Implementing the Amendments to Section 27, 28, and 34 of the National Internal Revenue Code of 1997, as Amended by Republic Act No. 12066
SECTION 1. SCOPE. – Pursuant to Sections 244 and 245 of the National Internal Revenue Code of 1997, as amended (Tax Code), in relation to Sections 1, 2, 4, and 32 of the Republic Act (RA) No. 12066, these Regulations are hereby promulgated to implement Sections 27, 28, and 34 of the Tax Code, specifically on:
(1) reduced income tax rates for domestic and resident Foreign corporations classified as Registered Business Enterprises (RBEs) under the Enhanced Deductions Regime (EDR) as provided in Section 294(C) of the Tax Code; and(2) additional allowable deductions from gross income under Section 34(C)(8) of the same Code.
Section 2 Corporate Income Tax Rates. – The income tax rates for domestic and resident foreign corporations pursuant to Section 27 and 28 of the Tax Code, as amended by RA No. 12066 are as follows:
SECTION 3. APPLICABILITY OF THE REDUCED INCOME TAX RATE, – For RBEs under the EDR, the corporate income tax rate of twenty percent (20%) shall apply starting November 28, 2024 and shall only cover the taxable income derived from registered projects or activities during each taxable year. Income from non-registered projects or activities shall be subject to the applicable income tax rates.SECTION 4. DEDUCTIBILITY OF INPUT TAX ATTRIBUTABLE TO VAT EXCEMPT SALES. – Input tax paid on local purchases attributable to VAT-exempt sales shall be deductible from the gross income of the taxpayer in accordance with Section 34(C)(8) of the Tax Code.SECTION 5. TRANSITORY PTOVISIONS. – For RBEs who availed of the EDR and have already filed their Annual Income Tax Return covering calendar year 2024 or fiscal year ending on or before the effectivity of these Regulations, the excess income tax payments as a result of the reduction of tax rate from twenty-five percent (25%) to twenty percent (20%) upon the effectivity of RA No. 12066 may be carried forward to the succeeding taxable quarter/year.
SECTION 6. SEPARABILITY CLAUSE. – If any of the provision of these Regulations is subsequently declared invalid or unconstitutional, the validity of the remaining provisions hereof shall remain in full force and effect.
SECTION 7. REPEALING CLAUSE. – All other issuance and rules and regulations or parts thereof which are contrary to the inconsistent with the provisions of there Regulations are hereby repealed, amended or modified accordingly.SECTION 8. EFFECTIVITY. – These Regulations shall take effect fifteen (15) days following its publication in the Official Gazette or the BIR Official Website, whichever come first.
2024 BAR EXAMINATIONSCIVIL LAWSEPTEMBER 8, 20248:00 AM – 12 NOON
1.
Carlos and Chloe scheduled their intimate wedding on September 4, 204 at 7:00 p.m. in Manila. Chloe purchased from Angelica a gold wedding ring with engraving “Love, Carlos” for PHP 1,000,000. Angelica promised to deliver the ring on or before the wedding day. On September 1, 2024, a weather bulletin warned that super typhoon Enteng will enter the country within three days. On September 4, 2024 at 6:00 a.m., typhoon Enteng and the enhanced southwest monsoon caused massive flooding that rendered major roads in Manila impassable to all kinds of vehicles. Angelica failed to deliver the ring in time for Carlos and Chloe’s wedding which pushed through despite the typhoon. Angelica delivered the ring the following day after the flood subsided. Chloe filed against Angelica a complaint for damages. Angelica denied liability and argued that typhoon is a fortuitous event. Chloe replied that typhoon is not a fortuitous event because its arrival was earlier announced. In any event, the typhoon will not exempt Angelica because of her negligence and default. Angelica was negligent when she failed to pay attention to the forecast and was in default when she delivered the ring after the wedding. Is Angelica liable for damages due to default complying with her obligation? Explain.
2.
Viada and Blanco are best friends. In July 2024, Blanco sold to Castan a parcel of land registered in Viada’s name. Blanco signed the deed of absolute sale in behalf of Viada and pretended as his agent. In August 2024, Viada executed a special power of attorney (SPA) authorizing Blanco to sell the identical parcel of land. Blanco executed a deed of absolute sale in favor of Sanchez Roman who was aware of the prior conveyance of the same land to Castan. Thereafter, Castan learned of the subsequent transaction between Blanco and Sanchez Roman. Castan then filed against Sanchez Roman an action for annulment of sale. Castan argued that Sanchez Roman is in bad faith becuase of his knowledge of the prior sale. Sanchez Roman countered that the sale between Blanco and Castan is void for lack of Viada’s consent. Castan replied that the subsequent issuance of the SPA of Blanco ratified any defect in their transaction. Who between Castan and Sanchez Roman has a better right over the parcel of land? Explain.
3.
Alice and Shiela occupied a parcel of land which they inherited from their parents. In 2003, Alice executed an affidavit of self-adjudication over the property and was issued a certificate of title solely under her name. In August 2024, Sheila discovered that she was excluded from the certificate of title. Shiela filed against Alice an action to reconvey the land based on implied trust. Shiela alleged continuous actual possession of the property and deprivation of share as compulsory heir. Alice countered that the prescriptive period to reconvey real property based on an implied trust is 10 years reckoned when she repudiated the trust in 2003 upon the issuance of certificate of title in her name. Thus, Shiela’s action for reconveyance filed only in 2024 had already prescribed. Is Sheila’s cause of action to recover her share in property from Alice already prescribed? Explain.
4.
In 2017, Maloi leased her real property to Sheena for a period of 10 years with rental escalation clause which reads: “For the first five years, the rental rate shall be PHP 10,000.00 per month subject to 10% increase for the succeeding years.”. In 2020 Sheena assigned to Colet her rights through postdated checks but were dishonored for having been drawn against a closed account. Maloi charged Colet with the crime of estafa. On the other hand, Maloi demanded from Sheena the unpaid rentals and stipulated increase in rent but was refused. Sheena denied liability and argued that her obligation was already extinguished when Colet substituted her as lessee. Sheena added that Maloi accepted rental payments from Colet. Did novation extinguish Sheena’s obligation under the contract of lease? Explain.
5.
Primo, a French national and permanent resident of Canada, executed in the Philippines a holographic will which he entirely wrote, dated and signed. Primo enumerated in the will various real and personal properties situated in the Philippines, France, and Canada. Primo bequeathed the properties in the Philippines to his parents, the properties in France to his siblings, and the properties in Canda to his wife and children. In 2024, Primo suffered a heart attack and died in Australia while attending a conference. Primos was survived by his wife, two children, parents, and three siblings. What laws shall govern the formalities of Primo’s holographic will, the distribution of his estate, and the qualifications of his heirs? Explain.
6.
In 2021, Jesse and Celeste got married. After a year, Jesse took all their savings and abandoned Celeste for his paramour Diana. Jesse asked Diana to quit her job. Diana hesitated because she has no money and is drowning in debts. Yet, Jesse promised to provide for all of Diana’s needs. Jesse and Diana then lived together. The following day, Jesse and Diana bought a brand-new car. The vehicle was exclusively registered under Diana’s name. Celeste learned of the purchase and filed an action to recover the vehicle from Diana. Celeste claimed that Jesse is still her lawful husband, and that the car is part of their community property. Diana countered that she and Jesse are co-owners of the vehicle. Can Celeste recover the vehicle from Diana? Explain.
7.
Lloyd had a long-time crush with his childhood friend Miggy. Lloyd always dreamed of building a family with Miggy but Philippine laws disapprove of same-sex marriages. Lloyd then migrated and established a career in Sweeden. After several years, Lloyd applied for naturalization and was granted Swedish citizenship. Lloyd underwent gender-affirming surgery to resemble the woman gender identity. Lloyd also changed his sex from “male” to “female” and his name from “Lloyd” to “Laida” pursuant to Swedish law. Thereafter, Laida returned to the Philippines and married Miggy. Is the marriage between Miggy and Laida valid? Explain.
8.
In 1990, Monica was born during the marriage of her parents Anton and Steph. In 2024, Monica discovered that a certain Patrick signed as the father in her birth certificate. Monica looked for Patrick and was informed that he passed away a year earlier. Monica learned that Patrick was Steph’s last boyfriend before she married Anton. Thereafter, Monica filed a complaint for partition of Patrick’s estate. Monica claimed that she is the non-marital child of Patric and Steph. Monica submitted her birth certificate where Patrick recognized her as his daughter. The heirs of Patrick opposed the complaint and argued that Monica is presumed the legitimate child of Anton and Steph pursuant to Article 164 of the Family Code which states that “children conceived or born during the marriage of the parents are legitimate.” The heirs of Patrick also invoked the rule that only the father can impugn the legitimacy of the child. May Monica impugn her own legitimacy in an action for partition? Explain.
9.
Zion purchased a condominium unit from Hammered Homes Realty (HHR) for PHP 10,000,000.00. Zion paid a down payment of PHP 2,000,000.00 while the balance of PHP 8,000,000.00 is payable for a period of 80 months at PHP 100,000.00 monthly installments. Zion started paying the monthly installments on April 15, 2022. Due to financial difficulties, Zion started to default on his payments from June 15, 2924. Zion paid PHP 1,800,000.00 total monthly installments. On August 15, 2024, Zion received a notarized letter cancelling the contract to sell. Zion then went to the office of HHR to claim the cash surrendered value of his payments pursuant to Republic Act No. 6552 entitled “Ready Installment Buyer Act” or the Maceda Law. Is Zion entitled to cash surrender value? Explain.
10.
Caloy died with a net estate of PHP 240 million, survived by his:
(1) father – Cesar;
(2) spouse – Grace;
(3) legitimate children – Teddy and Bobbie;
(4) illegitimate child – Rebreb; and
(5) sisters – Alex and Gabbie.
In his will, Caloy instituted Rebreb as the sole heir. How much can Rebreb receive from Caloy’s estate? Explain.
11.
Rico mortgaged a parcel of land to Maris as security for a loan. In the mortgage contract, Rico appointed Maris as attorney-in-fact for the purpose of selling the land in case of default in the payment of loan. Rico failed to pay his obligation. Maris then purchased the land from Rico through a deed of absolute sale. Later, Rico questioned the mortgage contract because it violates the prohibition against pactum commisorium. As such, the subsequent sale is also void. Is the sale between Rico and Maris valid? Explain.
12.
Kiko leased a parcel of land to Jackie from January to December 2024 or for a period of one year. In July 2024, Kiko sent to Jackie a letter which reads: “I am giving you the first opportunity to buy the leased property for PHP 1,000,000.00. You have until the expiration of the lease contract within which to decide.” Immediately, Jackie informed Kiko that she will buy the leased property for PHP 800,000.00. Kiko did not reply to Jackie. In August 2024, Jackie learned that Kiko sold the leased property to Bogs for PHP 800,000.00. Aggrieved, Jackie filed an action against Kiko and Bogs to rescind their contract of sale. Jackie claimed that the sale transaction violated her right of first refusal, and that she must be allowed to buy the property at a similar price of PHP 800,000.00. Can Jackie rescind the contract of sale between Kiko and Bogs for the alleged violation of her right of first refusal? Explain.
13.
Klyde and his predecessors-in-interest had been in open, continuous, exclusive and notorious possession and occupation of a 10-hectare agricultural land of the public domain under a bona fide claim of ownership since 1995. In 2015, the property had been declared alienable and disposable. In 2020, Klyde applied for registration of the lot. The Register of Deeds denied the application because Klyde did not occupy the property since time immemorial or before June 12, 1945. Is the Register of Deeds justified in denying the registration of the property in favor of Klyde based on lack of occupation since time immemorial? Explain.
14.
