1.

Under Warsaw Convention on Air Transport, the liability of the carrier is limited to
______ per passenger as regards to objects which the passenger takes charge of himself.
a. 5,000 francs
b. 5,000 pesos
c. 5,000 dollars
d. 10,000 pesos

2. Under Warsaw Convention on Air Transport, the ________ shall be prima facie evidence
of the conclusion of the contract, of the receipt of the goods and of the conditions of the
transportation.
a. place and date of issue
b. air waybill
c. bill of lading
d. passenger ticket

3. Under Warsaw Convention on Air Transport, which of the following is not included in a
passenger ticket3.______________?
a. place and date of issue
b. place of departure and destination
c. a statement that the transportation is not subject to the rules relating to
liability established by this convention
d. name and address of the carrier

4. Under Warsaw Convention on Air Transport, which of the following is not included in
the baggage4.______________ check?
a. description of the package
b. place and date of issue
c. . name and address of the carrier
d. a statement that the transportation is subject to the rules relating to liability
established by this convention

5. The air waybill and the receipt .______________ for the cargo shall contain except:
a. An indication of the places of departure and destination.
b. An indication of the weight of the consignment.
c. An indication of the name of the consignment.
d. An indication of at least one such stopping place.

6. The carrier is not liable if he proves that the destruction, loss of, or damage to, the cargo
resulted solely ______________ from one or more of the following except:
a. Inherent defect, quality or vice of that cargo
b. An act of war or an armed conflict
c. Act of God & Fortuitous event
d. Defective packing of cargo performed by a person other than the carrier or his
servants or agents
7. In case of damage, the person entitled to delivery must complain to the carrier
forthwith7.______________ after the discovery of the damage, and at the latest, within
how many days from the date of receipt?
a. Seven days
b. Five days
c. Three days
d. One day

8. In the case of cargo, how many days within a person must complain from the date of
receipt8.______________?
a. Seven days
b. 10 days
c. 14 days
d. 19 days

9. The WARSAW Convention of 19299.______________ applies to:

a. international carriage of persons, luggage, goods by air and water
b. international carriage of persons, luggage, goods by air for reward
c. international carriage of persons, luggage, goods by air gratuitously or for
reward
d. international carriage of persons, luggage, goods by air and water gratuitously or
for reward

10. How long before a person's right to damages be extinguished10.______________?

a. no extinguishment
b. 2 years from the date of arrival of goods, if no action is sought
c. 3 years from the date of arrival of goods, if no action is brought
d. 5 years from the date of arrival, if no action is sought

11. What is an air11.______________ consignment note?

a. a note required by the carrier of the goods to the consignor for the receipt of
goods and conditions of the carriage
b. a note required by the consignor of the goods to the carrier for the receipt of
goods
c. a document of consignment demanded by the pilot to the passenger
d. a document of consignment given to the passenger for safe passage

12. In case of death of a person liable, an action for damages can be filed against the:
a. pilot, in case of negligence
b. no one, death extinguishes liability
c. legal representatives to the deceased' estate
d. none of the above

13. Under the Warsaw Convention, for the carriage of passengers, the carrier must deliver a -
____________?
a. bus ticket
 b. baggage ticket
c. passengers ticket
d. luggage ticket

14. The luggage ticket shall be out in duplicate, one for the __________ and the other part
for the carrier.
a. driver
b. owner
c. passenger
d. operator

15. The air consignment note is a prima facie evidence of the conclusion of the contract, of
the receipt of the goods and of the condition of carriage.
a. true
b. false
c. it depends
d. partly true

16. The __________ is responsible for the correctness of the particulars and statements
relating to the goods which he inserts it in the air consignment note.
a. common carrier
b. consignor
c. consignee
d. shipper

17. The passenger takes charge himself of the liability of the carrier as regards to objects in
which it is limited to:
a. 3,000 francs per passenger
b. 4,000 francs per passenger
c. 5,000 francs per passenger
d. 6,000 francs per passenger

18. Damages may be awarded in the form of periodical payments, the equivalent capital
value of the said payments shall not exceed:
a. 115,000 Francs
b. 125,000 francs
c. 135,000
d. 145,000

