CASE 2 operated a charter airline service that modification in order to receive an airworthiness certifi- specialized in flying small groups to specified locations. cate. In response to the directive, the repair facility made Their fleet consisted of three small eight passenger the modifications to both of the engines, then signed off twin-engine aircraft. While on a charter to a nearby that the aircraft was now airworthy. The repair fcility city, one of its aircraft developed a problem with one informed Local Air Ltd. of the work done and invoiced of its engines, and the pilot, on the authorization of the Local Air Ltd. for the repair that amounted to $9,825 company, took it to an aircraft repair facility located at the airport. When Local Air Ltd. was advised of the repair invoice, they informed the repair facility that in their view the amount was excessive, as the airworthiness repair second aircraft was dispatched to retrieve the passengers and the pilot when it appeared that repair would require parts that had to be ordered from the aircraft manufacturer. The parts arrived in due course, but before the engine was repaired, a govern- ment air worthiness directive was received by the repair facility that required aircraft owners to make an engine the could have been made at their own shop for half the cost. At this point in the discussion, the repair facility refused to release the for the aircraft was paid in full aircraft unless the repair account Advise the parties. What are the issues in terms of the law? Speculate as to the out