In 2015, Sergio and Calista got married. In 2019, Sergio started complaining about his recurring and severe migraines. Sergio then left without informing Calista his whereabouts. Eventually, Calista fell in love with her best friend Albert. In 2024, Calista filed a summary proceeding to declare Sergio presumptively dead so she can marry Albert. Calista alleged that Sergio’s only known relative is his brother, Robert, who lives in Cotabato City. Calista wrote to Robert and asked him about Sergio. Robert replied that he does not have any idea where to find Sergio. Calista also tried to inquire from Sergio’s friends but to no avail. Thus, Calista honestly believed that Sergio is already dead. Is Calista’s petition for declaration of presumptive death meritorious? Explain.
15.
Ginny arrived at Star Viva Hotel (SVH) and entrusted the ignition key of her vehicle to parking attendant Marco, who in turn, issued a valet parking customer claim stub. After parking the vehicle, Marco placed the ignition key inside a safety box. Ginny proceeded to the hotel lobby to check in. At midnight, the hotel security officer informed Ginney that her vehicle was carnapped. Ginny filed against SVH an action for damages for the loss of the vehicle. In its answer, SVH denied responsibility for any loss or damage to vehicles in the parking area since the valet parking service is a special privilege given for the convenience of the hotel guests. Is SVH liable for the loss of Ginny’s vehicle? Explain.
16.
In 2021, Kynan was born to live-in parents Popoy and Basha. After a year, Popoy and Basha parted ways due to irreconcilable differences. Basha worked as a market vendor to support Kynan and often left him in the care of his maternal grandmother. Popoy occasionally sent money for Kynan’s needs. Later, Basha had a discreet romantic affair with her best friend Helen. In 2024, Popoy filed a case for the sole custody of Kynan and alleged that Basha is an unfit mother. Popoy argued that Basha’s lesbian relationship is not conducive to the proper moral development of Kynan. Basha countered that she is able to take care of and provide for Kynan despite her meager income. Are there compelling reasons to deprive Basha of Kynan’s custody? Explain.
17.
Lennon made a last will and testament which contained two simple dispositions, to wit: “First, I am leaving one-half of my estate in favor of the poor…. Second, I am leaving one-half of my estate in favor of my soul….” Lennon named Atty. Manresa as executor and instructed him to carry out the provisions of his will. In 2024, Lennon died single and childless. Thereafter, Lennon’s will was presented for probate. The siblings of Lennon opposed the probate of the will and claimed his entire estate through intestate succession. The siblings of Lennon argued that his testamentary dispositions are void because the first is in favor of an unknown person while the second is for a beneficiary without civil personality. Are the dispositions in Lennon’s will void? Explain.
18.
Sharon owned a parcel of land adjoining the sea with flat terrain at the center and elevated rocky northern part. Sharon executed a written instrument where she donated the portion with flat terrain to Nichloas who accepted it in the same instrument. After the survey, Nicholas discovered that the land described in the deed of donation refers to the rocky northern portion. However, Sharon already died without correcting the mistake. Nicholas asked the heirs of Sharon to execute an amended deed of donation over the flat terrain but was refused. Nicholas filed against the heirs of Sharon an action for reformation of instrument to reflect the real intention of the parties. May the trial court compel the heirs of Sharon to reform the instrument and execute an amended deed of donation? Explain.
19.
On July 5, 2024, Odrey and Jeboy executed a notarized agreement for the sale of real property which reads: “Odrey agrees to sell Lot 0416 to Jeboy for a total consideration of PHP 1,000,000.00. Upon full payment of the purchase price, Odrey will execute a deed of absolute sale in favor of Jeboy.” The following day, Jeboy recorded the instrument with the Register of Deeds. On August 5, 2024, Odrey and Lorenz executed a notarized document over the same parcel of land which reads: “for and in consideration of PHP 1,000,000.00, receipt of which is hereby acknowledged, Odrey hereby sells, transfers, and conveys and by these presents sold, transferred, and conveyed Lot 0416 to Lorenz.” The deed between Odrey and Lorenz was not registered. Later, Jeboy discovered the transaction between Odrey and Lorenz. Jeboy invoked the rules on double sale and argued that he has a better right because he is the first registrant in good faith. Will the rules on double sale apply? Explain.
20.
Alan, a mall security guard, negligently shot Kazuto, a customer who died on the spot. The heirs of Kazuto filed an action for damages against Alan, for his own negligence, and his employer, Ryota Security Agency (RSA), for failure to observe diligence in the selection and supervision of its employees. In due course, the trial court ruled that both Alan and RSA are negligent and ordered them to pay damages in favor of the heirs of Kazuto, to wit:
FOR THE REASONS, the complaint for quasi-delict is GRANTED. Alan is civilly liable to pay the heirs of Kazuto PHP 1,000,000.00 actual damages, PHP 500,000.00 moral damages, and PHP 500,000.00 exemplary damages. Ryota Security Agency, as employer, is subsidiarily liable to pay the award of damages in case of the employee’s insolvency.
The award of damages shall earn interest at the rate of 12% from filing of the complaint until finality of the decision.
SO ORDERED.
Did the trial court properly impose the civil liabilities of Alan and RSA? Explain.
2024 BAR EXAMINATIONSLABOR LAW AND SOCIAL LEGISLATIONSSEPTEMBER 11, 20242:00 p.m. – 6:00 p.m.
Zhi Go (Zhi) is a non-resident Chinese national who plans to live and establish a career in the Philippines. Zhi went to the Philippines and applied with the Tarlac Agricultural Products (TAP) as an ordinary farm worker. The TAP hired Zhi because of her diverse set of farming skills. The TAP assigned Zhi in its Bambam Farm. Did TAP lawfully hire Zhi Go as a farm worker? Explain.
Manila Yummy Restaurant (MYR) pays its receptionists PHP 500.00 a day. The receptionists contested the amount because the present minimum wage in the National Capital Region is PHP 645.00 for the non-agricultural sector. MYR countered that it is paying the receptionists a total of PHP 700.00 which is more than the required minimum wage. MYR explained that it provides the receptionists food and beverage worth PHP 200.00 per day in addition to the PHP 500.00 cash component of their wages. The food and beverage are given during lunch time to ensure that the receptionists will entertain the guests instead of leaving their stations. Thus, the PHP 200.00 value of the food and beverage must be added to the PHP 500.00 cash component of their wage. May MYR lawfully add the value of the food and beverage as part of the wages of its receptionists. Explain.
Lexi Enterprises always made sure that the salary of its supervisory employees is 70% higher than the wage of its rank-and-file workers. Later, the management of Lexi Enterprises realized that its business is highly dependent on rank-and-file workers because they spend more time in providing services to the clients. Thus, Lexi Enterprises significantly increased the wages of its rank-and-file workers such that they are only 10% behind the salary of the supervisory employees. Consequently, the supervisory employees demand an increase in their salaries and alleged that Lexi Enterprises must correct the wage distortion. May the supervisory employees validly demand an increase in their salaries? Explain.
The Philippines celebrates “Ninoy Aquino Day” every August 21 of the year as a special non-working holiday. Tyson Plastic Company (TPC) scheduled its machine shutdown on August 21, 2024 and informed the workers that the factory will be closed for maintenance. Later, the President of the Philippines issued Proclamation No. 665 moving the observance of “Ninoy Aquino Day” from August 21, 2024, Wednesday, to August 23, 2024, Friday, to promote domestic tourism in the country. The TPC announced that the machine shutdown will push through as scheduled and required the workers to report on August 23, 2024. Winslet is paid PHP 700.00 daily salary as a machine operator. Winslet reported for work on August 23, 2024 and claimed holiday premium pay. The TPC denied the claim and argued that Winslet already enjoyed the holiday on August 21, 2024 when the factory was closed. How much is Winslet entitled to for working on August 23, 2024? Explain.
Spouses Felix and Sarah have three minor children. In 2022, Felix was detained for committing a non-bailable offense. Sarah looked for a job to support her children. On May 18, 2024, Jared Corporation hired Sarah as a cashier. On August 18, 2024, Sarah claimed that she is a solo parent and applied for parental leave under Republic Act No. 11861 or Expanded Solo Parents Welfare Act. Is Sarah entitled to parental leave? Explain.
In August 2019, Vans Taste Restaurant (VTR) entered into a yearly and renewable service contract with Colin Consultancy Services (CCS) for the supply of professional advisors that will design action plans for the restaurant business. CCS has a capital of PHP 20,000,000.00 based on its audited financial statements. CCS hired Grayson, Oswald, and Peyton (Grayson, et. al.) and deployed them to VTR as a professional advisors. CCS prescribed Grayson, et. al. ‘s daily work schedules and specific steps in designing the action plans. Whereas the VTR required Grayson, et. al. to submit five action plans each month. In August 2024, the service contract expired without VTR and CCS renewing the agreement. VTR then no longer permitted Grayson, et. al. To enter the restaurant. Aggrieved, Grayson, et. al. filed against VTR a complaint for regularization and illegal dismissal because they have been working as its professional advisors for five years. Grayson, et. al. also claimed that CCS is a labor-only contractor since it has no investment in the form of tools, equipment, and machineries. Will the complaint for regularization and illegal dismissal prosper? Explain.
Grand Duke Manila (GDM), a five-star world-class hotel, hired Zoey as a banquet server. GDM informed Zoey of its company rules against tattoos as part of the grooming standards. The policy prohibits hospitality staff members from having tattoos due to their different cultural meanings that might offend foreign guests. Later, GDM discovered that Zoey had an existing tattoo on her nape which she concealed during the hiring process. After the required notices, GDM dismissed Zoey for violation of the company policy against tattoos. Is Zoey’s dismissal valid? Explain.
Brent Therapy Clinic (BTC) engaged Franklin as a probationary physical therapist for a period of five months. BTC informed Franklin that he must obtain satisfactory grades in these criteria: (a) diagnosis of movement dysfunction; (b) therapeutic exercise techniques; (c) stimulation and healing message; and (d) proper use of machines and equipment. After three months, BTC observed that Franklin cannot meet the minimum criteria. Franklin was unfamiliar with therapeutic exercise techniques and was unable to remember the use of therapy machines. The following day, the owner of BTC left a note on Franklin’s desk which reads:
Hi Franklin. I tried to guide and train you in the past months but there has been no improvement. The management is unhappy with your work performance. Thus, your probationary employment is terminated one week from notice for failure to meet the standards for regularization.
Aggrieved, Franklin questioned his termination for lack of procedural due process. Is BTC required to comply with the twin-notice rule before terminating Franklin’s employment? Explain.
Preston Salon and Spa (PSS) hired Nixon as a senior stylist in its Manila branch. Nixon signed an employment contract which provides that ”employees shall not engage in or set up within the same locality a business similar or related to the company during their course of employment and for a period of one year after their tenure.” Thereafter, PSS received information that Nixon assisted his sister in establishing a new salon in Manila. Nixon admitted lending PHP 300,000.00 to his sister as capital and that he shall be entitled to 10% yearly profits of the new salon. Nixon also referred two former PSS employees as applicants to the new salon. After the required notices, PSS dismissed Nixon for violation of his employment contract. Is Nixon’s dismissal valid? Explain.
Ronin Airline Company (RAC) hired Orwell as a flight engineer. In January 2024, RAC and Orwell entered into a three-month overseas training agreement which reads: ”the employer agrees to invest on the travel expenses and allowances of the employee abroad provided that he will remain in the company for two years after the training. Otherwise, the employee must reimburse the employer travel expenses and pay liquidated damages of PHP 30,000.00.” Orwell completed the training abroad and returned to the Philippines. In August 2024, Orwell tendered his irrevocable resignation. Aggrieved, RAC filed against Orwell a complaint for sum of money before the trial court. Orwell sought to dismiss the action for lack of jurisdiction and argued that it is the labor arbiter that has the authority to decide money claims arising from employment relationship. Which between the trial court and labor arbiter has jurisdiction over the complaint? Explain.
Athena Coffee Company (ACC) hired 300 coffee roasters under similar employment terms and conditions. ACC assigned these employees to its three roasting factories in Manila, Laguna, and Cavite factories. ACC opposed the petition and argued that the three factories do not constitute an appropriate bargaining unit on account of their different geographical locations. May the coffee roasters in the three factories constitute an appropriate bargaining unit? Explain.
