Laws Regulating Tourist Transportation Business

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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?

<p>A carrier that serves the general public at reasonable rates and without discrimination. (C)</p> Signup and view all the answers

What are the elements of a common carrier?

<p>Business of transportation, for compensation, and for public use. (B)</p> Signup and view all the answers

A common carrier is liable for damages to products carried.

<p>True (A)</p> Signup and view all the answers

Private carriers are subject to federal regulations.

<p>False (B)</p> Signup and view all the answers

Contract carriers may offer specialized equipment.

<p>True (A)</p> Signup and view all the answers

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

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

What is a charter?

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

What is the nature of responsibility of a common carrier?

<p>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.</p> Signup and view all the answers

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

<p>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.</p> Signup and view all the answers

What is a contract of carriage?

<p>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.</p> Signup and view all the answers

What is a Bill of Lading?

<p>A contract between a shipper and a carrier for the transport of goods. (A), A document that details the method and path of a shipment, acting as a receipt for the cargo. (D)</p> Signup and view all the answers

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

<p>Floods, storms, earthquakes, and lightning. (C)</p> Signup and view all the answers

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

<p>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.</p> Signup and view all the answers

What is Carriage of Goods by Sea (COGSA)?

<p>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.</p> Signup and view all the answers

Flashcards

What is transportation?

Transportation is the process of moving people or goods from one location to another. It encompasses various modes of transportation such as land, water, and air.

What are the roles of Transportation in Logistics?

Transportation plays a vital role in logistics by physically connecting suppliers and customers. It acts as the link between nodes (fixed facilities) in a distribution network.

What is a common carrier?

A common carrier is a for-hire transportation service that provides service to the general public at reasonable rates and without discrimination. They are subject to regulations and are liable for damages to goods carried.

What is a Regulated Carrier?

A regulated carrier operates under government regulations, primarily found in motor and water carriage. Regulations include entry controls, reasonable rates, and non-discrimination provisions.

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What is a Contract Carrier?

A contract carrier is a for-hire transportation service that does not have to serve the general public. They can serve one or a few shippers exclusively and may offer specialized equipment.

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What is a Private Carrier?

Private carriage refers to a firm's own transportation system. It is not for-hire and not subject to federal regulations. It can be the firm's primary business or a supporting function.

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What is a charter?

A charter is a contract between a passenger and a carrier where the carrier undertakes to transport the passenger to their destination safely. It can be considered a private carrier.

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Why is extraordinary diligence required for Common Carriers?

Common carriers are required to exercise extraordinary diligence, meaning they must go above and beyond to ensure the safety of passengers and goods. This is different from private carriers that only need to exercise ordinary diligence.

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Define a Contract of Carriage

A contract of carriage is a legally binding agreement between a carrier of goods or passengers and the consignor, consignee, or passenger. It outlines the rights, duties, and liabilities of each party.

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What is an Air Waybill?

An air waybill is a non-negotiable document issued by an air carrier for goods transported by air. It acts as delivery instructions, a contract of carriage, and a cargo receipt.

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What is a Bill of Lading?

A bill of lading is issued to a shipper and details the method and path of a shipment. It serves as a contract for the movement of goods, a receipt for the cargo, and proof of ownership.

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What is the Warsaw Convention?

The Warsaw Convention governs the liabilities of international air carriers for passenger injuries, baggage damage, and cargo loss. It establishes time limits for filing claims and suing.

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What is the Montreal Convention?

The Montreal Convention is an update to the Warsaw Convention that aims to enhance passenger rights and provide better compensation for injuries, baggage, and cargo losses.

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What is the COGSA?

The Carriage of Goods by Sea (COGSA) is a legislation that regulates the liabilities of ocean carriers for cargo loss or damage. It applies during the voyage from port of loading to port of discharge.

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Define 'Tour Operator'

A tour operator is an entity that organizes and conducts inbound and local tours. They arrange transportation, accommodation, and make online reservations for a fee.

