B-LAW311 – MIDTERM EXAMINATION
Bold: 3 wrong answers (excluding essay)
Q1: Under the Consumer Act, it shall be unlawful for any person to:
Import consumer product not in conformity with prescribed quality
Sell banned consumer product
Sell product with Philippine Standard Certification Mark
Both a and b
Both a and c
None of the above
Q2: A is an importer of products sold to the Philippines, the product must have:
BPS mark
PC mark
PS mark
ICC mark
Q3: Government procurement reform act applies to: (1/6)
Procurement of infrastructure project by local government units
Procurement of goods by government and controlled corporation
Procurement of locally funded infrastructure project by the national government
All of the above
Both a and b
Q4: Seller entered into a contract of sale with the buyer stating that the object of sale is new and unused,
when in fact it is reconditioned.
Seller committed unfair sales act
Seller committed home solicitation sale
Seller committed deceptive sales act
Seller committed undesirable practice
Q5: Direct Contracting may be resorted to when:
Purchasing highly specialized type of goods
Time is of the essence arising from natural or man-made calamities
Item is sold by an exclusive dealer or manufacturer
Purchasing ordinary or regular office supplies
Q6: When may a bank disclose a bank account without being held liable for violation of bank secrecy
law? (6/6)
When there is a court involving graft cases
X Upon inquiry by the commissioner of BIR in tax evasion cases
When there is garnishment of deposit
When the account holder gives his consent
Both a and c
Both a and d
Both b and c
Both b and d
All of the above
None of the above
Q7: A, distributor of motor vehicle sold to B working as a janitor, a brand new laptop computer for a
price of P50,000.00 which is generally sold to the market for only P30,000.00.
Seller committed home solicitation sale
Seller committed undesirable practice
Seller committed deceptive sales act
Seller committed unfair sales act
Q8: The following results to failure of bidding, except: (2/6)
No bids are received
No bid qualified as the Lowest Calculated Responsive Bid
Whenever the bidder with the highest rated calculated responsive bid refuses without
justifiable cause to accept the award
Both a and b
None of the above
Q9: How does PDIC law treats “and/or” joint account for insurance purposes?
Insured together with other accounts
Not insured
Account added together with another joint account
Insured separately with other accounts
Insured only for P250,000.00
Q10: What is the duty of a covered institution under the AMLA Law involving covered or suspicious
transactions?
The covered institution shall freeze the account and report to the AMLC within five (5)
working days from occurrence
The covered institution shall furnish a copy of notice of the freeze upon the owner or holder
of the monetary instrument
Report to the AMLC all covered and suspicious transactions within five (5) working days
from occurrence
All of the above
Q11: All deposits of whatever nature with banks in the Philippines are considered absolutely confidential
nature. (3/6)
Partly true
True
Partly false
False
Q12: Rehabilitation proceedings maybe:
Voluntary
Involuntary
Pre-negotiated
Informal
A, b, and c only
All of the above
Q13: The following are the requisites to be liable for violation of bouncing checks law, which is not?
A person making, drawing, and issuance of any check for account or for value
The knowledge of the maker, drawer, or issuer at the time of issue does not have sufficient
funds in or credit with the drawee bank for the payment of check in full upon its presentment
Check must be presented for payment within ninety (90) days from the date of issuance
The subsequent dishonour of the check by the drawee bank for insufficiency of funds or creditor
dishonour for the same reason had not the drawer, without any valid cause, order the bank to stop
payment
None of the above
Q14: Under the Philippine Deposit Insurance Law, what kind of deposits are insured? (4 of 6)
Savings account
Current account
Trust fund account
Time deposit
Foreign currency deposit
All of the above
Q15: X Corp purchased for 2 billion pesos Y Water District operating to provide clean water in
Dasmarinas, Cavite.
If the Philippine Competition Commission has no decision within 60 days, the sale is deemed
approved
The sale must be reported to the Philippine Competition Commission prior to consummation
All statements are correct
The Philippine Competition Commission has 30 days to approve or deny the sale extendible for
another 30 days
Q16: Mr. A, President of B Company sued Mr. C, cashier of the company for qualified theft committed
when Mr. C deposited to his personal account in D Bank the check with no. 987654 paid in favour of the
compay amounting to P1,234,567.89. When Mr. E, Manager of D Bank testified in court, he confirmed
that the subject check was indeed deposit in the account of Mr. C. The latter sought your assistance and
asked whether his rights as protected by the secrecy of bank deposit was violdated when Mr. E testified in
court and revealed his deposit.