EXO Corporation, Inc. (ECI) and its exclusive bargaining agent Kami Labor Union (KLU) entered into a collective bargaining agreement effective from December 15, 2019 to December 14, 2024. The agreement prohibits KLU and its members from holding a strike and lockout. In May 2024, ECI and KLU negotiated the economic provisions of the agreement but ended in a deadlock. KLU filed a notice of strike. After the conciliation failed, KLU conducted a strike vote which obtained majority support. KLU reported the strike vote to the Department of Labor and Employment. KLU then went on strike after the mandatory cooling-off period. ECI questioned the validity of the strike for being contrary to the collective bargaining agreement. In contrast, KLU argued that it complied with the strict requirements for staging a strike. Is the strike legal? Explain.
On May 31, 2024, the collective bargaining agreement between Gretel Corporation, Inc. (GCI) and Gretel Labor Union (GLU) expired. After several negotiations, GCI and GLU signed a new collective bargaining agreement on August 31, 2024, which obliged the company to pay a wage increase in favor of the employees. GLU then demanded salary differentials starting June 1, 2024. However, GCI argued that the provisions of the new collective bargaining agreement as to the wage increase shall be prospective in application beginning August 31, 2024. When shall the salary increase be reckoned? Explain.
In 2023, Star Maxima Corporation (SMC) and Astra Labor Union (ALU) executed a collective bargaining agreement covering the rank-and-file employees effective for five years. In 2024, Troy called for the removal of Andres as union president and obtained majority support of ALU members through signature campaign. Thereafter, Troy assumed the position of union president, changed the name of ALU to Stella Labor Organization (SLO), adopted new by-laws, and appointed other union officers. Andres informed SMC that ALU remained the exclusive bargaining agent. On the other hand, Troy demanded recognition of SLO and its new leadership to administer the collective bargaining agreement and to receive the union dues. Eventually, SMC turned over the collected union dues to the SLO treasurer. Aggrieved, Andres filed a complaint for unfair labor practice against SMC alleging gross violation of the collective bargaining agreement. Is SMC guilty of unfair labor practice? Explain.
Thalia, the owner of Quinn Karaoke Club (QKC), hired Darrence as an accountant. On January 19, 2023, QKC’s owner verbally informed Darrence to look for another job and banned him from the club. Darrence filed against QKC a complaint for illegal dismissal. Meantime, Darrence was hired an accountant in another company on February 14, 2023. In its answer, QKC countered that Darrence abandoned his work in favor of a better paying job. On June 22, 2024, QKC ceased business. In due course, the Labor Arbiter declared Darrence unjustly dismissed from work and awarded him full backwages computed from January 19, 2023, when he was verbally dismissed, until June 22, 2024, when QKC stopped operations. Thalia sought reconsideration and invoked the principles of ”no work no pay” and ”unjust enrichment.” Thalia argued that Darrence’s salaries earned from another employer should be deducted from the award of backwages. The Labor Arbiter granted the motion and recomputed backwages from January 19, 2023, Darrence’s date of illegal dismissal, until February 14, 2023, when another employer hired him. Is the Labor Arbiter correct in limiting the period for computing the award of backwages? Explain.
Zoe Enterprises hired Celine as a machine operator. In January 2024, Celine was medically diagnosed with tuberculosis and declared “unfit to continue working” Zoe Enterprises dismissed Celine because of serious illness and gave her separation pay of one month salary per year of service which she used for her hospitalization and medical expenses. In April 2024, Celine was cleared of tuberculosis and was issued a medical certificate that she is medically fit to work. Celine demanded reinstatement from Zoe Enterprises but was refused. Aggrieved, Celine filed a complaint for illegal dismissal. Zoe Enterprises countered that Celine was validly dismissed because she was suffering from a contagious disease. Is Zoe Enterprise liable for illegal dismissal? Explain.
Mabuhay Travels Inc. (MTI), a local manning agency acting for its principal Carousel Cruise Corporation (CCC), deployed Elizabeth as waitress on board the vessel M/S Carnival Miracle. Elizabeth finished the contract and prepared for repatriation. Upon arrival in Manila, Elizabeth complained of episodic chest and neck pains. Elizabeth consulted a cardiologist and was diagnosed of “mitral regurgitation, allergic rhinitis, and thyroid pathology.” The chest and neck pains of Elizabth persisted that rendered her unfit for sea service. Elizabeth then filed a complaint for disability benefits against MTI and CCC. The Labor Arbiter dismissed the complaint because Elizabeth did not undergo a post-employment medical examination with the company-designated physician within three working days from arrival in the Philippines. Is the Labor Arbiter correct in dismissing the complaint for failure of Elizabeth to comply with the mandatory three-day reportorial requirement? Explain.
Fabio entered into a contract of overseas employment as a seafarer with Gibson Ship Management (GSM), a local manning agency acting in behalf of its principal Blythe Tankers Company (BTC). On board the vessel, Fabio suffered lower back pains while performing his assigned task. Despite therapy and medication, Fabio continued to suffer severe lower back pains. The company-designated physician diagnosed Fabio with ”Lumbar Strain T/C Slipped Disc.” Fabio then filed a complaint for disability benefits before the Labor Arbiter. GSM and BTC countered that Fabio is disqualified from claiming disability benefits because he concealed his urinary tract infection and hypertension during his pre-employment medical examination. Is Fabio entitled to disability benefits even if he concealed pre-existing medical conditions? Explain.
Virgie and Nina are neighbors. Virgie requested her house helper Sandro to help Nina with the upkeep of her house for two days each month. Sandro agreed and rendered general household work in Nina’s house. Nina paid Sandro PHP 1,000.00 per day of work. Virgie learned about this additional compensation. Thus, Virgie deducted from Sandro’s monthly wage the amount corresponding to his wage for two days. Can Virgie lawfully make deductions from Sandro’s monthly wage? Explain.
Lottie, Mathie, and Cachie asked Homer if he is interested to work in Indonesia. Homer inquired about the available job and Lottie told him that he will work as a restaurant entertainer. Mathie said that Homer only needs a passport. Cachie added that a certain Mr. Park will finance Homer’s travel expenses. After a week, Cachie gave a ticket to Homer and informed him that he can now leave for Indonesia. Homer, together with Lottie and Mathie, boarded a boat which transported them to Miangas Island. Lottie and Mathie brought Homer to a restaurant and introduced him to Mr. Park. A vehicle fetched Homer and took him to a club, The driver said that the place is a prostitution den. Inside the club, Homer was forced to have sexual intercourse with customers every night. Later, the police authorities rescued Homer and repatriated him to the Philippines. Homer filed against Lottie, Mathie, and Cachie criminal complaints for illegal recruitment and human trafficking. In her counter-affidavit, Cachie claimed that she cannot be convicted of illegal recruitment and human trafficking because she was not part of the group that transporter Homer to Miangas Island. Is Cachie criminally liable for both illegal recruitment and human trafficking? Explain.
2024 BAR EXAMINATIONSREMEDIAL LAW, LEGAL AND JUDICIAL ETHICSSeptember 15, 20242:00 p.m. – 6:00 p.m.
Toni filed an action for breach of contract against Ivana. At the trial, Toni answered these questions from her counsel:
Q: What happened next, if any?
A: Ivana and I negotiated the terms of the transaction.
Q: After your negotiation with Ivana, did you reduce your agreement into writing?
A: Yes, we drafted and signed an instrument.
Q: Do you know the contents of this instrument?
A: Yes.
Q: Will you tell the court the contents of this instrument?
If you are Ivana’s counsel, will you object to the last question? Explain.
In a criminal case for homicide, the prosecution offered Austin as witness to prove that Titus admitted to him the killing of the victim. At the trial, Austin answered these questions from the public prosecutor:
Q: Did you witness the killing of the victim?
A: No, ma’am.
Q: What were you doing when the victim was killed?
A: I was sleeping, ma’am.
Q: Why are you testifying against Titus?
A: Because Titus admitted to me that he killed the victim.
Q: What did Titus tell you?
Immediately, Titus’s counsel objected to the question on the ground that the answer of Austin would be hearsay and inadmissible in evidence. If you are the judge, how will you rule on the objection? Explain.
Zeinab, Glenda, and Rosmar had several business dealings. Zeinab purchased from Glenda PHP 1,000,000.00 worth of beauty products. On the other hand, Rosmar borrowed from Glenda PHP 2,000,000.00 as additional capital. Zeinab and Rosmar promised to pay their respective obligations to Glenda after one year. On due date, Zeinab paid Glenda only PHP 700,000.00 while Rosmar did not pay any amount despite repeated demands. Aggrieved, Glenda filed a complaint to recover PHP 2,300,000.00 against Zeinab and Rosmar before the Regional Trial Court (RTC). Does the RTC have jurisdiction over the complaint? Explain.
Ulrich is resident and owner of a house and lot situated in Pasay City. Thereafter, Ulrich discovered a deed of real estate mortgage over the house and lot which he supposedly executed to secure a loan from Nigel. The mortgage contract contained a stipulation that “all civil actions arising from or connected with this instrument or any of its provisions shall be brought before the proper courts of Bacolod City, to the exclusion of all other venues of action which are hereby expressly waived.” Aggrieved, Ulrich filed against Nigel an action to declare void the spurious deed of real estate mortgage before the Regional Trial Court in Pasay City. In his answer, Nigel raised an affirmative defense that the venue was improperly laid. The action must be filed exclusively in Bacolod City pursuant to the mandatory venue stipulation. Which between Pasay City and Bacolod City is the proper venue for the action to nullify the deed of real estate mortgage? Explain.
Gomez died leaving his wife Morticia and daughter Wednesday. Thereafter, Morticia filed a petition for probate of Gomez’s holographic will before the Regional Trial Court (RTC). The holographic will contained a detailed distribution of Gomez’s estate, Wednesday opposed the petition on the ground that it failed to allege that earnest efforts have been made among the surviving family members towards an amicable settlement of the estate of the deceased. The RTC dismissed the petition for probate absent compliance with a condition precedent as mandated by Article 151 of the Family Code. Is the RTC correct in dismissing the petition for probate for failure to allege earnest efforts toward a compromise? Explain.
The Department of Public Works and Highways (DPWH) launched an infrastructure project that will connect the major highways in the country. Trevor’s real property situated in Bacoor, Cavite will be affected by the implementation of the project. The DPWH, through the Office of the Solicitor General, then initiated expropriation proceedings with motion for the urgent issuance of a writ of possession. The DPWH attached a manager’s check equivalent to 100% of the zonal valuation of Trevor’s property and indicated the Office of the Clerk of Court, Regional Trial Court (RTC) of Bacoor, Cavite as payee. The DPWH furnished Trevor with copies of the complaint, motion, and manager’s check. The motion was not set for hearing. Thereafter, the RTC issued the writ of possession. Trevor questioned the propriety of the issuance of the writ of possession because he was not afforded due process in determining the valuation of his real property. Was the writ of possession validly issued in the expropriation case even without a hearing? Explain.
Myrna leased her real property to Geybin for a period of one year. However, Geybin refused to vacate the premises after the expiration of the lease. Myrna then filed against Geybin an unlawful detainer case. The Metropolitan Trial Court (MeTC) ruled in favor of Myrna and ordered Geybin to surrender the real property. The judgment of the MeTC lapse into finality but was not enforced. For humanitarian reasons, Myrna allowed Geybin to stay on the real property provided he will surrender its possession when needed. Thereafter, Myrna demanded from Geybin to vacate the premises but was refused. Myrna filed against Geybin another unlawful detainer case. In his answer, Geybin argued that the second ejectment case is barred by the prior final judgment in the first ejectment case. Does res judicata bar the institution of the second unlawful detainer case? Explain.
