Take the Commercial Law Review MCQs – Set 2 Quiz.
Commercial Law Review - Set 2 [25 items]
Question 1 |
A | Travel agencies as such are common carriers. |
B | It is possible for a customs broker to be a common carrier if it transports goods for a fee. |
C | To be a common carrier, an entity must have a certificate of public convenience. |
D | Common carriers are required to cater to every member of the public. |
Question 2 |
A | none of the choices |
B | if the insurer waives the premium in the meantime. |
C | if the insured deposits a check. |
D | if there is an agreement to the contrary. |
Question 3 |
A | V does not have to perform any of the above acts if his business is not registered. |
B | V does not have to perform any of the above because his sale is in the ordinary course of business. |
C | V must notify his creditors before selling all the contents of the truck. |
D | V must prepare an affidavit listing his creditors, the amount of their credits and their due dates. |
Question 4 |
A | No. 1 is false; No. 2 is true. |
B | Both are true. |
C | No. 1 is true; No. 2 is false. |
D | Both are false. |
Question 5 |
[CLR0218] No. 1 – A bank may be may lend to a single borrower more than fifteen (15%) of the bank’s unimpaired capital. No. 2 – A deposit in a bank in foreign currency may be inquired into provided the depositor gives his consent, orally or in writing.
A | Both are false. |
B | No. 1 is true; no. 2 is false. |
C | Both are true. |
D | No. 1 is true; no. 2 is false. |
Question 6 |
A | there is only a duty to observe ordinary diligence. |
B | the duty of extraordinary diligence may be lessened by stipulation. |
C | the duty of extraordinary diligence of the carrier ceases. |
D | the duty of extraordinary diligence of the carrier continues for a limited period. |
Question 7 |
A | Contributory negligence of the plaintiff. |
B | The doctrine of last clear chance in case of collisions. |
C | All forms of fortuitous events; |
D | None of the choices |
Question 8 |
A | when a vessel makes a wrong maneuver in the second zone of collision. |
B | when there is no evidence as to which vessel is negligent. |
C | when there is collision. |
D | whenever a collision occurs. |
Question 9 |
[CLR0216] M mortgaged his concrete house located in a rented lot to B. The deed of mortgage which is embodied in a public instrument is denominated as a chattel mortgage.
A | The mortgage is totally void because the house is a real property. |
B | If the debt is not paid, B cannot foreclose the mortgage. |
C | The mortgage is binding even to third persons because it is in a public instrument. |
D | If the debt is not paid, B can foreclose the mortgage. |
Question 10 |
[CLR0223] Jose and his wife, Perla, opened and maintained the following accounts with Allied Bank Recto. (a) Savings deposit – P300,000; (b) Demand deposit – P400,000; (c) Time deposit - P350,000. They also have the same deposits with the same amount in Allied Bank Makati. If Allied bank becomes insolvent the Philippine Deposit Insurance Corporation will be bound to be liable to the spouses for its insurance liability equivalent to
A | six deposits. |
B | two deposits. |
C | one deposit. |
D | three deposits. |
Question 11 |
A | ends when the shipper has availed of his right of stoppage in transitu. |
B | begins upon the execution of a bill of lading. |
C | ends when the goods are lost in transit. |
D | ends when they are temporarily unloaded in transit. |
Question 12 |
[CLR0222] The distribution of dividends from capital and the acquisition of corporate shares without corporate unrestricted retained earnings is not allowed by law because of:
A | The trust fund doctrine. |
B | None of the choices |
C | The corporate opportunity theory. |
D | The corporate entity doctrine. |
Question 13 |
A | As the watchdog of government funds. |
B | As fiscal agent of the Philippine government. |
C | As official depositary of the Philippine government. |
D | As financial adviser of the Philippine government. |
Question 14 |
A | Terrorists cannot be insured because they are public enemies. |
B | A wife has an insurable interest in the life of her creditor. |
C | The insured shall have the right to change his beneficiary as a rule. |
D | The interest of a beneficiary continues even if his negligence caused the death of the insured. |
Question 15 |
[CLR0214] D deposited 500 bags of cement in the warehouse of W. The latter issued a negotiable warehouse receipt to D. Five months after, O came to the warehouse to claim the goods alleging that the cement deposited by D were merely stolen by the latter. At the same time D arrived in the warehouse claiming the cement and presenting the warehouse receipt. Confronted with conflicting claims of ownership, W should ;
A | deliver the cement to O because he is the owner. |
B | deliver the cement to D because he is the holder of the warehouse receipt. |
C | compel the claimants to interplead so the court could decide who has the right to the goods. |
D | deliver the cement to D because he is the depositor. |
Question 16 |
A | The shipper will be liable only for P500.00 per baggage whatever be the value declared. |
B | All choices are void. |
C | That the shipper will be liable for P500.00 only per luggage except if the shipper or passenger declares a higher value. |
D | That the shipper will be liable only for P500.00 per baggage. |
Question 17 |
[CLR0205] A commercial vessel was sunk when it was overtaken by a typhoon in the ocean. It was established that the ship was unseaworthy but would have successfully completed the voyage had it not been for the typhoon.
