RED NOTES 2001-2002 MOST FREQUENTLY ASKED QUESTIONS IN COMMERCIAL LAW

SUBJECTS TRANSPORTATION Common Carrier

INCLUSIVE YEARS 1994 1996 2000

FREQUENCY

TOTAL

III I I

Breach of contract of carriage Bill of lading - stipulation of limited liability Public Service Act COGSA Collision of vessels Force majeure 1985 1989 1998 1995 2000 1995 2000 1995 1987 1995 1996 1981 1983 1984 1985 1980 1980 1980 1987 1986 I II I I I I I III I I I I I II I I I I I I 1

3 2 1 1 3

Stipulation limiting liability of carrier

5 1 1 2 1

Necessary deposits Doctrine of last clear chance Private carrier Prior operator rule Liability for the goods while in the custody of the carrier Hypothecary nature of maritime law Liability for negligence of employees/captain Limited Liability Rule

1981 1986 1982 1985 1983 2000 1994 1997 1999 2000 1993 1988 1988 1993 1989 1989

I I I I I I II I I I I I I I I I

2 2

Transhipment Admiralty and maritime commerce Liability of holder of certificate of public convenience Bareboat charter Liability of shipowner

5 1 1

2 1 1
1

COMMERCIAL LAW

RED NOTES 2001-2002

Liability for loss Liability for death and injury to passengers General Average Loss Doctrine of inscrutable fault NEGOTIABLE INSTRUMENTS LAW Section 1 1993 1997 1997 2000 1987 1997 I I I I I I 2 1 1

Negotiability

Promissory Note

Alteration Letter of Credit Minority Fraud Accommodation Party

Liability of Drawee Lack of Consideration Endorsement Notice of Dishonor

1996 1997 2000 1980 1989 1993 1980 1998 2000 1995 1996 1993 1994 1998 1995 1998 1985 1995 1998 1986 1994 1996 1994 1998 1984 1994 1996 1980 1981 1985 1994 1995 1996 1997 1982 1999 1983 1983 1984 1987 1997 1982 2000 1986 1997 1986 1994 1996

I I 1 I I I I I I I I I I I I I I I I I I I I I I II I I I I III I I I I I I I I I I I I I I I I I

3 3

2 2 1 2

3 1

2 2

4 1 1

Non-negotiability of postal money order Letter of credit Checks

Endorsement Material alteration Forgery

7 1 2

4 2

Incomplete and undelivered Instrument Dishonor of Checks Holder in Due Course

4
2

COMMERCIAL LAW

RED NOTES 2001-2002

2000 Negotiability of promissory note Minority as real defense Liability of endorser Liability of endorser Concealment INSURANCE Fire Insurance blank 1989 special 1989 1999 1994 1996 1998 1981 1994 1996 1982 1980 1982 1987 1994 1998 1986 1982 1982 1983 1983 1986 1983 1983 1983 1989 1982 1983 1982 1984 1987 1994 1995 1998 1994 1996 1997 1993 1994 1986 1994 1994 1994 1993 1983 1996 1998 2000 1985 I I II I I I II I I I I I I I I I I I I I I I I I I I I I I I I I II I I I I I I I I I I I I 1 I 3 1 1 1 1 1 1 I 1 I

1988 1989

I I

1 1

Assignment Third party Liability

3 1

Constructive Total Loss Insurable Interest

4 1

3 2 1 1 2

Incontestability Clause Warranty and representation Deviation General average Implied Warranty of Seaworthiness Compulsory Motor Vehicle Law Incontestability Clause Concealment of material fact Jettison Notice of abandonment Life Insurance

2 1 1 2 2 1

Concealment

No-fault Indemnity Authorized driver clause Co-insurance Re-insurance Subrogation Personal accident Marine Insurance

Beneficiary

COMMERCIAL LAW

RED NOTES 2001-2002

1988 2000 Misconduct of insurance agent Theft clause Incontestability clause 1988 1985 1988 1984 1988 1989 I II I I I I I I 4

1 2

Total loss/lawful abandonment No fault indemnity Proximate cause Property insurance Fire insurance

Double insurance Group Accident Insurance Instances when an insured entitled to a return of the premium WAREHOUSE RECEIPTS liability of warehouse for employees negligence negotiation of receipt liability for misdelivery negotiable document of title Negotiability Deliverable to depositary or to his order, or to bearer

1988 1989 1989 1987 1984 1993 1997 1999 1999 2000 2000

I I I I II I I I I I I

1 1 1 1

5 1 I 1

1998 1999

I I

1982 1983 1980

I I I

1986 1988 1989 2000 LIP Trademark 1982 1994 1983 1980 1985 1987 1996 1994 1995 1988 1981 1984

I I I 1 I I I I I I I II I I I I

Infringement

unfair competition

Right to sue

COMMERCIAL LAW

RED NOTES 2001-2002

1985 Patent - patentable works Copyright - infringement 1981 1989 1998 1988 1989 1997 1996 1998 1995 1996 1988 I I I I I I I I II II I I 14

