Suggested answers to the Merc Bar by Fiscal Rocille Aquino Tambasacan.doc

Suggested answers to the Merc Bar by Fiscal Rocille Aquino Tambasacan. If you were able to get the last minute materials, the reference question!age is indicated, including the !ower!oint slide number. I.  A.  Absolute Timber "o. #AT"$ #AT"$ has been been engaged engaged in the logging logging business business in Isabela. To secure one of its shi!ments of logs to be trans!orted by Ando% Shi!!ing "o., AT" !urchased a marine !olicy with an all&ris% !ro'ision. Because of a strong ty!hoon then hitting (orthern )u*on, the 'essel san% and the shi!ment of logs was totally lost. AT" filed its claim, but the insurer denied the claim on se'eral grounds, namely+ #$ the 'essel had not been seaworthy- #$ the 'essel/s crew had lac%ed sufficient training- #0$ the im!ro!er loading of the logs on only one side of the 'essel had led to the tilting of the shi! to that side during the stormy 'oyage- and #1$ the e2tremely bad weather had been a fortuitous e'ent.  AT"  AT" now see%s your your legal ad'ice ad'ice to %now %now if its claim was was sustainable. sustainable. 3hat is your ad'ice4 52!lain your answer. #06$ Suggested Answer+ The insurance claim is sustainable. An all ris% insurance !olicy co'ers all causes of concei'able loss or damage, e2ce!t as otherwise e2cluded in the !olicy or due to fraud or intentional misconduct on the !art of the insured. Since there was no sti!ulation as to what losses are e2cluded from the co'erage, the insured can reco'er. Source+ 7andboo% on Insurance )aw by Rocille Aquino&Tambasacan, !ages 81&89, citing "hoa Tie% Seng 's. "A, :.R. (o. ;19ust released from the car restoration sho! to its owner, Seth, an a'id s!ortsman. :i'en his !assion for sailing, he needed to go to a round&the&world 'oyage with his crew on his brand&new ;eure. Is the >ustification of @ennis warranted4 52!lain your answer. #16$ Suggested Answer+ (o. The ris% of loss in a trust recei!t agreement shall be borne by the entrustee, @ennis. )oss of goods, irres!ecti'e of whether or not it was due to the fault or negligence of the entrustee, shall not e2tinguish his obligation to the entruster. Source+ Section o%es %o. B. Safe 3arehouse, Inc. #Safe$ issued on 'arious dates negotiable warehouse recei!ts to eter, aul, and Mary co'ering certain goods de!osited by the latter with the former. eter, aul, and Mary then negotiated and endorsed the warehouse recei!ts to "yrus, Magnus, and "harles u!on !ayment by the latter of 'aluable consideration for the warehouse recei!ts. "yrus, Magnus, and "harles were not aware of, nor were they !arties to any irregularity or infirmity affecting the title or the face of the warehouse recei!ts. n due dates of the warehouse recei!ts, "yrus, Magnus, and "harles demanded that Safe surrender the goods to them. Safe refused because its warehouseman/s claim must first be !aid. "yrus, Magnus, and "harles refused to !ay, and insisted that such claim was the liability of eter, aul, and Mary. a. 3hat is a warehouseman/s claim4 #06$ Suggested Answer+ It refers to the warehouseman/s lien, or lien on goods de!osited or on the !roceeds thereof in his hands, for all lawful charges for storage and !reser'ation of the goods- also for all lawful claims for money ad'anced, interest, insurance, trans!ortation, labor, weighing, coo!ering and other charges and e2!enses in relation to such goods- also for all reasonable charges and e2!enses for notice, and ad'ertisements of sale. Source+ Section =, 3arehouse Recei!ts Act. b. Is Safe/s refusal to surrender the goods to "yrus, Magnus, and "harles legally >ustified4 52!lain your answer. #06$

