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Andrew Hathcox

Professor Ravich

PLA 4861 Aviation Law

16 October 2020

Weekly Questions

1. First of all, various potential liability comes along with the decision to purchase and
operate an airplane. Watch the oral argument of Vreeland v. Ferrer, 71 So. 3d 70 (Fla.
2011) (807) in its entirety, http://www.wfsu.org/gavel2gavel/viewcase.php?eid=172, and
discuss what counsel for the petitioner is arguing? Did the respondent’s lawyer do a good
job? Who did you find most persuasive and why? (Complicated stuff here, but do your
best. Does Justice Quince think this makes sense?)

Counsel for the petitioner, who is the personal representative of deceased Mr. Martinez,
is arguing that a federal statute enacted in 1948 does not preempt Florida’s Dangerous
Instrumentality Doctrine in the context presented in the instant case. Petitioner counsel’s
argument is essentially that section 6 of the Uniform Aeronautic Act was not disturbed, and that
Section 6 says “the rules applicable to torts on land” which in the instant case would be Florida
Dangerous Instrumentality Doctrine. The court questioned the rationale behind the distinction
being made, and specifically Justice Quince voiced her skepticism about the distinction the
petitioners counsel was making between the instant case and what congress’ report on sections 5
and 6 of the Uniform Aeronautics Act was intended to mean. In response the respondent’s
lawyer argues that 440.112 is intended to preempt state law. She reasons that the position taken
by the petitioner ignores the wording or the statute, ignores the legislative history, and ignores
the predecessor statute. After listening to both parties formulate their arguments, I agree with the
petitioner that Florida’s dangerous instrumentality doctrine is not preempted. I believe this
because the intent of congress is unclear and there exists an assumption against preemption.

2. Turning to your client, is this the right airplane for your client? How do you plan on
advising her? (Hint: Marc C. Lee, Top 20 Tips for Buying an Airplane, Plane & Pilot,
Aug. 16, 2016, https://www.planeandpilotmag.com/article/top-20-tips-for-buying-
anairplane/#.WWO6f4jythE)

In order to determine if this airplane is the right airplane for my client I plan on advising
her to consider how her own pilot skills compare to the airplane, if the airplane is right for her
current skill set or if she would need training to safely transition into operating this airplane.
Next, I would advise her to look at aviation insurance before making the purchase, and to consult
with an independent aviation insurance broker to discover what options of coverage are available
to her. Finally, when the time has come to purchase the aircraft I will advise her to make sure she
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reviewed all of the insurance coverage options, and to give consideration to having aircraft
physical damage insurance included for both not-in-motion and in-motion.

3. Should your client trust the seller? Give examples of potential pitfalls:
http://gcaircraft.com/three-aircraft-sales-scams/

I would advise my client to be dubious of sellers when purchasing an airplane as a general

rule to safeguard their own interests and ensure that they are not taken advantage of. Given that
no state requires that aircraft brokers be licensed, airing on the side of caution is not a bad idea in
my opinion. Things to lookout for include any deal that seems “too good to be true”, and to avoid
being sucked into a broker’s inventory by an insane deal. One can check the FAA’s N-Number
Registry to research the aircraft and confirm it does in fact exist and is in fact for sale. Another
indicator that something is off with an aircraft’s broker is if the aircraft has incomplete or
improper documentation. If this is the case a purchaser could unwittingly put down money on a
plane that isn’t even legal to operate. An assessment of deficiencies in documentation of the
aircraft is essential in determining if the broker can be trusted or if the plane is a viable purchase.

4. Complete this Aircraft Purchase Agreement:

https://www.airloans.com/pdfs/NAFCOPurchase-Agreement.pdf. In the event you are
unable to complete certain portions, identify what information you would like to know
and how you intend to obtain the information.

[Attached at bottom of document]

5. See the Bill of Sale, https://www.faa.gov/documentLibrary/media/Form/ac8050-2.pdf.

What does it say about registration under 49 U.S.C. § 44101. What does this mean?
(Hint: https://www.law.cornell.edu/uscode/text/49/44101) (Second hint:
https://www.aopa.org/go-fly/aircraft-and-ownership/buying-an-aircraft/tips-on-
buyingused-aircraft#bill)

The Bill of Sale states that under 49 U.S.C. § 44101 the registration of each United States
civil aircraft is required as a prerequisite to the aircraft’s operation. Which essentially means that
it is unlawful to operate a United States civil aircraft without having a valid registration unless an
exception from 49 U.S.C. § 44101(b) applies.

6. What does it mean for an airplane to be “airworthy”? See

https://www.faa.gov/aircraft/air_cert/airworthiness_certification/aw_overview/.
Specifically, what is the definition of airworthy and how will you get the seller to prove
the airplane your client wants to buy is in airworthy condition?

The FAA defines “airworthy” as an aircraft with a type certification (TC) is airworthy
when it confirms to its U.S. TC and is in a condition for safe operation. I will have the
airworthiness proven to my client by having the seller present the type certificate for the aircraft
that indicates the aircrafts conformity to its U.S. TC.
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7. See AOPA, Tips on Buying Used Aircraft, https://www.aopa.org/go-fly/aircraft-

andownership/buying-an-aircraft/tips-on-buying-used-aircraft, and in your own words,
describe a “pre-purchase inspection.”

