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I.

Grace and Chiz are owners of a minibus used principally as a school bus service where parents of
school children contract with the owners for the latter to transport their children from their respective
residences to their respective schools for a fee. Last October 1, 2015, the CCAAI, Inc. a non stock,
non profit organization arranged with Grace and Chiz for the transportation of 40 of its members from
Baguio to Manila and back for a consideration of P40,000.00. While the mini-bus was traversing an
incline at Kennon Road, Baguio City, the bus suddenly stopped and started to reverse down the
incline. The driver tried his brakes several times however, the bus continued moving back down the
road. A passenger seated near the busdoor panicked, opened the door and jumped out of the bus.
The driver was able to stabilize the bus and brought it down to a flat and safe area of the Kennon
Road and proceeded to check the vehicle. On the other hand, the conductor went up the road to look
into the passenger who jump off the bus and with the help of a co-passenger, carried him to the bus
as he cannot walk on his own. The conductor, who was once a paramedic, applied a splint to the
injured arm of the passenger and provided him with painkillers to help alleviate his body pains. The
driver then announced that after checking the bus, he sees no damage. Even the brakes are now
working. He asked the passengers if they would like to wait for a replacement bus or to continue in
the same bus to go up Kennon Road. The passengers chose the latter option. Fortunately, nothing
untoward happened on the way up to Baguio City. The driver dropped off the passenger at the
Baguio

General

Hospital

where

he

was

treated

for

his

injuries.

A month later, Grace and Chiz received a summons from the Regional Trial Court of Baguio City,
requiring them to file their answer in a case for damages alleging that Grace and Chiz failed in
exercising extraordinary diligence as required of common carriers in the transport of their passenger.
(A) In operating a school bus service, are Grace and Chiz operating a common carrier? (5%)
(B) How do you categorize the contract of carriage entered into by Grace and Chiz with CCAAI, Inc.?
Why?

(5%)

Rule on the allegation of the injured passenger that Grace and Chiz failed to exercise the

extraordinary

diligence

required

of

common

carrier.

Explain

your

answer.

(5%)

(D) Assuming that there is no question that Grace and Chiz are common carriers, are they liable for
damages
(E)

Who

to
are

the

the
parties

to

injured
a

contract

passenger?
of

carriage/transportation?

Explain.(5%)
Explain

(5%)

II. Maria Sta. Maria chartered a vessel owned and operated by Martian Star Shipping Company, a
common carrier, for the purpose of transporting two tractors from Manila to Cebu. The crane
operator of Martian Star Shipping placed the two tractors in an area of the ship where, when hit by
turbulent weather conditions, the tractors would tilt and bumped against each other. During the trip,

strong winds hit the vessel, causing severe damage to the tractors. Maria Sta. Maria sued the
shipping company for damages.
(A)

What is a Demise or Bareboat Charter, Contract of Affreightment, Time Charter and Voyage

Charter.?
(B)

Are

Would

you

they
hold

different
the

shipping

from

one

company

another.
liable?

Explain

Why?

(5pts)

What is averages in maritime transactions? Distinguish the kinds of averages.

III. During the 2013, Alpha B, a congressional candidate of Benguet, chartered a helicopter owned by
JK Mining Corporation for use in the election campaign. Alpha B paid JK Mining the same rate
normally charged by companies regularly engaged in the plane chartering business. In the charter
agreement between JK Mining and Alpha B, JK Mining expressly disclaimed any responsibility for
the acts or omissions of its pilot or for the defective condition of the planes engine. The helicopter
crashed at Mt.Ugo killing Alpha B. Investigations disclosed that pilot error was the cause of the
accident. As retained counsel of JK Mining, the latter consults you on its possible liability for Alpha
Bs death in the light of the above findings. How would you reply to JK Minings query? (5 pts)

IV. X owns a passenger jeepney being driven Y. The arrangement between X and Y was that Y
would pay X P500.00 a day for the privilege of driving the passenger jeepney and that whatever
earnings is left after paying X would be Ys alone. On October 2, 2015, while driving the passenger
jeepney of X, Y run over the son of A killing him instantly. Y was convicted of Reckless Imprudence
resulting to Homicide and was ordered to indemnify A in the amount of 50,000.00 with subsidiary
imprisonment in case of insolvency, and to pay the cost. Y served his sentence but he was not able
to pay the indemnity because he was insolvent. X was then adjudged to be subsidiarily liable as
employer in accordance with Article 103 of the Revised Penal Code. X said that he cannot be liable
because no employee-employer relationship existed between X and Y. If you were the judge in this
case

how

would

you

decide?

Explain

fully.

