Take the Commercial Law Review MCQs – Set 4 Quiz.
Commercial Law Review - Set 4 [25 items]
Question 1 |
[CLR0415] It is a legal scheme whereby a debtor, who has sufficient assets but who may be unable to meet his obligations as and when they fall due, may petition for more time within which to settle such obligations.
A | Suspension of Payments |
B | Insolvency Proceedings |
C | Corporate Rehabilitation |
D | Voluntary Insolvency |
Question 2 |
A | the inception of the policy |
B | the last reinstatement |
C | at the inception of the policy or from its last reinstatement |
D | none of the choices |
Question 3 |
A | pro-forma contracts |
B | contracts of adhesion |
C | unilateral contracts |
D | none of the choices |
Question 4 |
A | none of the choices |
B | if the loss or destruction was a consequence of the effort to save the thing insured from being burned; |
C | if lost or destroyed because of volcanic lava |
D | if lost or destroyed because of an earthquake |
Question 5 |
A | The invention is not patentable because it is a combination of old functions which does not produce a new result. |
B | The invention is patentable because it combines existing elements, a cellular phone and a digital music player, and produces a new and useful result, namely, the convenience of having two gadgets in one. |
C | The invention is patentable because it is a new product which is beneficial to the public. |
D | The invention is not patentable because Samsung is a foreign corporation and it should file its application in its home country. |
Question 6 |
[CLR0421] Center Book Store is the publisher of the book Legal Journal. It donated one copy to the Library of the U.E. College of Law. The Library, in order to preserve the original book, reproduced one copy of the Journal for lending to the University’s students for room use. Is the U.E. Law Library liable for copyright infringement.
A | No. The reproduction is consistent with fair use. |
B | Yes. Only the National Library is allowed to reproduce books and other works. |
C | Yes. The law only allows a library to photocopy a book if it is fragile or rare. |
D | No. The copy of the Journal is marked “For Room Use Only” and is therefore not made available to the public outside of the Library. |
Question 7 |
[CLR0423] Allan purchased 2005 Civic V-tech from Honda Cars Manila (HCM) for P950,000, payable in twenty-four (24) monthly installments. Allan executed a promissory note and a chattel mortgage to secure payment thereof. Allan failed to pay four (4) installments. Thereafter, Allan sold the car to Magtanggol, a purchaser in good faith and for value. What would be the effect of the sale on the chattel mortgage contract?
A | The chattel mortgage is extinguished as Magtanggol is a purchaser in good faith and for the value. |
B | The chattel mortgage is extinguished because the SCM is stopped in not foreclosing the mortgage after Allan is in default in two installments. |
C | The chattel mortgage is not extinguished because the mortgagee’s right to foreclose the same is in rem. |
D | The chattel mortgage is not extinguished as it is an accessory contract. Hence, HCM can still foreclose the same. |
Question 8 |
A | a citizen of a country with whom the Philippines is at war |
B | none of the choices |
C | who is a fugitive and has a prize on his head |
D | an American or Canadian |
Question 9 |
A | none of the choices |
B | by voluntary scorching |
C | by a hostile fire |
D | by a friendly fire |
Question 10 |
[CLR0401] In the following instances, approval of the majority of the board and concurrence of the stockholders representing 2/3 of the outstanding capital stock is necessary in the exercise of the powers except:
A | To adopt, amend or repeal the by-laws. |
B | To deny pre-emptive right. |
C | To increase or decrease capital stock. |
D | To declare stock dividends. |
Question 11 |
[CLR0412] It is a written statement by the master of vessel, attested by a proper judicial officer or a notary, to the effect that damage suffered by the ship or her voyage was caused by storms or other perils of the sea, without any negligence or misconduct on his part.
A | Affidavit of Desistance |
B | Maritime Protest |
C | Master’s Certificate |
D | Bill of Lading |
Question 12 |
A | none of the choices |
B | hiding the truth |
C | telling lies |
D | failure to communicate |
Question 13 |
A | none of the choices |
B | gratuitous |
C | the premium |
D | the proceeds |
Question 14 |
[CLR0414] This doctrine is a recognition by the courts that the fiduciary standards could not be upheld where the fiduciary is acting for two entities with competing interests. It rests on fundamentally on the unfairness of a corporate officer or director taking advantage of a prospect for his own personal benefit when the interest of the corporation justly needs protection.