19. The luggage ticket shall contain the following particulars except:
a. the signature of the consignor
b. the place and date of issue
c. the place of departure and of destination
d. the name and address of the carrier or carriers
20. In case of delay the complaint must be made at the latest within ________ from the date
on which the luggage or goods have been placed at his disposal.
a. 10 days
b. 15 days
c. 14 days
d. 20 days

21. Action for loss or damage to the cargo should be brought

a. within the period of 1 month after the delivered but damage goods
b. within the period of 1 month after the undelivered goods
c. within the period of 1 year after the delivered but damage goods
d. within the period of 1 year after the delivered but undamaged goods

22. The prescriptive period is suspended by

a. The express agreement of the parties
b. The express confession of the captain
c. The express provision of the law
d. The express confession of the owner

23. Important features of the COGSA except

a. Amount of carrier’s liability
b. Amount of passenger’s liability
c. Notice of damage
d. Prescriptive period

24. Applicability of COGSA except

a. water/maritime transportation
b. for the carriage of goods
c. for overseas only
d. from foreign port to Philippine port

25. The carrier shall be bound before and at the beginning25.______________ of the voyage
to exercise due diligence to the following EXCEPT
a. make the ship seaworthy
b. properly furnish, endow and prepare the ship
c. make the holds, refrigerating and cooling chambers and all other parts of the s.hips in
which goods are carried, fit and safe for their reception, carriage and p.reservation
d. properly man, equip, and supply the ship

26. After receiving the goods, the carrier, or the master or agent of the carrier, shall, on
demand26.______________ of the shipper, issue to the shipper
a. bill of exchange
b. bill of lading
c. bill of particulars
d. loading marks
27. After the goods are loaded27.______________, the bill of lading to be issued by the
carrier, master or agent of the carrier to the shipper shall if the shipper so demands, be a
a. “sent” bill of lading
b. “shipped” bill of lading
c. “dispatched” bill of lading
d. “conveyed” bill of lading

28. The bill of lading shall be __________evidence of the receipt by the carrier of the goods
as therein described28.______________.
a) ipso facto
b) prima facie
c) apparent
d) motuproprio

29. The carrier shall be bound, before and at the beginning of the voyage, to exercise due
diligence to:
(a) Make the ship unworthy
(b) Properly man, equip, and supply the ship
(c) Make the holds, refrigerating and cool chambers of ship only in
which goods are carried, fit and safe for their reception, carriage
and preservation
(d) All of the above

30. First statement: Subject to the provisions of Article IV, the carrier shall properly and
carefully load, handle, stow, carry, keep, care for and discharge the goods carried.
Second statement: After receiving the goods into his charge, the carrier, or the master or
agent of the carrier, is not obligated to issue to the shipper a bill of lading unless required
by the latter.
(a) First statement is true
(b) Second statement is true
(c) Both statements are true
(d) Both statements are false

31. Carrier or the ship shall not be responsible for loss or damage arising from the following
except:
a. Act of God
b. Act of War
c. Fire caused by the actual fault or privity
d. Act of Public Enemies

32. The term “ship” means:

a. large boat
b. space craft
c. any vessel used for the carriage of goods by sea
d. crew of the ship
33. The following shall be shown in the bill of lading except:
a. loading marks
b. apparent order and condition of goods
c. storage marks
d. number of packages or pieces, or the quantity or weight

34. The shipper shall not be responsible for loss or damage sustained by the carrier of the
ship arising or resulting from any cause without the act, or neglect of the:
a. carrier, captain, or owner
b. ship, vessel, or cargo
c. shipper, his agents, or his servants
d. shipper, carrier, owner

35. What are goods under the COGSA?

a. anything of value carried under a contract of carriage
b. goods, wares, merchandise, and articles of every kind whatsoever, except live
animals and cargo which by the contract of carriage is stated as being
carried on deck and is so carried.
c. goods, wares, merchandise, and articles of every kind whatsoever, including live
animals and cargo which by the contract of carriage is stated as being carried on
deck and is so carried
d. none of the above

36. Contract of carriage under the COGSA extends from ______________.

a. the period from the time when the goods are loaded to the time when they are
discharged from the ship.
b. the period from the time the goods are loaded to the time when they are
discharged from the ship at the port of destination.
c. both a and b.
d. the period from the time when the goods are loaded to the time they are
consigned, received, inspected and disposed by the consignee.