A | The ship owner may invoke fortuitous event as a defense. |
B | No one is liable. |
C | The ship agent may not be held liable because he is acting for a disclosed principal. |
D | The ship agent may be held liable in case the ship owner is not found. |
Question 18 |
[CLR0225] A check upon which the holder’s signature must appear twice, one to be affixed by him at the time it is issued and the second or counter-signature, to be affixed by him before it is paid, otherwise it is incomplete, is called:
A | traveller’s check |
B | stale check |
C | none of the choices |
D | certified check |
Question 19 |
[CLR0220] No. 1 – The Ombudsman may inquire into the bank deposit of a public officer whose case is pending criminal investigation in the Ombudsman even if there is no actual case filed in court. No. 2 - A writ of garnishment directed to a bank deposit is prohibited by law.
A | No. 1 is false; No. 2 is true. |
B | No. 1 is true; No. 2 is false |
C | Both are true. |
D | Both are false. |
Question 20 |
[CLR0221] X imports goods from Japan through a letter of credit issued by National Bank. When the goods arrived in Manila, X had no money to pay for the balance of the importation. He therefore, executed a trust receipt agreement with the bank. X got hold of the gods and sold the same but failed to remit to the bank the proceeds of the sale corresponding to his balance.
A | X may be deprived of his import license. |
B | X may be sued for estafa. |
C | X may be sued for theft by the bank; |
D | X is only civilly liable to the bank. |
Question 21 |
[CLR0224] Mendoza claims P 50,000.00 for the loss of both of his suitcases during his flight from Manila to Davao via Philippine Air Lines. However, PAL is willing to pay only P 4,000.00 on the ground that the airline ticket stipulates that unless a higher value is declared, any claim for loss cannot exceed P 2,000.00 for each baggage. Mr. Mendoza has not declared a greater value, despite the fact that the clerk had called his attention to the stipulation in the ticket. Mr. Mendoza sues the airline company. The refusal of the airline company to pay the claim is:
A | valid because Mr. Mendoza did not pay any freight. |
B | valid because no declaration had been made on the actual value of the baggage and Mr. Mendoza did not pay the corresponding freight charges. |
C | not valid as it is not in accordance with law. |
D | not valid as it is contrary to public policy. |
Question 22 |
[CLR0210] In answer to a question in the insurance application on whether or not he had suffered from a heart ailment, X answered “NO”. Two years after the policy became effective, X died of a liver ailment.
A | Recovery can be had. |
B | Recovery cannot be had because of material misrepresentation. |
C | Recovery may be had under the policy because the ailment concealed was not the cause of death. |
D | Recovery cannot be had because of a material concealment. |
Question 23 |
A | If there are expenses incurred when the vessel was repaired before its loss. |
B | There is no exception. |
C | If there are liabilities under the Workmen’s Compensation Law. |
D | The vessel is insured. |
Question 24 |
[CLR0219] It is a bank which creates or accepts demand deposits subject to withdrawal by checks and primarily organized to carry on the business of accepting drafts and issuing letters of credit, discounting and negotiating promissory notes, receiving deposits, buying and selling foreign exchange and gold and silver bullion and lending money against the borrower’s security in property.
A | Universal bank |
B | Rural bank |
C | Thrift bank |
D | Commercial bank |
Question 25 |
[CLR0209] X insured his house against fire. During the effectivity of the insurance, he sold the house to Y without a corresponding change in the policy but X continued to pay the premiums. If a loss occurs;
A | Y can recover because he is the owner. |
B | X can recover from the policy because there was no change in the policy. |
C | The insurer may legally refuse to pay. |
D | X can recover because he is the one who is paying the premiums. |
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