SEATWORK

Answer the following. State your reasons with legal basis.

1. JAM Liner, Inc. (JLI) owned and operated a bus service plying the Manila-Batangas route.
Three friends, namely: Lloyd, Juan Miguel and Kyouske rode on the same JLI bus from
Manila bound for Batangas. Lloyd purchased a ticket for himself. Juan Miguel, being a
boyhood friend of the bus driver, was allowed a free ride by agreeing to sit during the trip on
a stool placed in the aisle. Kyouske, already penniless after spending all of his money on
beer the night before, just stole a ride in the bus by hiding in the on-board toilet of the bus.

During the trip, the bus collided with another bus coming from the opposite direction. The
three friends all suffered serious physical injuries.

What are JLI's liabilities, if any, in favor of Lloyd, Juan Miguel and Kyouske? Explain your
answer with legal basis.

2. Canlas Shipping, Inc. (CSI) operated passenger vessels and cargo trucks, and offered its
services to the general public. In line with its vision and mission to protect the environment,
Go-Green De Pedro (Go-Green), an NGO affiliated with Greenpeace, entered into a contract
with CSI whereby Go-Green would operate with its own crew the MN Dolphin, an ocean-
going passenger vessel of CSI.

While on its way to Palawan carrying Go-Green's invited guests who were international and
local observers desirous of checking certain environmental concerns in the area, the MN
Dolphin encountered high waves and strong winds caused by a typhoon in the West
Philippine Sea. The rough seas led to serious physical injuries to some of the guests.

Discuss the liabilities of CSI and Go-Green to the passengers of the M/V Dolphin. Explain
your answer with legal basis.