issue? (2 )

( c) Distinguish the jurisdiction

of

a Labor Arbiter from that

of

the NLRC.

(3 )

xx

Mario comes from a family

of

coffee bean growers. Deciding to incorporate

his fledgling coffee venture, he invites his best friend, Carlo, to join him. Carlo is

hesitant because he does not have money to invest but Mario suggests a scheme

where Carlo can be the Chief Marketing Agent

of

the company, earning a salary

and commissions. Carlo agrees and the venture is formed. After one year, the

business is so successful that they were able to declare dividends. Mario is so

happy with Carlo's work that he assigns 100 shares of stock to Carlo as part of the

latter's bonus.

Much later on, it is

d i s o v t ~ r e d

that Carlo had engaged in unethical conduct

which caused embarrassment to the company. Mario is forced to terminate Carlo

but he does so without giving Carlo the opportunity to explain.

Carlo filed a case against Mario and the company for illegal dismissal.

Mario objected on the ground that the Labor Arbiter had no jurisdiction over the

case as it would properly be considered as an intra-corporate controversy

cognizable by the RTC. Further, Mario claimed that because Carlo's dismissal

was a corporate act, he cannot be held personally liable.

(a) As the Labor Arbiter assigned to this case, how would you resolve the

jurisdiction question. (3 )

(b) What is the rule on personal liability of corporate officers for a

corporate act declared to be unlawful? (2 )


17/62

Civil Law - Bar Exam 2015

3

I

Alden and Stela were both former Filipino citizens. They were married

in

the Philippines but they later migrated to the United States where they were

naturalized as American citizens. In their union they were able to accumulate

several real properties both in the US and in the Philippines. Unfortunately, they

were not blessed with children. In the US, they executed a joint will instituting as

their common heirs to divide their combined estate in equal shares, the five

siblings o Alden and the seven siblings o Stela. Alden passed away in 2013 and a

year later, Stela also died. The siblings o Alden who were all citizens o the US

instituted probate proceedings in a US court impleading the siblings

o

Stela who

were all in the Philippines.

a) Was the joint will executed by Alden and Stela who were both former

Filipinos valid? Explain with legal basis. (3 )

b) Can the joint will produce legal effect in the Philippines with respect

to the properties o Alden and Stela found here?

f

so, how? (3 )

c) Is the situation presented in Item I an example

o

depe9age? (2 )

II.

Marco and Gina were married in

1989.

Ten years later, or in

1999,

Gina left

Marco and lived with another man, leaving their two children

o

school age with

Marco. When Marco needed money for their children's education he sold a parcel

o

land registered in his name, without Gina's consent, which he purchased before

his marriage. Is the sale by Marco valid, void or voidable? Explain with legal

basis. (4 )

III.

Julie had a relationship with a married man who had legitimate children. A

son was born out o that illicit relationship in 1981. Although the putative father

did not recognize the child in his certificate o birth, he nevertheless provided the

child with all the support he needed and spent time regularly with the child and his

mother. When the man died in 2000, the child was already

8

years old so he filed

a petition to be recognized as an illegitimate child o the putative father and sought

to be given a share in his putative father's estate. The legitimate family opposed,

saying that under the Family Code his action cannot prosper because he did not

bring the action for recognition during the lifetime

o

his putative father.


18/62

Civil

Law Bar

Exam 2015

a) If you were the judge in this case, how would you rule? (4 )

b) Wishing to keep the peace, the child during the pendency of the case

decides to compromise with his putative father's family by abandoning his petition

in exchange for i of what he would have received as inheritance if he were

recognized as an illegitimate child. As the judge, would you approve such a

compromise? 2o/o)

IV.

Bert and Joe, both male and single, lived together as common law spouses

and agreed to raise a son

of

Bert's living brother as their child without legally

adopting him. Bert worked while Joe took care of their home and the boy. In their

20 years

of

cohabitation they were able to acquire real estate assets registered in

their names as co-owners. Unfortunately, Bert died of cardiac arrest, leaving no

will. Bert was survived

by

his biological siblings, Joe, and the boy.

a) Can Article 147 on co-ownership apply to Bert and Joe, whereby all

properties they acquired will be presumed to have been acquired by their joint

industry and shall be owned by them in equal shares? (2 )

b) What are the successional rights

of

the boy Bert and Joe raised as their

son? (2 )

c) If Bert and Joe had decided in the early years of their cohabitation to

jointly adopt the boy, would they have been legally allowed to do so? Explain

with legal basis. (3 )

v

Mrs. L was married to a ship captain who worked for an international

maritime vessel. For her and her family's support, she would claim monthly

allotments from her husband's company. One day, while en route from Hong

Kong to Manila, the vessel manned by Captain L encountered a severe typhoon at

sea. The captain was able to send radio messages

of

distress to the head office

until all communications were lost. In the weeks that followed, the search

operations yielded debris

of

the lost ship but the bodies

of

the crew and the

passengers were not recovered. The insurance company thereafter paid out the

death benefits to all the heirs

of

the passengers and crew. Mrs. L filed a complaint

demanding that her monthly allotments continue for the next four years until her

husband may be legally presumed dead because of his absence. f you were the

magistrate, how would you rule? (3 )


19/62

Civil Law - Bar Exam 2 15

5

VI.

