ASCI 404 ERAU Managing Strategic Risk in Aviation Discussion

Please read and respond to the following scenarios using aviation law references.

Scenario 1

While performing an engine overhaul on a customer’s single-engine aircraft, an A&P mechanic employed by an FAA-certified aircraft repair station is distracted by a telephone call. Returning to the nearly-completed task, the mechanic replaces the engine cowling without first securing the oil sump drain plug with safety wire, as required by the maintenance manual. The shop foreman, who holds FAA Inspection Authorization, signs off the overhaul and approves the aircraft for return to service without noticing the oversight. The owner-pilot picks up the aircraft and takes off for an engine break-in flight. While in flight, the drain plug vibrates loose, the engine oil is lost overboard and the engine seizes. The pilot makes an emergency landing in what looks like the most suitable spot within gliding range, a plowed field, where the aircraft overturns. The aircraft is substantially damaged and the pilot is seriously injured.

Who is potentially legally liable for these damages and injuries, and why?

Scenario 2

You have been hired as a consultant to an entrepreneur who plans to open a UAS-oriented business in the U.S. that will sell, service and support drones, as well as providing training to operators. It is anticipated that the business will initially employ 24 individuals in various roles. The entrepreneur does not plan to play an active role in day-to-day management or operations.

The entrepreneur asks your advice on the best form or forms of business to protect her from personal liability in the event of an accident causing injury to customers or other non-employees. Advise her.

Answer thoughtfully and in detail.