A | Corporate Opportunity Doctrine. |
B | Corporate Interest Doctrine |
C | Business Judgment Rule |
D | Corporate Entity Doctrine |
Question 15 |
[CLR0416] It is a business or service engaged in regularly supplying the public with some commodity or service of public consequence such as electricity, gas, water, transportation, telephone or telegraph service.
A | Public Service |
B | Public Utility |
C | Public Corporation |
D | Commodities Trader |
Question 16 |
A | friend |
B | spouse |
C | none of the choices |
D | grandfather |
Question 17 |
[CLR0418] It is the substitution of one person in the place of another with reference to lawful claim or right, so that he who is substituted succeeds to the rights of the other in relation to a debt or claim, including its remedies or securities.
A | Assignment of Rights |
B | Subrogation |
C | Substitution of Creditors |
D | None of the choices |
Question 18 |
A | None of the choices |
B | It is a rule that determines the nationality of a corporation on the basis of the nationality of the majority of the stockholders. |
C | It is a rule that determines the nationality of a corporation on the basis of the place where the foreign corporation is incorporated or registered |
D | It is a rule that determines the nationality of the corporation on the basis of the nationality of its officers and directors. |
Question 19 |
A | The cause of the unforeseen and unexpected occurrence, or the failure of the debtor to comply with his obligations, must be independent of human will |
B | It must be impossible to foresee the event which constitutes the case fortuito, or if it can be foreseen, it must be impossible to avoid |
C | The occurrence must be such as to render it impossible for the debtor to fulfill his obligation in a normal manner |
D | The debtor was blameless |
Question 20 |
[CLR0408] Insurable interest on the thing insured and insurance interest on the policy in property insurance or non-life insurance must be reposed on one and the same person:
A | at the inception of the contract and at the time of the loss. |
B | at the time the contract is perfected. |
C | at the time of the loss. |
D | at the inception of the contract of insurance. |
Question 21 |
A | It is a risk distributing device |
B | It is an aleatory contract. |
C | It is a contract of indemnity |
D | None of the choices |
Question 22 |
[CLR0420] Lucky Me registered its trademark, “Ang Sarap Pancit Palabok” with the Intellectual Property Office. Nissin subsequently introduced its new product, “Ang Sarap Pinoy Ramen”. Lucky Me sued for trademark infringement.
A | Nissin is guilty of trademark infringement because the trademark “Ang Sarap” is fanciful and arbitrary, hence capable of exclusive appropriation. |
B | Nissin is not guilty of trademark infringement because the trademark “Ang Sarap” is descriptive, hence not capable of exclusive appropriation. |
C | Nissin is guilty of trademark infringement because it did not register its trademark “Ang Sarap Pinoy Ramen”. |
D | Nissin is not guilty of trademark infringement because its product, Pinoy Ramen, belongs to a different category from Lucky Me’s product, Pancit Palabok. |
Question 23 |
[CLR0422] The Credit Foundation of the Philippines is a non-stock corporation, which handles deposit of funds from its members and lends the same funds to the general public. It is composed of at least 100 natural persons, each of whom has deposited some amount of money into the Foundation. It applied with the Bangko Sentral for authority to organize itself into a bank. May the Foundation be granted the said authority?
A | No. Only stock corporations can be organized as a bank. |
B | No. The word “Philippines” as part of a corporate name is reserved for government owned or controlled corporations. |
C | Yes. It qualifies as a bank because its funds are obtained from more than 20 persons. |
D | Yes. The Bangko Sentral has the full discretion and expertise to grant authorities to register as banking institution. |
Question 24 |
[CLR0413] This established rule provides that the liability of the ship owner or agent, arising from the operation of a ship, is limited to the vessel, equipment and freight during the voyage.
A | Doctrine of Declared Limitation in Maritime Law |
B | Doctrine of Presumed Negligence of Common Carriers |
C | Real Nature of Maritime Law |
D | Error in Extremis Rule |
Question 25 |
A | the desire of the assured |
B | unlimited |
C | the value of the thing to be insured |
D | nothing |
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