37. To which of the following does COGSA apply?

a. contract of freight
b. charter parties with bill of ladings issued to the ship
c. both a and b
d. none of the above

38. Which of the following statements are true?

a. COGSA provisions do not affect liability arising from averages.
b. COGSA provisions allow insertion of lawful provisions in the bill of lading
regarding averages.
c. both a and b *
d. COGSA allows insertion of provisions in the bill of lading which are contrary to law
on averages but are consistent with COGSA and Maritime and Admirality laws.
39. The captain, in order to collect the price of passage and expenses of maintenance, may
retain the goods belonging to the passenger.
a. True *
b. false
c. partially true
d. partially false

40. In the absence to an agreement to the contrary, it shall be understood that the maintenance
of the passenger s during the voyage is not included in the price of the passage
a. True *
b. false
c. partially true
d. partially false

41. The captain shall be under the obligation, in case of necessity, to furnish them the ______
at a reasonable price necessary for maintenance
a. victuals
b. documents
c. Bill of ladings
d. validations

42. What is not included in a Bill of lading?

a. name and domicile of the captain
b. nationality of the vessel
c. freightage and primage stipulated
d. name of the shipper

43. Who are obliged to draft a Bill of lading?

a. the captain alone
b. the captain and shippers
c. the shipper alone
d. the shippers and consignees

44. 6. How many true copies of the Bill of lading shall be made?
a. 4
b. 3.
c. 6
d. 1

45. Loans on bottomry and respondentia may be executed by the following except:
a. by means of mutual consent
b. by means of a public instrument
c. by means of a policy signed by the contracting parties and the broker who took
part therein
d. by means of a private instrument
 46. Which is not stated in a Contract of Bottomry or Respondentia?
a. the goods pledged to secure the repayment
b. the names, surnames and domicile of the crew
c. the time for repayment
d. the voyage during which the risk is run

47. The loans on bottomry may be made on the salaries of the crew or on profit expected
a. true
b. false
c. partially true
d. partially false

48. The loan for the last voyage shall have preference over
a. prior ones
b. subsequent ones
c. previous ones
d. present ones

49. A charter may be rescinded at the request of the charterer in the following instances
EXCEPT:
Charterer fails to place the cargo alongside the vessel at the termination of extra lay
days.
Should there be an error in the statement of the flag under which she navigates.
Payment of the half of the freight agreed upon.
If the capacity of the vessel should be found not in conformity with that stated in the
certificate of tonnage.

(Yung nakabold, yun ung exceptions dahil at the request of the person to whom the vessel
is chartered; Yung italicized, yun yung hindi exception = A charter party may be rescinded at the
request of the CHARTERER under Art 688 ng Code of Commerce.)

50. The Bill of Lading contains

a. Name, registry and tonnage of the vessel
b. Name of the captain and his domicile
c. Both A and B.
d. A only.

51. Loans on bottomry or respondentia may be executed:

a. By means of a public instrument
b. Certification
c. Both A and B
d. B only.

52. A contract in the nature of mortgage on which, the owner of a ship borrowed money for
the use, equipment, or repair of the vessel and for a definite term and pledges the ship.
 a. Loans on bottomry
b. Loans on respondentia
c. Simple loan
d. None of the above

53. The chartered party may be rescinded at the request of the person to whom the vessel is
chartered in the following instances EXCEPT:
a. Declaration of war to where ports were going to make her voyage.
b. Charterer fails to place the cargo alongside the vessel at the termination of extra
lay days.
c. The person (vessel is chartered) shall sell her before charterer begins to load her.
d. The person (vessel is chartered) shall sell her before charterer begins to load her.

