Part 1

Question 1

Why is there an imposition of higher degree of care on common carriers under the new Civil Code?

Answer 1

It was calculated to protect the passengers from the tragic mishaps that frequently occur in connection with rapid modern transportation.

Question 2

Contract of Transportation

Answer 2

When a person obligates himself to transport persons or property from one place to another for a consideration.

The contract may involve carriage of passengers or carriage of goods.

The person who obligates himself to transport the goods or passengers may be a common carrier or a private carrier.

Question 3

Parties to a contract of transportation

Answer 3

a. Carriage of Passengers
- common carrier and passenger

b. Carriage of Goods
- shipper and carrier

Question 4

Passenger

Answer 4

One who travels in a public conveyance by virtue of contract, express or implied, with the carrier as to the payment of fare or that which is accepted as an equivalent thereof.

Question 5

Can a passenger still be considered as such even if he is being carried gratuitously or under a reduced fare?

Answer 5

Yes, but under Art. 1758, there is a stipulation limiting the common carrier’s liability for negligence as valid.

Question 6

Shipper

Answer 6

Person who delivers the goods to the carrier for transportation. He is also the one who pays the consideration or on whose behalf payment is made.

Question 7

Consignee

Answer 7

The person to whom the goods are to be delivered. He may be the shipper himself as in the case where the goods will be delivered to one of the branch offices of the shipper. However, the consignee may be a third person who is not actually a party to the contract.

There are instances when the third-party consignee is bound by the agreement between the shipper and the carrier. For instance, in one case, the SC ruled that the consignee may be deemed to be bound by the terms and conditions of the bill of lading where it was established that he accepted the same and is trying to enforce the agreement.

Question 8

Types of Contracts of carriage of passengers

Answer 8

1. Contract to carry
   - an agreement to carry the passenger at some future date
   - consensual
   - perfected by mere consent
2. Contract of carriage or of common carriage itself
   - real contract
   - it is not until the facilities of the carrier are actually used can the carrier be said to have already assumed the obligation of the carrier

Question 9

Perfection of contract of carriage of goods

Answer 9

When the goods are unconditionally placed in the possession and control of the carrier, and upon their receipt by the carrier for transportation

Question 10

Perfected contract of carriage between a passenger and an airline

Answer 10

When the passenger had checked in at the departure counter, passed through customs and immigration, boarded the shuttle bus and proceeded to the ramp of the aircraft and when his baggage had already been loaded in the aircraft to be flown with the passenger to his destination.

Question 11

Are carriers of public utility vehicles liable for injuries suffered by boarding passengers resulting from the sudden starting up of their carrier?

Answer 11

Yes. It is the duty of the drivers to stop their conveyances for a reasonable length of time in order to afford passengers an opportunity to board and enter.

Once a public utility vehicle stops, it entails a continuous offer. The passenger is deemed to be accepting the offer if he is already attempting to board the conveyances and the contract of carriage is perfected from that point.

Question 12

When is a person considered a passenger of a train?

Answer 12

1. when he has bona fide intention to use the facilities of the carrier
2. must possess sufficient fare with which to pay for passage (or has purchased a ticket)
3. must present himself to the carrier for transportation at the proper place and in a proper manner

Question 13

Common Carriers

Answer 13

Persons, corporations, firms or associations engaged in the business of carrying or transporting passengers or goods or both, by land, water, or air, for compensation, offering their services to the public.

Art. 1732

One that holds itself out as ready to engage in the transportation of goods for hire as a public employment and not as a casual occupation.

Question 14

The concept of common carrier as a public service

Answer 14

Sec. 13 (b) of Public Service Act

The term “public service” includes every person that now or hereafter may own, operate, manage, or control in the Philippines, for hire or compensation, with general or limited clientele, whether permanent, occasional or accidental, and done for general business purposes, any common carrier, railroad, street railway, traction railway, sub-way motor vehicle, either for freight or passenger, or both with or without fixed route and whether may be its classification, freight or carrier service of any class, express service, steamboat or steamship line, pontines, ferries, and water craft, engaged in the transportation of passengers or freight or both, shipyard, marine railways, marine repair shop, [warehouse] wharf or dock, ice plant, ice-refrigeration plant, canal, irrigation system, gas, electric light, heat and power water supply and power, petroleum, sewerage system, wire or wireless communications system, wire or wireless broadcasting stations and other similar public services: Provided, however, That a person engaged in agriculture, not otherwise a public service, who owns a motor vehicle and uses it personally and/or enters into a special contract whereby said motor vehicle is offered for hire or compensation to a third party or third parties engaged in agriculture, not itself or themselves a public service, for operation by the latter for a limited time and for a specific purpose directly connected with the cultivation of his or their farm, the transportation, processing, and marketing of agricultural products of such third party or third parties shall not be considered as operating a public service for the purposes of this Act.

Question 15

Tests for determining whether a party is a common carrier of goods

Answer 15

1. He must be engaged in the business of carrying goods for others as a public employment, and must hold himself out as ready to engage in the transportation of goods for person generally as a business and not as a casual occupation
2. He must undertake to carry goods of the kind to which his business is confined
3. He must undertake to carry by the method by which his business is conducted and over his established roads
4. The transportation must be for hire

Question 16

A person or entity is a common carrier and has the obligations of the common carrier under the Civil Code even if he did not secure a Certificate of Public Convenience. T or F.

Answer 16

True.

A certificate of public convenience is not a requisite for incurring of liability under the Civil Code provisions governing common carriers. That liability arises the moment a person or firm acts as a common carrier, without regard to whether or not such carrier has also complied with the requirements of the applicable regulatory statue and implementing regulations and has been granted a certificate of public convenience or other franchise. To exempt private respondent from the liabilites of a common carrier because he has not secured the necessary certificate of puclic convenience, would be offensive to sound public policy; that would be to reward private respondent preciselty for failing to comply with applicable statutory requirements.

Question 17

A person or entity need not be engaged in the business of public transportation for the provisions of the Civil Code on common carriers to apply to them. T or F.

Answer 17

True.

Question 18

Can pipeline operators be considered common carriers?

Answer 18

Yes.

a. they are engaged in the business of transporting or carrying goods (petroleum products)
b. they undertake to carry for all persons indifferently, that is, to all persons who choose to employ its services, and transports the goods by land and for compensation

Question 19

Charter party

Answer 19

A contract by which an entire ship, or some principal part thereof, is let by the owner to another person for a specified time or use; a contract of affreightment by which the owner of a ship or other vessel lets the whole or a part of her to a merchant or other person for the conveyance of goods, on a particular voyage, in consideration of the payment of freight.

Charterer - person who hires the ship

Question 20

A charter party may transform a common carrier into a private carrier. T or F.

Answer 20

True, but it must be a bareboat or demise charter where the charter mans the vessel with his own people and becomes, in effect, the owner for the voyage or service stipulated.

Question 21

Types of charter parties

Answer 21

a. Contract of affreightment
- involves the use of shipping space on vessels leased by the owner in part or as a whole, to carry goods for others
- time charter: the vessel is leased to the charterer for a fixed period time
- voyage charter: ship is leased for a single voyage
- in both cases, the charter-party provides for the hire of the vessel only, either for a determinate period of time or for a single or consecutive voyage, the shipowner to supply the ship’s stores, pay for the wages of the master and the crew, and defray the expenses for the maintenance of the ship

b. charter by demise or bareboat charter
- the whole vessel is let to the charterer with a transfer to him of its entire command and possession and consequent control over its navigation, including the master and the crew, who are his servants
- ikaw ang owner for the timebeing

2. Bareboat or demise: involves the transfer of full possession and control of the vessel for the period covered by the contract; the entire command of the vessel, possession and control over its navigation, including the master and crew are turned over to the charterer

Question 22

Common carriers vs. Private carriers

Answer 22

(1) character of the business
CC: public employment; general business or occupation
PC: single transaction; casual occupation

(2) observance of diligence
CC: extraordinary
PC: ordinary

(3) liability
CC: in case of loss, destruction or deterioration of the goods, CCs are presumed to have been at fault or to have acted negligently, and the burden or proving otherwise rests on them
PC: no such presumption

Question 23

Common Carriage vs. Towage

Answer 23

Towage: one vessel is hired to bring another vessel to another place; is required to observe due diligence of a good father of the family

Question 24

Common Carriage vs. Arrastre

Answer 24

Arrastre: hauling of cargo; the handling of cargo on the wharf or between the establishment of the consignee or shipper and the ship’s tackle

Question 25

Common Carriage vs. Stevedoring

Answer 25

Stevedoring: loading and unloading of coastwise vessels calling at the port

Question 26

What law shall govern in transportation of international goods?

Answer 26

The law of the country to which the goods are to be transported shall govern the liability of the common carrier for their loss, destruction or deterioration.

Question 27

Registered Owner Rule

Answer 27

The person who is the registered owner of a vehicle is liable for any damages caused by the negligent operation of the vehicle although the same was already sold or conveyed to another person at the time of the accident. >> applies even if the vehicle is leased to an operator. IN ORDER TO BE FREE FROM SUCH LIABILITY, the vehicle shall be registered under a lease contract XPNS: 1. If the car was stolen

Question 28

Purpose of motor vehicles legislation on the registered owner rule

Answer 28

1. Easy identification of vehicle and operator 2. So that means of detection are always available may act as deterrent from lax observance of the law >> it would be easy for registered owners to escape responsibility and put the blame on someone else

Question 29

Kabit System

Answer 29

An arrangement whereby a person who has been granted a certificate of public convenience allows other persons who own motor vehicles to operate them under his license, sometimes for a fee or percentage of the earnings. > recognized as contrary to public policy for other people and therefore void and inexistent under Art. 1409

Question 30

The following contracts are inexistent and void from the beginning: 1409

Answer 30

(1) Those whose cause, object or purpose is contrary to law, morals, good customs, public order or public policy; (2) Those which are absolutely simulated or fictitious; (3) Those whose cause or object did not exist at the time of the transaction; (4) Those whose object is outside the commerce of men; (5) Those which contemplate an impossible service; (6) Those where the intention of the parties relative to the principal object of the contract cannot be ascertained; (7) Those expressly prohibited or declared void by law. These contracts cannot be ratified. Neither can the right to set up the defense of illegality be waived.

Question 31

Pari delicto rule

Answer 31

"in equal fault" Persons who are parties to the kabit system cannot invoke the same as against each other either to enforce their illegal agreement or to invoke the same to escape liability. "No action arises out of an illicit bargain."

Question 32

No person can operate a common carrier without securing a certificate of public convenience and necessity. T or F.

Answer 32

True.

Question 33

Accidents and liabilities summary (1) A as driver. B as registered name. (2) A as driver. B as registered name. C as new owner. (3) A as franchise holder. B as lessee and driver. No approval of lease contract by LTFRB.

Answer 33

(1) A as driver. B as registered name. B is liable. (2) A as driver. B as registered name. C as new owner. B is liable. (3) A as franchise holder. B as lessee and driver. No approval of lease contract by LTFRB. A is liable. Other actions: a. quasi delict against B b. criminal case of reckless imprudence resulting in homicide against B

Question 34

Johnny owns a Sarao jeepney. He asked his neighbor Van if he could operate the said jeep under Van's certificate of public convenience. Van agreed and, accordingly, Johnny registered his jeep in Van's name. On June 10, 1990, one of the passenger jeepneys operated by Van bumped Tomas. Tomas was injured and in due time, he filed a complaint for damages against Van and his driver for the injuries he suffered. The court rendered judgment in favor of Tomas and ordered Van and his driver, jointly and severally liable, to pay Tomas actual and moral damages, attorney's fees and costs. The sheriff levied on the jeepney belonging to Johnny but registered in the name of Van. Johnny filed a third-party complaint with the sheriff alleging ownership of the jeepney levied and stating that the jeepney was registered in the name of Van merely to enable Johnny to make use of Van's certificate of public convenience. May the sheriff proceed with the public auction of Johnny's jeepney?

