TRANSPORTATION LAW

Multiple Choice Questions

Vigilance Over Goods

1. What degree of diligence is required of common carriers in the
vigilance over the goods and for the safety of the passengers transported
by them based on the nature of their business and for reasons public
policy?
a) Common carriers are bound to observe ordinary diligence
specifically the diligence of a good father of the family.
b) Common carriers are not bound to observe extraordinary diligence
according to all the circumstances of each case.
c) Common carriers are not bound to observe any degree of
diligence based on existing jurisprudence and generally accepted
principles of international law.
d) Common carriers are not bound to observe any degree of
diligence as provided by the New Civil Code.

2. Which of the following exempts a common carrier from responsibility
for the loss, destruction, or deterioration of the goods?
a) Act or omission of the ship owner or ship agent.
b) Flood, earthquake, lightning, or other natural disaster or calamity.
c) Order or act of the ship captain to its crew.
d) Shipper observed proper packing of the goods.

3. Common carriers are presumed to be at fault or to have acted
negligently if the goods are lost, destroyed or deteriorated, unless:
a) Common carriers could prove that it had exercised ordinary
diligence required by law.
b) Common carriers could prove that it had observed extraordinary
diligence in the vigilance over the goods.
c) Common carriers could show proof that it acted in good faith in
the safe transportation of the goods.
d) Common carriers could prove that it had clear records as reliable
and safe carriers in the maritime business.

4. What is the period of time within which the common carrier should
observe extraordinary diligence in transporting the goods?
a) Common carriers should observe extraordinary diligence from the
time they received the goods until the actual or constructive delivery of the
goods to the consignee, or the person who has a right to receive them.
b) Common carriers should observe extraordinary diligence in the
port of departure until its arrival at the port of destination.
c) Common carriers should observe extraordinary diligence from
the time the goods are packed in the shippers residence until the actual
or constructive delivery if the goods to the consignee.
d) Common carriers observe extraordinary diligence over the goods
from the time the order of the ship captain is issued to its crew.

5. Are the goods transported by the common carrier should be actually
or constructively delivered to the consignee only who is entitled to receive
the said goods?
a) Yes, the goods should only be actually or constructively delivered
to the consignee unless another person is entitled to receive the said goods.
b) No, the goods could be delivered to a warehouse at the discretion
of the common carrier when circumstances so warrant.
c) Yes, the goods should only be actually or constructively delivered
to the consignee in all cases
d) No, the goods could be delivered to any personnel of the port as
evidenced by a receipt of the goods.

6. The unpaid seller when he has parted with the goods and the buyer
becomes insolvent stops the goods in transit is known as the exercise of:
a) The right of stoppage in transitu
b) The right of possession
c) The right of ownership
d) The constitutional right to property

7. What is the effect of the exercise of the right of stoppage in transitu?
a) It is no longer incumbent upon the common carrier to observe
extraordinary diligence but diligence of a good og a family in holding the
goods.
b) Common carrier is still obliged to observe extraordinary diligence
in the vigilance over the goods even when they are temporarily unloaded
or stored in transit.
c) The common carriers responsibility in the vigilance over the
goods is extinguished as a result of the exercise of the right of stoppage
in transitu.
d) The exercise of the right of stoppage in transitu extinguishes all
liabilities of the common carrier in case of loss, damage, or deterioration
of the goods.

8. Which of the following instances requires the continuance of the
common carriers duty to observe extraordinary diligence in the vigilance
over the goods?
a) The goods are temporarily unloaded or stored in transit.
b) The goods are actually and constructively delivered to the
consignee or to the person entitled to receive.
c) The goods are packed on the residence of the shipper or owner.
d) The goods are jettisoned to save the ship from sinking.

9. What is the liability of the common carrier when the goods have been
stored in a warehouse of the carrier at the place of destination?
a) Its extraordinary liability is extinguished from the moment the
goods are safely secured in the warehouse of the carrier.
b) Its ordinary liability operates even when the goods have been
stored in the carriers warehouse until they are removed or disposed of
by the consignee.
c) Its extraordinary liability continues from the time goods are stored
in the warehouse until the consignee has been advised on the arrival of the
goods and has had reasonable opportunity to remove them.
d) Its ordinary liability is suspended while the goods are inside the
common carriers warehouse as they are safely secured by the guards of
the premises.

10. When is a common carrier exempted from responsibility over the
goods arising from the natural disaster?
a) If the natural disaster is one of the causes of the loss of the cargo
and action was taken before, during and after the natural disaster to
save the cargo.
b) The natural disaster is not the proximate cause but it caused
slight to moderate damage to the goods transported by the common
carrier.
c) If the natural disaster is the proximate and only cause of the loss
and action was taken before, during and after the natural disaster to
prevent or minimize loss.
d) The natural disaster and contributory negligence of the ship
captain resulted in the loss, damage, and deterioration to the goods.

11. An agreement limiting the common carriers liability for delay is
valid, provided it is as account of?
a) The goods are transported at the risk of the owner or shipper
b) Common carrier need not observe any diligence in the custody of
the goods
c) Strike or riots
d) Common carrier shall exercise a degree of diligence less than
that of a good father of a family

12. A stipulation that the common carriers liability is limited to value of
the goods appearing in the Bill of Lading is binding provided:
a) The shipper or owner did not declare a greater value
b) It is not contrary to public policy
c) It is not against good custom
d) It is allowed by COGSA

13. A contract fixing the sum that may be recovered by the owner or
shipper for the loss, destruction, or deterioration of the goods, is valid, if?
a) It is not against the public policy
b) If there is stipulation
c) It is reasonable and just under the circumstances, and has been
fairly and freely agreed upon
d) It is not contrary to law

14. What law that should govern the liability of the common carrier for
their loss, destruction or deterioration, to which the goods are to be
transported?
a) Civil Code
b) Law of the country
c) COGSA
d) Salvage Law

15. Is common carrier disputably presumed to have been negligent in
case of their loss, destruction or deterioration?
a) Yes, even when there is an agreement limiting the liability of the
common carrier in the vigilance over the goods
b) No, because it is beyond control of the common carrier
c) Yes, because they are common carrier
d) No, because it is on account of force majeure

16. Under the contract of carriage, the common carrier is liable to the
passengers baggage, which is in his personal custody?
a) No, because the common carrier is only liable when the
passengers baggage is not in his personal custody
b) Yes, because common carrier is presumed negligent
c) No, because it is against public policy
d) Yes, because it is their obligation under the law

17. What degree of diligence is required to be observed by a common
carrier for the baggage of a passenger is said passengers custody?
a) Extraordinary diligence
b) Ordinary diligence
c) Diligence of a prudent man
d) No diligence at all

18. When may not the carrier avail itself of the stipulations limiting his
liability assuming it to be valid?
a) When the common carrier is on time in transporting the goods
b) When the common carrier delays the transportation of the goods
c) When the common carrier does not change the stipulated or
usual route
d) When there is stipulation

19. What is the presumption in case of loss of baggage or effects of a
passenger?
a) The carrier is presumed to be at fault
b) The carrier is not presumed to be at fault
c) The carrier is absolve from liability
d) The carrier is not guilty

20. What is the degree of diligence required of a common carrier for the
baggage of a passenger not in the custody of the passenger but placed in
the custody of the common carrier?
a) Ordinary diligence
b) Extraordinary diligence
c) Less ordinary diligence
d) No diligence at all