54. Statement I – Maritime laws apply only to maritime trade and sea voyages.
Statement II – Arrastre service is maritime in character.
Statement III – The liability of the owner of the vessel is limited to the value of the vessel
itself.
a. Statements I and II are correct
b. Statement I and III are correct
c. All statements are correct
d. All statements are incorrect

55. Person who discharges administrative duties assigned to him by ship agent or shippers,
keeping an account and record of transaction as required in the accounting book of the
captain is
a. Second Mate
b. Sailing Mate
c. Supercargo
d. Pilot

56. It is in this period where conduct of the vessels is primordial. It is in this zone that vessels
must strictly observe nautical rules, unless a departure therefrom becomes necessary to
avoid imminent danger.
a. First zone
b. Second zone
c. Third Zone
d. None of the above

57. Statement I - Action for loss or damage to the cargo should be brought within one year
after: a. Delivery of the goods (delivered but damaged goods); or b. The date when the
goods should have been delivered (non-delivery).

Statement II - “Loss or Damage” as applied to the COGSA contemplates a situation

where no delivery at all was made by the shipper of the goods because the same had
perished, gone out of commerce, or disappeared in such a way that their existence is
unknown or they cannot be recovered. Thus, it is inapplicable in case of misdelivery or
 conversion.

a. Statement I is false and Statement II is true.

b. Statement I is true and Statement II is false.
c. Both Statements are true.
d. Both statements are false.

58. A contract whereby one vessel, usually motorized, pulls another, whether loaded or not
with merchandise, from one place to another, for a compensation.
a. Contract of carriage
b. Contract of towage
c. Stevedoring service
d. Jettison

59. Bill of lading is a written acknowledgment of receipt of goods and agreement to transport
them to a specific place to a person named or his order. It is ________________ to the
creation of a contract of carriage.

a. a proof
b. the cause
c. not indispensable
d. a requirement

60. The contract of carriage arises from:

a. the moment goods are delivered by shipper to carrier and the carrier agrees
to carry them
b. the moment goods are delivered by carrier to shipper and signs a receipt of
acceptance
c. the moment the carrier and shipper consents to the contract agreed upon
d. the moment goods are delivered by carrier to shipper and the shipper agrees to
carry them

61. In the absence of a bill of lading:

a. their respective claims may be determined by legal proofs which each of the
contracting parties may present in conformity with law.
b. a contract of carriage shall suffice
c. since it is indispensable, it will not affect the parties involved in the contract
d. none of the above

62. The bill of lading serves the following functions except:

a. It is a receipt for the goods shipped
b. It is a contract by which the three parties namely the shipper, carrier and
consignee undertake specific responsibilities and assume stipulated obligations
c. It is a proof of liability in all cases
d. All of the above
63. The bill of lading as a legal evidence of the contract between the shipper and the carrier
is:

a. As evidence, its contents shall decide all disputes which may arise with
regard to their execution and fulfillment.
b. As evidence, it should be in the hands of the holder.
c. As evidence, it should be verified.
d. As evidence, it should be notarized.

64. A kind of Bill of Lading which is issued when the goods have been actually placed
aboard the ship with very reasonable expectation that the shipment is as good as on its
way.

a. On board
b. Received
c. Negotiable
d. Non-negotiable

65. A kind of Bill of Lading which states that the goods have been received for shipment with
or without specifying the vessel by which the goods are to be shipped.

a. On board
b. Received
c. Negotiable
d. Non-negotiable

66. A kind of Bill of Lading which states that the goods referred to therein will be delivered
to the bearer or the order of any person named therein.

a. On board
b. Received
c. Negotiable
d. Non-negotiable

67. . A kind of Bill of Lading which states that the goods referred to therein will be delivered
to a specific person.

a. Non-negotiable
b. Received
c. Negotiable
d. Clean

68. A kind of Bill of Lading which does not indicate any defect in the goods.

a. Clean
b. Received
 c. Negotiable
d. Spent

69. Which of the following is not a kind of bill of lading?

e. On Board Bill of Lading

f. Received for Shipment Bill of Lading
g. In Transitu Bill of Lading
h. Clean Bill of Lading

70. . A ___________ bill of lading is one which contains a notation thereon indicating that
the goods covered by it are in bad condition. Whereas, a __________ bill of lading is one
which does not indicate any defect in the goods.

a. foul and clean

b. defective and good
c. substandard and standard
d. deficient and normal

71. In the case of RP vs. Lorenzo Shipping, Feb. 7, 2005, the surrender of the original bill of
lading is not a condition precedent for a common carrier to be discharged of its
contractual obligation. If surrender of the original bill of lading is not possible, what is
the remedy?

a. Acknowledgment of the delivery by signing the transfer receipt.

b. Acknowledgment of the delivery by signing the delivery receipt.
c. Acknowledgment of the delivery by signing the acceptance receipt.
d. Acknowledgment of the delivery thru call.