Kardo met Glenda as a young lieutenant and after a whirlwind courtship,

they were married. In the early part o his military career, Kardo was assigned to

different places all over the country but Glenda refused to accompany him as she

preferred to live in her hometown. They did not live together until the 2th year o

their marriage when Kardo had risen up the ranks and was given his own

command. They moved to living quarters in Fort Gregorio. One day, while Kardo

was away on official business, one o his military aides caught Glenda having sex

with the corporal assigned as Kardo's driver. The aide immediately reported the

matter to Kardo who rushed home to confront his wife. Glenda readily admitted

the affair and Kardo sent her away in anger. Kardo would later come to know the

true extent

o Glenda's unfaithfulness from his aides, his household staff, and

former neighbors who informed him that Glenda has had intimate relations with

various men throughout their marriage whenever Kardo was away on assignment.

Kardo filed a petition for declaration o nullity o marriage under Article 36.

Based on interviews from Kardo, his aide, and the housekeeper, a psychologist

testified that Glenda's habitual infidelity was due to her affliction with Histrionic

Personality Disorder, an illness characterized by excessive emotionalism and

uncontrollable attention-seeking behavior rooted in Glenda's abandonment as a

child by her father. Kardo himself, his aide, and his housekeeper also testified in

court. The RTC granted the petition, relying on the liberality espoused by

Te

v

Te

and

Azcueta

v

Republic

However, the OSG filed an appeal, arguing that sexual

infidelity was only a ground for legal separation and that the RTC failed to abide

by the guidelines laid down in the

Molina

case. How would you decide the

appeal? (5 )

VII.

Mr. and Mrs. X migrated to the

US

with all their children. As they had no

intention

o

coming back, they offered their house and lot for sale to their

neighbors, Mr. and Mrs. A (the buyers) who agreed to buy the property for

128

Million. Because Mr. and Mrs. A needed to obtain a loan from a bank first, and

since the sellers were in a hurry to migrate, the latter told the buyers that they could

already occupy the house, renovate it as it was already in a state o disrepair, and

pay only when their loan is approved and released. While waiting for the loan

approval, the buyers spent

Pl

Million in repairing the house. A month later, a

person carrying an authenticated special power

o

attorney from the sellers

demanded that the buyers either immediately pay for the property in full now

or

vacate it and pay damages for having made improvements on the property without

a sale having been perfected.

a) What are the buyers' options or legal rights with respect to the

expenses they incurred in improving the property under the circumstances? (3 )


20/62


6

b) Can the buyers be made to immediately vacate on the ground that the

sale was not perfected? Explain briefly. (3 )

VIII.

X, Y, Z are siblings who inherited a IO-storey building from their parents.

They agreed in writing to maintain it as a co-owned property for leasing out and to

divide the net profits among themselves equally for a period o 20 years. On the

th year, X wanted to get out

o

the co-ownership so he could get his 1/3 share in

the property. Y and Z refused, saying X is bound by their agreement to keep the

co-ownership for

20

years. Are Y and Z correct? Explain.

(3 )

·IX.

Jose, single, donated a house and lot to his only niece, Maria, who was o

legal age and who accepted the donation. The donation and Maria's acceptance

thereof were evidenced by a Deed o Donation. Maria then lived in the house and

lot donated to her, religiously paying real estate taxes thereon. Twelve years later,

when Jose had already passed away, a woman claiming to be an illegitimate

daughter

o

Jose filed a complaint against Maria. Claiming rights as an heir, the

woman prayed that Maria be ordered to reconvey the house and lot to Jose's estate.

In her complaint she alleged that the notary public who notarized the Deed o

Donation had an expired notarial commission when the Deed o Donation was

executed by Jose. Can Maria be made to reconvey the property? What can she put

up as a defense? (4 )

x

X, a dressmaker, accepted clothing materials from Karla to make two

dresses for her. On the day X was supposed to deliver Karla's dresses, X called up

Karla to say that she had an urgent matter to attend to and will deliver them the

next day. That night, however, a robber broke into her shop and took everything

including Karla's two dresses. X claims she is not liable to deliver Karla's dresses

or to pay for the clothing materials considering she herself was a victim o the

robbery which was a fortuitous event and over which she had no control. Do you

agree? Why?

(3 )

XI

Jackie, 16, inherited a townhouse. Because she wanted to study in an

exclusive school, she sold her townhouse by signing a Deed

o

Sale and turning

over possession

o

the same to the buyer. When the buyer discovered that she was


21/62


still a minor, she promised to execute another Deed o Sale when she turns 18

When Jackie turned

25

and was already working, she wanted to annul the sale and

return the buyer's money to recover her townhouse. Was the sale contract void,

voidable or valid? Can Jackie still recover the property? Explain. ( 4 )

XII.

