Cubao-Fairview-Taytay SECOND SEMESTER SY 2015-2016
MID-TERM DEPARTMENTAL EXAMINATIONS 2 HRS BUSINESS LAW 4 SALES, AGENCY, LABOR & OTHER COMMERCIAL LAWS INSTRUCTIONS:
Select the correct answer for each of the following questions. Mark only one answer for each item by
shading
the corresponding letter of your choice on the answer sheet provided.
STRICTLY NO ERASURES ALLOWED. Use Pencil No. 2 only.
1. Which of the following is true? A. If the consideration of the contract consists partly in money and partly in another thing, it shall be considered a barter if the value of the thing given as a part of the consideration exceeds the amount of the money or its equivalent B. A guardian cannot purchase the property of the ward unless consent of ward is given C. If the price is uncertain sale is unenforceable D. The creditors of the vendor cannot make use of the right of redemption against the vendee, until they have exhausted the property of the vendor. 2. Which of the following is false? A. The husband and the wife cannot sell property to each other. B. Actual delivery of the thing or payment of the price is not required for the perfection of the sale. C. A sale is consummated upon delivery of the thing and the payment of the purchase price. D. Whenever option money is given in a contract of sale, it shall be considered as part of the price and as proof of perfection of the contract. 3. Which of the following is false? A. A contract to sell, even if accepted by the buyer is not an absolute sale. B. Bilateral promise to sell is binding on the promissory even if the promise is not supported by a consideration distinct from the price of the sale. C. Sales through letters or telegrams are deemed perfected only when acceptance by the buyer has been received by the seller. D. Sale, as a general rule, is an onerous and aleatory contract 4. Which of the following is false? A. As a general rule in a contract of sale, ownership passes to the buyer upon actual or constructive delivery. B. In a contract for a piece of work, the goods are manufactured for a specific person C. Dacion en pago is governed by the law on sales. D. Agents cannot acquire by purchase, even at a public auction, either in person or thru the mediation of another, the property whose administration or sale may have been entrusted to them, although the consent of the principal has been given. 5. Which of the following is true? A. The contract of agency is extinguished by the insanity of the agent but not of the principal. B. The agent is expected to carry out an agency although its execution would manifestly result in loss or damage to the principal. C. Two persons authorizing an agent to sell a property on their behalf are liable jointly to the agent. D. Agency is presumed to be for a compensation, unless there is proof to the contrary. 6. Also known as barter A. do ut des. C. faciout facias B. faciout des. D. do ut facias 7. One of the following is not an alternative remedy available to a seller of personal property on installment if buyer defaults. A. To go to court and ask the court to order delivery of the property B. To foreclose the chattel mortgage C. To sue for specific performance D. To take possession of the property and forfeit the amount paid by the buyer if stipulated
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8. Ynna needs a size 8 of a nike shoes available to the public for her boyfriend Angelo, but the same is not available so she placed an order for one. On the other hand, Angelo placed an order for size 6 of a ballet shoes for Ynna which is not ordinarily manufactured by the company. Which is correct? A. Both are contracts of sale B. Both are contracts for a piece of work C. First is a contract of sale, second is a contract for a piece of work D. First is a contract for a piece of work, second is a contract of sale 9. Shares of stock sold may be delivered by: A. actual traditio C. traditiobrevimanu B. traditiolongamanu D. quasi-traditio 10. Atoy sold her specific car to Buboy for Php1M payable in 10 equal installments. Atoy delivered the car to Buboy but a mortgage was constituted on the car to answer for the unpaid installments. Buboy paid the first 4 installments but failed to pay the next 3 installments. Atoyforeclosed the mortgaged property and sold it at public auction for P500,000. Which is correct? A. Atoycan recover from Buboy the balance of P100,000 even if there is no stipulation to that effect B. Atoy can recover from Buboy the balance of P100,000 if there is stipulation to that effect C. Atoy cannot recover the deficiency only if there is stipulation to that effect D. Atoycannot recover the deficiency even if there is stipulation to the contrary 11. Caloy placed an order for 1,000 pieces white collared shirts ranging in size from small to extra-
large from T’s shirt corporation. The specified sizes, although not then available, are manufactured
by the said corporation and consigned to its sales outlets regularly. Their contract is: A. Contract for a piece of work. C. Contract to sell B. Contract of sale. D. Contract of agency to sell 12. When goods are delivered to the buyer on "sale or return" for a period of 15 days, ownership of the good passes to the buyer upon: A. delivery of the goods B. expiration of 15 days C. acceptance by the buyer of the offer of the seller D. perfection of the contract 13. Digoy purchased from Epoy a parcel of land worth P600,000; P200,000 to be paid in cash and for the difference, he will convey his car worth P400,000. What kind of contract is this? A. Lease contract C. Contract to sell B. Contract of sale D. Barter 14. In distinguishing Earnest Money from Option Money, Earnest Money is: A. Given when there is no contract of sale. B. Given only when there is a perfected contract of sale. C. Given to bind the offerer in a unilateral promise to sell or to buy. D. Given as a separate consideration from the purchase price. 15. Fely sold and delivered her Laptop to Gerlie. It was agreed upon that within 10 days Gerliewill state and fix the price. On the 9th day, Gerlie called up Fely and stated the price at P20,000 to which Fely agreed. Is the sale perfected? A. No, at the time of the sale the price was not fixed. B. Yes, at the time of the sale the price was already known. C. Yes, the price stated and fixed by the buyer was accepted by the seller. D. No, the price was left to the discretion of one of the parties. 16. Constructive delivery by execution of public instrument A. tradition longa manu C. symbolical delivery B. delivery thru legal formalities D. tradition brevi manu 17. From the perfection of the contract of sale, the fruits pertain to: A. buyer C. guarantor B. seller D. vendor
