Aviation Law Final Exam

What is the power of eminent domain?

Government has the right to take private land within their jurisdiction for public use. Providing just compensation is needed.

What is the difference between a lease and a leaseback?

A lease permits someone to use and owners aircraft, whereas a leaseback is when a buyer purchases from a seller then leases it back to him

What is a discretionary function? What other kind of exercise of judgment is there? Distinguish

A discretionary function is an exercise of judgement in the nature of making government policy. Planning or policy making activities don't subject the government to liability even if it caused the accident, only negligent operational decision making may expose government to liability

You are flying a private aircraft from Salt Lake City, Utah to Los Angeles, California, under Visual Flight Rules (VFR). Over the Mojave Desert, you contact Los Angeles Center and request radar flight following to the Camarillo Airport. Center assigns you a transponder code with instructions to "squawk ident" and a moment later the pleasant sounding controller advises you: "Radar contact 3 miles north of the Mojave Airport. We had a report that you may have entered restricted airspace, so please give us a call at 213-666-1234 when you get on the ground." What will you reply? Why?

Acknowledge the communication as you are required to respond to all ATC communications

What is an exculpatory contract?

An agreement between the aircraft or airport operator and a participant in an aviation operation by which the participant agrees not to sue the operator of the aircraft or airport if the participant is killed or injured during the operation.

How long is an airport operator bound by the restrictions of the grant agreement if federal airport development funds are accepted?

At least 20 year

You are arrested for an alcohol or drug-related traffic offense. Are you required to report the arrest to the FAA? If so, to whom and when?

Being arrested for DWI or a drug-related offense does not necessarily require you to notify the FAA immediately. FAA Regulation 14 CFR 61.15 requires that you provide the FAA with notification following certain criminal convictions. However, this regulation does not require that you remit a Letter of Notification based on an arrest alone.

What difference does it make to a business whether the IRS considers a worker an employee of the business or an independent contractor?

Businesses would not have to pay the added costs if the worker is considered an independent contractor (payroll taxes; workers comp insurance, unemployment comp insurance, etc.) In an attempt to avoid the responsibility of providing the mandatory insurance and withholding payroll taxes.

An airline passenger is stuck in traffic on her way to the airport. Fearing that she'll miss her flight, it occurs to her that maybe if the airline got an anonymous threat of a bomb on the flight, that would delay the departure long enough for her to catch the flight. What is her downside risk if she decides to make such a call? Explain.

Calling in a false report of a bomb on board an aircraft or an impending act of air piracy can be punished under 49 USC 46302

A few days later, you receive a phone call from a person who identifies himself as an FAA inspector and inquires: "I've been assigned to investigate a report that you flew through Restricted Area R-2505 over by Nellis Air Force Base without permission. What can you tell me about that?" What will you reply? Why?

Do not answer or disclose any historical facts without having a lawyer present. Do not give up any information.

After landing, you are tying down the aircraft when a person approaches and asks: "FAA. Are you the pilot of this aircraft?" What will you reply? What will you do? Why?

Do not self incriminate yourself. Find a professional method of deferring any questions until an attorney is present. Ask for credentials. Ask questions.

The inspector, who is now holding your documents, states: "I'm going to need to take these back to the office to make some copies. If you'll give me the address where you're staying, I'll have them returned to you in a couple of hours." What will you say? What will you do? Why?

Do not surrender the documents. State you are not surrendering them. Never give up your documents. Get attention from anyone in the vicinity so you have witnesses to testify that the inspector is trying to leave with your documents (do not touch an inspector)

Who is empowered to regulate the use of navigable airspace over the U.S.?

FAA

You hold an unexpired aviation medical certificate when you experience a health problem. Are you required to report a change in your health to the FAA?

Go through the FAA list of questions about health and the 14 specific disqualifying condition

Which agency of the U.S. government is responsible for the production of aeronautical charts?

Federal Aviation Administration (FAA)

The FAA suspended your certificate for 180 days for an FAR violation. Because you either failed to timely appeal the Order of Suspension or you have exhausted the appeal process and the FAA prevailed, the order is final. How long will the violation remain on your FAA record?

Forever

You receive a Notice of Proposed Certificate Action signed by an FAA attorney notifying you that the FAA believes you have violated one or more FARs and intends to suspend your certificate for 180 days. A form is attached that offers you the opportunity for an informal conference with the FAA attorney. What is the purpose of an informal conference?

Gives a chance to sit down with the FAA attorney and inspector, which will let them get a feel for your attitude and professionalism, and to be sure they understand what really happened.

