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Lath Reviewer
Lath Reviewer
Lath Reviewer
Regulated Carrier
• Carrier is liable for damages to products • Backhauls are usually empty or return
carried. materials to the firm’s plants and/or
warehouses.
• Exceptions to liability include acts of God, acts
of the public enemy, acts of the shipper and • Requires a large capital investment.
defects inherent in the goods.
• Requires management time and expertise.
• Backbone of the transportation industry.
LAWS ON COMMON CARRIER What are the 4 Characteristics of Common
Carrier?
What is a common carrier?
1. The common carrier is regarded to some
Operators of public utility vehicles are
extent as a public service since he holds himself
considered as common carriers. A common
out as ready to engage in the transportation of
carrier is defined under the Philippine Civil Code
goods for hire as a public employment and not
as “persons, corporations, firms or associations
as a casual occupation. He is bound to serve all
engaged in the business of carrying or
who apply and is liable for refusal, without
transporting passengers or goods or both, by
sufficient reason to do so.
land, water, or air, for compensation, offering
their services to the public”. 2. The common carrier cannot lawfully decline
to accept a particular class of goods for carriage
What are the Elements of a Common Carrier?
to the prejudice of the traffic in those goods.
1. Business of transportation. However, the common carrier can do so where
for some sufficient reasons, the discrimination
2. For compensation. in such goods is reasonable and necessary
3. For public use – the holding out of the service under all the circumstances of the case.
is made to all persons in general without going 3. No monopoly is favored. The Public Service
through any selection process. Commission has the power to say the
reasonable rules for the convenience of the
traveling public and to enforce them.
DIFFERENCE OF A COMMON CARRIER FROM A
PRIVATE CARRIER 4. It is also for public convenience.
4. The obligation of a common carrier arises Common Carriers are Absolved from Liability
from contract known as “contract of carriage”. when:
5. Common carriers are likewise responsible for 1. Flood, storm, earthquake, lightning, or other
injuries suffered by passenger on account of the natural disaster or calamity;
willful acts or negligence of other passengers or
2. Act of the public enemy in war, whether
strangers, if the common carriers’ employees
international or civil;
could have prevented or stop the act or
omission. 3. Act or omission of the shipper or owner of
the goods;
This duty of common carriers to exercise the
highest degree of diligence commences from 4. The character of the goods or defects in the
the moment the person who purchases the packing or in the containers;
ticket from the carrier presents himself at the
5. Order or act of competent public authority.
proper place and in a proper manner to be
transported. Once created, the relation of What is a Contract of Carriage?
carrier and passenger will not ordinarily A contract of carriage is a contract between a
terminate until the passenger has, after carrier of goods or passengers and the
reaching his destination, safely alighted from consignor, consignee or passenger. Contracts of
the carrier’s conveyance or had a reasonable carriage typically define the rights, duties and
opportunity to leave the carrier’s premises. liabilities of parties to the contract, addressing
topics such as acts of God and including clauses
Period Wherein the Degree of Extraordinary
such as force majeure. Among common carriers,
Diligence Should End:
they are usually evidenced by standard terms
1. The extraordinary responsibility of the and conditions printed on the reverse of a ticket
common carrier lasts from the time the goods or carriage document.
are unconditionally placed in the possession of,
Air waybill (AWB) - is a non-negotiable
and received by the carrier for transportation
document issued by a carrier when goods are
until the same are delivered, actually or
transported by air. An air waybill acts as delivery
constructively, by the carrier to the consignee,
instructions, a contract of carriage, and a cargo
or to the person who has a right to receive
receipt for air freight.
them, without prejudice.
Bill of lading (BOL or B/L) - is issued to a shipper • Must file suits against air carrier within two
detailing the method and path of a shipment. It years
is a contract for the movement of the goods,
What is Carriage of Goods by Sea (COGSA)?
and serves as a receipt for the cargo and can act
What are the liabilities under COGSA?
as proof of ownership of the goods being
transported. Ocean shipments use bill of lading. • Carrier must use diligence in providing
seaworthy vessel at beginning of voyage. Carrier
What are the liabilities of International Air
is not liable for damage due to fire, storms and
Carriers according to Warsaw Convention?