Amor filed against Yoda and the Register of Deeds an action for reconveyance, nullity of sale, and cancellation of certificate of title before the Regional Trial Court (RTC). Amor alleged that Yoda unlawfully obtained a certificate of title when he registered the disputed land in his name based on a falsified deed of sale. In due course, the RTC found Amor as the lawful owner of the realty and declared the sale void. However, the RTC failed to expressly include in the dispositive portion the cancellation of the certificate of title. The decision became final and executory. Amor moved for clarificatory inquiry about the omission in the dispositive portion. The RTC clarified its final judgment and required the Register of Deeds to cancel the certificate of title. Aggrieved, Yoda questioned the RTC’s course of action and argued that it cannot modify a final judgment to correct perceived errors of law and fact. Did the RTC violate the doctrine of immutability of final judgment when it required the Register of Deeds to cancel the certificate of title? Explain.
The Ombudsman filed an information against City Mayor Isidro for violation of Section 3(e) of Republic Act No. 3019 or the Anti-Graft and Corrupt Practices Act before the Sandiganbayan. The information alleged that Mayor Isidro, “an incumbent City Mayor with Salary Grade 30, while in the performance of his official and administrative functions, acting with evident bad faith and manifest partiality, did then and there willfully, unlawfully and criminally give unwarranted benefits to ABC Corporation by allowing it to operate a dumpsite without the necessary environmental permits and clearances causing undue injury to the residents who had to endure the stench, flies, rats and mosquitoes emanating from the dumpsite.” Mayor Isidro sought to dismiss the criminal case for lack of jurisdiction and explained that the Regional Trial Court (RTC), not the Sandiganbayan, has authority to decide the controversy. Which between the Sandiganbayan and the RTC has proper jurisdiction over the criminal case? Explain.
The Philippine Drug Enforcement Agency (PDEA) received a tip from its confidential informant that Aidan was selling dangerous drugs in his residence in Quezon City. The PDEA agents conducted surveillance and confirmed the illegal activity. The PDEA agents then filed an application for search warrant before the Regional Trial Court (RTC) of Manila. The PDEA agents stated that Aidan has two kilos of shabu in his residence ready for disposal. The PDEA agents added that they will use two body-worn cameras. The Executive Judge of the RTC of Manila granted the application and issued a search warrant. The PDEA agents enforced the warrant and seized two kilos of shabu from Aidan. Is the issuance of search warrant valid? Explain.
The Metropolitan Trial Court (MeTC) convicted Ivanka of theft and imposed upon her the indeterminate penalty of one year and eight months, as minimum, to three years, six months and 21 days, as maximum. Ivanka timely filed a notice of appeal. The MeTC then transmitted the records of the criminal case to the Regional Trial Court (RTC). Thereafter, the RTC directed Ivanka to file a memorandum of appeal. However, Ivanka failed to submit here memorandum despite notice. The RTC then dismissed Ivanka’s appeal for failure to file the required memorandum. Did the RTC properly dismiss Ivanka’s appeal for failure to file the required memorandum? Explain.
Hermie and his 11-year old son Karter are residing in the province. Vincent, a talent manager, recruited Karter to be a child actor. Hermie agreed and gave parental consent. Vincent brought Karter in Manila. Vincent locked Karter in a small room and obliged him to have sex with clients. After one month, Vincent brough Karter inside an operating room and removed one of his corneas and a large portion of his skin. The operatives raided the premises, rescued Karter, and arrested Vincent. The social worker interviewed Karter who narrated how he was recruited, detained, sexually abused, and subjected to organ removal. The psychologist also diagnosed Karter with post-traumatic stress disorder. The prosecution charged Vincent with qualified human trafficking. However, Karter refused to testify because of severe trauma. At the trial, the prosecution called the social worker to the witness stand to establish the elements of the offense charged based on Karter’s statements during the interview. Vincent objected on the ground that the testimony of the social worker is inadmissible for being hearsay. Is the testimony of the social worker hearsay? Explain.
Esnyr filed against Fonzie a complaint for sum of money with prayer for preliminary attachment. Esnyr alleged that Fonzie failed to pay the consideration arising from their contract of service. The trial court granted the provisional remedy and levied Fonzie’s property. However, Fonzie died during the pendency of the proceedings. Accordingly, the heirs of Fonzie moved to dismiss the case and to dissolve the writ of preliminary attachment. The heirs of Fonzie argued that the writ of preliminary attachment would adversely affect their right to dispose the estate. The trial court dismissed the case and dissolved the writ of preliminary attachment. Did the trial court properly dismiss the case and dissolve the writ of preliminary attachment? Explain.
Virgil filed a disbarment complaint against Atty. Flores for dishonest and deceitful conduct. Virgil alleged that he paid a substantial amount to Atty. Flores who promised to facilitate the release of a favorable judgment. The operatives then arrested Atty. Flores for selling fake court decisions. As supporting evidence, Virgil submitted screenshots of text messages exchanged between him and Atty. Flores, to wit: “If you send PHP400,000.00 then you will surely win the case!”; “Any … I already deposited the amount, thank you.”; “Okay, received … let’s wait for a month according to the judge.” However, Atty. Flores argued that the records are bereft of any proof showing that the text messages originated from a phone number registered in his name. Thus, the text messages are inadmissible in evidence. Are the text messages inadmissible in evidence? Explain.
Rigor, Marites and Lena are best friends. Eventually, Rigor married Marites but they separated due to irreconcilable differences. After five years, Marites visited Rigor in his apartment for possible reconciliation. Marites was surprised to discover that Rigor and Lena were already living together as common law partners. Due to extreme jealousy, Marites physically assaulted Lena who sustained major contusions and trauma. The public prosecutor charged Marites with serious physical injuries. At the trial, the prosecution called Rigor in the witness stand to testify on the incident. Marites invoked the marital disqualification rile which prohibits the spouses from testifying against one another during their marriage. Marites argued that her marriage with Rigos remains valid and existing despite their separation. The prohibition must apply to bring back solidarity and harmony in their marital relationship. Is the marital disqualification rule applicable between Rigor and Marites? Explain.
Atty. Perez induced Eunice to invest money in a trading business with guaranteed profits. Atty. Perez assured Eunice that the business was doing well. Eunice agreed and delivered to Atty. Perez PHP 10,000,000.00 as capital investment. Atty. Perez issued to Eunice postdated checks with amounts representing her capital and expected profits. Thereafter, Eunice discovered that the trading business was a sham and that the checks were all drawn against a closed account. Aggrieved, Eunice filed against Atty. Perez a criminal action for estafa and a disbarment complaint for gross misconduct. Atty. Perez sought to suspend the disciplinary charge against him pending resolution of the criminal proceedings. Atty. Perez explained that his innocence or acquittal constitutes a prejudicial question to his administrative liability arising from similar incidents. Does the pending criminal action constitute a prejudicial question to warrant the suspension of the disbarment case? Explain.
Colin is a strict team leader who earned the disdain and displeasure of his co-employees. Colin started to receive text messages and calls from unknown mobile numbers warning him that his days are numbered. Colin reported the threats to his manager. After investigation, the manager decided to transfer Colin to another station for security reasons. Colin repeatedly requested from his manager to disclose the details of the investigation but was refused. Aggrieved, Colin filed a petition for issuance of writ of habeas data to stop his involuntary transfer to another station which allegedly amounts to constructive dismissal. Colin also claimed that the unjustified refusal of the management to disclose the basis of his transfer constitutes serious threat to his rights to privacy and liberty. Will the petition for habeas data prosper to protect Colin’s right to security of tenure? Explain.
Atty. Cassandra, a solo legal practitioner, hired Sandro as a legal researcher. Atty. Cassandra has an appeal brief due on September 25, 2024. However, Atty. Cassandra contracted monkeypox and suffered high fever, severe headache, and muscle fatigue. Atty. Cassandra then instructed Sandro to finish the appeal brief, affix her signature, and file the pleading with the Court of Appeals. Did Atty. Cassandra violate any provision of the Code of Professional Responsibility and Accountability? Explain.
Francis, through Atty. Kyle, charged Madam Toyoh with violation of Presidential Decree No. 1612 or the Anti-Fencing Law for purchasing a vintage vehicle knowing that it proceeds from the crime of carnapping. Madam Toyoh hired Atty. Caleb as counsel and confessed to him that she is guilty of the offense. Atty. Calen promised Madam Toyoh that he will do anything to prove her innocence. Atty. Caleb then reached out to Francis and negotiated for an amicable settlement that resulted n the execution of a release, quitclaim, and waiver of rights. Atty. Kyle discovered the compromise agreement and noticed some unfair provisions. Atty. Kyle filed against Atty. Caleb an administrative case for impropriety. On the other hand, Atty. Caleb countered that the ethical standards in the legal profession mandates lawyers to encourage clients to avoid and settle any controversy. Atty. Caleb added that the compromise agreement is beneficial to both parties. Did Atty. Caleb violate any provision of the Code of Professional Responsibility and Accountability? Explain.
Atty. Diwata, a suspended lawyer, created a professional social media page and maintained poser accounts which she used across various social networks. Atty. Diwata, during her livestream, spread fake news that the Court’s Strategic Plan for Judicial Innovations 2022-2027 failed to achieve its major target outcomes and had prejudiced the legal profession. Particularly, Atty. Diwata launched a social media campaign against the Code of Professional Responsibility and Accountability and claimed that it is akin to an ex post facto law because its provisions are given retroactive effect. May the Supreme Court discipline Atty. Diwata for her social media activities? Explain.
2024 BAR EXAMINATIONSCOMMERCIAL AND TAXATIONS LAWSEPTEMBER 8, 20242:00 P.M. – 6:00 P.M.
Nympha, a famous author, collaborated with Tobias, a novice illustrator, to create a children’s book. Tobias offered his services for free. Nympha gave Tobias the manuscript and discussed with him the inspiration for the characters. Nympha envisioned a story about two best friends who had a huge fight but later realized the value of forgiveness. Tobias drew the characters based on Nympha’s specifications and instructions. Nympha then published the book and claimed sole copyright ownership. Nympha argued that she is the author not only of the text but also the images in the book since Tobias exactly adopted her idea. Is Nympha the copyright owner of the images or drawings in the book? Explain.
In 1984, the Nova Family established the North Nova, Inc. (NNI), a pharmaceutical company. On August 31, 1984, NNI was issued its certificate of incorporation with corporate term of 40 years. On August 31, 2024, the corporate term of NNI expired without the board of directors renewing its corporate existence. However, the Nova Family continued NNI’s business operations. South Moon, Inc. (SMI), a rival company, questioned the Nova Family’s action. SMI argued that the Nova Family cannot continue to operate NNI without reviving its corporate existence. Is the Nova Family’s continued operations of NNI valid? Explain.
Ernest Bicycle Corporation (EBC) and Max Speed Corporation (MSC) are the leading manufacturers and sellers of electric bicycles in the country. EBC and MSC offer their bestselling models at PHP 25,000.00 per unit. IN 2023, Gryffin Pedals, Inc. (GPI) entered the market and sold electric bicycles with features similar to EBC and MSC’s bestselling models for only PHP 20,000.00. GPI has no physical stores and offers its products in digital marketplaces. After a year, GPI had 75% share of the market leading EBC and MSC at 15% and 10% shares, respectively. EBC and MSC filed a complaint before the Philippine Competition Commission and alleged that GP is fast monopolizing the electric bicycles market because of its dominant position. Will the complaint against GPI for violation of the competition laws prosper? Explain.
Audrey read the 24-hour rush sale from Easy Shopping, a known digital marketplace, which offers free shipping plus 50% cash back for purchases worth at least PHP10,000.00. Audrey checked out several items and placed the orders pursuant to the promotion. Easy Shopping accepted the orders and marked them “pending payment”. However, Audrey’s digital wallet had insufficient funds and was reloaded only the following day. At that time, the cashback and free shipping promotions were no longer available. Audrey then demanded from Easy Shopping to honor their transaction based on the promotion and presented a screenshot of her orders as supporting evidence. On the other hand, Easy Shopping countered that the transaction is unenforceable absent a written contract and that Audrey must pay the regular price and normal shipping rate. Is the transaction enforceable on the basis of the screenshot of Audrey’s orders with Easy Shopping? Explain.
