2014 Bar Examinations-mercantile Law

2014 BAR EXAMINATIONS EXAMINATIONS COMMERCIAL LAW

October 19, 2014

8:00 A.M.- 12:00 N.N. INSTRUCTIONS

1. This Questionnaire contains FOUT!!N "14# $a%es inc&u'in% these (nstructions $a%es. )hec* the nu+ber  o $a%es an' the $a%e nu+bers n u+bers at the u$$er ri%ht han' corner o each $a%e o this Questionnaire Q uestionnaire an' +a*e sure it has the correct nu+ber o $a%es an' their $ro$er nu+bers. There are T!NT-N(N! T!NT-N(N! "29# !ssa/ an' Mu&ti$&e )hoice Questions "M)Qs# to be ansere' ithin four (4) hours. The essa/ $ortion contains uestions that are euia&ent to not less than less than 803 o the ho&e ea+ination, hi&e the M)Q $ortion contains uestions euia&ent to not more than more than 203. 2. ea' each uestion er/ careu&&/ an' rite /our ansers in /our 5ar !a+ination Noteboo* in the same order the questions are posed. rite posed.  rite /our ansers on&/ on the ront,not the bac*, $a%e o eer/ sheet in /our Noteboo*. Note e&& the a&&ocate' $ercenta%e $oints or e ach nu+ber, uestion, or sub-uestion. (n /our ansers, use the nu+berin% s/ste+ in the uestionnaire. ( the sheets $roi'e' in /our !a+ination Noteboo* are not suicient or /our ansers, use the bac* $a%e o  eer/ sheet o /our !a+ination Noteboo*, startin% at the bac* $a%e o the irst sheet an' the bac* o the succee'in% sheets thereater. 6. Anser the !ssa/ uestions legibly, clearly, and concisely. 7tart concisely. 7tart each nu+ber on a se$arate $a%e. An anser to a sub-uestion un'er the sa+e nu+ber +a/ be ritten continuous&/ on the sa+e $a%e an' the i++e'iate&/ succee'in% $a%es unti& co+$&ete'. our our anser shou&' 'e+onstrate /our abi&it/ to ana&/e the acts $resente' b/ the uestion, to se&ect the +ateria& ro+ the i++ateria& acts, an' to 'iscern the $oints u $on hich the uestion turns. (t shou&' sho /our *no&e'%e an' un'erstan'in% o the $ertinent $rinci$&es an' theories o &a ino&e' an' their ua&iications an' &i+itations. (t shou&' 'e+onstrate /our abi&it/ to a $$&/ the &a to the %ien acts, an' to reason &o%ica&&/ in a &a/er-&i*e +anner to a soun' conc&usion ro+ the %ien $re+ises.  A +ere es es or No anser ithout an/ corres$on'in% corres$on'in% e$&anation or 'iscussion i&& not be %ien %ien an/ cre'it. Thus, a&a/s briefly  but  but u&&/ e$&ain /our ansers a nsers a&thou%h the uestion 'oes not e$ress&/ as* or an e$&anation. At the sa+e ti+e, re+e+ber that a co+$&ete e$&anation 'oes not reuire that /ou o&unteer inor+ation or 'iscuss &e%a& 'octrines that are not n ecessar/ or $ertinent to the so&ution to the $rob&e+. ou ou 'o not nee' to re-rite or re $eat the uestion in /our Noteboo*. 4. M)Qs are to be ansere' b/ ritin% in /our Noteboo* the ca$ita& & etter A, 5, ), or  corres$on'in% to /our chosen anser. There is on&/ one correct anser to eer/ M)Q; choose the 5!7T anser ro+ a+on% the oere' choices. ac*# his 2014 To/ota )oro&&a se'an un'er a co+$rehensie +otor ehic&e insurance $o&ic/ or one /ear. On >u&/ 1, 2014, >ess car as un&au&&/ ta*en. Gence, he i++e'iate&/ re$orte' the thet to the Traic Mana%e+ent )o++an' "TM)# o the ?hi&i$$ine Nationa& ?o&ice "?N?#, hich +a'e >ess acco+$&ish a co+$&aint she et as $art o its $roce'ure. (n the co+$&aint sheet, >ess a&&e%e' that a certain ic 7i&at"7i&at# too* $ossession o the subDect ehic&e to a'' accessories an' i+$roe+ents thereon. Goeer, 7i&at ai&e' to return the subDect ehic&e ithin the a%ree' 6-'a/ $erio'. As a resu&t, >ess notiie' >ac* o his c&ai+ or rei+burse+ent o the a&ue o the &ost ehic&e un'er the insurance $o&ic/. >ac* reuse' to $a/ c&ai+in% that there is no thet as >ess %ae 7i&at &au& $ossession o the car. (s >ac* correctC "43# E((. >in%%/ ent to I&uer Uniersit/"IU# in Jer+an/ or his 'octorate 'e%ree "?h..#. Ge co+$&ete' his 'e%ree ith the hi%hest honors in the shortest ti+e.  hen he ca+e bac*, he 'eci'e' to set-u$ his on %ra'uate schoo& in his ho+eton in Ka+boan%a. Ater see*in% ree &e%a& a'ice ro+ his hi%h-&/in% &a/er-rien's, he &earne' that the ?hi&i$$ines o&&os the territoria&it/ $rinci$&e in tra'e+ar* &a, i.e., tra'e+ar* ri%hts are acuire' throu%h a&i' re%istration in accor'ance ith the &a. Forth ith, >in%%/ na+e' his schoo& the I&uer  Jra'uate 7choo& o 5usiness o Min'anao an' i++e'iate&/ secure' re%istration ith the 5ureau o Tra'e+ar*s. IU 'i' not &i*e the unauthorie' use o its na+e b/ its to$ a&u+nus no &ess. IU sou%ht /our he&$. hat a'ice can /ou %ie IUC "43# E(((.  As a ru&e, an insurance contract is consensua& an' o&untar/. The ece$tion is in the case o: "13# "A# (n&an' Marine (nsurance

