ROAD TRANS PORTATION LAW Contents Chapter I General provisions Chapter II Supervision Chapter III Automotive-car traffic business Chapter IV Light vehicle traffic business Chapter V Automotive-car road and automotive-car road business Chapter VI Government managed automotive-car traffic business and automotive-car road business Chapter VII Use of private automotive-cars Chapter VIII Vehicles Chapter IX Penal provisions Supplementary provisions Road Transportation Law Chapter I General Provisions

(The object of the Law) Article 1. The present Law has for its object the maintenance of order in, as well as the promotion of healthy and sound development of, road transportation, and the securing of proper use and adjustment of the various means of conveyance for road transportation, so that the benefit to the public is thereby assured.

(Definitions) Article 2. The term "road transportation business" as hereinafter employed in the present Law shall include automotive-car traffic business and light vehicle traffic business. Automotive-car traffic business is the business in which a person or porsons undertake to carry or convey passengers goods, or articles by means of an automotive-car or cars at the request of or at the instance, of another person or persons;and light vehicle traffic business is the business in which a person or persons undertakes to carry or convey passengers or goods, or articles by means of a light vehicle or vehicles at the request of, or at the instance of another person or persons. The term "vehicle" or "vehicles" as hereinafter employed in the present Law shall include an automotive-car or automotive-cars and a light vehicle or vehicles. An automotive-car is a means of conveyance driven, run, or operated by or with motive power over or along the road, and designated to be as such by Order;and a light vehicle is a means of conveyance pulled, drawn, or pushed by human or animal powser over or along the road, and designated to be as uch by Order. The term "road" shall signify such public thoroughfare or highway as is designated as is designated as "road" under the Road Law, an automotive-car road and the place for the traffic of the general public. The term "automotive-car road business" as employed in the present Law shall signify the trade or business that undertakes the work of laying or constructing a road for the exclusive use of automotivecars for the traffic of the general public. The term "automotive-car road" as employed in the present Act shall mean the road or passage exclusively for the use of automotive-cars for the purpose of general traffic (hereinafter designated as "general automotive-car road" ) as well as the road or passage for automotive-cars exclusively for business purposes by automotive-car traffic traders (hereinafter designated as "exclusive automotive-car road" ).

Chapter II Supervision

(Administrative Office) Article 3. For the purpose of achieving the object prescribed in Article 1, the Administrative Office shall, in pursuance of the provisions of the present Law, exercise necessary supervision on matters of road transportation.

Article 4. The term"competent Minister as employed in the present Law shall signify the Minister for for Home Affairs and the Minister of Transportation with reference to matters of automotive-car road business;in all other matters the said term shall shignify the Minister of Transportation unless special provision or provisions are made otherwise in the present Law. At each seat of Local Government Office of Tokyo Metropolis, "Fu" and Prefectures, and also at the cities of Sapporo, Hakodate, Muroran, Obihiro, Kushiro Kitami and Asahikawa, Road Transportation Supervision Office shall be stationed, which shall exersice part of the authority invested in the Government Administrative Office by virtue of the provisions of the present Law over matters arising within the jurisdiction of Tokyo Metropolis, "Fu" or Prefecture, or the district in Hokkaido as is provided for by Cabinet Order. In addition to the matters provided in the preceding paragraph, certain specified Road Transportation Supervision Office of the Road Transportation Supervision Offices mentioned in the preceding paragraph may, in pursuance of the provisions of Cabinet Order, shall supervise or manage part of the matters invested in the Government Administrative Office by virtue of the present Law, in or extending over two or more of the specified areas in Tokyo Metropolis, "Fu" or Prefecture, or the areas in Hokkaido as provided for by Cabinet Order. Other matters of importance or necessity in connection with Road Transportation Supervision Office than provided for in either of the two preceding paragraphs shall be provided for by Cabinet Order. Part of the authority of the competent Minister in pursuance of the provisions of the present Law, may, in accordance with the provisions of Cabinet Order, be delegated or commissioned to a lower or minor Administrative Office as is specified hereinafter in each of the following items: 1. The authority provided in Chapter III and Chapter VII shall be delegated to Director of Road Transportation Supervision Office; 2. The authority provided in Chapter V shall be delegated to Director of Road Transportation Supervision Office as well as to Governor of Tokyo Metropolis, Hokkaido, "Fu" or Prefecture. The Administration Office that exercises the authority prescribed in Chapter IV, Chapter V and Chapter VIII shall be determined in manners hereinafter set forth unless Government Ordinance shall provide otherwise: 1. All matters pertaining to freight traffic business by light vehicle as well as matters connected with automotive-vehicles provided for in Chapter VIII may be delegated to Director of Road Transportation Supervision Office; 2. All matters pertaining to passenger traffic business by light vehicle as well as matters connected with passenger traffic by light vehicle provided for in Chapter VIII may be delegated to the headman of a ward of Tokyo Metropolis, to the mayor of a city or to the headman of a town or village; 3. Matters pertaining to entry its or use of lands for the purpose of constructing automotive-car road may be delegated to Governor of Tokyo Metropolis, Hokkaido "Fu" or Prefecture.

(Licencing conditions) Article 5. Licenses, permissions or approvals may be granted or awarded conditionally. The conditions prescribed in the preceding paragraph may be altered when necessity for public welfare demands such alteration.

