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1) What required source has priority for services? Services which are on the Procurement List maintained by the Committee for Purchase From People Who Are... [Show More] Blind or Severely Disabled. 2) The contracting officer can terminate a commercial purchase order for cause All choices are correct. 3) When no other exceptions apply, is a Government Point of Entry (GPE) synopsis required for purchases estimated to exceed $25,000 but not to exceed the simplified acquisition threshold? Yes 4) Which type of item is LEAST preferred for satisfying Government requirements? Developmental item 5) Acquisitions for supplies and services exceeding $3,500, but not exceeding $150,000, are automatically reserved exclusively for small business concerns unless the contracting officer Determines that they will be unable to obtain two or more offers from small businesses that are competitive in terms of market price, quality, and delivery 6) You have a request to buy 30 units of commercially available machining equipment. Each unit will cost approximately $300,000 SAP cannot be used. 7) Which method of purchase is most appropriate for requirements exceeding the micro-purchase threshold? Electronic Commerce 8) The Director of Training for the installation has a request to purchase 25 televisions and 25 DVD recorders for the new training facility that will open next month. Each television will cost approximately $525, and each DVD recorder about $300. SAP can be used. 9) There is a requirement to purchase recreational equipment for base playgrounds. Market research has determined that there is a large variety of play equipment available to the general public from many manufacturers. This type of item is a: Commercial item 10) What is the public announcement requirement for micro-purchases? No formal announcement is required. 11) Which of the following are acceptable techniques for conducting market research? All techniques listed are acceptable. 12) You have been requested to procure custodial services for your installation. Your market research has indicated that: - A Nonprofit Agency Employing People Who Are Blind or Severely Disabled can provide the custodial services for $95,000. - Federal Prison Industries can provide the custodial services for $93,000. - R-Clean can provide the custodial services for $92,500 and has outstanding past performance. - Rub-A-Scrub can provide the custodial services for $91,500 and has satisfactory past performance. Who must receive the award? Nonprofit Agency Employing People Who Are Blind or Severely Disabled 13) You have a requirement to buy janitorial services for your facility. There has been a history of performance and customer service problems with the present and past contractors. Your evaluation criteria for the follow-on solicitation should contain a factor for: Past performance 14) A non-developmental item is: Any previously developed item used exclusively for governmental purposes. 15) Fulfilling repetitive needs for supplies may best be satisfied by: Establishing blanket purchase agreements 16) The status information contained in the System for Award Management (SAM) and additional vendor files maintained by the contracting office, if any, may be used as the basis to ensure that small business concerns are provided the maximum practicable opportunities to respond to solicitations issued using simplified acquisition procedures. True 17) Implied warranty of fitness for a particular purpose means that an item is: Fit for use for the particular purpose for which the Government will use the item. 18) Market research shall be conducted: Before soliciting offers for acquisitions with an estimated value less than the simplified acquisition threshold when adequate information is not available and the circumstances justify its cost. 19) A contract option may be exercised: Only if the contractor agrees. 20) When making a commercial purchase, you may conduct an in-process inspection: Only if consistent with customary commercial practice. 21) When should electronic commerce be used as a method of solicitation? Whenever cost-effective and practicable. 22) You have a requirement to buy a large commercially available, prefabricated wash rack for the installation. The catalog price is $102,000. Simplified acquisition procedures can be used. 23) An offeror's experience as an evaluation factor consists primarily of: Their history of completing similar contracts and quality of their performance. 24) Your base commander wants 25 employees in the personnel department to attend a 1-day time-management seminar. The cost per employee will be $75 each. What is the preferred method of purchase? The Governmentwide commercial purchase card 25) You have a requirement to buy 10 commercially available Doppler weather systems for 10 aircraft. The total estimated cost is $135,000. What is the preferred method of purchase? Purchase order 26) The use of required sources of supplies or services takes precedence over the use of simplified acquisition procedures. True 27) The public works department at your Federal facility needs to buy repair parts for a water fountain in the building. The parts will cost about $100 and can be bought at Nuts-n-Bolts Hardware. Which method of purchase is preferred? The Governmentwide commercial purchase card 28) By soliciting two sources under SAP, you have satisfied the requirement to obtain competition to the maximum extent practicable. False 29) Evaluation factors such as price and past performance are: Used to evaluate responses to a solicitation. 30) An oral solicitation may be used for: Construction less than $2,000. You should use SAP when: The estimated value of the requirement is equal to or less than the SAT. 2) You have a requirement to purchase military transport vehicles that can travel over rough terrain. Market research has shown that there are no commercially developed or Government developed items that satisfy the terrain requirements. This type of item is a: [Determine if a requirement can be satisfied by purchasing a commercial or non-developmental item. (Noncommercial Items)] Developmental item Market research is performed: To determine if commercial or non-developmental items will satisfy the need What should be the last source to consider when trying to fulfill a requirement? Commercial sources You have been requested to buy 100 hospital beds for a humanitarian effort in Pedonia. The beds need to be delivered within the next 30 days so they can be airlifted to Pedonia via military transport. Your research has indicated that: - NIB/NISH does not supply beds. - Federal Prison Industries can deliver the beds in 45 days. The price per bed is $250. - A-Med, Inc. can deliver the beds in 15 days at a price of $225 per bed. - The Army hospital on post, which has been closed, will have 150 suitable excess beds in 21 days. Based upon this information, you should: Obtain the beds from the Army hospital inventory. Requirements that cannot be met by a required source of supplies or services and are expected to ___________ are automatically reserved exclusively for small businesses. Exceed $3,500, but not exceed $150,000 [Show Less]
Enrique has $50 in his lunch account and spends $5 per day from the account. Maya has $46 in her lunch account and spends $4 per day from the account. Whic... [Show More] h equations model the situation? A. 50 - 5x = y and 46 - 4x = y Danae is choosing between two jobs. One job pays an annual bonus of $1,500 plus $120 per day worked. The second job pays an annual bonus of $2,500 plus $110 per day worked. Which equation can be solved to determine after how many days, d, Danae would make the same amount of money regardless of the job she chooses? C. 120d + 1,500 = 110d + 2,500 A factory has fixed costs of $1,275 per month. The cost of producing each unit of its product is $2.50. Each unit sells for $10. The equations that model the cost and revenue for producing x units are shown. Cost: C(x) = 1275 + 2.5x Revenue: R(x) = 10x If the company sells every unit it produces, how many units must it sell in order to break even? 170 Bryan's monthly electric bill is determined by adding a flat administration fee to the product of the number of kilowatt hours of electricity used and the cost per kilowatt hour. When he uses 1,100 kilowatt hours of electricity, his bill is $113. When he uses 1,500 kilowatt hours of electricity, his bill is $153. What is the monthly administration fee? $3 Dalia flies an ultralight plane with a tailwind to a nearby town in 1/3 of an hour. On the return trip, she travels the same distance in 3/5 of an hour. What is the average rate of speed of the wind and the average rate of speed of the plane? Initial trip: Return trip: Let x be the average airspeed of the plane. Let y be the average wind speed. Initial trip: 18 = (x + y) Return trip: 18 = (x - y) Dalia had an average airspeed of miles per hour. The average wind speed was miles per hour. 42, 12 Charlotte's weekly paycheck is based on the number of hours worked during the week and on the weekend. If she works 13 hours during the week and 14 hours on the weekend, she earns $250.90. If she works 15 hours during the week and 8 hours on the weekend, she earns $204.70. How much more does Charlotte earn per hour on the weekends than she earns during the week? Round to the nearest cent. $2.30 Mr. Yi buys vegetables at a market. He purchases 6 pounds of potatoes, p, and 3 pounds of onions, n, for $18. Onions cost twice as much as potatoes. To determine the unit price for each item, his daughter sets up and solves the system of equations shown. 6p + 3n = 18 and 2n = p 6(2n) + 3n = 18 12n + 3n = 18 15n = 18; n = $1.20 Onions cost $1.20 per pound. Analyze the daughter's solution. Which statements are true? Check all that apply. The equation 2n = p should be 2p = n. The actual cost of the onions is $3.00 per pound. Potatoes cost $1.50 per pound. The table below models the cost, y, of using a high-efficiency washing machine and a standard washing machine over x number of years. Which equation represents the cost of the high-efficiency washing machine over a given number of years? Which equation represents the cost of the standard washing machine over a given number of years? After how many years of use would the washing machines cost the same amount? Which washing machine would be the more practical purchase if kept for 9 years? 1. y=25x+500 2. y = 30x + 400X 3. 20 4. standard machine Zorah, a musician, pays $120 to have her instrument tuned and $10 per hour for a booth at a fair. She estimates that she earns $25 per hour in tips. The equation can be used to represent the break-even point. 