Answer 34

Yes. The sheriff may proceed with the auction sale of the jeepney. The vehicle remains to be the property of the registered owner despite the alleged transfer to another. As regards the public and third persons, the vehicle is considered the property of the registered operator.

Question 35

Boundary System

Answer 35

In land transportation where the boundary system may be implemented by the common carrier, the carrier cannot escape liability by claiming that the driver is a lessee.

Question 36

Obligations of the Carrier

Answer 36

1. Transport the goods or passenger safely to the agreed destination 2. To accept passengers and goods without discrimination 3. To seasonably deliver the goods or bring the passenger to the destination 4. To deliver the goods to the proper person 5. To exercise extraordinary diligence in the performance of its duties

Question 37

A common carrier that is granted a certificate of public convenience is duty bound to accept passengers or cargo without any discrimination. T or F.

Answer 37

True.

Question 38

Valid grounds for non-acceptance

Answer 38

1. When the goods sought to be transported are dangerous objects, or substances including dynamites and other explosives *except vessels that are fit to carry such goods and with authorization 2. The goods are unfit for transportation (improper packaging or defect in their containers) 3. Acceptance would result in overloading 4. The goods are considered contrabands or are illegal goods 5. Goods are injurious to health 6. Goods will be exposed to untoward danger like flood, capture by enemies and the like 7. Goods like livestock will be exposed to diseases 8. Strike 9. Failure to tender goods on time 10. Goods are not the goods agreed upon or are included in the excluded goods stipulated by the parties

Question 39

Even if the loss, destruction, or deterioration of the goods should be caused by the character of the goods, or the faulty nature of the packing or of the containers, the common carrier must exercise due diligence to forestall or lessen the loss. T or F.

Answer 39

True. 1742 or Lessening Loss

Question 40

What constitutes as a timely delivery if there is no time fixed?

Answer 40

Expected date of arrival in bill of lading or nature of goods If there is no period fixed for the delivery of the goods, the carrier shall be bound to forward them in the first shipment of the same or similar goods which he may make to the point of delivery; and should he not do so, the damages caused by the delay should be for his account.

Question 41

In the absence of a special contract, a carrier is not an insurer against delay in the transportation of goods. T or F.

Answer 41

True.

Question 42

Reasonable delay

Answer 42

Depends on the nature of the goods

Question 43

A carrier may be specially designed to carry dangerous chemicals that are necessary for certain manufacturing businesses and may secure the appropriate authorization for such purpose. T or F.

Answer 43

True.

Question 44

Requisites for a carrier to transport explosives

Answer 44

1. Must be properly equipped and designed to transport dangerous chemicals or explosives 2. Must be authorized by the appropriate government agency (Maritime Industry Authority or MARINA) to carry such goods

Question 45

Coverage of Memorandum Circular No. 101

Answer 45

all vessels registered/documented for operation within Philippine waters carrying dangerous/hazardous cargoes/goods between/among Philippine ports

Question 46

CLASSIFICATION OF DANGEROUS/HAZARDOUS CARGOES/GOODS

Answer 46

For purposes of this Circular, dangerous/hazardous cargoes/goods are those defined/classified under the International Maritime Dangerous Goods (IMDG) Code as follows: 1. CLASS 1 - Explosives 2. CLASS 2 - Gases; compressed, liquified, or dissolved under pressure 3. CLASS 3 - Inflammable Liquid 4. CLASS 4 - Inflammable solids or substances 4.1 - Inflammable Solid 4.2 - Inflammable Solids, or Substances liable to spontaneous combustion 4.3 - Inflammable solids, or substances which in contact with water emit inflammable gases 5. CLASS 5 5.1 - Oxidizing Substance 5.2 - Organic Peroxide 6. CLASS 6 - 6.1 - Poisonous (toxic) substances 6.2 - Infectious substances 7. CLASS 7 - Radioactive substances 8. CLASS 8 - Corrosives 9. CLASS 9 - Miscellaneous dangerous substances

Question 47

The following documentary requirements must be submitted/complied with when applying for the issuance of Special Permit to Carry Dangerous/Hazardous Cargoes/Goods in Packaged Forms:

Answer 47

1. Letter of intent 2. PPA clearance on packaging, marking and labelling of cargoes or goods in packaged forms 3. Cargo Stowage Plan

Question 48

Who are exempted from Memorandum Circular 101

Answer 48

Vessels specially designed/built to carry dangerous/hazardous cargoes /goods and had been issued the appropriate Certificate of Inspection (CI) to carry the same are exempted.

Question 49

Special Permit to Carry Dangerous/Hazardous Cargoes/Goods shall be valid for one (1) voyage only.

Answer 49

Oki.

Question 50

Coverage of Memorandum Circular 147

Answer 50

This Circular shall apply to all Philippine registered ships engaged in the domestic trade.

