Transportation Laws and Regulations Quiz

Transportation Laws and Regulations

• Transportation is the movement of people and goods from one location to another.
• Transportation moves products from one mode in the distribution channel to another.

Modes of Transportation

• Land Transport: Rail and road
• Water Transport: Ships and boats
• Air Transport: Planes and helicopters
• Intermodal Transportation: A combination of two or more transport kinds.

Roles of Transportation in Logistics

• Transportation connects a firm to suppliers and customers.
• In a network, transportation is the link between fixed facilities (nodes).
• Transportation adds value to goods by providing time and place utility.

Legal Classification of Carriers

• Common Carrier: Services the general public at reasonable rates without discrimination. Carriers are liable for damages to goods carried except for acts of God, public enemy, shipper, or inherent defects. Common carriers are the backbone of the transportation industry.

• Regulated Carrier: Found in motor and water carriage, with regulations, including entry controls and reasonable rates. They must provide safe and adequate service.

• Contract Carrier: Serves one or a few shippers exclusively, May offer specialized equipment, and the carrier/shipper relationship is contractual. Typically have lower rates than common carriers.

• Private Carrier: The firm's own transportation, not for hire, and not subject to Federal regulations. Usually, not the firm's primary business and can charge an intra-company fee. Gain ultimate control over shipments and have greater flexibility.

Common Carrier Elements

• Business of transportation: Engaged in transporting passengers or goods.
• For compensation: Receiving payment for services.
• For public use: Offers services to all people without special selection processes.

Common Carrier vs. Private Carrier

• Common Carrier: Holds itself out for hire to the public, required to provide services to everyone, and subject to regulations.
• Private Carrier: Acts on a contractual basis, not required to serve the public, and not subject to regulations.

Characteristics of Common Carrier

• Public Service: Acts as a public service for goods transportation.
• No Discrimination: Cannot decline to carry goods for arbitrary reasons.
• No Monopoly: The Public Service Commission ensures reasonable rules and public convenience.
• Public Convenience: Aimed at convenience for the public.

Extraordinary Diligence and Responsibility in Common Carriers

• Common carriers are responsible for diligence in protecting goods and passengers.
• Presumption of negligence in cases of damage or injury if extraordinary diligence is not proven.
• Responsibility continues even for temporarily stored goods until delivery to recipient.

Period When Extraordinary Diligence Ends

• Responsibility ends when goods or passengers are delivered.
• Temporary storage of goods by carrier is an exception and responsibility is continued.

Common Carrier Absolution from Liability

• Natural disasters (flood, storm, earthquake, lightning)
• Acts of public enemy (wartime acts)
• Character or defects in goods or packaging
• Order of competent public authority.

Contract of Carriage

• Agreement between a carrier and shipper (or passenger).
• Defines rights, duties and responsibilities of parties.
• Can include provisions for acts of God, force majeure, and other special conditions.

Air Waybill (AWB) and Bill of Lading (B/L)

• AWB: Air transportation document acting as delivery instructions, cargo receipt, a non-negotiable document
• B/L: Ocean freight documents, serving as a cargo receipt.

Liabilities of International Air Carriers (Warsaw Convention and Montreal Convention):

• Suits are limited to specific locations (e.g., where the ticket was purchased, carrier's primary business location or destination.)
• Time limits apply for filing notices of claims of damages or injuries.

Carriage of Goods by Sea (COGSA)

• Not included in this study guide.

Damages Recoverable from Common Carriers

• Actual (compensatory) damages: Direct financial losses.
• Moral damages: Non-pecuniary losses (mental anguish, fright, etc.).
• Nominal damages: Recognizing a violated right without substantial loss.
• Temperate/moderate damages: Losses not precisely quantifiable.
• Liquidated damages: Pre-agreed compensation for breach of contract.
• Exemplary/corrective damages: Punitive for malicious or reckless conduct

Government Agencies Involved in Tourism Transportation

• Department of Transportation (DOTr)
• Land Transportation Franchising and Regulatory Board (LTFRB)
• Land Transportation Office (LTO)
• Maritime Industry Authority (MARINA)
• Philippine Coast Guard
• Philippine National Railways (PNR)
• Metro Rail Transit/Light Rail Transit
• Ninoy Aquino International Airport
• Philippine Ports Authority
• Civil Aeronautics Board (CAB) and Air Transportation Office (ATO), now the Civil Aviation Authority of the Philippines (CAAP)