(Investigations and inspections) Article 6. The Administrative Office concerned, when it deems necessary, may demand of the road transportation trader, the person who owns or operates vehicles, the automotive-car road business trader, as well as the organization organized by such persons, notices, reports, the submission of documents in writing concerning the conditions of his business or undertaking, ownership or operation of vehicles. The Administrative Office concerned shall have power, if it deems necessary, to dispatch the official concerned to the place of business or other place to inspect business conditions, the state of ownership of vehicles or operation of the same, the books and documents and other articles, and such official or officials may make inquiries of the matters hereinbefore mentioned. Under the circumstances prescribed in the preceding paragraph, such official concerned shall carry with him a certificate showing his official capacity.

(Inspector of vehicles) Article 7. The Administrative Office concerned shall have power to appoint Vehicle Inspectors from among the Government Officials in its Department or Section, who shall assist the execution of authority prescribed in Chapter VIII. Such Vehicle Inspector shall have power, when it is deemed necessary, to enter a garage or the place where vehicles are or are likely to be located and there he may inspect vehicles or make inquiries thereof. Under the circustances prescribed in the preceding paragraph, such Vehicle Inspector concerned shall carry with him a certificate showing his official capacity.

(Road Transporation Commission) Article 8. For the just and proper application of the present Law, the Road Transportation Commission shall be established. The Road Transportation Commission shall consist of the Central Road Transportation Commission and the Local Road Transportation Commissions, and Local Commission shall be organized and stationed in each of the district or area as is provided for in Paragraph 3 of Article 4. The Central Road Transportation Commission shall consist of nine (9) members of commission or comissioners, while the Local Road Transportation Commission shall Consist of an indefinite or indeterminate number of commissioners. The Road Transportation Commission shall have its chairman who shall be elected from among the members of the commission by mutual vote. The chairman of each Local Road Transportation Commission shall ex officio be a commissioner or member of the Central Road Transportation Commission;the commissioners or members of the Local Road Transportation Commission shall be appointed by the Prime Minister on the nomination of the Minister of Transportation who in turn shall rely on the recommendations of the Governor of Tokyo Metropolis, Hokkaido, "Fu" or Prefecture for the respective districts or areas. The number of persons to be recommended by the Governor of Tokyo Metropolis, Hokkaido, "Fu" or Prefecture prescribed in the preceding paragraph shall be two (2) in the case of Tokyo metropolis, "Fu" and Prefecture, while in the case of Hokkaido the number shall be indefinite or indeterminate. No government or public official shall be eligible to membership of the Road Transportation Commission for a period of one (1) year after his resignation of or retirement from his office as government or public official. The term of office of the member of the Road Transportation Commission shall be three (3) years;the term of office of the commissioner who filled vacancy shall be the remaining term of office of the predecessor. Incumbency, either present or past, of a commissioner shall not make such commissioner ineligible to the office of commissioner. Except for the cases where the approval of the Road Transportation Commission and the assent of the Minister of Transportation have been secured no member of the Road Transportation Commission shall engage in any sort of office or work receiving compensation therefor or conduct any kind of business or business under taking, nor shall he in any sort of trade or pursuit whatsoever that aims at gaining engage any pecuniary profit. When a member of the Road Transportation Commission is deeply interested in a road transportation business which is actually being operated, or when he is considered to be in a competitive or rival position. with other person or persons in road transportation business, the Prime Minister shall, if the Road Transportation commission concerned has passed a resolution of dismissing him from office, release the said member of the Road Transportation Commission of his office on the proposal of the Minister of Transportation. When a commissioner or a member of the Road Transportation Commission neglects his duties or routine of his office, or has become incapable of transacting or attending to his duties on account of his mental or physical inability or otherwise, or when a commissioner is found to have dishonestly or dishonerably conducted in the discharge of his duties, and if the Road Transportation Commission whose membership such commissioner assumes passes a resolution of the dismissal or removal of such commissioner from office, the Prime Minister shall, on the proposal of the Minister of Transportation, dismiss such commissioner from his office. The amount of compensation or emolument to be paid to each commissioner, and the amount of travelling allowances shall be fixed by Order. The Government Administrative Office shall refer to the Road Transportation Commission all matters of importance hereinafter enumerated and shall have its opinions or suggestions thereon and shall make decision on the matter or matters in deference to its opinions and suggestions: 1. Matters of drafting a bill which revises the present Law;the drafting of Cabinet Order in pursuance of the present Law;establishment of the Order in pursuance of the present Law or the amendment thereof; 2. Matters establishing the standard for the granting of automotive-car traffic business or the alteration thereof; 3. Matters of granting a licence of automotive-car traffic business; 4. Matters of suspending automotive-car traffic business or the cancellation of licence; 5. Matters of giving approval to the consultation made in pursuance of Paragraph 1 of Article 50 with reference to automotive-car traffic business. The Commission shall have power to make recommendations, counsels, or suggestions to the Administrative Office concerned on matters relating to the improvement of road transportation. The Commission shall have power, if it deems necessary for the execution of its duties, to ask Public Offices, traders, or organization of traders in road transportation business or other persons concerned or connected with the said business, for their reports, informations data or materials. The Commission shall have power, if it deems necessary for the execution of its duties, to entrust Public Offices, traders, or organization of traders in road transportation, or person or persons well experienced or learned in matters of road transportation, with matters for investigation or inquiry. The Commission shall, when or if it is necessary for the execution of its duties as prescribed in Paragraph 13 of the present Article, request the appearance of the party or witnesses concerned from whom opinions may be obtained or reports or informations may be submitted thereto. Besides the provisions prescribed in this Law, the matters governing the structure and the working of the Road Transportation Commission and other matters of importance connected therewith shall be provided for by Cabinet Order.

(Petition) Article 9. Any person who is dissatisfied with the dealing or decision made or rendered by the Administrative Office in pursuance of the provisions of the present Law or the Order issued thereunder, may file a petition with the Office concerned.

