TORTS AND DAMAGES

FINAL EXAMINATION
FIRST SEMESTER 2012
COLLEGE OF LAW, UC

NAME:
SECTION:

Instructions: Read each question or problem carefully. Choose the CORRECT answer
and write down the letter of your choice in the space provided. Each question is
equivalent to 2 points. At the end of your examination, fold this questionnaire into three
and pass it together with your memorandum. GOOD LUCK!

1.______Exemplary damages may be awarded by way of example or correction for the

public good aside from the following forms of damages. Which is the exemption?

A) Nominal damages
B) Moral damages
C) Temperate damages
D) Compensatory damages

2.______As a result of a road mishap, caused by the negligence of the bus driver of
ABC lines, PP, a passenger in ABC Lines, a common carrier, sustained massive
injuries in the head. Which of the following is correct?

A) The suit by PP against ABC Line should be predicated alone upon a

breach of contract theory.
B) The suit by PP against ABC Lines should be predicated alone upon a
cupla aquiliana theory
C) If ABC Lines is sued upon a quasi-delict, the defendant may invoke
the defense of diligence of a good father of a family in the selection
and supervision of its driver.
D) If ABC Lines is sued upon a breach of contract, the defendant may invoke
the defense of diligence of a good father of a family in the selection and
supervision of its driver.

3.______The passenger of a common carrier sued the latter for breach of contract of
carriage. Which among the following is not correct?

A) Actual or compensatory damages may be recovered for lost income duly

proven
B) Moral damages for physical suffering may be recovered as a result of
the breach of the contract of carriage.
C) The negligent driver of the carrier may be sued criminally
D) Both the carrier and the driver may be sued under a quasi-delict.

4.______Proof of pecuniary loss is not necessary in order that the following damages
may be recovered. Which is the exception?

A) Actual damages
B) Moral damages
C) Nominal damages
D) Liquidated damages

5.______EE, an employee of RR caused injuries to a pedestrian while driving the van of

the latter while performing an official task. RR was not in the van.

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 A) The liability of RR is subsidiary to that of EE
B) The liability is primary and direct only when he alone is sued
C) When sued with EE, the liability of RR is joint
D) The liability of RR is direct and primary and is not conditioned upon the
insolvency of EE

FOR QUESTIONS NO. 6 and 7:

M was injured when she was hit by a car driven by D while she was crossing the
pedestrian lane. O, the owner of the car driven by D, was inside the car at the time of
the incident. M, who is eight months pregnant with her first baby, suffered an
abortion. In the case filed against O and D, based on quasi-delict, M demanded actual
damages for hospital and medical expenses, P150,000 for moral damages, P30,000 for
exemplary damages and P50,000 for the death of her unborn child.

6.______Can O be held solidarily liable with D in this case?

A) Yes, because he is inside the car at the time of the incident

B) NO, because he is not the one driving the car
C) Yes, if he could have, by the use of due diligence prevented the
misfortune
D) No, because he has no control over the situation.

7.______What damages cannot be awarded to M in this case?

A) Actual damages for her hospital and medical expenses

B) Moral damages
C) Exemplary damages
D) Damages for the death of her unborn child.

8.______The liability of the school, its administration and teachers, or the individual,
entity or institution engaged in child care over the minor for damage caused by
the acts or omissions of the minor while under their supervision, instruction or
custody shall be:

A) Joint and solidary

B) Principal and solidary
C) Principal and joint
D) Subsidiary and solidary

9. What kind of liability is imposed upon the owner, possessor or user of an animal
for the damage it may have caused to third person?

A) Vicarious Liability.
B) Solidary Liability.
C) Limited Liability
D) Strict Liability

10.______ Can the Principle of Contributory Negligence apply in Criminal Cases

through reckless imprudence?

A) The principle of contributory negligence is available as a defense in

criminal cases for reckless imprudence and, if proven, will mitigate the liability of the
accused.

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 B) The principle of contributory negligence on the part of the complainant is a
defense available in a criminal case for reckless imprudence and will erase the criminal
liability of the accused but not his civil liability.

