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Regulatory Framework and Legal Issues in Business

Provides essential knowledge and insights on the legal and regulatory landscape of business, covering topics such as contracts, and intellectual property.

regulatory framework

legal issues

business law

compliance

government regulations

corporate governance

intellectual property

contract law

antitrust

employment law

tax law

consumer protection

data protection

environmental regulations

financial regulations.

The Privacy Commissioner and the two Deputy Privacy Commissioners shall be appointed by the President of the Philippines for a term of 3 years.

  • True
  • False

This mode of delivery takes place by the mere consent or agreement of the contracting parties as when the vendor merely points to the thing sold which shall thereafter be at the control and disposal of the vendee.

  • traditio longa manu
  • traditio brevi manu
  • traditio symbolica
  • traditio constitutum possessorium

Which is false?

  • Lease of service (like in the case of master and servant) relates more to matters of mere manual or mechanical execution, in which the servant acts under the direction and control of the master while agency relates to commercial or business transactions.
  • In agency, the agent exercises discretionary powers, while in lease of service, the lessor (like a servant) ordinarily performs only ministerial functions.
  • In agency, three persons are involved: the principal, the agent, and the third person with whom the agent has contracted, while in lease of service, only two persons are involved: the lessor (master or employer) and the lessee (servant or employee).
  • In lease of service, the basis is representation, while in agency, it is employment.

It is a contract in the nature of an option to purchase if the goods prove satisfactory, the approval of the buyer being a condition precedent.

  • Sale by sample
  • Sale on trial or approval
  • Sale or return
  • Sale by description

Selling the security which the vendor does not own and borrowed only from another. This is not illegal per se but only regulated.

  • painting the tape
  • short sale
  • matched order
  • wash sale

The fine for unathorized processing of personal information ranges from P500,000 to P1,000,000.

  • True
  • False

It refers to an information that will affect the price of the security or would influence a person in deciding whether to buy, sell or hold a security which is not available to the public.

  • Material Non-Public Information

In general, the actions available for breach of the contract of sale of goods are the following except

  • None of the choices
  • action by the seller for damages for non-acceptance of the goods
  • action by the seller for payment of the price
  • action by the buyer for rescission or damages for breach of warranty

An uncertain event upon the happening of which the obligation (or right) subject to it is extinguished. Hence, the right acquired in virtue of the obligation is also extinguished.

  • suspensive condition
  • suspensive period
  • resolutory period
  • resolutory condition

It means that the property must not be subject to any claim of a third person.

  • Right to dispose property
  • Capacity to dispose of property
  • Free disposal of the property
  • Authority to dispose property

It refers to the transfer of possession of the original or a copy of a work or sound recording for a limited period, for non-profit purposes, by an institution the services of which are available to the public, such as public library or archive.

  • Public lending

This sale occurs where a seller sells things as being of a particular kind, the buyer not knowing whether the seller’s representations are true or false, but relying on them as true; or, as otherwise stated, where the purchaser has not seen the article sold and relies on the description given him by the vendor, or has seen the goods but the want of identity is not apparent on inspection.

  • sale by description
  • sale by sample
  • sale by description and sample
  • credit sale

The offeror will report the results of the tender offer by filing with the Commission, not later than _________ calendar days after the termination of the tender offer, copies of the final amendments to the form.

  • 10
  • 8
  • 5
  • 12

One whose business is to represent clients in legal proceedings.

  • Attorney at law
  • Factor
  • Auctioneer
  • Attorney-in-fact

It is a contract whereby the debtor secures to the creditor the fulfillment of a principal obligation, specially subjecting to such security immovable property or real rights over immovable property which obligation shall be satisfied with the proceeds of the sale of said property or rights in case the said obligation is not complied with at the time stipulated.

  • chattel mortgage
  • antichresis
  • pledge
  • real mortgage

The Privacy Commissioner shall enjoy the benefits, privileges and emoluments equivalent to the rank of Secretary.

  • True
  • False

The second procedure in the registration for sale and distribution of securities is the payment of the filing fees which shall not exceed 1/10 of ____________ of the aggregate price at which such securities are proposed to be offered.

  • 2%
  • 4%
  • 1%
  • 3%

It is the making of one or more copies of a work or a sound recording in any manner or form.