Chapter III Automotive-car Traffic Business

(Categories of automotive-car traffic business) Article 10. The automotive-car traffic business shall be classified into the following categories: 1. General automotive-car traffic business (automotive-car traffic business other than special automotive-car traffic business): (1) Automotive-bus traffic business; (2) Reserve automotive passenger-car traffic business; (3) Automotive-truck traffic business for sundry consignors; (4) Reserve automotive-truck traffic business. 2. Special automotive-car traffic business (automotive-car traffic business to meet the demand of specific persons for the transportation of specific passengers or specific goods or articles): (1) Automotive-bus traffic business; (2) Reserve automotive-passenger-car traffic business; (3) Automotive-truck traffic business for sundry consignors; (4) Reserve automotive-truck traffic business.

(Licencing) Article 11. Any person who undertakes to engage in the automotive-car traffic business shall secure licence from the competent Minister submitting to the said Minister the plans of his business in compliance with the provisions of the Order. Such licence as prescribed in the preceding paragraph shall be secured for each and every category of traffic business prescribed in the preceding Article.

(Standard for granting licence) Article 12. The competent Minister shall prepare a standard proper and appropriate for the granting of licence for automotive-car traffic business, and shall publish the same to the public. The competent Minister shall not, except in the cases hereinafter set forth, deny or refuse to grant licence to any persons who shall make application for licence conforming to the standard provided for in the preceding paragraph: 1. When the applicant for a licence has been sentenced to a penal servitude or an imprisonment of a term or one year or more, and tow years'time has not elapsed from the date of the completion of his servitude or imprisonment or from the date he is exempted from further servitude orimprisonment; 2. When the applicant's licence for automotivetraffic business has been forfeited and two years'period has not elapsed from the date of such forfeiture; 3. When the applicant of licence for automotive-car traffic business has been declared as bankrupt, and is not yet rehabilitated; 4. When the applicant for licence is a corporation, and any of the officers of the corporation comes under any of the three foregoing items; 5. When the applicant for licence is financially unsound with no public credit, and consequently the management of the business is deemed extremely difficult; 6. When there is any fear that the maintenance of the transportation business in question is likely to lead to a competition in the trade concerned that may impede public welfare.

(Carrying of goods as accessory business) Article 13. The automotive bus traffic trader may, in accordance with the provisions of Order, transport goods as accessory to the business of carrying passengers.

(Rates and charges) Article 14. The rates and charges of automotive-car traffic business shall in accordance with the provisions of Order, be sanctioned by the competent Minister.

(Transportation agreement) Article 15. The automotive-truck traffic trader shall, in accordance with the provisions of Order, prepare a transportation agreement and secure sanction thereof from the competent Minister. Such transportation agreement shall, at least, have provisions with regard to rates and charges, and other matters with respect to transportation conditions, and the responsibilities of the trader as such.

(Publication of transportation conditions and agreement) Article 16. Rates and charges and other matters relating to transportation condition and transportation agreement, in accordance with the provisions of Order, shall be published.

(Inauguration of traffic business) Article 17. Any person who was granted licence for automotive-car traffic business by the competent Minister shall inaugurate his business within the period designated by the said Minister. Any person who undertakes to construct an automotive-car road for the exclusive use of automotive-cars and engage in the automotive-car traffic trade over and along the said road shall, in compliance with the provisions of Order, make application for the execution of construction work, setting forth the manner or method of construction, within the period designated by the competent Minister. When the applicant is prevented from commencing transportation business within the period prescribed in Paragraph 1 of the present Article or when the applicant is unable to make applicantion for the said sanction prescribed in the preceding paragraph, due to natural calamities, act of God or other unavoidable circumstances, the applicant may make a renewed application to the competent Minister for the extension of such period.

(Prohibition of actions contrary to public welfare) Article 18. Any person engaged in the automotive-car traffic business shall not neglect to operate vehicles regularly at the scheduled time in conformity to the plans of undertaking;nor shall he demand any unreasonable transportation conditions;nor shall he conduct in any way that is likely to cause detriment to the interest of the general public. No automotive-car traffic trader shall engage in any sort of competition which is likely to prevent healthy and sound development of the automotive-car traffic business. If there is any action in violation of the provisions of the preceding two paragraphs, the competent Minister may enjoin such action, or he may issue order to take proper measures necessary for the securing of public welfare.

(Duties to accept transportation) Article 19. The automotive-car traffic trader shall not refuse transportation except in the cases hereinafter prescribed: 1. When the passenger or consignor, in connection with the transportation concerned, has made special demand on the trader; 2. When the transportation concerned is in violation of legal provisions, public order, or good morals; 3. When the trader is prevented from transporting due to natural calamities, act of God, or other unavoidable circumstances; 4. Besides the provisions of the preceding items, when there are proper and justifiable reasons found in the provisions of Order.

(Priority of goods traffic) Article 20. The order of transportation of goods or articles shall follow the order of application, except in the cases where there is proper reason or ground for doing otherwise.

(Alterations in the plans of business) Article 21. Any person engaged in the business of automotive-car traffic shall, in accordance with the provisions of Order, obtain sanction from the competent Minister for any change, alteration, or revision of his plans of undertaking, transportation agreement, or the method or manner of construction of automotive-car road for the exclusive use of automotive-cars.

(Transportation and accounting) Article 22. Matters connected with the operation of automotive-cars, adjustment of traffic equipment in the anutotmotive-car traffic business, other important matters related to transportation as well as rationalization of administration and mangement, arrangement and preservation of books and documents connected with the accounting of the trade shall be prescribed by Order.