Question 51

``` Clearance required for: a. Plants and animals, its by-products and related materials b. Fish and Aquatic Products c. Forestry and Wildlife Products, Flora and Fauna d. Minerals, Mineral Products and Ores e. Toxic and Hazardous Materials f. Motor Vehicles and Parts g. Mineral and Mineral Products/Sand and Gravel ```

Answer 51

a. Bureau of Plant and Industry (BPI)/Bureau of Animal Industry (BAI) Clearance b. Bureau of Fisheries and Aquatic Resources (BFAR) c. Department of Environment and Natural Resources (DENR) clearance and transport permit d. Mines and Geosciences Bureau (MGB) Transport Permit, Delivery Receipt and Certification e. Environmental Management Bureau (EMB) Permit to transport f. Proof of ownership consisting of Registration Certificate and Official Receipt; Traffic Management Group (TMG) clearance valid for 30 days; (N.B. checking at Port of loading only) g. Ore Transport Permit from Governor or City Mayor Delivery Receipts for sand and gravel for mineral and mineral products

Question 52

Unfit for transport

Answer 52

These goods may by nature be unfit for transportation or are unfit because of improper packaging or defect in their containers. The carrier may choose to transport such goods and limit its liability by stipulation.

Question 53

Carriers may refuse packages which appear unfit for transportation; and if the carriage is to be made by railway, and the shipment is insisted upon, the company shall transport them, being exempt from all responsibility if its objections, is made to appear in the bill of lading. T or F.

Answer 53

True.

Question 54

If by reason of well-founded suspicion of falsity in the declaration as to the contents of a package the carrier should decide to examine it...

Answer 54

He shall proceed with his investigation in the presence of witnesses, with the shipper or consignee in attendance. If the shipper or consignee who has to be cited does not attend, the examination shall be made before a notary, who shall prepare a memorandum of the result of the investigation, for such purposes as may be proper. If the declaration of the shipper should be true, the expense occasioned by the examination and that of carefully repacking the packages shall be for the account of the carrier and in a contrary case for the account of the shipper.

Question 55

If there is no period fixed for the delivery of the goods the carrier shall be bound to...

Answer 55

Forward them in the first shipment of the same or similar goods which he may make to the point of delivery; and should he not do so, the damages caused by the delay should be for his account.

Question 56

A, in Manila, shipped on board a vessel of B, chairs to be used in the movie house of consignee C in Cebu. No date for delivery or indemnity for delay was stipulated. The chairs, however, were not claimed promptly by C and were shipped by mistake back to Manila, where it was discovered and re-shipped to Cebu. By the time the chairs arrived, the date of inauguration of the movie house passed by and it had to be postponed. C brings an action for damages against B claiming loss of profits during the Christmas season when he expected the movie house to be opened. Decide the case with reasons.

Answer 56

C may sue B for the loss of his profits provided that ample proof thereof are presented in court. The carrier is obligated to transport the goods without delay. The carrier is liable if he is guilty of delay in the shipment of cargo, causing damages to the consignee.

Question 57

Excusable delays in carriage terminate the contract of carriage. T or F.

Answer 57

False. It only suspends the contract. When the cause is removed, the master must proceed with the voyage and make delivery. During the detention or delay, the vessel continues to be liable as a common carrier, not a warehouseman, and remains duty bound to exercise extraordinary diligence.

Question 58

If the delay is legally inexcusable, the following consequences results:

Answer 58

1. the carrier is still liable even if natural disaster cause the damage 2. the stipulation limiting the liability of the carrier is inoperative 3. the carrier is liable for the damages caused by the delay 4. the consignee may exercise his right to abandon under Art. 371 of the Code of Commerce

Question 59

The carrier is obligated to follow the usual reasonable commercial or customary route. T or F.

Answer 59

True. The carrier will be liable if there is damage because of delay or because of improper deviation. XPNS: If the voyage is customarily in stages to replenish the ship's fuel.

Question 60

If a period has been fixed for the delivery of the goods, it must be made within such time, and, failure to do so, the carrier shall pay the indemnity stipulated in the bill of lading, neither the ship nor the consignee being entitled to anything else. If no indemnity has been stipulated and the delay exceeds the time fixed in the bill of lading... In case of delay through the fault of the carrier, referred to in the preceding articles...

Answer 60

a. the carrier shall be liable for the damages which the delay may have caused b. the consignee may leave the goods transported in the hands of the former, advising him thereof in writing before their arrival at the point of destination. When this abandonment takes place, the carrier shall pay the full value of the goods as if they had been lost or mislaid. If the abandonment is not made, the indemnification for losses and damages by reason of the delay cannot exceed the current price which the goods transported would have had on the day and at the place in which they should have been delivered; this same rule is to be observed in all other cases in which this indemnity may be due.

Question 61

The value of goods which the carrier must pay in cases of loss or misplacement

Answer 61

It shall be determined in accordance with that declared in the bill of lading, the shipper not being allowed to present proof that among the goods declared therein there were articles of greater value and money.

Question 62

Right to Abandon

Answer 62

In cases of delay on account of the fault of the carrier, the consignee may leave the goods transported in the hands of the carrier, informing him thereof in writing before the arrival of the same at the point of destination.

Question 63

Rights of passengers in case of delay

Answer 63

In case a voyage already begun should be interrupted, the passengers shall be obliged to pay the fare in proportion to the distance covered, without right to recover for losses and damages if the interruption is due to fortuitous event or force majeure, but with a right to indemnity if the interruption should have been caused by the captain exclusively. If the interruption should be caused by the disability of the vessel and a passenger should agree to await the repairs, he may not be required to pay any increased price of passage, but his living expenses during the stay shall be for his own account. 698, CoC

Question 64

Pecuniary

Answer 64

Involving money, monetary or financial

Question 65

Place of delivery

Answer 65

in the place agreed upon by the parties

Question 66

What are the passengers entitled to in case of delay in voyage?

Answer 66

Free meal and lodging or the right to have the ticket refunded Only if there was negligence on the part of the carrier

Question 67

Common carriers are responsible for the loss, destruction, or deterioration of the goods, unless the same is due to any of the following causes only:

Answer 67

(1) Flood, storm, earthquake, lightning, or other natural disaster or calamity; (2) Act of the public enemy in war, whether international or civil; (3) Act or omission of the shipper or owner of the goods; (4) The character of the goods or defects in the packing or in the containers; (5) Order or act of competent public authority. In all cases other than those mentioned in Nos. 1, 2, 3, 4, and 5 of the preceding article, if the goods are lost, destroyed or deteriorated, common carriers are presumed to have been at fault or to have acted negligently, unless they prove that they observed extraordinary diligence as required in article 1733.

Question 68

Any of the following or similar stipulations shall be considered unreasonable, unjust and contrary to public policy:

Answer 68

(1) That the goods are transported at the risk of the owner or shipper; (2) That the common carrier will not be liable for any loss, destruction, or deterioration of the goods; (3) That the common carrier need not observe any diligence in the custody of the goods; (4) That the common carrier shall exercise a degree of diligence less than that of a good father of a family, or of a man of ordinary prudence in the vigilance over the movables transported; (5) That the common carrier shall not be responsible for the acts or omission of his or its employees;**goods (6) That the common carrier’s liability for acts committed by thieves, or of robbers who do not act with grave or irresistible threat, violence or force, is dispensed with or diminished;**goods (7) That the common carrier is not responsible for the loss, destruction, or deterioration of goods on account of the defective condition of the car, vehicle, ship, airplane or other equipment used in the contract of carriage.**goods

Question 69

In case of death of or injuries to passengers, common carriers are presumed to have been at fault or to have acted negligently, unless they prove that they observed extraordinary diligence as prescribed in articles 1733 and 1755.

Answer 69

Oki.

Question 70

In the general presumption of negligence, the court need not make an express finding of fault or negligence of common carriers, the law imposes liability upon common carriers, as long as it is shown that:

Answer 70

1. there exist a contract between the passenger or the shipper and the common carrier 2. the loss, deterioration, injury or death took place during the existence of the contract

Question 71

Consequences of excusable delay

Answer 71

Suspension of contract

Question 72

Act that validates the proper change or transfer of consignee

Answer 72

- novation of contract by new act of lading - return of bill of lading in exchange for another - novation >> modification of the obligation

Question 73

To whom shall the goods be delivered?

Answer 73

Consignee appearing in bill of lading consignee or any other person the bill of lading was validly transferred or negotiated

Question 74

What makes a bill of lading negotiable?

Answer 74

Bill of lading is negotiable if may "to the order of"

Question 75

What if there is a conflict between the shipper and the consignee?

Answer 75

The right of the shipper to countermand the shipment terminates when the consignee or legitimate holder of the bill of lading appears with such bill of lading before the carrier makes himself a party to the contract.

Question 76

What is EOD?

Answer 76

- to carry the passengers safely as far as human care and foresight can provide, using the utmost diligence of very cautious persons, with a due regard for all the circumstances - rendition of service with the greatest skill and utmost foresight - Art. 1755 - A common carrier is bound to carry the passengers safely as far as human care and foresight can provide, using the utmost diligence of very cautious persons, with a due regard for all the circumstances.

Question 77

DOAGFOAF

Answer 77

Diligence of A Good Father Of A Family

Question 78

Presumption of negligence | 2 requisites:

Answer 78

1. there is a contract of carriage between them | 2. the event should have happened at the time the contract was existing

Question 79

Is there a presumption of bad faith in cases involving recovery of damages?

Answer 79

No, it must be proven through clear and convincing evidence

Question 80

Negligence equates to bad faith. T or F.

Answer 80

False. Negligence is different from bad faith.

Question 81

Negligence equates to bad faith. T or F.

Answer 81

False. Negligence is different from bad faith.

Question 82

In a contract of common carrier, gross negligence is presumed in cases of accident. T or F.

Answer 82

False. Gross negligence equals bad faith kasi. Just negligence

Question 83

In case of accident, an action for breach of contract may be filed against the driver. T or F.

Answer 83

False. Quasi contract or criminal case lang

Question 84

Until when are you a passenger? Or until when nag-eexist yung EOD?

Answer 84

from the time the goods are put in the possession of the carrier until the goods are delivered to the consignee

Question 85

Until when are you a passenger? Or until when nag-eexist yung EOD?

Answer 85

from the time the goods are put in the possession of the carrier until the goods are delivered to the consignee

Question 86

If X has already disembarked the train, but is still in the station, is he still a passenger?

Answer 86

It depends, there are cases na yes.

Question 87

stoppage in transitu

Answer 87

the right of a seller of goods to stop them on their way to the buyer and resume possession of them unpaid seller in this case is the shipper EOD neen not be exercised over the goods that are unloaded temporarily if the shipper of owner has made use of the right of stoppage in transitu. It is the right of an unpaid seller to resume possession of the goods at any time while the goods are in transit, and he will then crome entitled to the same rights in regard to the goods as he would have had if he had never parted with the possession.

Question 88

Article 1758. When a passenger is carried gratuitously, a stipulation limiting the common carrier's liability for negligence is valid, but not for willful acts or gross negligence. The reduction of fare does not justify any limitation of the common carrier's liability. >> how can this be read in harmony with the general principle na hindi pwede magstipulate na may lessened liability pag passenger not subject to stipulation kasi human life yan bakit mo bababaan degree of diligence?

Answer 88

limiting is different from lowering. like ex: lower amount lang pwede marecover sa damages

Question 89

The acquittal of the employee of the common carrier in the criminal case will significantly affect the case for breach of contract. T or F.

Answer 89

False. The acquittal of the employee of the common carrier in the criminal case is immaterial to the case for breach of contract. (independent civil action-> art 31 NCC)

Question 90

When the goods are deemed delivered to the carrier

Answer 90

When goods are ready for and have been placed in the exclusive possession, custody and control of the carrier for the purpose of their immediate transportation and the carrier has accepted them. When the carrier has thus accepted such delivery, the liability of the carrier commences eo insanti.

Question 91

The right of stoppage in transit is available if:

Answer 91

1. Buyer of goods is or becomes insolvent 2. The unpaid seller has parted with the possession of the goods 3. The goods are still in transit

Question 92

The obligation of the airline to exercise EOD commences upon the Issuance of the contract of carriage. Ticketing, as the act of issuing the contract of carriage, is necessarily included in the exercise of EOD. T or F.

Answer 92

True. Once a plane ticket is issued, the common carrier binds itself to deliver the passenger safely on the date and time stated in the ticket.

Question 92

The obligation of the airline to exercise EOD commences upon the Issuance of the contract of carriage. Ticketing, as the act of issuing the contract of carriage, is necessarily included in the exercise of EOD. T or F.

Answer 92

True. Once a plane ticket is issued, the common carrier binds itself to deliver the passenger safely on the date and time stated in the ticket.

