Community Clipper Airlines Ltd. was a small airline that operated a scheduled service to a number of remote northern communities in the province. In addition, it operated a charter service that consisted for the most part of flying hunting and fishing enthusiasts to tourist camps located on otherwise inaccessible northern lakes. On a day in late September, the dispatcher received a radio telephone request from the operator of a remote tourist camp, requesting an aircraft to fly in and pick up two late-season fishermen who had to return to their offices for work the next day. The dispatcher passed the flight instructions to one of the charter pilots, "Red Baron." The pilot checked the aircraft, a four-passenger, single-engine, wheel- and float- equipped craft, then called the weather office for a weather briefing. The weather office reported marginal flying weather until 4:00 p.m. that day. The forecast for the period after 4:00 p.m. indicated rain and fog conditions in the area of the airport, and in the area. generally. The weather was expected to close all of the neighbouring airports as well, but remain clear in the area of the tourist camp. The tourist camp was approximately two hours flying time from the airport, and given that the time was then 11:00 a.m., Red Baron decided to make the flight. She arrived at the tourist camp at approximately 1:00 p.m., but the fishermen had not yet packed their bags and fishing tackle for the trip. Red Baron warned the two fishermen that the weather was deteriorating, and that they must leave immediately, otherwise they would be unable to land at the airport. One of the fishermen was particularly slow at getting his equipment and clothes packed, and in spite of the pilot's urging, the fisherman was not ready to leave until almost 2:00 p.m. At 2:05 p.m., the plane flew from the camp with the two fishermen and their gear. The weather, which was still appropriate for flying, held until the aircraft was within approximately 20 minutes' flying time of the airport. At that point the aircraft encountered rain and deteriorating visibility. The pilot advised the two passengers that she might not be able to proceed to the airport if the weather became worse. Undaunted, the passengers urged her to proceed on rather than fly back to the camp, as they were obliged to make flight connections at the airport in order to be at their offices the next morning. With some misgivings and warnings about the weather, Red Baron continued on. She contacted the airport and was informed that rain and fog had closed the runways, but that the lake approach might still be possible since a very slight on-shore breeze was keeping the lake from being totally closed in. Red Baron elected to try the lake approach rather than turn back. Visibility was poor in the rain, and fog patches obscured parts of the lake. Due to the weather, she decided to land some distance out in the lake, then taxi to the dock area. She made a careful approach, but after successfully landing on the water, collided with a floating log. The log damaged the aircraft and caused it to flip forward and begin to sink. A rescue boat was dispatched to the aircraft immediately, and the pilot and passengers were rescued from the cold water. While not seriously injured, the passengers suffered bruises, some minor lacerations, and exposure. After being kept in hospital overnight, they were released the next day to return home. If the passengers instituted legal proceedings against the airline, discuss the possible arguments and legal principles each side would raise. Render, with reasons, a decision. Distinguish the legal characteristics of the various types of business organisations and relationships