120 + 10x = 25x How many hours, x, will Zorah have to play in order to break even? 8 An aircraft travels with the wind for 120 miles in 0.75 of an hour. The return trip is flown against the wind and takes exactly 1 hour. Which system of linear equations represents x, the speed of the plane in miles per hour, and y, the speed of the wind in miles per hour? Recall the formula d = rt. 0.75(x + y) = 120 x − y = 120 A store sells both cold and hot beverages. Cold beverages, c, cost $1.50, while hot beverages, h, cost $2.00. On Saturday, drink receipts totaled $360, and 4 times as many cold beverages were sold than hot beverages. Which system of linear equations represents the beverage sales on Saturday? c = 4h 1.5c + 2h = 360 Nina is 10 years younger than Deepak. Deepak is 3 times as old as Nina. Which system of equations can be used to find d, Deepak's age, and n, Nina's age? d = n + 10 d = 3n Micah rows his boat on a river 4.48 miles downstream, with the current, in 0.32 hours. He rows back upstream the same distance, against the current, in 0.56 hours. Assuming his rowing speed and the speed of the current are constant, what is the speed of the current? 3 miles per hour A business owner pays $1,200 per month in rent and a total of $120 per hour in employee salary for each hour the store is open. On average, the store brings in $200 in net sales per hour. Which equation can be solved to determine the break-even point if x represents the number of hours per month the store is open? 200x - 120x = 1,200 At his new job, Jeremiah can choose an hourly rate of $9 plus a $50 weekly bonus for opening the store, or an hourly rate of $10 per hour with no opening bonus. The equations model his salary options. y = 9x + 50 y = 10x What does x represent? the number of hours worked per week A graphics company charges $50 per hour to create a logo plus $250 for the ownership rights of the logo. A private contractor charges $75 per hour to develop a logo plus a $100 supply fee. Which equation can be solved to determine x, the number of hours after which the costs would be the same? 50x + 250 = 75x + 100 Bethany has $3.10 in nickels and dimes. She has a total of 44 coins. What is the value of the nickels Bethany has? $1.30 Lily sold 18 items at the street fair. She sold bracelets for $6 each and necklaces for $5 each for a total of $101. Which system of equations can be used to find b, the number of bracelets she sold, and n, the number of necklaces she sold? b + n = 18 6b + 5n = 101 [Show Less]
You have a requirement for eight units of a non-commercial item. Each item is estimated to cost $35,000. ... The Director of Training for the inst... [Show More] allation has a request to purchase 25 televisions and 25 DVD recorders for the new training facility that will open next month. Each television will cost approximately $525, and each DVD recorder about $150 ... The preferred type of item to satisfy agency needs : If a commercial item cannot be found to satisfy the Government requirement, the Government should, as the next step: ... If market research indicates a commercial or non-developmental item might not be available to satisfy agency needs: ... You have a requirement for specific telecommunications components. A single telecommunications manufacturer provides these components to the general public. The estimated cost of these components is $145,000. Simplified acquisition procedures can be used. You should use SAP when The estimated value of the requirement is equal to or less than the SAT You have a requirement to purchase military transport vehicles that can travel over rough terrain. Market research has shown that there are no commercially developed or Government developed items that satisfy the terrain requirements. This type of item is a: Developmental item A presolicitation conference is one technique used to conduct market research true The required sources of supplies and services can be found in: FAR Part 8 The priority for required sources of supplies is: Agency inventories, excess from other agencies, Federal Prison Industries, Committee for Purchase from People Who are Blind or Severely Disabled, governmental wholesale supply sources, commercial sources. Micro-purchases are: Unrestricted The status information contained in the System for Award Management (SAM) and additional vendor files maintained by the contracting office, if any, may be used as the basis to ensure that small business concerns are provided the maximum practicable opportunities to respond to solicitations issued using simplified acquisition procedures. true You have a requirement for specific telecommunications components. A single telecommunications manufacturer provides these components to the general public. The estimated cost of these components is $145,000. Simplified acquisition procedures can be used. What is the preferred method of solicitation when conducting simplified acquisitions over the micro-purchase threshold? Electronic Commerce Fulfilling repetitive needs for supplies may best be satisfied by: Establishing blanket purchase agreements What is the preferred method of solicitation for requirements over the micro-purchase threshold? Electronic commerce Why are oral solicitations not normally used for requirements exceeding $25,000? A GPE notice is required for requirements exceeding $25,000, unless exempt. What is the public announcement requirement for micro-purchases? No formal announcement is required synopsis and a solicitation may be combined when acquiring commercial items true By soliciting two sources under SAP, you have satisfied the requirement to obtain competition to the maximum extent practicable. false If a solicitation states that evaluation of quotes will be inclusive of option years, it means: The evaluated price includes the base period and all option periods An offeror's experience as an evaluation factor consists primarily of Their history of completing similar contracts and quality of their performance. You have a requirement for ship repair that will require a unique welding technique. You only know of a few firms that have performed this technique and selecting an inexperienced contractor could be disastrous. As such, you should primarily consider evaluating offerors' Experience You may cancel a unilateral purchase order if The contractor accepts the cancellation and does not claim costs were incurred from beginning performance. You have a requirement to purchase equipment that was previously developed at Government expense and sold exclusively to the military. This type of item is: non developmental Which of the following should not affect how market research is performed? The number of people in the contracting office Steve wants to buy eight five-shelf bookcases for his staff's new office space. The staff will be moving to their new location in 3 months. His existing office space will be occupied by another office and the existing bookcases will remain there. Market research has indicated that: - Federal Prison Industries has a delivery date of 6 months after the receipt of the order. They have a five-shelf bookcase for $139. - NIB/NISH (Committee for Purchase From People Who Are Blind or Severely Disabled) does not manufacture bookcases. - Scissors and Tape, Inc., a commercial source, can deliver 2 months after the receipt of order. They have a five-shelf bookcase for $255. - Furniture U.S.A., also a commercial source, can deliver 3 days after the receipt of order. They have a five-shelf bookcase for $145. What action should you take? Try to get the staff move delayed so the purchase can be made from Federal Prison Industries. What method of purchase is preferred to purchase 10 computer mouse pads, at $3.95 each? The Governmentwide commercial purchase card A training facility needs to purchase 50 binders from a local office supply store. The price for the binders is $20 each. What is the preferred method of purchase? The Governmentwide commercial purchase card You have a requirement to purchase drug testing services for transportation employees. The estimated dollar amount for this testing is $75,000. What is the preferred method of purchase? Purchase order When making a commercial purchase, you may conduct an in-process inspection: Only if consistent with customary commercial practice. In acquisitions for commercial items, the terms of an express warranty should be Consistent with customary commercial practice. A contract option may be exercised: ... You have a request to buy 30 units of commercially available machining equipment. Each unit will cost approximately $300,000 SAP cannot be used. What required source has priority for services? Services which are on the Procurement List maintained by the Committee for Purchase From People Who Are Blind or Severely Disabled. The contracting officer can terminate a commercial purchase order for cause All choices are correct. When no other exceptions apply, is a Government Point of Entry (GPE) synopsis required for purchases estimated to exceed $25,000 but not to exceed the simplified acquisition threshold? Yes Which type of item is LEAST preferred for satisfying Government requirements? Developmental item Acquisitions for supplies and services exceeding $3,500, but not exceeding $150,000, are automatically reserved exclusively for small business concerns unless the contracting officer Determines that they will be unable to obtain two or more offers from small businesses that are competitive in terms of market price, quality, and delivery Which method of purchase is most appropriate for requirements exceeding the micro-purchase threshold? Electronic Commerce The Director of Training for the installation has a request to purchase 25 televisions and 25 DVD recorders for the new training facility that will open next month. Each television will cost approximately $525, and each DVD recorder about $300. SAP can be used. There is a requirement to purchase recreational equipment for base playgrounds. Market research has determined that there is a large variety of play equipment available to the general public from many manufacturers. This type of item is a: Commercial item What is the public announcement requirement for micro-purchases? No formal announcement is required. Which of the following are acceptable techniques for conducting market research? All techniques listed are acceptable. You have been requested to procure custodial services for your installation. Your market research has indicated that: - A Nonprofit Agency Employing People Who Are Blind or Severely Disabled can provide the custodial services for $95,000. - Federal Prison Industries can provide the custodial services for $93,000. - R-Clean can provide the custodial services for $92,500 and has outstanding past performance. - Rub-A-Scrub can provide the custodial services for $91,500 and has satisfactory past performance. Who must receive the award? Nonprofit Agency Employing People Who Are Blind or Severely Disabled You have a requirement to buy janitorial services for your facility. There has been a history of performance and customer service problems with the present and past contractors. Your evaluation criteria for the follow-on solicitation should contain a factor for: Past performance A non-developmental item is: Any previously developed item used exclusively for governmental purposes. Fulfilling repetitive needs for