transportation reviewer

COMMERCIAL LAW REVIEWER/ LAW ON TRANSPORTATION

TRANSPORTATION REVIEWER

1. Two instances when transportation is a commercial transaction.

When the object is merchandiseWhatever object but the carrier is a merchant or habitually engaged in commerce.

2. What laws govern transportation?

Overland transpo Common Carrier Private Carrier

The object is merchandiseNon-merchandise object

Transpo by sea Coastwise Philippine Ports to Foreign

ports….law of country of destination

Foreign Ports to Phil. PortsCivil CodeCode of Commerce, suppletory


COGSAAir transportation International Flight where

Philippines is merely an itinerary….Treaties and International agreement

3. Limiting the liability of the carrier, through airway bills, pursuant to the Warsaw convention is valid, unless the passenger declares higher valuation of the cargo or it can be proven by satisfactory evidence other than self –serving declaration of one party.

4. Who is a COMMON CARRIER?

Any person, corporation, firm, association engaged in the business of:

-Of carrying passengers;-Transporting goods


-Or both of the foregoing-By land, sea or water-For compensation -Offering their services to the public

5. Differentiate common carrier from common carrier.-As to obligation to carry;-as to diligence required….extraordinary vs. ordinary

6. What is the test in determining whether one is a common carrier? -for compensation….common carrier-by chartering….private carrier-the public at large is not involved….private carrier-is the public utility vehicle used exclusively for the benefit of the


employees of the one who hired? If yes, then it is private carrier

7. If one is a private carrier, the parties are free to stipulate the contract even to the point of exempting the carrier from any liability that may arose in the course of the transportation.

8. A common carrier whom it chartered its vessel becomes a private carrier. A contract that it maybe entered into exempting it from liability arising from negligence is valid. It is so because when the common carrier became a private one, the contract it entered no longer involved public interest.


9. The common carrier cannot limit its liability by stipulating in the bill of lading that it will observe only the diligence of a good father of the family. This is contrary to law and public policy, because the civil code provides that the diligence required to a common carrier is extraordinary one. It is an utmost diligence of a very cautious man with due regard for all circumstances.

--if the common carrier causes damaged to its goods and passengers, it is presumed to be negligence.

10. Discuss the status of a driver in a boundary system.


From the viewpoint of CIVIL CODE—he is a lessee because he pays the rental for the use of the vehicle.From the viewpoint of LABOR LAW—he is an employee due the existence of employer-employee relationshipFrom the viewpoint On the LAW ON COMMON CARRIER—he is an employee of the operator for the purpose of attaching the latter’s liability to the passenger.

11. Is a CC liable for Fortuitous Event?The general rule is NO, except under the following:a. When FE is not the proximate

cause of the loss;


b. When the CC did not exercise diligence prevent or minimize the LOSS.

c. When it incurs delay in pursuing its voyage.

12. Give the requisite in order that hijacking maybe considered as FE.-to consider hijacking a fortuitous event, the hijackers must have acted with GRAVE, OR IRRESISTIBLE THREAT, VIOLENCE or FORCE.

13. (HOW TO ANSWER THE EXAM? IT SHOULD BE LIKE THIS TO BE SAFE) ….THE carrier is not liable for fortuitous event, unless proof is presented that the hijackers acted with irresistible force, threat or violence.


14. In order that the bus operator will be liable for the baggage of its passengers, the latter must have declared it before the employees of the carrier and pay the corresponding charges thereof.

15. The common carrier is bound to transport its passengers promptly and safely. It can avoid liability only if the proximate cause was Fortuitous event. LEVY by the sheriff is a foreseeable event, hence not a fortuitous event.

16. When the passenger already steps into the platform of the bus, he is already considered a passenger, because when the bus stops, in effect, it is making a continuous offer for the bus rider.