C) The principle of contributory negligence cannot be used as defense

in criminal cases through reckless imprudence because one cannot allege the
negligence of another to evade the effects of his own negligence. It may,
however, mitigate the civil liability of the defendant but cannot affect his criminal
liability.

D) The principle of contributory negligence is not available in criminal cases

even if it is for reckless imprudence. The said defense is available only in quasi-delict
and cases arising from breach of contracts. The only available defense of the accused
is that he was not the author of the crime.

11.______ What is the doctrine of Last Clear Chance?

A) The doctrine of last clear chance is to the effect that the injury was caused
to a third person by two defendants acting separately but by reason of their acts caused
said injury to the third person. Any of the defendants may avail of this defense to avoid
liability.

B) The doctrine of last clear chance is to effect that even if the injured
party was originally at fault, still if the person who finally caused the accident had
the “last clear opportunity” to avoid the accident and he could have prevented
the injury, he would still liable if did not take advantage of such opportunity or
chance.

C) The doctrine of last clear chance is to the effect that the negligence of the
plaintiff contributed to the his/her resulting injury and thus the liability of the defendant
for the injury caused will be mitigated.

D) The doctrine of last clear chance is to the effect that both the defendant
and the plaintiff were equally negligent thus the court will leave them as they are.

12.______What is the Principle of Vicarious Liability?

A) The Principle of Vicarious Liability provides that one is not liable for his
own quasi-delictual acts but also strictly liable for the acts of those persons for whom he
is responsible under the law.

B) The Principle of Vicarious Liability provides that one becomes solidarily

liable with the person who caused the injury provided that the former is responsible for
the latter.

C) The Principle of Vicarious Liability is to the effect that one is jointly liable
for the injury caused by another provided that the former is responsible for the latter
under the law.

D) The Principle of Vicarious Liability provides that one is not only

liable for his own quasi-delictual acts but also for those persons for whom he is
responsible under the law.

13.______ What is the Doctrine of res ipsa loquitur?

A) The doctrine of res ipsa loquitur may be stated as follows: Where a

thing is shown to be under the management of the defendant or of his servants,

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and the accident is such as is in the ordinary course of events does not happen if
those who have the management had used proper care, it affords reasonable
evidence, in the absence of explanation by the defendant, that the accident arose
from want of care.

B) The doctrine of res ipsa loquitur states that: Where a thing is shown to be
under the management of the defendant or of his servants, and the accident is such as
is in the ordinary course of events does not happen if those who have the management
had used proper care, it affords reasonable evidence that the accident arose from want
of care.

C) The doctrine of res ipsa loquitur states that: Where a thing is shown to be
under the management of the defendant or of his servants, and an accident takes place
then the presumption is that the defendant and his employees were negligent.

D) The doctrine of res ipsa loquitur states that: Where an accident takes
place within the premises of the defendant, and the accident is such as in the ordinary
course of events does not happen, then the defendant cannot be held liable because
the accident was due to a force majeure.

14.______ For damages suffered by a third party, may an action based on quasi-delict
prosper against a rent-a-car company, and, consequently, its insurer, for fault or
negligence of the car lessee in driving the rented vehicle?

A) No, the company being engaged in a rent-a-car business was only the
owner of the car leased to the third party. The rent-a-car company cannot in any way be
responsible for the negligent act of the third person, since there was no existing contract
between the rent-a-car company and the person injured.

B) No, the company being engaged in a rent-a-car business was only

the owner of the car leased to the third party. As such, there was no vinculum
juris between them as employer and employee. The rent-a-car company cannot in
any way be responsible for the negligent act of the third person, the former not
being an employer of the latter.

C) Yes, in a rent–a-car business, the owner of the same becomes

responsible for the negligence of those to whom it has rented the car. This is to avoid
the prejudice and inconvenience that would be cause to the injured party if he had to go
after the driver who rented the car who may, after the accident, be difficult to locate.

D) Yes, the rent-a-car owner or proprietor assumes a subsidiary liability with

those to whom he has rented the car. The law imposes a principal agent relationship
between them. Thus the injury caused by the driver who rented the car is deemed the
act also of the rent-a-car owner, as principal.