supplies may best be satisfied by: Establishing blanket purchase agreements The status information contained in the System for Award Management (SAM) and additional vendor files maintained by the contracting office, if any, may be used as the basis to ensure that small business concerns are provided the maximum practicable opportunities to respond to solicitations issued using simplified acquisition procedures. True Implied warranty of fitness for a particular purpose means that an item is: Fit for use for the particular purpose for which the Government will use the item. Market research shall be conducted: Before soliciting offers for acquisitions with an estimated value less than the simplified acquisition threshold when adequate information is not available and the circumstances justify its cost. A contract option may be exercised: Only if the contractor agrees. When making a commercial purchase, you may conduct an in-process inspection: Only if consistent with customary commercial practice. When should electronic commerce be used as a method of solicitation? Whenever cost-effective and practicable. You have a requirement to buy a large commercially available, prefabricated wash rack for the installation. The catalog price is $102,000. Simplified acquisition procedures can be used. An offeror's experience as an evaluation factor consists primarily of: Their history of completing similar contracts and quality of their performance. Your base commander wants 25 employees in the personnel department to attend a 1-day time-management seminar. The cost per employee will be $75 each. What is the preferred method of purchase? The Government wide commercial purchase card You have a requirement to buy 10 commercially available Doppler weather systems for 10 aircraft. The total estimated cost is $135,000. What is the preferred method of purchase? Purchase order The use of required sources of supplies or services takes precedence over the use of simplified acquisition procedures. true The public works department at your Federal facility needs to buy repair parts for a water fountain in the building. The parts will cost about $100 and can be bought at Nuts-n-Bolts Hardware. Which method of purchase is preferred? The Governmentwide commercial purchase card By soliciting two sources under SAP, you have satisfied the requirement to obtain competition to the maximum extent practicable. false Evaluation factors such as price and past performance are: Used to evaluate responses to a solicitation. An oral solicitation may be used for: Construction less than $2,000. You should use SAP when: The estimated value of the requirement is equal to or less than the SAT. You have a requirement to purchase military transport vehicles that can travel over rough terrain. Market research has shown that there are no commercially developed or Government developed items that satisfy the terrain requirements. This type of item is a: [Determine if a requirement can be satisfied by purchasing a commercial or non-developmental item. (Noncommercial Items)] Developmental item Market research is performed: To determine if commercial or non-developmental items will satisfy the need What should be the last source to consider when trying to fulfill a requirement? Commercial sources You have been requested to buy 100 hospital beds for a humanitarian effort in Pedonia. The beds need to be delivered within the next 30 days so they can be airlifted to Pedonia via military transport. Your research has indicated that: - NIB/NISH does not supply beds. - Federal Prison Industries can deliver the beds in 45 days. The price per bed is $250. - A-Med, Inc. can deliver the beds in 15 days at a price of $225 per bed. - The Army hospital on post, which has been closed, will have 150 suitable excess beds in 21 days. Based upon this information, you should: Obtain the beds from the Army hospital inventory. Requirements that cannot be met by a required source of supplies or services and are expected to ___________ are automatically reserved exclusively for small businesses. Exceed $3,500, but not exceed $150,000 You have a one-time requirement for construction of a sidewalk between two buildings. The estimated cost is $10,000. What is the preferred method of purchase? Purchase order In order to use simplified acquisition procedures (SAP), the aggregate value of the acquisition and all its options: CANNOT exceed the simplified acquisition threshold, except for certain commercial items. The simplified acquisition methods should be used for all purchases of supplies or services not exceeding the Simplified Acquisition Threshold. FAR 13 When using the simplified acquisition methods for commercial items, acquisitions do not exceed $6.5 million. FAR 13 Generally, each acquisition of supplies or services is reserved exclusively for small business concerns and shall be set aside if the anticipated dollar value exceeding $3,000 and not exceeding $150,000. FAR 13 When use simplified acquisition methods, some considerations are promote competition to the maximum extent practicable; establish reasonable deadlines for submission of responses to solicitations; consider all quotations or offers that are received on time, and; use innovative approaches to the maximum extent practicable. FAR 13 When acquiring products/services through the simplified acquisition methods, a contract officer must clearly articulate the basis upon which the award will be made. FAR 13.1 Micro-purchases may also be used for certain contingency operations or defense for certain contingency operations or defense against or recover from attacks. What is the threshold for contracts awarded & performed inside the US and outside the US? $15,000 inside US and $30,000 outside US. FAR 13.3 What is the government wide commercial purchase card authorized to pay for? supplies, services, or construction. FAR 13.301 Third-Party Draft does not exceed $2,500. FAR 13.305 Third-Party Draft means an agency bank draft, similar to a check that is used to acquire and to pay for supplies & services. FAR 13.305 BPAs are appropriate when requirements exist for a wide variety of items; there is a need to provide commercial sources of supply for one or more offices in a given area; writing numerous POs; there is no existing requirements contract for the same supply or service. FAR 13.303 BPAs may be established with more than one supplier for supplies or services of the same type to provide maximum practicable competition; a single firm from which numerous individual purchases at or below the SAT will likely be made in a given period; or FSS contractors. FAR 13.303 BPAs include a description of the agreement, the extent of obligation, pricing, purchase limitations, notice of individuals authorized to place order, delivery tickets, & invoices. FAR 13.303 Normally, purchases using Imprest fund or third-party drafts should be placed how and without solicitating competition if prices are considered reasonable? Orally. FAR 13.305 A multipurpose pocket-sized purchase order form designed primarily for on-the-spot, over-the-counter purchases is a SF 44 Purchase Order-Invoice-Voucher. FAR 13.3 SF 44 Purchase Order-Invoice-Voucher may be used when the amount of purchase is at or below the micro-purchase: the supplies or services are immediately available; 1 delivery & 1 payment will be made; its use is determined to be more economical & efficient than SAP. FAR 13.3 A contract option may be exercised: ... The contracting officer can only terminate a purchase order for convenience: ... When buying a commercial item, an in-process inspection of the product need not be consistent with commercial practice. ... An offeror's past performance as an evaluation factor consists of: ... Evaluation factors are: ... An oral solicitation may be used for: The acquisition does not exceed the SAT ; • Oral solicitation is more efficient than soliciting through available electronic commerce alternatives; and • A synopsis is not required or an exception applies. • This may rule out oral solicitations for procurements above $25,000 You must establish and maintain records forfor oral price quotations so you can demonstrate the propriety of placing the order at the price paid with the supplier concerned When should electronic commerce be used as a method of solicitation? ... [Show Less]
A real estate brokerage firm specializing in large farm and ranch properties scattered across the rural Midwest and western United States hires you to buy ... [Show More] a suitable airplane and set up a flight department to enable the company to transport prospective buyers to view these properties. The company will make its money from real estate sales, and there will be no charge to these customers for the air transportation. You are about to buy the aircraft insurance policy. a. What is the appropriate purpose of use to cover the proposed operations? Why? b. On the hull coverage, what risks will you insure against? Why? c. What method of valuation will you select for the event of a total loss? Why? d. Will a policy containing an FAR violation exclusion clause be acceptable? Why? e. The company's bank, which has no prior aircraft financing experience, is willing to finance a portion of the purchase price of the aircraft if (and only if) you can ensure that even if the aircraft is destroyed in an accident, any unpaid balance on the loan will be paid in full. Can you accomplish that through your aircraft insurance even if the circumstances of the accident were such that the insurance company would not have to pay the aircraft owner (such as if the aircraft was being flown by an unqualified pilot at the time of the accident)? If so, describe. a.Industrial Aid b.All risk. It covers anything that might happen. c.Stated Value - so I get paid what the aircraft cost. d.No - Fars are sweeping in scope and more than likely a violation can be discovered. If so - no pay e.Yes, through hull coverage with the leader as the loss payee ** lien holders interest e-dorsement*** You are camped beside you floatplane on the shore of a remote lake in the Alaskan wilderness. A friend who operates the same make and model as yours and knows where your favorite fishing hole is stops by to bring you a copy of a new Airworthiness Directive (AD) that the FAA has just issued against these aircraft. The AD requires that a certain test be performed "before further flight." The equipment needed to perform the test is not portable and the only repair facility in the state with that equipment is located over 500 miles away in Anchorage. Therefore, you will be required to obtain a special flight permit (ferry permit) from the FAA in order to legally fly the aircraft from your present location to the repair station where the AD can be complied with. a. Do most aircraft insurance policies cover operations under a special flight permit? b. What would be the prudent thing to do about your aircraft insurance coverage before taking off from the lake? Why? a. no b. Purchase additional coverage for the "ferry flight" For