Question 93

SEAWORTHINESS

Answer 93

1. Fitness of the vessel itself (it is necessary that the vessel can be expected to meet the normal hazards of the journey) 2. Manning or crew 3. Adequately equipped (make the holds, refrigerating and cooling chambers, and all other parts of the ship in which goods are carried, fit and safe for their reception carriage and preservation) Generally, Seaworthiness is that strength, durability and engineering skill made a part of a ship’s construction and continued maintenance, together with a competent and sufficient crew, which would withstand the vicissitudes and dangers of the elements which might be reasonably be expected or encountered without loss or damage to her particular cargo. To be seaworthy. A vessel must have such degree of fitness which an owner who is exercising extraordinary diligence would require his vessel to have at the commencement of her voyage. It includes fitness of the vessel itself to withstand the rigors of the voyage, fitness of the vessel to store the cargoes and accommodate passengers to be transported and that is adequately equipped and properly mannered. The first step to be undertaken in complying with the duty to exercise EOD in carriage by sea. For a vessel to be seaworthy, it must be adequately equipped for the voyage and manned with a sufficient number of competent officers and crew. The failure of a common carrier to maintain in seaworthy condition is a clear breach of its duty.

Question 94

SEAWORTHINESS

Answer 94

1. Fitness of the vessel itself (it is necessary that the vessel can be expected to meet the normal hazards of the journey) 2. Manning or crew (on top of regular maintenance and inspection, Captains, masters or patrons of vessels must prove the skill, capacity, and qualifications necessary to command and direct the vessel) 3. Adequately equipped (make the holds, refrigerating and cooling chambers, and all other parts of the ship in which goods are carried, fit and safe for their reception carriage and preservation -- exit doors, life boats, life vests) Generally, Seaworthiness is that strength, durability and engineering skill made a part of a ship’s construction and continued maintenance, together with a competent and sufficient crew, which would withstand the vicissitudes and dangers of the elements which might be reasonably be expected or encountered without loss or damage to her particular cargo. To be seaworthy. A vessel must have such degree of fitness which an owner who is exercising extraordinary diligence would require his vessel to have at the commencement of her voyage. It includes fitness of the vessel itself to withstand the rigors of the voyage, fitness of the vessel to store the cargoes and accommodate passengers to be transported and that is adequately equipped and properly mannered. The first step to be undertaken in complying with the duty to exercise EOD in carriage by sea. For a vessel to be seaworthy, it must be adequately equipped for the voyage and manned with a sufficient number of competent officers and crew. The failure of a common carrier to maintain in seaworthy condition is a clear breach of its duty.

Question 95

Hijacking is excusable, thus, there is still a presumption of EOD on the part of the common carrier. T or F.

Answer 95

False. The common carrier will be presumed to be at fault unless there is proof to the contrary. And unless the perpetrators acted with grave or irresistible threat, violence or force.

Question 96

A carrier is liable to its passengers for damages caused by mechanical defects of the conveyance. T or F.

Answer 96

True.

Question 97

The good repute of the manufacturer will relieve the carrier from liability. T or F.

Answer 97

False. 1. Passenger has no control on the manufacturer of choice of the common carrier 2. The carrier has remedy against the manufacturer for damage arising from a mere breach of contract The manufacturer is now liable based on his strict liability under Art. 97 of the Consumer Act.

Question 98

Is the common carrier still liable even if the defective packaging itself or faulty nature had caused the deterioration or loss of the goods upon delivery to the consignee?

Answer 98

Yes. Under Art. 1742, the common carrier must still exercise due diligence to forestall or lessen the loss.

Question 100

A vessel is seaworthy if:

Answer 100

1. It is fit to perform the service and to encounter the ordinary perils of the voyage contemplated by the parties to the policy 2. It is properly laden; 3. It is provided with a competent master; 4. It is provided with a sufficient number of competent officers and seamen; 5. It is provided with the requisite appurtenances and equipment; 6. It is provided with other necessary or proper stores and implements for voyage

Question 101

Cargoworthiness

Answer 101

1. The ship must be an efficient storehouse for her cargo 2. The ship must be efficiently strong and equipped to carry the particular kind of cargo which she has contracted to carry and her cargo must be so loaded that it is safe for her to proceed on her voyage. 3. Even if the vessel was properly maintained and is free from defect, the carrier must not accept the goods that cannot properly be transported in the ship

Question 102

Shipper's Load and Count

Answer 102

The agreement where the shipper has the sole responsibility for the quantity, description and condition of the cargoes shipped in container vans. The contents are not required to be checked and inventoried by the carrier at the port of loading or before said carrier enters the port of unloading in the Philippines since it is the shipper who has the sole responsibility for the quantity, description and condition of the cargoes shipped in container vans.

Question 103

Liability under Shipper's Load and Count

Answer 103

The carrier cannot be held liable for cargoes that went missing while they are being loaded if the consigned goods were shipped under “Shipper’s Load and Count.” The shipper was solely responsible for the loading of the container, while the carrier was oblivious to the contents of the shipment.

Question 104

Routes by carriers by sea are subject to approval by MARINA and the same cannot generally be changed without the authorization from said administrative agency. T or F.

Answer 104

Generally, true. XPNS: 1. If there is no evidence of the usual route, the route is presumed to be the direct geographical route. 2. A common carrier may veer from its usual route on the circumstances, generally, it must not go beyond the allowed route in its franchise. 3. No improper deviation if the voyage is customarily in stages to replenish the ship’s fuel.

Question 105

Deviation

Answer 105

A deviation is a departure from the course of the voyage insured, or an unreasonable delay in pursuing the voyage or the commencement of an entirely different voyage.

Question 106

Deviation is proper (Insurer remains liable):

Answer 106

1. When caused by circumstances over which neither the master nor the owner of the ship has any control; 2. When necessary to comply with a warranty, or to avoid a peril, whether or not the peril is insured against; 3. When made in good faith, and upon reasonable grounds of belief in its necessity to avoid a peril; od) When made in good faith, for the purpose of saving human life or relieving another vessel in distress.

Question 107

Transshipment

Answer 107

Transshipment of freight without legal excuse is a violation of the contract and subjects the carrier to liability if the freight is lost even by a cause otherwise excepted.

Question 108

Prohibition against transshipment

Answer 108

The act of taking cargo out of one ship and loading it into another; to transfer goods from the vessel stipulated in the contract of affreightment to another vessel before the place of destination named in the contract has been reached.

Question 109

There is transshipment whether or not the same person, firm or entity owns the vessels. T or F.

Answer 109

True. What matters is the actual physical transfer of cargo from one vessel to another.

Question 110

Purpose of duty to disclose

Answer 110

- To help the carrier exercise proper care and caution in relation not only to the subject cargo by also to the cargo of other shippers and the passengers - To prevent damage to the vessel, to the cargoes, and to the passengers or seafarers in the vessel

Question 111

Courier has no duty to inspect. T or F.

Answer 111

True. If by reason of well-founded suspicion of falsity in the declaration as to the contents of the package carrier should decide to examine and investigate it in the presence of witnesses, with the shipper and consignee in attendance. If declaration of shipper is true, expenses occasioned by the examination and of repacking the packages shall be for the account of the carrier.

Question 112

Consignor with whom the contract of carriage is made is primarily liable for the payment of the freight charges whether or not he is the owner of the goods. T or F.

Answer 112

True.

Question 113

What if consignee fails to pay within 24 hours?

Answer 113

Carriers lien: the right to hold the consignee's cargo until payment is made for transporting it Article 2249. If there are two or more credits with respect to the same specific real property or real rights, they shall be satisfied pro rata, after the payment of the taxes and assessments upon the immovable property or real right.

Question 114

What if may delay sa unloading of goods?

Answer 114

Demurrage - a charge payable to the owner of a chartered ship in respect of failure to load or discharge the ship within the time agreed Demurrage is the compensation provided for the contract of affreightment for the detention of the vessel beyond the time agreed on for loading and unloading. It is the claim for damages for failure to accept delivery. In broad sense, very improper detention of a vessel may be considered a demurrage. Technically, liability for demurrage exists only when expressly stipulated in the contract. Using the term in broader sense, damages in the nature of demurrage are recoverable for a breach of the implied obligation to load or unload the cargo with reasonable dispatch, but only by the party to whom the duty is owed and only against on who is a party to the shipping contract. Notice of arrival of vessels or conveyances, or their placement for purposes of unloading is often a condition precedent to the right to collect demurrage charges ONLY if beyond allowable period (allowable period - lay days)

Question 115

Shipper's load and count

Answer 115

The agreement where the shipper has the sole responsibility for the quantity, description and condition of the cargoes shipped in container vans. Whatever the shipper says, the carrier will just believe. Kasi its only duty is to transport. Why would the shipper want that kind of arrangement? >> maybe urgency ayaw na mahassle sa process, confidentiality ayaw ipaopen na, ayaw madestroy yung item from such inspection

Question 116

It's not the duty of the carrier to remind a passenger when a visa is needed. T or F.

Answer 116

True.

Question 117

Other duty of passengers in airline

Answer 117

a) Pay the proper fare for the transportation (amount and time of payment depends on the type of carrier) b) Present himself in the proper place c) Present himself at the proper time d) Exercise ordinary diligence in the conduct of his or her affairs e) Not to bring such luggage that is in excess of the weight and size prescribed by regulations or contract f) Not to transport prohibited materials or goods, including animals  The passenger must present himself in the proper place.  The passenger must also present himself at the proper time.  The passenger is not obligated to bring such luggage that is in excess of the weight and size prescribed by regulations or contract.  The passenger is also obligated to secure the appropriate travel documents.

Question 118

A common carrier is bound to carry the passengers safely as far as human care and foresight can provide, using the utmost diligence of very cautious persons, with a due regard for all the circumstances.

Answer 118

Okay. Carrier does not guarantee safety (state) but rather the exercise of EOD. Kaya ang liability it happens when there is failure to exercise that not pag may nangyaring masama lang.

Question 119

Requisites to avail of defenses

Answer 119

1. proximate cause Art. 1739 Article 1739. In order that the common carrier may be exempted from responsibility, the natural disaster must have been the proximate and only cause of the loss. However, the common carrier must exercise due diligence to prevent or minimize loss before, during and after the occurrence of flood, storm or other natural disaster in order that the common carrier may be exempted from liability for the loss, destruction, or deterioration of the goods. The same duty is incumbent upon the common carrier in case of an act of the public enemy referred to in article 1734, No. 2. EOD shall exist before, during, after Proximate cause > the cause of the cause is the cause of the evil caused > that cause, which, in natural and continuous sequence, unbroken by any efficient intervening cause, produces the injury, and without which the result would not have occurred

Question 120

Is proximate cause indispensable in proving negligence?

Answer 120

- no - kasi diba need lang maprove na may contract between them during the happening of loss, destruction or deterioration tapos may assumption of negligence na proximate cause is inapplicable to a contract of carriage. The injured passenger or owner of goods need not prove causation to establish his case. The presumption arises upon the happening of the accident. >> pero this is not entirely useless in such a case kasi pwede sya magamit sa defense

Question 121

2 types of defenses

Answer 121

1. fully bars recovery from the carrier (fortuitous) | 2. mitigates recovery

Question 122

Defenses available to a common carrier

Answer 122

Art. 1734 Article 1734. Common carriers are responsible for the loss, destruction, or deterioration of the goods, unless the same is due to any of the following causes only: (1) Flood, storm, earthquake, lightning, or other natural disaster or calamity; (2) Act of the public enemy in war, whether international or civil; (3) Act or omission of the shipper or owner of the goods; (4) The character of the goods or defects in the packing or in the containers; (5) Order or act of competent public authority. >> exclusive ba tong list na to? No.

Question 123

Delayed voyage

Answer 123

Delayed voyage means “late departure of the vessel from its port of origin and/ or late arrival of the vessel to its port of destination.”

Question 124

Unreasonable delay

Answer 124

Unreasonable delay means “the period of time that has lapsed without just cause and is solely attributable to the carrier which has prejudiced the transportation of the passenger and/ or cargoes to their port of destination.”

Question 125

Options of passenger on delay

Answer 125

Refund: If the vessel is not able to depart on time and the delay is unreasonable, the passenger may opt to have his/ her ticket refunded without refund service fee. Revalidation: A passenger who failed to board the vessel can refund or revalidate the ticket subject to surcharges.

Question 126

Revalidation

Answer 126

Revalidation means “the accreditation of the ticket that is not used and intended to be used for another voyage.”

Question 127

Carrier’s Lien

Answer 127

