COMMERCIAL AND TAXATION LAWS BAR QUESTIONS 2025

 

1.

XYZ Corp. filed an administrative complaint for patent infringement against ABC Company. XYZ Corp. was the patentee of Philippine Patent No. I-12345, which boasts of the innovative step of curing ham by exposing it to a filtered smoke cooled in a cooling unit between 10° and 12°C while retaining ingredients exerting highly preservative and sterilizing effects. ABC Company employs a similar method, the only difference being that it cools down its filtered smoke between 20° and 24°C instead of 10° and 12°C. ABC Company maintained that it is not guilty of infringing

Patent No. I-12345 because its process is not exactly the same as XYZ Corp.’s. XYZ Corp. countered, however, that infringement was committed because ABC Company’s process performs substantially the same function and achieves substantially the same result as its own. Decide with reason(s).

 

2.  

X, a German national, was a devout follower of BBB religion. He came to the Philippines to spread the teachings of BBB religion. He soon gained thousands of followers, and formed a corporation sole, ABC Corporation, in accordance with Philippine laws. ABC Corporation, through X, purchased a building where the followers of BBB religion can perform their rituals and ceremonies. Y, a concerned citizen, assailed the acquisition of real property by ABC Corporation since its leader, X, is a foreigner. X countered that since all its members are Filipino citizens, ABC Corporation is qualified to own real property in the Philippines. Decide with reason(s).

 

3.  

X sells luxury bags on her Facebook page. Interested buyers were required to comment “mine” together with the codename of the product to express their offer to buy. The first one to comment, evidenced by a screenshot, would get the item. During one of her Facebook livestreams, X offered for sale a luxury bag of a wellknown brand from Italy for which the code name “Italy” was assigned. Y, an interested viewer, was the first to post her comment, “Mine Italy.” She then took a screenshot of her message with the item still shown in the background. Despite this, X sold the bag to her sister, Z. Y demanded that X sell her the bag, contending that the screenshot of her comment was adequate proof of the existence of a perfected contract of sale under the Electronic Commerce Act. Is Y correct? Reason(s).

 

4.  

A is a former Filipino who now permanently resides in Canada. In December 2024, she visited the Philippines to spend the holidays with her family in Quezon City. As she was departing to go home to Canada, she decided to buy wine in the airport shop. She noticed that in the Sales Invoice issued to her, she was charged 12% value-added tax (VAT) for the wine she bought. She questioned the imposition of the VAT, contending that because the wine will be consumed in Canada, no VAT should be imposed thereon. Is A correct? Reason(s).

 

 

5.

X obtained an insurance policy for her Porsche Carrera GT from XYZ Insurance Company. The same car was insured by her creditor-mortgagee, Y, with ABC Insurance Company. When the car was damaged because of an accident, X filed a claim with XYZ Insurance Company. The latter denied the claim since it discovered that the car was also insured with ABC Insurance Company. According to XYZ Insurance Company, double insurance is prohibited by law. Decide with reason(s).

 

6.  

The Congress enacted Republic Act No. 1234, imposing real property tax on immovable properties owned by Filipinos, whether found within or outside the Philippines. X, a Filipino residing in California, United States of America (USA), assailed the validity of Republic Act No. 1234, arguing that the Republic of the Philippines has no jurisdiction to tax properties found outside of the Philippines. The Office of the Solicitor General (OSG), on the other hand, averred that pursuant to its inherent  power of taxation, the Republic of the Philippines may impose taxes on all citizens and residents of the Philippines and their properties whether situated in the country or abroad. Decide with reason(s).

 

7.  

To celebrate her 70th birthday, A hired F Travel & Tours to arrange and facilitate her booking, ticketing, and accommodation for a two-week foreign tour, which included visits to Italy and Greece, for the total amount of PHP 145,000.00. On Wednesday, August 14, 2024, B, an employee of F Travel & Tours, went to A’s house to deliver the travel documents and plane ticket. She told A to be at the Ninoy

Aquino International Airport (NAIA) on Saturday, August 17, 2024 two hours before her flight schedule. Without checking her travel documents, A went to NAIA on Saturday, August 17, 2024. When she got there, she was informed that the flight she was supposed to take had already left the previous day. A demanded that F Travel & Tours refund her payment. She claimed that F Travel & Tours did not observe the standard of care required of a common carrier when its employee, B, informed her of the wrong flight schedule. Is F Travel & Tours liable as a common carrier? Reason(s).

 

8.  

A was a rich businessperson with two wives. He married B, with whom he had three children namely, C, D, and E. While their marriage was subsisting, he met X with whom he madly fell in love. He also married her despite his first marriage. They had a child named Y. In his life insurance policy from XYZ Life Insurance Corp., A designated his second wife, X, and their son, Y, as beneficiaries. Five years later, A died. X filed a claim for the proceeds of the policy for herself and for Y as the designated beneficiaries. At the same time, B also filed a claim for death benefits for herself and her children, C, D, and E, as A’s legal wife and legitimate children. Who is/are entitled to the life insurance proceeds? Reason(s).

 

 

9.

X, an Indian national studying medicine in the Philippines, learned that the foreign medical books prescribed by his professors were sold at a much cheaper price in India. He thus ordered 30 copies of each book in India and had them shipped to the Philippines. He sold these copies to his blockmates for a price 30% cheaper than the prevailing Philippine prices. XYZ Publishing Co., Inc., the exclusive licensed publisher of the books in the Philippines, sued X for copyright infringement. In his defense, X argued that he has the right to resell the books he got from India, hence, he is not liable for copyright infringement. Is X correct? Reason(s).

 

10.