72. A ______________ bill of lading is one in which it is stated that the goods referred to
therein will be delivered to the bearer or to the order of any person named therein.
Whereas, a ________________ bill of lading is one in which it is stated that the goods
referred to therein will be delivered to a specified person.

a. traversable and non-traversable

b. passable and impassable
c. negotiable and non-negotiable
d. accessible and inaccessible

73. Which of the following statements is FALSE:

a. The issuance of a bill of lading is necessary to complete delivery and

acceptance.
b. A bill of lading is not indispensable for the creation of a contract of carriage.
c. The bill of lading is juridically a documentary proof of the stipulations and
conditions agreed upon by both parties.
 d. The liability of the carrier as common carrier begins with the actual delivery of
the goods for transportation, and not merely with the formal execution of a receipt
or bill of lading.

74. The bill of lading becomes binding when:

a. A shipper receives the bill of lading with full knowledge of its contents, and
accepted the same under such circumstances.
b. A shipper receives the bill of lading with full knowledge of its contents, and does
not accept the same under such circumstances.
c. A shipper receives the bill of lading without full knowledge of its contents, but
accepted the same under such circumstances.
d. A shipper receives the bill of lading without full knowledge of its contents, and
does not accept the same under such circumstances.

75. The carrier’s liability to the value of the goods in case of loss, deterioration and
destruction is limited to:

a. The value of the goods appearing in the bill of lading, unless the shipper or
owner declares a greater value.
b. The value of the goods appearing in the bill of lading, unless the shipper or owner
declares a lesser value.
c. The value of the goods appearing in the bill of lading, unless the shipper or owner
declares a fair value.
d. The value of the goods appearing in the bill of lading, unless the shipper or owner
declares a market value.

76. As a general rule, _______ true copies of the original bill of lading shall be made, all of
which shall be signed by the captain and by the freighter.

a. Four
b. Three
c. Five
d. As many copies as may be considered necessary.

77. One of the following is NOT included in drafting a bill of lading:

a. The name of the freighter and his domicile

b. The name, registry and tonnage of the vessel
c. The name of the consignee, if the bill is issued to order
d. The freight and the primage stipulated

78. Which of the following is not a true function of a bill of lading?

a. It is the best evidence of the existence of the contract of carriage.

b. It provides for the immunity of the carrier from criminal liability.
 c. It is also the receipt of cargo.
d. It is a commercial document whereby ownership may be transferred by
negotiation if negotiable.

79. It includes every person that now or hereafter may own, operate, manage, or control in
the Philippines, for hire or compensation, with general or limited clientele, whether
permanent, occasional or accidental, and done for general business purposes, any
common carrier, railroad, street railway, etc.
a. Public Utility
b. Public Service
c. Franchise
d. Certificate of Public Convenience

80. The Registered Owner Rule states that:

a. The registered owner of a certificate of public convenience is liable to the public
for the injuries or damages suffered by third persons caused by the operation of
said vehicle except when the same had been transferred to a third person
b. The registered owner is not allowed to escape responsibility by proving that a
third person is the actual and real owner
c. The registered owner shall never be held accountable for any acts committed by
his employee
d. The liability of the registered owner is limited only to the damages caused to the
vehicle

81. Which of the following statements DOES NOT define CPC or CPCN?
a. A CPC or CPCN constitutes a franchise or a contract which confers property
right
b. It is a mere license or a privilege
c. Alteration, revocation or annulment of the certificate is reserved to the State
d. It can be the subject of sale or attachment

82. The following were among the public services covered/governed by the provisions of the
Public Service Act specifically on the rule on granting of the authority to operate
EXCEPT:
a. Warehouses
b. Public utility vehicles
c. Power plants
d. Telecommunication services