  • Reproduction

A tool used to identify the potential risk of existing personal or sensitive personal information on all agency's systems, technology, programs/processes, project or activities to an individual's privacy.

  • PRIVACY IMPACT ASSESSMENT

Which of the following is not a characteristic of contract of agency?

  • preparatory
  • principal
  • nominate
  • real

The Securities and Exchange Commission is composed of a Chairman and __________ Commissioners who are given a 7-year term and has security of tenure to protect them from political influence.

  • 7
  • 8
  • 6
  • 5

Mandatory Tender Offer applies to any person who intends to acquire at least _________ over a period of 12 months (previously 30, increased by the SEC pursuant to Section 72.1 of the SRC) of any class of any equity security of listed corporations or corporations with assets of at least P50,000,000 and having at least 200 shareholders who each have at least 100 shares .

  • 30%
  • 45%
  • 50%
  • 35%

Republic Act 3936 is known as Unclaimed Balances Law.

  • True
  • False

Loan where the bailor delivers to the bailee a non-consumable thing so that the latter may use it for a certain time and return the identical thing

  • none of the choices
  • commodatum
  • mutuum
  • simple loan

By this contract, a person binds himself to render some service or to do something in representation or on behalf of another, with the consent or authority of the latter.

  • contract of barter
  • contract of sale
  • contract of agency
  • contract of partnership

They are private directions which the principal may give the agent in regard to the manner of performing his duties as such agent but of which a third party is ignorant.

  • Guidelines
  • Instructions
  • Orders
  • Decrees

It occurs when an insider in possession of material non-public information buys or sells a security.

  • Insider Trading

It involves people providing information that the price of any security listed in the exchange will or is likely to rise or fall because of manipulative market operations of any one or more persons conducted for the purpose of raising or depressing the price of the security and thus inducing the purchase or sale of such security.

  • Making False or Misleading Statements
  • Pegging or Fixing or Stabilizing the price of security
  • Circulating or Disseminating Information On Share Price Movement
  • Short Sale

Which is not an essential element of agency?

  • There is consent, express or implied, of the parties to establish the relationship.
  • The agent acts for himself.
  • The object is the execution of a juridical act in relation to third persons.
  • The agent acts within the scope of his authority.

Agency where the agent receives compensation for his services.

  • ostensible or representative
  • couched in specific terms
  • onerous
  • simple or commission

It involves an intensive selling campaign through numerous salesmen by telephone or through direct mail offerings for securities of either a certain type or from a specific issuer.

  • Painting the tape
  • Boiler Room Operations
  • Hype and Dump
  • Squeezing the float

It is constituted from the moment a person receives a thing belonging to another, with the obligation of safely keeping it and of returning the same.

  • mortgage
  • loan
  • deposit
  • pledge

Which of the following is incorrect?

  • In sale, there is no preexisting credit, while in dation in payment, there is preexisting credit.
  • In dation in payment, there is more freedom in fixing the price than in sale.
  • In sale, the cause is the price paid, from the viewpoint of the seller, or the thing sold, from the viewpoint of the buyer, while in dation in payment, the extinguishment of the debt, from the viewpoint of the debtor, or the object acquired in lieu of the credit, from the viewpoint of the creditor.
  • In sale, obligations are created, while in dation in payment, obligations are extinguished.

The Privacy Commissioner and the two Deputy Privacy Commissioners may be reappointed for another term of how many years?

  • 3

DICT stands for

  • Department of Information and Communications Technology

It refers to communication by whatever means of any advertising or marketing material which is directed to particular individuals.

  • Direct marketing

It is an agreement whereby one of the parties obligates himself to deliver something to the other who, on his part, binds himself to pay therefor a sum of money or its equivalent.

  • contract of pledge
  • contract of partnership
  • contract of barter
  • contract of sale

COP stands for

  • Compliance Officer for Privacy

Republic Act 6426 is also known as Foreign Currency Deposits Act.

  • True
  • False

The rights in a mark shall be acquired through

  • registration

Anti-Graft and Corrupt Practices Act is also known as Republic Act 3091.

  • True
  • False

Should the buyer take possession of the goods or should the seller send them? In other words, where is the place of delivery?

