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    Midterm Exam Law 202

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    Miks Enriquez
    The document is a midterm examination for a Law on Business Organizations course. It provides a hypothetical scenario involving a partnership called JOLOGS Company formed by 6 partners. It then poses 8 multi-part questions testing students' understanding of partnership law as it relates to the scenario. The questions cover issues like partners' liability for losses, division of profits, what partnership assets and income each partner contributes, debts of the partnership, dissolution, authority of the general manager, and acts of individual partners.

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    Midterm Exam Law 202

    Uploaded by

    Miks Enriquez
    1K views6 pages
    The document is a midterm examination for a Law on Business Organizations course. It provides a hypothetical scenario involving a partnership called JOLOGS Company formed by 6 partners. It then poses 8 multi-part questions testing students' understanding of partnership law as it relates to the scenario. The questions cover issues like partners' liability for losses, division of profits, what partnership assets and income each partner contributes, debts of the partnership, dissolution, authority of the general manager, and acts of individual partners.

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    The document is a midterm examination for a Law on Business Organizations course. It provides a hypothetical scenario involving a partnership called JOLOGS Company formed by 6 partners. It then poses 8 multi-part questions testing students' understanding of partnership law as it relates to the scenario. The questions cover issues like partners' liability for losses, division of profits, what partnership assets and income each partner contributes, debts of the partnership, dissolution, authority of the general manager, and acts of individual partners.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    1K views6 pages

    Midterm Exam Law 202

    Uploaded by

    Miks Enriquez
    The document is a midterm examination for a Law on Business Organizations course. It provides a hypothetical scenario involving a partnership called JOLOGS Company formed by 6 partners. It then poses 8 multi-part questions testing students' understanding of partnership law as it relates to the scenario. The questions cover issues like partners' liability for losses, division of profits, what partnership assets and income each partner contributes, debts of the partnership, dissolution, authority of the general manager, and acts of individual partners.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 6

    Republic of the Philippines

    BATANGAS STATE UNIVERSITY


    COLLEGE OF ACCOUNTANCY BUSINESS ECONOMICS AND
    INTERNATIONAL HOSPITALITY MANAGEMENT
    CITE Building, Pablo Borbon Main 1, Rizal Avenue, Batangas City
     

    MIDTERM EXAMINATION IN LAW 202


    Law on Business Organizations
    2nd Semester, AY 2020-2021

    Instructions: Read each question carefully and note the points allocated for each question.
    Your answers should demonstrate your ability to analyze the facts, apply the pertinent laws, and
    arrive at sound and logical conclusions. Always support your answers with the pertinent laws
    and/or rules. A mere "yes" or "no" answer without any corresponding explanation or
    discussion may not be given full credit. Answers must only be a maximum of four (4)
    sentences.

    Problem:

    Six (6) people entered into a partnership and executed an Articles of Partnership with the
    following details:

    ARTICLES OF PARTNERSHIP

    OF

    JOLOGS COMPANY

    KNOW ALL MEN BY THESE PRESENTS:

    That we, the undersigned partners, all of legal age, residents and citizens of the Philippines, have
    on this day voluntarily associated ourselves together for the purpose of forming a general
    partnership under the following terms and conditions and subject to existing and applicable laws
    of the Republic of the Philippines:

    AND WE HEREBY CERTIFY:

    ARTICLE I. Partnership Name: That the name of this partnership shall be


    JOLOGS Company and shall transact business under the said company name.

    ARTICLE II. Business Purpose/Nature of the Partnership: That the purpose/s for which this
    partnership is formed for the purpose of providing logistics/delivery services for online purchase
    transactions of the customers of any of its clients. Any transactions, incidental and naturally
    related thereto are likewise included.

    ARTICLE III. Principal Place of Business: That the principal place of business of this
    partnership shall be located at Rizal Avenue Extension, Batangas City, Philippines.
    ARTICLE IV. Term of Existence: That this partnership shall have a term of five (5) years from
    and after the original recording of its Articles of Partnership by the Securities and Exchange
    Commission.

    ARTICLE V. Partners’ Circumstances: That the names, nationalities and complete


    residence addresses of the partners are as follows:

    Name Nationality Complete Address

    Jeselle Cruz Filipino Cuta, Batangas City

    Oliver San Jose Filipino Kumintang, Batangas


    City

    Lester Castro Filipino Cuenca, Batangas

    Olga Reyes Filipino Alitagtag, Batangas

    Gigi Mercado Filipino Balayan, Batangas

    Sandra Santos Filipino Bauan, Batangas

    ARTICLE VI. Capital Contributions: That the capital of this Partnership shall be the
    amount of SIX MILLION PESOS (P 6,000,000), Philippine Currency, contributed in cash by the
    partners, as follows:

    Name Amount Contributed

    Jeselle Cruz 1,500,000.00

    Oliver San Jose 1,500,000.00

    Lester Castro 1,500,000.00

    Olga Reyes 1,500,000.00

    Gigi Mercado and Sandra Santos shall contribute their time, effort and industry in running the
    business. In addition to the above, the partners likewise agree that all income they acquire during
    the existence of the partnership shall belong thereto.

    That no transfer of interest which will reduce the ownership of Filipino citizens to less than the
    required percentage of capital as provided by existing laws shall be allowed or permitted to be
    recorded in the proper books of the partnership.

