2014 Bar Examinations

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2014 BAR EXAMINATIONS
LABOR LAW
October 5, 2014

2:00P.M.- 6:00 P.M.
INSTRUCTIONS

1. This Questionnaire contains TWELVE (12) pages including these Instructions pages. Check the
number of pages and the page numbers at the upper right hand corner of each page of this
Questionnaire and make sure it has the correct number of pages and their proper numbers.
There are TWENTY-SEVEN (27) Essay and Multiple Choice Questions to be answered within four
(4) hours.
2. Read each question very carefully and write your answers in your Bar Examination Notebook in
the same order the questions are posed. Write your answers only on the front, not the back, page of
every sheet in your Notebook. Note well the allocated percentage points for each number, question,
or sub-question. In your answers, use the numbering system in the questionnaire.
If the sheets provided in your Examination Notebook are not sufficient for your answers, use the
back page of every sheet of your Examination Notebook, starting at the back page of the first sheet
and the back of the succeeding sheets thereafter.
3. Answer the Essay questions legibly, clearly, and concisely. Start each number on a separate
page. An answer to a sub-question under the same number may be written continuously on the
same page and the immediately succeeding pages until completed.
Your answer should demonstrate your ability to analyze the facts presented by the question, to
select the material from the immaterial facts, and to discern the points upon which the question
turns. It should show your knowledge and understanding of the pertinent principles and theories of
law involved and their qualifications and limitations. It should demonstrate your ability to apply the
law to the given facts, and to reason logically in a lawyer-like manner to a sound conclusion from the
given premises.
A mere "Yes" or "No" answer without any corresponding explanation or discussion will not be given
any credit. Thus, always briefly but fully explain your answers although the question does not
expressly ask for an explanation. At the same time, remember that a complete explanation does not
require that you volunteer information or discuss legal doctrines that are not necessary or pertinent
to the solution to the problem. You do not need to re-write or repeat the question in your Notebook.
4. MCQs are to be answered by writing in your Notebook the capital letter A, B, C, or D
corresponding to your chosen answer.
There is only one correct answer to every MCQ; choose the BEST answer from among the offered
choices. Note that some MCQs may need careful analysis both of the questions and the choices
offered.
5. Make sure you do not write your name or any extraneous note/s or distinctive marking/s on your
Notebook that can serve as an identifying mark/s (such as names that are not in the given

questions, prayers, or private notes to the Examiner).
Writing, leaving or making any distinguishing or identifying mark in the exam Notebook is considered
cheating and can disqualify you for the Bar examinations.
You can use the questionnaire for notes you may wish/need to write during the examination.
YOU CAN BRING HOME THIS QUESTIONNAIRE OR HAND IT TOGETHER WITH YOUR
NOTEBOOK
J. DIOSDADO M. PERALTA
Chairman
2014 Bar Examinations
I.
Linda was employed by Sectarian University (SU) to cook for the members of a religious order who
teach and live inside the campus. While performing her assigned task, Linda accidentally burned
herself. Because of the extent of her injuries, she went on medical leave. Meanwhile, SU engaged a
replacement cook. Linda filed a complaint for illegal dismissal, but her employer SU contended that
Linda was not a regular employee but a domestic househelp. Decide. (4%)
II.
Lucy was one of approximately 500 call center agents at Hambergis, Inc. She was hired as a
contractual employee four years ago. Her contracts would be for a duration of five (5) months at a
time, usually after a onemonth interval. Her re-hiring was contingent on her performance for the
immediately preceding contract. Six (6) months after the expiration of her last contract, Lucy went to
Hambergis personnel department to inquire why she was not yet being recalled to work. She was
told that her performance during her last contract was "below average." Lucy seeks your legal
advice about her chances of getting her job back. What will your advice be? (4%)
III.
Lolong Law Firm (LLF), which employs around 50 lawyers and 100 regular staff, suffered losses for
the first time in its history. The management informed its employees that it could no longer afford to
provide them free lunch. Consequently, it announced that a nominal fee would henceforth be
charged. Was LLF justified in withdrawing this benefit which it had unilaterally been providing to its
employees? (1%)
(A) Yes, because it is suffering losses for the first time.
(B) Yes, because this is a management prerogative which is not due to any legal or
contractual obligation.
(C) No, because this amounts to a diminution of benefits which is prohibited by the Labor
Code.