each of the following events, indicate whether the event triggers considerations relating to your aircraft insurance policy, and explain why. a. The aircraft is to be used for a different purpose than before. b. A different pilot will be flying the aircraft. c .The aircraft is going to be flown outside the contiguous (lower 48) United States. d. You have upgraded the aircraft's avionics, adding significantly to its value. e. You are going to fly the aircraft to Santa Fe, New Mexico. f. You have finally paid off the loan you took to purchase the aircraft. g. You sell the aircraft. a. If changed it will not cover, review policy you may need additional coverage. b. They must be qualified. c. Yes, chances are you'll need extra coverage. Review geographical boundaries. d. Need to upgrade product liability. Increase state of value policy. e. no f. No longer need lien holder. g. Cancel insurance once sale is final. What is subrogation, and how can renter pilots be protected against it? is the right of an insurance company who paid a claim to sue anyone other than the insured who contributed to the cause of an accident. renter pilots can be protected by purchasing a wavier of subrogation endorsement. While filling out your application for aircraft insurance, you round off your total flight time to the next higher 100 hours. You are issued an aircraft insurance policy based on that application but have an accident that causes extensive damage to the aircraft before you actually accumulate the total number of hours you reported on your application for that insurance policy. Is the insurance company obligated to pay for repair of the aircraft? Explain. Never round off While you believe that you have now accumulated over 10,000 hours of flight time, it has been your habit to record in your pilot logbook only time required by FAR to be logged to show proficiency, so you have logged only 3,000 hours of flight time. Which figure should you use in your application for aircraft insurance? Why? 3,000 - its what you can prove. Your airplane crashed, and a passenger was injured. You are absolutely certain the accident was not your fault. Does your insurance company have to get your permission to pay a settlement to the injured passenger? No, they are prohibited because that would interfere with effected damages being suffered by the insured. You are opening an aircraft repair station that will inspect, repair, and modify customer's aircraft, providing necessary parts in the process. The business has its own hangar, where the work will be performed, and offices including a reception area and pilot lounge for customers along one side of the hangar. The business will not own or operate any aircraft. What insurance coverages will the business need? 1. Product liability insurance 2. hanger keeper unemployment 3. Airport liability policy 4. umbrella policy State the appropriate aircraft insurance purpose of use for each of the following operations: a. A flight school b. An air charter company c. An air cargo company d. Forest fire fighting e. A full-service FBO f. A corporate jet g. A sport plane for personal recreational acrobatic flying h. A sport plane for commercial dual acrobatic instruction i. A hot-air balloon for personal recreational flying j. A hot-air balloon for hire for rides k. A hot-air balloon for commercial bungee jumping l. Crop spraying m. A commercial civilian "Introduction to air combat maneuvering" school, using former military aircraft. a. limited commercial b. Commercial except instruction or rental c. Commercial except instruction or rental d. Special Uses e. Commercial f. Industrial aid g. special use h. Limited commercial i. Pleasure and business j. Except instruction or rental k. not covered l. Special use m. Special use Limited commercial When you receive your aircraft insurance policy, what should you do with it? read it and double check it. Your corporate flight department typically transports very highly paid customers of the company, but your aircraft insurance policy has a liability limit of $100,000 per passenger seat (which wouldn't even begin to cover the probable judgment if even one of these high rollers was killed or injured in the crash of one of your company's aircraft). If you are unable to purchase aircraft insurance with liability limits sufficiently high to cover a typical plane load of non-employee passengers (the company's employee passengers are covered by worker's compensation insurance), is any other insurance available to cover liability above and beyond the aircraft insurance policy's liability limits? If so, describe. excess liability coverage because that kicks in when you have exhausted the normal policy limits. Your aircraft insurance company hears a credible rumor that although you are not a licensed aircraft mechanic, you are doing all of the inspections and maintenance on your aircraft, and an accommodating A&P Mechanic with Inspection Authorization is signing off all your work, sight unseen, for a modest fee. You have not yet had an accident, incident, or claim. a. What is your aviation insurance company likely to do as a result of receiving this information? b. Would this action by your insurance company have any effect on your future ability to purchase aircraft insurance? a. Investigate/If found guilty - cancel your policy b. Yes, it will cost more now, if you can get it What effect has the General Aviation Revitalization Act (GARA) had on products liability for aircraft manufacturers, repair stations, and mechanics? It has driven up product liability insurance costs You manage the flight department that operates a dozen multimillion-dollar jets transporting executives, guests, and customers for a corporation that does business internationally. One of the nations where the corporation does very lucrative business is experiencing civil unrest characterized by increasingly violent anti-government and anti-western demonstrations. The corporation's legal department is concerned that the corporation's present aircraft insurance policy might not cover the kind of risks that are developing in that nation, since the policy includes Lloyd's form AVN 48B, captioned "War, Hi-jacking, and Other Perils Exclusion Clause." Is there a way to insure this risk? If so, describe. ... What is an exculpatory contract? an agreement not to sue for death Which affords you better protection from liability losses: an exculpatory contract or adequate liability insurance? Adequate liability insurance You manage an air charter company operating under FAR Part 135. The premium for the liability portion of your aircraft insurance is one of the business's major expenses. Can the company drop that insurance and protect itself by having passengers sign an exculpatory contract instead? Why? No, by law you must have liability insurance Are there any states in which exculpatory contracts are void and unenforceable as a matter of law? If so, where? Yes, New York Can an enforceable exculpatory contract be created by "fine print" on the back of an admission ticket to an air show if the ticket is neither read nor signed by the spectator? yes You are starting a commercial operation offering suborbital space flights. You find that you cannot buy liability insurance for this operation, at any price. What, if anything, can you do to manage the risk of liability for injury to your wealthy but adventuresome passengers? exculpatory contract become a corporation You are operating a commercial skydiving school. Before jumping, each parachutist is required to sign an exculpatory contract drafted by the school's lawyer. Assume the contract to be legally valid in your state. A jumper experiences a main parachute malfunction and fails to follow the proper sequence of emergency procedures to deploy her reserve parachute, so that is becomes entangled with the malfunctioned main chute. Plummeting to earth at a high rate of speed, the jumper lands on a resident who is mowing his lawn, killing them both. a. Will the exculpatory contract protect the skydiving school from a lawsuit by the jumper's spouse claiming that the school negligently trained and supervised the jumper? Explain. b. Will the exculpatory contract protect the school against a lawsuit by the spouse of the deceased resident, claiming that the school was negligent in training and supervising the parachutist? Why? Yes, assuming it is properly written. No, resident spouse is not part of the contract You are operating a commercial civilian air combat maneuvering school. Because you have found the cost of aircraft liability insurance for these operations prohibitive, you are having each customer of your $500 "fighter pilot for a day" program sign an exculpatory contract. A sharp, mature, and robust local high school football star has received a gift certificate for your course as a seventeenth-birthday present from his parents. a. If he signs your exculpatory contract, will that protect you and your business from a lawsuit in the event that he is injured? b. Are there any other measures you can take to strengthen the legal effect of his exculpatory contract? c. What will you do, and why? No, he is a minor Have his parents sign for him Don't let minors do the activity From the standpoint of legal liability for negligence, what difference does it make whether a domestic commercial flight is a common-carrier or a contract-carrier operation? Common carrier is held to the greatest degree of human care and foresight possible to ensure the passengers are safe. is the assumption of risk defense available to an airline to defend against lawsuits brought by injured passengers or the survivors of passengers killed in an airline crash? Why? No, courts recognize the statistics that commercial airline travel is the safest means of travel, passengers are not chasing to incur additional "known risks" by flying What is an airline tariff? Complete agreement that you have between passenger and airline. Can an airline use its tariffs to limit its potential liability to passengers or shippers? If so, describe. They can for cargo and luggage, but not passengers. Change statute of limitations Can an airline use its tariffs to limit the airline's liability for passenger injury or death? Why? No, only cargo There is a policy to protect human health and safety Can a mixture of domestic and international passengers be on the same flight? yes How can you tell whether a person is a domestic or an international passenger? Describe. On ticket, origin is a different country then destination What treaty is now the primary source of law governing the legal relationship between airlines and their international passengers? Montreal Convention of 1999 It is a snowy and bitterly cold winter day in Cleveland when the commuter airline flight from Montreal, Canada, pulls up to the gate. As the international passengers are walking across the ramp from the airliner to the terminal building, one of them slips on an icy patch and suffers an injury. Is the airline liable for this passenger's injury? Why? Are there any artificial dollar limits on that liability? 