A “pre-purchase inspection” is essentially a mechanical inspection of the aircraft and an

inspection of other ancillary matters that relate to maintenance of the aircraft to determine the
condition prior to purchase. This includes the review of aircraft logbooks, FAA Form 337, AD
compliance, service bulletin status, aircraft serial numbers, and to research availability of spare
parts as well as an assessment of the engines cylinders.

8. Is the purchase price “reasonable”? Is it “market”? How would you know and what can
you do to get a better sales price for your client? (Hint: Watch: Cessna 172 Ownership
Costs Explained, http://www.aircraftbluebook.com/)

The purchase price of this Cessna 150 is relatively cheaper than others that I was able to
locate on the internet which ranged from $25,000 to $40,000. In my opinion based on my
research it is well below “market”. In order to get a better sales price for my client I would need
to assess the cost of a title check, the cost of tying the aircraft down for a month, the annual
inspection cost, and the insurance cost to get a better idea of what the total sales price would be.

9. Is the purchase price the only concern about which you should counsel your client?
(Hint: No.) (Second Hint: https://www.youtube.com/watch?v=eXsvJjn9yb0

No, as I mentioned in my answer to the previous question, the purchase price is merely
one item that will be factored into the final sales price of your aircraft. Other things to be
considered include the fixed cost of the aircraft such as insuring it and tying it down.
Additionally, there is the cost of a title check, the annual inspection cost, and the variable
expenses such as fuel, engine service, and the oil/oil filters.

10. What are “warranties”? Given an example of one you want for your client. And, discuss
whether the purchase should be “as is” – why or why not. (Hint: Kent S. Jackson, Selling
a Plane, ‘As Is, Where Is,’ AVIATION WK. NETWORK, Aug 26, 2015,
https://jetlaw.com/wp-content/uploads/Selling-a-Plane-As-Is-Where-Is-08-2015.pdf.

A warrantee is a written guarantee issued to the buyer. There are two categories of
warranties: Implied and express warranties. Implied warranties stem from the buyer’s
assumptions when the seller is silent. Express warranties expressly state the warrantee is present.
In my opinion the purchase should not be “as is” because that potentially will put the burden and
risk of reviewing the years of maintenance and flight logs onto the buyer.

11. What is the hobby loss rule? See https://www.aopa.org/go-fly/aircraft-

andownership/buying-an-aircraft/the-pilots-guide-to-taxes.
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The “hobby loss rule” is codified in Internal Revenue Code (IRC) Section 183 which
applies to individuals, LLC’s, and subchapter S corporations. This rule states that if the IRS
determines that your aviation activity is a hobby, expenses related to the activity are deductible,
but only to the extent of the gross income from the hobby activity. In other words, the IRS is
saying that it is not going to allow a write-off of losses you have incurred engaged in a hobby.

12. Briefly summarize what your client will want to know about insurance as part of her
aircraft purchase. See A Few Tips for Buying Aircraft Insurance,
https://www.eaa.org/en/eaa/eaa-news-and-aviation-news/eaa/2013-10-31-a-few-tips-
forbuying-aircraft-insurance.

As part of her aircraft purchase, my client will need to be informed about aspects of
insurance for her aircraft. One should seek this insurance information from an independent
aviation insurance broker who has access to all the independent aviation insurance companies.
This insurance broker will help her discover the options of coverage, terms, and price that are
available to her so that she can make an informed decision when selecting an insurance provider.

13. Change of plans. Your client wants to lease rather than buy the airplane. What is a “wet
lease”? What is a “dry lease”?

A “wet lease” means that the organization or person who owns the aircraft will provide
the aircraft as well as one or more crew members to the lessee. The owner in a wet lease situation
also promises to conduct adequate maintenance and procure the insurance necessary to operate.
In a “dry lease” the owner still provides the lessee with an aircraft, but without a crew. A wet
lease requires an FAA commercial certificate unless authorized under FAR 91.501 or FAR
91.321.

14. What is NBAA and what resources do they offer in connection with aircraft operation
and ownership? Explain briefly. (Hint: https://www.nbaa.org/admin/options/leasing/)

The National Business Aviation Association (NBAA) is the leading organization for
companies that rely on general aviation to help make their business more efficient, productive,
and successful. The NBAA offers expert resources pertaining to best-practices in the safe and
efficient operation of business aircraft such as the International Feedback Database, NBAA
Humanitarian Emergency Response Operator Database, and NBAA Airspace/Airport Alerts to
name a few.

15. Change of plans: Your client wants to use a drone instead of a traditional airplane. How
must she register her aircraft? See https://www.youtube.com/watch?v=Uxad7S9QB1Q.

In order to register her drone client must visit www.faa.gov/uas/registration/ and begin
the registration process. To start client must click “register now”, then create and activate an
account with the FAA. The next step will be for client to fill out the general biographical
information form with her information. After doing that client can proceed to checkout. Client
will be prompted to pay and agree, and then a registration number will be provided. Once all
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these steps are completed client has registered her drone and is ready to go once the registration
number labeled on the drone.