Laws Regulating Tourist Transportation Business

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is transportation?

Transportation is the movement of people and goods from one location to another. It is also the movement of products from one stage in the distribution channel to another.

What are the different modes of transportation?

Land, Sea, Air, and Rail

Road, Rail, Ship, and Air

Land, Water, Air, and Intermodal (correct)

Road, Rail, Air, and Water

What are the roles of Transportation in Logistics?

Transportation is the physical link between a business and its suppliers and customers. Transportation is also a link between fixed facilities like warehouses and distribution centers. Transportation adds value to a product by facilitating the timely delivery of goods.

What is a common carrier?

A carrier that serves the general public at reasonable rates and without discrimination. Signup and view all the answers

What are the elements of a common carrier?

Business of transportation, for compensation, and for public use. Signup and view all the answers

A common carrier is liable for damages to products carried.

True Signup and view all the answers

Private carriers are subject to federal regulations.

False Signup and view all the answers

Contract carriers may offer specialized equipment.

True Signup and view all the answers

What is the primary difference between a common carrier and a private carrier?

A common carrier is obligated to serve the general public at reasonable rates and without discrimination, while a private carrier is not. Signup and view all the answers

What is a charter?

A charter is a contract between a passenger and a carrier where the carrier undertakes to transport the passenger safely to their destination. Signup and view all the answers

What is the nature of responsibility of a common carrier?

Common carriers must exercise extraordinary diligence to ensure the safety of their passengers and the goods they transport. This means that they must use the utmost care and foresight that a very cautious person would use under the circumstances. Signup and view all the answers

What is the period when the degree of extraordinary diligence should end for a common carrier?

The degree of extraordinary diligence begins when goods are received by the common carrier for transport and ends when the goods are either actually or constructively delivered to the consignee. Signup and view all the answers

What is a contract of carriage?

A contract of carriage is a contract between a carrier and a shipper or passenger that defines the rights, duties, and liabilities of each party involved in the transportation of goods or passengers. Signup and view all the answers

What is a Bill of Lading?

A contract between a shipper and a carrier for the transport of goods. Signup and view all the answers

Which of the following are considered acts of God that absolve a common carrier from liability?

Floods, storms, earthquakes, and lightning. Signup and view all the answers

What are the liabilities of international air carriers according to the Warsaw Convention?

The Warsaw Convention establishes liability for international air carriers in cases of passenger death or personal injury, as well as for damage to or loss of baggage. Signup and view all the answers

What is Carriage of Goods by Sea (COGSA)?

COGSA is a legal framework that governs the liability of carriers for goods transported by sea, addressing issues such as damage, loss, or delay of cargo during sea voyages. Signup and view all the answers

Study Notes

Laws Regulating Tourist Transportation Business

Transportation is the movement of people and goods from one location to another. It includes moving products from one mode to another in a distribution channel.
Transportation modes include land (rail, road), water (ships, boats), air (planes, helicopters), and intermodal (combining two or more modes).
Transportation plays a critical role in logistics, connecting firms to suppliers and customers, and adding value through time and place utility.

Legal Classification of Carriers

Common Carriers: Serve the general public at reasonable rates without discrimination. They are liable for product damages, but not for acts of God, acts of the public enemy, actions by the shipper, or inherent defects in the goods. They are the backbone of the transportation industry.
Regulated Carriers: Found in motor and water transport, they are subject to regulations including rate, entry, and nondiscrimination provisions; and must provide safe and adequate service.
Contract Carriers: Only serve specific shippers or a few, exclusively; they don't have to serve the general public.
Private Carriers: Firms' own transportation, not for hire and not subject to federal regulations. May not be their primary business.

Laws on Common Carriers

Common carriers are operators of public utility vehicles responsible for transporting passengers or goods.
Elements of a common carrier include:
- Transportation business
- Compensation for services
- Public use (service to all without selection)
Common carriers are required to exercise extraordinary diligence in the carrying of passengers and goods.

Difference Between Common and Private Carriers

Common Carriers: Hold themselves out to carry goods for all who request service, bound to take freight, liable for extraordinary diligence, and subject to public regulation.
Private Carriers: Agree to carry for some specific individuals, not required to carry every request, not liable for extraordinary diligence, and not subject to regulation.

Four Characteristics of a Common Carrier

Public Service: Holding themselves out as ready to carry goods for hire, not simply as a casual occupation
Non-Discrimination: Cannot lawfully refuse to take goods for transport.
No Favoring of Monopolies: Public Service Commission decides reasonable rules for the benefit of the traveling public.
Public Convenience: Serves the general public.

Other Aspects of Carrier/Shipper Relationship

Relationship details are part of the carrier/shipper contract.
Rates are usually lower than for common or regulated carriers.
Backhauls (return trips of empty equipment) are frequently used, resulting in significant capital expenditure and operational management.

Contract of Carriage

A contract between a carrier and shipper (or passenger) defining the rights and obligations of each party concerning the conveyance of goods or passengers.
Contracts typically address acts of God and include clauses on force majeure.
The bill of lading is a contract for ocean shipment.
Air waybills are issued for air freight. They serve as delivery instructions and receipts.

Liabilities of International Air Carriers under Warsaw Convention

Suits must be brought in the country where the ticket was purchased, the final destination, or the carrier's principal place of business.
Liabilities cover death or injury to passengers.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

This quiz explores the legal framework surrounding tourist transportation businesses, including the different modes of transportation and the classification of carriers. Students will learn about common carriers and regulated carriers, along with their obligations and liabilities. Test your knowledge on how transportation impacts logistics and the economy.