negligence in navigating or managing ship
• Air carrier is presumptively liable for all
• Delivery of Damage Cargo – carrier must give
damage to cargo unless the
written notice to carrier at port of discharge
airline shows not at fault or the shipper is
o For visible damage – give notice immediately
negligent
o If damage is not visible – give notice after 3
• Air Carrier is liable for death or bodily injury days
resulting from accident o Must file suit within one year
aboard the aircraft or in boarding and o Clean Bill of Lading establishes presumption
disembarking that goods
delivered to carrier are in good condition –
• Air Carrier is liable for Cargo Loss or Damage
shifts burden to
unless due to inherent
carrier
defect, defective packaging not by carrier, act of
o For sealed containers – the outer condition of
war or armed conflict, act of public authority,
container is
negligence of shipper
only established
• Air carrier is liable for baggage loss of the • Carrier is not liable for perils of sea
passenger • Shipper is liable for inherently shipping
dangerous goods when
Enforcing Warsaw Convention neither shipper nor carrier had actual
• Suits can only be brought in countries that are knowledge of the danger
signatories Ways of Enforcing the Liability of Common
• Where ticket was purchased, final destination Carriers
or where carrier has principal place of business When a common carrier fails to comply with the
• Suits for death or injury in passenger’s standard of care required of it by law, it may be
principal residence If carrier sued on the ground of either:
operates there (Montreal Convention) 1. Breach of contract
• Time Limits 2. Tort or quasi-delict
• Must file notice for cargo or baggage damage A person suing a common carrier cannot
– notify within 7 days of receipt of checked maintain an action under both
luggage; 14 days for receipt of cargo grounds.
• Delay of baggage or cargo – notify in writing Damages Recoverable from Common Carriers
no later than 21 days from date of actual
delivery 1. Actual or Compensatory damages – are
adequate compensation for pecuniary loss
suffered by a person as he has proven (e.g. – • The CAB regulates the economic aspect of air
medicine, hospitalization expenses). transportation.
2. Moral damages – include physical suffering, • It supervises and regulates, has jurisdiction
mental anguish, fright, serious anxiety, over air carriers, sales and cargo agents, air
besmirched reputation, wounded feelings, freight forwarders.
moral shock, social humiliation, and similar
• Fixes and determines reasonable individual,
injury.
joint or special rates, charges or fares which an
3. Nominal damages – are adjudicated in order air carrier may demand, collect or receive for
that a right of a person, which has been violated any service in connection with air commerce.
or invaded by the CC, may be vindicated or
• CAB is authorized to grant any foreign airline
recognized, and not for the purpose of
increase in frequencies and or capacities on
indemnifying such person for any loss suffered
international routes, when in judgment the
by him.
national interest requires it.
4. Temperate or Moderate damages – which are
• Air Commerce means and includes air
more than nominal but less than compensatory
transportation for pay or hire, navigation of
damages, may be recovered when the court
aircraft for business.
finds that some pecuniary loss has been
suffered but its amount cannot from the nature • Certificate of Public Convenience and
of the case, be proven with certainty. Necessity (CPCN) – permit issued by CAB
authorizing a person to engage in air commerce,
5. Liquidated damages – are those agreed upon
whether foreign or domestic. It specifies:
by the parties to a contract, to be paid in case of
breach thereof. • Terminal and intermediate points between
which the air carrier is authorized to operate
6. Exemplary or Corrective damages – are
imposed, by way of example or correction for • Time of arrival and departure at each point
the public good, in addition to actual or
compensatory, moral, temperate or liquidated • Frequency of flights
damages. Ex. Recklessness - the court will • No carrier should abandon any routes or part
decide whether or not they should be granted. for which CPCN was issued, unless it is for the
public interest.
REGULATIONS OF AIR TRANSPORTATION What are the duties and responsibilities of the
BUSINESS CIVIL AVIATION AUTHORITY OF THE
PHILIPPINES (CAAP)?
• The airline industry is primarily regulated by
the Civil Aeronautics Board (CAB) and Air • The CAAP, formerly ATO, is an agency under
Transportation Office (ATO), now the Civil the Department of Transportation (DOTr)
Aviation Authority of the Philippines (CAAP). • It is the national aviation authority of the
• The governing law is R.A. No. 776 a.k.a. Civil Philippines, responsible for implementing
Aeronautics Act of the Philippines. policies on civil aviation to assure safe,
economic and efficient air travel.
What are the duties and responsibilities of the • The agency also investigates aviation accidents
CIVIL AERONAUTICS BOARD (CAB)? via its Aircraft Accident Investigation and Inquiry
Board.
Government Agencies That Have Jurisdiction NINOY AQUINO INTERNATIONAL AIRPORT
over Common Carrier
• Is one of the two international airports serving
DEPARTMENT OF TRANSPORTATION (DOTr) the Metro Manila Area and is the main
international gateway to the Philippines.
• Responsible for the maintenance and
expansion of viable, efficient and dependable • There are 4 terminals:
transportation and communications system as
• Terminal 1: NAIA Terminal - International
effective instruments for national recovery and
flights, non-Philippine Airlines
economic.
• Terminal 2: Centennial Terminal - All
• It is responsible for the country’s land, air, sea
Philippine Airlines flights only (North wing
and communications infrastructure.