A. Iya and Betty owed Jun P500,000.00 for advancing their equity in a

corporation they joined as incorporators. Iya and Betty bound themselves

solidarily liable for the debt. Later, Iya and Jun became sweethearts so Jun

condoned the debt

o

P500,000.00. May lya demand from Betty

~ 2 5 0 0 0 0 . 0 0

as

her share in the debt? Explain with legal basis. (2 )

B. Juancho, Don and Pedro borrowed

~ 1 5 0 0 0 0 . 0 0

from their friend Cita

to put up an internet cafe orally promising to pay her the full amount after one

year. Because o their lack o business know-how, their business collapsed.

Juancho and Don ended up penniless but Pedro was able to borrow money and put

up a restaurant which did well. Can Cita demand that Pedro pay the entire

obligation since he, together with the two others, promised to pay the amount in

full after one year? Defend your answer. (2 )

XIII.

A X and Y are partners in a shop offering portrait painting. Y provided

the capital and the marketing while X was the portrait artist. They accepted the

PS0,000.00 payment o Kyla to do her portrait but X passed away without being

able to do it. Can Kyla demand that Y deliver the portrait she had paid for because

she was dealing with the business establishment and not with the artist personally?

Why or why not? (3 )

B. In this jurisdiction, is a joint venture i.e., a group o corporations

contributing resources for a specific project and sharing the profits therefrom)

considered a partnership? (3 )

XIV.

A driver o a bus owned by company Z ran over a boy who died instantly. A

criminal case for reckless imprudence resulting in homicide was filed against the

driver. He was convicted and was ordered to pay P2 Million in actual and moral

damages to the parents o the boy who was an honor student and had a bright

future. Without even trying to find out

i

the driver had assets or means to pay the

award o damages, the parents

o

the boy filed a civil action against the bus

company to make it directly liable for the damages.


22/62

Civil Law Bar Exam 2015

8

a) Will their action prosper? (4 )

b)

If

the parents

of

the boy do not wish to file a separate civil action

against. the bus company, can they still make the bus company liable

if

the driver

cannot' pay the award for damages? If so, what is the nature

of

the employer's

liability and how may civil damages be satisfied? (3 )

xv

A. Sara borrowed PS0,000.00 from Julia and orally promised to pay it

within six months. When Sara tried to pay her debt on the

th

month, Julia

demanded the payment of interest of 12o o per annum because of Sara's delay in

payment. Sara paid her debt and the interest claimed by Julia. After rethinking,

Sara demanded back from Julia the amount she had paid as interest. Julia claims

she has no obligation to return the interest paid by Sara because it was a natural

obligation which Sara voluntarily performed and can no longer recover. Do you

agree? Explain. (4 )

B. Distinguish civil and natural obligations. (2 )

XVI.

Donna pledged a set

of

diamond ring and earrings to Jane for P200,000.00

She was made to sign an agreement that if she cannot pay her debt within six

months, Jane could immediately appropriate the jewelry for herself. After six

months, Donna failed to pay. Jane then displayed the earrings and ring set in her

jewelry shop located in a mall. A buyer, Juana, bought the jewelry set for

P300,000.00.

a) Was the agreement which Donna signed with Jane valid? Explain

with legal basis. (2 )

b) Can Donna redeem the jewelry set from Juana by paying the amount

she owed Jane to Juana? Explain with legal basis. (2 )

c) Give an example of a pledge created by operation of law. (2 )


23/62


9

XVII.

Z, a gambler, wagered and lost P2 Million in baccarat, a card game. He was

pressured into signing a Deed of Absolute Sale in favor of the winner covering a

parcel ·of land with improvements worth P20 Million. One month later, the

supposed vendee

of

the property demanded that he and his family vacate the

property subject of the deed of sale. Was the deed of sale valid? What can Z do?

(4 )

XVIII.

A lawyer was given an authority by means of a Special Power

of

Attorney

by his client to sell a parcel of land for the amount of P3 Million. Since the client

owed the lawyer Pl Million in attorney's fees in a prior case he handled, the client

agreed that

if

the property is sold, the lawyer was entitled to get 5 agent's fee

plus Pl Million as payment for his unpaid attorney's fees. The client, however,

subsequently found a buyer

of

his own who was willing to buy the property for a

higher amount. Can the client unilaterally rescind the authority he gave in favor of

his lawyer? Why or why not? (4 )

XIX.

Mr. A, a businessman, put several real estate properties under the name of

his eldest son X because at that time, X was the only one of legal age among his

four children. He told his son he was to hold those assets for his siblings until they

become adults themselves. X then got married. After 5 years, Mr. A asked X to

transfer the titles over three properties to his three siblings, leaving two properties

for himself. To

A s

surprise, X said that he can no longer be made to transfer the

properties to his siblings because more than 5 years have passed since the titles

were registered in his name. Do you agree? Explain. ( 4 )

xx

A.