15.______ What is the emergency rule doctrine?

A) Emergency rule states that one who finds himself in a place of danger,
and is still required to act to adopt the course of action most appropriate and which
would cause no injury or the least injury to another unless the emergency was caused
by a force majeure.

B) Emergency rule states that one who suddenly finds himself in a

place of danger, and is required to act without time to consider the best means
that may be adopted to avoid the impending danger, is not guilty of negligence if
he fails to adopt what would have been the best course of action.

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 C) Emergency rule states that one who suddenly finds himself in a place of
danger shall not be held liable for his acts even if it causes injury to another person
provided that the former acted upon an impulse and had no manner of controlling his
actions.

D) Emergency rule states that one who suddenly finds himself in a place of
danger must as still exercise due diligence considering the place, time, persons and
circumstances of the situation, and if he fails to act diligently shall be responsible for the
injury caused to another by reason thereof.

16.______ What is the character of the responsibility of two or more persons who are
liable for a quasi-delict?

A) Solidary.
B) Joint
C) Only the one most responsible for the injury is liable
D) Subsidiary

17.______ The owner, possessor or user of an animal is exonerated from his liability for
the damage caused by an animal in his possession in case of:

A) Foreseeable event.
B) Accident.
C) Negligence of the owner.
D) Force majeure.

18.______ What principle of liability is imposed upon manufacturers and processors of

toilet products, articles and similar goods?

A) Vicarious liability
B) Solidary liability
C) Strict liability
D) Joint and several liability

19.______ What is the main element to be considered in the issue of negligence in

handling, processing or manufacturing of food stuffs?

A) Non-Foreseeability of the injury.

B) Foreseeability of probable injury.
C) Extent of actual damage.
D) Damage is immaterial

20.______ Mendoza was the owner of a theater in Naga, Camarines Sur. The fiesta of
the City held on Sept. 17 and 18 yearly was usually attended by many people
mostly from the Bicol region. Mendoza, as a good businessman, taking
advantage of these circumstances, decided to exhibit a film which would fit the
occasion and have a special attraction and significance to the people attending
said fiesta. A month before the holiday, he contracted with the LVN Pictures, Inc.
for the showing of a Tagalog film entitled “Himala ng Birhen” in his theater and
advertised it by means of posters and newspaper announcements. The
advertisements stated that the film would be exhibited in his theater on Sept.
18th and 19th. On Sept. 17, 1948, the LVN Pictures, Inc. delivered the said film
in Manila to the Phil. Air Lines, in a can containing the film was loaded in the
defendant’s plane but due to the fault of employees of the defendant it was not
unloaded from the plane when it arrived at the airport and it was brought back to
Manila. After several inquiries, the film was located in Manila on September 18th
and was shipped on Sept. 20th. Plaintiff received the film on the same day and

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 exhibited in his theater but he failed to realize the profits which he expected
because the people who attended the fiesta had already returned to their towns.
An action was brought by Mendoza to recover damages for Pesos 3,000.00
representing the profits which he claimed he failed to earn. Should the action
prosper?

A) Yes. In contract, the defendant is liable for all damages which are the
consequence of the breach of the contract whether the same could be foreseen at the
time they contract was entered into or not.

B) No. the defendant can be liable only for those damages which the parties
to a contract foresaw or could reasonably foresee as a consequence of the breach of
the contract.

C) A debtor in good faith may be held liable only for damages that were
foreseen or might have been foreseen at the time the contract was executed.

D) Where defendant was in bad faith, as in this case, he is liable for all the
damages suffered by the plaintiff whether these damages were foreseen or foreseeable
at the time the contract was entered into or even if they were not foreseeable at said
time.

21.______ May exemplary or corrective damages be granted in the absence of other

kinds of damages?

A) No. In the absence of moral, temperate, liquidated, or compensatory

damages, no exemplary damages can be granted, for exemplary damages are
allowed only in addition to the four kinds of damages mentioned.

B) Yes. Even in the absence of proof where the plaintiff may be entitled to
other damages, the court may award exemplary damages since it is discretionary on the
part of the court.