(D) No, because it is a fringe benefit that has already ripened into a demandable right.
IV.
Linis Manpower, Inc. (LMI) had provided janitorial services to the Philippine Overseas Employment
Administration (POEA) since March 2009. Its service contract was renewed every three months.
However, in the bidding held in June 2012, LMI was disqualified and excluded. In 2013, six janitors
of LMI formerly assigned at POEA filed a complaint for underpayment of wages. Both LMI and
POEA were impleaded as respondents. Should POEA, a government agency subject to budgetary
appropriations from Congress, be held liable solidarily with LMI for the payment of salary
differentials due to the complainant? Cite the legal basis of your answer. (4%)
V.
Liwayway Glass had 600 rank-and-file employees. Three rival unions – A, B, and C ‒ participated in
the certification elections ordered by the Med-Arbiter. 500 employees voted. The unions obtained
the following votes: A-200; B-150; C-50; 90 employees voted "no union"; and 10 were segregated
votes. Out of the segregated votes, four (4) were cast by probationary employees and six (6) were
cast by dismissed employees whose respective cases are still on appeal. (10%)
(A) Should the votes of the probationary and dismissed employees be counted in the total
votes cast for the purpose of determining the winning labor union?
(B) Was there a valid election?
(C) Should Union A be declared the winner?
(D) Suppose the election is declared invalid, which of the contending unions should
represent the rank-and-file employees?
(E) Suppose that in the election, the unions obtained the following votes: A-250; B-150; C50; 40 voted "no union"; and 10 were segregated votes. Should Union A be certified as the
bargaining representative?
VI.
Lina has been working as a steward with a Miami, U.S.A.-based Loyal Cruise Lines for the past 15
years. She was recruited by a local manning agency, Macapagal Shipping, and was made to sign a
10-month employment contract everytime she left for Miami. Macapagal Shipping paid for Lina’s
round-trip travel expenses from Manila to Miami. Because of a food poisoning incident which
happened during her last cruise assignment, Lina was not re-hired. Lina claims she has been
illegally terminated and seeks separation pay. If you were the Labor Arbiter handlingthe case, how
would you decide? (4%)
VII.
Non-lawyers can appear before the Labor Arbiter if: (1%)

(A) they represent themselves
(B) they are properly authorized to represent their legitimate labor organization or member
thereof
(C) they are duly-accredited members of the legal aid office recognized by the DOJ or IBP
(D) they appear in cases involving an amount of less than Php5,000
VIII.
As a result of a bargaining deadlock between Lazo Corporation and Lazo Employees Union, the
latter staged a strike. During the strike, several employees committed illegal acts. Eventually, its
members informed the company of their intention to return to work. (6%)
(A) Can Lazo Corporation refuse to admit the strikers?
(B) Assuming the company admits the strikers, can it later on dismiss those employees who
committed illegal acts?
(C) If due to prolonged strike, Lazo Corporation hired replacements, can it refuse to admit
the replaced strikers?
IX.
Luisa Court is a popular chain of motels. It employs over 30 chambermaids who, among others, help
clean and maintain the rooms. These chambermaids are part of the union rank-and-file employees
which has an existing collective bargaining agreement (CBA) with the company. While the CBA was
in force, Luisa Court decided to abolish the position of chambermaids and outsource the cleaning of
the rooms to Malinis Janitorial Services, a bona fide independent contractor which has invested in
substantial equipment and sufficient manpower. The chambermaids filed a case of illegal dismissal
against Luisa Court. In response, the company argued that the decision to outsource resulted from
the new management’s directive to streamline operations and save on costs. If you were the Labor
Arbiter assigned to the case, how would you decide? (4%)
X.
Luisa was hired as a secretary by the Asian Development Bank (ADB) in Manila. Luisa’s first boss
was a Japanese national whom she got along with. But after two years, the latter was replaced by
an arrogant Indian national who did not believe her work output was in accordance with international
standards. One day, Luisa submitted a draft report filled with typographical errors to her boss. The
latter scolded her, but Luisa verbally fought back. The Indian boss decided to terminate her services
right then and there. Luisa filed a case for illegal dismissal with the Labor Arbiter claiming
arbitrariness and denial of due process. If you were the Labor Arbiter, how would you decide the
case? (4%)
XI.
Lionel, an American citizen whose parents migrated to the U.S. from the Philippines, was hired by
JP Morgan in New York as a call center specialist. Hearing about the phenomenal growth of the call

