[Answer/discuss the question below, or see 2017 bar exam Mercantile Law Instructions; Also check the other 2017 Mercantile Law Questions:1, 2, 3, 4, 5, 6, 7, 8, 9, 11, and 12; See also 2017 Bar Exam: Information, Discussions, Tips, Questions and Results]
Wisconsin Transportation Co., Inc. (WTC) owned and operated an inter-island de luxe bus service plying the Manila-Batangas-Mindoro route. Three friends, namely: Aurelio, Jerome and Florencio rode on the same WTC bus from Manila bound for Mindoro. Aurelio purchased a ticket for himself. Jerome, 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. Florencio, 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 WTC’s liabilities, if any, in favor of Aurelio, Jerome and Florencio? Explain your answer. (4%)