Mr. and Mrs. Roman and Mr. and Mrs. Cruz filed an application for

registration of a parcel of land which after due proceedings was granted by the

RTC acting as a land registration court. However, before the decree

of

registration

could be issued, the spouses Roman and the spouses Cruz sold the lot to Juan. In

the notarized deed

of

sale, the sellers expressly undertook to submit the deed

of

sale to the land registration court so that the title to the property would be directly

issued in Juan's name. Is such a stipulation valid? (2 )

B. Distinguish a direct attack from a collateral attack on a title. 2o/o)


24/62


10

C f he title in Item XX.A is issued in the names o the original sellers,

would a motion filed y Juan in the same case to correct or amend the title in order

to reflect his name as owner be considered a collateral attack? (2 )


25/62

Taxation-Bar Exam 2015

3

I

Explain the principles

of

a sound tax system. (3 )

II. Mr. A, a citizen and resident

of

the Philippines, is a professional boxer. In a

professional boxing match held in 2013, he won prize money in United States

(US) dollars equivalent to P300,000,000.

a) Is the prize money paid to and received by Mr. A in the US taxable in the

Philippines? Why? (2 )

b) May Mr. A s prize money qualify as an exclusion from his gross income?

Why? (2 )

c) The US already imposed and withheld income taxes from Mr. A s prize

money. How may Mr. A use or apply the income taxes he paid on his

prize money to the

U

when he computes his income tax liability in the

Philippines for 2013? (4 )

III. Ms. C, a resident citizen, bought ready-to-wear goods from Ms. B, a non

resident citizen.

a) f the goods were produced from Ms.

B s

factory in the Philippines, is

Ms.

B s

income from the sale to Ms. C taxable in the Philippines?

Explain. (2 )

b)

f

Ms. B

is

an alien individual and the goods were produced in her factory

in China, is Ms.

B s

income from the sale

of

the goods to Ms. C taxable

in the Philippines? Explain. (2 )

IV. Mr. E and Ms. F are both employees of AAA Corp. They got married on

February 14, 2011. On December 29, 2011, the couple gave birth to triplets.

On June 25, 2013, they had twins. What were the personal

exemptions/deductions which Mr. E and Ms. F could claim in the following

taxable years:

a)

For2010

(2 )

b) For 2011 (3 )

c) For 2013 (2 )


26/62

Taxation

Bar Exam 2015

V. BBB, Inc., a domestic corporation, enjoyed a particularly profitable year in

2014. In June 2015, its Board of Directors approved the distribution of cash

dividends to its stockholders. BBB, Inc. has individual and corporate

stockholders. What is

t h ~

tax treatment of the cash dividends received from

BBB, Inc. by the following stockholders:

a) A resident citizen

{l?lo)

b) Non-resident alien engaged in trade or business (1 )

c) Non-resident alien not engaged in trade or business ( 1 )

d) Domestic corporation ( 1

>)

e) Non-resident foreign corporation {lo/o

VI. Differentiate between double taxation in the strict sense and in a broad sense

and give an example

of

each. ( 4 )

VII. On May 15, 2013, CCC, Inc. received the Final Decision on Disputed

Assessment issued by the Commissioner

of

Internal Revenue (CIR)

dismissing the protest ofCCC, Inc. and affirming the assessment against said

corporation. On June 10, 2013, CCC, Inc. filed a Petition for Review with the

Court ofTax Appeals (CTA) in division. On July 31, 2015, CCC, Inc. received

a copy of the Decision dated July 22, 2015 of the CTA division dismissing its

Petition. CCC, Inc. immediately filed a Petition for Review with the CT A en

b ne on August 6, 2015. ls the immediate appeal by CCC, Inc. to the CTA en

b ne

of

the adverse Decision

of

the CTA division the proper remedy? (3 )

VIII. In June 2013, DDD Corp., a domestic corporation engaged in the business

of

leasing real properties in the Philippines, entered into a lease agreement of a

residential house and lot with EEE, Inc., a non-resident foreign corporation.

The residential house and lot will be used by officials ofEEE, Inc. during their

visit to the Philippines. The lease agreement was signed by representatives

from DDD Corp. and EEE, Inc. in Singapore. DDD Corp. did not subject the

said lease to VAT believing that it was not a domestic service contract. Was

DDD Corp. correct? Explain (3 )

IX. For calendar year 2011, FFF, Inc., a VAT-registered corporation, reported

unutilized excess input VAT in the amount

of

Pl ,000,000.00 attributable to

its zero-rated sales. Hoping to impress his boss,

Mr. G,

the accountant ofFFF,

Inc., filed with the Bureau

of

Internal Revenue (BIR) on January 31, 2013 a

claim for tax refund/credit

of

the Pl,000,000.00 unutilized excess input VAT


27/62

Taxation-Bar

Exam 2015

of

FFF, Inc. for 2011. Not having received any communication from the BIR,

Mr. G filed a Petition for Review with the CTA on March 15, 2013, praying

for the tax refund/credit

of

the Pl,000,000.00 unutilized excess input

VAT

of

FFF, Inc. for 2011.

a) Did the

CTA

acquire jurisdiction over the Petition

ofFFF,

Inc.? (2 )

b) Discuss the proper procedure and applicable time periods for

administrative and judicial claims for refund/credit

of

unutilized excess

input VAT. (4 )

X. Indicate whether each

of

the following individuals is required or not required

to file an income tax return:

a) Filipino citizen residing outside the Philippines

on

his income from

sources outside the Philippines. ( 1 )

b) Resident alien on income derived from sources within the Philippines.