(5

pts)

V. Lorna B. is the proprietor of LB Co., engaged in the business of hauling and transporting lumber
and other merchandise. Lorna had 15 cargo trucks, all registered in her name, 5 of which she sold to
Domingo Sabado, the proprietor of Doming Mabalin-amin Haulers, Inc. Since Domingo Sabado
purchased the cargo trucks on installment, Lorna B. refused to have the said trucks registered in the
name of Domingo Sabado until the latter has fully paid for all the 5 trucks. Sometime in May, 2015,
Starlight, Inc. contracted with Doming Mabalin-amin thru Domingo Sabado for the delivery of 10,000
board feet of sawn lumber from Isabela to Manila. The lumber were carried in a truck driven by

Viglan Liko which figured in an accident where the truck turned turtle with the lumber having been
scattered along the highway. The lumber were never recovered as it were probably picked up by
passers-by. Starlight. Inc. filed a civil case to recover the value of the lumber plus damages against
Lorna B. who denied having any liability alleging that she was a complete stranger to the contract
between Domingo Sabado and Starlight, Inc. as she had already sold the truck involved in the
accident to Domingo Sabado. Is the contention of Lorna B. correct? From whom should Starlight
recover

its

loss?

Explain

fully

(5

pts)

VI. Juan, a paying passenger, noted a stipulation at the back of the bus ticket stating that the liability
of the bus company is limited to P1,000.00 in case of injuries to its passengers and P500.00 in case
of loss or damage to baggage caused by the negligence or willfull acts of its employees. Upon arrival
at his destination, Juan got into an altercation with the ticket conductor, who pulled a knife and
inflicted several wounds on Juan. The bus driver intervened, heaping abusive language on Juan and
completely destroying Juans baggage which contained expensive goods worth P30,000.00. The
hospital expenses of Juan amounted to P50,000.00. Give the extent of the liability of the bus
company

VII.

with

Explain

the

reasons.

Principle

of

the

Last

(5

Clear

Chance

pts)

Doctrine

(5pts)

VIII. Maria rode the Prince Valiant Transporters bus in Baguio City. Her ticket states that she is
bound for Vigan, Ilocos Norte. The bus stopped at Tagudin where the passengers and the driver and
conductor disembarked to eat lunch. Maria, who brought her baon of sandwich and water stayed on
the bus, the door of which was not locked. A vendor came in and offered Maria juice which she
refused. Undeterred, the vendor repeatedly offered her other stocks of pasalubong. When Maria
rudely declined, the vendor attacked her resulting to injuries on her face and arms that required
medication.

Does

Maria

have

cause

to

sue

Prince

Valiant

Transporters?

(5%)

IX. Sela delivered 10 packages of goods to Prince Valiant Transporters, for transport from Baguio
City to Pagudpud, Ilocos Sur on the following day. Sela paid the freightage. Meanwhile, the
packages were stored in the Transporters warehouse. That night, however, a robber broke into the
bodega and stole Selas packages. Sela sues Prince Valiant Transporters for contractual breach.
(a)

What is the contract between Prince Valiant Transporters and Sela if there be any? Explain.

(5%)
(b)

Who

is

liable

for

the

loss

of

the

10

packages?

Why?

(5%)

X.

Berto, while drunk, accepted Ana as a passenger in his taxicab. Berto then drove the taxi

recklessly, and inevitably, it crashed into an electric post, resulting in serious physical injuries to Ana.
The latter then filed a suit for tort against Berto's operator, Charlie. Charlie raised the defense of
having exercised extraordinary diligence in the safety of the passenger. Is his defense tenable?
Why?

XI.

(5%)

Explain the duration of the exercise of the required extraordinary diligence by the common

carrier.

(5%)

XII. Explain the Theory of Prima Facie Liability of a Common Carrier in Transportation laws. (5%)
XIII. Maria was a passenger in a cruise ship and was seriously injured by the ship steward who had
acted beyond the scope of his duties and in violation of orders. Maria consulted you for advice on
what

case

to

file.

What

will

you

advise

her

and

against

whom?

(5%)

XIV. G. Martini Ltd. shipped chemical products from Manila to Japan thru Macondray and Co. Upon
learning from the bills of lading that the shipment would be carried on deck at shippers risk, G.
Martini wrote a letter of protest. Macondray answered that if G. Martini is dis-satisfied, the cargo
could be discharged. G. Martini did not order the discharge. Upon arrival in Japan, the goods were
found to have been damaged by fresh and salt water. Is the carrier liable on the damage sustained
by

XV.

the

Explain

cargo?

the

hypothecary

Explain

nature

your

of

maritime

XVI. Distinguish Loan on Bottomry from a Loan on Respondentia. (5%)

answer.

(5%)

transactions.

(5%)