LEGAL ASPECT

Chapter 6

Law of Carriers and Inns

Common Carrier

 Common carriers are persons, corporations, firms or association engaged in the business

of carrying or transporting passengers or goods or both, by land, water, or air, for

compensation, offering their services to the public.

 A common carrier in common law countries is a person or company that transport goods

or people for any person or company and is responsible for any possible loss of the goods

during transport. A common carrier offer its services to the general public under license

or authority provided by a regulatory body, which has usually been granted “ministerial

authority” by the legislation that created it.

 A common carrier also called a public carrier is distinguished from a contract carrier,

which is a carrier that transport goods for only a certain number of clients and that can

refuse to transport goods for anyone else, and from a private carrier. A common carrier

holds itself out to provide service to the general public without discrimination for the

“public convenience and necessity.” A common carrier must further demonstrate to the

regulator that it is “fit, willing, and able” to provide those services for which it is granted

authority.

 Common carriers typically transport persons or goods according to defined and published

routes, time schedules, and rate tables upon the approval of regulators. Public airlines,

railroads, bus lines, taxicab companies, phone companies, internet service providers,

cruise ships, motor carriers, and other freight companies generally operate as common

carriers. Under US law, an ocean freight forwarder cannot act as a common carrier.
Vigilance Over Goods

Responsibility of common carriers (According to the civil code of the Philippines)

 Common carriers are responsible for the loss, destruction, or deterioration of the goods

unless the same is due to any of the following causes only:

(1) Flood, storm, earthquake, lightning, or other natural disaster or calamity;

(2) Act of the public enemy in war, whether international or civil;

(3) Act or omission of the shipper or owner of the goods;

(4) The character of the goods or defects in the packing or the containers’

(5) Order or act of competent public authority

Responsibility of The Common Carrier. The extraordinary responsibility of the common

carrier lasts from the time the goods are unconditionally placed in the possession of, and received

by the carrier for transportation until the same are delivered, actually or constructively, by the

carrier to consignee, or to the person who has a right to receive them, without prejudice to the

provisions of article 1738.

Duty of Common Carriers. The common carrier’s duty to observe extraordinary diligence over

the goods remains in full force and effect even when they are temporarily unloaded or stored in

transit unless the shipper or owner has made use of the right of stoppage in transit.

Liability of Common Carriers. The extraordinary liability of the common carrier continues to

be operative even during the time the goods are stored in a warehouse of the carrier at the place

of destination until the consignee has been advised of the arrival of the goods and has had

reasonable opportunity thereafter to remove them or otherwise dispose of them.

Safety of Passengers
 Article 1755. A common carrier is bound to carry the passengers safely as far as human

care and foresight can provide, using the utmost diligence of very cautious persons, with

due regard for all the circumstances.

 Article 1756. In case of death of or injuries to passengers, common carriers are presumed

to have been at fault or to have acted negligently, unless they prove that they observed

extraordinary diligence as prescribed in articles 1733 and 1755.

 Article 1757. The responsibility of a common carrier for the safety of passengers as

required in articles 1733 and 1755 cannot be dispensed with or lessened by stipulation, by

the posting of notices, by statements on tickets, or otherwise.

 Article 1758. When a passenger is carried gratuitously, a stipulation limiting the common

carrier’s liability for negligence is valid, but not for willful acts or gross negligence. The

reduction of fare does not justify any limitation of the common carrier’s liability.

 Article 1759. Common carriers are liable for the death of or injuries to passengers

through the negligence or willful acts of the former’s employees, although such

employees may have acted beyond the scope of their authority or in violation of the

orders of the common carriers.

 Article 1760. The common carrier’s responsibility prescribed in the preceding article

cannot be eliminated or limited by stipulation, by the posting of notices, by statements on

the tickets, or otherwise.

 Article 1761. The passenger must observe the diligence of a good father of a family to

avoid injury to himself.

  Article 1762. The contributory negligence of the passenger does not bar recovery of

damages for his death or injuries if the proximate cause thereof is the negligence of the

common carrier, but the number of damages shall be equitably reduced.

 Article 1763. A common carrier is responsible for injuries suffered by a passenger on

account of the willful acts or negligence of other passengers or of strangers if the

common carrier’s employees through the exercise of the diligence of a good father of a

family could have prevented or stopped the act or omission.