17. (How to answer in case if the situation given is vague? It should be this way) The common carrier is presumed to be liable if it failed to carry its passengers promptly and safely to its destination. The common carrier would be relieved from its liability only if the proximate cause is fortuitous event. Also if it can prove that it exercises extraordinary diligence in the carriage of its passengers. The burden of proof is the carrier to show that it exercises extraordinary diligence. Since the facts failed to show that …. The presumption is rebutted….

18. Common carriers are not under obligation to inspection its passengers thoroughly not like airline companies. Passengers


have the right to privacy that can be invoked if subjected to a thorough inspection. Hence, if injury was caused to passengers due to acts of other passengers or concealed explosives of the passengers, same is considered as fortuitous event.

19. A passenger who boarded a public utility vehicle clandestinely without paying the ticket is not a passenger; hence, the common carrier is not liable to him in case he suffered injury thereby.

20. The relationship of the common carrier with his passenger is terminated the moment the passenger, after reaching destination safely alighted and had the reasonable opportunity to


leave the common carrier’s premises, which includes the time to look for his baggage and claim them.

21. The extraordinary diligence required of carriers extends to acts of the carrier’s employees performed while discharging their duties. The carrier bears the risk of wrongful acts of his employees because it is incumbent upon him to selects and removes employee.

22. Stipulation in the ticket limiting the liability of the operator of the bus is void.

23. If the passenger is injured due to stone hurling in a road, the common carrier is not liable since it is a fortuitous event;


24. But if the throwing of stone is already frequent in such a particular area, the employees of the common carrier should take necessary precaution by warning their passengers and let them prepared. Failure of the common carrier to do this is failure to observe extraordinary diligence. This is no longer a fortuitous event, since there has been a history already of throwing stones in such area.

25. One is a common carrier the moment he offers his services to the public even if he is not a holder of a certificate of public convenience.


26. Common carrier is not liable for moral damages except if it acted in bad faith or when the passenger dies.

27. What is a Bill of Lading? Give the two-fold aspect of the same.

A written acknowledgment of the receipt of goods and an agreement to transport them to a designated place.The TWO-FOLD CHARACTER …. A. it is a receipt which the same indicates the quantity and condition of the goods received for transport. B. it is a contract on the other hand.

28. Stipulation in the bill of lading limiting the liability of the common carrier is void unless it


adds a provision thereof giving option to the shipper to declare the higher or true valuation of the goods.

MARITIME COMMERCE

29. May a vessel be acquired by occupation?Yes, provided that the vessel is already abandoned.

30. Who is a shipowner?Is the person who is in possession, control and management of the vessel.

31. Who is a shipagent?\The one in-charged with the provisioning and representing the vessel in the port which it maybe found.


32. The liability of the ship agent and ship owner is joint and several (Solidary).

33. What is the Limited liability rule/Hypothecary Rule?

It means the liability of the ship owner and ship agent is limited to their interest in the value of the vessel. Such when there is total loss, they cannot be held liable thereof except under the following instances:a. When there is Injury or death

to the passengers;b. The vessel is insured;c. When there is claim under the

Workmen’s Compensation Law;d. Repair on the vessel before its

sinking.


e. In case of collision and the vessel is at fault.

34. The ship owner and ship agent are negligent if the ship is:

Overloaded;Not enough life vest for their passengers

35. There will no liability to ship agent for the loss of cargo in case if there is total loss to the ship.

36. Where should the ship captain obtain funds?CCDLS

From the consignee of the vessel;From the consignee of the cargo;By drawing on the ship agent;By loan on bottomryBy sale of the part of the cargo


37. What are the four just causes for the revocation of maritime commerce?a. Declaration of war;b. Blockade;c. Embargo;d. Prohibition to receive cargo at

the port of destination.

38. Who is a supercargo?One who discharges administrative functions, assigned by the ship agent or shipper keeping an account and record of transactions as required in the accounting book of the captain.

39. What is a charter party?It is a contract whereby the owner of the ship let other person use his vessel or principal


part thereof for a specified time or use.