In 2022, Annie, Brenda, Clara, Donna, and Enola formed Nurturing Family Organization (NFO), a corporation with the principal purpose of helping single parents. Gregory, a wealthy philanthropist, donated to NFO a parcel of land through a public document. Clara accepted the donation in the same public instrument because NFO was not yet registered with the Securities and Exchange Commission (SEC). In 2023, the SEC issued a certificate of incorporation in favor of NFO. In 2024, Clara died and her heirs included the donated land in the settlement of her estate. The heirs of Clara argued that she owned the real property and not NFO which lacked legal personality at the time of donation. Is the donation of real property in favor BFO valid despite its lack of legal personality? Explain.
Pierre and Fonzi derived money from the illegal trade of Philippine wildlife like pangolins, tarziers, and palm civets. Pierre and Fonzi collected PHP 2,000,000.00 each month which they delivered to Phoebe, an art collector. Phoebe used the funds to buy high-value paintings which she auctioned off in art galleries. The police officers tracked down the unlawful wildlife trading and arrested Phoebe. The operatives charged Phoebe with money laundering. At the trial, Phoebe argued that she should be acquitted of the charge because she did not participate in the wildlife trading. Is Phoebe criminally liable for money laundering? Explain.
Nina and Roxanne are shareholders of Essean & Essaiah Corporation (EEC) engaged in the pet supplies business. In 2023, the Board of Directors declared surplus profits and distributed dividends to the shareholders. The Board of Directors likewise released the shareholders with unpaid subscriptions from their obligations. Accordingly, Nina and Roxanne no longer settled the unpaid balance of their subscriptions. Upon inspection of corporate books, however, it was revealed the EEC has been experiencing insolvency for the last three years. In 2024, the directors and shareholders dissolved EEC during their annual meeting and divided corporate properties and assets among themselves. Aggrieved, the creditors of EEC filed an action against Nina and Roxanne to collect the corporate debts. In their answer, Nina and Roxanne invoked the distinct personality of EEC from its shareholders. Nina and Roxanne added that they are not privy to be transactions between EEC and its creditors. May the creditors of EEC run after Nina and Roxanne to satisfy their claims? Explain.
Felix, Ivan and Ruth formed a partnership to operate a coffee shop. Felix and Ivan provided the capital while Ruth contributed her labor and industry. Within the coffee shop, Felix opened his own plant kiosk and Ruth put up her own souvenir shop. Whereas Ivan set up a coffee stall two blocks away from the coffee shop. May the partners Felix, Ivan, and Ruth lawfully engage in their separate businesses? Explain.
Dory is a video bolgger with 500,000 subscribers. Dory documented her life in law school and uploaded the videos in social media platforms. Dory earned PHP 100,000.00 for each video that gets a hundred thousand views. In one video, Dory shared her difficulties in reading hundreds of cases and the application of penalties in Criminal Law. Byrom, a law student, uploaded a 10-minute video in social media using a 30-second clip from Dory’s vlog showing the case list in Criminal Law. Byron shared his study habits and discussed how a law student like Dory can easily memorize the doctrine on the list. Byron’s video got 1,000,000 views and earned more than what Dory gained. Dory envied Byron and sued him for copyright infringement and argued that he used her content for monetary gain. Is Byron liable for copyright infringement? Explain.
Express Innovation Corporation (EIC) applied for registration with the Securities and Exchange Commission (SEC). The EIC submitted its proposed Articles of Incorporation which reads:
First: That the name of the corporation shall be, “Express Innovation Corporation”
…..
Third: That the principal office of the corporation is located in Sakurajima, Konohana Ward, Osaka, Japan.
Ninth: That Haru Nikko, a resident of Japan, has been elected by the subscribers as the Treasurer of the Corporation to act as such until after the successor is duly elected and qualified in accordance with the by-laws, That as Treasurer, authority has been given to receive in the name and for the benefit of the corporation, all subscriptions, contributions or donations paid or given by the subscribers or members, who certified the information set forth in the seventh and eighth clauses above, and that the paid-up portion of the subscription in cash and/or property for the benefit and credit of the corporation has been duly received.
If you are the SEC Examiner, will you recommend the approval of the Articles of Incorporation? Explain.
Duke is a resident of an exclusive subdivision. Duke always heard loud cars and motorcycles passing through the neighborhood at night. Duke then set up a closed-circuit television (CCTV) at his gate and recorded the rowdy vehicles and their plate numbers. Thereafter, Duke requested from the Land Transportation Office (LTO) the names and addresses of the registered owners of the vehicles. Duke explained that he will use the CCTC footage as supporting evidence in his complaint for damages against the vehicle owners. However, the LTO denied the request on the ground that personal information of vehicle owners can be disclosed without their consent. Is the LTO correct in denying Duke’s request for information? Explain.
Blaine Builders Corporation (BBC) has a total of 200,000 outstanding shares which are all entitled to vote. However, 10,000 of the shares are under dispute of subject matter of pending litigations. Harold and Joaquin are BBC’s major stockholders. Harold called a meeting where stockholders representing 98,400 shares attended and voted for new members of the board of directors. Joaquin filed an election protest and claimed that there was no quorum in the meeting which shall consist of the stockholders representing a majority of the outstanding capital stock. Harold insisted that there is a quorum after excluding the 10,000 disputed shares. Is there a required quorum in the stockholders’ meeting that elected the new members of the board of directors? Explain.
Justin opened a peso savings account with the Ozzy Pay Bank (OPB) where he deposited his earnings. In 2024, Justin went to OPB to verify his account. The OPB showed to Justin the transaction history and informed that he had only PHP 100.00 remaining balance after a series of withdrawals. Justin denied the transactions and claimed that his signatures appearing on the withdrawal slips in the sum of PHP 3,000,000.00 were forged. The investigation revealed that an impostor forged the signature on the withdrawal slip sand delivered the amounts to his conspirator who opened a peso savings account with OPB using the funds as initial deposit. Aggrieved, Justin filed a complain for sum of money against OPB and alleged that it was negligent in allowing the unauthorized withdrawals. Meantime, the trial court directed the OPB to produce the bank records of the conspirotr. The OPB refused contending that the conspirator’s bank account is not the subject of litigation. Did the OPB validly refuse to disclose the conspirator’s bank records? Explain.
Flavio obtained from Safe Assurance Corporation (SAC) through its agent Laureen, a fire insurance policy over his residential house for a period of one year from August 25, 2024 to August 24, 2025. Flavio delivered on August 26, 2024 a check representing premium payment to Laureen who then issued an acknowledgement receipt. On August 27, 2024, a fire completely razed Flavio’s house. Oblivious of the incident, Laureen deposited the check on August 28, 2024 to SAC’s bank account and was credited on the same day. Thereafter, Flavio filed against SAC an insurance claim. However, SAC denied the claim and argued that there was no payment of premium yet to make the insurance policy effective at the time of loss. SAC explained that it received the premium payment only on August 28, 2024 or after the fire occurred on August 27, 2024. Is there a valid and binding insurance contract between SAC and Flavio? Explain.
Sierra Electronics Inc. (SEI) has an outstanding capital stock consisting of 100 common shares and 100 non-voting preferred shares. The common shares are held by Filipino citizens while the preferred shares are held by foreigners. SEI planned to buy real property and establish manufacturing plant in the Philippines. May the SEI own land in the Philippines? Explain.
The City Treasurer served to Luminous Star Corporation (LSC) a Notice of Assessment (NOA) for basic local business taxes (LBT) in the amount of PHP900,000.00 exclusive of interest and penalties. LSC filed a protest before the City Treasurer but was denied. LSC appealed tot he Metropolitan Trial Court (MeTC) and prayed for a writ of preliminary injuction to prevent the collection of assessed taxes. The City Treasurer opposed the application for injunctive relief and contended that the courts cannot enjoin the collection of taxes. May the MeTC issue an injunctive relief against the City Treasurer from collecting local taxes?
On August 23, 2024, Topaz Gems Industries (TGI) filed witht he Bureau of Internal Revenue (BIR) an administrative claim for refund of overpaid final withholding tax on dividends paid in 2023. On August 28, 2024, TGI field a judicial claim for refund before the Court of Tax Appeals (CTA). The BIR opposed the judicial claim for refund and contended that the CTA lacks jurisdiction over the case. The BIR added that the judicial claim was premature having been filed without prior resolution of the administrative claim. Does the CTA have jurisdiction over the judicial claim for refund? Explain.
Fritzie Presley Inc. (FPI) is a domestic corporation engaged in Value Added Tax (VAT) zero0rated transactons. In the second quarter of 2022, the input taxes of FPI from zero-rated sales amounted to PHP 9,811,152.02. The accountant of FPI advised to refund the input taxes and not to offset it with output taxes. On Jully 10, 2023, FPI filed a claim to refund the input taxes before the Bureau of Internal Revenue (BIR) but was denied. FPI elevated the case to the Court of Tax Appeals (CTA). Meantime, the BIR’s assessment against FPI for deficiency output VAT for the second quarter of 2022 in the amount of PHP8,501,355.53 became final and executory. After trial, the CTA granted FPI’s claim for refund but only for PHP 1,309,796.49 representing the difference between the excess nput taxes and deficiency output taxes. The CTA held that since FPI has deficiency taxes, and only the balance should be allowed for refund. On the other hand, FPI argues that the taxpayer-claimant has the option to charge the input taxes from zero-rated sales against the output taxes. May the CTA offset the input taxes against deficiency output taxes even without the taxpayer-claimant choosing this option? Explain.
The Court of Tax Appeals (CTA) acquitted Stephen in a criminal case for non-filing of Annual Income Tax Return (ITR) under Section 255 of the Tax Code. The CTA ruled that the prosecution filed to prove Stephen’s guilt. However, the CTA imposed upon Stephen civil liability for deficiency income tax arising from the non-filing of ITR. Stephen questioned the civil aspect of the case and argued that his acquittal in the criminal case exonerated him from any civil liability arising from the offense. May the CTA impose civil liability to pay taxes upon Stephen despite his acquittal in the criminal case? Explain.
On June 30, 2023, the Commissioner of Internal Revenue (CIR) served a Letter of Authority (LOA) to Waldolf Weston Corporation (WWC). The LOA authorized Revenue Officer (RO) Arjun and Group Supervisor (GS) Simone to examine WWC’s accounting books and records for the taxable year 2021. Thereafter, WWC received a Memorandum-Referral Letter signed by Revenue District Officer (RDO) Desmond authorizing RO Valerie and GS Warren to continue the audit investigation. The memorandum noted that RO Arjun and GS Simone were already reassigned to another district office. After proper issuance of the Notice of Discrepancy and Preliminary Assessment Notice, RO Valerie and GS Warren jointly recommended that the CIR issue a Final Assessment Notice (FAN) against WWC because it had unreported gain subject to income tax for 2021. The CIR adopted the recommendation and served a FAN upon WWC. Aggrieved, WWC challenged the validity of the Memorandum-Referral Letter on the ground that it is not equivalent to a LOA. Is the Memorandum-Referral Letter valid to examine WWC’s accounting books and records? Explain.
2024 BAR EXAMINATIONSPOLITICAL AND PUBLIC INTERNATION LAWSEPTEMBER 8, 20248:00 A.M – 12 NOON
The Senate conducted investigations on how to strengthen the efforts of the government against fugitives from justice after the prominent personalities covertly left the country to escape prosecution. The Senate invited Winston as a resource person. Winston is a notorious drug dealer who managed to avoid his warrants of arrest and hold departure orders. At the hearing, the Senators asked Winston about the modus operandi and the names of immigration officers who helped him escape. Yet, Winston responded: “I will leave it to the Senate to find out the information about these immigration officers.” Dissatisfied, the Senators immediately cited Winston in contempt and ordered his detention until he answers the question. Did the Senate lawfully cite Winston in contempt? Explain.