While attempting to land a single-engine tailwheel airplane in a crosswind at a private uncontrolled airfield, you lost control and the aircraft "ground-looped." The right wingtip was damaged to the extent that it will have to be repaired or replaced before further flight. Are you required to notify any government agency of this event? Explain.

If no one was seriously injured, no. This is not an "accident" because damage to wingtips is excluded from the definition of "substantial damage" in NTSB Part 830. Nor is it one of the categories of "incident" requiring notice in that Part

What right does the holder of a security interest have that other creditors do not?

If the owner doesn't pay, a holder can take possession of a debt without judicial process

Can the FAA both require you to submit to reexamination and suspend your certificate for the same FAR violation? Why?

If the violation causes concerns about your qualifications, yes, the FAA can require you to submit to a reexamination and suspend your certificate.

If you have a condition that would disqualify you from acting as a pilot or required flight crewmember, are you required to surrender your aviation medical certificate to the FAA?

If what has happened to you since your medical was issued is one of the specific disqualifying conditions, a deterioration of your vision or hearing that puts you to serve as a pilot, then 14 CFR 61.53 mandates that you refrain from exercising pilot privileges. You don't have to tell anyone, you don't have to surrender your medical certificate, but you do have to stop acting as a pilot or other required flight crewmember.

You are operating a commercial skydiving school. Before jumping, each parachutist is required to sign an exculpatory contract drafted by the school's lawyer. Assume the contract to be legally valid in your state. A jumper experiences a main parachute malfunction and fails to follow the proper sequence of emergency procedures to deploy her reserve parachute, so that it becomes entangled with the malfunctioned main chute. Plummeting to earth at a high rate of speed, the jumper lands on a resident who is mowing his lawn, killing them both. Will the exculpatory contract protect the school against a lawsuit by the spouse of the deceased resident, claiming that the school was negligent in training and supervising the parachutist? Why?

No, If it was found that the company was grossly negligent an exculpatory contract may not protect the company from liability.

An air traffic controller is going through a bitter divorce. One dark and stormy night the controller realizes that among the aircraft he's controlling is a private jet owned by the man who stole the affection of his soon-to-be-former spouse, and that she is among the passengers in that aircraft. In a fit of anger and jealous rage, the controller deliberately gives the jet a series of vectors to the final approach course intended to confuse the crew's situational awareness before putting them on a course at an assigned altitude that causes the aircraft to collide with an obstacle. There are no survivors. Will the U.S. be held liable for the controller's actions?

No, because it was an intentional wrongful act by the employee. The employee is liable and the U.S. is not. Intentional tort, so not in scope of employment.

A catering truck rolls into a parked airliner, damaging the fuselage and pressure vessel to the extent that it will require a major repair before flight. Only the aircraft cleaning crew is aboard at the time of the collision. Is the airline required to notify any government agency of this occurrence? Explain.

No, because there is no intention to fly.

You manage an air charter company operating under 14 CFR Part 135. The premium for the liability portion of your aircraft insurance is one of the business's major expenses. Can the company drop that insurance and protect itself by having passengers sign an exculpatory contract instead? Why?

No, by law you must have liability insurance

Is the assumption of risk defense available to an airline to defend against lawsuits brought by injured passengers or the survivors of passengers killed in an airline crash? Why?

No, courts recognize the statistics that commercial airline travel is the safest means of travel, passengers are not chasing to incur additional "known risks" by flying

You are flying a large jet transport and experience a failure of one of the four turbine engines. No one is injured, and you are able to make a successful emergency landing. The failure was apparently caused by ingesting a large bird, which caused numerous turbine blades to break off and be blown out the engine exhaust. Are you required to notify any government agency of this occurrence? Explain.

No, damage was only to one engine so it is not an accident and if the turbine blades are blown out by the exhaust it is not an incident that requires a mandatory report.

Can the FAA both suspend your certificate and fine you as punishment for the same FAR violation? Why?

No, due to the constitutional prohibitions against double jeopardy. They cannot do both. However, it is typical for more than one FAR violation to occur, which would allow for a find and suspension.

You are operating a commercial civilian air combat maneuvering school. Because you have found the cost of aircraft liability insurance for these operations prohibitive, you are having each customer of your $500 "fighter pilot for a day" program sign an exculpatory contract. A sharp, mature, and robust local high school football star has received a gift certificate for your course as a seventeenth-birthday present from his parents. If he signs your exculpatory contract, will that protect you and your business from a lawsuit in the event that he is injured?

