San Beda Redbook Errata 2014

ERRATA 2014 RED BOOK declared as unconstitutional the clause “or for three months for every year of the unexpired term, whichever th is less” provided in the 5 paragraph of Section 10 of R.A. No. 8042. But R.A. 10022, passed one (1) after the ruling in Soriano, reinstated the provision. However, the Court in the case of Yap v. Thenamaris Ship’s Management on May 30, 2011, declared R.A. No. 10022, Sec. 7 unconstitutional stating that “as a general rule, an unconstitutional act is not a law; it confers no rights; it imposes no duties; it affords no protection; it creates no office; it is inoperative as if it has not been passed at all.” The doctrine of operative fact serves as an exception to the aforementioned general rule but such doctrine is applicable only when a declaration of unconstitutionality will impose due burden on those who have relied on the invalid law.

POLITICAL LAW I. Page 30, Question No. 1 should be read as: Q: May former President Estrada run for re-election for President? ANS: The Court did not rule on the matter. However, he was able to participate as a candidate for the position of President in the May 10, 2010 elections where he garnered the second highest number of votes, despite a petition for his disqualification because no temporary restraining order was issued by court. Since he was not elected President the second time he ran and the issue on the proper interpretation of the phrase "any reelection" will be premised on a person’s second (whether immediate or not) election as President, there is no case or controversy to be resolved by the Supreme Court. No live conflict of legal rights exists. Thus, any discussion of his "reelection" will simply be hypothetical and speculative. It will serve no useful or practical purpose (Pormento v. Estrada, G.R. No. 191988, August 31, 2010).

III. Page 309, Question 3, the citation should be (LABOR CODE, Art. 249, formerly Art. 243).

CIVIL LAW

II. Page 38, Question No. 3 should be read as: Q: What is pocket veto? Is it allowed under the Constitution? ANS: (Same answer)

I. Page 712, Question No. 3 should be read as: Q: What are the grounds for new trial? ANS: The grounds for new trial are: 1. Fraud, accident, mistake or excusable negligence which ordinary prudence could not have guarded against and by reason of which such aggrieved party has probably been impaired in his rights; or 2. Newly discovered evidence, which he could not, with reasonable diligence, have discovered and produced at the trial, and which if presented would probably alter the result (RULES OF COURT, Rule 37, Sec. 1).

III. Page 98, Question No. 1 should be read as: Q: Are dual citizens required to take an oath of renunciation of foreign citizenship to be eligible to run for elective office? ANS: It depends. Dual citizens by virtue of birth are not required by law to take the oath of renunciation as the mere filing of the certificate of candidacy already carries with it an implied renunciation of foreign citizenship (Cordova v. Comelec, G.R. No. 176947, February 19, 2009). Dual citizens by naturalization, on the other hand, are required to take not only the Oath of Allegiance to the Republic of the Philippines but also to personally renounce foreign citizenship in order to qualify as a candidate for public office (Maquiling v. COMELEC, G.R. No. 195649, April 16, 2013).

TAXATION LAW I. Page 830, Question No. 4 should be read as: Q: Enumerate special laws granting tax exemptions. ANS: The following are some special laws granting tax exemptions: xxx 2. R.A. 6657 (Comprehensive Agrarian Reform Program) xxx

IV. Page 101, Question No. 2 should be read as: Q: When is the confirmation of the Commission on Appointments required? ANS: The following appointees require the confirmation of the Commission on Appointments: xxx same enumeration xxx

II. Page 851, Question No. 4 should be read as: Q: Is a taxpayer benefactor of a senior citizen entitled to additional exemption for such senior citizen? ANS: No, he shall not be entitled to claim the additional personal exemption of P25,000 which is allowed only to individual taxpayers with a qualified child or children (RR 07-2010, Sec.11).

V. Citation on Page 185, Question No. 1 should be (STATUTE OF THE INTERNATIONAL COURT OF JUSTICE, Art. 38).

LABOR LAW

III. Page 851, Question No. 5 should be DELETED. I. Page 224, Question No. 1, the citation should be (Art. 283(i), formerly Art. 277, as amended by R.A. No. 6715, Sec. 33).

COMMERCIAL LAW I. Page 107, Question No. 1 should be DELETED.

II. Page 231, Question No. 1, the question should be: Q: Is R.A. No. 10022, Sec. 7, which reinstated the provision in R.A. No. 8042, Sec. 10, valid? ANS: No. In the case of Serrano v. Gallant Maritime Services, Inc. on March 24, 2009, the Supreme Court

II. Page 141, Question No. 4 should be read as: Q: Are both common and preferred stocks included in the determination of the outstanding capital stock?