(Agreement regarding transportation) Article 23. The automotive-car traffic trader shall have the sanction of the competent Minister for any agreement or contract with other traffic traders, or forwading agents, for connecting service or joint management or for making alterations thereof.

(Orders for improved service) Article 24. The competent Minister may, if he deems it necessary for the welfare of the general public, have power to issue orders to automotive-car traffic traders concerning the following matters: 1. Alteration, modification, revision or change in the plans of undertaking, rates and charges, clauses in the transportation agreement, and the method or manner of the construction of the road for the exclusive use of automotive-cars; 2. The Consummation of agreement for common use of traffic equipments, connecting service, joint management or other agreement relating to transportation with other traffic traders or forwarding agents; 3. To have the loss insured in connection with the transportation of passengers, goods or articles; 4. Besides the matters mentioned in the preceding items, improvement of the management and operation of the traffic business. If there is disagreement among the parties concerned as to the manner of execution of the agreement, or as to the amount to pay or to receive among the parties as shall happen in the cases provided under the second item of the present Article, the competent Minister shall, on the application of the party or parties concerned, arbitrate in the decision of the matters involved. The person who is dissatisfied with the amount of money so arbitrated by the decision as prescribed in the preceding paragraph may bring an action in a court of law against the other party as to the increase or decrease of the amount of money within six months of the date on which the party so suing come to have the knowledge of the existence of the arbitration;provided that the person shall be barred from bringing an action in the court of law after the lapse of three years from the date of the arbitration.

(Exception from the Law relating to Prohibition of Private Monopoly and Fair Dealings) Article 25. The provision of the Law No.54 of 1947 shall have no application to the rightful act in pursuance of the sanction granted as is provided for in Article 23 of the present Law as well as to the lawful act in pursuance of the order as is provided for under the first item of the preceding Article (subject to the limitation that exemption goes no further than the gareement for connecting service and joint management with other traffic traders or with forwarding agents.)

(Orders relating to transportation) Article 26. The competent Minister when it is necessary for securing the transportation of passengers, goods or articles, shall have power to issue orders to automotive-car traffic traders to carrycertaindesignated passengers, goods or articles, by fixing transportation terms thereof;or he may restrict or prohibit the transportation of certain passengers, goods or articles. The competent Minister, when it is necessary for securing the transportation of passengers, goods or articles, shall have power to issue orders to automotive-car traffic traders to carry passengers, goods or articles in the order he shall designate.

(The use of Licensee's name;renting of business and automotive-cars;placing management in trust) Article 27. The licensee's name as automotive-car traffic trader shall in no case be used nor shall it be allowed to be used, by another for the purpose of managing automotive-car traffic business. The automotive-car traffic business shall in no case be rented or hired out. In all matters connected with the commission of management to others or the accepting of management from others of automotive-car traffic business, and the hiring out of the automotive-cars, permission shall be obtained from the competent Minister. Necessary matters relating to the commission or the trust of management prescribed in the preceding paragraph shall be provided for by Order.

(Transfer of the traffic business and other matters concerned) Article 28. No transfer or assignment of automotive-car traffic business shall have effect unless such transfer or assignment shall be sanctioned by the competent Minister. No resolution of a company engaged in the automotive-car traffic business for a merger or dissolution at its general meeting of stockholders, nor the assent of the entire members of the company to a merger or dissolution, shall have any effect unless sanction shall be secured from the competent Minister. By the merger of companies engaged in automotive-car traffic business, the company that shall exist after the merger or the company that shall be created by virtue of such merger shall succeed to all rights and liabilities accompanying the licences thereof. When the automotive-car traffic trader dies, his lawful heir shall inherit all rights and liabilities accompanying the licence thereof. No automotive-car traffic trader shall, without obtaining permission from the competent Minister, suspend, abandon, or discontinue his business, either in part or in total.

(Automotive-bus traffic business within the area of local bodees) Article 29. When the business area of the automotive bus traffic business coincides with or is within the limits of any ward of Tokyo Metropolis, or coincides with or is within the city limits of the city designated as such by Caibnet Order, the competent Minister shall refer the matter to the Governor of Tokyo Metropolis or the Mayor concerned in the disposition of the matter in pursuance of Articles 11, 14, 21, 23 and Article 27, Paragraph 3, or Paragraph 1, 2 or 5 of the preceding Article.

(Suspention of business;cancellation of licence) Article 30. When a person engaged in the automotive-car traffic business falls under any of the following items, the competent Minister suspend part or whole of the transportation business of such person, or cancel or revoke part or whole of the licence thereto: 1. When he has violated any of the provisions of the present Law, or concerted himself contrary to the provisions of Order or administrative oder issued to him by virtue of the present Law, or violated or infringed the conditions attached to his licence, permission, or sanction granted to him; 2. When he has failed to carry out, without any reasonable cause, the matters for which licence, permission, or sanction was granted; 3. When besides the cases mentioned in the preceding two items, he has acted against the welfare of the general public; 4. When he is unfit for the continuance of his business, due to his unsound and unreliable management of business or to unusually unsound financial condition of his undertaking.

(Invalidation of licence) Article 31. In the cases hereinafter set forth, the licence for conducting automotive-car traffic business shall be forfeited and become invalidated: 1. When the licensee fails to commence the work of transportation within the period prescribed in Paragraph 1 of Article 17; 2. When the licensee fails to file an application for the sanction prescribed in Paragraph 2 of Article 17 within the period mentioned in the same paragraph; 3. When his application filed in accordance with the provisions of Paragraph 25 of Article 17 was denied or rejected; 4. When his application for discontinuance of business was granted with approval.