Rocco, a lawyer, filed a petition for mandamus to compel the President of the Philippines to defend the West Philippine Sea against Chinese invasion. Rocco alleged that the President has a ministerial duty to protect the national territory. Rocco likewise asked the President to bring the territorial dispute before the United Nations Security Council after diplomatic protests proved futile. Will the petition for mandamus prosper? Explain.
The Zuri Republic and Wanda Republic are members of the United Nations Convention on the Law of the Sea (UNCLOS). In 2024, the Permanent Court of Arbitration rejected Zuri Republic‘s claim over the entire South Wrigley Sea and declared it as part of Wanda Republic‘s exclusive economic zone. However, Zuri Republic refused to recognize the arbitral award and continued its reclamation activities. Thereafter, Xena Republic, a non-UNCLOS state, filed a protest against Zuri Republic before the United Nations Security Council to respect the arbitral award and to stop reclamation efforts that destroy the fragile ecosystem. The Zuri Republic then challenged the legal standing of Xena Republic and agreed that only state parties of the UNCLOS can enforce the arbitral award. Does Xena Republic have legal standing to initiate the protest? Explain.
In the 2022 elections, Pho Goh, 27 years old, won as provincial governor. Pho Goh took his oath of office and discharged his duties. Maxwell, a registered voter, filed a petition for quo warranto against Pho Goh on the ground that he cannot hold the Office of the Provincial Governor. Maxwell alleged that Pho Goh was born in Vietnam and submitted his Vietnamese passport as conclusive evidence that he is not a Filipino citizen. In contrast, Pho Goh opposed the petition and presented his belatedly registered birth certificate stating that his mother is a natural born citizen of the Philippines. Is Maxwell correct that Pho Goh cannot hold the Office of the Provincial Governor? Explain.
Omar, an Iranian national, was admitted in the Philippines as a refugee. After more than 10 years in the Philippines, Omar filed a petition for naturalization as a Filipino citizen. The trial court found that Omar possessed all the qualifications and none of the disqualifications to become a Filipino citizen. However, the Office of the Solicitor General opposed the petition because the laws of Iran do not grant reciprocal right to Filipinos to become naturalized citizens. Will the lack of the reciprocity requirement bar Omar’s application for naturalization? Explain.
The Congress passed a law prohibiting the “transmission of commercial electronic communications with the use of a computer system which seeks to advertise, sell, or offer products and services without prior consent of the recipient.” The digital marketplace Buy and Ship Online (BSO) questioned the constitutionality of the law for being a class legislation because it specifically targets online businesses. The BSO added that the measure must be tested using the “strict scrutiny test” because it interferes with the exercise of fundamental rights since commercial advertisements are forms of free speech and expression. In contrast, the Office of the Solicitor General invoked the “rational basis test” and argued that the State has a legitimate interest to protect the public from unsolicited advertisements. Considering the levels of juridical scrutiny, what is the proper test to determine the constitutionality of the subject law? Explain.
Andrew, a long-time advocate of women’s rights, is a bona fide member of the BINI-bini Party registered with the Commission of Elections under the party-list system. BINI-bini Party seeks to represent the women sector in the House of Representatives. In the 2022 elections, BINI-bini Party secured one seat, and its first nominee, Andrew, took his oath of office and started to serve his term as a Member of the House of Representatives. However, an electoral protest was filed against Andrew on the ground that he is not qualified to represent the women sector because he is a male. Is Andrew qualified to represent BINI-bini Party in the House of Representatives? Explain.
The Regional Trial Court issued warrants of arrest against Mayor Leroy for charges of tax evasion and graft and corruption. Mayor Leroy secretly left the country and sought refuge in Essex Republic. The Philippines requested from Essex Republic the surrender of Mayor Leroy pursuant to their extradition treaty. The Essex Republic conducted judicial investigation and established prima facie case against Mayor Leroy. The Essex Republic, through its court, issued a warrant of surrender. Mayor Leroy questioned the legality of the warrant of surrender and argued that it violated the right of non-refoulment. Is the warrant of surrender valid? Explain.
Fidel, a government official, was charged with and convicted of three separate crimes: (1) receiving a gift in connection with government contracts where he intervened in his official capacity under Section 3(b) of Republic Act No. 3019 or the Anti-Graft and Corrupt Practices Act; (2) acceptance of gift in connection with transactions affected by the functions of his office under Section 7(d) of the Republic Act No. 6713 or the Code of Conduct and Ethical Standards for Public Officials and Employees; and (3) direct bribery under Article 210 of the Revised Penal Code. On appeal, Fidel invoked a violation of his right against double jeopardy when the trial court convicted him of three separate crimes. Is Fidel’s contention that his right against double jeopardy was violated correct? Explain.
Politico Film Productions (PFP) conceptualized a mockumentary called “Covidubidapdap” which will detail the poor government response during the pandemic. The Department of Health (DOH) Secretary was scared that he would be portrayed as a lazy and incompetent public officer. Thus, the DOH Secretary warned PFP that he would not approve the use or exhibition of his name or image in the film. Nevertheless, PFP began the production of the mockumentary and used the name and image of the DOH Secretary. Aggrieved, the DOH Secretary applied for injunction against PFP invoking his right to privacy. Is there a violation of the DOH Secretary’s right to privacy? Explain.
The members of the Barangay Council wanted to make the yuletide celebrations of their constituents more festive. Accordingly, the Barangay Council adopted a resolution authorizing the solicitation of funds from private individuals to build a seven-meter tall statue of “Rudolph the Red-Nosed Reindeer” in the plaza in front of the basilica. The residents from other barangays questioned the resolution for alleged violation of Section 5, Article III of the 1987 Constitution which states that “[n]o law shall be made respecting an establishment of religion, or prohibiting the free exercise thereof.” Is the barangay resolution invalid for violation of the non-establishment of religion clause? Explain.
Gabby won as Senator in the May 2022 election for a term of six years. Upon proclamation, Gabby took his oath of office before the Senate President in open session and assumed office at the start of his term. In August 2022, Senator Gabby resigned for personal reasons. In January 2023, Congress enacted a law merging two existing government agencies with a Presidential appointee as head of office. In August 2023, the President appointed former Senator Gabby as head of the merged government agencies. Is former Senator Gabby’s appointment as head of the merged government agencies valid? Explain.
In June 2024, Carina, a private citizen, filed a verified impeachment complaint against the Vice President of the Philippines for culpable violation of the Constitution and betrayal of public trust. The impeachment complaint was referred to the House of Representatives Committee on Justice. In July 2024, the House of Representatives approved the report of the Committee on Justice dismissing the impeachment complaint due to the absence of resolution or endorsement of any Member of the House of Representatives. In August 2024, a party-list representative filed a second verified impeachment complaint against the Vice President based on the same facts and grounds as the first complaint. In September 2024, the second impeachment complaint arguing that no impeachment proceeding can be initiated against the same official more than once within a period of one year. May the second impeachment complaint be dismissed for the violation of the one-year bar rule? Explain.
Under the 2020 Rules of the Senate Electoral Tribunal, any election protest against a Member of the Senate Shall be filed “within thirty (30) days after assumption office of the protestee.” Subsequently, the Senate promulgated its Internal Rules of Proceedings which shortened the period of filing the election protests “within fifteen (15) days” from assumption of office of the protestee. Is the Senate Internal Rules of Proceedings relative to election protest constitutional? Explain.
The Local Government Code allocated shares in revenue collections to local government units (LGUs) in the following manner: 23% for the provinces, 23% for the Cities, 34% for the Municipalities, and 20% for the Barangays. In 2023, the proposed General Appropriations Act (GAA) provided a different distribution scheme of revenue collections to LGUs, to wit: 25% for the provinces, 25% for the Cities, 35% for the Municipalities, and 15% for the Barangays. Congressman Macky assailed the constitutionality of this item in the proposed GAA. The House of Representative Budget Committee countered that it is within the power of Congress to enact laws to increase or decrease the just share of the LGUs in the revenues. Is the new distribution scheme in the proposed GAA lawful? Explain.
MVL, a government-owned corporation, has three Cabinet Secretaries as ex-officio members of its Board of Directors. In 2024, the MVL Board of Directors resolved to grant additional benefits to qualified corporate officers and employees. The Commission on Audit (COA) disallowed the grant of benefits because there was no prior approval of the President. However, the MVL Board of Directors invoked the alter ego principle and argued that the President deemed approved the benefits when the three Cabinet Secretaries, as ex-officio board members, voted in favor of the resolution. Is the COA correct in disallowing the grant of benefits? Explain.
Kenneth had a romantic relationship with Mabel, a 14-year old minor. Kenneth and Mabel constantly exchanged pictures through online messaging applications. One day, Kenneth rented a laptop in a computer shop and had an online chat and videocall with Mabel. Kenneth left the shop but forgot to logout his social media account. The next customer read the sensual conversations between Kenneth and Mabel as well as their nude videos and photos. The customer reported the matter to the police. Accordingly, Kenneth was charged with violation of Republic Act No. 11930 or the Anti-Online Sexual Abuse or Exploitation of Children and Anti-Child Sexual Abuse or Exploitation Materials. At the trial, Kenneth objected to the admissibility of the pictures and videos as evidence for having been obtained against his right to privacy. Are the pictures and videos admissible in evidence to prosecute Kenneth of the criminal offense? Explain.
The sovereign Republic of Handskaland, represented by Ambassador Hansen, entered into a five-year contract with Hardee Services Corporation (HSC) for the maintenance of and repair of the electrical facilities of its embassy in the Philippines. Ambassador Hansen pre-terminated the agreement after discovering HSC’s faulty electrical works. Aggrieved, HSC filed against the Republic of Handskaland and Ambassador Hansen a complaint for damages. HSC argued that Republic of Handskaland and Ambassador Hansen waived their immunity from suit when they entered into a contract. Did the Republic of Handskaland and Ambassador Hansen waive their immunity from suit? Explain.
The Regional Trial Court (RTC) convicted Luciano of illegal sale of dangerous drugs. Luciano sought reconsideration. The RTC reversed its judgement of conviction and acquitted Luciano of the crime, thus:
ORDER
For the resolution is the accused’s motion for reconsideration assailing his conviction for the offense of illegal sale of dangerous drugs. The prosecution did not file any comment. Hence, the motion is now submitted for resolution.
After perusal of the motion for reconsideration, the Court finds merit that the prosecution miserably failed to overcome the accused’s presumption of innocence.
For this reason, the motion for reconsideration is GRANTED. The accused is ACQUITTED in the criminal case for illegal sale of dangerous drugs.
The Office of the Solicitor General (OSG) questioned the order of acquittal before the Court of Appeals. The OSG explained that the RTC failed to comply with the constitutional requirements in rendering a valid judgement amounting to grave abuse of discretion. On the other hand, Luciano invoked his right against double jeopardy and argued that the order of acquittal is already final and not subject to review. Is the RTC guilty of grave abuse of discretion when it rendered the order of acquittal? Explain.
The Congress enacted the “Battered Partner Law” which amended Republic Act No. 9262 or the Anti-Violence Against Women and Their Children Act. The amendatory law changed the term “women” to “partners” to make it gender neutral and to recognize husbands and boyfriends as victims of domestic violence. The amendatory law likewise included LGBTQ+ members who are victims of domestic abuse within the coverage of the law. However, several groups and activists challenged the constitutionality of the amendatory law on the ground that it blurs the substantial distinction between men and women. As a “practice-ready” and “potentially capable” lawyer, will you support the validity of the amendatory law under the equal protection clause? Explain.
1. Christopher, a citizen of the United States (US), married Lila, a Filipino, in Dallas, Texas. Their marriage was later terminated by a divorce decree issued by a US court. At the time, their child, Amado, was only 18 months old. Lila and Christopher returned to the Philippines and settled in El Nido, Palawan. Christopher allegedly promised to give support to Amado in the amount of US$1,000 per month, but he never did. Subsequently, Christoper also settled in Cebu where he cohabited with another Filipino woman. When Lila learned of the whereabouts of Christopher, she filed a complaint against him for violation of the Anti-Violence Against Women and Their Children Act for his refusal to support Amado. Lila also invoked Article 195 of the Family Code, which provides for those who are obliged to support each other. She argued that notwithstanding their divorce, Christopher is not excused from complying with his obligation to support Amado. Is Lila correct in invoking Article 195 of the Family Code? Explain.