1. Strictly liable - in excess of $100,000 SDR's (Special Drawing Rights) of proven damage 2. All compensatory damages IF airline can prove "without fault" 3. No punitive damages If in the previous question the flight came from Chicago and the passenger who fell was a domestic passenger, under what circumstances and to what extent would the airline be liable for the passenger's injury? the airline is liable until the passenger leaves the airline gate area after deplaning. domestic liability is unlimited A domestic passenger and an international passenger are standing side by side in the airline terminal's baggage claim area waiting for their bags to arrive when a lone terrorist walks up and detonates his suicide vest, killing them both. Is the airline liable for either death? Explain. no because the passengers have departed the airlines gate. What effect does the Montreal Convention have on the legal liability of anyone other than the airline (for example, the aircraft's manufacturer, air traffic controllers, or the airport owner/operator) for the death or injury of an international airline passenger? None - it only deals with airline Snow Bird Airlines flight 13 provides nonstop service between Anchorage and Phoenix. All passengers aboard today's flight are ticketed from Anchorage to Phoenix and none has an origin or destination in another country on his or her ticket. A pressurization problem arises en route, and the crew decides to make a precautionary landing in Vancouver, Canada. If this attempted stop in Canada leads to an accident will the Montreal Convention apply? Why? ... Aero Cargo flight 13 provides nonstop service between Bogota, Columbia and Miami. Prior to takeoff from Bogota, the crew is unable to start one of the engines on the aging four-engine DC-7C. Advised of the problem, the company's chief pilot and vice president of operations orders the crew to proceed on schedule with the cargo using the three functioning engines (a procedure known in the company as "attempting an air start"), making it clear that if the pilots do not comply, they will be fired. The pilots attempt the takeoff, but the aircraft is not airborne at the end of the runway, where it crashes and burns. What is the airline's liability, if any, for the resulting destruction of the cargo if both the United States and Columbia have ratified the Montreal Convention? ... What effect has ratification of the Montreal Convention had on the volume of litigation of claims for injury to international airline passengers? There would be little or no litigation Less lawsuits [Show Less]
Airspace Industry 1. Aircraft (manned and unmanned) 2. Missiles 3. Spacecraft and Launch Vehicles 4. Propulsion, guidance and control units for a... [Show More] ircraft, missiles, and space systems 5. Ancillary ground and air based systems essential for the operation and testing of all the above. Industry Associations 1. Aerospace Industries Association (AIA) commercial and military aircraft, helicopters, spacecraft, component parts. 2. General Aviation Manufacturers Association (GAMA) light aircraft and component parts. Main Customers Government usually between 2/3 and 3/4 output purchased by government. Commercial 6 out of 10 air transport aircraft are of U.S manufacture. Economic Impacts Trade Balance strong demand abroad leads to trade surplus with foreign nations; Employment although cyclical the aerospace industry employees many people; Economic Profile of the Industry Activity: Civil and Military aircraft: ~ 54-55% Space Fabrication: ~ 21-25% Related Products and Services: ~ 16-17% Missile Systems: ~ 5-6% Cyclic Industry As defense budgets change and as foreign economies rise and fall so does the health of the industry. As defense sales slide, sales to civilian customers typically increases. Industry still one of leading employers. Due to a multiplier affect, the industry accounts for over 2 million jobs. Ratio of salaried to production workers is about equal. The U.S. industry has consistently shown an aerospace trade surplus in the international markets. Industry Suppliers Much aerospace work is highly specialized and therefore, in order to save money, it is contracted out to various suppliers. Suppliers are predominately U.S. companies; therefore, aerospace has a large impact on the domestic economy; Aerospace industry is a major consumer of goods and services not strictly related to aerospace. The Government Market Aerospace industry is dominated by defense/government contractors. NASA and DOD account for over 45% of aerospace purchases. Defense Contractors Nuclear arsenals are being reduced and defense industry is shrinking and consolidating; Initially the industry attempted cost cutting by trimming personnel expenditures and limiting new R&D. DOD expenditures have decreased by approximately 40% since 1987. Current focus is on improving design and manufacturing processes and inventory control (holding excess inventory is very expensive). Traditional defense sector suppliers are exploring the commercial aviation marketplace. Diversification into the civil arena could, if successful, broaden their non-defense market share and allow growth. NASA Since 1990, NASA spending has been flat Companies that service the space industry (government) will have to explore commercial opportunities (private satellite launches, etc.) or seek to use their technology in different areas in order to profit and grow. The Civil Aviation Market Excluding the former USSR, the United States has been the largest market for commercial aircraft (helicopters, transports, and GA aircraft). Air Transport The principal civil aviation product is the air transport aircraft. There is a direct correlation (industry-wise) to the health of the airline industry. Air Transport Prior to WWII More than 2 dozen manufacturers of large aircraft (over 20 seats at that time) Air Transport Today Boeing and Airbus As costs of production rise, consolidation of the industry is a necessary by-product. Major airliners due to heavy competition, need to keep their costs lower than the competition. Need to transport people at the lowest revenue passenger mile (RPM) possible. RPM= Cost to transport one passenger (one seat) one mile. Factors Affecting Commercial Transport Sales - First and foremost There is a direct correlation between the airline industry and aircraft manufacturing Factors Affecting Commercial Transport Sales - Business Cycles the industry has a history of dramatic market swings (between the demand and supply). These cycles are based on economic growth, inflation, fleet capacity, replacement aircraft, and airline profitability Factors Affecting Commercial Transport Sale - Economic Growth during periods of general economic growth the demand for travel increases. This places demands on airlines to meet the increase travel demand. Therefore, new routes (expansion) occurs which requires new aircraft. Need to be aware of domestic and international economic conditions. Factors Affecting Commercial Transport Sale - Inflation "too many dollars chasing to few goods". This causes prices to rise. When prices rise quickly there is a subsequent demand for dollars. Therefore, interest rates rise quickly (incentive for "savers"). As interest rates continue to rise it eventually becomes too costly for manufacturers to borrow to finance expansion - this inhibits economic activity. Factors Affecting Commercial Transport Sale - Fleet Capacity Airlines must maximize the use of their aircraft to remain profitable. High load factors and demand by travelers place demands on airlines to purchase aircraft. Passenger Load Factor: expressed as a percentage: number of occupied seats to available seats. Example: 80/110 = 73% Load factor. Factors Affecting Commercial Transport Sale - Replacement Aircraft as the world fleet ages, there is pressure to modernize fleets and replace older, inefficient aircraft with newer more efficient models. Factors Affecting Commercial Transport Sale - Airline Profitability based on complex interactions between market forces. Some things that directly affect profitability include: Competition: leads to fare wars which severely limit profits and eventually competition in the long run by driving weaker competitors out of the marketplace. New Government Regulations: enhanced safety and security requirements General Aviation The general aviation industry has experienced growth since the enactment of the General Aviation Revitalization Act of 1994 This limits the potential for product liability suits regardless of the age of the aircraft. Before the Federal statute was enacted, a manufacturer could be sued under a product liability theory regardless of the age of the aircraft involved in an accident. General Aviation - Restructuring and Consolidation the industry has undergone dramatic changes due to many of the same factors enumerated before regarding commercial aircraft. Cessna - General Dynamics - Textron Beech - Raytheon Piper-New Piper Corporation General Aviation - Smaller operations Smaller operating expenses and security issues have caused the light twin and executive jet segment of the market to grow. In addition, light aircraft can fly directly to their destination and are not constrained by airline schedules and ground support equipment necessary for large aircraft. The Air Transportation Industry The air transportation industry includes all civil flying performed by certified air carriers and general aviation aircraft. For our purposes the following definitions will apply: Certificated Air Carriers/Airlines involve the carriage of aircraft of persons or property as a common carrier for compensation or hire. The Industry's Contribution to the Economy Aviation employees Support services: baggage services, travel agents, hotels, rental cars, etc. Suppliers: direct and indirect [Show Less]
