1.
It refers to a stipulation whereby the thing pledged or mortgaged shall automatically
become the property of the creditor in the event of non-payment of the debt within the
period. ANS: pacto comisorio
2. Accused issued seven bounced checks to cover order from complainant. Accused's
defense was that he ordered stop payment because the goods delivered were not those
specified, and that there were sufficient funds to pay the checks. ANS:Yes, lack of
consideration is a valid defense
3. S1 - A sixty (60) day notice to the board of directors is required in case of withdrawal of
membership
S2 - The insolvency or dissolution of a member in a secondary or tertiary cooperative
may be considered valid grounds for termination of membership. ANS:Both are correct
4. The period when the minds of the seller and the buyer have met on the subject matter
and the cause of the interest is ANS:Perfection of the sale
5. The Authority may suspend or revoke, after due notice and hearing, the certificate of
registration of a cooperative on any of the following grounds ANS:Having obtained its
registration by fault
6. Which of the following may not be the object of a contract of sale? ANS:The sale of a
vain hope or expectancy
7. A contract or receipt for the transport of goods and their delivery to the person named
therein to order or to bearer is a ANS:Bill of Lading
8. The following are characteristics of a cooperative, except ANS:With a common
enjoyment of property,
9. D pledged his ring to C for P20,000.00. D failed to pay his obligation on time. C sold it at
public auction. ANS:C cannot recover the deficiency
10. Unless there is a stipulation to the contrary, the expenses for the execution and
registration of the sale shall be borne by the ANS:Seller
11. S1 - The deficiency in foreclosure of a chattel mortgage cannot be recovered by the
creditor from the debtor.
S2 - In case there is deficiency in the sale of the thing pledged at public auction, the
creditor may recover the deficiency. S1 is correct. $2 is incorrect
12. The requirement that the Real Mortgage must be recorded in Registry of Property is:
ANS:bind third persons
13. S1 - "Drawn Against Insufficient Funds" is included in the words 'CLOSED ACCOUNT
S2 - The gravamen of the offense under BP 22 is the act of making and issuing a
bouncing check. ANS:Both are incorrect
14. It is organized by marginal farmers of which are agrarian reform beneficiaries for the
purpose of developing an appropriate system of land tenure, land development, land
consolidation of land management in areas covered by agrarian reform ANS:Agrarian
Reform Cooperative
15. One of the following is not a remedy granted to an unpaid seller. ANS:Right to demand
a security for the payment of the price
16. S1 - If a cooperative has not commenced business and its operation within two (2) years
after the issuance of its certificate of registration or has not carried on its business for
two (2) consecutive years, the Authority shall send a formal notice to the said
cooperative to show cause as to its failure to operate.
S2 - In case of voluntary dissolution where no creditors are affected in a cooperative.
Resolution by the affirmative vote of at least 2/3 of all the members with voting rights,
present and constituting a quorum at a meeting called for the purpose ANS:Only S1 is
correct
17. S1 - A Real Mortgage may guarantee future obligations, while chattel mortgage cannot
guarantee future obligations.
S2 - The mortgagee has the right to the possession of the chattel mortgage upon default
of the mortgagor. ANS:Both are incorrect
18. When does the buyer of a thing has the right to the fruits of the thing bought? ANS:From
the time the sale is perfected.
19. S1 - Notice of dishonor under BP 22 may be oral or in writing.
S2 - Violation of BP 22 is categorized as a transitory or continuing crime. ANS:Only S2
is correct
20. The accused was convicted under BP 22 for having several checks which were
dishonored by the drawee bank on their due date because the accused closed her
account after the issuance of the checks. On appeal, she argued that she could not be
convicted under BP 22 by reason of the closing of her account because said law applies
solely to checks dishonored by reason of insufficiency of funds and that at the time she
issued the checks concerned, she had adequate funds in the bank. Is her contention
correct?ANS:Yes, the application thereof would be tantamount to an ex post facto
law
21. S1 - Violation of BP 22 can be filed at the places of issue, delivery and dishonor of the
check.
