Business Law (2)

1. Without authority from P, A sold Ps car in Ps name. Contract is:

a. Void
b. Voidable
c. Valid
d. Unenforceable

2. A corporation formed and organized for charity

a. eleemosynary corporation
b. ecclesiastical corporation
c. lay corporation
d. corporation sole

3. Dividends which do not decrease the capital of the corporation.

a. liquidating dividend
b. stock dividend
c. cash dividend
d. property dividend

4. The person in whose favour the obligation is constituted

a. Obligor
b. Obligee
c. Passive subject
d. Debtor

5. Noli agreed in writing to give all his CPA review materials to Noni if he passes the May 2019
CPA Board Examinations. In the May 2019 CPA Board Exam, Noli took the examination on the
first Sunday, but he did not report anymore in the succeeding examinations. Can Noni compel
Noli to give his CPA review materials to him?
a. No. because the condition was not fulfilled.
b. No. because the condition in this case will never happen
c. Yes, because the condition in this case shall be deemed fulfilled.
d. Yes, because their agreement is in writing and it is valid and enforceable.

6. Santos sold his Toyota pick-up to Razon. No date was fixed for the performance of the
obligation by the seller and the buyer. The obligation of the seller is:
a. To rescind the sale because there is not time fixed for the performance of the seller and the
buyer.
b. To deliver the pick-up only after the buyer writes the seller demanding the delivery of the pick-
up.
c. To deliver the pick-up after the buyer pays the price.
d. To deliver the pick-up immediately because the sale is already perfected contract.

7. Which phrase best completes the statement. When a debt is secured by a real estate
mortgage, upon default of the debtor
a. the only remedy of the creditor is to foreclose the real estate mortgage
b. another remedy is filing an action for collection and then foreclose if collection is not enough
c. the creditor can foreclose then mortgage the demand collection for any deficiency
d. none of the choices are correct

8. A commissioned B to paint his garden. Who owns the painting and the copyright on the
painting, respectively?
a. Both A
b. Both B
c. A and B, respectively
d. B and A, respectively

9. An insolvent individual debtor made a proposal in his petition for the settlement of his
obligations the payment of which is suspended by the suspension order issued by the Regional
Trial Court. What is the required vote by the creditors affected for the approval of such proposal
of insolvent individual debtor?
a. 4/5 of the creditors voting to unite upon the same proposition and the claims represented by
said majority vote amount to at least 3/5 of the total liabilities mentioned in the petition.
b. 3/5 of the creditors voting to unite upon the same proposition and the claims represented by
said majority vote amount to at least 2/3 of the total liabilities mentioned in the petition.
c. 1/3 of the creditors voting to unite upon the same proposition and the claims represented by
said majority vote amount to at least 4/5 of the total liabilities mentioned in the petition.
d. 2/3 of the creditors voting to unite upon the same proposition and the claims represented by
said majority vote amount to at least 3/5 of the total liabilities mentioned in the petition.

10. Who is primarily liable to the notes and coins which are considered legal tender in the
Philippine jurisdiction?
a. BSP
b. Government of Republic of Philippines
c. Landbank of the Philippines
d. DBP

11. If both principal and agent sold the land of the principal to two buyers, which of the latter
shall be owner.:
a. First registrant in good faith.
b. First possessor in good faith.
c. Oldest title in good faith.
d. Prior date contract.

12. A pledged his watch to B for P20,000. A failed to pay his obligation. B sold it at public
auction for P18,000. Can B recover the deficiency?
a. Yes, even without stipulation
b. Yes, if there is stipulation
c. No, even if there is stipulation
d. No, only if there is stipulation

13. The following are considered elements of the contracts of pledge and mortgage. Which is
the exception?
a. The pledgor or mortgagor must have the free disposal of the thing pledged or mortgaged
b. The pledgor or mortgagor must be the absolute owner of the thing pledged or mortgaged
c. Both are accessory contracts
d. The thing maybe appropriated if the debtor cannot pay

14. An employee of a large manufacturing firms earns a salary which is just a bit more than
what he needs for a comfortable living. He is able to still maintain a P10,000 savings account, a
P20,000 checking account, a P30,000 money market placement, and a P40,000 trust fund in a
medium-sized commercial bank. Which of the four accounts are deemed insured by the PDIC.
a. The P10,000 savings account and the P20,000 checking account.
b. The P30,000 money market placement and the P40,000 trust fund.
c. The P10,000 savings account and the P30,000 money market placement.
d. The P20,000 checking account and the P40,000 trust fund.

15. Roger binds himself to deliver to Rona a specific laptop. This is

a. an alternative obligation
b. a facultative obligation
c. both answers are correct
d. none of the answers are correct