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ERRATA 2014 RED BOOK ANS: Yes. In a case decided by the Supreme Court, it was ruled that the term “capital” under Section 11, Article XII of the Constitution refers only to shares of stock entitled to vote in the election of directors (Gamboa v. Teves, G.R. No. 176579, October 9, 2012). However, the Securities and Exchange Commission issued and promulgated a circular providing that for purposes of determining compliance with the ownership requirements in the Constitution and/or existing laws by Corporations, the required percentage of Filipino ownership shall be applied to both: 1. the total number of outstanding shares of stock entitled to vote in the election of directors; and 2. the total number of outstanding shares, whether or not entitled to vote in the election of directors (SEC Memorandum Circular No. 8 Series of 2013, Sec. 2).

ANS: Subsidiary imprisonment is the subsidiary personal liability to be suffered by the convict who has no property with which to meet the fine, at the rate of one day for each amount equivalent to the highest minimum wage rate prevailing in the Philippines at the time of the rendition of judgment of conviction by the trial court (R.A. 10159, Sec. 1). II. The headings (Inciting to Rebellion and Proposal to Commit Rebellion) of the table in Page 311, Question No. 3 should be interchanged. III. Page 323, Question No. 1 should be read as: Decree Codifying the Laws on Illegal/ Unlawful Possession Etc. (P.D. No. 1866 As Amended By R.A. No. 8294) Q: What are the acts punishable? ANS: The acts punishable are: 1. Unlawful manufacture, sale, acquisition, disposition or possession of firearms or ammunition or instruments used or intended to be used in the manufacture of firearms of ammunition (P.D. 1866, Sec.1).The possession of any machinery, tool or instrument used directly in the manufacture of firearms or ammunition, by any person whose business or employment does not lawfully deal with the manufacture of firearms or ammunition, shall be prima facie evidence that such article is intended to be used in the unlawful/illegal manufacture of firearms or ammunition;

III. Page 209, Question No. 1 should be read as: Q: Can the AMLC freeze the monetary instrument or property related unlawful activity? ANS: Yes. The AMLC, either upon its own initiative or at the request of the Anti-Terrorism Council, is authorized to issue an ex parte order to freeze without delay: (a) property or funds that are in any way related to financing of terrorism or acts of terrorism; or (b) property or funds of any person, group of persons, terrorist organization, or association, in relation to whom there is probable cause to believe that they are committing or attempting or conspiring to commit, or participating in or facilitation the commission of financing of terrorism or acts of terrorism as defined under R.A. 10168. The Freeze order shall be effective for a period not exceeding twenty (20) days. Upon a petition filed by the AMLC before the expiration of the period, the effectivity of the freeze order may be extended up to a period not exceeding six (6) months upon order of the Court of Appeals: Provided, That the twenty-day period shall be tolled upon filing of a petition to extend the effectivity of the freeze order (R.A. 10168, Sec. 11). However, with respect to unlawful activities, except terrorism, defined in Section 3(i) of the AMLA, it is the Court of Appeals which can issue a freeze order upon a verified ex parte petition by the AMLC and after determination that probable cause exists that any monetary instrument or property is related to an unlawful activity. In such a case, the freeze order shall be effective immediately, and shall not exceed six (6) months depending on the circumstances of the case; Provided, that if no case is filed against the person whose account has been frozen within the period determined by the court, the freeze order shall be deemed ipso facto lifted (R.A. 10365, Sec. 8).

Note: If the violation is in furtherance of or incident to, or in connection with the crime of rebellion or insurrection, sedition, or attempted coup d'etat, such violation shall be absorbed as an element of the crime of rebellion, or insurrection, sedition, or attempted coup d'etat. The “no other crime” clause under Sec.1 of P.D. 1866 as amended by R.A. 8294 has been repealed by R.A.10591: “An Act Providing for a Comprehensive Law on Firearms and Ammunition and Providing Penalties for Violations thereof” enacted on May 29, 2013. Under the new law, the use of the loose firearms shall be deemed as an aggravating circumstance in the “other crime” committed only when it is inherent in the commission of the crime. The new law expressly provides that if the crime is committed without using the loose firearm, the violation of this Act (R.A. 10591) shall be considered as a distinct and separate offense.

IV. Page. 211, Question No. 3 should be read as: Q: What is an export enterprise? ANS: It is an enterprise wherein a manufacturer, processor or service (including tourism) enterprise exports sixty percent (60%) or more of its output, or wherein a trader purchases products domestically and exports sixty percent (60%) thereof (R.A. 7042, Sec. 3[e]).

CRIMINAL LAW I. Page 281, Question No. 4 should be read as: Q: What is subsidiary imprisonment? How it is applied under the law?

