Name: MILO, EUNICE G.

Score: ____________
CBEA RegFram Sections 2A, 2B
SY 2019-2020 FINAL EXAMS

I. TRUE OR FALSE.

TRUE 1. Warranty against eviction is inherent in a contract of sale; hence it is an

essential element thereof.
FALSE 2. Dacion en pago partakes of the nature of a sale; hence there is more
freedom in fixing the price of the thing conveyed.
TRUE 3. A contract for a piece of work must comply with the Statue of Frauds.
Accordingly, it must be in writing to the enforceable if the price is P500.00 or more.
FALSE 4. A sales contract requires the delivery of the thing sold for its perfection.
TRUE 5. If the consideration received for a thing is another thing and a monetary
consideration and the intention of the parties does not clearly appear, the contract
will be considered a contract of barter if the value of the property consideration is
greater than the monetary consideration.
TRUE 6. In a contract to sell, the full payment of the price is a suspensive condition
which upon fulfilment will require the execution of a contract of sale.
TRUE 7. It is not necessary that the vendor of a thing must be the owner thereof at
the time of sale as long as he can transfer its ownership to the buyer upon delivery.
FALSE 8. The sale of hope or expectancy is a valid even if the thing hoped for does
not come into existence.
TRUE 9. If the sale of a piece of land is made through an agent, the authority of
the agent must be in writing for the sale to be valid.
FALSE 10. The ownership of the thing sold is transferred upon the perfection of the
contract of sale.

II. MULTIPLE CHOICE.

C 1. Where check is drawn by a corporation, company or entity, the following are

responsible
a. The President of the company
b. All the officers of the company
c. Persons who signed the check
d. Only the Treasurer of the company
D 2. Which of the following is true about bouncing checks
a. Deceit is not an essential element of the offense
b. Malice or criminal intent is immaterial.
c. Every element of the crime is still to be proven before the court to warrant
a conviction for violation thereof
d. All of the above
D 3.The following is an element of the violation of BP 22
a. The making, drawing and issuance of any check to apply on account or
for value
b. The knowledge of the maker, drawer, or issuer that at the time of issue he
does not have sufficient funds in, or credit with the drawee-bank for the
payment of such check in full upon its presentment
c. Subsequent dishonour of the check by the drawee-bank for insufficiency
of funds or credit, or dishonour for the same reason had not the drawer,
without any valid cause, ordered the bank to stop payment
d. All of the above
D 4. BP 22 prohibits the act of —
a. Mere act of issuing a worthless check whether as a deposit
b. Mere act of issuing a worthless check as a guarantee or an
accommodation
c. As an evidence of a pre-existing debt
d. All of the above
A 5. BP 22 aims to
a. Put a stop to or curb the practice of issuing checks that are worthless
b. The making of worthless checks and putting them in circulation
 c. Prevent the disruption of regular banking transactions
d. All of the above

III. CHOOSE ONLY TWO QUESTIONS TO ANSWER.

1. Differentiate between Universal bank and commercial bank.

2. Can banks acquire its own shares? Explain.
3. Explain the fiduciary duty or nature of banks.
4. Suppose that drawer had kept sufficient funds in the drawee for 100 days from
the date thereon to cover the check he had issued. The next day he withdrew all
funds. When the check was presented later on that day to the drawee bank, it
was dishonoured. Is the drawer liable or not? Explain.

ANSWERS:
1. Differentiate between Universal bank and commercial bank.
 Universal Bank- A universal bank is a bank that combines the three main
services of banking under one roof. The three services are wholesale
banking, retail banking, and investment banking. In other words, it is a
retail bank, a wholesale bank, and also an investment bank. As well as
being able to offer an all-encompassing service, universal banks can reap
the synergies that exist when they operate in the three services
simultaneously.
 Commercial Bank- A commercial bank is a financial institution that
grants loans, accepts deposits, and offers basic financial products such
as savings accounts and certificates of deposit to individuals and
businesses. It makes money primarily by providing different types of loans
to customers and charging interest. The bank’s funds come from money
deposited by the bank customers in saving accounts, checking accounts,
money market accounts, and certificates of deposit (CDs). The depositors
earn interest on their deposits with the bank. However, the interest paid to
depositors is less than the interest rate charged to borrowers. Some of the
loans offered by a commercial bank include motor vehicle loans,
mortgages, business loans, and personal loans.

2. Explain the fiduciary duty or nature of banks.

 The fiduciary nature of banks is referred to a legal obligation of the bank
to act in the best interest of their valued customers’ account. Thus,
obligated party is entrusted with the care of such finances. The bank is
responsible to be loyal and provide reasonable care to the assets under
their control. Every action performed with their customer’s financial assets
must be ensured that it is just entirely for their utmost advantage since the
bank is expected to have more knowledge and actual expertise with those
financial assets being entrusted to them.