Test of Dominancy INSOLVENCY LAW Insolvency

4 1

decalration of insolvency assignment of credit

1982 1981 1980

I I I

suspension of payment

1988

I 11

obligation of an insolvent debtor CHATTEL MORTGAGE -

1997 1980 1983 1986 1994 1996 1999

I I I I I I I

Registration

Foreclosure non-registration application to future debts

1997 1999 1999 1982 1984

I I I I I 9

BULK SALES LAW violation application to sale of all or substantially all of the assets of a corporation

1997 1999 2000 TRUTH IN LENDING ACT Compliance with RA 3765 (Truth in Lending Act)

I I 1

2000

COMMERCIAL LAW

RED NOTES 2001-2002

BANKING LAWS SUBJECTS Gen. Banking Act Legal Tender CORPORATION Insider Trading Anti-Dummy Law De facto Corporation Business opportunity rule going public/going private Corporation by estoppel Unpaid Subscription Intra-corporate Controversy INCLUSIVE YEARS 2000 2000 FREQUENCY I I TOTAL 1 1

1994 1995 1994 1986 1994 1984 1985 1986 1986 1994 1981 1985 1994 1996 1984 1994 1999 1995 1995 1981 2000 1981 1987 1989 1995 1984 1985 1995 1998 1993 1981 1987 2000 1985 1987 1995 1987 1995

I I I I I I II I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I

2 1 2 3 1 1 1

Pre-emptive Right

3 1 1

Fact of special Significance Interlocking Directors Dissolution of Corporation vs. Liquidation/Winding up Dividends - Declaration - KINDS Deadlock Suspension of Payments

3 1

Sale of all assets By-laws - amendment Insolvency

4 1

3 2

Management Contracts Personal Liability of Directors, officers and trustees Investment of Corporate Funds Rights of Stockholder Refusal to register Stock Certificate

1996 1996 1996 1996

I I I I

1 1 1 1

COMMERCIAL LAW

RED NOTES 2001-2002

Alter Ego Doctrine Separate & Distinct Personality SEC Jurisdiction Securities Moral Damages Nationality doing business in the Philippines Authorized Capital Stock Voting trust Foundations Derivative suit Dissenting Stockholder Right to Vote - cumulative voting Aliens elected as directors Right of Inspection 1996 2000 1996 1996 1985 1998 1998 1998 1998 1985 1993 1993 1998 1982 1998 1982 1983 1985 1988 I II I I I I I I I I I I I I I I I II I 1 2 1 1 2 1 1 1 1 1 1 1 2 1

Joint venture as distingushed from partnership

2000

COMMERCIAL LAW

RED NOTES 2001-2002

SUBJECTS Sale of all or substantially of all the asseys of a corporation Close corporation Subscription contract Trust fund doctrine Extension of corporate life Revised securities act - five features kinds of securities over-the-counter markets INCLUSIVE YEARS FREQUENCY TOTAL

1988 1988 1988 1988 1989 1988 1988 1988

I I I I I I I I

1 1 1 1 1

1989 1989 1989

I I I 4 1

- exempt transactions Unrestricted retained earnings Certificate of registration of articles of incorporation Rights and liabilities of corporate officer Capital Order of suspension (pd 902-a) Common shares/ preferred shares Appraisdal rights Merger Lost certificate of stock Unpaid subscription vs. insolvency of corporation Unpaid subscription of directors Three-year period after dissolution Shares of stock Lost certificate of stock USURY LAW

1989 1989 1999 1999 1999 1999 1999 1999

I I I I I I I I

1 1 1 1 1 1 1 1

1997 1997 1997 1984 1985 1997 1980 1999

I I I I I I I I

1 1 1 2 1 2

RETAIL TRADE LAW - Anti-Dummy Law - When applicable - COVERAGE TRUST RECEIPT LAW

1981 1980 1988 1980 1997 1982 1986

I I I 3 I I I I 3 1
8

- risk of loss TRUTH IN LENDING ACT

COMMERCIAL LAW

RED NOTES 2001-2002

CODE OF COMMERCE - ART. 586 - Theory of Manifestation BANKING General banking act Central bank act Violation of building and loan associations Banking institutions Receivership, conservatorship, liquidation Secrecy of Bank Deposits 1989 1997 1988 1988 1982 1982 I I I I I I 2 1 1 1 1

Security for loan Disclosure of deposits Capital Stocks of banking instruments PDIC Insolvency WTO REAL ESTATE MORTGAGE - vs. existing lease agreement - prior purchaser

1982 1983 1981 1980 1988 1989 1999 2000 1980 1980 1982 1997 2000 1997 1999

I I I I I I I 1 I I I I I I I

1 1 1 2 1 1

1999 1999

I I 2

COMMERCIAL LAW