A type of lien that gives a security interest in shipped goods to a shipper that publicly operates a business for the transportation of goods. This lien typically arises when the shipper takes possession of the goods and lasts until the shipper has been paid for their transportation. If someone fails to pay for shipment as promised, a carrier's lien allows the carrier to keep the goods as collateral. Limited for 30 days under Art. 2241

Question 128

If consignor or the consignee fails to pay the consideration for the transportation of goods, the carrier may exercise his lien in accordance with Art. 375 of Code of Commerce:

Answer 128

ARTICLE 375. The goods transported shall be especially bound to answer for the cost of transportation and for the expenses and fees incurred for them during their conveyance and until the moment of their delivery. This special right shall prescribe eight days after the delivery has been made, and once prescribed, the carrier shall have no other action than that corresponding to him as an ordinary creditor. *The eight-day limitation in the second paragraph of Article 375 was already modified by Article 2241(9) of the NCC that gives preference to credits for transportation upon the goods carried for the price of the contract and incidental expenses until their delivery and for 30 days thereafter. Article 2241. With reference to specific movable property of the debtor, the following claims or liens shall be preferred: xxx (9) Credits for transportation, upon the goods carried, for the price of the contract and incidental expenses, until their delivery and for thirty days thereafter; xxx

Question 129

Provision on Charter Parties on the Code of Commerce

Answer 129

Article 665 The cargo shall be specially liable for the payment of the freight expenses, and duties arising therefrom, which must be reimbursed by the shippers, as well as for the part of the general average which may be due, but it shall not be legal for the captain to delay unloading on account of delay in complying with this obligation. Should there be reasons for distrust, the judge or court, at the instance of the captain, may order the deposit of the merchandise until he has been paid in full. Article 666. The captain may request the sale of the cargo to the amount necessary to pay the freight, expenses, and averages due him, reserving the right to demand the balance due him therefor if the proceeds of the sale should not have sufficed to cover his credit. Article 667. The goods loaded shall be liable in the first place for their freight and expenses during twenty days, to be counted from the date of their delivery or deposit. During this period, the sale of the same may be requested, even though there be other creditors and the case of bankruptcy of the freighter or consignee should occur. This right cannot be made use of, however, on the goods which after being delivered, were turned over to a third person without malice on the part of the latter and for a valuable consideration.

Question 130

A carrier has such a lien only while it retains possession of the goods. T or F.

Answer 130

True. delivery of the goods to the consignee or a third person terminates, or constitutes a waiver of, the lien

Question 131

What are the defenses available to any common carrier to limit or exempt it from liability?

Answer 131

The defenses available to any common carrier to limitor exempt it from liability are: 1. observance of extraordinary diligence, 2. or the proximate cause of the incident is a fortuitous event or force majeure, 3. act or omission of the shipper or owner of the goods, 4. the character of the goods or defects in the packing or in the containers, and 5. order or act of competent public authority, without the common carrier being guilty of even simple negligence (Article 1734, NCC) Best and sixth defense is EOD

Question 132

Why is the defense of due diligence in the selection and supervision of an employee not available to a common carrier?

Answer 132

The defense of due diligence in the selection and supervision of an employee is not available to a common carrier because the degree of diligence required of a common carrier is not the diligence of a good father of a family but extraordinary diligence, i.e., diligence of the greatest skill and utmost foresight.

Question 133

General Rule: Common carriers are liable for: 1. The loss, destruction, or deterioration of the goods they are transporting Exceptions: ?? 2. Deaths and injuries caused to passengers. (Civil Code, Art. 1756)

Answer 133

a) Natural disaster or calamity; - flood, storm, earthquake, lightning or others - natural disaster must be the proximate and only cause - cc must have exercised due diligence to prevent or minimize the loss before, during, after - common carrier not in delay - FIRE: only exempting if caused by natural disaster like lightning - Heavy seas and rain are not exempting for sea carriers b) Act of the public enemy in war, whether international or civil; c) Act or omission of the shipper or owner of goods - if proximate cause, exempting - if contributory negligence, mitigating - immediate protest by the carrier; otherwise, carrier may be in estoppel d) The character of the goods or defects in the packaging or in the containers; - this particular exempting cause only refers to cases when goods are lost or damaged while in transit as a result of natural decay of perishable goods, fermentation or evaporation of substances liable therefor, necessary and natural wear and tear of goods in transport, defects in the packages, natural propensities of animals e) Order or act of a competent public authority. (Civil Code, Art. 1734) - said public authority had the power to issue the order - order was lawful - order was issued under legal processes of authority - indi pwede defense na akala may authority pero wala pala kasi EOD

Question 134

Transport Network Companies (TNCs)

Answer 134

Persons or entities that provide pre-arranged transportation services for compensation, using an internet-based technology application or digital platform technology to connect passengers with drivers using their personal vehicles.

Question 135

Transportation Network Vehicle Services (TNVS)

Answer 135

Refers to TNC-accredited private vehicle owner using the internet-based technology application or digital platform technology transporting passengers from one point to another for compensation.

Question 136

TNVSs are not considered to be common carriers. T or F.

Answer 136

False. TNVSs are expressly considered to be common carriers. Furthermore, TNVSs cannot operate as common carriers outside of or independent from the use of internet-based technology of the TNC or TNCs to which they are accredited. Grab and Angkas are examples of a TNC, while a Grab driver and Angkas rider are examples of TNVS.

Question 137

TNVSs cannot operate as common carriers outside of or independent from the use of internet-based technology of the TNC or TNCs to which they are accredited. T or F.

Answer 137

True.

Question 138

Requisites for force majeure

Answer 138

1. The event must be independent of human will 2. The occurrence must render it impossible for the debtor to fulfill its obligation in a normal manner 3. The debtor must not have participated or aggravated the injury to the creditor 4. The event must have been unforeseeable, or if it could be foreseen, unavoidable

Question 139

Defenses in the carriage of goods

Answer 139

(1) force majeure (2) inherent fault in the goods, and (3) defects in the packaging

Question 140

Common carriers are liable for the death of or injuries to passengers through the negligence or wilful acts of the former's employees, although such employees may have acted beyond the scope of their authority or in violation of the orders of the common carriers. This liability of the common carriers does not cease upon proof that they exercised all the diligence of a good father of a family in the selection and supervision of their employees.

Answer 140

Art. 1759

Question 141

A common carrier is responsible for injuries suffered by a passenger on account of the willful acts or negligence of other passengers or of strangers, if the common carrier's employees through the exercise of the diligence of a good father of a family could have prevented or stopped the act or omission.

Answer 141

Art. 1763

Question 142

Contributory negligence of shipper

Answer 142

This is not a defense that will excuse the carrier from liability. It will only mitigate such liability. 1741

Question 143

The passenger must observe the diligence of a good father of a family to avoid injury to himself. T or F.

Answer 143

True. 1761

Question 144

Contributory negligence of passenger

Answer 144

Does not bar recovery of damages for his death or injuries, if the proximate cause thereof is the negligence of the common carrier, but the amount of damages shall be equitably reduced. 1762

Question 145

In which cases may a common carrier be exempted if the fault is through the shipper or passenger

Answer 145

1. failure of the shipper to disclose the nature of the goods 2. improper marking or direction as to destination 3. improper loading when he assumes such responsibility

Question 146

Doctrine of avoidable consequence

Answer 146

It is a well-recognized principle of law that damages resulting from avoidable consequences of the breach of a contract or other legal duty are not recoverable. Passengers must observe the diligence of a good father of a family to avoid injury to himself.

Question 147

Doctrine of Last Clear Chance

Answer 147

Where both parties are negligent but the negligent act of one is appreciably later than that of the other, or where it is impossible to determine whose fault or negligence caused the loss, the one who had the last clear opportunity to avoid the loss but failed to do so is chargeable with the loss.

Question 148

Assumption of risk

Answer 148

The doctrine of assumption of risk is a defense in negligence cases involving quasi-delicts, wherein one who voluntarily assumed the risk of injury from a known danger is debarred from a recovery. A plaintiff cannot recover on the basis of the defendant’s negligence. It is said that one who knows, appreciates, and deliberately exposes himself to a danger ‘assumes the risk’ thereof. Elements: 1) plaintiff must know presence of risk; 2) he must understand its nature; 3) his choice to incur it is free and voluntary

Question 149

Sub-contractor

Answer 149

A subcontractor (or sub-contractor) is a company or person whom a general contractor, prime contractor or main contractor hires to perform a specific task as part of an overall project and normally pays for services provided to the project.

Question 150

Even if no tickets were issued, a verbal contract to carry is already a binding consensual contract.

Answer 150

Yes. An action for damages may be sustained for breach of contract to carry. British Airways, Inc. v. The Hon. Court of Appeals

Question 151

X died after he fell on the LRT tracks and was struck by a moving train which was coming in at the exact moment that X fell from the platform. Is there breach of contract?

Answer 151

Yes. X was treated as a passenger because he entered the LRT station after having purchased a token and he fell while he was on the platform waiting for a train. Thus, X was in the place designated for boarding the train with the intention of riding the oncoming train.

Question 152

X brought 7 sacks of palay to the PNR. He paid its freight charges and was issued Way Bill No. 1. The cargo was loaded on the freight wagon of the train. Without any permission, X boarded the freight wagon and not the passenger coach. Shortly after the train started, it was derailed. The freight wagon fell on its side, killing X. There is no evidence that X brought a ticket or paid his fare at the same time he paid the freight charges for his cargo. Is X a passenger of PNR?

Answer 152

No, X was not a passenger. X, who was a stowaway was a mere trespasser. Hence, the carrier assumes no duty of care in favor of X.

Question 153

City Railways, Inc. provides train service, for a fee, to commuters from Manila to Calamba. Commuters are required to purchase tickets and then proceed to designated loading and unloading facilities to board the train. X purchased a ticket for Calamba and entered the station. While waiting, he had an altercation with the security guards of CRI leading to a fistfight. X fell on the railway just as a train was entering the station. X was run over by the train. He died. In the action for damages filed by the heirs of X, CRI interposed lack of cause of action, contending that the mishap occurred before X boarded the train and that it was not guilty of negligence. Decide.

Answer 153

The contention of CRI that the heirs have no cause of action is untenable. There was already a perfected contract to carry X and the carrier already owed him extraordinary diligence. The obligation of the carrier to carry X to his destination was breached, hence, CRI is liable for culpa-contractual.

Question 154

Continuing offer rule

Answer 154

it is the duty of the drivers to stop their conveyances for a reasonable length of time in order to afford passengers an opportunity to board and enter, and they are liable for injuries suffered by boarding passengers resulting from sudden starting up of the carrier. It follows that the passenger is deemed to be accepting the offer if he already attempting to board the conveyances and the contract of carriage is PERFECTED from that point.

Question 155

Elements of a common carrier

Answer 155

a. persons' corporations, firms or associations b. engaged in the businessof carrying or transportingpassengers, goods or both c. means of carriage is by land, water or air d. the carrying of passengers , goods or both is for compensation e. the service is offered to the public without distinction

Question 156

Characteristics/General rules/Principles

Answer 156

1) Art. 1732 makes no distinction between one whose business activity is the carrying of persons or goods or both, and one who does such carrying only as an ancillary activity (in local idiom, as a "sideline") 2) Art. 1732 also carefully avoids making any distinction between a person or enterprise offering transportation service on a regular or scheduled basis and one offering such service on an occasional, episodic or unscheduled basis 3) Art. 1732 does not distinguish between a carrier offering its services to the "general public" i.e., the general community or population, and one who offers services or solicits business only from a narrow segment of the general population 4) A person or entity is a common carrier and has the obligations of the common carrier under the Civil Code even if he did not secure a Certificate of Public Convenience 5) The Civil Code makes no distinction as to the means of transporting, as long as it is by land, water, or air. 6) The Civil Code does not provide that the transportation should be by motor vehicle 7) A person or entity may be a common carrier even if he has no fixed and publicly known route, maintains no terminals, and issues no tickets 8) A person or entity need not be engaged in the business of public transportation for the provisions of the Civil Code on common carriers to apply to them.

Question 157

Broader Concept

Answer 157

Common carriers is an expanding concept. Carriers which are considered common carriers in a number of decisions do not fall neatly into the concept of common carriers contemplated in the test announced in National Steel Corporation v. Court of Appeals.

Question 158

Although the clientele is limited, the regularity of the activities of a carrier may indicate that the same carrier is a common carrier. T or F.

Answer 158

True.

Question 159

Broker

Answer 159