You have a requirement to buy a large commercially available, prefabricated wash rack for your installation. The catalog price is $102,000. Simplified acq... [Show More] uisition procedures can be used The Director of training for the installation has a request to purchase 25 televisions and 25 DVD recorders for the new training facility that will open next month. Each television will cost approximately $525, and each DVD recorder about $150. Simplified acquisition procedures can be used You have a requirement for four military-unique fighter aircraft parts. Each part is estimated to cost 1.6 million. Simplified acquisition procedures CANNOT be used. You have a requirement to purchase equipment that was previously developed at Government expense and sold exclusively to the military. This type of item is: A non-developmental item Evaluation factors are: Stated in the solicitation An oral solicitation may be used for: Construction less than $2,000 The required sources of supplies and services can be found in: FAR Part 8 You have a requirement for ship repair that will require a unique welding technique. You only know of a few firms that have performed this technique and selecting an inexperienced contractor could be disastrous. As such, you should primarily consider evaluating offerors': Experience When making a commercial purchase, you may conduct an in-process inspection: At ay time to check that the product being made fits your specification When no other exceptions apply, is a Government Point of Entry (GPE) synopsis required for purchases estimated to exceed $25,000 but not to exceed the simplified acquisition threshold? YES Market research is performed To determine if commercial or non-developmental items are available to satisfy agency needs The implied warranty of merchantability means that an item is: Reasonably fit for the ordinary purposes for which such items are used. A training facility needs to purchase 50 binders from a local office supply store. The price for the binders is $20 each. What is the preferred method of purchase? The Governmentwide commercial purchase card The competition requirement for micro-purchases is: There is no formal requirement for competition for micro-purchases When should electronic commerce be used as a method of solicitation? Whenever cost-effective and practicable. What method of purchase is preferred to purchase 10 computer mouse pads, at $3.95 each? The Governmentwide commercial purchase card. You have a requirement to purchase observation-surveillance drones for Navy Seal Teams. Market research reveals no commercially developed items that will meet your specification requirements. However, there is a similar drone that was developed exclusively for the Army that will satisfy the requirement. This type of item is a: Non-developmental Item The priority for required sources of supplies is: inventories of the requiring agency, excess from other agencies, Federal prison industries, committee for purchase from people who are blind or Severly Disabled, Government wholesale sources, commercial sources Requirements that cannot be met by a required source of supplies or services and are expected to ___________ are automatically reserved exclusively for small businesses. Exceed $5,000, nut not exceeed $250,000 You may cancel a unilateral purchase order if: The contractor accepts the cancellation and does not claim cost were incurred from the beginning performance There is a requirement to purchase recreational equipment for base playgrounds. Market research has determined that there is a large variety of playground equipment available to the general public from many manufacturers. This type of item is a: Commercial Item If available, practicable, and cost effective; what is a preferred method of solicitation when conducting simplified acquisitions over the micro-purchase threshold? Electronic Commerce (EC) You have been requested to buy 100 hospital beds for a humanitarian effort in Pedonia. The beds need to be delivered within the next 30 days so they can be airlifted to Pedonia via military transport. Your research has indicated that: - the Committee for Purchase From People Who Are Blind or Severely Disabled does not supply beds. - Federal Prison Industries can deliver the beds in 45 days. The price per bed is $250. - A-Med, Inc. can deliver the beds in 15 days at a price of $225 per bed. - The Army hospital on post, which has been closed, will have 150 suitable excess beds in 21 days. Based upon this information, you should: Obtain the beds from the Army hospital inventory What is a simplified method of filling anticipated repetitive needs for supplies or services by establishing "charge accounts" with qualified sources of supply? Blanket purchase agreement (BPA) Which of the following are acceptable market research techniques? All techniques listed are acceptable A synopsis in the GPE is generally required for: Proposed contract actions exceeding $25,000. You have a requirement to purchase temporary grounds keeping services for 6 months at Base X. The estimated dollar value for these services is $24,000. What is the preferred method of purchase? Purchase Order The status information contained in the System for Award Management (SAM) and additional vendor files maintained by the contracting office, if any, may be used as the basis to ensure that small business concerns are provided the maximum practicable opportunities to respond to solicitations issued using simplified acquisition procedures. True An offeror's experience as an evaluation factor consists primarily of: Their history of completing similar contracts, and quality of their performance In order to use simplified acquisition procedures (SAP), the aggregate value of the acquisition and all its options: CANNOT exceed the simplified acquisition threshold, EXCEPT for certain commercial items. [Show Less]
Your willingness to put up your property for collateral to secure payment of a loan. What is Security Interest? Security Interest for a loan agains... [Show More] t land and buildings. What is a Mortgage? Security Interest for a loan against anything other than land and buildings. What is a Financial Statement? Skin in the Game & Cover the Equity What are the two reasons for why a bank requires down payments? Express & Implied What are the two types of warranties? - Merchantability = with every purchase in the US, there is a claim that it will perform in whatever use it is intended for. - Fitness for a Particular Purpose What are the two types of Implied Warranties? - Lease = an agreement/contract that permits someone else to use an owner's aircraft. - Leaseback = the buyer purchases the aircraft from the seller, then turns around and leases it back to the seller for the seller's use. What is the difference between a Lease and a Leaseback? - The lessee's primary motivation, in a lease forward, is to obtain the use of an aircraft without having to make the capital investment required to purchase one. - The seller-lessee's primary motivation, in a sale with leaseback, is to sell the aircraft; the lessee's primary motivation is the seller-lessee's secondary motivation. Distinguish the primary motivation of the lessee in a lease ("lease forward") from that of the seller-lessee in a sale with leaseback. By putting the sale of the aircraft before the actual use of the aircraft, it changes on how their motives affect the relationship between the lessor and lessee. 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. A lease of an aircraft with a pilot. What is a Wet Lease? - Aircraft Purchase Agreement - Joint Ownership Agreement - Aircraft Management Agreement - Master Interchange Agreement What are the four agreements towards getting a Fractional Share? Each owner gets access to an appropriate aircraft, without the associated management responsibilities for scheduling, crew, hangar, insurance, inspection and maintenance, at a cost that may be more favorable than either charter rates or full ownership. What advantages do fractional ownership programs offer air travelers as compared to chartering or purchasing similar aircraft as sole owners? Charter the aircraft If you use an aircraft for <50 hours, then ______. Use fractional share If you use an aircraft >50 hours but <200 hours, then ______. Own the aircraft outright If you use the aircraft >200 hours, then ______. True (T/F) All people have the right to the peaceable enjoyment of their own land. The government can take any property they want in the US so long as the property is used for a public purpose and the owners are paid fair market value. What is the Power of Imminent Domain? When expanding highways, but if the landowners and government cannot agree on a just compensation then the government will file a condemnation lawsuit. Condemnation lawsuit seeks a court order establishing the price to be paid and ordering transfer of title to the government upon payment of that price. How does a government normally exercise its power of eminent domain? Paying for land after it has already been taken. What is Inverse Condemnation? Flight ops above FL180 - FL600 on a file IFR plan. Describe Class A Airspace. - Restricted = complete control by the military. - Prohibited = complete control by the DoD for non-military reasons. - Warning Areas = control by the military, yet not total positive control (military generally provides warnings saying when the area is hot, advising pilots to stay clear). - Military Operating Areas = area of high volume military traffic but no prohibition of flying through (generally have given times when pilots should fly through). List and describe the types of Special Use Airspaces. Security of Air Traffic and Air Navigation Aids = when declared by the federal government, all pilots nationwide must land at the nearest suitable airfield. What is the acronym SCATANA and its meaning? Safety is a major concern of those living near an airport, therefore, most aviation litigation in the area of airports and airspace are about (1) aircraft noise and (2) keeping the airport's approaches clear of obstacles. What two areas of concern have been the focus of most litigation regarding airports and airspace? The government's right to adopt and enforce laws to protect the public health, safety and welfare. What are police powers? The FAA, but they can also cede control of the airspace over to another agency. Who is empowered to regulate the use of navigable airspace over the U.S.? A long time in jail & A large fine If you are convicted of any aviation crime on the federal level, you are sentenced to ______ and ______. True (T/F) Most any state aviation crime is also a federal crime. - The US claims the right to prosecute any individual of any nationality for an aviation incident so long as the offender is found in the US, whether the crime was committed in the US or not. - We take particular jurisdiction over any individual who commits an aviation crime anywhere if the offender is a US citizen. Two Rules of Federal Jurisdiction over Foreign Aviation Accidents: Clearing house for international crimes. Interpol serves as a ______. True (T/F) If a country's offender is caught in another country and both are involved in Interpol, then the receiving country will hold that citizen and contact the origin country. - Railway Labor Act of 1926 - National Labor Relations Act Everyone in management or labor falls underneath either: - RLA: people in the aviation industry fall under this (airlines include commuter but not charter or cargo-only); uses the National Mediation Board (NMB). - NLRA: uses the National Labor Relations Board (NLRB). Differ between RLA and NLRA. True (T/F) Once a union has been established, all employees MUST be a member of said union. 50% More than ______% must vote in favor to establish a union. - When one union member has an issue that violates the user-management agreement. - Resolved through the Board of Systems Adjustment. Describe a Minor Dispute? Two members, one management and labor. Who is included in the Board of Systems Adjustment? - When the contract itself is at issue. - Resolved through the Kabuki theatre process. Describe a Major Dispute? A long 6-8 month process of negotiations outside of the cooling-off period. At the end of the process, if you are a government employee, you can strike. What is the Kabuki theatre process? The doctrine of employment at will affords employers the general right to suspend or fire non-unionized for any reason or no reason at all, but there are limitations that must be documented in case there's a lawsuit. As a general rule, an employer can fire an employee at will for what reasons? Do not qualify for the act's overtime pay benefit. What is an "exempt" employee? National Railroad Act of 1926 What law governs labor-management relations in the airline industry? To make sure that if the airlines went on strike that the US economy would not freeze. What was Congress' purpose in enacting NRA of 1926? National Mediation Board (NMB) What federal administrative agency has the responsibility for overseeing labor-management relations in the airline industry under the NRA of 1926? [Show Less]