(1 )

c) Resident citizen earning purely compensation income from two

employers within the Philippines, whose income taxes have been

correctly withheld. ( 1

/o

d) Resident citizen who falls under the classification

of

minimum wage

earners. 1

)

e)

An

individual whose sole income has been subjected to final withholding

tax. (1 )

XI. What are e minim s benefits and how are these taxed? Give three (3)

examples of

e minimis

benefits. ( 4 )

XII. Mr. H decided to sell the house and lot wherein he and his family have lived

for the past 10 years, hoping to buy and move to a new house and lot closer

to his children's school. Concerned about the capital gains

t x

that will be

due on the sale

of

their house, Mr. H approaches you as a friend for advice if

it is possible for the sale

of

their house to be exempted from capital gains tax

and the conditions they must comply with to avail themselves of said

exemption. How will you respond? (4 )


28/62

Taxation-Bar Exam 2 15

6

XIII. GGG, Inc. offered to sell through competitive bidding its shares in HHH

Corp., equivalent to 40

of

the total outstanding capital stock

of

the latter.

JJJ,

Inc. acquired the said shares in HHH Corp. as the highest bidder. Before

it could secure a certificate authorizing registration/tax clearance for the

transfer of the shares of stock to JJJ, Inc., GGG, Inc. had to request a ruling

from the BIR confirming that its sale

of the said shares was at fair market

value and was thus not subject to donor's tax. In BIR Ruling No. 012-14, the

CIR held that the selling price for the shares of stock of

l l H

Corp. was lower

than their book value, so the difference between the selling price and the book

value

of

said shares was a taxable donation. GGG, Inc. requested the Secretary

of

Finance to review BIR Ruling No. 012-14, but the Secretary affirmed said

ruling. GGG, Inc. filed with the Court ofAppeals a Petition for Review under

Rule 43

of

the Revised Rules

of

Court. The Court

of

Appeals, however,

dismissed the Petition for lack

of

jurisdiction declaring that it is the CTA

which has jurisdiction over the issues raised. Before which Court should

GGG, Inc. seek recourse from the adverse ruling

of

the Secretary

of

Finance

in the exercise of the latter's power of review? (3 )

XIV. KKK Corp. secured its Certificate of Incorporation from the Securities and

Exchange Commission on June 3, 2013. t commenced business operations

on August 12, 2013. In April 2014, Ms.

J,

an employee

of

KKK Corp. in

charge of preparing the annual income tax return

of

the corporation for 2013,

got confused on whether she should prepare· payment for the regular corporate

income tax or the minimum corporate income tax.

a) As Ms.

J s

supervisor, what will be your advice? (2 )

b) What are the distinctions between regular corporate income tax and

minimum corporate income tax? (3 )

XV. In 2012, Dr. K decided to return to his hometown to start his own practice.

At the end of 2012, Dr. K found that he earned gross professional income in

the amount of Pl ,000,000.00; while he incurred expenses amounting to

P560,000.00 constituting mostly of his office space rent, utilities, and

miscellaneous expenses related to his medical practice. However, to Dr. K s

dismay, only P320,000.00

of

his expenses were duly covered by receipts.

What are the options available for Dr. K so he could maximize the deductions

from his gross income? (3 )


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Taxation-Bar Exam 2015

7

XVI. LLL is a government instrumentality created by Executive Order to be

primarily responsible for integrating and directing all reclamation projects for

the National Government. It was not organized as a stock or a non-stock

corporation, nor was it intended to operate commercially and compete in the

private market.

By virtue

of

its mandate, LLL reclaimed several portions of the foreshore and

offshore areas of the Manila Bay, some of which were within the territorial

jurisdiction ofQCity. Certificates of itle to the reclaimed properties inQCity

were issued in the name

ofLLL

in 2008. In 2014, Q City issued Warrants

of

Levy on said reclaimed properties of LLL based on the assessment for

delinquent property taxes for the years 2010 to 2013.

a. Are the reclaimed properties registered in the name

ofLLL

subject to real

property tax? (4

)

b.

Will your answer be the same in (a) if from 2010 to the present time, LLL

is leasing portions of the reclaimed properties for the establishment and

use of popular fastfood restaurants J Burgers, G Pizza, and K Chicken?