83. The following are the purposes of the Public Service Act EXCEPT:
a. To secure adequate sustained service for the public at the least possible cost
b. To prevent ruinous competition
c. To protect the public against reasonable charges and efficient service
d. To protect and secure investments in public services

84. What is CPC?

 a. It is an authorization granted by the LTFRB for the operation of land
transportation services for public use as required by law *
b. It is an authorization granted by the LTO for the operation of land transportation
services for public use as required by law
c. It is an authorization granted by the LTFRB for the operation of land
transportation services for private use as required by law
d. It is an authorization granted by the LTO for the operation of land transportation
services for private use as required by law

85. The following are requirements for granting CPC or CPCN EXCEPT:
a. Applicant must be a citizen of the Philippines or a corporation or entity 80% of
the capital of which is owned by such citizens
b. Applicant must prove public necessity
c. Applicant must prove that the operation of the public service proposed to the
authorization to do business will promote the public service interest on a
proper and suitable manner
d. Applicant must have sufficient financial capability to undertake the proposed
services and meeting the responsibilities incident to its operation

86. Which of the following is an unlawful act of a public utility company?

a. Refusing and neglecting to carry private mail upon request *
b. Engaging in public service business without first securing the proper certificate
c. Maintaining safe, proper and adequate service as determined by the proper
authority
d. Giving just treatment to every clientele

87. ABC Trans is an old operator of bus line in Benguet. ABC is not financially competent to
add new air-conditioned busses. Now, DEF Trans applied for the same service but ABC
contended that old operator rule should be applied.
a. Old operator rule should be applied even if ABC is not financially competent.
b. DEF should be allowed since ABC is not financially competent.
c. Third operator rule should be applied
d. prior applicant rule should be applied.

88. Can the ‘prior operator rule’ and ‘protection of investment’ rule take precedence over the
convenience of the public?
a. Yes, since it is the primary purpose of Public Service Law
b. No, since public convenience is the primary basis of public service
c. Yes, because they are absolute rule
d. none of the choices

89. What does public service means?

a. whole public
b. individual in general without restrictions or selections *
c. all the people in a certain area
d. none
90. The basis for the state to regulate public utilities?
a. Public Service law
b. police power
c. both
d. no

91. The Commission may prescribe as a condition for the issuance of the certificate that the
service can be acquired by the Republic of the Philippines or any instrumentality thereof
upon payment of the cost price of its useful equipment, less reasonable depreciation.
Violation of these conditons result to
a. the immediate cancellation of the certificate without the necessity of any
express action on the part of the Commission.
b. The immediate suspension of the certificate of public convenience or neccesity
c. None. The certificate remains to be valid
d. The immediate cancellation of the certificate with the express action on the part of
the commision.

92. What is the effect of failure to pay the fine in any case within the same specified in the
order or decision of the Commission?
a. Cancellation of the Certificate of Public Convenience until payment of said fine
b. Suspension of the certificate of said public service until payment shall be
made.
c. Cancellation or suspension of the certificate of public convenience until the fine is
duly paid.
d. None.

93. What governs All hearings and investigations before the Commission?
a. It shall be governed by Rules of Court
b. It shall be governed by transportation law
c. It shall be governed by rules adopted by the Commission
d. Which ever is applicable

94. The Public Service Law requires any public service to furnish annual reports of finances
and operations. Such reports shall set forth in details the following except:
a. capital stock issued,
b. the amounts of unpaid capital stock
c. the dividends paid
d. the consolidated and pending obligations and the interest paid thereon

95. The Public Service Law requires any public service to establish, construct, maintain, and
operate any reasonable extension of its existing facilities, provided the following are
proven, except
a. The extension reasonable and practicable
b. The extension will furnish sufficient business to justify the construction and
maintenance of the same
 c. when the financial condition of the said public service reasonably warrants
the future expenditure required in making and operating such extension.
d. When the financial condition of the public services reasonably warrants the
original expenditure required in making and operating such extension

96. It is a business of service engaged in regularly supplyi9ng the public with some
commodity or service of public consequences such as electricity, gas, water,
transportation, telephone or telegraph.

