Philippine Bar review · Topic

Permissible Contracting or Subcontracting; Non-Coverage

Page 2 of practice questions on Permissible Contracting or Subcontracting; Non-Coverage in Contracting or Subcontracting (DO 174, s. 2017; DC 01, s. 2017; EO…

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Practice questions

  1. For a sole proprietorship, DO174’s substantial-capital definition refers to what?
  2. A contractor meets the capital threshold but its service agreement excludes statutory employee benefits. Does capital c…
  3. May a contractor require an employee to sign a blank payroll as a condition of employment?
  4. A well-capitalized contractor insists that every new recruit sign an antedated resignation before starting. Its client …
  5. A contractor otherwise satisfies Section8 but requires employees, as an employment condition, to waive future wage clai…
  6. Explain why substantial capital does not by itself establish permissible contracting under Section8.
  7. A contractor demands blank payroll signatures although its finances and business independence are undisputed. Assess pe…
  8. Compare the substantial-capital measure for a corporation and a sole proprietor under DO174.