Legal Environment of Philippine

Business and Management

Midterm Examinations, August 17, 2011

Instructions:

1. Answer each question as briefly as possible. Be sure to cite at least,

the legal principle/s which you used as basis/bases of your answer or opinion.

2. You may encode your answers. Pass your examination papers on or

before August 18, 2011 at 10 o’clock in the morning.

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1. Explain the Filpino First Policy as enshrined in the 1987 Philippine

Constitution? What are its implications with respect to doing business in
the Philippines? Cite at least five ways through the said policy is being
implemented by the State.

2. What is social justice? Cite ways through which a business enterprise

(like your respective workplace) could promote social justice as it
complies with its obligations under the law.

3. Explain the reason behind the State’s exercise of its police power. Cite
specific instances through which the State exercises this power over
business organizations. Does the State’s exercise of police power
somehow promote fair competition in business? Discuss.

4. Explain why labor relationships are basically contractual in nature but

they are not governed by the general law on obligations and contracts.
Illustrate by way of a situational example.

5. The state promotes the use of preferential modes of settling disputes

between labor and capital. How does the state ensure the
implementation of this policy? How may this policy be advantageous to
business enterprises?

6. Employees enjoy the right to the free disposal of their wage. Given this
right, what are the requirements prescribed by law for employees to
comply with such a policy? Discuss.

7. Should you decide to put up a business, what business organization will

you organize? Cite at least five legal reasons why you would prefer such a
business organization.

8. Explain the doctrine of corporate fiction. Is this doctrine absolute? In

what ways does this doctrine protect the creditors of a corporation?

9. Cite at least five ways through which the Corporation Code of the
Philippines protects the following:

a. Stockholders;
b. Creditors of the corporation;
c. Members of the Board of Directors.

10.Given your background on business laws in the Philippines, do you think

the Philippines is a business-friendly location? Cite the legal bases of
your opinion.