C) No. The court can award exemplary damages only where there was proof
of the oppressive, malicious act and wanton attitude of the defendant even if the plaintiff
was unable to prove actual damages.

D) Yes. The court’s may award exemplary damages in the absence of proof
of other damages since in the other kinds of damages sufficient proof must be shown
for the plaintiff to be entitled to the claims of damages. However, in exemplary
damages, where the plaintiff failed to prove actual damages by reason only of
insufficiency of documentary evidences, but would have been entitled thereto had he
had the documentary evidences, the court should award exemplary damages.

22.______ May the court award exemplary damages where the plaintiff was only able to
prove liquidated damages?

A) No. The court’s may not award exemplary damages in the absence of
proof of actual damages suffered by the plaintiff. Exemplary damages are awarded in
addition only to proof of actual damages.

B) No. Exemplary damages may be awarded only upon the discretion of the
court despite proof of actual and moral damages. It is the sole discretion of the courts to
determine if there is a need to set an example to others like minded with the defendant.

C) Yes. In case liquidated damages have been agreed upon, before the
court may consider the question of granting exemplary in addition to the

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liquidated damages, the plaintiff must show that he would be entitled to moral,
temperate or compensatory damages were it not for the stipulation for liquidated
damages.

D) Yes. Liquidated damages is the amount agreed upon by the parties in

case of breach of the contract. Where the plaintiff has proven the agreement as to
liquidated damages the court should award exemplary damages as well in order to set
an example to those who are like minded in their failure to perform their obligations.

23.______ Felicitas, was sent by her sister-in-law the amount of P3,000.00 to pay for
her tuition fee at U.P., Quezon City. When Felicitas went to PT & T to claim it,
she was advised that nothing was sent to her. Eventually, however, she was
informed that the money was sent to her. PT & T tried to deliver it to her at her
dormitory but failed to do so because she was not around. After several more
attempts, PT& T was able to deliver the money to Felicitas. Felicitas, however,
filed an action for damages, aggrieved by the delay, although she was able to
eventually pay her tuition fee without additional cost or burden. Is Felicitas
entitled to actual damages?

A) Yes. Felicitas suffered actual damages by reason of the failure of the

defendant to deliver the money to her on time. The amount of damages should be the
amount that was sent to her by her sister to pay her tuition fee.

B) No. If there is no evidence of pecuniary loss, there can be no

award of actual damages. The award of actual damages can be done only when
proof of pecuniary loss in action based on culpa contractual is essential.

C) No. Felicitas cannot claim actual damages of any amount because there
was no damage suffered by her since the defendant was able to eventually deliver the
money to her and Felicitas was able to pay her tuition fee.

D) Yes. Felicitas can claim actual damages because she has suffered
damage. The failure itself of the defendant in delivering to her the amount when she
first went to them is sufficient injury to be entitled to damages.

24.______ The driver of a common carrier, thru gross or reckless negligence caused
injury to some of the passengers. May exemplary or corrective damages be
awarded?

A) No. In actions based on breach of contract, in the case a breach of

contract of transportation, exemplary damages cannot be awarded where the plaintiff
failed to prove the contract itself.

B) Yes, exemplary damages may be awarded in contracts and quasi-

contracts if the defendant company, thru its driver, acted in a “wanton,
fraudulent, reckless, oppressive, or malevolent manner.”

C) Yes, in all cases of breach of contract of transportation where a passenger

has suffered physical injuries, the award of exemplary damages is correct.

D) Exemplary damages be awarded only upon a showing and proof of actual,

moral and temperate damages. In the present case, there may have been proof of
compensatory damages but where there is no proof of moral and temperate damages,
there can be no award of exemplary damages.

25.______ Are exemplary damages recoverable in damage actions predicated on a

breach of promise to marry?

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 A) Yes. Although the defendant may not be compelled to comply with his
obligation since this is not actionable in our courts of law, the court should award
exemplary damages to set the defendant as an example to others who enter into such
agreements knowing fully well that they cannot be compelled to comply with the same.
There is that element of bad faith at the very onset of the contract.