a.) Public Utility

b.) Public Service

c.) Common Carrier

d.) Private Carrier

97. It is an arrangement whereby a person who has been granted a certificate of public
convenience allows another person who owns motor ve3hicles to operate under such
franchise for a fee.

a.) Prior Applicant Rule

b.) Kabit System

c.) Registered Owner Rule

d.) Res Ip Saluquitor

98. This is an increase in price pending public consultation or hearing because of urgent
public need.

a.) Unexpected Increase

b.) Provisional Increase *

c.) Provisional Remedy

d.) Price Increase

99. On the part of consumers, the Public Service Act aims to:

a.) Secure adequate sustained service at least cost *

b.) Make sure consumers consume a lot of products

 c.) Provide consumers with public service

d.) Protect investors

100. It is a special privilege and its terms and conditions are specifically prescribed by
congress:
a. Franchise
b. Permit
c. Authority
d. certificate

101. Under section 16 (n) of the Public service Act, the power of the commission to
suspend or revoke any certificate may only be exercised whenever:
a. the holder thereof has violated or wilfully and contumaciously refused to
comply with the order or regulation of the commission or any provision of
the act
b. the holder thereof has negligently complied with the order or regulation issued by
the commission.
c. the holder thereof has complied with the obligation but violated important
provisions of the act.
d. all of the above.

102. as a general rule, prior notice and hearing is needed before the public service
commission can suspend or revoke a certificate. The exception to the rule is:
a. when it is necessary to avoid irreparable damage or inconvenience to the
public or private interest, in which case, a suspension shall not exceed 30
days may be ordered, prior to the hearing.
b. when it is necessary to avoid irreparable damage or inconvenience to the public or
private interest, in which case, a suspension shall not exceed 15 days may be
ordered, prior to the hearing.
c. when it is necessary to avoid irreparable damage or inconvenience to the public or
private interest, in which case, a suspension shall not exceed 60 days may be
ordered, prior to the hearing.
d. none of the above.

103. A rate is is just and reasonable if if it conforms with the following, EXCEPT:
a. one which is fair to the private service rendered.
b. one which yields to the carrier a fair return upon the value of the property
employed in the performing service.
c. one which is fair to the public for the service rendered.
d. A &B

104. What is the degree of diligence a passenger should observe to avoid injury to
himself?
A. Good father of a family
B. Extra-ordinary diligence
 C. Ordinary diligence*
D. Not bound to observe

105. What article shall apply in case of death of a passenger caused by the breach of
contract by a common carrier?
A. Art. 2206 of the New Civil Code*
B. Art. 2208 of the New Civil Code
C. Art. 206 of the New Civil Code
D. Art. 1206 of the New Civil Code

106. The _____may on its own motion or on petition of any interested party, after due
hearing, cancel the certificate of public convenience granted to any common carrier that
repeatedly fails to comply his or its duty to observe extraordinary diligence.
A. Public Service Commission
B. Common Carrier
C. MARINA
D. LTFRB

107. In all matters not regulated by the Civil Code, the rights and obligations of
common carriers shall be governed by_____.
A. Code of Commerce
B. Common Carrier’s law
C. Civil Service Law
D. Common Carrier’s Act

108. The following stipulations are unjust except:

A. Stipulations limiting common carrier's liability must be in writing
B. Goods are transported at the risk of owner
C. Common carrier need not observe any diligence
D. Goods are transported at the risk of the shipper

109. A natural disaster shall not free the carrier if he acted:

A. Negligently
B. Responsibly
C. Diligently
D. in defiance of a law

110. If the shipper merely contributed to the loss of the goods, its liability for damages:
A. Remains
B. May be equitably reduced
C. May not be equitably reduced
D. May be enforced

111. If an order is issued by a competent public authority and the goods are seized or
destroyed as a result, the common carrier should__:
 A. Have a reduced liability
B. Not be responsible.
C Partly responsible
D. wholly responsible

112. If goods are lost, destroyed, deteriorated, common carriers are:

A. Presumed to have been at fault and to pay expenses
B. Presumed to have been at fault and have acted negligently
C. Presumed to be discharged from liability
D. Both a and c