A freight broker is a middleman between shippers and carriers. Instead of taking possession of the freight, the broker facilitates communication between the shipper and the carrier. They're the ones making sure the handoff goes smoothly between carriers and shippers, and that freight arrives safely, on time. A customs broker has been regarded as a common carrier because transportation of goods is an integral part of its business.

Question 160

Lighterage through barges

Answer 160

Lightering (also called lighterage) is the process of transferring cargo between vessels of different sizes, usually between a barge (lighter) and a bulker or oil tanker. Lightering is undertaken to reduce a vessel's draft so it can enter port facilities that cannot accept large fully-loaded ocean-going vessels. Lightering can also refer to the use of a lighter barge for any form of short-distance transport, such as to bring railroad cars across a river. In addition, lightering can refer to the process of removing oil or other hazardous chemicals from a compromised vessel to another vessel to prevent an oil spill.

Question 161

Freight forwarder

Answer 161

A freight forwarder is a firm specializing in the arrangement of cargo on behalf of shippers. In most cases, freight forwarders provide a variety of supply chain services, including: Ocean or air freight transportation. Inland transportation from origin and/or to destination.

Question 162

Effect of charter on character of carrier

Answer 162

Generally, the character of the common carrier as such is not affected by the charter party if the same is a contract of affreightment.

Question 163

Common carriers v. Travel Agency

Answer 163

A travel agency is not a common carrier. In many cases, the object of a contractual relation of a person who purchases a ticket through a travel agency is only the agency's services of arranging and facilitating the booking, ticketing and accommodation in a package tour. In contrast, the object of the contract with a common carrier is transportation. The contract between the travel agency is a contract of service and not a contract of carriage. The diligence required of a travel agency is not extraordinary diligence but that of a good father of a family.

Question 164

Cargo operation

Answer 164

1. Line service: the operation of a common carrier which publicly offers services without discrimination to any user, has regular ports of call/destination, fixed sailing schedules and frequencies and published freight rates and attendant charges and usually carries multiple consignments. Liners carry "general cargoes," meaning whatever is offered is accepted for shipment. 2. Tramp service: the operation of a contract carrier which has no regular and fixed routes and schedules but accepts cargo wherever and whenever the shipper desires, is hired on a contractual basis, or chartered by any one or few shippers under mutually agreed terms and usually carries bulk or break bulk cargoes. Tramps offer their capacity for the carriage of bulk cargoes as desired by the shipper, who ordinarily engages the whole of the ship; each voyage is thus a matter of special arrangement between the shipowner and shipper. The tramp seeks and usually gets a full cargo loaded by a single shipper and such cargoes are most often in bulk or in standard packages and typically consist of raw materials, fuels and unprocessed foods so vital to the world economy. RA 9515 While RA 9515 refers to an entity engaged in line service as a common carrier, an entity that provides tramp service is only referred to as contract carrier. Nevertheless, those engaged in tramp service may also be considered common carriers depending on the circumstances.

Question 165

Governing Laws

Answer 165

Civil Code. In all matters not regulated by this Code, the rights and obligations of common carriers shall be governed by the Code of Commerce and by special laws. 1766 The law of the country to which the goods are to be transported shall govern the liability of the common carrier for their loss, destruction or deterioration. 1753 Treaties are also part of the law of the land.

Question 166

Nature of business

Answer 166

Common carriers exercise a sort of public office and have duties to perform in which the public is interested. The business of common carriers impinges directly and intimately upon the safety, well being and property of the members of the general community who happen to deal with such carrier.

Question 167

Registration Laws

Answer 167

Read p. 24 of Aquino PDF

Question 168

The policy which prohibits "kabit system" may also be applied to vessels and aircrafts that are covered by certificates of public convenience and necessity. T or F.

Answer 168

True. Sec. 44, RA 9497

Question 169

Factors in determining reasonable discrimination include

Answer 169

1) suitability to the vessel for the transportation of such products; 2) reasonable possibility of danger or disaster resulting from their transportation in the form and under the conditions in which they are offered for carriage; and 3) the general nature of the business done by the carrier.

Question 170

Art. 356 of CoC

Answer 170

Carriers may refuse to accept packages which appear unfit for transportation; and if said transportation is to be made over a railroad, and the shipment is insisted on, the company shall carry it, being exempt from all liability if its objections are so stated in the bill of lading.

Question 171

Art. 357 of CoC

Answer 171

If the carrier by reason of well-founded suspicions as to the correctness of the declaration of the contents of a package should determine to examine it, he shall do so before witnesses, in the presence of the shipper or of the consignee. Should the shipper or consignee to be cited not appear, the examination shall be made before a notary, who shall draft a certificate of the result of the examination, for the proper purposes. If the declaration of the shipper should be correct, the expenses caused by the examination and those of carefully repacking the packages shall be defrayed by the carrier, and in a contrary case by the shipper.

Question 172

Transportation of animals

Answer 172

Under Memorandum Circular Number 2020-003, pet animals must be put in a cage/animal carrier free from foul order if loaded on mass transport such as public buses, jeepneys, UV Express service, and Premium Point-to-Point (P2P) bus service without having to compromise safety, health issues, and convenience of other passengers. The memo also noted that pets must wear animal diaper to maintain cleanliness and sanitation at all times during the journey. Pets placed inside a carrier or cage must be beside the passenger-owner and must pay the corresponding fare in an amount the same as that of the paying passenger per seat occupied. It stipulated that dog sizes allowed in PUVs must be from the range of small to medium-sized dogs, highlighting that large and giant dogs shall not be allowed. No public utility shall transport any such animal without a written permit from the Director of the Bureau of Animal Industry or his/her authorized representative. No cruel confinement or restraint shall be made on such animals while being transported.

Question 173

Consequences of delay

Answer 173

1. Carrier liable even if natural disaster caused the damage 2. Stipulation limiting liability of carrier is inoperative 3. Carrier liable for damages caused by delay and consignee may exercise right to abandon * excusable delays suspend contract of carriage * carrier must follow usual reasonable commercial or customary route, liable if there is improper deviation (none if to replenish fuel in voyage) * in case of delay by carrier, consignee may leave transported goods in hands of carrier, informing in writing before arrival at point of destination (exceptional but limited right to abandon), carrier liable for total value of goods * abandonment by virtue of stipulation or agreement between parties

Question 174

If the common carrier negligently incurs in delay in transporting the goods, a natural disaster shall not free such carrier from responsibility.

Answer 174

Yes. 1740

Question 175

If the common carrier, without just cause, delays the transportation of the goods or changes the stipulated or usual route, the contract limiting the common carrier's liability cannot be availed of in case of the loss, destruction, or deterioration of the goods.

Answer 175

Yes. 1747

Question 176

If a period has been fixed for the delivery of the goods, it must be made within the same, and otherwise the carrier shall pay the indemnity agreed upon in the bill of lading, neither the shipper nor consignee being entitled to anything else. Should no indemnity have been agreed upon and the delay exceeds the time fixed in the bill of lading, the carrier shall be liable for the damages which may have been caused by the delay.

Answer 176

CoC Art. 370

Question 177

A carrier who delivers merchandise to a consignee by virtue of agreements or combined services with other carriers shall assume the obligations of the carriers who preceded him, reserving his right to proceed against the latter if he should not be directly responsible for the fault which gives rise to the claim of the shipper or of the consignee. The carrier making the delivery shall also assume all the actions and rights of those who may have preceded him in the transportation. The sender and the consignee shall have an immediate right of action against the carrier who executed the transportation contract, or against the other carriers who received the goods transported without reserve. The reservations made by the latter shall not exempt them, however, from the liabilities they may have incurred by reason of their own acts.

Answer 177

CoC Art. 373

Question 178

Shipper without changing the place where delivery is to be made, may change consignment of goods which he delivered to carrier, provided that at time of ordering the change of consignee the bill of lading signed by carrier, if one has been issued, be returned to him, in exchange for another wherein the novation of contract appears. The expenses where the change of consignment occasions shall be for account of shipper.

Answer 178

CoC, 360

Question 179

C must deliver to the consignee without any delay or the obstruction the goods which he may have received by mere fact of being named in the bill of lading to receive them, and if he does not do so, he shall be liable for damages which may be caused thereby.

Answer 179

CoC, 368

Question 180

If consignee cannot be found at residence indicated in bill of lading or if he refuses to pay the transportation charges and expenses, or if he refuses to receive the goods, the municipal judge, where there is none of the first instance, shall prove for their deposit at disposal of shipper this deposit producing all the effects of delivery without prejudice to 3rd parties with a better right.

Answer 180

CoC, 369

Question 181

Effect of a negotiable bill of lading

Answer 181

* BOL— document of title may be transferred to holder for value, whom carrier is obligated to deliver to * transferee whom BOL is negotiated acquires direct obligation of carrier from time of negotiation

Question 182

Art 1513 A person to whom a negotiable document of title has been duly negotiated acquires thereby

Answer 182

1. Such title to the goods as the person negotiating the document to him had or had ability to convey to a purchaser in good faith for value and also such title to the goods as person to whose order goods were to be delivered by terms of document had or had ability to convey to a purchaser in good faith for value 2. The direct obligation of bailee issuing the document to hold possession of goods for him according to terms of document as fully as if such bailee had contracted directly with him

Question 183

Bill of lading

Answer 183

A written acknowledgment, signed by the master of a vessel or other authorized agent of the carrier, that he has received the described goods from the shipper, to be transported on the expressed terms, to the described place of destination, and to be delivered there to the designated consignee or parties.

Question 184

In the absence of a bill of lading the respective claims of the parties shall be decided by the legal proofs that each one may submit in support of his claims, in accordance with the general provisions established in this Code for commercial contracts.

Answer 184

CoC, 354

Question 185

A shipper who receives a bill of lading without objection after an opportunity to inspect it, and permits the carrier to act on it by proceeding with the shipment is presumed to have accepted it as correctly stating the contract and to have assented to its terms.

Answer 185

Oki.

Question 186

Surrendering a bill of lading

Answer 186

Returning the document in exchange for the goods transported

Question 187

Effect of forged bill of lading

Answer 187

A forged bill of lading is in the eyes of the law a nullity. It is simply a piece of paper with writing on it, which has no effect whatever. Delivery of the goods upon production of a forged bill of lading is therefore in exchange for a worthless piece of paper and not for the original bill of lading.

Question 188

Effects of delayed and unfinished voyage:

Answer 188

3. 1 In case the vessel cannot continue or complete her voyage for any cause, the carrier is under obligation to transport the passenger to his/her destination at the expense of the carrier including free meals and lodging before said passenger is transported to his/her destination. A passenger may opt to have his/her ticket refunded in full if the cause of unfinished voyage is due to negligence of the carrier, or to an amount that will suffice to defray transportation cost at shortest possible route towards his/her destination if cause of unfinished voyage is a fortuitous event. 3. 2 Carrier shall provide meals, free of charge, during mealtime in case the vessel is delayed in arrival at port of destination 3. 3 In case of delay in departure or port of origin due to the carrier's negligence, the carrier is also under obligation to provide meals, free of charge, during meal time to ticketed passengers for a particular voyage. If the cause of delay is a fortuitous event, the carrier is under no obligation to serve free meals to passengers. 3. 4 The carrier is under obligation to duly inform the passengers of the change in sailing schedule of the vessels.

Question 189

Art. 1733

Answer 189

Common carriers, from the nature of their business and for reasons of public policy, are bound to observe extraordinary diligence in the vigilance over the goods and for the safety of the passengers transported by them, according to all the circumstances of each case. Such extraordinary diligence in the vigilance over the goods is further expressed in articles 1734, 1735, and 1745, Nos. 5, 6, and 7, while the extraordinary diligence for the safety of the passengers is further set forth in articles 1755 and 1756.

Question 190

Art. 1755

Answer 190

A common carrier is bound to carry the passengers safely as far as human care and foresight can provide, using the utmost diligence of very cautious persons, with a due regard for all the circumstances.

Question 191

Effects of delivery of damaged goods

Answer 191