B) No. Exemplary damages may be awarded only where there has been an
award of compensatory and moral damages. Where the plaintiff has failed to prove
actual damages suffered as well as the malicious act and wanton attitude of the
defendant, plaintiff is not entitled to exemplary damages in a case for breach of promise
to marry.

C) No. Exemplary damages are not recoverable in damage actions

predicated on a breach of promise to marry. The mere breach of promise to marry
is not actionable. Not being actionable, there can be no possible basis for an
award for damages, whether moral or exemplary.

D) Yes, provided that the plaintiff is able to prove that the agreement to marry
was entered into by reason of the misrepresentations made by the defendant without
which he/she would not have entered into said agreement.

26.______ In Quasi-delicts, may exemplary damages be awarded/granted?

A) Yes. In quasi-delicts, exemplary damages may be granted if the

defendant acted with gross negligence.

B) Yes. In quasi-delict exemplary damages may be awarded provided there

has been proof of actual or at the least nominal damages suffered by the plaintiff.

C) No. Exemplary damages are not available in quasi-delict cases because

the basis of a quasi-delict is the negligence of the defendant which caused injury to the
plaintiff. In quasi-delict cases, the injury or loss caused by the defendant was not
motivated by a perverse intention of the defendant to cause injury to the plaintiff.

D) No. Although the award of exemplary damages are discretionary upon the
court, the same may be awarded only in breach of contract where there was malice on
the part of the defendant as well as in criminal cases where the crime was attended with
more than one aggravating circumstances.

27.______ A driver of a jeepney was found recklessly negligent in causing injuries to his
passenger. Is the owner-operator of the jeepney liable for exemplary damages in
addition to other kinds of damages?

A) Yes. The principal or master’s liability for the negligence of his employee
or agent carries all that the latter is liable for. This is to insure that the injured party is
properly indemnified for the injury he/she has suffered.

B) No. The principal or master can be held liable only for compensatory
damages in the event the employee or agent is insolvent. With respect to exemplary.
Moral or temperate damages only the one who personally and directly caused the injury
should be liable.

C) Not necessarily. A principal or master can be held liable for

exemplary or punitive damages based upon the wrongful act of his agent or
servant only when he participated in the doing of such wrongful act or has
previously authorized or subsequently ratified it, with full knowledge of the facts.

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 D) Yes. A principal or master is liable for all the consequences of the
negligent act of his employee or agent. The law imputes the act of the employee as the
direct act also of the employer.

28.______ Does the unjustified refusal to grant academic honors justify the grant of
exemplary damages?

A) No. Exemplary damages is justified only in cases where there has been
wanton attitude or malice. In this case, there has been proof of wanton attitude on the
part of the defendant.

B) No. Where there is no proof of compensatory damages or temperate

damages, there can be no award of exemplary damages.

C) Yes. Unjustified refusal to grant academic honors justifies exemplary

damages. Exemplary damages are imposed upon those who through neglect of
duty and moral callousness, do not award a student of the academic honors of
which the latter deserved.

D) No. The award of academic honors is not a breach of duty on the aprt of
the school. It is a mere honor granted by the school and not a right of the student.
Thus, there is no basis for the award of exemplary damages.

29.______ May exemplary damages and nominal damages be awarded

simultaneously?

A) Yes. The grant of exemplary damages are in addition to the grant of

compensatory, moderate, nominal and/or moral damages.

B) No. Exemplary damages may be awarded only where there has been,
likewise, an award of actual damages only.

C) Yes. Where the court, at its discretion, would like to set an example to
those who are inclined to violate the rights of others and cause injury to the latter, the
grant of exemplary damages is allowed.

D) No. If exemplary damages are granted, nominal damages cannot be

given.

30.______ X borrowed money from Y, executing a real estate mortgage over his house
and lot as security for the payment of his obligation. The obligation bears interest
at the rate of 24% per annum. When the obligation became due and
demandable, X failed to pay his obligation hence, Y foreclosed the mortgage.
This resulted in protracted litigation, where several cases were filed by X
resulting in the delay of the payment for more than 20 years. Can the debtor X
and his lawyer be held liable for damages? Why?