Suggested Answer+ Ces. A warehouseman loses his lien u!on goods by surrendering !ossession thereof. Source+ Section 8, 3arehouse Recei!ts Act. III.  A. @ata Realty, Inc. #@RI$ was engaged in realty de'elo!ment. The family of Matteo owned udgment being rendered in fa'or of @D5. Meantime, @RI, facing inability to !ay its liabilities as they fall due but still holding substantial assets, filed a !etition for 'oluntary rehabilitation. Trying to beat the consequences of rehabilitation !roceedings, @D5 mo'ed in the trial court for the issuance of a writ of e2ecution. The trial court also ha!!ened to be the rehabilitation court. The writ of e2ecution was issued. Ser'ing the writ of e2ecution, Merto, the court sheriff who had >ust !assed his "redit Transactions sub>ect in law school, garnished Matteo/s ban% accounts, and le'ied his real !ro!erties, including his house and lot in Ma%ati.  Are the garnishment and le'y of Matteo/s assets lawful and !ro!er4 52!lain your answer. #16$ Suggested Answer+ Ces, considering there is no issuance yet of any "ommencement rder which necessarily includes a Stay or Sus!ension rder which results to, among others, sus!ension of all actions to enforce any >udgment, attachment or other !ro'isional remedies against the debtor. Source+ Section ?, FRIA, !ower!oint slide no. < in FRIA, )ast Minutere&3ee% )ecture B. Sid used to be the ma>ority stoc%holder and resident of 52cellent "or!oration #52cellent$. 3hen Meridian "o., Inc. #Meridian$, a local conglomerate, too% o'er control and ownershi! of 52cellent, it brought along its team of officers. Sid thus became a minority stoc%holder and a minority member of the Board of @irectors. 52cellent, being the leading

be'erage manufacturer in the country, became the mono!oly when Meridian/s own be'erage business was merged with 52cellent/s, thereby ma%ing 52cellent 'irtually the only be'erage manufacturer in the country. )eft out and ignored by the management, Sid became a fiscali*er of sorts, questioning during the Board meetings the direction being !ursued by 52cellent/s officers. Eltimately, Sid demanded the ins!ection of the boo%s and other cor!orate records of 52cellent. The management refused to com!ly, saying that his right as a minority stoc%holder has been much reduced. State under what conditions may Sid !ro!erly assert his right to ins!ect the boo%s and other cor!orate records of 52cellent. 52!lain your answer. #06$ Suggested Answer+ The following are the 'alid !ur!oses to >ustify a demand for ins!ection+ a.To ascertain the financial condition of the com!any or the !ro!riety of di'idendsb. the 'alue of the shares of stoc% for sale or in'estmentc. whether there has been mismanagementd.in antici!ation of shareholders meetings to obtain a mailing list of shareholders to solicit !ro2ies or influence 'otinge. to obtain information in aid of litigation with the cor!oration or its officers as to cor!orate transactions. If the right is to be denied on Sid, the burden of !roof is u!on the cor!oration to show that the !ur!ose of the shareholder is im!ro!er, by way of defense. Source+ Terelay In'estment and @e'elo!ment "or!o. 's. Culo, August 9, oint and solidary suretyshi!, issued !ostdated chec%s, and submitted all other requirements !rescribed by )uc%y. 3hen the loan a!!lication was about to be a!!ro'ed and the !roceeds released, B: "om!any, a %een com!etitor of thello in the fishing industry, wrote to the Board of @irectors and the management of )uc%y questioning the loan on the ground of conflict of interest due to Samito and thello being brothers, citing the legal restriction against ban% e2!osure of directors, officers, stoc%holders or their related interests. #@SRI$. a. 3hat are the three restrictions im!osed by law on @SRI transactions4 #16$ Suggested Answer+ These are+ #$ ratio of networth to total ris% assets. 3hen a loan is secured by realty, the loan should not be more than =96 of a!!raised 'alue of realty J ?ob was being an IT consultant at Future2 "o., a local com!uter com!any. Because of his ill&ad'ised in'estments in the stoc% mar%et and the fraud !er!etrated against him by his trusted confidante, 3yatt was already drowning in debt, that is, he had far more liabilities than his entire assets. 3hat legal recourse remained a'ailable to 3yatt4 52!lain your answer. #96$ Suggested Answer+ 7e can a!!ly for 'oluntary liquidation. It a!!lies when the indi'idual debtor has !ro!erties are not sufficient to co'er his liabilities, and owing debts e2ceeding 9