INNS

 An inn is an establishment that provides temporary accommodation, usually along with

food and drinks. Inns are smaller than hotels, and are closer in size to bed and breakfasts,

although inns are often slightly larger. Guests are allocated private rooms and food

options will usually include breakfast and dinner.

Hotel vs. Inn

 A hotel is a building where people can pay for the lodge, have a meal, and other services.

Hotels have rooms with beds and some useful furniture like chairs, TV, telephone, small

table, and some modern facilities like air conditions, computer, and climate controller.

Some rooms are attached with a bathroom where visitors can bathe and get refreshed.

There are some additional features like mini-bars, gaming, swimming pools, child-care

center, gym, spas, conference hall, and service of social gatherings.

 Food is offered by some hotels, but it has to be paid for. There is a different section for

food in hotels, which provides many different types of cuisines like Italian, Chinese,

Lebanese, Thai, Continental, and more.

  The cost and expenses of a hotel usually depend of the type of service. It is rated

depending upon the range of service and the luxury of the hotel. The rating system is

indicated by stars, the hotel is affiliated with stars on these rating parameters. A hotel can

be affiliated with 3 starts, 5 starts, or 7 stars. But AAA (American Automobile

Association) uses diamonds instead of stars to affiliate hotels.

 An inn is generally a building located along a highway or countryside where people can

seek lodging and food. Inns were the first commercial buildings for lodging and

boarding. Inns were established at the time of Romans, to help travelers in lodging, food,

and drinks including alcohol. Not only do they used to provide service for the travelers,

but horses were provided with stable and fodder. Until now, aside from providing

lodging, it also provides good services to customers like drinks and food. Inns do not

have separate restaurants instead it has a small section for food and drink. It does not

provide a large food variety unlike hotels.

Innkeepers Liability

 An innkeeper has an obligation to reasonably protect guests from injury while at the

inn. This duty of reasonable care mandates vigilance in the protection of the guests from

foreseeable risks. The innkeeper must protect guests from injury at the hands of other

guests from assaults and negligent acts of his or her own employees. The obligation to

protect guests is not merely by warning them but must be coupled with a policing of the

premises.

 An innkeeper must take reasonable care regarding the safety of the guests’ property

and must warn guests of any hidden dangers that can be reasonably foreseen. This

duty includes making inspections to ascertain that the premises are safe. The innkeeper is
 liable for any injuries arising from his or her failure to comply with fire regulations.

Reasonably safe means of ingress and egress must be provided.

 An innkeeper is required to use reasonable care to keep the hallways, passageways,

and stairways well lighted and free from obstructions or hazards. An innkeeper who

furnishes appliances or furniture for the convenience of guests must maintain them in a

reasonably safe condition. Similar duties are required in connection with plumbing

apparatus and swimming pools.

 Reasonable care must be exercised by an innkeeper in the operation and

maintenance of an elevator, which means that the elevator must be inspected and

repaired to keep it in a safe condition. The obligation to maintain the premises in a

reasonably safe condition applies to windows and screens that are defective or insecurely

fastened. Failure to have protective window grills or to guard air shafts located on a roof

does not, however, necessarily constitute NEGLIGENCE.

 The prevalent COMMON LAW view makes an innkeeper liable as insurer for all

PERSONAL PROPERTY brought by the guests to the inn that is lost through the

innkeeper’s fault. There is no liability, however, if the guest assumes the entire and

exclusive care, control, and possession of his or her property. State laws have been

enacted with respect to the liability of innkeepers for the property of their guests.

Generally, the statutes modify the common law by limiting the innkeeper’s liability to a

specified amount and by requiring a deposit of valuables. Guest must have notice of any

limitations of the innkeeper’s liability.

 Innkeeper Compensation. An innkeeper is permitted to charge reasonable compensation

only, and must ordinarily fulfill his or her entire obligation before being entitled to the
 compensation. In the event that a guest does not pay, the innkeeper has a lien on guest’s

property. Such a lien ordinarily extends to all property brought by the guest to the inn and

generally continues until the debt is satisfied unless the innkeeper voluntarily surrenders

the goods. The innkeeper may remove a guest upon refusal to pay his or her bill but

cannot, however, use excessive force.

Chapter 7

Duties of Travel Agents

Travel Agent

 A travel agent is a person whose job is to arrange trave for end clients (individual,

groups, corporations) on behalf of suppliers (hotels, airlines, car rentals, cruise lines,

railways, travel insurance, package tours).

 His/her task is to simplify the travel planning process for their customers in addition to

providing consultation services and entire travel packages.

