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Law 11 Midterm, 1 0708
Law 11 Midterm, 1 0708
Law 11 Midterm, 1 0708
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Marketing and Law Department
Law 11 Essentials of Philippine Business Law
DEPARTMENTAL MIDTERM EXAMS
1st SEMESTER SY 2007-2008
August 25, 2007, (Sat) 9:00-11:00 am
AGUAS, CHAN, GONZALES, LAUENGCO, NOLIDO, SANTIAGO
SET A
INSTRUCTIONS:
1.
2.
3.
4.
5.
6.
Label your bluebooks as BB#1, BB#2, BB#3, BB#4, BB#5 and BB#6 on the upper
left hand corner of each bluebook.
Write your SEAT NUMBER and SET on the upper right hand corner of each
bluebook.
Do not write your name, section or teachers name.
Use only BLACK or BLUE INK. No pencils are allowed.
Place your answers to particular questions in the proper bluebook, as indicated in the
examination question sheet.
Penalty for violating any of the above instructions is a five (5) point deduction on
your score.
GENERAL INSTRUCTIONS:
Answer each problem LOGICALLY, SEQUENTIALLY and CONCISELY, CITING THE
APPROPRIATE LEGAL BASIS. Violation of any rule will warrant the appropriate
deductions. Answers without the appropriate legal basis will warrant the lowest point credit.
Partial credit will be given to wrong answers. A totally unresponsive answer will warrant no
credit.
FOR QUESTIONS 1 and 2 use BLUE BOOK 1
1)
James owns three animals a horse, a cow and a carabao. James entered into an agreement
with John whereby in exchange for ten thousand pesos James would deliver his horse to John within
three days but in the same agreement James was given the right to substitute the cow or carabao in
place of the horse if James so wished. On the due date as James was about to deliver the horse , the
horse died of a heart attack and James grief stricken shot the cow and then the carabao. John was
angry at James for shooting the cow and carabao and demanded that James pay the value of the
carabao in accordance with the law. James said he was not liable for damages. Who is correct and
why? ( 8 points)
2)
A was obligated to pay B P1,000,000 and C P500,000 both on July 10,2007. On the due date
A could not pay either of the creditor so he assigned his car worth P500,000 to both of them as
payment by cession. Due to fortuitous events the car depreciated in value and was sold only for
P250,000 so B and C demanded the balance of the debt of P1,250,000 from A . A in his defense
countered that the lessening of value was due to fortuitous events and hence A stated that he was only
liable for P1,000,000 . Who is correct and why? ( 8 points)
the business did not take off as they expected, they all defaulted on their payments starting at the
fourth month, and by the seventh month, despite demands made by the bank on each of them, they all
failed to pay. It was then that BDO discovered that the 3 borrowers came from the same venture.
BDO approached you for help in solving this delinquent account, particularly on how to collect the
outstanding balances of each borrower. To start with, what legal principle is applicable here:
( 6 points)
What would you advise BDO? ( 2 points)
4)
After returning to Manila, Samantha received a letter from BPI advising her of her delinquent
status on her loan. Samantha replied that she had paid her loan while she was on vacation at Baguio,
to the BPI Family Savings Bank along Session Road. BPI replied that the BPI Family Savings Bank
was not an authorized collector of BPI loans, to which Samantha retorted How was I to know? Your
logo was everywhere, including your company slogan about taking depositors far away. Who is
correct and why? ( 8 points)
-END-