Commercial Law, 2012 Bar — Question 46

MULTIPLE CHOICE

X owns a passenger jeepney covered by Certificate of Public Convenience. He allowed Y to use its Certificate of Convenience for a consideration. Y therefore was operating the passenger jeepney under the same Certificate of Public Convenience (Kabit System) under the name of X. The passenger jeepney met an accident. Who will be liable? A) Y, the one actually operating the jeepney, will be liable to the injured party. B) X will be the one liable to the injured party despite the fact that it is Y who is actually operating the jeepney, because while the Kabit System is tolerated, the public should not be inconvenienced by the arrangement. C) X will not be held liable if he can prove that he is not the owner anyinore. D) Public Policy dictates that the real owner, even not the registered one, will be held liable.

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