40. What are the classes of charter party?

Bareboat or demise , the charterer provides the crew, foods and fuels (CFF), He liable for the consequences of the voyage;Time charter , the vessel is chartered for a period of time or duration of the voyage.Voyage or trip charter, the conditions of the charter are the same as time charter.Contract of affreightment- the owner leases the boat or part of it for the carriage of goods.

41. In bareboat charter of a merchant vessel, the charterer is


liable for the consequences of the voyage as if he were the owner, except where the accident was due to the unseaworthiness of the vessel. The liability arose out in the course of voyage while the vessel was chartered, shall be the liability of the charterer.

42. An action for misdelivery of cargo under the Civil Code, and not under the Carriage of Goods By Sea Act (COGSA), prescribes in 10 years. The one year prescriptive period under the latter law is applicable to loss or damage of cargo but not to its misdelivery.

43. The provision in the Bill of lading, limiting the liability of the ship owner or ship agent to a certain amount is void if the same


prevent the shipper from declaring a higher value.

44. If the common carrier assumed to transport the goods even if it is visibly defective as to its packaging assumed to have received the good in good condition.

45. To whom the goods are deiliverable?

To the consignee named in the bill of ladingOr to the person to whom he endorsees the bill of lading, if negotiable.

46. What is a loan on bottomry? A loan made by the ship agent or ship owner guaranteed by the vessel itself, and repayable on


arrival of the vessel at destination.

47. What is a loan on respondentia?A loan taken, secured by the cargo laden in the vessel, repayable upon the safe arrival of the cargo at the destination.

48. What is an average?

49. What are the requisites of general average?CDSP

Common danger;’Deliberate sacrifice;Success;Proper formalities and legal steps


50. PUBLIC SERVICE ACT- Can right to operate public utility be subject of agreement?No. the operate public utility is a privilege granted by the State, and the conditions imposed by the state cannot be disregarded by the operators.

51. What is a PRIOR OPERATOR RULE?Before permitting new operator to invade and operate the route of another, the prior operator, operating such route should first be given the opportunity to extend its service to meet the demand of the public in matters of public transportation.

-This rule can only be invoke if the prior operator has rendered


efficient and satisfactorily service in his territory.

52. In case of a newly open road, the PRIOR OPERATOR RULE cannot be invoked because his certificate of public convenience does not cover the new route. The new applicant can be granted certificate assuming that he has all the qualifications for the grant of such certificate.

53. What is PRIOR APPLICANT RULE?In case where there are two applicants for a particular route where no operator is yet granted a certificate of public convenience, if the two applicants, after taking into consideration their applications with which both are more or less


equal, the certificate shall be granted to one who applied ahead of the other.

54. There is no way that Prior applicant rule and Prior operator would collide each other in terms of application, but if it cannot be avoided, the PRIOR OPERATOR RULE shall prevail over PRIOR APPLICANT RULE.

55. In case if the vehicle has already been sold but the prior owner remains the registered owner thereof, in the eyes of the law, he is still the owner of such vehicle. In case of injury or death done by the driver of the new vehicle, the prior owner can still be held liable thereof.


56. A single holdup or robbery incident cannot justify the revocation of Certificate of Public Convenience. It must BE several incidents of hold up to justify that his operation is no longer safe, adequate and proper. (SAP)

BULK SALES LAW

57. When there is a sale of all or substantially all the business or the fixtures and equipment not in the ordinary course of the one’s business is a bulk sale.

58. The sale of 95% of one’s business is a bulk sale because the same constitute “substantially all”


59. In Bulk Sales law, the seller must execute an affidavit, stating thereof the names of creditor, their addresses, their respective credits and their respective maturities. Such affidavit shall be given to the buyer, whom the latter will in turn notify the creditors of such sale.

LETTERS OF CREDIT

60. What is a letter of credit? It is a letter made by one

merchant; It is address to another

merchant; For the purpose of attending

commercial transaction61. Df62. D63. Fd64. Df65. Fd


66. Df67. Fd68. Df69. Df70. df

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