2. Nida and Deogracias were college sweethearts who had a child together named Mikael. When Mikael was three years old, Nida and Deogracias both died in a car accident while still planning their future wedding. Mikael was then out in the care of the unmarried sister of Nida, Nina, who officially adopted Mikael was left to live with his grandmother, Aurora, in the Philippines. In the US, Nina bore an illegitimate child, Maricel, from her affair with a married man. When Maricel was 22 years old, Aurora died so Nina came home to the Philippines with Maricel for the funeral. Maricel finally met Mikael who is now 28 years old. The two of them fell in love and planned to get married. Nina objected, saying that their marriage was prohibited by law. Can Maricel and Mikael validly get married? Explain your answer.
3. In 1981, JR married then 16-year-old Inka in a civil ceremony solemnized by the Mayor in their hometown. The couple lived together until 2007 when JR confessed to having an affair with Elena. Inka later discovered that JR and Elena got married in 1995. Inka thus filed a criminal complaint against JR for Bigamy. In his defense, JR insisted that he could not be held criminally liable for Bigamy because his marriage with Inka in 1981 is void for lack of a valid marriage license, while his marriage with Elena is void for lack of a marriage ceremony. Meanwhile, Elena claimed that even prior to the Bigamy case, she already filed a petition for nullity of marriage before the Regional Trial Court (RTC) of Quezon City sometime in 2007 after learning about the marriage between JR and Inka. The RTC later declared the marriage of JR and Elena as void for being bigamous, and the ruling attained finality due to lack of appeal. Does JR have a valid defense in the Bigamy case? Decide with reasons.
4. Santiago and Lucia started to live together as common-law husband and wife in 2000. In the course of their relationship, they acquired several properties which included a 600-square meter house and lot in Quezon City, a condominium unit in Taguig City, a four-hectare rest house in Batangas, a Range Rover vehicle, Lexus RX350 car, and an Indian Chief Bobber motorcycle. The purchase were mainly due to the successful salon and water refilling business of Lucia. Unfortunately, the records of these purchases were destroyed during Typhoon Ondoy in 2009. In 2023, their relationship turned sour and Lucia now wants to part ways with Santiago. However, there is a disagreement on how to divide their properties. Lucia filed a case in the Family Court, claiming that she is entitled to all of the properties. Is Lucia correct? Explain briefly.
5. Melchor, a Filipino, met and married Amy, Parisian model in France. They had two daughters named Anna and Karenina. Eventually, they decided t settle in the Philippines. However, unknown to his family, Melchor was having an affair with another Parisian model, Genevieve. He arranged for Genevieve to reside in the Philippines and bought her a house in North Greenhills so that they could continue with their illicit affair. Juliette was born out of their affair. Juliette grew up not knowing that she was the illegitimate daughter if Melchor until the death of the latter. Upon discovering that her father had a legitimate family, Juliette sought to be recognized as an illegitimate daughter of Melchor since she had always longed for sisters. In her action to prove her illegitimate filiation, Juliette presented her birth certificate signed by Melchor, as well as photographs of her with Melchor in their home in North Greenhills. Amy, Anna, and Karenina opposed the action of Juliette. Will the action of Juliette prosper? Explain your answer.
6. With the express consent of their respective parents, Jaime and Cathy, both 21 years old, decided to get married in a destination wedding in Boracay on Valentine’s Day 2022. The older brother and sister-in-law of Jaime were on their way home from the wedding on board a boat when it sank, leaving their 8-year-old son, Cesar, orphaned. Grief-stricken, Jaime and Cathy now want to adopt Cesar and raise him as their own. Are they qualified under the law to adopt Cesar? Explain your answer.
7. Anita is an Anita is an entertainer in Empyrea, a men’s club and lounge. One evening, Nilly, the exclusive patron of Anita, asked her out on a date outside of Empyrea. After spending the night together, Billy got Anita pregnant. A year after giving birth to Marisol and despite the vehement opposition of Billy, Anita went back to her previous job in Empyrea to support her child. Anita was able to provide a house, a nanny, and other necessities for Marisol. Billy, however, insisted that Anita no longer needed to work if she and Marisol stayed with him as he could provide for them. Since Anita refused to live with Billy, the latter filed a petition for custody of Marisol. Anita contended that illegitimate children are automatically under the sole custody and parental authority of the mother. On the other hand, Billy alleged that Anita is unfit to take care of Marisol given her line of work. If you are the judge, how will you decide the petition? Explain.
8. Niccolo and his girlfriend Meann were classmates in medical school. When they finished their studies and started earning, they decided to invest in a condominium unit together which they hoped to lease out. Since Niccolo came from a rich family and was still receiving an allowance from his parents, the couple decided that Niccolo would shell out 2/3 (P10 million) of the P15 million purchase price, while Meann would contribute 1/3 (P5 million). They asked a mutual friend who was a law student to draw up a contract which reflected the mentioned interests. The contract also had a provision that their shares in the benefits as well as the chargers affecting the property would be equal. They then found a long-term tenant who rented the property for P30,000 a month. Unfortunately, Niccolo and Meann broke up and are now quarreling over their respective shares in the rental income. Niccolo insists that he should get P20,000 or 2/3 of the monthly income while Meann claims that it should be P15,000 each. Who is correct? Explain your answer.
9. Lani and Rufino died leaving four children, two of whom are Arturo and Bugoy. The heirs signed a document selling half of the property of their parents to their friend, Honorato. One of the remaining quarters was occupied by Ildefonso and Bienvenido, the children of Arturo, while the other quarter was sold by Bugoy to Spouses Cruz by virtue of a deed of sale. Shortly after, the Spouses Cruz filed an ejectment case against Ildefonso and Bienvenido for the ¼ portion of the subject property that they purchased. On the other hand, Bienvenido filed a complaint for recovery of ownership, quieting of title, and annulment of deed of sale against the Spouses Cruz. He alleged that the deed of sale is void since Bugoy is not the true and real owner of the subject property, which originally belonged to the estate of Rufino. On the other hand, the Spouses Cruz argued that Bienvenido availed of the wrong remedy, and claimed that the heirs had already agreed to divide the property among themselves when they allowed a portion of the property to be occupied by the heirs of Arturo. Will the complaint of Bienvenido prosper? Discuss.
10. Marvic inherited a piece of land and decided to farm it. The land was bordered on all sides by properties belonging to other owners. The surrounding property closest to the public highway is owned by Renato. Willing to pay compensation, Marvic talked to Renato about granting him access to the highway but Renato refused. Renato reasoned that there is another access point for Marvic through a dirt road that connects to the public highway without passing through his property. Marvic argued that this is not convenient as it is twice the distance, circuitous, and unlit. As they could not reach an agreement, Marvic filed a complaint for easement of right of way against Renato. Should a compulsory right of way be granted in favor of Marvic? Explain your answer.
11. Alejandro was a married airline executive who had a clandestine love affair with a pilot, Francisca. Six years later, Francisca ended the affair amicably because she wanted to get married herself and start a family. She soon met David, another pilot, and they got engaged. On the occasion of the impending nuptials of Francisca and David, Alejandro, feeling nostalgic and generous, donated a valuable painting (exclusively his own and not conjugal) to Francisca. Upon learning of the donation, the wife of Alejandro, who knew of the romantic past between the two, filed a complaint to have the donation nullified. Is the donation valid, void, or voidable? Explain your answer.
12. Cora, who was married to Wenceslao, executed a last will and testament where she gave all of her exclusive properties to her niece, Alma. Cora later died without issue. Wenceslao subsequently opposed the probate of her will on the ground that he was deprived of his legitime. Is Wenceslao correct? Explain your answer.
13. Felicia and Rocky met at a training convention and subsequently became lovers. They had children named Enrico and Euriz. One night while on his way home, Rocky met his end when his car collided with a speeding 15-wheeler truck along C-5 road. A year later, the father of Rocky, Hilario, suffered a brain aneurysm and died. In the settlement of the estate of Hilario, Enrico and Euriz claimed an interest on the estate of their grandfather. They argued that as the biological children of Rocky, they are entitled to inherit from their grandparents by right of representation. The legitime heirs of Hilario vehemently opposed the claim on the ground that Enrico and Euriz are barred from inheriting from the ascendants of Rocky. Are the legitimate heirs of Hilario correct? Explain your answer.
14. The promissory note between Jhosep and Mario states: “Jhosep agrees and understands that upon failure on his part to pay the amount of One Hundred Thousand Pesos (P100,000) on December 31, 2015, he agrees to pay the sum equivalent to six percent (6%) interest monthly from the date of default until the entire obligation is fully paid for.” Jhosep failed to pay on the stipulated date. On March 1, 2016, Mario filed a collection suit against Jhosep. In his defense, Jhosep stated that he was not yet in legal delay, as Mario had not made a demand against him. Is the contention of Jhosep correct? Explain.
15. On September 6, 2015, Mauro purchased from Antonio a motorcycle, as evidenced by a deed of sale. The purchase price was P88,700, with a down payment of P35,000, and the balance payable in 12 monthly installments, due and payable on the first day of each month starting December 1, 2015. As security for the balance, Mauro executed a chattel mortgage over the said motorcycle in favor of Antonio. However, Mauro failed to pay the monthly installments. After Antonio extrajudicially demanded payment for the balance, Mauro returned the property to Antonio. Is the return of the motorcycle equivalent to dación en pago? Discuss.
16. Nardo leased a house and lot from Jericho. Subsequently, Nardo subleased this property to Paquito. The contract of sublease contained a stipulation to the effect that the rental payments of Paquito should be pad directly to Jericho, the principal lessor. Is the stipulation pour autrui? Explain.
17. On October 10, 2010, Joaquin executed a deed of absolute sale in favor of Juancho involving the parcel of land of Joaquin situated in Surigao del Sur. Juancho did not register the deed of absolute sale with the Register of Deeds of Surigao del Sur. On October 30, 2010, Joaquin also executed another deed of absolute sale over the same property in favor of Martina who had no knowledge of the prior sale between Joaquin and Juancho. Neither Juancho nor Martina took possession of the parcel of land subject of the two sales. However, after learning of the October 10, 2010 sale, Martina immediately caused the registration of her October 30, 2010 deed of absolute sale with the Register of Deeds of Surigao del Sur. Will Martina be able to invoke the principle “first in time, stronger in right” as against Juancho? Discuss.
18. Ibrahim borrowed money from Fidel, as evidenced by a loan agreement. Ibrahim used as collateral for the loan his parcel of land situated in Maria Luisa Estate Park in Cebu City. Under the terms of their agreement, Fidel has the exclusive and irrevocable option to buy the collateral for the amount of P100 million, inclusive of the borrowed amount of P50 million and interest therein at 6% per annum. When the loan matured, Ibrahim was unable to pay his loan obligation. Ibrahim, however, refused to sell his collateral to Fidel. May Fidel compel Ibrahim to sell his collateral by exercising the option to buy under the loan agreement? Discuss your answer.
19. Luna owns a passenger bus driven by her employee, Tomas. One day, the passenger bus collided with a car driven by Graciano. Graciano then filed a complaint for damages based on quasi-delict against Luna. He likewise instituted a criminal action against Tomas, but failed to reserve his right to institute a separate civil action against damages in the said criminal case. Luna filed a motion with the trial court for the deferment of trial, arguing that Tomas must be impleaded in the civil case because he committed the negligent act that caused damage to Graciano. Is Luna correct? Explain.
20. Rene and Sebastian, who are bitter enemies, engaged in a gunfight. In the ensuing battle, Rene killed Sebastian with a shot to the head. In the criminal case for Murder filed against Rene, the heirs of Sebastian failed to establish funeral expenses. Is the award proper? Discuss.
