Aviation Law Final Test Questions
and Answers 100% Pass
What is a security interest? - ANSWER✔✔-A legal interest in an item of
personal property that secures the payment of a debt and can take
possession without a court order....collateral
What right does the holder of a security interest have that other creditors
do not? - ANSWER✔✔-If the owner doesn't pay, a holder of a security
interest can take possession of a debt without judicial process
Will a title search at the FAA Aircraft Registry in Oklahoma City reveal all
kinds of valid security interests in aircraft? - ANSWER✔✔-Yes
What is the difference between a lease and a leaseback? - ANSWER✔✔-a.
Lease: permits someone to use an owner's aircraft
b. Leaseback: Buyer purchases from a seller then leases it back to him
Distinguish the primary motivation of the lessee in a lease ("lease forward")
from that of the seller-lessee in a sale with leaseback. - ANSWER✔✔-a. In a
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 1/36
,lease, the lessee's primary motive is to use aircraft without having to
purchase one
b. In a leaseback, the primary motive is the sale of aircraft
3. Explain how that difference in primary motivations may lead the seller-
lessee in a leaseback to act in a manner that may be contrary to the owner-
lessor's best interests - ANSWER✔✔-a. The sales price usually becomes
non-negotiable
b. They show how it can make money monthly, but it is not guaranteed
4. 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. - ANSWER✔✔-a. No
b. Wet lease: you lease an aircraft and provide a pilot
5. How can you save money on attorney fees in the drafting of an aircraft
lease? - ANSWER✔✔-a. Agreeing with the other party to as many of the
details of the lease as possible before going to the attorney
b. Work out the details yourself
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 2/36
,6. You own an aircraft. A person you have seen around the airport but
don't know very well approaches you with a business proposition. She
informs you that she is starting a commercial flying club and would like to
lease your aircraft. What will you do to decide whether you want to do
business with this person? - ANSWER✔✔-a. Carefully check their credit
rating and experience. Note their timely payments and aircraft care and
maintenance.
b. Get their records
c. Go to local aviation bar and find out about the person
7. You are approached by a pilot who says he owns the same make and
model of general aviation aircraft as yours. He says that his annual
inspection is taking longer than expected, interfering with his family's
long-scheduled vacation plans. He asks to lease your aircraft for their
planned two-week family vacation trip. He offers you a good price and
even offers to pay cash in advance. You have had some major unexpected
family expenses and could really use the money, but you are left with the
uneasy feeling that a family vacation may not really be what the pilot
intends. If you decide to just take the money and not ask any pointed
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 3/36
, questions or otherwise check this person out, are you running any special
risks? Explain. - ANSWER✔✔-a. Yes
b. If the person is involved in illegal activities your insurance won't cover it
and the government could cease the aircraft
8. You have been using your aircraft only for your own personal business
and pleasure flying. To produce some income, you decide to lease it to an
FBO that will use it for student instruction and rental. Will this require any
changes in your aircraft insurance coverage? If so, describe. - ANSWER✔✔-
a. Yes, your purpose of use has changed
b. You'll need to add limited commercial
9. What is fractional ownership? - ANSWER✔✔-a. A type of co-ownership
in which each owner buys a percentage expected to equal its annual use
10. What advantages do fractional ownership programs offer air travelers
as compared to chartering or purchasing similar aircraft as sole owners? -
ANSWER✔✔-a. It can be cheaper depending on how much you fly it
11. What legal documents are necessary components of a fractional
ownership program? - ANSWER✔✔-a. Contract of Sale
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 4/36
and Answers 100% Pass
What is a security interest? - ANSWER✔✔-A legal interest in an item of
personal property that secures the payment of a debt and can take
possession without a court order....collateral
What right does the holder of a security interest have that other creditors
do not? - ANSWER✔✔-If the owner doesn't pay, a holder of a security
interest can take possession of a debt without judicial process
Will a title search at the FAA Aircraft Registry in Oklahoma City reveal all
kinds of valid security interests in aircraft? - ANSWER✔✔-Yes
What is the difference between a lease and a leaseback? - ANSWER✔✔-a.
Lease: permits someone to use an owner's aircraft
b. Leaseback: Buyer purchases from a seller then leases it back to him
Distinguish the primary motivation of the lessee in a lease ("lease forward")
from that of the seller-lessee in a sale with leaseback. - ANSWER✔✔-a. In a
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 1/36
,lease, the lessee's primary motive is to use aircraft without having to
purchase one
b. In a leaseback, the primary motive is the sale of aircraft
3. Explain how that difference in primary motivations may lead the seller-
lessee in a leaseback to act in a manner that may be contrary to the owner-
lessor's best interests - ANSWER✔✔-a. The sales price usually becomes
non-negotiable
b. They show how it can make money monthly, but it is not guaranteed
4. 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. - ANSWER✔✔-a. No
b. Wet lease: you lease an aircraft and provide a pilot
5. How can you save money on attorney fees in the drafting of an aircraft
lease? - ANSWER✔✔-a. Agreeing with the other party to as many of the
details of the lease as possible before going to the attorney
b. Work out the details yourself
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 2/36
,6. You own an aircraft. A person you have seen around the airport but
don't know very well approaches you with a business proposition. She
informs you that she is starting a commercial flying club and would like to
lease your aircraft. What will you do to decide whether you want to do
business with this person? - ANSWER✔✔-a. Carefully check their credit
rating and experience. Note their timely payments and aircraft care and
maintenance.
b. Get their records
c. Go to local aviation bar and find out about the person
7. You are approached by a pilot who says he owns the same make and
model of general aviation aircraft as yours. He says that his annual
inspection is taking longer than expected, interfering with his family's
long-scheduled vacation plans. He asks to lease your aircraft for their
planned two-week family vacation trip. He offers you a good price and
even offers to pay cash in advance. You have had some major unexpected
family expenses and could really use the money, but you are left with the
uneasy feeling that a family vacation may not really be what the pilot
intends. If you decide to just take the money and not ask any pointed
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 3/36
, questions or otherwise check this person out, are you running any special
risks? Explain. - ANSWER✔✔-a. Yes
b. If the person is involved in illegal activities your insurance won't cover it
and the government could cease the aircraft
8. You have been using your aircraft only for your own personal business
and pleasure flying. To produce some income, you decide to lease it to an
FBO that will use it for student instruction and rental. Will this require any
changes in your aircraft insurance coverage? If so, describe. - ANSWER✔✔-
a. Yes, your purpose of use has changed
b. You'll need to add limited commercial
9. What is fractional ownership? - ANSWER✔✔-a. A type of co-ownership
in which each owner buys a percentage expected to equal its annual use
10. What advantages do fractional ownership programs offer air travelers
as compared to chartering or purchasing similar aircraft as sole owners? -
ANSWER✔✔-a. It can be cheaper depending on how much you fly it
11. What legal documents are necessary components of a fractional
ownership program? - ANSWER✔✔-a. Contract of Sale
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 4/36
