Practice question
A registered cooperative invokes Article 9’s property powers to acquire an asset unrelated to its lawful affairs and prohibited by an applicable constitutional limitation. It argues that registration overrides every restriction. Which analysis follows Article 9(5)?
- Registration automatically repeals constitutional limits
- The property power is tied to lawful affairs reasonably and necessarily requiring the transaction and remains subject to law and the Constitution
- Every cooperative can acquire any asset anywhere
- Only the seller decides constitutional eligibility
- The cooperative’s name determines the result
Legal references
- RA 9520, Article 9(5): https://cda.gov.ph/issuances/republic-act-9520/
Answer this question in flashcards to review your response and continue practicing.