1. Santos Hauling Incorporated (SHI) dismissed its drivers and helpers after discovering that they were committing anomalous transactions involving the sale of excess broilers and crates, without the knowledge and consent of SHI. The drivers and helpers filed a complaint for illegal dismissal against SHI. In its defense, SHI presented as evidence the affidavits of co-employees narrating the alleged anomalous transactions in detail. May the drivers and helpers be dismissed on the bases of these affidavits? Explain your answer.
2. Mara met Ange, Louise, and Sam at a coffee shop one afternoon. Maria promised she could send the three of them to work as bartenders in Scotland in exchange for P100,000 each. Ange, Louise, and Sam immediately agreed and gave the money to Maria. Upon receipt of the placement fees, Maria used the money to buy a luxury bag and posted it on her Instagram page. Ange, Louise, and Sam followed up on their employment in Scotland, but Maria stopped replying to them. After six months of waiting, Ange, Louise, and Sam filed a complaint for Illegal Recruitment in Large Scale against Maria. During Trial, Ange, Louise, and Sam testified and presented a certification from the Department of Migrant Workers stating that Maria was neither licensed nor authorized to recruit people for employment. On the other hand, Maria claimed that she was not the one who recruited them but a certain Rashid, the president of the placement agency where Maria supposedly worked. Is Maria guilty of Illegal Recruitment in Large Scale? Explain.
3. Lipad Pinoy (LP), a licensed local recruitment agency, deployed Mutya for its principal, Alab Construction (AC), for a two-year project in Dubai. Mutya had been on the job for one year when, for unknown reasons, AC and LP terminated their agency agreement. Thereafter, AC failed to pay the salary of Mutya. Upon her return to the Philippines, Mutya sued both LP and AC for unpaid salaries and damages. May LP be held liable together with AC? Explain.
4. Bangko Norte (BN) implemented an “Exogamy Policy”, which prohibits employees from marrying their co-employees. Specifically, the policy states that when two of its employees marry each other, one of them must sever his or her employment immediately. Clara, who was fired as an account specialist, married her co-worker Ibarra, a loan specialist. Subsequently, BN terminated the employment of Clara but retained Ibarra. Clara argued that the policy should not apply to her since she was employed prior to its effectivity, and that said policy violates the Labor Code. She also pointed out that BN did not explain why it was her, and not Ibarra, whose employment was terminated. Since BN refused to reinstate her, Clara filed a complaint for illegal dismissal. Will the complaint of Clara prosper? Discuss
5. In computing the 13th month pay of its employees, Liwayway Company (LC) includes as basis not only the regular base pay but also the cash value of unused vacation and sick leaves. LC had been implementing this method for two years when it suddenly announced that the method was erroneous and would therefore be discontinued. May LC lawfully discontinue using this method? Explain.
6. Roman, an employee of Baltazar Company (BC), was reported to have fallen asleep during work hours and that he smelled of marijuana. BC coordinated with Bibo Health Clinic, a facility accredited by the Department of Health, to conduct random drug testing on its employees. Roman tested positive during both the screening and confirmatory tests. BC asked Roman to explain why he should not be sanctioned and dismissed. Roman denied that he used drugs and claimed that a colleague who bore a grudge merely framed him. Unsatisfied with his explanation, BC sent Roman a notice of termination. Was the dismissal of Roman valid? Explain briefly.
7. Arnel, a 55-year-old seafarer who worked on board different foreign vessels, went to the office of the Social Security System (SSS) to avail of his retirement benefits. However, he found out that his contribution had not been paid by his principal employer, Pancho Lines (PL). When Arnel demanded an explanation from PL, the latter replied that it was not obligated to cover his SSS membership since he was hired abroad and covered by another insurance provider. Is PL correct? Discuss your answer.
8. Araro Federation applied for registration as a federation in the agricultural sector. It has under its membership a mix of five rank-and-file unions and five supervisory unions. One of the rank-and-file unions and one of the supervisory unions both belong to the same establishment, Ani Corporation (AC). AC opposed the application for registration citing the legal prohibition against the commingling of rank-and-file and supervisory employees. Is the opposition of AC meritorious? Explain briefly.
9. Lazara Corporation (LC) and Lazara Employees Union (LEU) forged a collective bargaining agreement (CBA). During the freedom period, a certification election was conducted where LEU lost to Samahan ng Manggagawa sa Lazara (SML), a rival union in the same establishment. SML then sent a letter to LC demanding for renegotiation of the existing CBA. LC refused to renegotiate the CBA claiming its validity for two more years. SML filed a notice of strike against LC on the ground of Unfair Labor Practice for the alleged refusal of the latter to comply with its duty to bargain collectively. Is the notice to strike meritorious? Explain briefly.
10. Adarna Manufacturing Company (AMC) and Adarna Employees Union (AEU) entered into collective bargaining negotiations but reached an impasse. AEU then filed a notice of strike before the National Conciliation and Mediation Board, which immediately conducted conciliation meetings to avert the strike. Fifteen days after the filing of the notice, and despite the conciliation proceedings. AEU staged a strike with the participation of 50% of its members. Is the strike legal? Briefly explain.
11. In 2011, Amer and Raj worked as welders on board the barges of Magiting Shipping Company (MSC), which later changed its corporate name to Perlas Corporation (PC). In 2018, PC verbally dismissed Amer and Raj from employment. Thus, they jointly filed a complaint for illegal dismissal against PC, which countered that it already had a separate and distinct personality from MSC. It also alleged that both complainants were not its regular employees as they were merely helpers brought in by its own regular employees on certain occasions when urgent repairs were required for its barges. The Labor Arbiter (LA) held that there was an employer-employee relationship between the parties based on on Article 295 [280] of the Labor Code since Amer and Raj: 1) were engaged to perform activities which are usually necessary or desirable in the usual business or trade of PC; and 2) have rendered at least one year of service. Was the LA correct in using Article 295 [280] as the basis? Explain briefly.
12. On May 15, 2022, Marina International Shipping (MIS) hired Felipe as a bosun on board its vessel for a period of nine months. On July 30, 2022, Felipe joined his vessel of assignment. On October 31, 2022, he was repatriated due to medical reasons and was immediately referred by MIS to its company-designated physician for treatment and monitoring. On May 31, 2023, the company-designated physician pronounced Felipe fit to resume sea duties. Is MIS obligated to rehire Felipe? Explain briefly.
13. Sampaguita University (SU) hired Farah as Instructor I in the College of Education on a contractual or part-time basis beginning the first semester of school year 2015-2016. In 2018, SU appointed Farah as Instructor II. SU informed her that she will attain regular status on the condition that she obtain a master’s degree by May 31, 2022, otherwise, her employment will either be terminated or considered as contractual or part-time. When Farah failed to secure the required educational qualification within the allotted time, SU classified her as a part time-time faculty effective June 1, 2022. On April 30, 2023, SU notified Farah that they will no longer be renewing or extending her contract as part-time faculty upon its expiration. Farah thus filed a complaint for illegal dismissal. Will her complaint prosper? Discuss your answer.
14. Eduardo owns a licensed company that supplies janitorial and messengerial aides to various businesses, including Gloria Restaurant (GR). The tools and supplies used by the janitors and messengers are supplied by the clients who also train the workers and monitor their performance. Their minimum wages are paid by the clients through Eduardo. After two years of working in GR, the janitors and messengers joined the union there to receive the same benefits as the directly hired employees of GR. Can the janitors and messengers legally join the union? Discuss.
15. Ulan Airlines (UA) hired Salve as a cabin crew in 2010. Due to her hard work and spotless service record, she was eventually promoted to senior purser, a position imbued with trust and confidence. In 2023, after a flight from Sydney to Manila, management received a report that Salve and other cabin crew alighted from the aircraft with two cups of instant noodles and a can of soda, which were part of the in-flight provisions for passengers. The items were confiscated and the cabin crew were required to explain why those items were in their possession. In her written explanation, Salve claimed that the cups of instant noodles were purchased with her own money and that it was another flight attendant who admitted to taking the can of soda. After investigation, UA still terminated her employment on the grounds of serious misconduct and loss of trust and confidence. Was Salve validly dismissed? Discuss briefly.
16. Rajah Management (RM), the authorized local placement agency of Sultan Group (SG), posted a job listing for project manager based in Qatar. Silang applied for the position. After RM forwarded the documents of Silang to SG for the processing of her work visa, SG sent a tourist visa notice instead of a work visa. Six months into her two-year contract, Silang was repatriated by SG with instructions to apply anew for deployment under a work visa. RM directed Silang to undergo a pre-employment medical examination. When it was discovered that she has uncontrolled diabetes, SG terminated her employment. Thus, Silang filed a complaint for illegal dismissal against SG and RM. SG argued that the disease of Silang was a valid cause for dismissal. Is the contention of SG correct? Discuss.
17. University of San Lazaro (USL) hired Dolores to work as a credit and collection officer in its accounting department. Based on its audit reports, USL found several anomalous transactions within the accounting department, resulting in a shortage of P2 million. Dolores went on leave during the audit, but later tendered her resignation. After its investigation USL terminated the employment of Dolores and filed a criminal case against her. Dolores subsequently filed a complaint for illegal dismissal against USL, which claimed that Dolores had voluntarily resigned. Will the complaint of Dolores prosper? Explain.
18. In 2012, Magbanua Hotel (MH) hired Josefa and assigned her to the food and beverage department. For six consecutive years, Josefa worked five days a week. However, in 2018, MH, suddenly and without explanation, reduced the regular workdays of Josefa to two days per week, resulting in the reduction of her take-home pay. Josefa this filed a complaint for constructive dismissal. In belying her claim, MH insisted that there could be no constructive dismissal because Josefa still continued reporting for work even during the pendency of the case. Was Josefa constructively dismissed? Decide with reasons.
19. Consolacion in a Hong Kong-based, Filipino flight attendant of Hiroshi Airlines (HA), a Japanese airline licensed to do business in the Philippines. She was dismissed from employment as she was accused of stealing wine bottles and cheese from the Melbourne-bound aircraft of HA. Consolacion then instituted a complaint for illegal dismissal and money claims against HA with the Labor Arbiter (LA). In its defense, HA asserted that the LA had no jurisdiction to hear the dispute as the incident occurred in a foreign jurisdiction and involved a foreign entity. Does the LA have jurisdiction over the case? Explain.
20. The employees of Bonifacio Memorial Hospital (BMH), who are union officers and members of BMH Nurses Association, stated a strike to protest the failure of BMH to provide them with adequate personal protective equipment and sufficient hazard pay. What legal remedy can BMH avail of to immediately enjoin the strike as well as ensure the proper protection of the life and health of its patients? Explain your answer.
Live Webinar 1 & 2: BIR Tax Compliance for VAT Entity
Live Webinar: Returns and Reports Preparation under eBIR Forms and Online Submissions
Onsite Training: PEZA Registered Entities: Taxation and Basic Reports
Live Webinar on Ph Payroll Computations and Taxation
Live Webinar: Withholding Taxes, Subjects & Applications
Onsite Training: Basic Bookkeeping for Non-Accountants
Onsite Seminar: BIR Examination: Their Procedures and Our Defenses
Live Webinar: Winning BIR Tax Assessments Series: Process, Remedies & Writing Effective Protest
Onsite Training: Basic Business Accounting & BIR Compliance VAT Entity
Live Webinar: Value Added Tax: In and Out
Revenue Memorandum Circular No. 34-2025
Revenue Memorandum Circular No. 32-2025
Republic Act No. 12079
2025 Filing of Annual Financial Statements and General Information Sheet
Revenue Regulations No. 012-2025
Δ
Phone : (02) 5310-2239
Mobile : Smart: 0939-916-2952 Globe: 0967-497-4989
Email : info(@)taxacctgcenter.ph
© Tax and Accounting Center 2025. All Rights Reserved