AVMG 5090 TEST #3 QUESTIONS WITH VERIFIED
ANSWERS
Lease - Answers - an agreement (contract) that permits someone else to use an
owner's aircraft
Leaseback - Answers - an agreement where the buyer leases the aircraft back to the
seller; leads to most disputes and litigation; useful for someone that can't afford the
aircraft; usually results in benefitting the seller and hurting the buyer
Lease Forward - Answers - an agreement where the buyer leases the aircraft to a 3rd
party
Wet Lease - Answers - leasing an aircraft with the pilot or flight crew; must have a
higher certification for this
do your research and get all your questions answered beforehand - Answers - What
should you do to save as much money as you can before an attorney drafts your lease?
forfeited - Answers - If your aircraft is used in a drug-running operation, it can be
__________ whether you know about it or not.
change your insurance - Answers - If your aircraft rental comes with a change of use,
then what should you do?
Fractional Ownership - Answers - partial ownership of an aircraft at a cost maybe more
favorable than charter rates or full ownership
1) Bill of Sale
2) Joint Ownership Agreement
3) Aircraft Management Agreement
4) Master Interchange Agreement - Answers - What 4 documents are required with
fractional ownership?
buyer and seller - Answers - Who is the Bill of Sale document between?
says what every owner's rights are - Answers - What is the Joint Ownership
Agreement?
owners and the management company - Answers - Who is the Aircraft Management
Agreement document between?
, says what happens when you want to fly the aircraft - Answers - What is the Master
Interchange Agreement?
own it - Answers - What should you do if you use the aircraft over 200 hours/year?
fractional ownership - Answers - What should you do if you use the aircraft greater than
50 hours/year, but less than 200 hours/year?
just use charter aircraft - Answers - What should you do if you use the aircraft less than
50 hours/year?
peacefully - Answers - When you own a piece of property, the courts start with the "right
to use and enjoy your land __________."
Easement - Answers - an agreement with landowners to use the land for that specific
use
Bundle of Rights Theory - Answers - having several different rights when owning a
piece of property but being able to or having to sell some of those rights
Eminent Domain - Answers - government has the right to take private land within their
jurisdiction for public use, but must pay the landowner just compensation or file a
condemnation lawsuit
Condemnation Lawsuit - Answers - seeks a court order establishing the price to be paid
for the land and ordering transfer of title to the government upon payment
1) noise
2) obstacles - Answers - What are 2 main things that come up in eminent domain
cases?
1) have to pay you the fair market value (based on what land in a similar situation would
be valued)
2) has to be for public use - Answers - What are 2 requirements for the government to
exercise eminent domain?
Inverse Condemnation - Answers - a landowner filing a suit that the government had
already taken property rights and just compensation; brought about by the Causby case
purchased by the airport and included in airport boundaries - Answers - What should be
done if the sound from the airport is 75 DNL or higher?
Smith v. Santa Barbara County - Answers - What case made land use zoning popular?
ANSWERS
Lease - Answers - an agreement (contract) that permits someone else to use an
owner's aircraft
Leaseback - Answers - an agreement where the buyer leases the aircraft back to the
seller; leads to most disputes and litigation; useful for someone that can't afford the
aircraft; usually results in benefitting the seller and hurting the buyer
Lease Forward - Answers - an agreement where the buyer leases the aircraft to a 3rd
party
Wet Lease - Answers - leasing an aircraft with the pilot or flight crew; must have a
higher certification for this
do your research and get all your questions answered beforehand - Answers - What
should you do to save as much money as you can before an attorney drafts your lease?
forfeited - Answers - If your aircraft is used in a drug-running operation, it can be
__________ whether you know about it or not.
change your insurance - Answers - If your aircraft rental comes with a change of use,
then what should you do?
Fractional Ownership - Answers - partial ownership of an aircraft at a cost maybe more
favorable than charter rates or full ownership
1) Bill of Sale
2) Joint Ownership Agreement
3) Aircraft Management Agreement
4) Master Interchange Agreement - Answers - What 4 documents are required with
fractional ownership?
buyer and seller - Answers - Who is the Bill of Sale document between?
says what every owner's rights are - Answers - What is the Joint Ownership
Agreement?
owners and the management company - Answers - Who is the Aircraft Management
Agreement document between?
, says what happens when you want to fly the aircraft - Answers - What is the Master
Interchange Agreement?
own it - Answers - What should you do if you use the aircraft over 200 hours/year?
fractional ownership - Answers - What should you do if you use the aircraft greater than
50 hours/year, but less than 200 hours/year?
just use charter aircraft - Answers - What should you do if you use the aircraft less than
50 hours/year?
peacefully - Answers - When you own a piece of property, the courts start with the "right
to use and enjoy your land __________."
Easement - Answers - an agreement with landowners to use the land for that specific
use
Bundle of Rights Theory - Answers - having several different rights when owning a
piece of property but being able to or having to sell some of those rights
Eminent Domain - Answers - government has the right to take private land within their
jurisdiction for public use, but must pay the landowner just compensation or file a
condemnation lawsuit
Condemnation Lawsuit - Answers - seeks a court order establishing the price to be paid
for the land and ordering transfer of title to the government upon payment
1) noise
2) obstacles - Answers - What are 2 main things that come up in eminent domain
cases?
1) have to pay you the fair market value (based on what land in a similar situation would
be valued)
2) has to be for public use - Answers - What are 2 requirements for the government to
exercise eminent domain?
Inverse Condemnation - Answers - a landowner filing a suit that the government had
already taken property rights and just compensation; brought about by the Causby case
purchased by the airport and included in airport boundaries - Answers - What should be
done if the sound from the airport is 75 DNL or higher?
Smith v. Santa Barbara County - Answers - What case made land use zoning popular?