  • the place of delivery is the seller’s residence
  • the place of delivery is the seller’s place of business
  • the place of delivery is that agreed upon
  • the place of delivery is that determined by usage of trade

One who is engaged for others on a commission; a negotiator between other parties, never acting in his own name but in the name of those who employed him.

  • Commission agent
  • Lessor
  • Lessee
  • Broker

The rights to a trademark shall be __ years from registration.

  • 10

Republic Act No. 8293 took effect on what date?

  • January 1, 1998

It is a kind of waiver of eviction where the waiver is voluntarily made by the vendee without the knowledge and assumption of the risks of eviction.

  • Dacion en pago
  • Intencionada
  • Consciente
  • Dolo

It is a contract and a receipt for the transport of goods and their delivery to the person named therein, to order, or to bearer.

  • Dock warrant
  • Warehouse receipt
  • Quedan
  • Bill of lading

Actors, singers, musicians, dancers and other persons who act, sing, declaim, play in, interpret or otherwise perform literary and artistic work.

  • [No Answer]

The action for rescission or reduction of the price must be brought within the proper period — 6 months from the delivery of the thing sold or within _____________________ from the date of the delivery in case of animals

  • 40 days
  • 30 days
  • 20 days
  • 10 days

One which, although it lacks the proper formalities or other requisites of a mortgage required by law, nevertheless reveals the intention of the parties to burden real property as a security for a debt, and contains nothing impossible or contrary to law.

  • judicial
  • voluntary
  • equitable
  • legal

It implies the possession by two or more creditors of equal rights or privileges over the same property or all of the property of a debtor.

  • Partnership
  • Co-ownership
  • Concurrence of credits
  • Preference of credits

It may be defined as the judicial process, whereby the vendee is deprived of the whole or part of the thing purchased by virtue of a final judgment based on a right prior to the sale or an act imputable to the vendor.

  • eviction
  • extinguishment
  • deprivation
  • loss of right

As a deposit insurer, the PDIC is empowered to examine and investigate banks.

  • True
  • False

If the vendor was aware of the hidden defects in consequence of which the thing sold was lost, he shall bear the loss because he acted in bad faith. In such case, the vendee has the right to recover

  • the price paid, the expenses of the contract and damages
  • the price paid and the expenses of the contract
  • the price paid and damages
  • the expenses of the contract and damages

The seller guarantees that he has a right to sell the thing sold and to transfer ownership to the buyer who shall not be disturbed in his legal and peaceful possession thereof

  • Implied warranty as to seller’s title
  • Implied warranty as to fitness or merchantability
  • Express warranty
  • Implied warranty against hidden defects or unknown encumbrance

It establishes policies and implements measures and procedures that guarantee the safety and security of personal data under control and custody, thereby upholding an individual's data privacy rights.

  • DATA PRIVACY MANUAL

It is the power of the agent to affect the legal relations of the principal by acts done in accordance with the principal’s manifestation of consent to him.

  • privilege
  • right
  • grant
  • authority

Guaranty required by a court to guarantee the eventual right of one of the parties in a case.

  • judicial
  • personal
  • real
  • legal

One employed to do all acts that the principal may personally do, and which he can lawfully delegate to another the power of doing.

  • particular agent
  • universal agent
  • general agent
  • special agent

A unilateral promise or offer to sell or to buy a thing which is not accepted creates no juridical effect or legal bond. Such unaccepted imperfect promise or offer is called

  • policitation
  • option
  • subrogation
  • novation

Which is not one of the similarities between chattel mortgage and pledge?

  • Both constitute a lien on the property.
  • Both are constituted only on personal property.
  • Both are divisible.
  • Both are executed to secure performance of a principal obligation.

It is the extinction of an obligation through the creation of a new one which substitutes it by changing the object or principal conditions thereof, substituting a debtor, or subrogating another in the right of the creditor.

  • Compromise
  • Remission
  • Novation
  • Payment

The sale of a thing not yet in existence subject to the condition that the thing will exist and on failure of the condition, the contract becomes ineffective and hence, the buyer has no obligation to pay the price.

  • sale on credit
  • ordinary sale
  • Emptio rei speratae
  • emptio spei

It is a contract by virtue of which the debtor delivers to the creditor or to a third person a movable or document evidencing incorporeal rights for the purpose of securing the fulfillment of a principal obligation with the understanding that when the obligation is fulfilled, the thing delivered shall be returned with all its fruits and accessions.

