Aviation Law Midterm and final Exam
with Complete Solutions
US vs causby Correct Ans--the first aviation case before us supreme court was an inverse
condemnation case
-supreme court held that a taking had occurred because of gov aircraft flying at low altitude over
the land.
-court held that gov had taken an easement over the land and had to pay just compensation the
difference between the value of the property before and after the taking
-the supreme court departed from the old common law ad coelum doctrine (who ever owns the
surface owns to the sky and the depths
Police power Correct Ans--the power to make and enforce rules to protect the public health
safety and welfare
-considered to be an inherent power of state gov it does not derive expressly form the
constitution but rather from the states status as a sovereign
-includes the power to set up zoning ordinances
-REGULATORY TAKING: when the enforcement of a zoning ordinance amounts to a taking of
property just compensation must be paid
-if a local zoning ordinance conflicts with federal regulation the fed will supersede the local one
under the supremacy clause of the constitution(FEDERAL PREEMTION)
nuisance Correct Ans--an act that interferes with someones use and enjoyment of their
property
-court may issue an injunction prohibiting the activity
,Buy/sell agreement Correct Ans--is a contract
-governed by the uniform commercial code (ucc)
Title Correct Ans--ownership
-at the time of the sale, title passes from seller to buyer
-can be free and clear, or there can be encumbrances such as security interest/ liens
-can be held by a single individual or by multiple
-JOINTLY: must be held in equal shares, automatically passes to the surviving owners upon the
death of an owner. Cannot sell or give away share without dissolving the joint nature of the
ownership
-IN COMMON: Can be owned in different size shares. does not automatically pass to surviving
owners, but can be willed or passed to heirs. Owner can sell or give away ownership interest
without dissolving the common nature of ownership
-EQUITABLE OR BENEFICIAL: to a piece of property are usually held by the same person.
Equitable title can be split from legal title and pass independently of legal title. example is a
trust.
-TRUST: Legal title to property is held by one person (the trustee). Equitable title is held by
another person (beneficiary)
Liens/ security interests Correct Ans--an interest in an aircraft (or property) that is less than
full ownership
-created by a security agreement (contract between lender and borrower)
-Lender= secured party or lienholder
,-borrower= debtor
-Allows a lienholder to repossess and sell the collateral if the debtor defaults on the security
agreement
-if the loan is not repaid that debtor loses the collateral
-A security interest attaches to an aircraft when the security agreement is made between the
lender and the owner, making the aircraft collateral. At this point the interest is valid against
anyone who has knowledge of it
-security interest is perfected when the security interest is recorded with the FAA, once perfected
it is valid against everyone (same with ownership interests)
-cape town treaty: international system for recording interests in aircraft
Title search Correct Ans--Should always be done by a buyer and by a lender before making a
loan
-shows ownership, previous owners, recorded security interests
possessory liens Correct Ans--allows lienholder to keep possession of the aircraft until the
debt is satisfied
-mechanics liens, materialmens lien, warhaousemens lien
security interests Correct Ans--record with FAA immediately
-unrecorded interests is not valid against anyone without notice of the interests
-if aircraft is repossessed and sold, any excess proceeds of the sale go to the owner
-if it sells for less than what is owed the lienholder will not be fully repaid
-order among lienholders: usually possessory lien has first priority, then first recorded
, Warranties Correct Ans--part of the sales contract
-may be expressed or implied
-breach of warranty is breach of contract, giving a cause of action to victim
-EXPRESS WARRANTIES: promises made by the seller about the goods. needs to be written
-IMPLIED WARRANTIES: implied by law and form a part of every contract. UCC provides for
two.
can be disclaimed by the parties by inserting a clause into the written contract
-WARRANTY OF MECHANTABLITIY: when the seller is a merchant in goods of that kind.
-WARRANTY OF FITNESS: if the seller knows of the intended use, and the buyer relies on the
sellers expertise to supply goods fit that use
-REMEDIES: damages, specific performance, rescission
Paperwork at close of sale Correct Ans--bill of sale (transfers legal title)
-lien releases for old liens
-contract of sale
-promissory note
special aircraft jurisdiction Correct Ans--applies to crimes committed on board
-any us registered aircraft regardless of its location
-any us military aircraft
-any aircraft within the us regardless of registry
-any aircraft with a last point of departure within the us
with Complete Solutions
US vs causby Correct Ans--the first aviation case before us supreme court was an inverse
condemnation case
-supreme court held that a taking had occurred because of gov aircraft flying at low altitude over
the land.