No, he is a minor

Should you wait until you find out whether the FAA is going to take some enforcement action against you before filing a NASA Aviation Safety Report? Why?

No, in order to benefit from the report it must be submitted within 10 days of the date of violation, or date when you became aware.

Can an airline use its tariffs to limit the airline's liability for passenger injury or death? Why?

No, only cargo since there is a policy to protect human health and safety. As long as the time is reasonable

You have inadvertently violated an FAR. If the FAA doesn't know about your violation, will it find out because you file an Aviation Safety Report with NASA?

No, the reports are confidential.

Is the United States liable for negligence of a FAA Designee, such as an AME, DAR, DER, DMR, IA, or ODA?

No, they are not federal employ

You are an aircraft owner and hold a commercial pilot certificate, but do not hold a Part 135 certificate. Can you legally rent or lease your aircraft to others and then allow them to hire you as their personal pilot to fly the aircraft for them in their travels? Explain.

No. You can do a wet lease where you lease an aircraft and provide a pilot

The FAA inspector then asks: "May I see your airman and medical certificates and the aircraft registration and airworthiness certificates, please?" What will you say? What will you do? Why?

Offer the documents as required by 61.51. Do not surrender them.

How can you tell whether a person is a domestic or an international passenger? Describe.

On the ticket, the origin is a different country then destination

Can statements you make at the informal conference later be used by the FAA as evidence against you?

Only if you tell a different story under oath.

You live near a local airport, and your neighbor has repeated expressed growing annoyance over the noise of aircraft flying over his home, especially at night. As darkness is falling, he tells you that he just received a green laser pointer he bought online, and tonight he's going to use it to teach those pilots a lesson. What will you do, and why?

Report the neighbor. Inform the neighbor. Laser prohibition statute, per 18 USC 39A pg 336. Whoever knowingly aims the beam of a laser pointer at an aircraft in the special aircraft jurisdiction of the United States, or at the flight path of such an aircraft, shall be fined under this title or imprisoned not more than 5 years, or both.

Why is it important to keep the corporation's money and other assets clearly separated from your own?

So the IRS knows the difference between what are personal and what are company asset

What are the primary forms of business organization?

Sole proprietorship, general partnership, limited, partnership, limited liability company (LLC), limited liability partnership (LLP), and corporation

Your aviation medical exam reveals evidence of coronary artery disease. Your Aviation Medical Examiner (AME) denies your application for an aviation medical certificate and refers you to a cardiologist. On the cardiologist's recommendation, you undergo heart surgery. The procedure goes well, and your postoperative course is also smooth. You have quit smoking, gone on a lowcholesterol diet, and have been following a good exercise regimen. Your cardiologist expresses the opinion that so long as you continue your new healthier lifestyle, you are no more likely to experience a heart attack than the average person of your age not having your medical history. Is there a procedure by which you may obtain aviation medical certification? If so, describe.

Special issuance - If you can prove that regardless of your history, you are unlikely to become suddenly incapacitated while flying, and that you can operate an aircraft as safely as any other pilot. At discretion of air surgeon

From the standpoint of legal liability for negligence, what difference does it make whether a domestic commercial flight is a common-carrier or a contract-carrier operation?

The difference is that common carriers have been held to have the legal duty to exercise the highest degree of care to avoid injuring a passenger

Compare and contrast the personal liability for the consequences of torts committed by individual federal employees with that of individual employees in the private sector.

The primary difference between these comes down to protection. Unlike employees of private enterprise, individual federal employees enjoy protection from personal liability for the consequences of their on the job negligence. In the private industry, both the employer and the employee can be held liable for the consequences of the employee's on the job negligence

What is subrogation, and how can renter pilots be protected against it?

The right of an insurance company who paid a claim to sue anyone other than the insured who contributed to the cause of an accident. renter pilots can be protected by purchasing a wavier of subrogation endorsement.

Your airplane crashed, and a passenger was injured. You are absolutely certain the accident was not your fault. Does your insurance company have to get your permission to pay a settlement to the injured passenger?

They are prohibited because that would interfere with effected damages being suffered by the insured

You have passed the written exam for the Airline Transport Pilot (ATP) certificate and need only an additional 20 hours of flight time to qualify to take the oral and flight tests. You are offered a dream job, but the catch is that you must have your ATP in hand by the first of the month or they will hire someone else for the position. You are out of work and broke and couldn't afford to fly even if the weather cooperated (which it doesn't look like it's going to), so you feel a strong temptation to "pad" your logbooks with 20 hours of imaginary flying and present them to the FAA with your application to take the ATP oral and flight tests. If you do this and your padding is discovered, what are the probable consequences to you?