2o/o)

XVII. Mr. L owned several parcels of land and he donated a parcel each to his two

children. Mr. L acquired both parcels of land in 1975 for ll200,000.00. At

the time

of

donation, the fair market value

of

the two parcels

of

land, as

determined by the CIR, was 112,300,000.00; while the fair market value of the

same properties as shown in the schedule of values prepared by the City

Assessors was 112,500,000.00. What is the proper valuation of Mr. L s gifts

to his children for purposes

of

computing donor's tax? (3 )

XVIII. Under the Tariff and Customs Code, as amended:

a.

When does importation begin and when is it deemed terminated? (2 )

b. In what easels is the decision

of

the Collector automatically reviewed by

the Commissioner of Customs? In what instance/s is the decision of the

Commissioner automatically appealed to the Secretary of Finance? (4o/o)

XIX. In 2014, M City approved an ordinance levying customs duties and fees on

goods coming into the territorial jurisdiction

of

the city. Said city ordinance

was duly published on February 15, 2014 with effectivity date on March

1,

2014.

a. Is there a ground for opposing said ordinance? (2 )


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Taxation - Bar Exam 2015

b. What is the proper procedural remedy and applicable time periods for

challenging the ordinance? (

4o/o)

XX. After filing an Information for violation

of

Section 254

of

the National

Internal Revenue Code (Attempt to Evade or Defeat Tax) with the CTA, the

Public Prosecutor manifested that the People is reserving the right to file the

corresponding civil action for the recovery of the civil liability for taxes. As

counsel for the accused, comment on the People's manifestation. (3%)

XXL MMM, Inc., a domestic telecommunications company, handles incoming

telecommunications services for non-resident foreign companies by relaying

international calls within the Philippines. To broaden the coverage

of

its

telecommunications services throughout the country, MMM, Inc. entered into

various interconnection agreements with local carriers. The non-resident

foreign corporations pay MMM, Inc. in US dollars inwardly remitted through

Philippine banks, in accordance with the rules and regulations

of

the Bangko

Sentral ng Pilipinas

MMM, Inc. filed its Quarterly VAT Returns for 2000. Subsequently, MMM,

Inc. timely filed with the BIR an administrative claim for the refund of the

amount

of

P6,321,486.50, representing excess input VAT attributable to its

effectively zero-rated sales in 2000. The BIR ruled to deny the claim for

refund ofMMM, Inc. because the VAT official receipts submitted by MMM,

Inc. to substantiate said claim did not bear the words zero-rated as required

under Section 4.108-1 ofRevenue Regulations (RR) No. 7-95. On appeal, the

CTA division and the CTA

en bane

affirmed the BIR ruling.

MMM, Inc. appealed to the Supreme Court arguing that the NIRC itself did

not provide for such a requirement.

RR

No. 7-95 should not prevail over a

taxpayer's substantive right to claim tax refund or credit.

a. Rule on the appeal ofMMM Inc. (3%)

b.

Will your answer in (a) be any different if MMM, Inc. was claiming

refund

of

excess input VAT attributable to its effectively zero-rated sales

in 2012? (2%)

XXII. State the conditions for allowing the following as deductions from the gross

estate

of

a citizen or resident alien for the purpose

of

imposing estate tax:

a. Claims against the estate

2o/o)

b. Medical expenses (2%)


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Criminal Law - Bar

Exam 2015

3

I

a)

How are felonies committed? Explain each. (3 )

b) What

is aberratio ictus?

(2 )

II. Distinguish between ex

p st

facto law and bill o attainder. (3 )

Ill.

The Regional Trial Court {RTC) found Tiburcio guilty

o

frustrated

homicide and sentenced him to an indeterminate penalty o four years

and one day

o prision correccional as

minimum, to eight years o

prision mayor

as

maximum, and ordered him to pay actual damages in

the amount o

1125 000.00.

Tiburcio appealed to the Court o Appeals

which sustained his conviction as well as the penalty imposed by the

court

a

quo After sixty days, the Court o Appeals issued an Entry o

Judgment and remanded the records o the case to the RTC. Three days

thereafter, Tiburcio died o heart attack. Atty. Abdul, Tiburcio's

counsel, filed before the RTC a Manifestation with Motion to Dismiss,

informing the court that Tiburcio died already, and claiming that his

criminal liability had been extinguished by his demise.

a) Should the RTC grant the Motion to Dismiss the case? Explain.

(2.5 )

b) Assuming that Tiburcio' s death occurred before the Court o

Appeals rendered its decision, will you give a different answer?