-court held that gov had taken an easement over the land and had to pay just compensation the
difference between the value of the property before and after the taking
-the supreme court departed from the old common law ad coelum doctrine (who ever owns the
surface owns to the sky and the depths
Police power Correct Ans--the power to make and enforce rules to protect the public health
safety and welfare
-considered to be an inherent power of state gov it does not derive expressly form the
constitution but rather from the states status as a sovereign
-includes the power to set up zoning ordinances
-REGULATORY TAKING: when the enforcement of a zoning ordinance amounts to a taking of
property just compensation must be paid
-if a local zoning ordinance conflicts with federal regulation the fed will supersede the local one
under the supremacy clause of the constitution(FEDERAL PREEMTION)
nuisance Correct Ans--an act that interferes with someones use and enjoyment of their
property
-court may issue an injunction prohibiting the activity
,Buy/sell agreement Correct Ans--is a contract
-governed by the uniform commercial code (ucc)
Title Correct Ans--ownership
-at the time of the sale, title passes from seller to buyer
-can be free and clear, or there can be encumbrances such as security interest/ liens
-can be held by a single individual or by multiple
-JOINTLY: must be held in equal shares, automatically passes to the surviving owners upon the
death of an owner. Cannot sell or give away share without dissolving the joint nature of the
ownership
-IN COMMON: Can be owned in different size shares. does not automatically pass to surviving
owners, but can be willed or passed to heirs. Owner can sell or give away ownership interest
without dissolving the common nature of ownership
-EQUITABLE OR BENEFICIAL: to a piece of property are usually held by the same person.
Equitable title can be split from legal title and pass independently of legal title. example is a
trust.
-TRUST: Legal title to property is held by one person (the trustee). Equitable title is held by
another person (beneficiary)
Liens/ security interests Correct Ans--an interest in an aircraft (or property) that is less than
full ownership
-created by a security agreement (contract between lender and borrower)
-Lender= secured party or lienholder
,-borrower= debtor
-Allows a lienholder to repossess and sell the collateral if the debtor defaults on the security
agreement
-if the loan is not repaid that debtor loses the collateral
-A security interest attaches to an aircraft when the security agreement is made between the
lender and the owner, making the aircraft collateral. At this point the interest is valid against
anyone who has knowledge of it
-security interest is perfected when the security interest is recorded with the FAA, once perfected
it is valid against everyone (same with ownership interests)
-cape town treaty: international system for recording interests in aircraft
Title search Correct Ans--Should always be done by a buyer and by a lender before making a
loan
-shows ownership, previous owners, recorded security interests
possessory liens Correct Ans--allows lienholder to keep possession of the aircraft until the
debt is satisfied
-mechanics liens, materialmens lien, warhaousemens lien
security interests Correct Ans--record with FAA immediately
-unrecorded interests is not valid against anyone without notice of the interests
-if aircraft is repossessed and sold, any excess proceeds of the sale go to the owner
-if it sells for less than what is owed the lienholder will not be fully repaid
-order among lienholders: usually possessory lien has first priority, then first recorded
, Warranties Correct Ans--part of the sales contract
-may be expressed or implied
-breach of warranty is breach of contract, giving a cause of action to victim
-EXPRESS WARRANTIES: promises made by the seller about the goods. needs to be written
-IMPLIED WARRANTIES: implied by law and form a part of every contract. UCC provides for
two.
can be disclaimed by the parties by inserting a clause into the written contract
-WARRANTY OF MECHANTABLITIY: when the seller is a merchant in goods of that kind.
-WARRANTY OF FITNESS: if the seller knows of the intended use, and the buyer relies on the
sellers expertise to supply goods fit that use
-REMEDIES: damages, specific performance, rescission
Paperwork at close of sale Correct Ans--bill of sale (transfers legal title)
-lien releases for old liens
-contract of sale
-promissory note
special aircraft jurisdiction Correct Ans--applies to crimes committed on board
-any us registered aircraft regardless of its location
-any us military aircraft
-any aircraft within the us regardless of registry
-any aircraft with a last point of departure within the us