(Special automotive-car traffic business) Article 32. Articles 15-17 inclusive, Articles 19, 20, and 21 (excluding the provisions concerning the plans of undertaking), Paragraph 5 of Article 28, and Article 31 shall not apply to the cases of special automotive-car traffic business. The special automotive-car traffic trader shall, without delay, report to the competent Minister regarding his suspension or discontinuance of his business. In this case, the licence shall be invalidated simultaneously with the report of such discontinuance of business.

Chapter IV Light Vehicle Traffic Business

(Registration of business) Article 33. Any person who undertakes to engage in the light vehicle traffic business shall, in pursuance of the provisions of Order, submit an application therefor to the Administrative Office, together with his plans of undertaking. The same procedure is required of him when he seeks to make alterations in the plans of undertaking.

Article 34. Any person engaged in the light vehicle traffic business shall make report to the Administrative Office without delay, in conformity with the provisions of Order in the cases hereinafter set forth: 1. When he has made agreements with other traffic traders for connecting service or for joint management, or other agreements connected with transportation, or when he has made alterations in the agreements aforementioned; 2. When he has taken over the business or other persons; 3. When there was merger or dissolution of his company; 4. When there was succession to business by heir; 5. When the business was suspended or discontinued.

(Order for suspending business) Article 35. The Administrative Office shall have power, in pursuance of the provisions of Order, to suspend the business of light vehicle traffic traders who have acted against the welfare of the general public.

(Mutatis mutandis application) Article 36. Articles 18 and 24-26 inclusive shall apply mutatis mutandis to the light vehicle traffic business. In this case, however, the term "competent Minister" in these provisions shall read "Administrative Office."

Chapter V Automotive-car Road and Automotive-car Road Business

(Licencing) Article 37. Any person who undertakes to engage in the automotive-car road business shall, in consonance with the provisions of Order, obtain a licence from the competent Minister, submitting to the said Minister his plans of undertaking.

(Tolls of general automotive-car road) Article 38. The toll of the general automotive-car road shall be sanctioned by the competent Minister in consonance with the provisions of Order.

(Construction of general automotive-car road) Article 39. Any person who has obtained licence for the automotive-car road business, when there is necessity of constructing a general automotive-car road, shall apply to the competent Minister for sanction for the execution of construction work, submitting his plans of construction, within the period designated by the said Minister. When the trader is prevented from making such application within the period prescribed in the preceding paragraph due to natural calamities, act of God or other unavoidable circumstances, the competent Minister may, on a renewed application, extend the period thereof.

Article 40. Any person who has procured licence for the execution of the construction work of an automotive-car road shall set to work and complete such work within the period designated by the competent Minister. For the extension of the peroid prescribed in the preceding paragraph, Paragraph 2 of the preceding Article shall apply mutatis mutandis.

(Entry into and use of abutting lands for construction work) Article 41. When necessity demands or when it is unavoidable for the construction of an automotive-car road, the person engaged in the automotive-car road business as well as automotive-car traffic business with the permission of the Administrative Office, make entry into the lands abutting on the road under construction, and make use of such abutting lands on the road for yard where tools and materials for construction of the road may be kept or stored. In all cases, any entry into or use of lands as prescribed in the preceding paragraph shall be notified previously to the occupants thereof, unless it is impossible due to unavoidable circumstances. Any loss or damage inflicted on the occupant due to such entry into or use of land as prescribed in Paragraph 1, shall be compensated or made good for to the occupant without delay after such entry or use by the trader concerned. The amount of compensation to be paid in pursuance of the provision of the preceding paragraph shall be the amount of loss or damage likely to be incurred under ordinary circumstances by the entry or use thereof as prescribed in Paragraph 1. In case there is disagreement between the parties concerned with regard to the amount of compensation prescribed in Paragraph 3, the Administrative Office, on the application of the party or parties concerned, shall arbitrate therein. The party who is dissatisfied with the amount of compensation so arbitrated in pursuance of the provision of the preceding paragraph may, within six months of the date on which he obtained the knowledge of the existence of such arbitration, bring an action in a court of law for the alteration of the amount. He shall, however, be barred from bringing an action to the court of law after the lapse of three years'period from the date of arbitration. In the action prescribed in the preceding paragraph, either the automotive-car traffic road trader or the person who is to receive compensation shall be the defendant.

(Commencement of service) Article 42. No automotive-car road shall be used or opened for service unless sanction has been obtained from the competent Minister for such use or service of the road.

(Obligation for joint use of general automotive-car road) Article 43. Any automotive-car road trader shall not, except in the cases where he is justified by virtue of the provisions of Order, refuse the joint use of general automotive-car road.

(Alteration of plans of undertaking and method of construction) Article 44. The automotive-car road trader who undertakes to make alteration in his plans of undertaking or the method of construction of the general automotive-car road shall secure sanction from the competent Minister.

(Structure, equipments, and management of automotive-car road) Article 45. The matters regulating the structure equipments, and management of the automotive-car road shall be prescribed by Order.

(Order for making improvements on automotive-car road) Article 46. The competent Minister shall have power to issue orders hereinafter set forth to automotive-car road trader or traders when the said Minister deems it necessary for securing public welfare: 1. An order to alter the plans of undertaking, tolls of automotive-car road and the method of construction thereof; 2. An order for the improvement on, or with regard to, the general automotive-car road or attached equipments thereof.

