MERCANTILE LAW 2015

1.

A. Yes, Nadine can recover da amount debited from her checking account because a
forge check is wholly inoperative, no right to retain the instrument, or to give discharge or
to enforce payment.... Hehehe ang sabot Ni ito ay akin lamang... Walang kinalaman ang
kasolokoyang admin Sa fb Na account Na ito... Honest answer Ko ito kahit Mali..

B. No, mangrs check is not good as cash. It is only a substitute for money and not a
money,da delivery of such check does not by itself, operate as payment.
A check whether mangr chck or ordinary check, is not legal tender and an offer of a
check paymnt is not a valid tender of paymnt and may be refused receipt by da obliged
or creditor (see pandic of commercial law by justice vitug).
C.. A B/E may b treated as P/N when.1) when it is ambigous dat der doubt weder it s a
b/e or p/n. 2) wen drawer n drawer are d same person. 3)wer da drawer is a fictitious
person 4) wer da person does hav da capacity to contract.
2. A. Yes, she has insurable interest before delivery because she insured the goods while
in transit. If something happens to the goods while in transit before delivery to her she
would still be able to recover for the damages or the insured amount.
B. Nope, premium must be fully paid. Unless they agree to partial installments,
insurance policy takes hold only after perfection of contract.
3. JASON CLAUSE, a stipulation in a charter party dat in case of maritime accident for
which da shipper is not responsible by law, contract or otherwise, da cargo shippers,
consignee or owners shall contribute wid da shipper in general average ( see pandect on
commercial law by justice vitug, page 293)
C. Yes, common carrier are required to exercise EXTRA ORDINARY DILIGENCE and
not just ordinary diligence.
4. Yes. It is not covered by the Trust Receipts Law. The true nature of Maine Den, Inc.s
transaction with Fair Bank is that of a contract of loan. The imported spare parts were
used as collateral. The trust receipt was a mere security to the obligation. Thus, Maine
Den, Inc. cannot be prosecuted for estafa.
5. A. Yes, ABC bank can refuse to honor the certification of default because X company
was not in default.
B. I don't think so. It has to be stated in the domestic letters of credit. My basis for the
answer is my gut feel.
6. A. Yes, the corporation is justified in not declaring dividends unless it is a party to such a
creditor who prohibits the declaration of dividends.
B. Watered down stocks dillute the shareholdings of other investors by allowing lower
than par stock issuance.
7. A. No. The Philippine company is estopped from challenging the capacity of the foreign
company to sue. A foreign corporation doing business in the Philippines without a license
may sue in Philippine courts a Filipino citizen or entity that had contracted with and
benefited from the transaction. Thereby, the Philippine company is estopped from
challenging the personality of the foreign company after having acknowledged the same
when the foreign company has been exporting goods to them for several years.

8. A. No. The corporation is not yet dissolved even though its certification is revoked.
B. Yes.
9. A. Yes, it violated the code. Qualification must be talking about citizenship. If allowed
foreigners may be able to purchase 51% to 100% of national interest industries for 15
days and exert undue influence. Thus, it should not be allowed and it ought to violate the
code.
10. If I were the judge, I would deny the motion to dismiss.
In the case of Pua v. Citibank, Sept. 16, 2013, civil suits falling under the SRC are under
the exclusive original jurisdiction of the RTC and hence, need not be first filed before
SEC, unlike Criminal cases where the latter body exercises primary jurisdiction.
Here, what is involved is a complaint for nullity of contract and recovery of a sum of
money, a civil suit under the SRC which the RTC has exclusive original jurisdiction.
Hence, the motion to dismiss shall be denied.
11. A.) Because the reasons why the BSP is the lender of last resort is necessary in the
banking sector can be applied to the government bond market analogously. Just like
banks that lend long-term while borrowing short-term, governments have highly illiquid
assets like infrastructure and maturing debt. If they do not succeed in rolling over their
debt they become illiquid just as banks that run out of liquidity and are not supported by
a lender of last resort. The distrust of investors can then increase the rates the
government has to pay on its debt, which in a self-fulfilling way leads to a solvency crisis.
Because banks hold the greatest proportion of government debt, not saving the
government may make it necessary to save the banks in turn. The most important
mandate of BSP to be a lender of last resort in the government bond markets is to
prevent banks from being pushed into a bad equilibrium.
12. A. Yes. Under the law, Securities issued by the Philippine Government are considered
as of an absolutely confidential nature and may not be examined, inquired or looked into
by any person, government official, bureau or office. Hence, the banks refusal to the
request of the Bureau of Internal Revenue for disclosure is justified.
13. A. Yes, the bank may acquire the shares of a cement manufacturer by loaning the
amount to another sister corporation at low or near zero interest rates and getting the
sister company buy the cement manufacturer.
B. Current prevailing market interest rate (depending on the tenor of the debt) in the
corporate bond markets.
14. ) Trademark = Trademarks identify the goods of one manufacturer from the goods of
others. Trademarks are important business assets because they allow companies to
establish their products' reputation without having to worry that an inferior product will
diminish their reputation or profit by deceiving the consumer. Trademarks include words,
names, symbols and logos. The intent of trademark law is to prevent consumer
confusion about the origin of a product.
In the United States trademarks may be protected by both Federal statute under the
Lanham Act, 15 U.S.C. 1051 - 1127, and states' statutory and/or common laws.
Congress enacted the Lanham Act under its Constitutional grant of authority to regulate
interstate and foreign commerce.
Copyright = The owner of a copyright has the right to exclude any other person from
reproducing, preparing derivative works, distributing, performing, displaying, or using the
work covered by copyright for a specific period of time. Copyrighted work can be a
literary work, musical work, dramatic work, pantomime, choreographic work, pictorial

work, graphic work, sculptural work, motion picture, audiovisual work, sound recording,
architectural work, mask works fixed in semiconductor chip products, or a computer
program. Only a concrete "medium of expression" can be copyrighted, facts, ideas,
procedures, processes, systems, methods of operation, concepts, principles or
discoveries cannot themselves be copyrighted. Items to be copyrighted must be original
and not the result of copying another copyrighted property.
Patent = Patents grant an inventor the right to exclude others from producing or using
the inventor's discovery or invention for a limited period of time. In order to be patented
an invention must be novel, useful, and not of an obvious nature. There are three types
of patents: a) "utility patent" which includes a process, a machine (mechanism with
moving parts), manufactured products, and compounds or mixtures (such as chemical
formulas); b) "design patent" which is a new, original and ornamental design for a
manufactured article; and c) "plant patent" which is a new variety of a cultivated
asexually reproduced plant. The Federal agency charged with administering patent laws
is the Patent and Trademark Office. If an application is rejected, the decision may be
appealed to the Patents Office's Board of Appeals, with further or alternative review
available from the United States Court of Appeals for the Federal Circuit, or in the United
States District Court for the District of Columbia. Manufacture of a product upon which
there is an existing patent is "patent infringement" which can result in a lawsuit against
the infringer and substantial damages may be granted.
B) The doctrine of equivalents is a judicially created doctrine of patent law. If one makes
a minor departure from the patent claim and, therefore, does not literally infringe, one
may nevertheless be held to be an infringer if one achieves substantially the same
function in substantially the same way to obtain substantially the same result.
This results from an equitable balancing of interests, leading to the conclusion that one
who makes an insubstantial change should not be permitted to obtain the benefit of the
invention while avoiding infringement. The doctrine of equivalents allows a patent owner
to prove infringement even when the claims are not literally infringed.
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