Transportation Law - Commercial Law Review Exam

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Izabel Serina
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1. P, a sales girl in a flower shop at the Ayala Station of the Metro Rail Transit (MRT) bought two tokens or tickets, one for her ride to work and another for her ride home. She got to her flower shop where she usually worked from 8 a.m. to 5 p.m. At about 3 p.m., while P was attending to her duties at the flower shop, two crews of the MRT got into a fight near the flower shop, causing injuries to P in the process. Can P sue the MRT for contractual breach as she was within the MRT premises where she would shortly take her ride home?

Explanation

P cannot sue the MRT for contractual breach because she had no intention to board an MRT train coach when the incident occurred. The fact that she had a ticket for her ride home and was within the MRT premises is irrelevant in this case. The incident took place at the MRT station, not inside the train coach, so it does not fall under the MRT's duty of care towards passengers. Therefore, P does not have grounds to sue the MRT for contractual breach.

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About This Quiz
Transportation Law - Commercial Law Review Exam - Quiz

This Transportation Law quiz assesses understanding of commercial law issues in transportation settings. It covers liability clauses, carrier responsibilities, and contractual stipulations in shipping scenarios, focusing on real-world legal applications and problem-solving in commercial law.

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?  

Explanation

The doctrine of limited liability allows a shipowner to limit their liability to the value of the ship and its freight after a maritime accident. However, in order for the doctrine to apply, the shipowner must have either incurred a total loss or abandoned the ship. In this case, X Shipping did not incur a total loss nor did they abandon the ship. Therefore, they cannot invoke the doctrine of limited liability and are not correct in their defense against the cargo owners' suit.

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3. C Company shipped 20,000 bags of soy beans through S/S Melon, owned and operated by X Shipping Lines, consigned to the Toyo Factory and insured by the Surety Insurance Co., against all risks. C Company hired the entire vessel, with the option to go north or south, loading, stowing and discharging at its risk and expense. The owner and shipper agreed on a stipulation exempting the owner from liability for the negligence of its agents.   When the cargo was delivered to the consignee, there were shortages amounting to P100,000.00. The insurance company paid for the damage and sought reimbursement from X Shipping Lines as carrier. Is the carrier liable?   The carrier is:

Explanation

The correct answer is "Not liable, because it is not a common carrier and the parties to a contract, as such, may enter into a stipulation exempting the owner from liability for the negligence of its agents." The explanation for this is that the carrier in this case, X Shipping Lines, is not considered a common carrier. As a result, they are not subject to the same level of liability as common carriers. Additionally, the owner and shipper agreed on a stipulation that exempted the owner from liability for the negligence of its agents. This stipulation is valid and enforceable under the contract between the parties. Therefore, the carrier is not liable for the shortages in the delivered cargo.

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P, a sales girl in a flower shop at the Ayala Station of the Metro...
A cargo ship of X Shipping, Co. ran aground off the coast of Cebu...
C Company shipped 20,000 bags of soy beans through S/S Melon, owned...
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