Explain. (2.5 )

IV. Procopio, a call center agent assigned at a graveyard shift, went home

earlier than usual. He proceeded immediately to their bedroom to

change his clothes. To his surprise, he found his wife Bionci in bed

making love to another woman Magna. Enraged, Procopio grabbed a

knife nearby and stabbed Bionci, who died.

a) What crime did Procopio commit, and what circumstance

attended the case? Explain. (3 )

b) Assuming that Procopio and Bionci were common-law spouses,

will your answer be the same? Explain. (2 )


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Criminal Law - Bar Exam 2015

4

V

Dion and Talia were spouses. Dion always came home drunk since he

lost his

jo

a couple

of

months ago. Talia had gotten used to the verbal

abuse from Dion. One night, in addition to the usual verbal abuse,

Dion beat up Talia. The next morning, Dion saw the injury that he had

inflicted upon Talia and promised her that he would stop drinking and

never beat her again. However, Dion did not make good on his

promise. Just after one week, he started drinking again. Talia once

more endured the usual verbal abuse. Afraid that he might beat her up

again, Talia stabbed Dion with a kitchen knife while he was passed out

from imbibing too much alcohol. Talia was charged with the crime of

parricide.

a) May Talia invoke the defense

of

Battered Woman Syndrome to

free herself from criminal liability? Explain. (2.5%)

b) Will your answer

be

the same, assuming that Talia killed Dion

after being beaten up after a second time? Explain. (2.5%)

VI. Senator Adamos was convicted

of

plunder. About one year after

beginning to serve his sentence, the President of

the Philippines granted

him absolute pardon. The signed pardon states: In view hereof, and in

pursuance

of

the authority vested upon me by the Constitution, I hereby

grant absolute pardon unto Adamos, who was convicted of plunder in

Criminal Case No. XV32 and upon whom the penalty of reclusion

perpetua was imposed. He now comes to you for advice. He wants to

know if he could run for senator in the next election.

a) What advice will you give Adamos? Explain. (2.5%)

b) Assuming that what Adamos committed was heading a rebellion

for which he was imposed the same penalty of reclusion

perpetua and what he received was amnesty from the

government, will your answer be the same? Explain. (2.5%)

VII. Taylor was convicted of a violation of the Election Code, and was

sentenced to suffer imprisonment

of

one year as minimum, to three

years as maximum. The decision of the trial court was affirmed on

appeal and became final and executory. Taylor failed to appear when

summoned for execution of judgment, prompting the judge to issue an

order for his arrest. Taylor was able to use the backdoor and left for the

United States. Fifteen years later, Taylor returned to the Philippines


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5

and filed a Motion to Quash the warrant

of

arrest against him, on the

ground that the penalty imposed against him had already prescribed.

a)

If

you were the judge, would you grant Taylor's Motion to

Quash? Explain. (2.5 )

b) Assuming that instead

of

the United States, Taylor was able to go

to another country with which the Philippines had no extradition

treaty, will your answer be the same? Explain. (2.5 )

VIII. A typhoon destroyed the houses

of

many

of

the inhabitants

of

X

Municipality. Thereafter, X Municipality operated a shelter assistance

program whereby construction materials were provided to the calamity

victims, and the beneficiaries provided the labor. The construction was

partially done when the beneficiaries stopped helping with the

construction for the reason that they needed to earn income to provide

food for their families. When informed

of

the situation, Mayor

Maawain approved the withdrawal

of

ten boxes

of

food from X

Municipality's feeding program, which were given to the families

of

the beneficiaries

of

the shelter assistance program. The appropriations

for the funds pertaining to the shelter assistance program and those for

the feeding program were separate items on X Municipality's annual

budget.

a) What crime did Mayor Maawain commit? Explain. (2.5 )

b) May Mayor Maawain invoke the defense

of

good faith and that

he had no evil intent when he approved the transfer

of

the boxes

of

food from the feeding program to the shelter assistance

program? Explain. (2.5 )

IX. The Philippine Drug Enforcement Agency (PDEA) had intelligence

reports about the drug pushing activities

of

Rado, but could not arrest

him for lack

of

concrete evidence.

SP 3

Relio, a PDEA team leader,

approached Emilo and requested him to act as poseur-buyer

of

sh bu

and transact with Rado. Emilo refused, saying that he had completely

been rehabilitated and did not want to have anything to do with drugs

anymore. But he was prevailed upon to help when

SP 3

Relio

explained that only he could help capture Rado because he used to be

his customer.

SP 3

Relio then gave Emilo the marked money to be

used in buying

sh bu

from Rado. The operation proceeded. After

Emilo handed the marked money to Rado in exchange for the sachets

of sh bu

weighing 50 grams, and upon receiving the pre-arranged


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6

signal from Ernilo, SP03 Relio and his team members barged in and

arrested Rado and Ernilo, who were both charged with violation

of

R.A. 9165, otherwise known as the Comprehensive Dangerous Drugs

Act of2002

a) What defense, if any, may Ernilo invoke to free himself from

criminal liability? Explain. (2.5 )

b) May Rado adopt as his own Emilo's defense? Explain. (2.5 )

X. Honesto and Wilma were married but had been living separately due to

irreconcilable differences. Honesto later met Celia and fell in love with

her. Thinking that he could marry Celia if Wilma were to die, Honesto

decided to kill Wilma. He secretly followed Wilma for weeks to learn

her daily routine. He decided to kill her at night on her way home. On

the night he was to kill Wilma, Honesto wore dark clothes so that he

would not be easily seen. He waited in the dark alley for Wilma to pass

by. He saw someone whom he thought looked like Wilma and shot her

with a revolver. The bullet passed through the person's head and

grazed another passerby's arm. Some bystanders who heard the shot

were able to stop Honesto.