Aviation Law questions and answers graded A+
14.1.1: Discuss the importance of the fleet-planning process to both short-term and long-term management decision making in an airline. * Fleet-planning i... [Show More] s one of the most difficult decisions airline leadership must make. * A huge consideration is whether it makes better financial sense to modernize older aircraft already in a carrier's fleet or to purchase new aircraft. * Airline managers must weigh both the short-term and long-term consequences of fleet-planning. * In addition to the overall financial health of carriers, the costs associated with engineering and maintenance must be considered. * The short-term and long-term consequences of fleeting planning continuously change over time resulting in a different relative importance of factors at each airline depending on the carriers' individual situations. 1.1: *Fleet planning is probably one of the most important steps in the airline planning process. Fleet planning decides which aircraft are needed and when they need to be acquired by, This is extremely important for long term and short term management decision making. Besides maintenance, many other factors must be thought of also. Fuel, availability and prices of used aircraft are all perfect examples for short term. Long term examples would include factors such as interest rates, competitive situation strategies, labor costs, stocks, etc. 14.1.2: How is this process in a sense betting on the future? * Fleet-planning is a bet on the future since there are many long-term factors that must be considered. * One of the most important costs is maintenance. * Fortunately, maintenance costs have been decreasing since the 1960s. * Also, when an airline purchases a new aircraft, the carrier can generally get by for 7 to 10 years without having significant maintenance costs. * Other future factors that will affect fleet-planning include: -- the price of fuel; --- the availability and price of used aircraft; --- resale value; --- the price of new aircraft; --- terms of purchase; --- interest rates; --- route structure; --- competitive situation; --- strategy; --- and labor costs. 14.1.3: What effect has deregulation had on the fleet-planning process? As a result of deregulation, the established carriers had to find more efficient ways to operate and fly while reducing operating costs. Deregulation led non-union carriers to invade traditional markets withlower fares and allowed LCC to expand their markets. Trunk carriers had the notion to always be prepared for peak demands. However, with the smaller airlines were competing with their smaller engine aircrafts and only needed a small flight crew of 2 instead of 4 - they were operating at lower costs and making a profit. 1.3: * Prior to deregulation, airlines had a fairly stable business and fleet decisions were much simpler * As they were usually based on technical considerations. * Deregulation changed everything, however, --- as new non-union airlines invaded traditional markets --- with low fares and flew relatively inexpensive used aircraft. * With deregulation, the established carriers had to "find ways to reduce operating costs associated with aircraft already in their inventory that were not as efficient as the newer generation of equipment." 1.3: * With deregulation, many airlines had to find ways to reduce the operating costs associated with aircrafts already in their inventory that were not as efficient as the newer generation of equipment. The carriers began to focus more on new equipment that generated the lowest operating costs and were available in sufficient quantities and at the right times to meet their fleet and market planning requirements. Many companies, because of deregulatiion had to upgrade their fleets more rapidly to compete successfully. 14.1.4: Discuss the implications of the hub-and-spoke system and industry consolidation on fleet planning. 1.4: * Hub-and-spoke systems can influence fleet planning as it will influence new aircraft requirements on how to save costs and enjoy the economies of scale. * Hubs have also influenced carriers' decisions about larger aircraft, such as Boeing 767 and Airbus A330. * As hubs become increasingly congested, there is a general rule for larger twin-engine aircraft operating intercontinentally and internationally. 1.4: * The hub-and-spoke system and industry consolidation have had tremendous impact on fleet planning. * The hub-and-spoke system has helped airlines achieve the lowest possible unit costs which has had deep influence on new aircraft requirements. * For example, lift capacity has become greater on smaller aircraft with shorter full-payload ranges. * The hub-and-spoke system has also influenced carriers to serve more markets with smaller aircraft. * The increased traffic at slot-restricted airports due to the hub-and-spoke system and industry consolidation has resulted in airline managers to reevaluate their fleet planning. * There is a natural tendency today to schedule larger aircraft rather than smaller ones through the hubs as major airports become increasingly congested and slot limitations more constraining. 1.4: * The implication of the hub and spoke system was to make sure airlines were achieving the lowest possible unit cost. This system had influenced airlines to serve more city-pair markets and more varied markets than ever before. This has caused the largest airlines to require a much wider variety of aircraft than ever before. This affected the industry's consolidation. The Hubs have influenced carriers' decisions with regard to larger aircraft, such as the Boeing 767 and Airbus 330. The hubs are forced to consolidate now because of limitations. Fleet-planning now has to schedule larger aircraft rather than smaller ones through the hub, especially during peak seasons. 1.4: * The growth of hub-and-spoke networks has allowed airlines to have a large number of city pairs and a variety of destinations. * The wide range of markets has made it so large airlines need a diverse selection of aircraft in order to efficiently serve these locations. Industry consolidation * Industry consolidation will cause the interdependency between mega-carriers and manufacturers to strengthen. * Additionally, consolidations will likely cause aircraft to stay in the fleets even longer, which will force manufacturers to lower their prices as the quantity demanded decreases. * One negative effect is that consolidation will lead to fewer carriers influencing the market, which in turn decreases the desire for innovation. * Industry consolidation in 1980s has changed proliferation of specific aircraft types operated by any particular carrier. * They need to acquire new aircraft to enable them to enjoy the benefits of maximum practical fleet commonality in the long run. 14.2.1: What are some of the advantages of fleet commonality? One of the main reasons for aircraft purchases in large numbers is fleet commonality. * The fleet commonality expands the benefits of operating a standardized fleet of aircraft that share common parts, training requirements, or other characteristics. * The Boeing 757 and 767 for example have common requirements which is a distinct advantage to the carriers operating both types and operating either model. * The newer generation provides various models with identical features which offers airlines using such models greater flexibility for planning new routes. * Commonality is also apparent in the Airbus Series because many of the same models share component parts and flight deck instrumentation. * New generation of 737 family provides various models with identical cockpits and seating from 100 to 180 passengers, offering airlines greater flexibility for planning new routes. * Engine choices are more flexible and can be based on power plant commonality with other aircraft in the operator's fleet. 14.2.2: Why has there been a trend toward leasing? There are two reasons for a trend toward leasing: * First, the 1986 Tax Reform Act eliminated investment tax credit, ---- taxpaying companies could deduct a fixed percentage of the cost of asset directly from their tax liability, --- which is effective to reduce the price of asset tot he acquirer. * Second, the act reduced allowable deductions from taxable income for depreciation. --- Accelerated depreciation allows firms to depreciate more than actual depreciation of an asset for tax purposes. --- This will postpone taxes over life of asset, increasing the rate of return on asset. 2.2: There was a trend towards leasing because of the troubled state of the airline industry during the early 1990's. * Many financial institutions awaited the outcome of the bankruptcy of several major carriers * Aircraft manufacturers offered special incentives to boost sales and leasing; and gave the smaller carriers the flexibility to trade up by exchanging a smaller model for a larger one. * By buying in quantity the leasing companies get lower unit prices, which benefited them because it rcted the relatively reasonable rental rates they charge. 14.2.3: Distinguish between an operating and a financial lease. Operating Lease * An operating lease is a short-term lease than cannot be canceled. * At the end of the operating lease the market value of the asset is the responsibility of the lessor (also the asset is 100% owned by the lessor at the end of the lease) and the lessee has no obligations there afterwards (has no debt on its books). * Another characteristic is that with a operating lease there is no down payment (large initial cash outflow from lessee); you would just start paying your monthly, yearly, etc cycle. Financial Lease * The financial or capital lease can be distinguished by a few factors. * The title to the asset is remains owned by the lessor until the end of the lease term (when all payments have been made) where then the title is transferred to the lessee for a "pre-agreed" upon sum. * There is no market risk to the lessor after the lease. * The financial lease is reported in the same manner as loans; * The value of the asset that was leased shows as an asset for the company leasing it and the value of the leased asset shows as a liability. 