On January 5, 2023, A subscribed to 1,000 shares of ABC Corporation with a par value of PHP 1,000.00 each. She made an initial payment of PHP 400,000.00 for 400 shares. As for the remaining 600 shares, she undertook to pay the same in installment for three months. But she never paid for these shares even after the deadline. Thirty days later, the Board of Directors of ABC Corporation declared A’s shares delinquent. During the election of directors in July 2023, A wanted to vote on her 400 shares, which she had already paid. ABC Corporation, however, prohibited her from voting due to her alleged delinquent account. Is ABC Corporation correct? Reason(s).

 

11.

In 2025, ABC Corporation applied for insolvency and was placed under receivership. One of its oldest creditors was XYZ Inc. which loaned ABC Corporation PHP 75 million in 2001. XYZ Inc. filed, before the rehabilitation court, a motion, praying that it be paid immediately ahead of all the other creditors because it was owed the largest sum which has been outstanding for 24 years already. TUV Company, another creditor, opposed the motion, invoking the principle of “equality in equity” and maintaining that all creditors stand on equal footing. Decide with reason(s).

 

12.

XYZ Inc. filed before the Intellectual Property Office (IPO) Trademark Application No. 1-2025-12345 for the mark “TURTLE AND DEVICE.” XYZ Inc.’s mark is an image of a turtle with the word “Turtle” on its side. ABC Inc. opposed the application, alleging that XYZ Inc.’s mark is confusingly similar or identical to its own mark, which is an image of a tortoise sans any accompanying words. In its defense, XYZ Inc. argued that the entirety or totality, not just the dominant part, of the marks should be considered in determining whether there is infringement. Decide with reason(s).

 

13.

ABC Corporation increased its Authorized Capital Stock by issuing 1,000 additional shares. X, a shareholder, notified ABC Corporation in writing of her desire to exercise her pre-emptive right on 100 of the 1,000 additional shares. ABC Corporation, however, did not respond. Upon learning that ABC Corporation had already sold all the 1,000 additional shares to new stockholders, X filed a derivative suit on behalf of the corporation to enforce her pre-emptive right. Is the action proper? Reason(s).

 

14.

On September 7, 2025, XYZ Tower Condominium Corp. was assessed by the Bureau of Internal Revenue (BIR) for deficiency value-added tax (VAT) and income tax on association dues, membership fees, and other assessment/charges for the upkeep of the condominium building for the years 2021 and 2022. XYZ Tower Condominium Corp. filed a protest, claiming that association dues, membership fees, and other assessment/charges are not earnings or income of the corporation, hence, the same are not subject to income tax or VAT. Decide with reason(s).

 

15.

ABC Corporation filed an administrative claim for refund of its unutilized excess tax credit on April 16, 2025 or within the mandatory two-year period under the National Internal Revenue Code (NIRC). The Commissioner of Internal Revenue (CIR), however, denied the claim on October 16, 2025 or after 183 days. Aggrieved, ABC Corporation filed a petition for review with the Court of Tax Appeals (CTA) 15 days from its receipt of the adverse decision on the same day. The CTA First Division dismissed the petition, ruling that ABC Corporation’s judicial claim was filed out of time. Was the dismissal of the petition proper? Reason(s).

 

16.

To celebrate her 30th birthday party, socialite A chartered for her exclusive use the yacht usually utilized by XYZ Resort to ferry its guests from the public port to its private island. A brought her own private crew to operate the yacht and invited 30 guests to her yacht party. While in the middle of the ocean, a sudden storm caused the yacht to capsize. While all the guests survived thanks to the prompt rescue operations of XYZ Resort, A succumbed to her injuries after hitting her head on floating debris and drowning. B, A’s father, sued XYZ Resorts for gross negligence, alleging that it failed to observe extraordinary diligence expected of common carriers. Is XYZ Resorts liable as a common carrier? Reason(s).

 

17.

On June 18, 2013, ABC Power Company (APC), a value-added tax (VAT)-

registered corporation, was assessed a VAT deficiency on its sale of electricity to XYZ Corporation in 2011. APC paid the VAT deficiency based on the Preliminary

Assessment Notice (PAN), but later requested a refund, arguing that the sale to XYZ Corporation was zero-rated. The Commissioner of Internal Revenue (CIR) contended that APC’s payment implied that it had already abandoned its objection against the assessment. Is APC entitled to a tax refund? Reason(s).

 

18.

A, B, and C were capitalist partners while D was an industrial partner. D’s contribution consisted purely of her services as the general manager of the partnership. In 2023, the partnership suffered a loss of PHP 1 million. The loss was split evenly into four among A, B, C, and D based on the rule that a stipulation that excludes one or more partners from any share in the profit or loss of the business is void. D objected, claiming that as industrial partner, she was not liable for any loss. Decide with reason(s).

 

19.

A has no gainful employment and was reputed to be a drug user and trafficker. He has bank accounts in Banco De Oriental (BDO), Asian Union Bank (AUB), and Eastern Bank. Using some of his cash in AUB, he bought a house and lot from XYZ Realty Co. for PHP 20 million. Which entity should report the transaction to the Anti-Money Laundering Council (AMLC)? Reason(s).

 

20.

On April 28, 2022, the Supreme Court launched the Bench Book for Commercial Courts which provides judges of special commercial courts updated reference information on various commercial laws, jurisprudence, procedural rules, and court issuances relevant to commercial law. Its chapters cover topics on cases cognizable by commercial courts, such as Financial Rehabilitation and Insolvency Act, Intellectual Property, and Intra-Corporate Controversies. Under which of the three Outcomes under the Strategic Plan for Judicial Innovations 2022-2027 (SPJI) does the Bench Book for Commercial Courts fall? Briefly explain your answer.

 

 

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