It turned out that Wilma did not report for work on that day, and the

one who was shot in the head was Melba, who died. The passerby

whose arm was grazed by the bullet required medical attendance for

two days.

a) What crime(s) did Honesto commit? Explain. (2.5 )

b) Will your answer be the same, assuming that the other passerby

was hit in the left eye which caused his/her blindness? Explain.

(2.5 )

XI. Nel learned that Elgar, the owner

of

the biggest house in the place,

would be out

of

town for three days with no one left to watch the

house. He called his friends Ben, Ardo and Gorio and they planned to

take the valuables in the house while Elgar was away. Nel and Ben

would go inside the house, Ardo would serve as the lookout, while

Gorio would stay in the getaway car. When Elgar left, they carried out

their plan to the letter. Nel and Ben went inside the house through the

backdoor which was left unlocked. None

of

the rooms and drawers


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7

inside were locked. They took the money, jewelry and other valuables

therefrom and immediately left using the getaway car.

After driving for about one kilometer, Nel realized he left his bag and

wallet with IDs in the house and so he instructed Gorio to drive back to

the house. Nel just went in thinking that the house was still empty.

But to his surprise, Nel found Fermin seated on a bench with Nel's bag

and wallet beside him and appeared to be texting using his smart phone.

Nel took a golf club near him and hit Fermin with it. Fermin shouted

for help, but Nel kept hitting him until he stopped making noise. The

noise alerted the neighbor who called the police. Nel, Ben, Ardo and

Gorio were caught. Fermin died. What is the criminal liability

ofNel

Ben, Ardo and Gorio? Explain. (5 )

XII. Ando, an Indonesian national who just visited the Philippines,

purchased a ticket for a passenger vessel bound for Hong Kong. While

on board the vessel, he saw his mortal enemy Iason, also an Indonesian

national, seated at the back portion of the cabin and who was busy

reading a newspaper. Ando stealthily approached Iason and when he

was near him, Ando stabbed and killed Iason. The vessel

is

registered

in Malaysia. The killing happened just a few moments after the vessel

left the port of Manila. Operatives from the PNP Maritime Command

arrested Ando. Presented for the killing of Iason, Ando contended that

he did not incur criminal liability because both he and the victim were

Indonesians. He likewise argued that he could not be prosecuted in

Manila because the vessel is a Malaysian-registered ship. Discuss the

merits ofAndo's contentions. (4 )

XIII. D0ra gave Elen several pieces of jewelry for sale on commission basis.

They agreed that Elen would remit the proceeds of the sale and return

the unsold items to Dora within sixty days. The period expired without

Elen remitting the proceeds of the sale or returning the pieces of

jewelry. Dora demanded by phone that Elen turn over the proceeds of

the sale and return the unsold pieces

of

ewelry. Elen promised to o so

the following day. El en still failed to make good on her promise but

instead issued post-dated checks. Thereafter, Dora made several more

demands, the last

of

which was

in

writing, but they were all unheeded.

When the checks were deposited in Dora's bank account, the checks

were returned unpaid for insufficient funds. Elen was charged with

estafa and violation of Batas Pambansa Big. 22. Will the charges

against Elen prosper? Explain. (4 )


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8

XIV. Dela convinced Nita to work in Taiwan, promising Nita that she would

take care o the processing

o

the necc ssary documents. Dela collected

1 120,000.00 from Nita purportedly for the processing o her papers.

Upon receipt o the money, Nita was made to accomplish certain forms

and was told that she would be deployed to Taiwan within one month.

After one month, Nita followed up on her application. Dela made some

excuses and told Nita that the deployment would be delayed. Another

month passed and Dela made other excuses which made Nita

suspicious. Nita later discovered that Dela was not licensed to recruit.

Nita confronted Dela and demanded the return o her money. Dela

promised to return the same in a week's time.

a) A week later, Dela was nowhere to be found. What crime(s) did

Dela commit? Explain. (2.5%)

b) Will your answer still be the same, assuming that the promise to

deploy for employment abroad was made by Dela to Celia, Digna

and Emma, in addition to Nita, and from whom Dela also

collected the same amount o processing fee? Explain. (2.5%)

XV.

Dancio, a member

o

a drug syndicate, was a detention prisoner in the

provincial jail o X Province. Brusco, another member o the

syndicate, regularly visited Dancio. Edri, the guard in charge who had

been receiving gifts from Brusco everytime he visited Dancio, became

friendly with him and became relaxed in the inspection o his

belongings during his jail visits. In one

o

Brusco's visits, he was able

2015 bar questions

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