14.2.4: How will noise restrictions affect future aircraft purchases? Noise restrictions led to the orders for models such as the Boeing 757 to replace the 727's indicating that the days for aging airliners in the fleet were undoubtedly numbered. With the higher maintenance costs, higher noise levels, and higher fuel consumption, these things made them replaceable by newer generation models. 14.3.1: What are some of the factors an aircraft manufacturer has to take into consideration during the design and development stage of a new commercial jetliner? * The design and development stage for a new commercial jetliner takes approximately five to six years. * The costs of designing and developing a new aircraft are astronomical. * The break-even production point for an aircraft manufacturer can be anywhere from 200 to 600 aircraft. * As a result, a number of carriers must be interested in a particular aircraft before a manufacturer will make the necessary investment. * It is also critical for manufacturers to bring airlines into the design and development process as soon as possible so that ideas can be gathered before the project is too advanced to make changes. * Other factors aircraft manufacturers must take into consideration include the ability of individual carriers to purchase the proposed new aircraft (there is a direct correlation between aircraft orders and airline profitability) and government regulations (such as safety, noise, and emission standards). 14.3.2: What is meant by "designing and developing an appropriate family of jets for the airlines"? * Prior to deregulation, airlines had various aircraft models from different manufacturers in their fleets. * Today, airlines are standardizing their fleets and dropping low-density routes to concentrate on high-density, long-haul routes. * This specialization among the different levels of carriers presents a problem for the manufacturers who develop aircraft for many different user needs. * As a result, manufacturers are challenged with designing and developing an appropriate family of jets that can fit the varied needs of airlines. 14.3.3: What is Airbus Industrie? Airbus Industrie is a consortium of European aerospace manufacturers, * Initially formed by France and Germany (each owning 37.9%), British Aerospace (20%), and Spain(4.2%). * Today it is co-owned by the European Aerospace Defense and Space (80%) and BAE Systems PLC (20%). * Different aircraft sections are made in different countries around the world (mostly in Europe). * All sections are brought to Toulouse, France where final aircraft assemblies take place. * The Airbus Industrie is determined to correct what its officials see as the abnormal situation of U.S manufacturers dominating sales to the western world. * Their policy is to maintain a high degree of commonality in the systems, power plants, equipment, and structures of all its models. * This allows operators to realize many savings in training costs and in spares holdings and investments. 14.3.4: How has Airbus Industrie been able to capture a foothold in the new-generation aircraft market? 3.4: * Despite the fact that Airbus Industrie may have benefited from political help, most industry observers attribute Airbus Industrie's success to timing ---- As "the Airbus was the first large twin-engine aircraft on the market, competing successfully against Lockheed 1011s and McDonnell Douglas DC-10s, both three-engine aircraft that consume more fuel." * Airbus has been delivering more aircraft than Boeing every year since 2001. * The design of the new models allowed operators to realize many savings and enforced their policy of maintaining a high degree of commonality in the systems, power plants, equipment and structures of all its models. * Airbus Industrie's program for production of the long-range A340 and the medium to long range A330 was launched in June 1987. * The program will achieve sales of about 1000 aircraft * In June 1987, Airbus Industrie announced their first long-range aircraft, the A340, at the Paris Air Show. * The A340 was available in two models, the A340-300 and the A340-200. * The A340-300 has a three-class layout and is able to fly for 6,850 nautical miles, * The A340-200 can carry 262 passengers and fly for 7,700 nautical miles. * The new models share many of the same aspects as their previous aircraft, which would make the shift easy and manufacture move smoothly. * This new, more efficient plane, allowed Airbus Industrie to compete with Boeing for the western aircraft market * The achievement of a full product line has been a long-held goal of the company. 14-3.5: Do you think Airbus Industrie has an unfair advantage over domestic manufacturers? Why? * Even though Airbus Industrie benefits from some of its political connections, I do not believe that the company has an unfair advantage over Boeing. * Europe learned several years ago through many failed attempts that one company or one country alone cannot make it in the manufacturing industry. * Airbus Industrie receives no subsidies from member countries. * Even though participating governments contribute funds for research and development, Airbus repays every penny out of aircraft sales. * Boeing, on the other hand, has often received subsidies from the state of Washington. * Boeing also continuously benefits from lucrative military government contracts. * As a result, I do not believe that Boeing is at an unfair disadvantage. 14-3.6: Give some examples of government regulations that a manufacturer must take into consideration in designing and developing a new aircraft. Since governments are responsible for certifying new aircraft, manufacturers must take factor safety, noise, and emission standards into consideration when designing and developing a new model. 14.4.1: Describe what is included in each of the four basic inputs (informational needs) to the fleet-planning process: Current Resources Current Resources * Includes present fleet inventory by type of aircraft, use, and month. Financial and technical data on aircraft in order is also provided. These financial data include purchasing and leasing costs, start-up costs, and unit operating costs. The technical data on aircraft in order include payload-range figures, cruise performance information, runway requirements, noise levels, parts and service availability, and flight characteristics. In terms of maintenance resources, availability of personnel for each equipment must be considered, and lead times must be established. In addition, flight crews must be prepared in advance of delivery dates of aircraft in order. The corporate planning unit must completely analyze the carrier's current resources on hand and incoming orders. [Show Less]
In the circular flow of expenditure and income, why must the total value of production in an economy equal the total value of income? Every penny sp... [Show More] ent on a good or service must end up as someone's income Which equation represents the relationship between GDP and the four major expenditure components? Y = C + I + G + NX What are the four major components of expenditures in GDP? Consumption, Investment, Government Purchases, and Net Exports What is value added and how is it calculated? Value added refers to the additional market value a firm gives to a product and is calculated as the difference between the sale price and the price of intermediate goods. Indicate whether each of the following transactions represents the purchase of a final good 1. The purchase of tires from Bridgestone tire company by an automobile manufacturer. 2. The purchase of an aircraft carrier by the federal government. 3. The purchase of French wine by a U.S. consumer. 4. The purchase of a new plane by American Airlines Is not the purchase of a final good, Is the purchase of a final good, Is the purchase of a final good, Is the purchase of a final good Indicate which component of GDP will be affected by each of the following transactions involving General Motors. a. You purchase a new Chevrolet Silverado pickup from a GM dealer. b. You purchase a 2017 (preowned) Chevrolet Silverado from a friend c. GM purchases door handles for the Silverado from an auto parts manufacturer in Indiana d. GM produces 1,000 Silverados in a factory in Flint, Michigan, and ships them to a car dealer in Shanghai, China e. GM purchases new machine tools to use in its Flint factory. f. The state of Michigan builds a new highway to help improve access to GM's Flint plant. Consumption Expenditure, Not included in GDP calculation, Not included in GDP calculation, Net Export Expenditure, Investment Expenditure, Government Expenditure Suppose that a simple economy produces only the following four goods and services: shoes, hamburgers, shirts, and cotton. Further, assume that all of the cotton is used in the production of shirts. Use the information in the following table to calculate Nominal Gross Domestic Product (Nominal GDP) for 2021. Product - Shoes: Quantity: 100, Price: $60.00 - Hamburgers: Quantity: 100, Price: $2.00 - Shirts: Quantity: 50, Price: $25.00 - Cotton: Quantity: 1,800, Price: 0.60 The Nominal GDP for the year 2021 is ___________ $7450 What are the four major categories of expenditure? Consumption, investment, government purchases, and net exports. What are the four categories of income? Wages, Interest, Rent, and Profit. The circular-flow diagram shows that ________ should equal ________. total expenditure; total income The circular-flow diagram shows that all sources of income are owned by households Gross Domestic Product (GDP) is the market value of all final goods and services produced in a country during a period of time. The following table illustrates the value added approach to calculating GDP. Please complete the table. L.L.Bean = 20 Total Value Added = 35 Use the data in the following table to calculate the GDP deflator for each year (values are in billions of dollars, enter your response rounded to two decimal places -- remember to multiply by 100). Year Nominal GDP Real GDP - 2014: $17,527 $16,912 - 2015: $18,238 $17,432 - 2016: $18,745 $17,731 - 2017: $19,543 $18,144 - 2018: $20,612 $18,688 GDP Deflator: (normal GDP/real GDP x 100) - 2014: 103.64 - 2015: 104.62 - 2016: 105.72 - 2017: 107.71 - 2018: 110.30 Which span of years saw the largest percentage increase in the price level, as measured by change in the GDP deflator? 2017 to 2018 In 2011, the value of the GDP deflator is _______ 115 In 2012, the value of the GDP deflator is ________ 119 The following table gives nominal and real GDP for an economy for two years. Based on the table, in Year 2, the value of the GDP deflator is ________ The inflation rate between Year 1 and Year 2 is _______% 116.7 6.1% Which of the following do we subtract from GDP to obtain national income? depreciation [Show Less]
$37.45
134
0
$37.45
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