ARTICLE 363. Outside of the cases mentioned in the second paragraph of Article 361, the carrier shall be obliged to deliver the goods shipped in the same condition in which, according to the bill of lading, they were found at the time they were received, without any damage or impairment, and failing to do so, to pay the value which those not delivered may have at the point and at the time at which their delivery should have been made. If those not delivered form part of the goods transported, the consignee may refuse to receive the latter, when he proves that he cannot make use of them independently of the others. ARTICLE 364. If the effect of the damage referred to in Article 361 is merely a diminution in the value of the goods, the obligation of the carrier shall be reduced to the payment of the amount which, in the judgment of experts, constitutes such difference in value. ARTICLE 365. If, in consequence of the damage, the goods are rendered useless for sale and consumption for the purposes for which they are properly destined, the consignee shall not be bound to receive them, and he may have them in the hands of the carrier, demanding of the latter their value at the current price on that day. If among the damaged goods there should be some pieces in good condition and without any defect, the foregoing provision shall be applicable with respect to those damaged and the consignee shall receive those which are sound, this segregation to be made by distinct and separate pieces and without dividing a single object, unless the consignee proves the impossibility of conveniently making use of them in this form. The same rule shall be applied to merchandise in bales or packages, separating those parcels which appear sound.

Question 192

Transportation of special categories of passengers

Answer 192

1. Transportation of disabled passengers and passengers with reduced mobility 2. Transportation of children and pregnant women

Question 193

Effect of acquittal

Answer 193

If in a criminal action the common carrier's driver is acquitted on reasonable doubt, a civil action for damages against him may be instituted for the same act or omission.

Question 194

Marine Insurance is unique in that it has certain implied warranties:

Answer 194

1. Implied Warranty of Seaworthiness 2. Implied Warranty of Against Improper Deviation 3. Implied Warranty of proper Documentation

Question 195

Implied Warranty of Seaworthiness

Answer 195

In every marine insurance upon a ship or freight, or freightage, or upon anything which is the subject of marine insurance, a warranty is implied that the ship is seaworthy.

Question 196

A vessel is seaworthy if:

Answer 196

1. It is fit to perform the service and to encounter the ordinary perils of the voyage contemplated by the parties to the policy [Sec. 116]; 2. It is properly laden; 3. It is provided with a competent master; 4. It is provided with a sufficient number of competent officers and seamen; 5. It is provided with the requisite appurtenances and equipment; 6. It is provided with other necessary or proper stores and implements for voyage. [Sec.118]

Question 197

A vessel should be seaworthy at the time commencement of the risk or start of the voyage, except:

Answer 197

1. When the insurance is made for a specified length of time, the implied warranty is not complied with unless the ship be seaworthy at the commencement of every voyage it undertakes during that time (Time Policy); 2. When the insurance is upon the cargo which, by the terms of the policy, description of the voyage, or established custom of the trade, is to be transhipped at an intermediate port, the implied warranty is not complied with unless each vessel upon which the cargo is shipped, or transhipped, be seaworthy at the commencement of each particular voyage (Cargo Policy) [Sec. 117]. Where different portions of the voyage contemplated by a policy differ in respect to the things requisite to make the ship seaworthy therefor, a warranty of seaworthiness is complied with if, at the commencement of each portion, the ship is seaworthy with reference to that portion [Sec. 119].

Question 198

In examining what is meant by seaworthiness we must bear in mind the dual nature of the carriers obligations under a contract of affreightment. To satisfy these duties the vessel must (a) be efficient as an instrument of transport and (b) as a storehouse for her cargo. The latter part of the obligation is sometimes referred to as cargoworthiness. A ship is efficient as an instrument of transport if its hull, tackle and machinery are in a state of good repair, if she is sufficiently provided with fuel and ballast, and is manned by an efficient crew. And a vessel is cargoworthy if it is sufficiently strong and equipped to carry the particular kind of cargo which she has contracted to carry, and her cargo must be so loaded that it is safe for her to proceed on her voyage. A mere right given to the charterer to inspect the vessel before loading and to satisfy himself that she was fit for the contracted cargo does not free the shipowner from his obligation to provide a cargoworthy ship.

Answer 198

Oki.

Question 199

Proper manning

Answer 199

On top of regular maintenance and inspection, Captains, masters or patrons of vessels must prove the skill, capacity, and qualifications necessary to command and direct the vessel. If the owner of a vessel desires to be the captain without having the legal qualifications, he shall limit himself to the financial administration of the vessel and shall entrust the navigation to a qualified person. Note: It is not an excuse that the carrier cannot afford the salaries of competent and licensed crew or that latter is unavailable.

Question 200

Adequate equipment

Answer 200

- With respect to vessels that carries passengers, the Maritime Industry Authority prescribes rules which provide for indispensable equipment and facilities - ex. Exit doors, life boats, live vests

Question 201

Deck Cargo

Answer 201

GR: Generally, the duty of the carrier is to stow cargo in the hold and not to place it in an exposed position on the open deck. Exception: Stipulation It is valid to stipulate that the cargo is to be carried on deck at the shipper’s risk. The shipper may consent to have his goods carried on deck, in which case, he takes the risk of any damage or loss sustained as a consequence of their being so carried. The shipper bears loss in such cases.

Question 202

The Doctrine of Limited Liability (Hypothecary Rule)

Answer 202

The real and hypothecary nature of maritime law simply means that the liability of the carrier in connection with losses related to maritime contracts is confined to the vessel, which is hypothecated for such obligations or which stands as the guaranty for their settlement. It has its origin by reason of the conditions and risks attending maritime trade in its earliest years when such trade was replete with innumerable and unknown hazards since vessels had to go through largely uncharted waters to ply their trade. It was designed to offset such adverse conditions and to encourage people and entities to venture into maritime commerce despite the risks and the prohibitive cost of shipbuilding. Thus, the liability of the vessel owner and agent arising from the operation of such vessel were confined to the vessel itself, its equipment, freight, and insurance, if any, which limitation served to induce capitalists into effectively wagering their resources against the consideration of the large profits attainable in the trade

Question 203

When on account of the force majeure, the carrier had to take another route which resulted to an increase in transportation charges, he shall be reimbursed upon formal proof. T or F.

Answer 203

True.

Question 204

Contract of affreightment

Answer 204

charterer hires the vessel only, either for a determinate period of time or for a single or consecutive voyage, with the SO providing for the provision of the ship, wages of the master and crew, and expenses for maintenance of the vessel a. time charter – vessel is leased to a charterer for a fixed period of time b. voyage charter – vessel is leased for a single or particular voyage

Question 205

Inspections made by port authorities cannot be considered violation of the right against unreasonable searches and seizure.

Answer 205

Yes. They have the right to do so. The reason behind it is that there is a reasonable reduced expectation of privacy when coming into airports or ports of travel. Persons may lose the protection of the search and seizure clause by exposure of their persons or property to the public in a manner reflecting a lack of subjective expectation of privacy, which expectation society is prepared to recognize as reasonable. Such recognition is implicit in airport security procedures. With increased concern over airplane hijacking and terrorism has come increased security at the nation's airports. Passengers attempting to board an aircraft routinely pass through metal detectors; their carry-on baggage as well as checked luggage are routinely subjected to x-ray scans. Should these procedures suggest the presence of suspicious objects, physical searches are conducted to determine what the objects are. There is little question that such searches are reasonable, given their minimal intrusiveness, the gravity of the safety interests involved, and the reduced privacy expectations associated with airline travel. Indeed, travelers are often notified through airport public address systems, signs and notices in their airline tickets that they are subject to search and, if any prohibited materials or substances are found, such would be subject to seizure. These announcements place passengers on notice that ordinary constitutional protections against warrantless searches and seizures do not apply to routine airport procedures.

Question 206

Insurance

Answer 206

Compulsory coverage for passengers and cargoes

Question 207

Roadworthiness

Answer 207

The common carrier must make sure that the vehicle, including the seats, furniture, or equipment to be used by the passenger are in good order and condition

Question 208

Unless there is proof to the contrary, it is presumed that a person driving a motor vehicle has been negligent if at the time of the mishap, he was violating any traffic regulation. T or F.

Answer 208

True. 2185 Requirement: proof of violation of traffic rules

Question 209

Related Laws

Answer 209

* Land Transportation and Traffic Code (RA 413) * Children’s Safety on Motorcycle Act of 2015 * Motorcycle Helmet Act of 2009 (RA 10586) * Anti-Drunk and Drugged Driving Act of 2013 * Anti-Distracted Driving Act (RA 10913) * Ordinances issued by the MMDA and Local Government Units

Question 210

Vicarious liability

Answer 210

only for contractual obligations – employer-employee relationship Whenever an employee’s negligence causes damage or injury to another, there instantly arises a presumption juris tantum that the employer failed to exercise diligentissimi patris families in the selection or supervision of his employee. Thus, in the selection of prospective employees, employers are required to examine them as to their qualification, experience and service record. With respect to the supervision of employees, employers must formulate standard operating procedures, monitor their implementation, and impose disciplinary measures for breaches thereof. These facts must be shown by concrete proof, including documentary evidence This article provides for the solidary liability of an employer for the quasi-delict committed by an employee. The responsibility of employers for the negligence of their employees in the performance of their duties is primary and, therefore, the injured party may recover from the employers directly, regardless of the solvency of their employees. Liability is solidary as joint-tortfeasor

Question 211

The owners and managers of an establishment or enterprise are likewise responsible for damages caused by their employees in the service of the branches in which the latter are employed or on the occasion of their functions.

Answer 211

The responsibility treated of in this article shall cease when the persons herein mentioned prove that they observed all the diligence of a good father of a family to prevent damage.

Question 212

Search and seizure

Answer 212

Generally allowed. While in transit, a bus can still be searched by government agents or the security personnel of the bus owner in the following three instances. First, upon receipt of information that a passenger carries contraband or illegal articles, the bus where the passenger is aboard can be stopped en route to allow for an inspection of the person and his or her effects. This is no different from an airplane that is forced to land upon receipt of information about the contraband or illegal articles carried by a passenger onboard. Second, whenever a bus picks passengers en route, the prospective passenger can be frisked and his or her bag or luggage be subjected to the same routine inspection by government agents or private security personnel as though the person boarded the bus at the terminal. This is because unlike an airplane, a bus is able to stop and pick passengers along the way, making it possible for these passengers to evade the routine search at the bus terminal. Third, a bus can be flagged down at designated military or police checkpoints where State agents can board the vehicle for a routine inspection of the passengers and their bags or luggages.

Question 213

Insurance

Answer 213

Compulsory Motor Vehicle Liability Insurance (CMVLI). a. Compulsory Third Party Liability (CTPL) - mandated by the Land Transportation Office (LTO) of the Philippines for all motor vehicle owners. CTPL protects you from any possible liability for a third party caused bodily injury and/or death in an accident arising from the use of your motor vehicle. b. Comprehensive insurance.  - Unlike TPL insurance, this one has a wider coverage than just third-party insurance. The other parties, involved as well as you and your passengers, are also covered. The coverage also extends beyond accidentally hitting someone; a comprehensive insurance coverage protects you from a wider range of incidents. You can even file for a claim if you inadvertently damage your own car.  c. Personal Passenger Accident Insurance Program (PPAIP) - administered jointly by the Land Transportation Franchising and Regulatory Board and the Insurance Commission - sanctioned under Section 387 of the Insurance Code and the LTFRB charter. 0 provides for mandatory insurance coverage for public-utility vehicles (PUVs). PHP 150,000 – death PHP 75,000 – disability

Question 214

Carriage by train

Answer 214

1. Platform must be safe 2. Maintenance of Train and Tracks 3. Embarking and Disembarking Passengers 4. Negligence in the Operation of the Train 5. Passengers who fell from the Train 6. Persons and Properties ran over by Trains 7. Damage to Properties and Persons near Railroad Tracks

Question 215

Railroad Crossing Cases

Answer 215

• Quasi delict - Article 2176. Whoever by act or omission causes damage to another, there being fault or negligence, is obliged to pay for the damage done. Such fault or negligence, if there is no pre-existing contractual relation between the parties, is called a quasi-delict and is governed by the provisions of this Chapter. (1902a) • Culpa contractual – ??? Absence of safety devices and signs Speeding Obligations of Third Persons approaching crossings

Question 216

Obligations of the Passenger and Shipper

Answer 216

1. Duty to exercise due diligence 2. Duty to disclose 3. Payment of freight

Question 217

Can the carrier impute negligence of its employees to the persons or entities that hired the carrier?

Answer 217

No. Sps. Fabre vs. CA: The court adopted the rule that a person who hires a public automobile and gives the driver directions as to the place to which he wishes to be conveyed, but exercises no other control over the conduct of the driver, is not responsible for the acts or negligence of the latter or prevented from recovering for injuries suffered from a collision between the automobile and a train, caused by the negligence of the automobile driver.