center industry in his parents’ native land, Lionel sought and was granted a transfer as a call center
manager for JP Morgan’s operations in Taguig City. Lionel’semployment contract did not specify a
period for his stay in the Philippines. After three years of working in the Philippines, Lionel was
advised that he was being recalled to New York and being promoted to the position of director of
international call center operations. However, because of certain "family reasons," Lionel advised
the company of his preference to stay in the Philippines. He was dismissed by the company. Lionel
now seeks yo ur legal advice on: (6%)
(A) whether he has a cause of action
(B) whether he can file a case in the Philippines
(C) what are his chances of winning
XII.
Which of the following groups does not enjoy the right to selforganization? (1%)
(A) those who work in a non-profit charitable institution
(B) those who are paid on a piece-rate basis
(C) those who work in a corporation with less than 10 employees
(D) those who work as legal secretaries
XIII.
Don Luis, a widower, lived alone in a house with a large garden. One day, he noticed that the plants
in his garden needed trimming. He remembered that Lando, a 17-year old out-of-school youth, had
contacted him in church the other day looking for work. He contacted Lando who immediately
attended to Don Luis’s garden a nd finished the job in three days. (4%)
(A) Is there an employer-employee relationship between Don Luis and Lando?
(B) Does Don Luis need to register Lando with the Social Security System (SSS)?
XIV.
Luisito has been working with Lima Land for 20 years. Wanting to work in the public sector, Luisito
applied with and was offered a job at Livecor. Before accepting the offer, he wanted to consult you
whether the payments that he and Lima Land had made to the Social Security System (SSS) can be
transferred or credited to the Government Service Insurance System (GSIS). What would you
advice? (4%)
XV.
Our Lady of Peace Catholic School Teachers and Employees Labor Union (OLPCS-TELU) is a
legitimate labor organization composed of vice principals, department heads, coordinators, teachers,

and non-teaching personnel of Our Lady of Peace Catholic School (OLPCS).
OLPCS-TELU subsequently filed a petition for certification election among the teaching and nonteaching personnel of OLPCS before the Bureau of Labor Relations (BLR) of the Department of
Labor and Employment (DOLE). The Med-Arbiter subsequently granted the petition and ordered the
conduct of a joint certification election for the teaching and non-teaching personnel of OLPCS.
May OLPCS-TELU be considered a legitimate labor organization? (5%)
XVI.
Samahang East Gate Enterprises (SEGE) is a labor organization composed of the rank-and-file
employees of East Gate Enterprises (EGE), the leading manufacturer of all types of gloves and
aprons.
EGE was later requested by SEGE to bargain collectively for better terms and conditions of
employment of all the rank -and-file employees of EGE. Consequently, EGE filed a petition for
certification election before the Bureau of Labor Relations (BLR).
During the proceedings, EGE insisted that it should participate in the certification process. EGE
reasoned that since it was the one who filed the petition and considering that the employees
concerned were its own rankand-file employees, it should be allowed to take an active part in the
certification process.
Is the contention of EGE proper? Explain. (5%)
XVII.
Philhealth is a government-owned and controlled corporation employing thousands of Filipinos.
Because of the desire of the employees of Philhealth to obtain better terms and conditions of
employment from the government, they formed the Philhealth Employees Association (PEA) and
demanded Philhealth to enter into negotiations with PEA regarding terms and conditions of
employment which are not fixed by law. (4%)
(A) Are the employees of Philhealth allowed to self-organize and form PEA and thereafter
demand Philhealth to enter into negotiations with PEA for better terms and conditions of
employment?
(B) In case of unresolved grievances, can PEA resort to strikes, walkouts, and other
temporary work stoppages to pressure the government to accede to their demands?
XVIII.
The procedural requirements of a valid strike include: (1%)
(A) a claim of either unfair labor practice or deadlock in collective bargaining
(B) notice of strike filed at least 15 days before a ULP-grounded strike or at least 30 days

