Guide Questions for Transportation Law

1. What are Public Utilities?

1. Public Utility is any business or service engaged in the regularly supplying to the
public with some commodity or service of public consequence such as water,
electricity, gas, transportation and telephone. To constitute a public utility, the facility
must be necessary for the maintenance of life and occupation of the residents.

2. What is Public Service?

1. Public Service is any person who 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 purpose, any
common carrier, railroad, street railway, traction railway, subway, motor vehicle,
either for freight or passenger or both, with or without fixed route, and whatevery
may be its classification, freight or carrier service, of any class, express service,
steamboat or steamship lines, pontines, ferries and water craft, engaged in the
transportation of passengers or freight or both, shipyard, marine repair shop, wharf
or dock, ice plant, ice-refrigeration plant, canal, irrigation system, gas, electric light,
heat and power, water supply, power petroleum, sewerage system, wire or wireless
communications systems, wire or wireless broadcasting systems, and other similar
public service.
2. Stated otherwise, public service is:
i. Any person who may own, operate, manage or control in the Philippines any
of the following:
1. Common carrier
2. Railroad
3. Railway
a. Street
b. Traction
4. Subway
5. Motor vehicle
a. Either for freight or passenger or both;
b. With or without fixed route
c. Whatever may be its classification
6. Freight or carrier service
a. Of any class,
i. Express service
ii. Steamboat or steamship line
iii. Pontines
iv. Ferries and Water craft
1. Engaged in the transporation of passengers or
freight or both
7. Shipyard
8. Marine Repair Shop
9. Wharf or dock
10. Ice plant, ice-refrigeration plant
11. Canal
12. Irrigation system
13. Gas
14. Electric light
15. Heat and power
16. Water supply
17. Power petroleum
18. Sewerage system
19. Wire or wireless communications systems
20. Wire or wireless broadcasting stations
21. Other similar public services.
ii. The said person is for hire or compensation;
iii. With general or limited clientele;
iv. Whether permanent, occasional, or accidental;
v. Done for general business purposes.
3. What is the criterion to constitute the use as a Public Use?
1. The true criterion by which to judge of the character of the use is whether the public
may enjoy it by right or only by permission." (Iloilo Ice and Cold Storage Co. vs. Public
Utility Board)

4. What is “operation” of Public Utilities?

5. What is “ownership” of Public Utilities?
1. Ownership is a relation in law wherein a certain thing pertaining to one person is
completely subjected to his will in everything not prohibited by law or the
concurrence with the rights of another. (Tatad vs Garcia)

6. Is ownership necessary to operate Public Utilities?

1. No. The right to operate a public utility may exist independently and separately from
the ownership of the facilities thereof. (Tatad vs Garcia)

7. What is a franchise?
1. Franchise is a privilege granted by the Congress. However, the term franchise
includes not only authorizations issuing directly from Congress in the form of a
statute, but also those granted by administrative agencies to which the power to grant
franchises has been delegated by Congress.

8. What is a legislative franchise?

9. What is a Certificate of Public Convenience and Necessity?
10. Is Public Convenience synonymous with Public Convenience and Necessity?
11. Is franchise necessary before operation?
12. What is a contract of carriage?
1. A contract of carriage is any person or association of persons who obligate themselves
to transport persons or goods from one place to another at a fixed price.

13. What is a common carrier?

1. Article 1732 of the NCC provides that a common carrier is any person, corporation,
firm or association engaged in the business of carrying or transporting passengers or
goods or both, by land, water, or air, offering their services to the public.

14. What are the elements of a common carrier?

1. The following are the elements of a common carrier:
i. It is a person, corporation, firm or association;
ii. It is engaged in a business of carrying or transporting;
iii. It transports passengers or goods or both;
iv. That it is transported by land, water, or air;
v. It is done for compensation; and
vi. It offers its services to the public.

15. What is a Private Carrier?

1. A private carrier is one who, without making the activity a vocation, or without
holding himself or itself out to the public as ready to act for all who may desire his or
its services, undertakes, by special agreement in particular instance only, to transport
goods or passengers or both from one place to another either gratuitously or for hire.

16. Differentiate Common Carrier from Private Carrier.

1. Governing Law:
i. Common Carrier is governed by the provisions of the Civil Code on common
carriers, the Public Service Act, and other special laws relating to
transportation law.
ii. Private Carrier is governed by the provisions of ordinary contracts in the Civil
Code.
2. Diligence Required =
i. Common Carrier, extraordinary diligence.
ii. Private Carrier, ordinary diligence, that is, the diligence of a good father of a
family.
 3. Burden of Proof =
17. What is the criterion in the determining that it is a common carrier?