A) Yes. X and his lawyer can be held liable for the damages jointly and
severally because of bad faith and the manifest intent to defraud, as shown by the
piecemeal filing of cases. These delayed the liquidation of the debt for more than
20 years. The lawyer could be held liable with the client because of the abuse of
process which the client could not have succeeded in doing without the
participation of the lawyer.

B) No. A defendant cannot be awarded for damages by reason of the fact

that he may have eventually won the case against the plaintiff. The remedy and the

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right to litigate should not be punished by an award of damages when a litigant losses
his case.

C) Only X should be held liable for delaying the case by filing one case after
the other such that the same lasted for twenty years. The lawyer should not be held
liable since it is his duty to diligently espouse the cause of his client.

D) Neither X or his lawyer should be held liable for damages. The right to
litigate should not be punished. The lawyer of X merely availed of the remedies allowed
by law. X, likewise, had the right to bring the case(s) to court to leave the determination
of the rights of the parties to the judicial discretion of the courts.

31.______ Is there a need to prove the amount of exemplary damages?

A) In all kinds of damages, there must be proof otherwise there would be no

basis for the court to award the same.

B) Although the ward of exemplary damages is discretionary upon the court,

in order to exercise that discretion, the court must prove that he/she is entitled to
compensatory damages first.

C) There must be proof of the amount for exemplary damages. The court
cannot rely on conjectures or speculations in coming up with the amount of exemplary
damages.

D) There is no need provided the plaintiff has proven his/her entitled to

compensatory damages and that the defendant acted in a malicious, oppressive
manner or wanton attitude.

32.______ May liquidated damages be tempered?

A) Liquidated damages are voluntarily agreed upon by the parties to a

contract and thus cannot be changed even by the courts.

B) Yes. Liquidated damages may be tempered if the plaintiff was unable to

prove the amount of actual damages he suffered by reason of the breach of the contract
by the defendant.

C) Yes. Liquidated damages may be tempered in the absence of negligence

and bad faith on the part of the defendant in failing to comply with his obligation.

D) Yes. Liquidated damages, whether intended as an indemnity or

penalty, shall be equitably reduced if they are iniquitous or unconscionable.

33.______ What is the nature of attorney’s fees expressly provided in contracts

recoverable as damages against the other party?

A) The agreement as to the payment of Attorney’s Fees for breach of

contract is in the form of actual damages.

B) Attorney’s fees expressly provided in contracts recoverable as

damages against the other party are in the nature of liquidated damages.

C) Attorney’s fees expressly provided in contracts recoverable as damages

against the other party are in the nature of exemplary damages.

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 D) Attorney’s fees expressly provided in contracts recoverable as damages
against the other party are in the nature of penalty.

34.______A stipulation to waive exemplary damages is:

A) Void

B) Voidable

C) Unenforceable

D) Valid

35.______ Moral damages may be recovered in the following cases, except:

A) A criminal offense resulting in physical injuries

B) Illegal search;
C) Malicious prosecution;
D) Trespass to Dwelling

36.______ What is the concept of temperate or moderate damages?

A) These are the damages, the amount of which is left to the sound
discretion of the court, but it is necessary that there be some injury or pecuniary
loss established, the exact amount of which, could not be determined by the
plaintiff by reason of the nature of the case.

B) These are those damages actually suffered by the plaintiff as duly proven
as well as profits that the plaintiff may have earned where it not for the negligent or
wrongful act of the defendant.

C) It is that kind of damage where the court awards an amount of damage

despite the absence of any actual damage but for purposes of recognizing a right of the
plaintiff violated or invaded by the defendant.

D) Temperate or moderate damages is that kind of damage awarded by the

court where the parties have agreed to liquidated damages. Were it not for the agreed
liquidated damages, the plaintiff would be able to prove actual damages.

37.______ Is willful injury to another person’s property a basis for granting moral
damages?

A) No. Moral damages are granted only in those cases where the plaintiff
has suffered physical suffering, mental anguish, fright, serious anxiety, besmirched
reputation, wounded feelings, moral shock, social humiliation and similar injury.

