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Finals - Intro To Law (11TH Week)

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Finals - Intro To Law (11TH Week)

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meh
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FINALS: INTRO TO LAW

11TH WEEK
COMMERCIAL LAW

a. Give the definition of a common carrier under Article 1732 of the Civil Code.
➢ Article 1732. Common carriers are persons, corporations, firms or associations
engaged in the business of carrying or transporting passengers or goods or both, by
land, water, or air, for compensation, offering their services to the public.
➢ Elements of a common carrier:
a. persons' corporations, firms or associations
b. engaged in the business of carrying or transporting passengers, goods or both
c. means of carriage is by land, water or air
d. the carrying of passengers , goods or both is for compensation
e. the service is offered to the public without distinction.
a.1 Discuss de Guzman v. CA. G.R. No. L-47822, Dec. 22, 1988.

b. What are the tests to determine if a party is a common carrier of goods?


➢ Tests to determine if a party is a common carrier of goods:
● He must be engaged in the business of carrying goods for others as a public
employment and must hold himself out as ready to engage in the
transportation of goods for persons generally as a business and not as a
casual occupation.
● He must undertake to carry good of the kind to which his business is
confined.
● He must undertake to carry by the method by which his business is conducted
and over his established roads.
● Transportation must be for hire.
b.1 Discuss First Philippine Industrial Corporation v. CA. G.R. No. 125948, Dec.
29, 1988.

c. Discuss Articles 1733 and 1755 of the Civil Code.


➢ Article 1733. Common carriers, from the nature of their business and for reasons of
public policy, are bound to observe extraordinary diligence in the vigilance over the
goods and for the safety of the passengers transported by them, according to all the
circumstances of each case.
➢ Article 1755. A common carrier is bound to carry the passengers safely as far as
human care and foresight can provide, using the utmost diligence of very cautious
persons, with a due regard for all the circumstances.

d. Discuss extraordinary diligence.


➢ Article 1737. The common carrier’s duty to observe extraordinary diligence over the
goods remain in full force and effect even when they are temporarily unloaded or
stored in transit, unless the shipper or owner has made use of the right stoppage in
transitu.
(common carrier becomes a warehouseman - ordinary diligence)
➢ Calculated to protect the passengers from the tragic mishaps that frequently occur in
connection with rapid modern transportation.
➢ That extreme measure of care and caution which persons of unusual prudence and
circumspection use for securing and preserving their own property or rights.

e. Why is extraordinary diligence required in the performance of the functions of a


common carrier?
➢ Article 1737. The common carrier’s duty to observe extraordinary diligence over the
goods remains in full force and effect even when they are temporarily unloaded or
stored in transit, unless the shipper or owner has made use of the right of stoppage
in transitu.
➢ Stoppage in transitu : the right of a seller of goods to stop them on their way to the
buyer and resume possession of them (as on discovery of the buyer's insolvency) —
called also stoppage in transitu

f. Discuss Article 1734 of the Civil Code.


➢ Article 1734. Common carriers are responsible for the loss, destruction, or
deterioration of the goods, unless the same is due to any of the following causes
only:
(1) Flood, storm, earthquake, lightning, or other natural disaster or calamity;
(2) Act of the public enemy in war, whether international or civil;
(3) Act or omission of the shipper or owner of the goods;
(4) The character of the goods or defects in the packing or in the containers;
(5) Order or act of competent public authority.

g. Discuss Articles 1735 and 1736 of the Civil Code.


➢ Article 1735. In all cases other than those mentioned in Nos. 1, 2, 3, 4, and 5 of
the preceding article, if the goods are lost, destroyed or deteriorated, common
carriers are presumed to have been at fault or to have acted negligently, unless they
prove that they observed extraordinary diligence as required in article 1733.
➢ Article 1736. The extraordinary responsibility of the common carrier lasts from the
time the goods are unconditionally placed in the possession of, and received by the
carrier for transportation until the same are delivered, actually or constructively, by
the carrier to the consignee, or to the person who has a right to receive them,
without prejudice to the provisions of article 1738.

h. Discuss presumption of negligence in cases involving common carriers.


➢ Presumption of negligence
Two conditions for the birth of the presumption of negligence:
● there exists a contract between the passenger or the shipper and the
common carrier
● the loss, deterioration, injury or death took place during the existence of the
contract
➢ Doctrine of Proximate Cause: there is presumption of negligence If the goods are
lost, destroyed or deteriorated, common carriers are presumed to have acted
negligently, unless they prove that they observed extraordinary diligence. In case of
death of or injuries to passengers, common carriers are presumed to have been at
fault or to have acted negligently, unless they prove that they observed
extraordinary diligence.
➢ Duration of Duty
Carriage of goods
● Carriage of goods : due diligence should be exercised the moment the goods
are delivered to the carrier
● Goods are deemed delivered to the carrier when the goods are ready for and
have been placed in the exclusive possession, custody and control of the
carrier for the purpose of their immediate transportation and the carrier has
accepted them
h.1 Discuss Sps. Perena v. Sps. Zarate and PNR. G.R. No. 157917, Aug. 29, 2012.
h.2 Discuss Calalas v. CA, G.R. No. 122039, May 31, 2000.

i. Cases on breach of contract carriage.


i.1 Discuss Air France v. Carrascoso. G.R. No. L-21438, Sept. 28, 1966.
i.2 Discuss Cathay Pacific Airways v. Sps. Vasquez, G.R. No. 150843, Mar. 14. 2003.
i.3 Discuss Japan Airlines v. Simangan, G.R. No. 170141, April 22, 2008.

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