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Long Quiz Answer Key

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0% found this document useful (0 votes)
25 views5 pages

Long Quiz Answer Key

Uploaded by

Elle Legaspi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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REGULATORY FRAMEWORK AND LEGAL ISSUES IN BUSINESS

MCQ. Encircle the letter of the correct answer.

1. In the following instances the price is considered certain, except:


a. The parties have fixed or agreed upon a definite amount.
b. The price is fixed by one of the parties.
c. The price is certain with reference to another thing certain.
d. The determination of the price is left to the judgment of a specific person.

2. Statement I: B.P. 22 deals with the criminal offense of issuing checks.


Statement II: B.P 22 aims to protect the credibility and stability of the country’s financial system by
discouraging fraudulent activities related to negotiable instruments.
a. Statement I is correct
b. Statement II is correct
c. Both statements are correct.
d. Both statements are incorrect.

3. It is a proof of compliance with the quality and safety standards under the Consumer Protection Act.
a. Philippine Quality Certification
b. Philippine Standard Certification
c. Philippine Standard and Quality Certification
d. Philippine Product Certification

4. The following imported products are prohibited to enter the Philippine market, except:
a. Harmful products
b. Low quality products
c. Manufactured products
d. Defective products

5. Statement I: Limited warranty exists if the warranty does not meet the minimum standards set forth
under the Consumer Protection Act.
Statement II: Full warranty exists if the warranty meets the minimum standards set forth under the
Consumer Protection Act.
a. Statement I is correct.
b. Statement II is correct.
c. Both statements are correct.
d. Both statements are incorrect.

6. Statement I: The retailer shall be jointly and severally liable under the warranty in case of failure of
both the manufacturer and distributor to honor the warranty.
Statement II: The retailer cannot recover from the distributor or manufacturer the expenses and
costs incurred by him which are necessary to honor the warranty.
a. Statement I is correct.
b. Statement II is correct.
c. Both statements are correct.
d. Both statements are incorrect.

7. Statement I: Distributors and retailers shall keep a record of all purchase covered by a warranty for a
period of 1 year.
Statement II: the manufacturer or distributor shall immediately honor the warranty upon
presentment of the warranty card or official receipt.
a. Statement I is correct.
b. Statement II is correct.
c. Both statements are correct.
d. Both statements are incorrect.

8. In a breach of express warranty under the Consumer Protection Act, if the consumer elects to have
the product repaired, the warranty work must be made to conform to the express warranty within ___
days by either the warrantor or his representative.
a. 10 days
b. 20 days
c. 30 days
d. 35 days

9. Statement I: the Lemon Law covered brand new convertibles purchased in the Philippines which are
reported by a consumer to be in a nonconformity with the vehicle’s manufacturer or distributor’s
standard specification within 12 months from the date of original delivery to the consumer.
Statement II: The purpose of Lemon Law is to accord full protection to consumers in the sale of
motorcycles against business and trade practices which are deceptive, unfair, or otherwise inimical
to consumer and the public interest.
a. Statement I is correct.
b. Statement II is correct.
c. Both statements are correct.
d. Both statements are incorrect.

10. The consumer may invoke his rights under the Lemon Law if, at any time within the Lemon Law
rights period, there has been at least __ separate repair attempts in the same complaint and the
nonconformity issue remains unresolved.
a. 1
b. 2
c. 3
d. 4

11. Any device, written, printed, affixed or attached to a consumer product or displayed in a consumer
repair or service establishment for the purpose of indicating the retail price per unit or service.
a. Official receipt
b. Inventory
c. Sign
d. Price tag

12. The following nonconformities are excluded in the coverage of Lemon Law, except:
a. Damage to the vehicle due to accident or force majeure.
b. Condition that substantially impairs the use of a brand new motor vehicle.
c. Modifications not authorized by the manufacturer, distributor, authorized dealer or retailer.
d. Abuse or neglect of the brand new motor vehicle.