"5# (n'ustria& @ie (nsurance ")# Motor Eehic&e @iabi&it/ (nsurance "# @ie (nsurance (L. On Februar/ 21, 2016, 5arrac* entere' into a contract o insurance ith Matino (nsurance )o+$an/ "Matino# ino&in% a +otor ehic&e. The $o&ic/ ob&i%ates Matino to $a/ 5arrac* the a+ount o 7i Gun're' Thousan' ?esos "?H00,000.00# in case o &oss or 'a+a%e to sai' ehic&e 'urin% the $erio' coere', hich is ro+ Februar/ 2H, 2016 to Februar/ 2H, 2014. On A$ri& 1H, 2016, at about 9:00 a.+., 5arrac* instructe' his 'rier, >>, to brin% the +otor ehic&e to a near b/ auto sho$ or tune-u$. Goeer, >>no &on%er returne' an' 'es$ite 'i&i%ent eorts to &ocate the sai' ehic&e, the eorts $roe' uti&e. esu&tant&/, 5arrac* $ro+$t&/ notiie' Matino o the sai' &oss an' 'e+an'e' $a/+ent o the insurance $rocee's o ?H00,000.00. (n a &etter 'ate' >u&/ uan i&es. On ece+ber 1, 2016, the !ecutie )o++ittee, ith 7arah @ an' >ane @ $resent, +et an' 'eci'e' on the o&&oin% +atters: 1. ?urchase o a 'e&ier/ an or use in the cor$orations retai& business; 2. ec&aration an' a$$roa& o the 1 6th +onth bonus; 6. ?urchase o an oice con'o+iniu+ unit at the Fort; an' 4. ec&aration o ?10.00 $er share cash 'ii'en'.  Are the actions o the !ecutie )o++ittee a&i'C "43# L(E. On 7e$te+ber 2anuar/ 10, 2011. hen the shi$+ent as 'ischar%e', it as note' that 2anuar/ 29, 2011, $rior to the ith'raa& o the &ast batch o the shi$+ent, a Doint ins$ection o the car%o as con'ucte' $er the euest or 5a' Or'er 7ure/ "5O# 'ate' >anuar/ 28, 2011. The ea+ination re$ort shoe' that 60,000 sheets o stee& ere 'a+a%e' an' in ba' or'er. NA (nsurance $ai' @T )or$orationthe a+ount o ?60,000,000.00 or the 60,000 sheets that ere 'a+a%e', as shon in the 7ubro%ation ecei$t 'ate' >anuar/ 16, 2016. Thereater, NA (nsurance 'e+an'e' re$aration a%ainst AT( or the %oo's 'a+a%e' in its custo'/, in the a+ount o ?u&/ 6, 1996, e&ia 7otero "7otero# too* out a &ie insurance $o&ic/ ro+ (&ocos 5an*ers @ie (nsurance )or$oration "(&ocos @ie# 'esi%natin% )reencia Aban"Aban#, her niece, as her beneiciar/. (&ocos @ie issue' ?o&ic/ No. 4, ith a ace a&ue o ?100,000.00, in 7oteros aor on Au%ust 60, 1996, ater the reuisite +e'ica& ea+ination an' $a/+ent o the $re+iu+. On A$ri& 10, 199H, 7otero 'ie'. Aban i&e' a c&ai+ or the insurance $rocee's on >u&/ 9, 199H. (&ocos @ie con'ucte' an inesti%ation into the c&ai+ an' ca+e out iththe o&&oin% in'in%s: 1. 7otero'i' not $ersona&&/ a$$&/ or insurance coera%e, as she as i&&iterate.