prior to the deadlock in a bargaining grounded strike
(C) majority of the union membership must have voted to stage the strike with notice thereon
furnished to the National Conciliation and Mediation Board (NCMB) at least 24 hours before
the strike vote is taken
(D) strike vote results must be furnished to the NCMB at least seven (7) days before the
intended strike
XIX.
Lincoln was in the business of trading broadcast equipment used by television and radio networks.
He employed Lionel as his agent. Subsequently, Lincoln set up Liberty Communications to formally
engage in the same business. He requested Lionel to be one of the incorporators and assigned to
him 100 Liberty shares. Lionel was also given the title Assistant Vice-President for Sales and Head
of Technical Coordination. After several months, there were allegations that Lionel was engaged in
"under the table dealings" and received "confidential commissions" from Liberty’s clients and
suppliers. He was, therefore, charged with serious misconduct and willful breach of trust, and was
given 48 hours to present his explanation on the charges. Lionel was unable to comply with the 48
-hour deadline and was subsequently barred from entering company premises. Lionel then filed a
complaint with the Labor Arbiter claiming constructive dismissal. Among others, the company sought
the dismissal of the complaint alleging that the case involved an intra-corporate controversy which
was within the jurisdiction of the Regional Trial Court (RTC).
If you were the Labor Arbiter assigned to the case, how would you rule on the company’s motion to
dismiss? (5%)
XX.
Lito was anticipating the bonus he would receive for 2013. Aside from the 13th month pay, the
company has been awarding him and his other co-employees a two to three months bonus for the
last 10 years. However, because of poor over-all sales performance for the year, the company
unilaterally decided to pay only a one month bonus in 2013. Is Lito’s employer legally allowed to
reduce the bonus? (4%)
XXI.
An accidental fire gutted the JKL factory in Caloocan. JKL decided to suspend operations and
requested its employees to stop reporting for work. After six (6) months, JKL resumed operations but
hired a new set of employees. The old set of employees filed a case for illegal dismissal. If you were
the Labor Arbiter, how would you decide the case? (4%)
XXII.
Despite a reinstatement order, an employer may choose not to reinstate an employee if: (1%)
(A) there is a strained employer-employee relationship
(B) the position of the employee no longer exists

