Reviewer law - Lecture notes 1 PDF

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BOUNCING CHECK LAW For violation of BP 22 the penalty may either be Imprisonment or Fine only. It could never be both because it is always in alternative. (T) Estafa would not arise if the check is issued for the Payment of a pre-existing obligation. (T) Bona fide is a defense in BP 22. (F) Prescrip...

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BOUNCING CHECK LAW 1. For violation of BP 22 the penalty may either be Imprisonment or Fine only. It could never be both because it is always in alternative. (T) 2. Estafa would not arise if the check is issued for the Payment of a pre-existing obligation. (T) 3. Bona fide is a defense in BP 22. (F) 4. Prescriptive period of the BP 22 is four years from the commission of the offense or if not known at the time, from the discovery thereof. (T) 5. BP 22 may be committed by merely issuing a worthless check. (F) 6. Deceit or Fraud must be present in order for one to be convicted of Estafa. (T) 7. Damage must be present in order for one to be convicted of Estafa. (T) 8. Deceit or Fraud must be present in order for one to be convicted of the violation of the Bouncing Checks Law. (F) 9. Damage must be present in order for one to be convicted of violation of Bouncing Check Law. (F) 10. For conviction to lie under the Bouncing Checks Law, the notice of dishonor must always be in writing. (T) 11. A conviction of the crime of estafa precludes a conviction under the bouncing Checks Law. (F) 12. The making, drawing, and issuance of any check to apply for account or value constitute a violation of Bouncing Check Law.(F) 13. The making, drawing, and issuance of any check to apply for account or value constitute a crime of Estafa. (F) 14. Such maker or drawer will not be liable if he pays the holder thereof the amount of check within 5 days after receiving notice.(T) 15. The making, drawing, and issuance of any check when refused by the drawee because of insufficient fund when presented within 6 months is a prima facie evidence of knowledge of such insifficiency.(F) 16. In case of forgery, the check is rendered wholly inoperative.(F) 17. Those whose own negligence allowed the forgery to happen are precluded from setting up the defense of forgery. (T) 18. A person who is liable for violation of the Bouncing checks law if he makes or draws and issues a check having sufficient funds in or credit with the drawee bank and then fails to keep sufficient funds or maintain a credit to cover the full amount of the check (within a period of 90 days) 19. A signature of drawer is forged in a check that is an Order instrument, then (None of the above is liable) 20. In order to avoid liability under BP 22, the maker or drawer may pay the holder of the check the amount due thereon, or make arrangements for payment in full by the drawee of such check (within five banking days after receiving notice that such check has not been paid by the drawee) 21. Alex issued a check naming Holly as the payee. At the time of the issuance of the check, Alex had sufficient balance in his bank account. However, a week after the issuance of the check to Holly, Alex withdrew all his funds from the bank because he needed it for his medical expenses. Due to the withdrawal, when Holly presented the check for payment, the check was dishonored for insufficiency of funds. Assuming the requisite notice of dishonor was made, can Alex be held liable for violation of the Bouncing Checks Law? (Yes. The fact that Alex failed to maintain sufficient funds in the bank makes him liable for violation of the Bouncing Checks Law.) 22. A drew a check for Php 50,000 and issued the same to B for payment of pre-existing obligation. B then issued the said check to C representing the same to be a good check. The check was later dishonored for insufficient funds

A. Supposed the check was presented by C for cancellation, deposit or encashment on the 100th day from the date indicated thereon what would happen to the liability of B, if there is any? Liable because for Estafa, presentment of check is 6 months B. What is the liability of A if there is any? What would be the crime? Liable for BP 22. There is a pre-existing obligation

C. What is the liability of B if there is any? What would be the crime? B is liable for Estafa because he is the issuer D. Supposed the check was presented by C for cancellation, deposit or encashment on the 100th day from the date indicated thereon what would happen to the liability of A, if there is any? A would no longer liable because it is more than 90 days when presented under BP 22

Security Regulation Code

1. The registration may not be granted or revoked when the applicant has been judicially declared insolvent. (T) 2. On the requirement to register securities under the SRC, which of the following is generally an exempt transaction. a.

Flotation of bonds

b. Pre-incorporation subscription c.

Re-issuance of treasury shares

d. Sales of shares with warrants

3. The deadline for the filing of the General Information Sheet is a.

30 days after the annual stockholder's meeting

b. 90 days following the date of filing of the audited financial statement with the SEC c.

April 15 of the following year

d. 60 days following the date stated in the by-laws of the corporation

4. Which of the following is not required to be registered with the SEC under the SRC. * a.

Certificates of Deposits

b. Voting Trust Certificates c.

Contract of Real Estate Mortgages

d. Shares of Stock

5. Insider Trading is committed whenever an insider who is not in possession of material non-public information, transact on the securities. (F)

6. Which of the following is not a requisite of an investment contract? * a.

The investment of money is made in a common enterprise

b. It must involve an investment of money c.

The profit will be derived exclusively from the efforts of other

d. The investor must have expectation of profits

7. Mergers and consolidations are not exempt from the mandatory tender offer requirement if the threshold percentage of shares acquired is reached. ( ) 8.

Purchases in connection with privatization undertaken by the government are not exempt from the mandatory tender offer requirement if the threshold percentage of shares acquired is reached. ( )

9. If the issuer of securities has filed for a judicial declaration of insolvency, then the SEC may revoke the registration of such securities. State( ) 10. If the issuer of securities has been convicted by final judgment of an offense involving moral turpitude, then the SEC may revoke the registration of such securities. ( ) 11. Securities may be offered for sale or distribution within the Philippines without need of registration since it is automatically approved by SEC. (F) 12. ABC Corporation is a close corporation. It applied for an increase in authorized share capital on February 5. Pursuant to the increase, ABC Corporation issued 10,000 shares of stocks exclusively to its existing shareholders. No broker's commission was paid in the transaction. Is the transaction required to be registered under the SRC? * a.

No. Because the sale is only exclusive to its own stockholders.

b. No. Because no Broker's Commission was paid c.

Yes. Because the object of the sale is shares covered by the SRC.

d. Yes. Because the Sale exceed 10,000 shares

13. Which government agency governs the registration of securities * a. Securities and Exchange Commission b. Securities Registration Commission c. Securities Registration Board d. Securities Regulatory Board 14. The mandatory tender offer applies to any person who intended to acquire shares of listed corporation amounting to: * a. at least 20% b. at least 25% c.

at least 35%

d. at least 30%

15. Which of the following is required to be registered with the SEC under the SRC * a. Bonds issued by banks. b. Bods of the Government of Japan c.

Treasury Bills

d. Membership certificates in non-stock corporation

16. The purpose of SRC or RA 8799 is to protect the investing public primarily through a system of disclosure and provide punishment for fraudulent practices. (T) 17. It is required that the bank should register the security issued by them including their own shares of stock. (F)

LANGIS Corporation is a publicly listed company discovered a rich deposit of natural gas. This information was not yet made in public in order to acquire the lands surrounding the area at cheap price. Before the disclosure to SEC, directors and officers of the company bought shares of the corporation so the corporation would have substantial capital. The prices of such share went up once the discovery was made public.

18. If the stocks is purchased by the wives and children of the officers and directors of the corporation, what would be the effect. *

19. Is the purchase of the stocks of corporation by the officers and directors valid? *...