Question 218

What does the duty to disclose entail?

Answer 218

a. Information related to the proper storage (i.e. if there is a need special or separate storage place) b. Fair representation of the nature and value of the goods to be carried c. Proper markings on the cargoes

Question 219

Does the carrier have an obligation to inquire into the correctness or sufficiency of such information?

Answer 219

No.

Question 220

Who shall be liable for any damage that may have been caused solely by the dangerous nature of the cargoes or the defect in the packaging of the cargoes?

Answer 220

The shipper.

Question 221

Freight

Answer 221

Goods, but not passengers, that are carried from one place to another, by ship, aircraft, train, or truck, or the system of transporting these goods.

Question 222

Why are common carriers subject to heavy regulation with respect to rates that they are charging upon the public?

Answer 222

The regulation of rates to be charged by public utilities is founded upon the police powers of the State and statutes prescribing rules for the control and regulation of public utilities are a valid exercise thereof. When private property is used for a public purpose and is affected with public interest, it ceases to be juris privati only and becomes subject to regulation. The regulation is to promote the common good. Submission to regulation may be withdrawn by the owner by discontinuing use; but as long as use of the property is continued, the same is subject to public regulation. In regulating rates charged by public utilities, the State protects the public against arbitrary and excessive rates while maintaining the efficiency and quality of services rendered. However, the power to regulate rates does not give the State the right to prescribe rates which are so low as to deprive the public utility of a reasonable return on investment. Thus, the rates prescribed by the State must be one that yields a fair return on the public utility upon the value of the property performing the service and one that is reasonable to the public for the services rendered. The fixing of just and reasonable rates involves a balancing of the investor and the consumer interests.

Question 223

Time to Pay the Freight What is the period within which payment of the freight charges should be made to the carrier for the carriage of goods?

Answer 223

In the absence of any agreement, the consignee who is supposed to pay must do so within 24 hours from the time of delivery Article 374 – The consignees to whom the shipment was made may not defer the payment of the expenses and transportation charges of the goods they receive after the lapse of twenty-four hours following their delivery; and in case of delay in this payment, the carrier may demand the judicial sale of the goods transported in an amount necessary to cover the cost of transportation and the expenses incurred.

Question 224

With respect to carriage of goods by sea, the tickets are purchased in advance. Carriers are not supposed to allow passengers without tickets --- the carrier is bound to observe a “No Ticket, No Boarding Policy”

Answer 224

Yes.

Question 225

Ticket collection and inspection

Answer 225

The carrier shall collect/ inspect the passenger’s ticket within one hour from vessel’s departure as not to disrupt resting or sleeping passengers.

Question 226

Provision on Charter Parties on the Code of Commerce

Answer 226

Article 665. The cargo shall be specially liable for the payment of the freight expenses, and duties arising therefrom, which must be reimbursed by the shippers, as well as for the part of the general average which may be due, but it shall not be legal for the captain to delay unloading on account of delay in complying with this obligation. Should there be reasons for distrust, the judge or court, at the instance of the captain, may order the deposit of the merchandise until he has been paid in full. Article 666. The captain may request the sale of the cargo to the amount necessary to pay the freight, expenses, and averages due him, reserving the right to demand the balance due him therefor if the proceeds of the sale should not have sufficed to cover his credit. Article 667. The goods loaded shall be liable in the first place for their freight and expenses during twenty days, to be counted from the date of their delivery or deposit. During this period, the sale of the same may be requested, even though there be other creditors and the case of bankruptcy of the freighter or consignee should occur. This right cannot be made use of, however, on the goods which after being delivered, were turned over to a third person without malice on the part of the latter and for a valuable consideration.

Question 227

Even on the assumption that petitioner had a lien on the cargo for unpaid freight, the same was deemed waived when the goods were unconditionally released to the consignee at the port of destination. T or F.

Answer 227

True. A carrier has such a lien only while it retains possession of the goods, so that delivery of the goods to the consignee or a third person terminates, or constitutes a waiver of, the lien. The lien of a carrier for the payment of freight charges is nothing more than the right to withhold the goods, and is inseparably associated with its possession and dependent upon it. The shipowner’s lien for freight is not in the nature of a hypothecation which will remain a charge upon the goods after he has parted with possession, but is simply the right to retain them until the freight is paid, and is therefore lost by an unconditional delivery of the goods to the consignee.

Question 228

Under Article 667 of the Code of Commerce, the period during which the lien shall subsist is twenty (20) days. Parenthetically, this has been modified by the Civil Code, Article 2241 whereof provides that credits for transportation of the goods carried, for the price of the contract and incidental expenses shall constitute a preferred claim or lien on the goods carried until their delivery and for thirty (30) days thereafter. During this period, the sale of the goods may be requested, even though there and other creditors and even if the shipper or consignee is insolvent. But, this right may not be made use of where the goods have been delivered and were turned over to a third person without malice on the part of the third person and for a valuable consideration. In the present case, the cargo of cement was unloaded from the vessel and delivered to the consignee on October 23, 1980, without any oral or written notice or demand having been made on SMCSI for unpaid freight on the cargo. Consequently, after the lapse of thirty (30) days from the date of delivery, the cargo of cement had been released from any maritime lien for unpaid freight.

Answer 228

Oki :)

Question 229

The passenger or shipper may be required to secure the necessary permits for the transportation of certain goods.

Answer 229

Vehicles, animals, plants, forest products, fish and aquatic products, minerals and mineral products, and toxic and hazardous materials to be loaded onboard interisland ships

Question 230

Checked-in baggage

Answer 230

Checked-in baggage is considered “goods” and the passenger is considered the shipper/consignee. Thus, extraordinary diligence is required.

Question 231

Baggage in possession of passengers

Answer 231

Hand-carried baggage are considered items of necessary deposit. Common carriers shall be treated as depositaries. Thus, only ordinary diligence is required.

Question 232

Inspection Duties

Answer 232

General Rule: Carrier may only inquire into the nature of the passenger’s baggage, but not search nor inspect its contents Inquiry may be made as to the nature of passengers’ baggage, but beyond this, constitutional boundaries are already in danger of being transgressed. Exception: Airline companies are required to inspect each and every cargo brought into the aircraft

Question 233

Defenses available to common carriers

Answer 233

1. Proof that they exercised extraordinary diligence; or | 2. Proof that the injury or death was caused by a fortuitous event.

Question 234

THREE-FOLD CHARACTER

Answer 234

A bill of lading serves three purposes: 1. It is receipt of the goods shipped; The issuance of a bill of lading carries the presumption that the goods were delivered to the carrier issuing the bill and is prima facie evidence of the receipt of the goods by the carrier (Saludo v. CA, G.R. No. 95536) 2. It is a contract between the parties; and The acceptance of a paper containing the terms of a proposed contract generally constitutes an acceptance of the contract and all of its terms and conditions of which the acceptor has actual or constructive notice. (Keng Hua Paper Products, Co., Inc. v. CA, 349 Phil. 925) 3. It is a symbolic representation of the goods, i.e., it is a document of titleIn the charter of the entire vessel, the bill of lading issued by the master to the charterer is in fact a receipt and document of title, not a contract.

Question 235

Delivery without surrender of bill of | lading

Answer 235

The surrender of the bill of the original bill of lading is not a condition precedent for a common carrier to be discharged of its contractual obligation. If the surrender is not possible, acknowledgment of delivery by singing the delivery receipt suffices. (Republic of the Philippines v. Lorenzo Shipping Corporation, 491 Phil. 151)

Question 236

Refusal of consignee to take delivery

Answer 236

Instances When Consignee Can Refuse to Accept the Goods a. Only a PART of the goods are delivered and it cannot make use of the goods without the others (Code of Commerce, Art. 363) b. If the goods are DAMAGED and thus rendered useless for the purposes of sale or consumption. In this instance, the consignee may leave the goods to the carrier and demand payment for the goods at its current market price (Code of Commerce, Art. 365) c. When there is DELAY on account of the fault of the carrier. This is considered to be an abandonment. In this case, the carrier shall satisfy the total value of the goods as if the goods were lost or misplaced. (Code of Commerce, Art. 371)

Question 237

Change in the Consignment of Goods

Answer 237

The shipper may change the consignment of the goods delivered to the common carrier as long as the place of delivery is not changed. The change is considered a novation. The carrier shall comply with this change, provided that the bill of lading be returned to the carrier at the time of the making the change of the consignee. (Code of Commerce, Art. 360) All expenses arising from the change of consignment shall be shouldered by the shipper. (Code of Commerce, Art. 360

Question 238

Not everyone is required to inspect a ship's seaworthy. T or F.

Answer 238

True. nasa shipowner yung liability because it is an implied warranty (1755)

Question 239

What if mas efficient to transfer the said goods to another vessel? Tapos same owner din naman and seaworthy din yung other vessel. Invalid transshipment padin ba yun?

Answer 239

Yes, may breach of contract padin kasi wala naman alam si shipper about the said other vessel.

Question 240

Bumili si X bago tire just yesterday tapos today naaksidente sila because of tire blow-out. May negligence padin ba on the part of X?

Answer 240

Yes, kasi dapat may sufficient inspection sya upon purchase.

Question 241

Article 1756. In case of death of or injuries to passengers, common carriers are presumed to have been at fault or to have acted negligently, unless they prove that they observed extraordinary diligence as prescribed in articles 1733 and 1755. Article 2185. Unless there is proof to the contrary, it is presumed that a person driving a motor vehicle has been negligent if at the time of the mishap, he was violating any traffic regulation. Compound these 2 provisions - Kailangan pa ba tong Art. 2185?

Answer 241

- 2185: quasi-delict; 1756: culpa-contractual

Question 242

Can a common carrier say that it's been extra careful with selecting its employees so he shall be free from liability? And na dapat fault na sya ni employee?

Answer 242

under 1756, no. EOD

Question 243

Carriage by trains

Answer 243

Part of EOD is allowing passengers reasonable time to embark and disembark

Question 244

As a train company, are you required to stop every time there is an obstruction?

Answer 244

No. May mutual obligations kasi on both parties since alam naman nila yung risk. - May qualifications ba? >> 1. Children (they are not expected to know what to do tho dapat supervised sila kasi ng parents eh) Quasi-delict if may injured sa operation ng train but the injured is not a passenger or crew.

Question 245

Baggage

Answer 245

a. baggage which is not in his personal custody or check-in baggage >> governed by laws on carriage of goods b. hand-carried baggage >> rules on necessary deposits Hotels and inn-keepers >> common carriers

Question 246

If the passenger failed to give notice, bakit si common carrier padin liable?

Answer 246

Article 2003. The hotel-keeper cannot free himself from responsibility by posting notices to the effect that he is not liable for the articles brought by the guest. Any stipulation between the hotel-keeper and the guest whereby the responsibility of the former as set forth in articles 1998 to 2001 is suppressed or diminished shall be void. What if the situation is dependent on such notice? No conflict if the passenger does not give notice because ??? > Basta pag di nagbigay notice yung passenger, the common carrier will still be respondible for the damage. Sulpicio Lines v. Cesante??? Art. 1754. Additional duties lang kasi sya.

Question 247

*Kung di nalate si X, wala sana sila aksidente*

Answer 247

wala naman yun sa prompt attendance ng passenger. Hindi din kasalanan ni passenger na sila ang nagbibigay directions kay driver. Nasa performance padin ni driver yun duh. So liable padin si common carrier.

Question 248

Public enemy

Answer 248

It is a nation with whom the Philippines is at war, and it includes every citizen or subject of such nation. >> actual declaration of war >> both domestic/civil and international a group of people who declare their independence from their nation and act hostile >> acts of belligerence piracy in high seas >> considered public enemy of everyone

Question 249

Co-passenger or stranger

Answer 249

not liable si CC Is that absolute? No liable si CC if the act or omission should be prevented with ordinary diligence of his employees

Question 250

Piolo Pascual sumakay ng bus. Maya maya biglang may baril.

Answer 250

- not liable si CC kasi hindi naman customary magkapkap ng passenger - nagstop ba yung bus when naglabas na ng gun si piolo? or holdap?

Question 251

Bus along EDSA suddenly a stranger threw a stone.

Answer 251

- known ba sa driver and conductor na rampant yung ganung event dun sa route na yun?

Question 252

A may sasakyan. B and C workmates and living nearby. Carpooling tayo bente pesos lang.

Answer 252

Private carrier kasi based on the facts special undertaking lang sya kay B and C. Hindi nya naman inopen to other people who fit the qualifications. As in B and C lang naman.

Question 253

Is there an instance when a common carrier becomes a private carrier?

Answer 253

- Yes. dapat bareboat or demise charter - Special contract of charter >> does it automatically convert? - pag yung sa freightment kasi hindi sya private

Question 254

Si A may aircraft. Si B gusto mag-avail ng services. 1M daw. Eh sabi ni B, pa-rent na lang ng plane, si B na mag-operate.

Answer 254

naconvert yung common carrier to private carrier so wala nang liability si A.