(C) the employer’s business has been closed
(D) the employee does not wish to be reinstated.
XXIII.
Luningning Foods engaged the services of Lamitan Manpower, Inc., a bona fide independent
contractor, to provide "tasters" that will check on food quality. Subsequently, these "tasters" joined
the union of rank -and-file employees of Luningning and demanded that they be made regular
employees of the latter as they are performing functions necessary and desirable to operate the
company’s business. Luningning rejected the demand for regularization. On behalf of the "tasters",
the union then filed a notice of strike with the Department of Labor and Employment (DOLE). In
response, Luningning sought a restraining order from the Regional Trial Court (RTC) arguing that
the DOLE does not have jurisdiction over t he case since it does not have an employer-employee
relationship with the employees of an independent contractor. If you were the RTC judge, would you
issue a restraining order against the union? (4%)
XXIV.
Lanz was a strict and unpopular Vice-President for Sales of Lobinsons Land. One day, Lanz shouted
invectives against Lee, a poor performing sales associate, calling him, among others, a "brown
monkey." Hurt, Lee decided to file a criminal complaint for grave defamation against Lanz. The
prosecutor found probable cause and filed an information in court. Lobinsons decided to terminate
Lanz for committing a potential crime and other illegal acts prejudicial to business. Can Lanz be
legally terminated by the company on these grounds? (4%)
XXV.
Lizzy Lu is a sales associate for Luna Properties. The latter is looking to retrench Lizzy and five
other sales associates due to financial losses. Aside from a basic monthly salary, Lizzy and her
colleagues receive commissions on the sales they make as well as cost of living and representation
allowances. In computing Lizzy’s separation pay, Luna Properties should consider her: (1%)
(A) monthly salary only
(B) monthly salary plus sales commissions
(C) monthly salary plus sales commissions, plus cost of living allowance
(D) monthly salary plus sales commissions, plus cost of living allowance and representation
allowance
XXVI.
Liwanag Corporation is engaged in the power generation business. A stalemate was reached during
the collective bargaining negotiations between its management and the union. After following all the
requisites provided by law, the union decided to stage a strike. The management sought the
assistance of the Secretary of Labor and Employment, who assumed jurisdiction over the strike and
issued a return-to-work order. The union defied the latter and continued the strike. Without providing
any notice, Liwanag Corporation declared everyone who participated in the strike as having lost their

employment. (4%)
(A) Was Liwanag Corporation’s action valid?
(B) If, before the DOLE Secretary assumed jurisdiction, the striking union members
communicated in writing their desire to return to work, which offer Liwanag Corporation
refused to accept, what remedy, if any, does the union have?
XXVII.
The jurisdiction of the National Labor Relations Commission does not include: (1%)
(A) exclusive appellate jurisdiction over all cases decided by the Labor Arbiter
(B) exclusive appellate jurisdiction over all cases decided by Regional Directors or hearing
officers involving the recovery of wages and other monetary claims and benefits arising from
employer-employee relations where the aggregate money claim of each does not exceed
five thousand pesos (Php5,000)
(C) original jurisdiction to act as a compulsory arbitration body over labor disputes certified to
it by the Regional Directors
(D) power to issue a labor injunction
---ooo0ooo---

BAR EXAMINATIONS 2005
CIVIL LAW
11 September 2005 8 A.M. — 12 Noon
INSTRUCTIONS
This questionnaire consists of sixteen (16) numbers contained in nine (9)
pages. Read each question very carefully. Answer legibly, clearly and
concisely. Start each number on a separate page; an answer to a subquestion under the same number may be written continuously on the same
and immediately succeeding pages until completed. Do not repeat the
question.
HAND IN YOUR NOTEBOOK WITH THIS QUESTIONNAIRE GOOD LUCK!!!
(Sgd.) Romeo J. Callejo, Sr.
Chairman
2005 Bar Examination Committee

PLEASE CHECK THE NUMBER OF PAGES IN THIS SET WARNING: NOT FOR
SALE OR UNAUTHORIZED USE
CIVIL LAW
-IGabby and Mila got married at Lourdes Church in Quezon City on July 10,
1990. Prior thereto, they executed a marriage settlement whereby they
agreed on the regime of conjugal partnership of gains. The marriage
settlement was registered in the Register of Deeds of Manila, where Mila is a
resident. In 1992, they jointly acquired a residential house and lot, as well
as a condominium unit in Makati. In 1995, they decided to change their
property relations to the regime of complete separation of property. Mila
consented, as she was then engaged in a lucrative business. The spouses
then signed a private document dissolving their conjugal partnership and
agreeing
on
a
complete
separation
of
property.
Thereafter, Gabby acquired a mansion in Baguio City, and a 5-hectare
agricultural land in Oriental Mindoro, which he registered exclusively in his
name.
In the year 2000, Mila’s business venture failed, and her creditors sued her
for P10,000,000.00. After obtaining a favorable judgment, the creditors
sought to execute on the spouses’ house and lot and condominium unit, as
well as Gabby’s mansion and agricultural land.
a) Discuss the status of the first and the amended marriage settlements.
(2%)
b) Discuss the effect/s of the said settlements on the properties acquired by
the
spouses.
(2%)
c) What properties may be held answerable for Mila’s obligations? Explain.
(2%)
- II In 1985, Sonny and Lulu, both Filipino citizens, were married in the
Philippines. In 1987, they separated, and Sonny went to Canada, where he
obtained a divorce in the same year. He then married another Filipina,