S2 - Check Kiting is a specie of fraud or fraudulent practice of exchange of checks of
approximately the same dates and amounts.ANS: Both are correct
22. Three of the following are essential requisites of a contract of mortgage. Which is not?
ANS:The mortgagor is the absolute owner of the thing mortgaged (babaguhin sa
next)
23. D1, D2 and D3 borrowed from C P30,000.00. As a security, they mortgaged their
undivided agricultural land to C. Subsequently, D1 paid C P100,000.00. Is the mortgaged
property on D1's share of the land extinguished?ANS:no, because the mortgage is
considered indivisible, payment in part shall not extinguish the obligation
24. Three of the following are essential elements of a contract of sale. Which is the
exception? (Art. 1458)ANS:Delivery
25. S1 - The BOD of a Cooperative shall hold office for Three (3) years and shall hold office
until their successors are duly elected an qualified, or until duly removed for caused.
S2 - The members of the board of directors shall hold any other position directly involved
in the day to day operation and management of the cooperative.ANS:Both are
incorrect
26. This takes place when the vendor reserves the right to repurchase the thing sold, with
the obligation to reimburse to the vendee the price of the sale.ANS: Conventional
redemption
27. It combines two (2) or more of the business activities of these different types of
cooperatives.ANS:Multi-purpose Cooperative
28. The period of prescription under BP 22 is 4 years counted from ANS:Lapse of the 5
banking days from the notice of dishonor within which to make good the check
29. S1 - No merger or consolidation shall be valid unless approved by a three-fourths (3/4)
vote of all the members with voting rights, present and constituting a quorum of each of
the constituent cooperatives at separate general assembly meetings.
S2 - An elective officer may be removed by three fourths (3/4) votes of the regular
members present and constituting a quorum, in a regular or special general assembly
meeting called for the purpose.ANS:Both are correct
30. S1-BP 22 covers crossed check
S2 - The word "credit" as used under BP 22 shall be construed to mean an arrangement
or understanding with the bank for the payment of such check.ANS: Only S1 is correct
31. The following are universally accepted principles of cooperative, except:
ANS:Autonomy and Relativity
32. In order to give rise to the prima facie presumption of knowledge of insufficiency of funds
ANS:Offender received an oral notice of dishonor
33. D constituted a chattel mortgage on his car as security for the loan he obtained from C of
P1M. It was further stipulated the same mortgage shall secure the payment of another
loan which the debtor D may incur in the future. Is the chattel mortgage valid?ANS:The
chattel mortgage for both loans is valid
34. S1 - The directors and officers of a cooperative shall not be entitled to any per diem
when, in the preceding calendar year, the cooperative reported a net loss or had a
dividend rate less than the official inflation rate for the same year.
S2 - Any compensation other than per diems may be granted to directors by a ⅔ vote of
the members with voting rights at a regular or special general assembly meeting
specifically called for the purpose.ANS:Only S1 is correct
35. S1 - If the thing pledged is alienated by the pledgor consented by the pledge, the
ownership and possession is transmitted to the vendor after alienation.
S2 - In sale of public auction, the pledgor or owner may bid and shall have the right it he
should offer the same terms as the highest bidder.ANS:Only S1 is correct
36. Bears the loss before the perfection of the contract of sale ANS:Seller
37. It promotes and undertakes savings and lending, services among its members. It
generates a common pool of funds in order to provide financial assistance to its
members for productive and provident purposes.ANS:Credit Cooperative
38. The requirement in a contract of pledge so that it will be binding to third persons.
ANS:public instrument
39. A cooperative may be dissolved by order of a competent court after due hearing on the
grounds of:ANS:Violation of the provisions of its bylaws
40. Which of the following is not a characteristic of Sale? ANS:Gratuitous
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