Aviation Law Exam 1 Review Questions
& Answers
A general aviation manufacturer delivers a new eight-seat twin-engine FAA-certified aircraft to a
buyer today. If there is a defect in the airplane when it is delivered, is the manufacturer
potentially liable for injuries that may eventually be caused by that defect, no matter when the
resulting harm occurs? Explain Correct Ans-No, it is not indefinite. There are statutes of
limitations that impose limits on how long a person has, in manufacturing these are called
Statutes of Repose. Under GARA there is a federal 18 year statute of repose for FAA certified
general aviation aircraft having less than 20 seats. Some states also have laws surrounding this
topic.
You were the pilot of an aircraft that crashed, injuring passengers.
You receive a Summons and Complaint in a civil suit brought by one of the passengers who
alleges that your negligence caused the crash, seeking a judgment against you for hundreds of
thousands of dollars in damages for that passenger's injuries. What should you do? When? Why?
Correct Ans-Get a lawyer, then get an aviation professional, and reference the AIM to garnish
yourself a defence that you were not being negligent.
You were the pilot of an aircraft that crashed, injuring passengers.
At trial, how will the jury (none of whom will be pilots or have any aviation expertise) determine
whether you were negligent? Correct Ans-The jury will be given reference to the FAR's and
the AIM. So it is important to have an aviation professional that can provide insight. P
,You were the pilot of an aircraft that crashed, injuring passengers.
Will your attorney have the opportunity to find out what the other side intends to prove, and how,
before trial? If so, describe.If you win the case, who will have to pay your attorney's fee? Who
will have to pay them if you lose? Explain Correct Ans-Yes, before the trial your lawyer will
have the opportunity to find out what the other side has through discovery. Lawyer fees depend
on the contract before entrance. In this case most likely the lawyer would not offer a contract that
does not include a losing fee.
What are the primary forms of business organization? 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 organization serve to
protect the owners from personal vicarious liability for torts committed by employees acting
within the scope of their employment and from business debts? Correct Ans-
Corporations,LLCs, and LLPs
Can your chosen form of business protect you from personal liability for the consequences of
your own negligence or intentional torts? Correct Ans-No, you are still liable for your own
negligence or intentional torts.
, What are the owners of a corporation called? Correct Ans-Shareholders or stockholders
Regardless of its form, what duties does every business owe to its employees? Correct Ans-
Every business owes its employees workers compensation and unemployment compensation
insurance, to pay agreed wages and withhold payroll taxes, and to provide a safe environment to
work.
What is an alter ego doctrine? Correct Ans-If you continue to operate the business as if 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 liabilities or debts of the business.
What test does the Internal Revenue Service (IRS) apply to determine whether a person is an
independent contractor or an employee of a business? Correct Ans-Applies the
" 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 they have
hindsight review.
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-The ability to withhold payroll taxes.
In a corporation,
& Answers
A general aviation manufacturer delivers a new eight-seat twin-engine FAA-certified aircraft to a
buyer today. If there is a defect in the airplane when it is delivered, is the manufacturer
potentially liable for injuries that may eventually be caused by that defect, no matter when the
resulting harm occurs? Explain Correct Ans-No, it is not indefinite. There are statutes of
limitations that impose limits on how long a person has, in manufacturing these are called
Statutes of Repose. Under GARA there is a federal 18 year statute of repose for FAA certified
general aviation aircraft having less than 20 seats. Some states also have laws surrounding this
topic.
You were the pilot of an aircraft that crashed, injuring passengers.
You receive a Summons and Complaint in a civil suit brought by one of the passengers who
alleges that your negligence caused the crash, seeking a judgment against you for hundreds of
thousands of dollars in damages for that passenger's injuries. What should you do? When? Why?
Correct Ans-Get a lawyer, then get an aviation professional, and reference the AIM to garnish
yourself a defence that you were not being negligent.
You were the pilot of an aircraft that crashed, injuring passengers.
At trial, how will the jury (none of whom will be pilots or have any aviation expertise) determine
whether you were negligent? Correct Ans-The jury will be given reference to the FAR's and
the AIM. So it is important to have an aviation professional that can provide insight. P
,You were the pilot of an aircraft that crashed, injuring passengers.
Will your attorney have the opportunity to find out what the other side intends to prove, and how,
before trial? If so, describe.If you win the case, who will have to pay your attorney's fee? Who
will have to pay them if you lose? Explain Correct Ans-Yes, before the trial your lawyer will
have the opportunity to find out what the other side has through discovery. Lawyer fees depend
on the contract before entrance. In this case most likely the lawyer would not offer a contract that
does not include a losing fee.
What are the primary forms of business organization? 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 organization serve to
protect the owners from personal vicarious liability for torts committed by employees acting
within the scope of their employment and from business debts? Correct Ans-
Corporations,LLCs, and LLPs
Can your chosen form of business protect you from personal liability for the consequences of
your own negligence or intentional torts? Correct Ans-No, you are still liable for your own
negligence or intentional torts.
, What are the owners of a corporation called? Correct Ans-Shareholders or stockholders
Regardless of its form, what duties does every business owe to its employees? Correct Ans-
Every business owes its employees workers compensation and unemployment compensation
insurance, to pay agreed wages and withhold payroll taxes, and to provide a safe environment to
work.
What is an alter ego doctrine? Correct Ans-If you continue to operate the business as if 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 liabilities or debts of the business.
What test does the Internal Revenue Service (IRS) apply to determine whether a person is an
independent contractor or an employee of a business? Correct Ans-Applies the
" 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 they have
hindsight review.
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-The ability to withhold payroll taxes.
In a corporation,