  • Loan
  • Pledge
  • Mortgage
  • Guaranty

Republic Act No. 7942 is also known as the Philippine Mining Act of 1995.

  • True
  • False

The term of a patent shall be __ years from the filing date of the application.

  • 20

It is a bar which precludes a person from denying or asserting anything contrary to that which has been established as the truth by his own deed or representation either express or implied.

  • Estoppel
  • Termination
  • Suspension
  • Extinguishment

Republic Act No. __ is otherwise known as the National Caves and Cave Resources Management Protection Act.

  • 9072

The Privacy Commissioner must be at least 30 years of age.

  • True
  • False

It means the name or designation identifying or distinguishing an enterprise.

  • trade name

Under the law, agency may be terminated by the subsequent acts of the parties. Which of the following is not an example of extinguishment by subsequent acts of the parties?

  • revocation
  • accomplishment of the object or purpose of the agency
  • mutual consent

Which is not a characteristic of a contract of pledge?

  • accessory
  • unilateral
  • consensual
  • subsidiary

He is a person whose relationship or former relationship to the issuer gives or gave him access to material non-public information.

  • Insider

Elements which may be present or absent depending on the stipulations of the parties, such as conditions, interest, penalty, time or place of payment, etc.

  • Accidental Elements
  • Essential elements
  • None of the choices
  • Natural Elements

Which of the following is not a principal obligation of the vendor?

  • to transfer the ownership of the determinate thing sold
  • all of the choices are principal obligations of vendor.
  • to deliver the thing, with its accessions and accessories, if any, in the condition in which they were upon the perfection of the contract
  • to warrant against eviction and against hidden defects

Design patent requires novelty and ornamentality.

  • True
  • False

By this, one acquires ownership and other real rights through the lapse of time in the manner and under the conditions prescribed by law. In the same way, rights and actions are lost by prescription.

  • authority
  • prescription
  • virtue
  • eviction

Years of imprisonment for processing of sensitive personal information for unauthorized purposes.

  • 2 to 7 years

No warranty of title is implied in a sale by one not professing to be the owner.

  • None of the choices
  • “As is and where is” sale
  • Sale of second-hand articles
  • Sale by virtue of authority in fact or law

Placing of purchase or sale order, at or near the close of the trading period in order to affect the closing price likewise affecting the opening price the following day.

  • Matched Order
  • Painting the tape
  • Squeezing the float
  • Marking the close

The PDIC, as a receiver and liquidator of closed banks, shall control, manage and administer the affairs of the bank.

  • True
  • False

It is a statement or representation made by the seller of goods, contemporaneously and as a part of the contract of sale, having reference to the character, quality, or title of the goods, and by which he promises or undertakes to insure that certain facts are or shall be as he then represents them.

  • warranty
  • guaranty
  • assurance
  • security

One who is given authority by his principal to do a particular act not of a legal character.

  • Attorney-in-fact
  • Attorney at law
  • Factor
  • Cashier in bank

Majority of the members of the Secretariat must have served for at least 10 years in any agency of the government that is involved in the processing of personal information.

  • True
  • False

Goods to be manufactured (like the sale of milk bottles to be manufactured with the name of the buyer pressed in the glass), raised (like the sale of the future harvest of palay from a ricefield), or acquired (like the sale of a definite parcel of land the seller expects to buy).

  • fungible goods
  • future goods
  • dry goods
  • existing goods

It is any practice or method of dealing having such regularity of observance in a place, vocation or trade as to justify an expectation that it will be observed with respect to the transaction in question.

  • transaction
  • usage of trade
  • commerce of men
  • course of dealing

In a "By" account (Juan by Pedro), Juan is the depositor.

  • True
  • False

It refers to any and all forms of data which under the Rules of Court and other pertinent laws constitute privileged communication.

  • Privileged information

It is a contract whereby one of the parties delivers to another money or other consumable thing with the understanding that the same amount of the same kind and quality shall be paid.

  • Commodatum
  • Mutuum
  • None of the choices
  • Precarium

By this, a person binds himself to the creditor to fulfill the obligation of the principal debtor in case the latter should fail to do so.

