Exam 2

Question 1

What is a tort?

Answer 1

Act or admission that causes injuries to other persons

Question 2

What is negligence?

Answer 2

Failing to do an act that a reasonably careful person would do to protect others from harm
Doing an act that a reasonably careful person wouldn’t do under the same circumstances

Question 3

What does the sudden emergency doctrine state?

Answer 3

Law recognizes that the stress imposed by an in-flight emergency situation may interfere with human decision making

Question 4

What does the assumption of risk doctrine state?

Answer 4

Relieve others of legal responsibility where it’s proven that the injured person

• knew and understood the risk involved
• voluntarily and freely chose to incur that risk

Question 5

After how many years can a GA manufacturer no longer be sued?

Answer 5

18 years or if otherwise specified by a state

Question 6

What’s the best way to avoid getting sued?

Answer 6

Do it right the first time

Question 7

Far more aviation businesses have failed as a result of poor business practices than from poor aviating

Answer 7

True

Question 8

What do you call the owner of a corporation?

Answer 8

Share holder

Question 9

What’s a sole proprietorship?

Answer 9

Owned by a single individual

Question 10

What are the duties to employees?

Answer 10

Workers compensation insurance
Unemployment compensation insurance
Pay agreed wages
Withhold payroll taxes
Provide a safe place to work

Question 11

Who benefits from workers compensation insurance?

Answer 11

The employer

Question 12

Why is workers compensation insurance more beneficial to the employer?

Answer 12

Employee can’t sue the employer

Question 13

Who will show up if you don’t pay your taxes?

Answer 13

IRS

Question 14

What are the basic principles underlying all insurance?

Answer 14

Spreading the risk

Minimizing the risk

Question 15

What’s liability insurance?

Answer 15

Pays for injuries to others in the A/C, persons and property on the ground

Question 16

What are the two distinct types of A/C coverage?

Answer 16

Liability

Hull

Question 17

What can hull coverage cover?

Answer 17

All risks
All risks while not flying
All risks while not in motion

Question 18

What are the typical purposes of use?

Answer 18

Pleasure and business
Industrial aid
Limited commercial
Commercial except instruction or rental
Commercial
Special uses

Question 19

What’s covered under pleasure and business?

Answer 19

Pleasure flying

Personal flying in regards to the insured’s business, excluding any operation for which a charge is made

Question 20

What’s covered under industrial aid?

Answer 20

Includes pleasure and business as well as the transportation of your business buddies (excluding any operation for hire)

Question 21

What’s covered under commercial except instruction or rent?

Answer 21

Includes pleasure and business, industrial aid as well as carrying cargo or pax for hire

Question 22

What’s covered under limited commercial?

Answer 22

Includes pleasure and business, industrial aid, flight instruction and rental but not carrying cargo or pax for hire

Question 23

What’s covered under commercial?

Answer 23

Covers every kind of operation

Question 24

What’s covered under special uses?

Answer 24

Higher level of risk (firefighting, banner and glider towing, fish spotting, crop dusting, pipeline control, medivac)

Question 25

Is it desirable to have an FAR violation exclusion clause on the insurance?

Answer 25

No

Question 26

What's an exculpatory contract?

Answer 26

An agreement between aircraft / airport operator and a participant Participant agrees not to sue the operator if the participant is killed or injured during the operation

Question 27

What operations need an exculpatory contract?

Answer 27

Operations that can't be insured (e.g. skydiving)

Question 28

When is an exculpatory contract appropriate?

Answer 28

1. Operation is not a common carrier operation 2. Law doesn't require operator to have liability insurance 3. Insurance is not available

Question 29

What kind of care does the airline have to have?

Answer 29

Highest degree of care

Question 30

What's the airlines liability for the injury or death of a passenger under the Warsaw Convention?

Answer 30

$8,300

Question 31

What's the airlines liability for the loss or destruction of cargo under the Warsaw Convention?

Answer 31

$16,50 per Kg

Question 32

When does an airline not have to pay for international air cargo claims?

Answer 32

``` Airline took all possible measure to prevent cargo loss Pilot or navigational error Shipper's contributory negligence An act of God, war, or state Nature of the goods caused the damage ```

Question 33

How are the airlines required to deliver the notice to passengers under the Warsaw Convention?

Answer 33

``` Physical paper ticket 10-point type Good-quality paper Good-quality ink Excellent printing press Delivery in a timely and proper manner ```

Question 34

When did the sovereign immunity get thrown out?

Answer 34

1946

Question 35

Under what circumstances can you not sue the government?

Answer 35

Geographic limitation Combatant activity Activities incident to military service Discretionary function

Question 36

Does a NASA report protect you in case of an accident?

Answer 36

No

Question 37

You are not required to report accidents or incidents to the FAA nor are you required to notify the NTSB of every mishap.

Answer 37

True

Question 38

Who and when are you required to notify the NTSB?

Answer 38

The operator of a civil A/C | Notify the nearest NTSB field office immediately and by the most expeditious means

Question 39

What's an A/C accident?

Answer 39

An operation of an A/C which takes place between the time any person boards the A/C with the intention of flight Person(s) suffer death or serious injury A/C receives substantial damage

Question 40

What's a serious injury

Answer 40

Requires hospitalization for more than 48 hours within 7 days from when the injury was received Results in the fracture of any bone (except simple fractures) Causes severe hemorrhages, nerve, muscle or tendon damage

Question 41

What's substantial damage?

Answer 41

Damage or failure which adversely affects the structural strength, performance, or flight characteristics of the A/C Requires major repair or replacement of the affected part

Question 42

When are you required to notify the NTSB?

Answer 42

``` Flight control system malfunction / failure Crew member can't perform duties Turbine engine damage In-flight fire A/C collision in flight Damage to property exceeding $25,000 Overdue A/C Release of a prop blade Damage to helicopter blades A/C ops where the airplanes lands not on the rwy Rwy incursion Flickering of more than 50% of the cockpit displays ```

Question 43

What factors does the IRS use to determine if you're an employee or contractor?

Answer 43

Is required to comply with company instructions about the work Has been trained by the company Is integrated in the company's general business operations Must render services personally Uses assistance provided by the company Has a continuing relationship with the company Is required to work a set number of hours Must work full-time Works on the company's premises Must perform work in preset sequence Must submit regular work progress reports Is paid by the hour week or month Is reimbursed for business and travel expenses Uses company tools and materials Has no significant investment in the facilities that are used Has no risk of loss Works for only one company Doesn't offer services to the public Can be discharged by the company Can quit without incurring liability

Question 44

Are operations under special flight permits insured?

Answer 44

No

Question 45

What do you have to do to keep your A/C insurance current?

Answer 45

Prevent accidents! Protect the policy Renew your policy