SUBJECT: REGULATORY FRAMEWORK AND LEGAL ISSUES IN BUSINESS

TRUE OR FALSE

1. Within six (6) months from his assumption into office, the Liquidator shall submit a Liquidation Plan to the court. The Liquidation Plan shall, as a minimum, enumerate all the assets of the debtor, all the claims against the debtor and a schedule of liquidation of the assets and payment of the claims.

2. Procuring entity A is procuring for goods worth 1,000,000. Taking note the nature of procurement, procuring entity can opt to not have pre-procurement conference and proceed to invitation to bid.

3. Employee F is an expectant father. To support his girlfriend he file for paternity leave. Based on the qualifications of Labor standard Employee E can file for said benefit.

4. Bids and Award Commission is the governing body of Government Procurement Reform Act.

5. Highest Rated Bid refers to bidder in consulting services who gets the lowest point on the technical pointing system while the lowest calculated bid is the bidder in goods or infrastructure who has qualified in the technical and has the lowest offer inclusive of taxes.

6. Employers who had not remitted his employees' contribution can still pay contributions retroactively.

7. Truth in Lending Act only applies to Banking and Quasi Banking Institutions.

8. Request of Community Tax Certificate can be categorized as simple transaction based on RA 11032.

9. The BFP or any of its officials or employees shall not sell, offer to sell, or recommend specific brands of fire extinguishers and other fire safety equipment to any applicant or requesting party or business entity.

10. All employees are subject to rules of Labor Standards.

11. Company A allows employees to work overtime and offset said overtime to their late attendance. The rule is valid because employers have freedom setting their rules.

12. Business permits shall be valid for a period of one (1) year. The city/municipality may have the option to renew business permits within the first month of the year or on the anniversary date of the issuance of the business permit.

13. Special Leave for Women if not use are convertible to cash and cumulative if provided in collective bargaining agreement.

15. Procurement law covers all government department, agencies, instrumentalities, GOCC and even Government Universities and Colleges and whose fund source shall be from the Philippine Government.

16. RA 11032 shall apply to all government offices and agencies including local government units (LGUs), government-owned or controlled corporations and other government instrumentalities, whether located in the Philippines or abroad, that provide services covering business and related transactions as defined in this Act

17. Member B was confined to the hospital due to sickness. He had notify his employer within 5 days from the start of his confinement. His employer also notified the SSS within 5 days from receipt of employee's notification. The employee still has 5 leaves with the company and has paid 3 months of contribution within 1 year immediately prior to the semester of contingency. The SSS ruled out that the employee is not qualified for sickness benefits.

18. The Board of Directors shall prescribe such rules and regulations as may be necessary or proper in carrying out the provisions RA 3765.

19. If we are going to compute for the monthly pension of dependent based on the member's monthly pension rate of 1200 per month, the dependent should have a monthly pension of 120 per month.

20. The commencement of the procurement or the time to which procurement really started is upon contract signing. Only then the awarded bidder can start the procurement.

21. "Finance charge" includes interest, fees, service charges, discounts, and such other charges incident to the extension of credit as the Board of Directors may be regulation prescribe.

22. If a government office or agency fails to approve or disapprove an original application or request for issuance of license, clearance, permit, certification or authorization within the prescribed processing time, said application or request shall be deemed approved regardless of incomplete requirements filed.

23. Member A is retiring from his employment at the age of 55. He already completed 120 months of contribution with SSS prior to the semester of his contingency. From the details of the member, he can apply for an early retirement and get a monthly pension as per Social Security Act.

24. Employee G celebrated her 6th months as an employee. She decided to file for her service incentive leave to have a proper celebration. However, the HR declined her request and ruled out that she is not yet qualified for the said benefit.

25. Member D, died leaving only her sister as her relative. Prior to his death, he contributed 60 months contribution prior to his death. His sister is qualified to have monthly pension as his dependent.

26. Social Security System is liable to pay taxes to the government for its income.

27. It shall be the duty of every employer, whether operating for profit or not, to provide each of his employees a rest period of less than twenty-four (24) consecutive hours after every six (6) consecutive normal work days.

28. There had been an unforeseen calamity in the locality of LGU (procuring entity). Consequently, they wanted to procure the equipment necessary to help in calamity. The said procurement is not on the list of procurement passed in the procurement planning. On cases like this, procurement is invalid due to not having listed on the procurement plan.

29. Pre-negotiated Rehabilitation is a type of rehabilitation that involves the filing before the Regional Trial Court of rehabilitation plan which is already pre-negotiated by the insolvent business debtor and its creditors. 30. Separation Pay from employers are tax exempt.

31. Any denial of application or request for access to government service shall be fully explained in writing or verbal communication, stating the name of the person making the denial and the groundsupon which such denial is based.

32. The rehabilitation receiver may be removed at any time by the court either motu proprio or upon motion by any creditor's holding fifty percent (50%) or more of the total obligations of the debtor.

33. Covered individual of Social Security Act should be in an employer employee relationship.

34. In procurement of consulting services, the weight on the technical is greater than that of the financials.

35. In computing employees' 13th month pay, it should be based on basic salary pay plus allowances.

36. The head of the office or agency shall be secondarily responsible for the implementation of RA 11032 and shall be held accountable to the public in rendering fast, efficient, convenient and reliable service. All transactions and processes are deemed to have been made with the permission or clearance from the highest authority having jurisdiction over the government office or agency concerned.

37. Bid Security is a form of guaranty that who ever the winning bid would be, he/they will accept the awarded bid. The bid security is 5% if it is cash or check in a universal bank.

38. Employee I, a daily paid employee with daily basic of 400 and an allowance of 50, attended work on special holiday who falls on his rest day. Due to high demand of work, he do overtime work until 12 midnight. Based on Standard Labor, he should receive salary of 520 (basic and allowance) plus OT pay of 487.50 and night shift differential of 278.85.

39. Employee H, a monthly paid employee with monthly basic pay of 20,000 and fixed allowance of 5,000, attended work on a regular holiday which also falls on his rest day. Based on the Labor Standard Employee H should receive a pay of 2,136.98.

40. Funeral benefits is equivalent to 12,000 cash given by the SSS to bereaved family who should also be qualified beneficiaries.

41. Member C is pregnant to her 7th child. She had paid 3 months contribution within 1 year immediately prior to her pregnancy. She had also applied maternity benefits on her previous pregnancy for her 1st born, 2nd pregnancy (miscarriage), 3rd pregnancy (caesarian ) and 4th pregnancy (natural birth). From the scenario, the member is still qualified to file for maternity benefit.

42. Employees who are still in probationary are not part of the covered person under Social Security Act.

43. In government procurement, awarded bidder's name can be anonymous if the manufacture stipulated such in the contract especially if the procurement is sensitive in nature.

44. Bidders who wanted to participate in government procurement should be a member or registered or licensed by PHILGEPS.

45. All individual who are not businessman and business personalities (regardless of type of organization and regardless of type of industry) can avail of the benefits of FRIA.

46. Proceedings of FRIA is in rem meaning it is valid between contracting parties only.