  • mortgage
  • deposit
  • loan
  • guaranty

Constructive delivery is a general term comprehending all those acts which, although not conferring physical possession of the thing, have been held by construction of law equivalent to acts of real delivery. It may be effected in any of the following ways except

  • traditio constitutum possessorium
  • traditio brev manu
  • traditio symbolica
  • traditio longa manu

The person or the legal entity who or which takes the initiative and has the responsibility for the first fixation of the sound of a performance or other sounds or the representation of sounds.

  • [No Answer]

Years of imprisonment for unauthorized processing of sensitive information range from 3 to 6 years.

  • True
  • False

In an "ITF" account (Juan ITF Pedro), who is the depositor?

  • Pedro

By this contract, the creditor acquires the right to receive the fruits of an immovable of his debtor, with the obligation to apply them to the payment of the interest, if owing, and thereafter to the principal of his credit.

  • antichresis
  • pledge
  • chattel mortgage
  • real mortgage

One whose business is to receive and sell goods for a commission, being entrusted with the possession of the goods involved in the transaction

  • factor
  • auctioneer
  • attorney-in-fact
  • broker

It is otherwise known as Republic Act No. 8293, as amended by Republic Act No. 10372.

  • Intellectual Property Code Of The Philippines

FAO stands for

  • For the Account of

It is the remedy available to the mortgagee by which he subjects the mortgaged property to the satisfaction of the obligation to secure which the mortgage was given.

  • shutdown
  • eviction
  • foreclosure
  • compromise

Reportorial requirements shall apply to an issuer with assets of at least

  • P30,000,000
  • P40,000,000
  • P20,000,000
  • P50,000,000

A fine of P100,000 - P500,000 is imposed for improper disposal of personal information.

  • True
  • False

Years of imprisonment for accessing personal information due to negligence.

  • 1 to 3 years

It means any visible sign capable of distinguishing the goods or services of an enterprise and shall include a stamped or marked container of goods.

  • mark

Republic Act No. __ is otherwise known as the Terrorism Financing Prevention and Suppression Act of 2012.

  • 10168

Principle of Proportionality: The processing of personal data by the company shall be compatible with a declared and specified purpose which must not be contrary to law, morals or public policy.

  • True
  • False

Which of the following relates to personal acts?

  • A member of the board of directors or trustees of a corporation cannot validly act by proxy.
  • Since under our Constitution aliens are not allowed to own private agricultural lands, an alien cannot purchase a land through a Filipino agent.
  • The law on agency governing civil cases has no application in criminal cases. When a person participates in the commission of a crime, he cannot escape punishment on the ground that he simply acted as an agent of another party.
  • Persons who, because of their position and relation with the persons under their charge or property under their control, are prohibited from acquiring said property, cannot acquire the same through the mediation of another.

Which of the following is false regarding earnest money and option money?

  • When earnest money is given, the buyer is bound to pay the balance, while the would-be buyer who gives option money is not required to buy.
  • Earnest money is part of the purchase price, while option money is the money given as distinct consideration for an option contract.
  • Earnest money is given only where there is already a sale, while option money applies to a sale not yet perfected.
  • All of the choices are true.

The principal cannot deny the existence of the agency after third parties, relying on his conduct, have had dealings with the supposed agent. This method of creating an agency is known as

  • agency by ratification
  • couched in general terms
  • couched in specific terms
  • agency by estoppel or implication

It has been defined as “an establishment which provides lodging and parking and in which the rooms are usually accessible from an outdoor parking area.”

  • Inn
  • Hotel
  • Apartment
  • Motel

ITF stands for In Trust For.

  • True
  • False

Under Section 21 of the PDIC Charter, payment of an insured deposit to any person by PDIC shall discharge the PDIC.

  • True
  • False

The making, using, offering for sale, selling or importing a patented product or a product obtained directly or indirectly from a patented process, or the use of a patented process without the authorization of the patentee constitutes

  • patent infringement

Right of the mortgagor in case of judicial foreclosure to redeem the mortgaged property after his default in the performance of the conditions of the mortgage but before the confirmation of the sale of the mortgaged property.

  • neither equity nor right of redemption
  • Both equity and right of redemption
  • Equity of redemption
  • Right of redemption

DPO stands for

  • Data Protection Officer

Trust accounts are also covered by the bank secrecy law.