    ARTICLE VII. Management: That this partnership shall be under Olga Reyes, as
    General Manager, who shall be in charge of the management of the affairs of the company. He
    shall have the power to use the partnership name and in otherwise performing such acts as are
    necessary and expedient in the management of the firm and to carry out its lawful purposes.

    ARTICLE VIII. Undertaking to Change Name: That the partners undertake to change
    the name of this partnership, as herein provided or as amended thereafter, immediately upon
    receipt of notice or directive from the Securities and Exchange Commission that another
    corporation, partnership or person has acquired a prior right to the use of that name or that the
    name has been declared as misleading, deceptive, confusingly similar to a registered name, or
    contrary to public morals, good customs or public policy.

    IN WITNESS WHEREOF, we have hereunto affixed our signatures this 19 th day of


    March, 2021, at the City of Batangas.

    (Sgd) Jeselle Cruz (Sgd) Olga Reyes

    (Sgd) Oliver San Jose (Sgd) Gigi Mercado

    (Sgd) Lester Castro (Sgd) Sandra Santos

    Questions:

    1. Suppose that there is a loss amounting to Php 500,000 and :

    a. Oliver does not want to share because he argues that the partnership is void because it is
    not notarized. Is Oliver correct? Why? Why not? (3 pts)

    b. Gigi and Sandra do not want to share because they are allegedly industrial partners. Are
    they correct? Why? Why not? (3 pts)

    c. Jeselle asks you who shall contribute to the loss and how much per partner. What will
    you advise Jeselle? (3 pts)

    2. Suppose there is a profit amounting to Php 600,000 and you are the Accountant of the
    partnership, how will you divide the profits? (5 pts)
    3. During the existence of the partnership, Jeselle had a two-door apartment which she
    inherited from her father 3 years earlier. Olga, on the other hand, had a fleet of taxis which she
    purchased 2 years before. In the first year of the partnership, Jeselle earned P500,000 as a
    Professor, while Gigi won P1,000,000 in the lotto. During the same period, rentals of P120,000
    were collected from the apartment, while fare revenues of P200,000 were realized from the
    operation of the fleet of taxis. Which of the foregoing, if any, belong to the partnership? Discuss
    with legal basis. (5 pts)

    4. During the existence of the partnership, JOLOGS Company purchased merchandise on


    credit from JEJE Corporation amounting to P 800,000. On due date, however, JOLOGS
    Company was unable to pay. Accordingly, JEJE Corporation filed a case of collection
    amounting to P 800,000 against the partnership which by then had assets amounting to
    P400,000. From whom may JEJE Corporation collect the sum of P 800,000? (5 pts)

    5. Assuming that before the delivery of the amount of P1,500,000 to the partnership,
    Lester lost his capital contribution because of a fortuitous event. The rest of the partners now
    ask you if their partnership is considered dissolved. What will be your response to them? (5 pts)

    6. Olga Reyes, as the General Manager, signed, on behalf of JOLOGS Company, a


    partnership contract between JOLOGS Company with TOYO Company to increase their
    revenue. Lester questioned Olga why did she enter into such partnership with TOYO Company
    but Olga said that she has the authority to do the same considering that she is the General
    Manager and that the purpose is in relation to the usual business of the partnership. Lester now
    seeks for your legal advice since you are a very smart student of Law on Partnership. What
    would you advice Lester? (5 pts)

    7. Sandra came to you and asked your opinion because Gigi committed the following:

    a. Put up a salon in a city away from the official business address of JOLOGOS Company.

    b. Assigned her interest in the partnership in favor of her daughter

    c. Owed Maria P 100,000 in her personal capacity but Gigi was declared insolvent

    d. Made her husband as a partner to her share of profits and losses of JOLOGS Company

    e. Issued a receipt for his own credit to Juan, a person who is indebted to both Gigi and
    JOLOGS Company and applied the payment to her credit

    f. Brought home one of the parcel for delivery which belongs to Lea, one of its customers

    g. With the consent of Jeselle, Oliver, Lester and Olga, sold the van of the partnership in
    her own name to Jose

    What will be your advice to Sandra on the following points:

    a. What can the partners/partnership do as regards the act of Gigi on putting up a salon? (3
    pts)

    b. Can the daughter of Gigi demand the partnership to give her JOLOGS’ books of
    accounts? (3 pts)

    c. Can Maria get anything from the partnership considering that Gigi is insolvent? (3 pts)

    d. Can Gigi validly subject her profits and losses for sub-partnership with her husband? (3
    pts)

    e. What can the partners/partnership do as regards the act of Gigi of applying the debt of
    Juan to her own personal credit? (3 pts)

    f. Can the partnership be liable to Lea? (3 pts)

    g. Is the sale of van to Jose valid? (3 pts)

    8. On 26 March 2026, Olga sold all the non-cash assets of JOLOGS Company including
    the remaining equipment/inventories as well as all its remaining properties. Does the act of
    Olga bind JOLOGS Company? (5 pts)

    ----------------------------------------------END-------------------------------------------------------

    Prepared by:

    Atty. APRIL M. UY-LAURIO


    Professorial Lecturer I

    Atty. MA. PAMELA C. CASTILLO, CPA

    Reviewed by:
                    

    Asst. Prof. MA. CONCEPCION P. MANALO


    Program Chair, Accountancy    

    Approved by:
    DR. BENDALYN M. LANDICHO
    Dean, CABEIHM

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