13. The following are the functions of the Department of Trade and Industry under the Consumer
Protection Act, except:
a. Issues authorization to market monitoring agencies to ensure that products comply with the
quality and safety standards.
b. Issues business permits.
c. Recalls products which cause immediate harm to consumers.
d. Conducts investigations and maintains records of product-related incidents to improve the
prescribed standards.

14. Who shall be criminally liable for a check drawn by corporation in case of violation of B.P. 22?
a. The indorser who signed the check.
b. The holder who signed the check
c. The person who signed the check on behalf of the corporation.
d. The corporation itself.

15. A latin term used in law to refer to conduct which constitutes an unlawful act only by virtue of
statute.
a. Malum in se
b. Malum prohibitum
c. Malum necessarium
d. Malum dicte

16. When is making, drawing, issuance of a check out of insufficient fund presented to be deemed as a
prima facie evidence of knowledge of such insufficiency of funds or credit?
a. 5 days from the date of the check.
b. 5 days after receiving notice.
c. Within 90 days after the maturity of the check.
d. Within 90 days from the date of the check.

17. The following are the government agencies tasked to enforce policies and regulation to ensure the
quality of products and services available in the market, except:
a. Department of Trade and Industry
b. Department of Health
c. Department of Agriculture
d. Department of Environment and Natural Resources

18. The following statements should be indicated in the packaging of consumer products domestically
sold, except:
a. Its duly registered business name.
b. Its general make or active ingredients.
c. The address of the manufacturer.
d. Its duly registered logo.
19. The following sales are valid, except:
a. Sale of things having potential existence.
b. Sale of future inheritance.
c. Sale of determinate thing.
d. Sale of things subject to a resolutory condition.

20. Which of the following cannot be the object of a contract of sale:


a. Things
b. Rights
c. Services
d. None of the above

21. A contract of sale is in a stage of conception when:


a. The contract is perfected.
b. There is meeting of minds.
c. Negotiation are in progress.
d. The determinate thing is delivered.

22. Implied warranties included all the following, except:


a. Warranty against hidden defects.
b. Warranty against eviction.
c. Warranty against apparent encumbrances.

23. A contract of sale with conditions and warranties shall be governed primarily by:
a. Recto law
b. Consumer Protection Act
c. Maceda Law
d. Civil Code

24. When is the ownership of the thing sold transferred to the buyer?
a. Upon perfection of the contract.
b. Upon payment of the purchase price.
c. Upon delivery of the thing sold.
d. Upon the will of the seller.

25. As a general rule, a contract of sale involving a piece of land is void:


a. Between minors.
b. Between husband and wife.
c. Between parents and children.
d. Between insane persons.

26. The following contracts of sale are covered by Statute of Frauds, except:
a. Sale of parcel of land.
b. Sale of laptop worth PhP100,000.00
c. Sale of bag worth PhP20,000.00
d. Sale of future things

27. The following are the essential elements of contracts of sale, except:
a. Determinate subject.
b. Price certain in money or its equivalent.
c. Delivery
d. Consent.

28. As a rule, is the price is not certain, the sale is voidable.


a. True
b. False
c. Somewhat true
d. Somewhat false
29. It is the stage where the parties perform their respective undertakings.
a. Negotiation
b. Perfection
c. Consummation
d. Conception
30. The following are the remedies of unpaid seller, except:
a. Right of stopping the goods in transit in case of insolvency of the buyer.
b. Right to repurchase.
c. Right to rescind the sale.
d. Right of resale.

31. Sale of things having potential existence.


a. Void
b. Voidable
c. Unenforceable
d. Valid
32. Sale of vain hope and expectancy.
a. Void
b. Voidable
c. Unenforceable
d. Valid

33. A buyer who bought an undivided interest in a thing becomes a co-owner of the thing.
a. True
b. False
c. Somewhat true
d. Somewhat false

34. One of the contracting parties obligates himself to transfer the ownership of, and to deliver a
determinate thing, and the other to pay therefor a price certain in money or its equivalent.
a. Contract to Sell
b. Barter
c. Contract of Sale
d. Contract of Agency