International, South wing Domestic)
LAND TRANSPORTATIONFRANCHISING AND
• Terminal 3: NAIA International Terminal -
REGULATORY BOARD (LTFRB)
International flights
• Responsible for promulgating, administering, (Air Philippines, Cebu Pacific, PAL Express)
enforcing and monitoring compliance of
• Domestic Terminal - All domestic flights other
policies, laws and regulations of public land
than Philippine Airlines
transportation services.
PHILIPPINE PORTS AUTHORITY
LAND TRANSPORTATION OFFICE (LTO)
• Government entity specially charged with the
• Responsible for optimizing the land
financing, management and operations of public
transportation service and facilities and to
ports throughout the Philippines.
effectively implement the various transportation
laws, rules and regulations.
• Easily identifiable and shall be used exclusively • Main Office Accreditation Should be
for the travel and tour operation business accredited prior to the accreditation of the
branch office.
• Furnished with basic furniture and equipment
• Validity Of Accreditation Certificate of
• Minimum office floor area = 18 square
Accreditation VALID FOR 2 YEARS Provided
meters (except for Branch Office – Chapter 1,
that the required Mayor’s/Business permit and
Section 1) Minimum of three (3) employees =
other pertinent documents shall be renewed
General Manager Reservation Officer
upon expiration and shall be submitted to the
Tour/Product Development Officer
Department.
• Maintain a temperature between 20-25
• Surrender Of DOT Sticker Upon renewal of
degree year round except in areas where
accreditation
elevation is 2000 ft. above sea level
• Access of Department Representatives to
c) For General Manager
Agency’s Office and Records The DOT shall
• Documents to prove a minimum of three (3)
have access to an enterprise’s office and records
years managerial experience in travel and tour
during business hours for verification of
agency operations or proof of passing a Travel
compliance with the standards and
and Tour Agency Management Course or its
requirements.
equivalent
• Surrender of DOT ID – the enterprise shall
d) Notarized List of Names of all Officials and
notify the Department of Its officers and
Employees (with office designation and
employees who have ceased to be employed
Nationality)
from their company and shall surrender the
Accreditation Fees and Other Charges officers’ / employees’ ID cards within 7 days
upon termination of employment
Inspection Report
Suspension, Revocation, Cancellation of • Second Offense - One (1) year suspension and
Accreditation or Closure of Business be subject to a fine not less than Seventy Five
Thousand Pesos (₱75,000.00)
1. Unauthorized transfer and/or reproduction of
Accreditation certificate, stickers, IDs or any • Third Offense - Revocation/Closure of Business
document issued by the Department of Tourism. and subject to a fine of at least or not less than
One Hundred Thousand Pesos (₱100,000.00)
2. Gross and evident bad faith in dealing with
clients/fraudulent solicitation of business. • The DOT, at its own instance, shall
revoke/cancel the accreditation of an accredited
3. Tolerance of gross misconduct, discourtesy,
travel and tour agency which violates any of the
dishonesty or misrepresentation committed by
provisions of these Rules and Regulations
any of the operator’s officers or employees
without prejudice to the imposition of other
against its clients to the deterrent of the
applicable penalties under Philippine laws.
tourism industry.
• The DOT shall likewise issue a Notice of
4. Employment or hiring of non-DOT accredited
Violation to the concerned LGU for appropriate
tourism frontliners or engaging the services of
sanction such as but not limited to
non-DOT accredited tourism
revocation/cancellation of issued
establishments/vehicles except in areas where
licenses/permit or closure of the establishment
there are no DOT accredited
found to have violated the terms of their
frontliners/trainers/vehicles/establishments
accreditation.
available.
• Tourism Advisories
5. Failure to specify and include in any form of
- Complete identification of the pertinent
advertisement the DOT Tourism Quality Seal
tourism enterprise;
and Accreditation Number with Expiry
- Location of the entity;
date/validity.
- Its registered owner or proprietor and the
6. False, deceptive or misleading advertisement business address;
by Philippine mail or in commerce by print, - The specific term or terms of accreditation
radio, television or other medium of violated; and
advertisement to the public. - The statement that the advisory shall only be
lifted upon continued compliance of the
7. Promoting, facilitating or conducting activities enterprise with the terms of accreditation.
involving drug-related transactions and any
form of exploitation of women and children. Issuance of Additional Circulars / Orders
8. Non-settlement of the complaint filed against The DOT shall, whenever necessary, issue
the establishment with the Department. additional Circulars/Orders for a more effective
implementation of their rules and regulations.
9. Any other case/complaint filed against the
establishment outside the Department. The Tourism Quality Seal
PRIORITY LANE
FOR PWDs
MODE:
- By tendering a check, or
- Cash, or
- The document necessary to claim the
compensation or benefits. The document shall
be convertible to cash within fifteen (15) days
from the date when the occasion occurred.