B) Yes. Willful injury to the property of another entitles the latter to an

award of moral damages. Malicious mischief and arsons under the Revised Penal
Code are instances of willful injury to property.

C) No. the award of moral damages are available only under those cases
enumerated under Article 2219 of the Civil Code such as a criminal offense resulting in
physical injuries, quasi-delict causing physical injuries, adultery or concubinage,
seduction, abduction, rape or other luscious acts, illegal or arbitrary detention.

D) Yes. Provided the plaintiff is able to prove that the act of the defendant
was attendant with malice, bad faith or wanton attitude.

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38.______ Loreto is a caretaker of carabaos belonging to Mario. One day while he is
attending to the carabaos, one of them gored him to death. Is Mario liable for the
death of Loreto?

A) Yes. Mario is liable being the owner of the carabao, he is bound by the
strict liability rule under article 2183 of the civil code which provides that “the
possessor of an animal or whoever may make use of the same is responsible for the
damage which it may cause, although it may escape or be lost.
B) Yes. Mario is liable because the carabao is a beast ferocious and
mischievous of its nature. There is a presumption of negligence against the owner of
an animal knowing beforehand the instinct of the animal.

C) No. Mario is not liable, because the animal was in custody and
control of the caretaker, who was paid for his work as such. Obviously, it was
the caretaker’s business to try to prevent the animal from causing injury or
damage to anyone including himself. And being injured by the animal under
the circumstances, was one of the risks of the occupation which he had
voluntarily assumed and for which he must take the consequences.

D) No. Mario is not liable because it is a force majeure. A carabao is a beast

ferocious and mischievous by its nature. The sudden attack on Loreto is beyond
human expectation.

39.______ A had a 4-storey building which was constructed by Engineer B. After five
years, the building developed cracks and its stairway eventually gave way and
collapsed, resulting to injuries to some lessees. Who should the lessees sue for
damages?

A) A, the owner 
B) B, the engineer 
C) both A & B
D) Neither A or B

40.______ Is a clerk or employee of the establishment also liable for the damages
caused by a defective merchandise to the consumer?

A) Yes. Where the employee or clerk failed to exercise that due diligence
called for under the circumstances he/she is liable. This is the very basis of a quasi-
delict, the lack of diligence required by the time, place and circumstances.

B) No. Only the proprietor or owner of the business should be held liable for
the injury suffered by a customer. The employee or clerk who merely passes out the
articles and receives the price is not required by law to determine the condition of the
products sold. This responsibility falls on the owner or proprietor.

C) No. A clerk or similar employee in a place where the food is sold or

retailed, who merely passes out the articles and receives the price for his
principal is not liable for defects which causes damage or injury to the purchaser.
Unless there is actual knowledge of the defect.

D) No. The employee or clerk merely has material possession of the goods
which it passes to the customers. The clerk or employee has not other obligation than
to see to it that the product is given to the customer and to receive payment therefor.

41.______ What is the nature and purpose of nominal damages?

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 A) Nominal damages is for purposes of setting an example to deter others
similarly minded.

B) Nominal damages are not for indemnification of loss but for

vindication of a right violated.

C) Nominal damages is for purposes of giving the plaintiff a means of

diversion from the damage he suffered.

D) Nominal damages is for purposes of punishing the defendant for his

negligent and/or wrongful act.

42.______ Which of the following is a remedy available to the injured consumer by

reason of the product purchased and used?

A) File a complaint based on the theory of strict liability in torts;

B) File a complaint based on Fault or negligence;

C) File a complaint based on Breach of warranty; or crime anchored on

violation of the Foods and Drugs Act

D) All of the above

43.______ Is the grant of exemplary damages automatic if there is gross negligence?

A) Yes. Exemplary damages is granted upon proof of gross negligence.

B) No. Exemplary damages is granted only upon proof of the malice, bad
faith, oppressive act and wanton attitude of the defendant.

C) Yes. Exemplary damages is granted in all cases of gross negligence in

order to set an example to the public.

D) No. The grant of exemplary damages is not automatic. It is still

subject to the discretion of the court.