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Define 'Travel Agency'

A travel agency is an entity that provides travel-related services like transportation and accommodation reservations, documentation, ticket sales, and outbound tour packages.

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Define 'Travel and Tour Agency'

A travel and tour agency encompasses both tour operator and travel agency services. They offer comprehensive travel planning and management services.

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Define 'Online Travel and Tour Agency'

An online travel and tour agency conducts its operations solely through websites and online platforms. They provide travel-related services and bookings online.

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Define 'Inbound Tour'

An inbound tour is a tour organized for groups or individuals visiting the Philippines or any part of the country.

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Define 'Local Tour'

A local tour is designed for residents of the Philippines within the country, showcasing local attractions and experiences.

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Define 'Outbound Tour'

An outbound tour is a tour package for individuals or groups traveling outside of the Philippines, exploring international destinations.

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What is Accreditation in Tourism?

The DOT (Department of Tourism) provides accreditation to tourism enterprises that meet minimum standards. This certification recognizes their compliance with operating procedures and service quality.

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What is the DOT Tourism Quality Seal?

The DOT Tourism Quality Seal is a mark displayed by DOT-accredited establishments. It indicates that they have met the set standards in service quality and operations.

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What is the Air Passenger Bill of Rights?

The Air Passenger Bill of Rights outlines the rights of air passengers in the Philippines, including rights regarding accurate information, full value services, compensation for cancellations, and delayed baggage.

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How are hotels classified in the Philippines?

Hotels in the Philippines are classified according to a five-star grading system. The star rating reflects the level of service, facility quality, and operational standards.

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What is the Right to Privacy in Hotels?

Guests have the right to privacy in their hotel rooms, meaning the hotel management should not use any surveillance or recording devices without authorization. However, if illegal activities are suspected, the hotel management has the right to investigate.

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What is the Consumer Act of the Philippines?

The Consumer Act of the Philippines protects consumers from deceptive or unfair sales acts and practices, such as false advertising. Hotel guests have the right to file a complaint if the hotel's advertisements misrepresent their services and facilities.

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What are the health and safety standards in hotels?

Hotels are required to uphold certain standards of cleanliness and hygiene to ensure the health and safety of their guests. They need to provide adequate housekeeping services and medical assistance in case of emergencies.

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What are the liabilities of hotels for guest belongings?

Hotels are responsible for the loss or damage of guest belongings, except for those caused by acts of God or the guest's own negligence. They are not liable for items lost or damaged outside designated hotel areas.

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What are the rights of disabled people in hotels?

The Republic Act 9442 (Accessibility Law) requires establishments to provide facilities and devices to enhance the mobility of disabled persons. Hotels must offer them at least a 20% discount on services.

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Who regulates gambling in the Philippines?

The Philippine Amusement Gaming Corporation (PAGCOR) regulates and licenses all land-based casinos in the Philippines. It controls the gambling industry and ensures compliance with regulations.

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What is the legal gambling age in the Philippines?

The legal gambling age in the Philippines is 21 years old. Underage gambling is a serious offense with strict penalties.

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Are online casinos legal in the Philippines?

PAGCOR licenses and regulates online gambling businesses, but it does not allow them to offer services to Filipino residents. Filipino residents can legally access legally licensed offshore gambling sites.

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Define 'Caterer'

A caterer is an individual or company providing food, supplies, and sometimes services for events like parties, weddings, and corporate functions. They offer on-premise and off-premise catering services.

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What is the Food Safety Act of 2013?

The Food Safety Act of 2013 (RA 10611) defines food safety as the assurance that food does not cause harm when consumed. It aims to protect public health and enhance consumer confidence.

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What is the Consumer Act of the Philippines?

The Consumer Act of the Philippines (RA 7394) protects consumers from deceptive sales practices, provides information and education, and ensures consumer redress. It is enforced by relevant government agencies.

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What are Liquor Licensing Laws?

Liquor licensing laws regulate the sale, distribution, and consumption of alcoholic beverages in the Philippines. They ensure responsible alcohol consumption, maintain public order, and generate revenue.

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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.
  • 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.

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