Your willingness to put up your property for collateral to secure payment of a loan.
What is Security Interest?
Security Interest for a loan
... [Show More] against 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]