1. "Frexy Ellyzza Villa" Company shipped 20,000 bags of soy beans through the S/S VJ Ortouste, owned and operated by Raymart Regla Shipping Lines, consigned to the Julie Pera Factory and insured by the Surety Insurance Co., against all risks. "Frexy Ellyzza Villa" Company hired the entire vessel, with the option to go north or south, loading, stowing and discharging at risk and expense. The owner and shipper agreed on a stipulation exempting the owner from liability for the negligence of its agents. When the cargo was delivered to the consignee, there were shortages amounting to P10,000.00. The insurance company paid for the damage and sought reimbursement from the Raymart Regla Shipping Lines as carrier. Is the carrier liable? SELECT THE CORRECT ANSWER FROM THE FOLLOWING AND EXPLAIN. The carrier is: (A) Liable, because the stipulation exempting its owner from liability for the negligence of its agent is against public policy. (B) Liable, because in case of loss, destruction or deterioration of goods common carriers are presumed at fault under Article 1735 of the Civil Code. (C) Not liable because it exercised due diligence in stowing the goods. (D) Not liable because it is not a common carrier and the parties to a contract, as such, may enter into a stipulation exempting the owner from liability for the negligence of its agents. 2. Frank Bacuac owns a ship M/V Neilmon Aguilar. He bareboat chartered the ship to Charlie Bestudio who appointed all its crew members from captain down to its last official-compliment. Charlie Bestudio then transported a shipment of 10,000 bags of sugar belonging to Jan Kurt Contad. Thru negligence of the ship captain, half of the sugar was damaged due to sea water. Since Charlie Bestudio is bankrupt, Jan Kurt Contad sued the captain and Frank Bacuac. Will the suit/case succeed? Justify your