44.______ Can moral damages be recoverable in breaches of contracts?

A) Moral damages is awarded only in criminal cases upon a showing of the

depravity of the accused in the commission of the crime or the presence of one or more
aggravating circumstances.

B) Breaches of contracts do not justify the award of moral damages in the

absence of an award likewise of compensatory and exemplary damages.

C) Breaches of contracts do not justify moral damages unless it is

proven that the defendant has acted fraudulently or in bad faith.

D) Breaches of contracts entitles the plaintiff always to the ward of moral

damages. The breach of the contract necessarily proves the mental anguish, serious
anxiety and wounded feelings of the plaintiff.

45.______ Assuming that there is a pre-existing contractual relation between the

plaintiff and defendant, such as that of employer and employee, or that of passenger
and carrier, shall that prelude or bar the institution of an action for recovery of damages
predicated on a quasi-delict or tort?

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 A) Yes. In an action based on quasi-delict, the parties should not be related
by any pre-existing contractual relationship.

B) No, such fact shall not bar the institution of an action by the plaintiff
against the defendant for the recovery of damages predicated on a quasi-delict or
tort. The existence of a contract between the parties constitutes no bar to the
commission of a tort by one against the other and the consequent recovery of
damages.

C) No, such fact shall not bar the institution of an action by the plaintiff
against the defendant for the recovery of damages predicated on a quasi-delict or tort.
The existence of a contract between the parties merely gives the plaintiff an alternative
choose and the choice of one action bars the filing of the other.

D) Yes. If there is a pre-existing contracutual relationship between the

parties, the violation or breach of the same or the injury caused by one on the other will
be decided based on that contract entered into by them. Thus any action should be
based on the breach of the contract alone.

46.______ While being driven at a moderate speed, a passenger jeep skidded and
fell into a precipice. It was proved that the proximate cause of the tragedy was
the skidding of the rear wheels of the jeep. Is the driver guilty of negligence?

A) No, for there was no negligence. Cars may skid on greasy or slippery
roads without the drivers fault.

B) Yes, the skidding of the passenger jeep cannot take place purely based
on a force majeure. There is always human participation such as reckless driving.

C) In a contract of transportation, the carrier must always exercise extra

ordinary diligence. When a passenger suffers injury the carrier is always deemed
negligent. The skidding of the jeep consequently proves the negligence of the driver of
the common carrier.

D) No. The skidding of the passenger jeep is normally and usually the cause
of slipper roads. No driver can always anticipate without fail the condition of the road.

47.______ What is the purpose of liquidated damages?

A) The purpose of liquidated damages to is punish the defendant for the

failure to comply with his obligation for acts imputable to him.

B) The purpose of liquidated damages to is facilitate the trial of the case

since there would be no need to prove actual damages.

C) The purpose of liquidated damages is to prevent breaches of

obligations between the contracting parties

D) The puprose of liquidated damages is to recognize a right of the plaintiff

violated or invaded by the defendant.

48.______ Is the doctrine of proximate cause applicable under the liability of the owner,
possessor or user of the animal to the damage it may have caused to third person?

A) No. Because the doctrine of proximate is applicable only in intentional

crimes.

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 B) No. Because of the strict liability rule imposed an obligation and liability on
the owner, possessor or user of an animal without necessary proof thereto.

C) Yes. Because it is a quasi-delict. Because of the presumption of

negligence to the owner.

D) Yes. Because one who exposes himself to the peril or risks knowing
the characteristic of the animal, relieves the owner. Because there is a
contributory negligence in that sense.

49.______Which of the following award of damages is incorrect?

A) Compensatory damages, moral damages and exemplary damages

B) Compensatory Damages and Nominal Damages

C) Temperate Damages and Moral Damages

D) Actual Damages and Moral Damages

50. If the obligation consists in the payment of a sum of money, and the debtor fails
to pay the same, the payment of interest, in the absence of stipulation, shall be the legal
interest which is:

A) 6% per annum

B) 3% monthly

C) 12% per annum

D) 5% per annum

- NOTHING FOLLOWS -

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