In addition, the Act provides that if the crime committed with the use of a loose firearm is penalized by the law with a maximum penalty which is lower than that prescribed in the preceding section for illegal possession of firearm, the penalty for illegal possession of firearm shall be imposed in lieu of the penalty for the crime charged: Provided, further, That if the crime committed with the use of a loose firearm is penalized by the law with a maximum penalty which is equal to that imposed under the preceding section for illegal possession of firearms, the penalty of prision mayor in its minimum period shall be imposed in addition to the penalty for the crime

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ERRATA 2014 RED BOOK punishable under the Revised Penal Code or other special laws of which he/she is found guilty (R.A. 10591, Sec. 29).

remedy. Rather, the court shall order such party to be impleaded. It is when the order of the court to implead an indispensable party goes unheeded may the case be dismissed for failure to obey judicial order under Rule 17.

2. Unlawful manufacture, sale, acquisition, disposition or possession of explosives (P.D. 1866, Sec. 3). The possession of any machinery, tool or instrument directly used in the manufacture of explosives, by any person whose business or employment does not lawfully deal with the manufacture of explosives shall be prima facie evidence that such article is intended to be used in the unlawful/illegal manufacture of explosives; 3. Tampering of firearm's serial number (P.D. 1866, Sec. 5); 4. Repacking or altering the composition of lawfully manufactured explosives (P.D. 1866, Sec. 6); and 5. Unauthorized issuance of authority to carry firearm and/or ammunition outside of residence (P.D. 1866, Sec. 7); 6. Transferring the possession of any firearm to any person who has not yet obtained or secured the necessary license or permit thereof (R.A. 10591, Sec. 41).

II. Page 634, Question No. 2 should be read as: Q: State the contents of the return of a writ of amparo ANS: Within 72 hours after service of the writ, xxx same xxx. III. Page 667, Question No. 4 should be read as: Q: When is bail a matter of right? ANS: All persons in custody shall be admitted to bail as a matter of right, with sufficient sureties, or released on recognizance: 1. Before or after conviction by the MTC; and 2. Before conviction by the RTC of an offense not punishable by reclusion perpetua, life imprisonment or death (Sec. 4, Rule 114). IV. Page 667, Question No. 5 should be read as: Q: When is bail a matter of discretion? ANS: Bail is a matter of discretion in the following cases: 1. Upon conviction by the RTC of an offense not punishable by death, reclusion perpeua or life imprisonment, admission to bail is discretionary (Sec. 5); 2. After conviction by the RTC wherein a penalty of imprisonment exceeding 6 but not more than 20 years is imposed, and not one of the circumstances below is present and proved, bail is a matter of discretion (Sec.5): a. Recidivism, quasi-recidivism or habitual delinquency or commission of crime aggravated by the circumstances of reiteration; b. Previous escape from legal confinement, evasion of sentence or violation of the conditions of bail without valid justification; c. Commission of an offense while on probation, parole or under conditional pardon; d. Circumstance of the accused or his case indicates the probability of flight if released on bail; e. Undue risk of commission of another crime by the accused during pendency of appeal.

Note: An imitation firearm used in the commission of a crime shall be considered a real firearm as defined in this Act and the person who committed the crime shall be punished in accordance with this Act: Provided, That injuries caused on the occasion of the conduct of competitions, sports, games, or any recreation activities involving imitation firearms shall not be punishable under this Act (R.A. 10591, Sec. 35). Note: On April 8, 2014, the Supreme Court En Banc issued a TRO effective Immediately and until further orders restraining the PNP from enforcing certain provisions provided under R.A. 10591 including: a. Centralizing all firearms applications and renewals at the Headquarters, Camp Crame, Quezon City, and ordering that PNP continue to accept, process and approve licensing and renewals thereof in all PNP regional offices and ordering the reinstatement of all PNP CSG SATO and FESAGS satellite offices, and previously accredited testing centers for drug, neuro-psych and medical clinics in the regions and NCR for purposes of firearms licensing requirements; b. Utilizing any courier services for deliveries of approved firearms license cards, and c. Implementing and enforcing the “waiver and consent” requirement for licensing and registration of firearms, allowing the respondent PNP’s personnel to enter gun applicant’s residence and dwelling for inspection, pursuant to Sec. 9 of RA 10591 and Rule 3, Sec. 9 of the IRR (PROGUN v. PNP, G.R. No. 211567, April 8, 2014).

It may be inferred from Sec. 5 that, if the accused is convicted by the RTC of a crime with a penalty of not more than 6 years imprisonment, bail is still a matter of discretion. However, the absence of the above-cited circumstances under Section 5 is not anymore required in order for the court to decide whether or not to grant bail. Note: In order to grant bail as a matter of discretion, there must be no final judgment yet. In other words, the accused should appeal the conviction of the RTC to the appellate court. Upon conviction of the RTC, the bail posted earlier as a matter of right loses its force and the accused must file a new and separate petition for bail.

REMEDIAL LAW

I. Page 492, Question No. 6 should be read as: Q: What is the effect of not impleading the indispensable party? ANS: Where the indispensable party is not impleaded or is not before the court, an outright dismissal is not the 3

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