(Invalidation of licence) Article 47. The licence of an automotive-car road trader shall become ineffective or invalid in the cases hereinafter set forth: 1. When the licensee fails to make an application within the period prescribed in Paragraph 1 of Article 39 on matters prescribed in the same Paragraph; 2. When the application made in pursuance of Paragraph 1 of Article 39 is rejected; 3. When the discontinuance of the business is granted with permission.

(Mutatis mutandis application of provisions) Article 48. Article 16 (exclusively the portion that has reference to transportation conditions), Article 22 (exclusively the portion that has reference to accounting) and Articles 27, 28 and 30 shall apply to automotive-car road business mutatis mutandis.

(Construction of traffic ways across or near automotive-car road) Article 49. Against the undertaking by the Government or by persons licenced by the Government for constructing or public thoroughfare in accordance with the provisions of the Road Act, automotive-car road, bridge, ditch or moat, canal, railway, tramway, cableway, etc., in close juxtaposition of close to, across, under, over or above the automotive-car road already in existence, no automotive car road trader or automotive-car traffic trader shall have right to interpose objection to such construction aforementioned. In the cases set forth in the preceding paragraph, when the competent Minister deems it necessary for the welfare of the general public, the said Minister shall have power to issue orders to the automotive-car road trader or automotive-car traffic trader for joint use of his equipments or for alteration thereto. When there is any disagreement among the parties concerned in connection with the manner or method of executing the matters prescribed in the preceding two paragraphs or as to the costs allocated to the parties concerned, the competent Minister, on application of the parties concerned, shall arbitrate in the matter. In reference to the compensation for the damage or loss suffered by the automotive-car road trader or by the automotive-car traffic trader, the provisions of the present paragraph shall apply. In the cases of Paragraphs 1 and 2, the provisions of Paragraphs 3 and 4 of Article 41 shall apply;and in the cases of the preceding paragraph, the provisions of Paragraphs 6 and 7 of Article 41 apply mutatis mutandis.

Chapter VI Government Managed Automotive-car traffic Business and Government Managed Automotive-car Road Business

(Management of business) Article 50. When the Government undertakes to engage in the automotive-car traffic business or the automotive-car road business, the Government Office concerned shall cosult with the competent Minister thereabout. To the automotive-car traffic business and to the automotive-car road business managed and operated by the Government, the provisions of Articles 6, 11, 12, 14, 15, 17, 18, 21, 22 (excusively the part that has reference to accounting), 23-28 inclusive, 30, 31, Paragraph 2 of Article 32, Articles 37-40 inclusive, 42, 44, 46, 47 and 48 (exclusive of the part wherein the provisions of Article 16 apply mutatis mutandis) shall have no application.

(Indemnities) Article 51. When the automotive-car traffic trader is reduced to such a state that he shall be unable to continue his business over the portion of his road concurrent with the Government route, or when his revenue has remarkably declined, due to the operation and management of automotive-car traffic service by the Government over or along the same road or route as that of his automotive-car traffic business, the Government may, in accordance with the provisions of Cabinet Order, compensate the loss which such automotive-car traffic trader has sustained. The same shall also apply to the cases where the remaining portion of the traffic has become impossible of further continuation of business to the automotive-car traffic trader.

Chapter VII Automotive-car for Private Use

(Prohibition of carrying for compensation;restriction on renting) Article 52. All automotive-cars, not belonging to the category of automotive-car traffic business (hereinafter designated as automotive-car for private use) shall not be operated for the purpose of transportation with compensation, fee or charges. The automotive-car for private use, without the permission from the competent Minister, shall not be let for hire.

(Restriction and prohibition on operation of automotive-car for private use) Article 53. The competent Minister shall have power to restrict or prohibit the use of the automotivecar for private use (excluding the automotive passenger-car of which the carrying capacity is fixed by Order) when it is considered that improper use is made of the automotive-car viewed from the object of the present Law.

Chapter VIII Vehicles

(Inspection of vehicles) Article 54. All automotive-cars as well as light vehicles employed for the conveyance of passengers (hereinafter designated as the light vehicles for passenger traffic) shall, in conformity with the provisions of Order, be subject to the inspection of the Administrative Office as regards whether or not they are constructed and equipped so as to be capable of being operated with safety, efficiency, and reliability. The Administrative Office, when it recognizes that the vehicles is adapted for operation in consequence of inspection, shall, except the cases provided for by Order, confer on the applicant a certificate of vehicle inspection, and it shall also designate the vehicle number for the vehicle. The vehicle as is prescribed in Paragraph 1 of the present Article shall not be run or operated unless its certificate of vehicle inspection shall be duly placed and the vehicle number is clearly shown in pursuance of the provisions of Order. The period in which the certificate of vehicle inspection and the designated vehicle number is effective shall be prescribed by Order. The matters in connection with the renewal, re-bestowal, and restoration of the certificate of vehicle inspection shall be prescribed by Order.

(Adjustment of vehicles) Article 55. All automotive-cars as well as all light vehicles for passenger traffic shall be adjusted in pursuance of Order. The Administrative Office shall have power, if it deems that the vehicle prescribed in the preceding paragraph is unfit for use or operation, to issue an order to make necessary adjustment thereto. The Administrative Office, if the person so ordered fails to comply with the order issued in pursuance of the provisions of the preceding paragraph, shall have power to restrict or prohibit the use of his vehicle, or it may order the surrender or restoration of the certificate of vehicle inspection to the said Administrative Office, or it may revoke the designated vehicle number.