Q17: Goods under the Government procurement reform act includes the following, except:
Supplies, materials, and general support services
Equipment, furniture, stationery, materials for construction
Repair and maintenance of equipment and furniture
Consulting services and infrastructure projects
All of the above
None of the above
Q18: In case of breach of express warranty, consumer may:
Refund the purchase price with damages
Demand repair
Retained the goods and demand damages
Refund the purchase price while retaining the goods
Both a and c
None of the above
Q19: X Bank have the following accounts: Account No. 1 under the name of Gianna – 900,000.00;
Account No. 2 under the name of Gianna in trust for Ava – 350,000.00; Account No. 3 under the name of
Gianna and/or Ava – 1,000,000.00. How much is the total insured funds of Gianna?
P1,000,000.00
P750,000.00
P500,000.00
None of the above
Q20: The following are the requirements for a pre-negotiated rehabilitation plan to prosper, which is not?
(5 of 6)
Endorsed by creditors holding sixty seven (67%) of the total liabilities of the debtor
Approved by creditors representing at least seventy-five percent (75%) of the unsecured
obligations
Approved by the creditors representing at least fifty percent (50%) of the unsecured
obligations
All of the above
Both b and c
Q21: A method of procurement that involves direct invitation to bid by the Procuring Entity from a set of
pre-selected suppliers or consultants with known experience and proven capability.
Shopping
Direct Contracting
Selective Bidding
Negotiated Procurement
Single Source Procurement
Q22: Lease of construction and office equipment is not covered by government procurement reform act.
Government procurement and reform act covers only purchases of goods and services.
First statement if correct while second statement is incorrect
First statement is incorrect while second statement is correct
Both statements are correct
Both statements are incorrect
Q23: When is PDIC liable to pay a depositor?
When bank is unable to pay the depositor
When there is bank closure
When bank filed for bankruptcy
All of the above
Q24: B Bank terminated its lease with Mr. L, lessor of the commercial building in Dasmarinas City,
Cavite. The bank did not anymore maintain any branch or office in the city. At time of closure of the
branch Joh, Wah, Moh maintains the following account with the bank.
Account Holder Balance
Acct #1 Joh P300,000.00
Acct #2: Joh and Wah P900,000.00
Acct #3 Joh and/or Moh P700,000.00
Acct #4 Joh or Wah or Moh P500,000.00
How much can Joh, Wah, Moh can claim from PDIC?
Q25: The following departments adopt consumer product standards, which is not?
Department of Health
Department of Environment and Natural Resources
Department of Trade and Industry
Department of Agriculture
Both a and b
None of the above
Q26: A bought a 2020 Toyota Fortuner from his friend B, but 2 months after purchase, the vehicle
encountered problems. What are the remedies of A?
Return the vehicle to B and claim rights under Lemon Law
Return the vehicle to Toyota and claim rights under Lemon Law
Claim for refund from B
If B refused to refund the purchase price, file case before DTI for arbitration
All of the above
None of the above
Q27: A method of procurement whereby the Procuring Entity simply requests for the submission of price
quotations for readily available off-the-shelf Goods
Selective Bidding
Shopping
Direct Contracting
Negotiated procurement
Single Source Procurement
Q28: Rehabilitation proceedings commences upon the issuance of the Commencement Order. Stay or
Suspension Order is the effect of the issuance of commencement order.
First statement if correct while second statement is incorrect
First statement is incorrect while second statement is correct
Both statements are correct
Both statements are incorrect
Q29: The following labels and marks must be made on the consumer products, except:
Registered brand name
Registered business name
Active ingredients
Quality of contents
Direction for use
None of the above
Q30: Rehabilitation is the restoration of a debtor to a condition of successful operation and solvency.
Rehabilitation contemplates a continuance of corporate life.
First statement if correct while second statement is incorrect
First statement is incorrect while second statement is correct
Both statements are correct
Both statements are incorrect
Q31: What are the usual grounds for dishonour of check?
Closed account
Stop payment order
Drawn against insufficient funds
Drawn without valuable consideration
Both a and b
Both a and c
Both b and d
Q32: How much is the insured amount for bonds and securities under the PDIC Law?
P1,000,000.00
P500,000.00
P300,000.00
None of the above.
Q33: X issued a check to Y amounting to P1,000,000.00 drawn against Z bank. When presented for
payment the check was dishonoured for the reason account closed. Is X liable for violation of Batas
Pambansa Blg. 22 and estafa under Revised Penal Code?