This is both a FAR violation 61.59 and a federal felony of making false statements. This includes logbooks. Can end your career, and you could face potential prison time and fines. Morale character in question. 5 years, $250,000 fines.

Acting on a tip, law enforcement officers in a major U.S. city take into custody a person believed to be one of the perpetrators of the massacre at Lod International Airport in Israel. Does the U.S. have jurisdiction to try the suspect in U.S. courts for this crime? Explain.

Yes, If there is an extradition treaty. Under 18 USC 37, the US government has jurisdiction worldwide for acts of violent crime against people at airports servicing international civil aviation

What do you intend to do once you arrive at your destination? Why?

Tie down the aircraft and disappear as quickly as possible. Do not refuel or leave any sort of paper trail. Do not incriminate yourself.

Which agency of the U.S. government is responsible for the day-to-day screening of airline passengers, baggage, and cargo?

Transportation Security Administration (TSA)

What is inverse condemnation?

When the government acquires or appropriates private property that could make your property unenjoyable or unusable

Can an enforceable exculpatory contract be created by "fine print" on the back of an admission ticket to an air show if the ticket is neither read nor signed by the spectator?

Yes

Does the IRS have the authority to determine that a person is (or was) an employee of the business rather than an independent contractor even if the business had an agreement signed by that worker stating that she is an independent contractor?

Yes via hindsight revie

As an aircraft owner and private pilot, as well as a sailing aficionado, you always like to fly over (always at a safe altitude and distance) with your closest friends as passengers to observe the annual sailing regatta put on by a local yacht club in an area under Class G (uncontrolled) airspace. The event comes around again tomorrow, and you and your passengers are especially excited, because the nightly news just reported that the president of the United States will be a participant in this year's event. Could this affect your plans? Why?

Yes, There are FAA air restrictions wherever the president goes. Check the NOTAMs for information as this could affect your plans, routes, etc.

You are operating a regional airliner. On takeoff roll, you observe a small general aviation aircraft beginning to cross your runway ahead. You apply full braking and full reverse thrust, successfully aborting the takeoff and stopping short of the other aircraft. Are you required to notify any government agency of this occurrence? Explain.

Yes, an incident report is required to be filed with the NTSB because a runway incursion which required immediate corrective action to be taken to avoid a collision occurred.

The FAA issues an Order of Suspension against your certificate. Do you have the right to appeal that order? If so, to whom?

Yes, to the NTSB

You have failed the color-vision test during your examination for an aviation medical certificate. Is there another procedure by which you may still be able to obtain an aviation medical certificate? If so, explain

Yes, you may get your medical certificate by arranging a test to determine whether you are able to see the red, green, and white of the control tower light gun. (SODA - Statement of Demonstrated Ability)

If the arrest leads to the suspension, revocation of your driver's license or conviction of a drug- or alcohol-related traffic offense, are you required to report the conviction to the FAA? If so, to whom and when?

Yes, you must report it within 60 days

Three weeks later, you receive a letter of investigation from the FAA inspector. Are you required to respond to this letter? If you do, can your response be used as evidence to suspend or revoke your pilot certificate? What will you do now? Why?

You do not have to respond. Take the letter to your aviation lawyer for advice. Do not hang yourself by responding on your own. A lawyer can send a correspondence letter in reply that will not admit to anything

You are an aircraft broker specializing in airline-size jets. A customer contacts you, indicating that he is the chief executive officer of an international cattle-breeding operation based in Texas. He advises you that neither he nor anyone on his staff knows much about large airplanes, but they need to purchase an aircraft capable of transporting 100 bulls weighing an average of 1,600 pounds each, each in a 150-pound shipping cage measuring 5 feet wide by 8 feet long by 6 feet high. He states that the aircraft will also need to be capable of carrying that load from Dallas to Buenos Aires, Argentina, nonstop. If you sell an aircraft to this customer for that purpose, what warranties will you be making to the buyer?

You will be making an implied warranty of fitness for a particular purpose and implied warranty of merchantability

Can your chosen form of business protect you from personal liability for the consequences of your own negligence or intentional torts?

Your business cannot protect you personally from liability for your own negligence, or intentional torts, but it could protect you from vicarious personal liability torts committed by employees of the business in the scope of their employment and from debt.