113. One of the duties of common carriers is to:

A. Observe ordinary diligence in the vigilance over the goods
B. Observe extraordinary diligence in the vigilance over the goods
C. Observe ordinary vigilance over the goods
D. All of the above

114. This are persons, corporations, firms or associations engaged in the business of
carrying or transporting passenger, goods or both, by land, water or air. For compensation
offering services to the public.
A. Private carriers
B. Common Carriers
C. Both Private and Common Carriers
D. None of the Above

115. The extraordinary liability of the common carrier continues to be operative in the
following except:
A. During the time the goods are stores in a warehouse of the carrier at the place of
destination.
B. During the time the goods are stores in a warehouse of the carrier at the
place of departure.
C. Consignee has been advised of the arrival of the goods
D. Consignee had reasonable opportunity to remove them or otherwise dispose of
them

116. The following are requisites of a valid stipulation between the common carrier
and the shipper or owner limiting the liability of the former for the loss, destruction, or
deterioration of the goods to a degree less than extraordinary diligence, except:
A. In writing, signed by the shipper or owner
B. Supported by a valuable consideration other than the service rendered by
the common carrier.
C. Consented thereto by the shipper, owner, and common carrier.
D. Reasonable, just, and not contrary to public policy.

117. Pochi Trans is a common carrier which transports goods from Bulacan to Baguio.
Its usual route is Route 86. Pochi and Mingkoy signed a valid stipulation limiting the
 liablity of Pochi in case of loss of goods. One day, an accident occurred in Route 86
causing a heavy traffic. To avoid delay, Pochitrans took route B. If the goods are loss will
the limitation apply?
A. Yes, because Pochitrans took the route B to avoid delay.
B. Yes, A stipulation between the common carrier and the shipper or owner
limiting the liability of the former for the loss, destruction, or deterioration of the
goods to a degree less than extraordinary diligence is valid.
C. No, the contract limiting the liability of common carrier does not apply if
the common carrier changes the usual route.
D. No, the contract limiting the liability of the common carrier does not apply
in case of fortuitous event.

118. Mingkoy and Pochi Trans entered a contract fixing the sum that may be recovered
by Mingkoy in case of loss, deterioration, and destruction. Which is one of the requisite
for the contract to be valid?
A. Reasonable and just under specific circumstances.
B. Reasonable and unjust under any circumstances.
C. Fairly and freely agreed upon by the parties.
D. Fairly and partly agreed upon by the parties.

119. Common carriers are responsible for the loss, destruction, or deterioration of the
goods, except:
A. Fire caused by forest fires
B. Fire caused by faulty electrical wirings
C. Fire caused by lightning
D. None of the above.

120. Mudkip Trans is a common carrier which transports goods from the Philippines to
Japan. If the goods transported suffered loss, deterioration, and destruction, which
country’s law will govern the liability of Mudkip Trans?
A. Japan
B. Philippines
C. Where the Common carrier is registered
D. Either B or C

121. The driver of Squirtle Bus allowed Budoy to ride the bus for free. They executed
a stipulation limiting Squirtle’s liability in case of accident. The kind driver allowed
Budoy to drive the bus. An accident occurred and it injured Budoy. Can the liability of
the bus be limited?
a. No, because any stipulation limiting the liability of a common carrier is void.
b. No. The stipulation is valid, but not for wilful acts or gross negligence.
c. Yes. When a passenger is carried gratuitously, a stipulation limiting the
common carrier’s liability for negligence is valid. *
d. Yes. It was Budoy’s fault that caused him to be injured.
122. Pikachu Trans, after a careful selection process, employed Aberey as one of their
drivers. Pikachu Trans ordered Aberey to take the Magsaysay route and not the Kennon
road because the latter is not safe. Aberey took Kennon Road. The bus fell into a ravine.
Can Pikachu Trans be held liable?
a. No, they exercised diligence of a good father in selecting their employees.
b. No, Aberey acted beyond the authority given by Pikachu.
c. Yes, Common carrier are liable for the negligence of their employees.
d. Yes, common carrier are liable because Aberey did not exercise extraordinary
diligence.

123. A common carrier is bound to carry the passengers safely as far as human care
and foresight can provide, using __________ of very cautious persons, with due regard
for all the circumstances.
B. Utmost Diligence