Bar Examination Questionnaire for Commercial Law

Set A
(1) P rode a Sentinel Liner bus going to Baguio from Manila. At a stop-over in Tarlac, the bus driver,
the conductor, and the passengers disembarked for lunch. P decided, however, to remain in the bus,
the door of which was not locked. At this point, V, a vendor, sneaked into the bus and offered P
some refreshments. When P rudely declined, V attacked him, resulting in P suffering from bruises
and contusions. Does he have cause to sue Sentinel Liner?
(A) Yes, since the carrier's crew did nothing to protect a passenger who remained in the bus
during the stop-over.
(B) No, since the carrier's crew could not have foreseen the attack.
(C) Yes, since the bus is liable for anything that goes wrong in the course of a trip.
(D) No, since the attack on P took place when the bus was at a stop-over.
(2) A cargo ship of X Shipping, Co. ran aground off the coast of Cebu during a storm and lost all its
cargo amounting to Php50 Million. The ship itself suffered damages estimated at Php80 Million. The
cargo owners filed a suit against X Shipping but it invoked the doctrine of limited liability since its
vessel suffered an Php80 Million damage, more than the collective value of all lost cargo. Is X
Shipping correct?
(A) Yes, since under that doctrine, the value of the lost cargo and the damage to the ship can
be set-off.
(B) No, since each cargo owner has a separate and individual claim for damages.
(C) Yes, since the extent of the ships damage was greater than that of the value of the lost
cargo.
(D) No, since X Shipping neither incurred a total loss nor abandoned its ship.
(6) S delivered 10 boxes of cellphones to Trek Bus Liner, for transport from Manila to Ilocos Sur on
the following day, for which S paid the freightage. Meanwhile, the boxes were stored in the bus
liners bodega. That night, however, a robber broke into the bodega and stole Ss boxes. S sues
Trek Bus Liner for contractual breach but the latter argues that S has no cause of action based on
such breach since the loss occurred while the goods awaited transport. Who is correct?
(A) The bus liner since the goods were not lost while being transported.
(B) S since the goods were unconditionally placed with T for transportation.
(C) S since the freightage for the goods had been paid.
(D) The bus liner since the loss was due to a fortuitous event.
(27) T, the captain of MV Don Alan, while asleep in his cabin, dreamt of an Intensity 8 earthquake
along the path of his ship. On waking up, he immediately ordered the ship to return to port. True
enough, the earthquake and tsunami struck three days later and his ship was saved. Was the
deviation proper?
(A) Yes, because the deviation was made in good faith and on a reasonable ground for
believing that it was necessary to avoid a peril.
(B) No, because no reasonable ground for avoiding a peril existed at the time of the
deviation.
(C) No, because T relied merely on his supposed gift of prophecy.
(D) Yes, because the deviation took place based on a reasonable belief of the captain.
XVII.
On December 1, 2010, Kore A Corporation shipped from South Korea to LT Corporation in Manila some
300,000 sheets of high-grade special steel. The shipment was insured against all risks by NA Insurance
(NA). The carrying vessel arrived at the Port of Manila on January 10, 2011. When the shipment was
discharged, it was noted that 25,000 sheets were damaged and in bad order. The entire shipment was
turned over to the custody of ATI, the arrastre operator, on January 21, 2011 for storage and
safekeeping, pending its withdrawal by the consignees authorized customs broker, RVM.
On January 26 and 29, 2011, the subject shipment was withdrawn by RVM from the custody of ATI. On
January 29, 2011, prior to the withdrawal of the last batch of the shipment, a joint inspection of the cargo
was conducted per the Request for Bad Order Survey (RBO) dated January 28, 2011. The examination
report showed that 30,000 sheets of steel were damaged and in bad order.
NA Insurance paid LT Corporation the amount of P30,000,000.00 for the 30,000 sheets that were
damaged, as shown in the Subrogation Receipt dated January 13, 2013. Thereafter, NA Insurance
demanded reparation against ATI for the goods damaged in its custody, in the amount of P5,000,00.00.
ATI refused to pay claiming that the claim was already barred by the statute of limitations. ATI alleged
that the Carriage of Goods by Sea Act (COGSA) applies in this case since the goods were shipped from
a foreign port to the Philippines. NA Insurance claims that the COGSA does not apply, since ATI is not a
shipper or carrier. Who is correct? (5%)c


Global Transport Services, Inc. (GTSI) operates a fleet of cargo vessels plying interisland routes.
One of its vessels, MV Dona Juana, left the port of Manila for Cebu laden with, among other goods,
10,000 television sets consigned to Romualdo, a TV retailer in Cebu.
When the vessel was about ten nautical miles away from Manila, the ship captain heard on the radio
that a typhoon which, as announced by PAG-ASA, was on its way out of the country, had suddenly
veered back into Philippine territory. The captain realized that MV Dona Juana would traverse the
storms path, but decided to proceed with the voyage. True enough, the vessel sailed into the
storm. The captain ordered the jettison of the 10,000 television sets, along with some other cargo, in
order to lighten the vessel and make it easier to steer the vessel out of the path of the typhoon.
Eventually, the vessel, with its crew intact, arrived safely in Cebu.
[a] Will you characterize the jettison of Romualdos TV sets as an average? If so, what kind of an
average, and why? If not, why not? (3%)
[b] Against whom does Romualdo have a cause of action for indemnity of his lost TV sets? Explain.
(3%)
VIII
XIX
One of the passenger buses owned by Continental Transit Corporation (CTC), plying its usual route,
figured in a collision with another bus owned by Universal Transport, Inc. (UTI). Among those injured
inside the CTC bus were: Romeo, a stow away; Samuel, a pickpocket then in the act of robbing his
seatmate when the collision occurred; Teresita, the bus drivers mistress who usually accompanied
the driver on his trips for free; and Uriel, holder of a free riding pass he won in a raffle held by CTC.
a. Will a suit for breach of contract of carriage filed by Romeo, Samuel, Teresita, and Uriel
against CTC prosper? Explain. (3%)
b. Do Romeo, Samuel, Teresita, and Uriel have a cause of action for damages against UTI?
Explain. (3%)
c. What, if any, are the valid defenses that CTC and UTI can raise in the respective actions
against them? Explain. (3%)