Auring, in Canada on January 1, 1988. They had two sons, James and John.
In 1990, after failing to hear from Sonny, Lulu married Tirso, by whom she
had a daughter, Verna. In 1991, Sonny visited the Philippines where he
succumbed to heart attack.
a) Discuss the effect of the divorce obtained by Sonny and Lulu in Canada.
(2%)
b) Explain the status of the marriage between Sonny and Auring. (2%)
c) Explain the status of the marriage between Lulu and Tirso. (2%)
d) Explain the respective filiation of James, John and Verna. (2%)
e) Who are the heirs of Sonny? Explain. (2%)
- III Emil, the testator, has three legitimate children, Tom, Henry and Warlito; a
wife named Adette; parents named Pepe and Pilar; an illegitimate child,
Ramon; brother, Mark; and a sister, Nanette. Since his wife Adette is welloff, he wants to leave to his illegitimate child as much of his estate as he can
legally do. His estate has a net amount of P1,200,000.00, and all the abovenamed relatives are still living. Emil now comes to you for advice in making
a
will.
How will you distribute his estate according to his wishes without violating
the law on testamentary succession? (5%)
- IV Steve was married to Linda, with whom he had a daughter, Tintin. Steve
fathered a son with Dina, his secretary of 20 years, whom Dina named Joey,
born on September 20, 1981. Joey’s birth certificate did not indicate the
father’s name. Steve died on August 13, 1993, while Linda died on
December 3, 1993, leaving their legitimate daughter, Tintin, as sole heir. On
May 16, 1994, Dina filed a case on behalf of Joey, praying that the latter be
declared an acknowledged illegitimate son of Steve and that Joey be given
his share in Steve’s estate, which is now being solely held by Tintin. Tintin
put up the defense that an action for recognition shall only be filed during
the lifetime of the presumed parents and that the exceptions under Article
285 of the Civil Code do not apply to him since the said article has been

repealed by the Family Code. In any case, according to Tintin, Joey’s birth
certificate does not show that Steve is his father.
a) Does Joey have a cause of action against Tintin for recognition and
partition?
Explain.
(2%)
b)

Are

the

defenses

set

up

by

Tintin

tenable?

Explain.

(2%)

c) Supposing that Joey died during the pendency of the action, should the
action be dismissed? Explain. (2%)
-VIn 1984, Eva, a Filipina, went to work as a nurse in the USA. There, she met
and fell in love with Paul, an American citizen, and they got married in 1985.
Eva acquired American citizenship in 1987. During their sojourn in the
Philippines in 1990, they filed a joint petition for the adoption of Vicky, a 7year old daughter of Eva’s sister. The government, through the Office of the
Solicitor General, opposed the petition on the ground that the petitioners,
being both foreigners, are disqualified to adopt Vicky.
a)

Is

the

government’s

opposition

tenable?

Explain.

(2%)

b) Would your answer be the same if they sought to adopt Eva’s illegitimate
daughter?
Explain.
(2%)
c) Supposing that they filed the petition to adopt Vicky in the year 2000, will
your answer be the same? Explain. (2%)
- VI Hans Herber, a German national, and his Filipino wife, Rhoda, are permanent
residents of Canada. They desire so much to adopt Magno, an 8-year old
orphaned boy and a baptismal godson of Rhoda. Since the accidental death
of Magno’s parents in 2004, he has been staying with his aunt who, however,
could hardly afford to feed her own family. Unfortunately, Hans and Rhoda
cannot come to the Philippines to adopt Magno although they possess all the
qualifications
as
adoptive
parents.
Is

there

a

possibility

How should they go about it? (5%)

for

them

to

adopt

Magno?