(Registration of automotive-cars) Article 56. Any person who owns an automotive-car shall make registration of his automotive-car at the Administrative Office. The Administrative Office, if it is satisfied that the applicant for registration is entitled to the lawful ownership of the said automotive-car in compliance with the provision of the preceding paragraph, shall make entry in the Book of Registration in pursuance of Order, and shall confer on the applicant the Certificate of Automotive-car Registration. Any person who will drive an automotive-car shall carry on his person the Certificate of Automotive-car Registration of the said automotive-car. In addition to the provisions prescribed in the, present Article, matters connected with the renewal, re-bestowal, and surrender or restoration of the Certificate of Automotive-car Registration shall be prescribed by Order.

Chapter IX Penal Provisions

Article 57. Any person who has conducted his business in violation of the provisions of Article 11 or 37 shall be punished with a fine of not more than ten thousand (\10,000) yen. The violations of Paragraph 1 or 2 of Article 27 (including the violations of the cases of Article 48 where application mutatis mutandis is made) shall likewise be punishable.

Article 58. Any person who has fallen under any of the provisions hereinafter prescribed shall be punished with a fine of not more than five thousand (\5,000) yen: 1. Any person who has transferred the business or any person who had the business transferred to him without the sanction as is prescribed in Paragraph 1 of Article 28 (including the case where application mutatis mutandis is made in Article 48); 2. Any person who has violated the administrative order of suspension of business prescribed by Article 30 (including the case where application mutatis mutandis is made in Article 48); 3. Any person who has violated the provisions of Article 42 or Paragraph 1 of Article 56.

Article 59. Any person who falls under any of the provisions hereinafter prescribed shall be punished with a fine of not more than three thousand (\3,000) yen, or with detention or penalty: 1. Any person who has violated any of the conditions appended to by virtue of the provisions of Article 5, or the administrative order issued thereunder; 2. Any person who has neglected to make notice or report or submission of documents as prescribed in Paragraph 1 of Article 6, or any person who has submitted documents in which false entries are made; 3. Any person who has refused, avoided or evaded the inspection, or any person who made no statement or made false statement to the inquiries regarding the matters as prescribed in Paragraph 2 of Article 6 or Paragraph 2 of Article 7; 4. Any person who has violated any of the provisions of Article 14, Paragraph 1 of Article 15, Articles 19-21 inclusive, Article 23, Paragraph 3 of Article 27 (including the cases where application mutatis mutandis is made in Article 48), Paragraph 5 of Article 28 (including the cases where application mutatis mutandis is made in Article 48), Articles 33, 38, 43, 44 or Article 52; 5. Any person who has violated any of the government order issued under Paragraph 3 of Article 18 (including the cases where application mutatis mutandis is made in Article 36), Paragraph 1 of Article 24 (including the cases where application mutatis mutandis is made in Article 36), Article 26 (including the cases where application mutatis mutandis is made in Article 36), Articles 35, 46, Paragraph 3 of Article 49 or Article 53; 6. Any person who has violated the order issued under the provisions of Paragraph 5 of Article 54 or Paragraph 4 of Article 56; 7. Any person who has violated the provision of Paragraph 3 of Article 56.

Article 60. Any person who has fallen under any of the provisions hereinafter set forth shall be punished by with a penal servitude for a term of not more than three (3) months or with a fine of not more than one thousand (\1,000) yen: 1. Any person who has violated the provision of Paragraph 3 of Article 54; 2. Any person who has violated the administrative order issued under the provision of Paragraph 3 of Article 55. Any person who has violated, by mistake, the provisions of Item 1 of the preceding paragraph shall be punished with detention or with a penalty.

Article 61. When a violation is committed against the provisions in the Articles from 57 to 60 inclusive (excluding the provision of Item 7 of Article 59) by a representative a company, by the agent or employee or operator or employed by a company by a natural person in connection with the business of such company or natural person, as well as in connection with the vehicle owned or operated by a company or by a natural person not only the violator who has actually perpetrated the violation but also such company or natural person shall likewise be subjected to the punishment of fines and penalties as are prescribed under the respective Articles.

Article 62. Any person who has destroyed or demolished the automotive-car road or any person who has broken, destroyed, demolished, or removed any of the signs or signals or other equipments for the safety of opertation of automotive-cars, or or in any manner has created danger to automotive-car traffic shall be punished, with a penal servitude for a term of not more than five (5) years. Attempts to commit the punishable act prescribed in the preceding paragraph shall also be punished.

Article 63. Any person who has caused to overturn an automotive-car for automotive-bus traffic business in which a human being or human beings is or are present, or cuased damage or destruction to such automotive-car shall be punished with a penal servitude for a term of not more than ten (10) years. If the person so committing the crime prescribed in the preceding paragraph has injured another person, he shall be punished with a penal servitude for a term of not less than one (1) year, and if such person has killed or caused the death of another person, he shall be punished with life imprisonment or with a penal servitude for a term of not less than three (3) years. Any attempt to commit the crime prescribed in Paragraph 1 shall also be punished.

Article 64. When, in consequence of the commission of the crime prescribed in Article 62, the automotive-car is upset or overturned or destroyed, the person so committing the said crime shall be punished in the manner as is prescribed in the preceding Article.

Article 65. Any person who has committed the crime prescribed in Paragraph 1 of Article 62 or Paragraph 1 of Article 63 by mistake shall be punished with a fine of not more than three hundred (\300) yen;and if the said crime is committed by a person engaged in the automotive-bus traffic business the said person shall be punished with imprisonment for a term of not more than one (1) year, or with a fine of not more than five hundred (\500) yen.

Article 66. Any person who falls under any of the provisions hereinafter prescribed shall be punished with a fine of not more than five hundred (\500) yen: 1. Any person who prevents or interfers with or obstructs the execution of the duties of the driver or operator of an automotive-car for automotive-bus traffic business; 2. Any person who throws or hurls a stone or some such materials at any automotive-car for automotive-bus traffic business.