  • True
  • False

Which of the following is not one of the characteristics of contact of sale?

  • Commutative
  • Accessory
  • Consensual
  • Onerous

Which of the following is false?

  • “Sale or return” is a sale subject to a suspensive condition, while sale on trial is subject to a resolutory condition.
  • In “sale or return,” the risk of loss or injury rests upon the buyer, while in sale on trial, the risk still remains with the seller.
  • “Sale or return” depends entirely on the will of the buyer, while sale on trial depends on the character or quality of the goods.
  • In “sale or return,” the ownership of the goods passes to the buyer on delivery and subsequent return of the goods reverts ownership in the seller, while in sale on trial, the ownership remains in the seller until the buyer signifies his approval or acceptance to the seller.

Agency where the agent acts in the name and representation of the principal.

  • simple or commission
  • couched in specific terms
  • couched in general terms
  • ostensible or representative

Republic Act No. 8293 is otherwise known as the

  • Intellectual Property Code of the Philippines

It is a crime committed by any person knowing that any monetary instrument or property represents, involves or relates to the proceeds of any unlawful activity.

  • MONEY LAUNDERING

He is the natural person who has created the work.

  • Question 42
  • Correct
  • Mark 1.00 out of 1.00
  • Not flaggedNot flaggedFlag question

It is a grant issued by the government to an inventor, designer or maker, the right to exclude others from making, using or selling his invention, design or utility model within the country for a specific term, in exchange of his patentable disclosure.

  • patent

Which is not a security?

  • Investment contracts, certificates of interest or participation in a profit sharing agreement, certifies of deposit for a future subscription.
  • Fractional undivided interests in oil, gas or other mineral rights
  • Proprietary or non-proprietary membership certificates in corporations
  • An investment of money

PDIC stands for

  • PHILIPPINE DEPOSIT INSURANCE CORPORATION

Republic Act No. 10173 is also known as Data Privacy Act.

  • True
  • False

Deposit wherein the delivery is made by the will of the depositor or by two or more persons each of whom believes himself entitled to the thing deposited

  • voluntary
  • none of the choices
  • judicial
  • necessary

In a "FAO" account (Juan FAO Pedro), Pedro is the depositor.

  • True
  • False

It is obligatory for every bank to report, in a sworn statement, to the Treasurer of the Philippines of deposits that have not been touched for a period of 10 years or held in favor of persons known to be dead.

  • True
  • False

Which of the following rights may be the object of a contract of sale?

  • right to vote
  • marital and parental rights
  • right of usufruct
  • right to public office

It is a warranty that goods are reasonably fit for the general purpose for which they are sold.

  • implied warranty
  • warranty of merchantability
  • express warranty
  • warranty of fitness

It refers to an individual whose personal information is processed.

  • Data subject

It is a contract whereby the parties, by reciprocal concessions, avoid a litigation or put an end to one already commenced. It is the amicable settlement of a controversy.

  • Renunciation
  • Expromission
  • Extinguishment
  • Compromise

Splitting of deposit is a criminal act punishable by imprisonment of not less than how many years?

  • 6

It may be defined as a relation which exists where one person has undertaken an obligation and another person is also under a direct and primary obligation or other duty to a third person, who is entitled to but one performance, and as between the two who are bound, the one rather than the other should perform.

  • suretyship
  • pledge
  • guaranty
  • mortgage

Special powers of attorney are necessary in the following cases except

  • To lease any real property to another person for one year.
  • To make gifts, except customary ones for charity or those made to employees in the business managed by the agent.
  • To enter into any contract by which the ownership of an immovable is transmitted or acquired either gratuitously or for a valuable consideration.
  • To compromise, to submit questions to arbitration, to renounce the right to appeal from judgment, to waive objections to the venue of an action or to abandon a prescription already acquired.

It means the transmission by wireless means for the public reception of sounds or of images or of representations thereof.

  • broadcasting

Any transaction in a security which involves no change in the beneficial ownership.

  • marking the close
  • wash sale
  • painting the tape
  • matched order

One employed to transact all the business of his principal, or all business of a particular kind or in a particular place, or in other words, to do all acts, connected with a particular trade, business, or employment.

  • general agent
  • particular agent
  • special agent
  • universal agent
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