[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, 10, and 11; See also 2017 Bar Exam: Information, Discussions, Tips, Questions and Results]
Onassis Shipping, Inc. (Onassis) 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 Asia (Go-Green), an NGO affiliated with Greenpeace, entered into a contract with Onassis whereby Go-Green would operate with its own crew the MN Dolphin, an ocean-going passenger vessel of Onassis.
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 Onassis and Go-Green to the passengers of the MN Dolphin. Explain briefly your answer. (3%)