35. It is an act by which one party parts with the title to and possession of the property, and the other
acquired the right and the possession of the same.
a. Delivery
b. Eviction
c. Transfer
d. Delay

36. It is a delivery by operation of law.


a. Actual delivery
b. Real delivery
c. Legal delivery
d. Quasi-traditio

37. A contract of sale which is not subject to any condition.


a. Absolute sale
b. Conditional sale
c. Contract to sell
d. Contract for a piece of work

38. Period to file an action for rescission for violation of an implied warranty against hidden defects in
case of animals.
a. 30 days
b. 40 days
c. 50 days
d. 60 days

39. The money given as part of the purchase price and as proof of the perfection of the contract.
a. Consideration
b. Purchase price
c. Option money
d. Earnest money
40. Statement I: Contract of sale is a nominate contract since it has a name specifically designated under
the law.
Statement II: Contract of sale is a principal contract since it is perfected by mere consent.
a. Statement I is correct.
b. Statement II is correct.
c. Both statements are correct.
d. Both statements are incorrect.

41. Eun seong orally sold a parcel of land to Hyun woo for PhP1Million. Based on the given scenario,
which of the following statements is not correct?
a. The contract between Eun seong and Hyun woo is unenforceable.
b. The contract is covered by Statute of Fraud.
c. Hyun woo may compel Eun seong to execute the required instrument.
d. Eun seong cannot file an action against Hyun foo to enforce the contract.

42. Statement I: the vendor must be legally capacitated to enter into a contract.
Statement II: minors cannot enter into contract of sale.
a. Statement I is correct.
b. Statement II is correct.
c. Both statements are correct.
d. Both statements are incorrect.
43. Statement I: Failure to pay the consideration results in a right to demand the fulfillment or
cancellation of the obligation under the existing valid contract of sale.
Statement II: Lack of consideration makes the contract voidable.
a. Statement I is correct.
b. Statement II is correct.
c. Both statements are correct.
d. Both statements are incorrect.

44. It takes place when the vendor reserves the right to repurchase the thing sold, with the obligation to
return to the vendee the price of the sale, expenses of the contract, and any other legitimate
payments made by reason of the sale, the necessary and useful expenses made on the thing sold and
other stipulation which may have been agreed upon.
a. Legal Redemption
b. Conventional redemption

45. The buyer of the thing has the right to the fruits of the thing:
a. From the time the thing bought is delivered.
b. From the time the obligation to deliver the thing bought arises.
c. From the time the sale is perfected.
d. From the time the fruits are delivered.

46. A kind of sale where ownership does not automatically transfer to the buyer upon fulfillment of the
condition, which is usually the payment of the price.
a. Contract of Abosolute Sale
b. Contract of Sale
c. Conditional Sale
d. Contract to Sell

47. Which of the following is not a requisite of the object of a contract of sale:
a. It must be determinate
b. It must be licit
c. It must be within the commerce o men
d. It must belong to the seller at the time of the perfection of the contract of sale.

48. Statement I: a negotiable document of title may be negotiated by delivery or indorsement of the
person to whose order the goods are deliverable.
Statement II: A non-negotiable document of title cannot be negotiated.
a. Statement I is correct.
b. Statement II is correct.
c. Both statements are correct.
d. Both statements are incorrect.

49. Statement I: The seller must deliver the thing sold and its accessions and accessories in the condition
in which they were upon the perfection of the contract.
Statement II: All the fruits shall belong to the buyer form the time of delivery.
a. Statement I is correct.
b. Statement II is correct.
c. Both statements are correct.
d. Both statements are incorrect

50. Statement I: If the consideration of the contract consists partly in money and partly in another thing,
the transaction shall be characterized by the manifest intention of the parties.
Statement II: If such manifestation is not clear, the transaction will be considered a barter if the value
of the thing given as part of the consideration does not exceed the amount of the money, otherwise, it
is sale.
a. Statement I is correct.
b. Statement II is correct.
c. Both statements are correct.
d. Both statements are incorrect.

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