Article 67. When a road transportation trader or an automotive-car road trader falls under any of the provisions hereinafter set forth he shall be punished with a penalty of not more than three thousand (\3,000) yen: 1. When such person fails to make public notice or advertisement as is prescribed in Article 16 (including the cases where application mutatis mutandis is made in Article 38) or when he makes false notice or advertisement of the matter; 2. When a person fails to secure permission in the execution of the matter for which the Order prescribes the necessity of securing permission in Article 22 (including the cases where application mutatis mutandis is made in Article 48) and in Article 45; 3. When a person has neglected to give notice or make report as prescribed by orders issued under the provisions of Article 22 (including the cases where application mutatis mutandis is made in Article 48) and Article 45 or has made false notice or report thereof; 4. When a person has violated the provisions of Paragraph 2 of Article 32 or of Article 34.

Supplementary Provisions:

Article 1. The provisions of Articles 1 to 3, Article 4 Paragraphs 2 to 4 inclusive and Paragraph 6 (exclusively the portion that refers to Chapter VIII) of Article 4, Article 6 (exclusively the portion that refers to ownership and use of vehicles), Articles 7 and 9, Articles 54 to 56 inclusive, Article 59, Items 2, 3, 6 and 7 Article 60 and Article 61 of the present Act, as well as the provisions of Paragraph 1 of Article 3 exclusively the portion that refers to the Ministry for Home Affairs Ordinance No.23 of 1933 concerning the Automotive Vehicles Regulations) and Article 4 of the Supplementary Provisions, shall take effect as from January 1, 1948. The date on which the provision of Article 8 takes effect shall be designated by Cabinet Order within forty-five (45) days from the date of the promulgation of the present Law. The provisions of Article 8, Paragraph 13, Item 1 which refer to rates and fares, however, shall take effect on the day immediately following the day whereon the Price Control Ordinance shall invalid. All other provisions not specified in the preceding two paragraphs shall take effect on March 15, 1948;the portion of the provision in Article 29 wherein administrative disposition of matters is provided in pursuance of Article 14 shall take effect on the day immediately following the day whereon the Price Control Ordinance shall be invalidated.

Article 2. The Law Regulating Motor Traffic Business shall be abrogated.

Article 3. All administrative orders, procedures or proceedings that have been made under the fomer Law, Orders issued thereunder, or by virtue of the Ministry for Home Affairs Ordinance No.23 of 1933 concerning the Automotive Vehicles Regulations, shall be deemed to have been made, in pursuance of the provisions of Order, under the present Act, provided that there are provisions in the present Law corresponding there to. To any person who has been engaged in the light vehicle traffic business when the provisions of Article 33 of the present Law take effect, it shall be sufficient if he files notice, in accordance with the provisions of the said Article, within three months after the said Article has taken effect.

Article 4. The Motor Traffic Business Association and the Federation of Motor Traffic Business Associations shall be dissolved.

Article 5. With matters connected with the liquidation and taxation of the Motor Traffic Business Association and the Federation of Motor Traffic Business Associations, with regard to the Motor Traffic Business Foundation which is in existence at the time when the provisions of Article 2 of the present Supplementary Provisions take effect and in regard of the application of the penal provisions for the acts done or committed prior to the time when the provisions of the said Article of the present Law take effect, the former Law shall still retain its effect.

Article 6. Part of the Law Adjusting Land Traffic Business shall be revised as follows: In Article 1, "motor-bus traffic business" shall read "general automotive-bus traffic business operating on the fixed route." In Article 9, "Motor Traffic Business Law" shall read "Road Transportation Law."

Article 7. Part of the Government Railway Special Account Law shall be revised as follows: In Article 8, Paragraph 1, Item 3, "motor-bus traffic business or freight.... operated in the specified business area" shall be deleted.

Article 8. Part of the Law of the Central Financing Bank of Commercial and Industrial Association shall be revised as follows: In Article 1, Paragraph 1, "Federation of Trading Associations, Motor Traffic Business Association and the Federation of Motor Traffic Business Associations" shall read "and the Federation of Trading Associations." In Article 3, Paragraph 1, "The Federation of Motor Traffic Business Associations" shall be deleted, and in Paragraphs 3 and 4, "The Federation of Trading Associations or the Federation of Motor Traffic Business Associations" shall read "or the Federation of Trading Associations." In Article 7, Paragraph 1, "The Federation of Trading Associations, Motor Traffic Business Association or the Federation of Motor Traffic Business Associations" shall read "or the Federation of Trading Associations." In the proviso of Article 27, Paragraph 1, "The Trading Association and the Motor Traffic Business Association" shall read "and the trading Association." In Article 28, Paragraph 1, Item 6 and in Article 29, Paragraph 1, Item 3, "The Motor, Traffic Business Association, the Federation of Motor Traffic Business Associations" shall be deleted.

Article 9. In Article 19, Item 7 of the Registration Tax Law, "Motor Traffic Business Association, the Federation of Motor Traffic Business Assoications" and "Motor Traffic Business Law" shall be deleted. With regard to the matter of taxation on the Motor Traffic Business Association as well as the Federation of Motor Traffic Business Assoications which are now being liquidated, previous procedures shall be observed.

Article 10. The term of office of the commissioners of members of the Road Transportation Commission who shall assume office as such with the enforcement of the provisions of Article 8 may be curtailed to not more than two (2) years in pursuance of the provisions of Cabinet Order.