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18. An oral contract of sale involving an immovable property is: A. voidable C. unenforceable B. rescissible D. void or inexistent 19. The state's right to take away private property for public purposes upon payment of just compensation, which is governed by special law: A. Escheat. C. Eminent Domain B. Expropriation. D. Police Power 20. A kind of constructive delivery: A. traditio incorporeal C. traditiolongamanu B. traditio actual D. traditio possession 21. A contract of sale whereby the seller acquires the right to redeem or repurchase the object of the sale from the buyer after a certain period agreed upon A. Equitable mortgage. C. Sale on sale or return B. Absolute sale D. Pacto de retro sale 22. What mode of extinguishing a contract of sale is effected when a person is subrogated upon the same terms and condition stipulated in the contract in the place of one who acquires a thing by onerous title? A. Compensation C. Novation B. Conventional redemption. D. Legal redemption 23. X, Y and Z were appointed by A as his agents to administer his building which were rented by various tenants while A was abroad. In the course of management, X caused through his fault damage to the building which was assessed at P45,000. A can claim: A. P 15,000 from each of X, Y and Z C. P45,000 from X. B. P 45,000 from X and Y D. P45,000 from either X, Y or Z. 24. Which of the following is not a mode of extinguishing a contract of agency? A. Dissolution of the firm or corporation which entrusted or accepted the agency B. Death, civil interdiction or insanity of the agent C. Withdrawal of the agent from the contract D. Appointment of a substitute agent 25. This is the mandate given by the principal to the agent. A. power C. option B. authority D. discretion 26. The process of taking away private property for public purposes upon payment of just compensation, which is governed by special law: A. Escheat. C. Eminent Domain B. Expropriation. D. Police Power 27. An oral contract of sale involving a wooden table sold for Php500 A. voidable B. unenforceable C. void or inexistent D. valid 28. Sale of young or offspring of animal not yet conceived at the time of perfection A. voidable B. unenforceable C. void or inexistent D. valid 29. Sale of vain hope A. voidable B. unenforceable C. void or inexistent D. valid 30. The sale of hope or expectancy A. voidable B. unenforceable C. void or inexistent D. valid 31. When there is a stipulation that the repurchase of the thing sold can be made anytime, the right can be exercised: A. any time under the principle of autonomy or freedom of the parties to stipulate B. within 10 years from the date of the contract C. after 4 years from the date of delivery D. within 4 years from the date of the contract
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32. X, Y and Z are co-owners of an undivided parcel of land. X sold his 1/3 interest to Z absolutely. Which is correct? A. Y may exercise his right of redemption on the interest sold by X to Z B. Y cannot exercise the right of redemption because the sale was made in favor of a co-owner C. The sale made by X to Z is void because it was not made in favor of a stranger D. Y may redeem only ½ of the interest sold by X to Z 33. Using the preceding number, suppose, instead of selling his interest to Z, X sold it to A, who can exercise the right of redemption? A. Both Y and Z C. Y only B. B. Y but not Z . D. X 34. There is dacion en pago when: A. the object is always existing and specific B. there is a greater degree of freedom in fixing the price C. there is no pre-existing obligation D. the cause is the price 35. Goods are deemed in transit A. From the time they are delivered by the seller to a common carrier or other bailee for transmission to the buyer, up to the time that the buyer or his agent takes delivery of the goods from the carrier or bailee. B. When the buyer intercepts and lawfully takes possession of the goods at any point before destination C. When the buyer accepts delivery of the goods upon arrival at destination D. When the carrier or bailee, upon arrival of the goods at destination, acknowledges to the buyer or his agent that he is holding the goods as bailee for the latter. 36. Warranty against hidden defect is: A. essential element C. natural element B. accidental element. D. common element 37. There is a contract of sale: A. When the goods are delivered to a distributor on consignment B. When the goods are delivered to a person on charge account. C. When goods are delivered to an agent to be sold by him and the agent is not liable to the manufacturer of the goods. D. When the manufacturer delivers the goods to an agent where the former retains the ownership and dictates the term of the sale. 38. Which of the following is not a characteristic of a contract of sale? A. Bilateral C. Consensual B. Gratuitous D. Nominate 39. In a contract of sale of personal property, the price of which is payable in installments, the vendor may exercise any of the following remedies, except A. Exact fulfillment of the obligation, should the vendee fail to pay any installment B.
Cancel the sale, should the vendee’s failure to
pay cover two or more installments C. Foreclose the chattel mortgage on the thing sold, if one has been constituted should
the vendee’s failure to pay cover two or more installments
D. Rescind the sale should the vendee fail to pay any installment. 40. Three of the following are elements of the vendor's right of stoppage in transitu. Which is the exception? A. The buyer must be insolvent. B. The goods must be in transit. C. The seller must be unpaid. D. The seller must be in possession of the goods. 41. A sold to B orally a parcel of land for P200,000.00. Delivery was made of the land. The payment of the price was to be made three (3) months later. At the end of the 3 month period A. B may refuse to pay claiming in his defense the statute of frauds B. B may return the parcel of land to A