2. 7oteroas sic*&/ since 1990. 6. 7otero'i' not hae the inancia& ca$abi&it/ to $a/ the $re+iu+ on the $o&ic/. 4. 7otero'i' not si%n the a$$&ication or insurance. a+es "7$ouses >a+es#. (n the co+$&aint, ?ua $ra/e' that the 'een'ants $a/ ?ua the a+ount o ?8,a+es %ae hi+ seera& chec*s. These chec*s, hoeer, ha' a&& been 'ishonore' an' ?ua has not been $ai' the a+ount o the &oan $&us the a%ree' interest. (n 199H, the 7$ouses >a+es a$$roache' ?ua to %et the co+$utation o their &iabi&it/ inc&u'in% the 23 co+$oun'e' interest. Ater bar%ainin% to &oer the a+ount o their &iabi&it/, the 7$ouses >a+es %ae ?uaa $ost'ate' chec* bearin% the 'iscounte' a+ount o ?8,une 60, 2006. On 7e$te+ber  4, 2006, the +ort%a%e' $ro$ert/ as so&' at $ub&ic auction, hich as eentua&&/ aar'e' to N5as the hi%hest bi''er. That sa+e 'a/, the 7heri eecute' a )ertiicate o 7a&e in aor o N5. On October 21, 2006, M? i&e' a ?etition or ehabi&itation beore the e%iona& Tria& )ourt "T)#. ?ursuant to this, a 7ta/ Or'er as issue' b/ the T) on October 2, 2006. On the other han', N5 cause' the recor'in% o the 7heris )ertiicate o 7a&e on ece+ber 6, 2006 ith the e%ister o ee's o )abanatuan )it/. N5 eecute' an Ai'ait o )onso&i'ation o Onershi$ an' ha' the sa+e annotate' on the tit&e o M?. )onseuent&/, the e%ister o ee's cance&&e' M?s tit&e an' issue' a ne tit&e in the na+e o N5 on ece+ber 10, 2006. N5 a&so i&e' on March 1, 2004 an !-?arte ?etition or (ssuance o rit o ?ossession beore the T) o )abanatuan )it/. Ater hearin%, the T) issue' on 7e$te+ber H, 2004 an Or'er 'irectin% the (ssuance o the rit o ?ossession, hich as issue' on October 4, 2004. M? c&ai+s that a&& subseuent actions $ertainin% to the )abanatuan $ro$ert/ shou&' hae been he&' in

abe/ance ater the 7ta/ Or'er as issue' b/ the rehabi&itation court. (s M? correctC "43# LLE((. !@? (nsurance, (nc. issue' Marine ?o&ic/ No. 888 in aor o F)@ )or$. to insure the shi$+ent o 162 bun'&es o e&ectric co$$er catho'es a%ainst a&& ris*s. 7ubseuent&/, the car%oes ere shi$$e' on boar' the esse& M=E Menchu ro+ @e/te to ?ier 10, North Garbor, Mani&a. U$on arria&, F)@ )or$. en%a%e' the serices o )JM, (nc. or the re&ease an' ith'raa& o the car%oes ro+ the $ier an' the subseuent 'e&ier/ to its arehouses=$&ants in Ea&enue&a )it/. The %oo's ere &oa'e' on boar' te&e "12# truc*s one' b/ )JM, (nc., 'rien b/ its e+$&o/e' 'riers an' acco+$anie' b/ its e+$&o/e' truc* he&$ers. O the te&e "12# truc*s en routeto Ea&enue&a )it/, on&/ e&een "11# reache' the 'estination. One "1# truc*, &oa'e' ith e&een "11# bun'&es o co$$er catho'es, ai&e' to 'e&ier its car%o. 5ecause o this inci'ent, F)@ )or$. i&e' ith !@? (nsurance, (nc. a c&ai+ or insurance in'e+nit/ in the a+ount o ?1,