- VII Don was the owner of an agricultural land with no access to a public road.
He had been passing through the land of Ernie with the latter’s acquiescence
for over 20 years. Subsequently, Don subdivided his property into 20
residential lots and sold them to different persons. Ernie blocked the
pathway and refused to let the buyers pass through his land.
a) Did Don acquire an easement of right of way? Explain. (2%)
b) Could Ernie close the pathway and refuse to let the buyers pass? Give
reasons.
(2%)
c) What are the rights of the lot buyers, if any? Explain. (2%)
- VIII State with reason whether each of the following is a nuisance, and if so, give
its classification, whether public or private:
cralaw

a)

A

squatter’s

hut

(1%)

b)

A

swimming

pool

(1%)

prostitution

(1%)

c)
d)

A
A

noisy

house
or

of

dangerous

factory

in

a

private

land

(1%)

e) Uncollected garbage (1%)
- IX Marvin offered to construct the house of Carlos for a very reasonable price of
P900,000.00, giving the latter 10 days within which to accept or reject the
offer. On the fifth day, before Carlos could make up his mind, Marvin
withdrew
his
offer.
a)

What

is

the

effect

of

the

withdrawal

of

Marvin’s offer?

(2%)

b) Will your answer be the same if Carlos paid Marvin P10,000.00 as
consideration
for
that
option?
Explain.
(2%)
c)

Supposing

that

Carlos

accepted

the

offer

before

Marvin

could

communicate

his

withdrawal

thereof?

Discuss the legal consequences. (2%)
-XBernie bought on installment a residential subdivision lot from DEVLAND.
After having faithfully paid the installments for 48 months, Bernie discovered
that DEVLAND had failed to develop the subdivision in accordance with the
approved plans and specifications within the time frame in the plan. He thus
wrote a letter to DEVLAND informing it that he was stopping payment.
Consequently, DEVLAND cancelled the sale and wrote Bernie, informing him
that his payments are forfeited in its favor.
a)

Was

b)

Discuss

the
the

action
rights

of
of

DEVLAND
Bernie

under

proper?
the

Explain.

circumstances.

(2%)
(2%)

c) Supposing DEVLAND had fully developed the subdivision but Bernie failed
to pay further installments after 4 years due to business reverses. Discuss
the rights and obligations of the parties. (2%)
- XI Before he left for Riyadh to work as a mechanic, Pedro left his Adventure van
with Tito, with the understanding that the latter could use it for one year for
his personal or family use while Pedro works in Riyadh. He did not tell Tito
that the brakes of the van were faulty. Tito had the van tuned up and the
brakes repaired. He spent a total amount of P15,000.00. After using the
vehicle for two weeks, Tito discovered that it consumed too much fuel. To
make up for the expenses, he leased it to Annabelle. Two months later,
Pedro returned to the Philippines and asked Tito to return the van.
Unfortunately, while being driven by Tito, the van was accidentally damaged
by a cargo truck without his fault.
a) Who shall bear the P15,000.00 spent for the repair of the van? Explain.
(2%)
b) Who shall bear the costs for the van’s fuel, oil and other materials while it
was
with
Tito?
Explain.
(2%)
c) Does Pedro have the right to retrieve the van even before the lapse of one
year?
Explain.
(2%)