 An Agent can be self-employed, work for an independent travel agency, or be part of a

Travel Agency Consortia. Travel agents may specialize in leisure, business, and/or niche

travel markets.

 They may be generalists or specialists (i.e., specialize in cruises, adventure travel,

conventions, and meetings).

 Using a Travel Agent is beneficial for customers who plan multi-destination and/or

international trips. Booking though an agent saves time and headaches. The experience

and consultancy come from ‘one hand’ – the agent who combines all the travel
 component and services for the client/traveler. Often agents also dispose of unpublished

deals and activities which is beneficial for the traveler.

What does a travel agent do?

 A travel agent’s role is to help people plan, choose, and arrange their holiday. They will

usually work to a budget set out by whoever is planning the holiday. They also offer

advice and opinions on where to go and local tourist attractions, events, and customs.

Typical duties include:

 Promoting and marketing the business

 Dealing with customer queries and complaints

 Providing advice about visas or passports

 Recruiting training, and supervising staff

 Managing budgets

 Maintaining statistical and financial records

 Planning

 Selling holidays and insurance

 Meeting profit or sales targets

 Preparing promotional materials and displays.

Typical employers of travel agents

 Tour operators

 Package holiday operators

 Cruise lines
  Independent travel agents

 Most graduates enter the profession as junior counter staff (travel agency

clerk/consultant), moving into managerial positions after having gained several years’

experience.

Key skill for travel agents

 Commercially aware

 Good interpersonal skills

 Numerical ability

 Verbal communication skills

There are six types of agents that can benefit the business of tour operators and activity

providers.

1. Independent Travel Agents. Both offline and online travel agents want to customize the

travel itineraries for their clients in order to include tours and activities that interest them.

In addition, independent agents can earn a commission between 15 and 25 percent for

booking your activities.

2. Online Travel Agents. Online travel agents rely on the convenience and ease of the

internet to create packages for their clients. Today, many travelers want to book travel

packages that include not only transportation and accommodation but also excursions,

tours, and activities.

3. Visitor Information Centers. Travelers rely on these facilities to gain knowledge about

local activities. Let the visitor information center in your region that they can quickly and
 easily book your tours and activities online, and they will be more apt to recommend your

products.

4. Hotel and Concierge Services. The role of the concierge has changed due to the rise in

popularity of mobile technology, but the concierge is still relied upon to provide

personalized, local recommendations.

5. Inbound Tour Operators. Inbound tour operators are considered experts in a given

destination, and they are aware of the best tours and activities in any region. They

recommend these excursions to their travel clients, so it’s important that you work with

these agents in order to promote your products. They will be more apt to recommend

reliable, exciting tours that are easy to reserve.

6. Global Distribution Systems. Online and offline agents will utilize global distribution

systems in order to automatically reserve available tours and activities in a particular

destination.

TRAVEL LAW

Travel agents and their agencies are subject to “travel law.”

 Travel law – a law that applies federal, state, common law, and international laws to

regulate the workings of the travel industry. Every state has general consumer disclosure

and fraud statutes, as well as refund policy requirements to address businesses that

arrange or sell travel services. Some states have gone so far as to create specific laws for

the regulation, registration, and licensing for sellers of travel.

Responsibilities of Travel Agents

  Travel agents are fiduciaries (representatives) of their customers. These agents are

responsible for several general duties when arranging travel plans, including:

 Making and confirming reservations (including itinerary changes and delivery of

tickets);

 Disclosing the identity of the supplier or tour operator responsible for the

services;

 The agent may also vouch for the supplier’s reliability or provide a warranty for

services;

 Investigating the availability of travel services (like canceled flights or

overbooked hotels);

 Conveying needed information and provides needed travel documentation;

 Providing information on health and safety hazards;

 Advising of any travel insurance; and

 Informing customers of any restrictions on transportation tickets.

Legal Duties and Obligations of Travel Agents

 The state courts have ruled that because of the special relationship between travel agents

and consumers, the standard of care for travel agents is higher and they have special

duties and obligations owed to their consumers. Travel agents are subject to the following

duties and obligations:

 Duty to Warn the Consumer. A travel agent has a duty to reveal any negative

information they know about a certain destination that the traveler is traveling to.

For example, if the town or area is an area of crime.

  Duty to Investigate and Disclose. Travel agents have a duty to investigate travel

plan and be knowledgeable about the area the consumer is going to and whether

certain conditions would affect the consumer’s travel plan.

