3. On March 1 an aircraft owner contracted with a paint/interior company to prov
ID: 446065 • Letter: 3
Question
3. On March 1 an aircraft owner contracted with a paint/interior company to provide a new paint/interior. This company filed a lien on March 30 for non-payment.
On January 2 (same day as buying the aircraft) he contracted with the local FBO to hangar the aircraft and supply fuel. It is now April 30, and the aircraft owner hasn’t paid a nickel in hangar rent or for a drop of fuel. The airplane is in the back of the hangar. Other airplanes are parked between the aircraft and the doors to the hangar.
It is May first. The owner is selling the aircraft. He is selling it for $500,000. He owes the bank $250,000. He owes the engine overhaul company $100,000. He owes the paint/interior shop $100,000. He owes the FBO $50,000. What do you think is going to happen at the closing of the aircraft sale? I want to hear the exact sequence of events and how the parties above are affected. A representative of each organization is present at the closing.
4 Did you learn any phrases in Latin in this course as it pertains to liability? Please share those phrases, translate and explain them.
5 Compare and contrast. Cessna just sold a brand new Cessna 172 to a customer. That customer turns around and sells the airplane to a third party. If either the original purchaser crashed the airplane (due to a defect) or the second purchaser crashed the airplane (due to a defect) would the liability of the seller be any different? In either case, is Cessna liable? Does the amount of time between sales (Cessna to customer #1, customer #1 to customer #2) affect your answers?
Explanation / Answer
3)First, security loan should be paid out it means bank $250,000, they have right to claim first, once settlement had done to bank, all the debts should be paid to others creditors.
Because the aircraft Sell, $500,000 -$250,000=$250,000 Balance is there to aircraft owner
Now, the aircraft owner have to decided to pay insecure owes amount to concerned parties or not .
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