Aviation Law: Exam 1 with Complete
Solutions
Why are these questions on the Application for Aviation Medical Certificate? Correct Ans-To
make sure you don't have any of the specific disqualifying conditions or another health condition
that could make it unsafe for you to act as a pilot
If you have such a record, but fail to report it on your application, is the FAA likely to find out
about it? If so, how? Correct Ans-Yes, the FAA references answers provided on medical
forms with the Social Security Administration database through a program called Operation Safe
Pilot.
What are the primary forms of business organizations? Correct Ans-Sole Proprietorship
General Partnership
Limited Partnership
Limited Liability Company (LLC)
Limited Liability Partnership (LLP)
Corporation
From a risk management standpoint, which form or forms of business organizations serve to
protect the owners from personal vicarious liability for torts committed by employees
acting with the scope of their employment? Correct Ans-Corporation
Limited Liability Company
Limited Liability Partnership
,Can your chosen form of business protect you from personal liability for the consequences of
your own negligence or intentional torts? Correct Ans-No
What are the owners of a corporation called? Correct Ans-Shareholders
Regardless of its form, what duties does every business owe to its employees? Correct Ans-A
duty to provide workers compensation insurance and unemployment compensation insurance, to
pay agreed wages and withhold payroll taxes, and to provide a safe place to work.
What is the alter ego doctrine? Correct Ans-If you continue to operate the business as though
it were a sole proprietorship or partnership, a plaintiff's attorney may be able to pierce the
corporate veil to reach your personal assets to satisfy liability or debt of the business.
What test does the Internal Revenue Service apply to determine whether a person is an
independent contractor or an employee of a business? Correct Ans-The right to control and
direct test
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? Correct Ans-Yes
What difference does it make to a business whether the IRS considers a worker an employee of
the business or an independent contractor? Correct Ans-If an employee, the company must
adhere to the duties it owes aid employees. If these duties are neglected, then the company will
, be held liable if the employee fails to pay taxes. If an independent contractor, the company has
no liability as to whether or not that person pays their taxes.
What decisions do shareholders have the right to make? Correct Ans-Elect a board of
directors to govern the corporation
What decisions does the board of directors typically make? Correct Ans-Makes decisions
affecting corporate policy and major business decisions
What decisions do corporate officers typically make? Correct Ans-Execute policy and make
day-to-day business decisions
What is a tort? Correct Ans-An act or omission that causes injury to another person by breach
of legal duty not arising out of a contract and subjects the actor to liability for damages in a civil
lawsuit
What is negligence? Correct Ans-Failing to do an act that a reasonably careful person would
do to protect others from harm or doing an act that a reasonably careful person would not do
under the same or similar circumstances
What are the four elements the plaintiff must prove in order to win a lawsuit for negligence?
Correct Ans-1. A duty to be reasonably careful
2. A failure to be reasonably careful
3. Proximate cause
Solutions
Why are these questions on the Application for Aviation Medical Certificate? Correct Ans-To
make sure you don't have any of the specific disqualifying conditions or another health condition
that could make it unsafe for you to act as a pilot
If you have such a record, but fail to report it on your application, is the FAA likely to find out
about it? If so, how? Correct Ans-Yes, the FAA references answers provided on medical
forms with the Social Security Administration database through a program called Operation Safe
Pilot.
What are the primary forms of business organizations? Correct Ans-Sole Proprietorship
General Partnership
Limited Partnership
Limited Liability Company (LLC)
Limited Liability Partnership (LLP)
Corporation
From a risk management standpoint, which form or forms of business organizations serve to
protect the owners from personal vicarious liability for torts committed by employees
acting with the scope of their employment? Correct Ans-Corporation
Limited Liability Company
Limited Liability Partnership
,Can your chosen form of business protect you from personal liability for the consequences of
your own negligence or intentional torts? Correct Ans-No
What are the owners of a corporation called? Correct Ans-Shareholders
Regardless of its form, what duties does every business owe to its employees? Correct Ans-A
duty to provide workers compensation insurance and unemployment compensation insurance, to
pay agreed wages and withhold payroll taxes, and to provide a safe place to work.
What is the alter ego doctrine? Correct Ans-If you continue to operate the business as though
it were a sole proprietorship or partnership, a plaintiff's attorney may be able to pierce the
corporate veil to reach your personal assets to satisfy liability or debt of the business.
What test does the Internal Revenue Service apply to determine whether a person is an
independent contractor or an employee of a business? Correct Ans-The right to control and
direct test
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? Correct Ans-Yes
What difference does it make to a business whether the IRS considers a worker an employee of
the business or an independent contractor? Correct Ans-If an employee, the company must
adhere to the duties it owes aid employees. If these duties are neglected, then the company will
, be held liable if the employee fails to pay taxes. If an independent contractor, the company has
no liability as to whether or not that person pays their taxes.
What decisions do shareholders have the right to make? Correct Ans-Elect a board of
directors to govern the corporation
What decisions does the board of directors typically make? Correct Ans-Makes decisions
affecting corporate policy and major business decisions
What decisions do corporate officers typically make? Correct Ans-Execute policy and make
day-to-day business decisions
What is a tort? Correct Ans-An act or omission that causes injury to another person by breach
of legal duty not arising out of a contract and subjects the actor to liability for damages in a civil
lawsuit
What is negligence? Correct Ans-Failing to do an act that a reasonably careful person would
do to protect others from harm or doing an act that a reasonably careful person would not do
under the same or similar circumstances
What are the four elements the plaintiff must prove in order to win a lawsuit for negligence?
Correct Ans-1. A duty to be reasonably careful
2. A failure to be reasonably careful
3. Proximate cause