 Duty to Inform. Travel agents have a duty to inform clients about critical travel

information. Travel agents must inform clients about limitations on ticket

changes, the types of travel documentation needed to travel, whether a certain

country has certain requirements, and the availability of travel insurance.

 Duty to Make Reservations. If the consumer requests reservations to be made,

then the travel agent has a duty to make those reservations and follow up to

confirm the reservations.

 Duty to Confirm Reservations. When a travel agent makes travel reservations

and travel schedules, the travel agent has to confirm that the reservation went

through and is ready for the consumer.

Liability of Travel Agents

 Travel agents are liable to customers for violations of general duties, fraudulent

misrepresentations, and violations of applicable state regulations. Common issues

travelers have against travel agents include:

 Injuries;

 Delays;

 Cancellations;

 Discrimination;

 Lost, stolen, or damaged baggage;

  Violation of consumer protection law; and/or

 Deceptive port charges.

COMMON INSURANCES

 The following are two common insurances carried by a travel agent or travel agency:

(1) Professional Liability Insurance. Protects the travel agent for any errors that

occurred in business activities or services or is sued by a consumer for not

providing the service that the consumer was promised in the contract.

(2) General Liability Insurance. General liability insurance is insurance travel

agents and agencies carry if they have an office where they meet with the client to

protect against claims related to injuries such as a “slip and fall” incident.

Facing problems with travel agents? In case of problems, an experienced business lawyer

should be able to handle the problem.

Types of Events

 Conference – Usually general sessions and face-to-face groups with high participation to

plan, get facts, solve organization and member problems.

 Convention – Any gathering for the purpose of exchanging or disseminating views,

technical expertise, experiences, knowledge, skills, information, policies or any other

related activity. It does not include corporate meetings or events where participation is

limited to company personnel only.

 Congress – More commonly used European designation for convention and mainly

international in scope.
  Seminar – Usually one face-to-face group sharing experiences in a particular field under

the guidance of an expert discussion leader. Attendance generally are 30 persons or less.

 Symposium – A panel discussion by experts in a given field before a large audience;

some audience participation but appreciably less than a forum.

 Lecture – A formal presentation by an expert sometimes followed by question-and-

answer period.

 Colloquium – A program in which the participants determine the matter to be discussed.

The leaders would then construct the program around the most frequent problems;

usually attended by 35 persons or less with equal emphasis on instruction and discussion.

 Forum – A panel discussion taking opposite sides of an issue by experts in a given field

with liberal opportunity for audience participation.

 Workshop – Usually a general session and face-to-face groups of participants training

each other to gain new knowledge, skills or insights into problems; attendance generally

no more than 30-35 participants.

 Trade show – Is an event held to bring together members of a particular industry to

display, demonstrate, and discuss their latest products and services. Major trade shows

usually take place in convention centers in larger cities and last several days. Local trade

shows may be held at a local arena or hotel and allow businesses in the area to connect

with prospects.

Constitutional Provisions on Labor

The Law

 Section 3. The State shall afford full protection to labor, local and overseas, organized

and unorganized, and promote full employment and equality of employment

 opportunities for all. It shall guarantee the rights of all workers to self-organization

collective bargaining and negotiations, and peaceful concerted activities, including the

rights to strike in accordance with law. They shall be entitled to security of tenure,

humane conditions of work, and a living wage. They shall also participate in policy and

decision-making process affecting their rights and benefits as may be provided by law.

 The State shall promote the principle of shared responsibility between workers and

employers and the preferential use of voluntary modes in settling disputes, including

conciliation, and shall enforce their mutual compliance therewith to foster industrial

peace.

 The State shall regulate the relations between workers and employers recognizing the

rights of labor to its just share in the fruits of production and the rights of enterprises to

reasonable returns of investments, and to expansion and growth.

 Section 14. The State shall protect working women by providing safe healthful working

conditions, taking into account their maternal functions, and such facilities.

 Section 15. The State shall respect the role of independent people’s nations to enable the

people to pursue and protect.

 Section 16. The right of the people and their organizations to effectively and reasonably

participate at all levels of social, political and economic decision-making shall not be

abridged.

Types of Employees

 Regular Employees

 Seasonal Employees

 Project Employees
 Probationary Employees

 Employees for the Fixed Term

 Overseas Filipino Workers

 Special Workers

a. Apprentices

b. Learners

c. Handicapped workers