d) Who shall bear the expenses for the accidental damage caused by the
cargo truck, granting that the truck driver and truck owner are insolvent?
Explain. (2%)
- XII On July 14, 2004, Pedro executed in favor of Juan a Deed of Absolute Sale
over a parcel of land covered by TCT No. 6245. It appears in the Deed of
Sale that Pedro received from Juan P120,000.00 as purchase price. However,
Pedro retained the owner’s duplicate of said title. Thereafter, Juan, as lessor,
and Pedro, as lessee, executed a contract of lease over the property for a
period of one (1) year with a monthly rental of P1,000.00. Pedro, as lessee,
was also obligated to pay the realty taxes on the property during the period
of
lease.
Subsequently, Pedro filed a complaint against Juan for the reformation of the
Deed of Absolute Sale, alleging that the transaction covered by the deed was
an equitable mortgage. In his verified answer to the complaint, Juan alleged
that the property was sold to him under the Deed of Absolute Sale, and
interposed counterclaims to recover possession of the property and to
compel Pedro to turn over to him the owner’s duplicate of title.
Resolve the case with reasons. (6%)
- XIII Rod, the owner of an FX taxi, found in his vehicle an envelope containing
TCT No. 65432 over a lot registered in Cesar’s name. Posing as Cesar, Rod
forged Cesar’s signature on a Deed of Sale in Rod’s favor. Rod registered the
said document with the Register of Deeds, and obtained a new title in his
name. After a year, he sold the lot to Don, a buyer in good faith and for
value, who also registered the lot in his name.
a)
b)

Did
Discuss

Rod
the

acquire
rights

of

title

to

Don,

if

the
any,

land?
over

the

Explain.

(2%)

property.

(2%)

c) In an ejectment case filed by Don against Cesar, can the latter ask for the
cancellation of Don’s title considering that he (Cesar) is the rightful owner of
the lot? Explain. (2%)
- XIV -

Under a written contract dated December 1, 1989, Victor leased his land to
Joel for a period of five (5) years at a monthly rental of P1,000.00, to be
increased to P1,200.00 and P1,500.00 on the third and fifth year,
respectively. On January 1, 1991, Joel subleased the land to Conrad for a
period of two (2) years at a monthly rental of P1,500.00. On December 31,
1992, Joel assigned the lease to his compadre, Ernie, who acted on the
belief that Joel was the rightful owner and possessor of the said lot. Joel has
been faithfully paying the stipulated rentals to Victor. When Victor learned on
May 15, 1992 about the sublease and assignment, he sued Joel, Conrad and
Ernie for rescission of the contract of lease and for damages.
a)

Will

the

action

prosper?

If

so,

against

whom?

Explain.

(2%)

b) In case of rescission, discuss the rights and obligations of the parties.
(2%)
- XV Under the law on quasi-delict, aside from the persons who caused injury to
persons, who else are liable under the following circumstances:
cralaw

a) When a 7-year-old boy injures his playmate while playing with his father’s
rifle.
Explain.
(2%)
b) When a domestic helper, while haggling for a lower price with a fish
vendor in the course of buying foodstuffs for her employer’s family, slaps the
fish vendor, causing her to fall and sustain injuries. Explain. (2%)
c) A carpenter in a construction company accidentally hits the right foot of
his
co-worker
with
a
hammer.
Explain.
(2%)
d) A 15-year-old high school student stabs his classmate who is his rival for
a girl while they were going out of the classroom after their last class.
Explain.
(2%)
e) What defense, if any, is available to them? (2%)
- XVI Dr. and Mrs. Almeda are prominent citizens of the country and are frequent
travelers abroad. In 1996, they booked round-trip business class tickets for
the Manila-Hong Kong-Manila route of the Pinoy Airlines, where they are

holders of Gold Mabalos Class Frequent Flier cards. On their return flight,
Pinoy Airlines upgraded their tickets to first class without their consent and,
inspite of their protestations to be allowed to remain in the business class so
that they could be with their friends, they were told that the business class
was already fully booked, and that they were given priority in upgrading
because they are elite members/holders of Gold Mabalos Class cards. Since
they were embarrassed at the discussions with the flight attendants, they
were forced to take the flight at the first class section apart from their
friends who were in the business class. Upon their return to Manila, they
demanded a written apology from Pinoy Airlines. When it went unheeded,
the couple sued Pinoy Airlines for breach of contract claiming moral and
exemplary
damages,
as
well
as
attorney’s
fees.
Will the action prosper? Give reasons. (5%)

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