You left your risk manager position at Discount Airlines and are now the chief pilot for Richard's Part 91 flight department. He came to you after an incident aboard a Discount Airlines flight and explained that he is never, ever, ever, travelling regular commercial again. However, he is tired of the fact that the Beaver is always breaking down and want something with better short field performance. He tells you to find a nice twin engine helicopter. He asks you to summarize the steps in buying an aircraft. You explain the three most common areas where aircraft transactions go poorly, and then let them know the general steps. You spend hours on www.trade-a-plane.com, www.controller.com, and www.barnstormers.com looking for just the right ship. Finally, you find one that looks good, a Bell 427, listed in Oregon. The advertisement lists as follows: 2010 Bell 427 For Sale: $1,925,000 Description Nicest 427 In The World!!!! New Radar Altimeter 7 Passenger + Pilot Fresh 1800 Hour Inspection, Brand New Mast Pole Like New, High vis blades, Flight Instrument Kit, 28 Amp battery, Dual Controls, Rotor Brake

8 Bose A20 headsets, Kink KX 144A With Glideslope NAV, Encoding Altimeter, Compass System KCS 55A Provisions, Converter w/KI525A, Avionics blower Kit, Aft ICS 6 station, Interior Trim Corporate, Soundproofing Corporate, Corporate Headliner W/AC, 6 Place Club Seating, Aircom Air Conditioning w - Dual Forward Evaporators, Aircom Heater w-Chin bubble Defroster, Artex C406 NHM ELT Garmin 530W Garmin GDL 69A XM Weather and Audio Interfaced to GNS 530, and Audio System Garmin SL 40 Com #2 Garmin GTX 330 Transponder Traffic Advisory System PS Engineering PAV 80 Entertainment System PS Engineering Audio Panel Engine Fire Extinguisher System Crew, Passenger and Baggage Automatic Door Openers Satellite Radio with Weather Crew and Passenger Floor Protectors Avionics Cooling Fan Precise Flight Pulse Light USB Charging Receptacle Cyclic Switching Aircraft Total Time, 4,123 You fly out with your Chief Mechanic to look at the helicopter, which is owned by Zach, a pilot and the CEO of a 3D printing company, "3D Quick Prints." It is in a hangar with all of the logbooks laid out on a folding table. Your mechanic tells you that all of the books look fine, and he conducts a 1 day inspection of the helicopter. You ask Zach if the aircraft has an accident history, and he tells you that there have been no accidents. Afterward, you take the helicopter out for a test flight and note no squawks. You run a title search on the aircraft, and it comes back clean. You then call Richard and tell him you found the right helicopter. He wires funds to Zach. After the transaction is complete, you fly the helicopter to KBFI. The next day, you take Richard up in the helicopter to show him the nice ship he just bought. You start both engines in sequence, and gently raise the collective to lift the helicopter off the ground. You air-taxi away from the ramp, pull pitch, and accelerate for a normal takeoff. Immediately warning lights illuminate and warning horns sound. You look at the engine gauges and see the #2 engine with reducing temperature. You also see that the automatic engine fire extinguisher has activated on the #2 side. You call Boeing Tower, declare an emergency, and simultaneously execute a quick stop, setting the helicopter down at the south end of the airport. Richard egresses the cabin. You call the FAA and report the occurrence. The NTSB comes to investigate. Over the next three weeks, they tear down the #2 engine. Surprisingly, they find no anomalies but note that the

engine looks like it is near zero time, instead of the 4,000 hours. They find a broken control and discharge valve in the fire suppression system. Analysis at the NTSB materials lab reveals that the valve was not made by the manufacturer, but was instead, a counterfeit component, made by a 3D printer. The material failed, discharging the system onto a normally operating engine. The same day, Katie, an A&P in Oregon calls you and tells you that she hasn't been paid for work she did on the fire suppression system following discharge after an in-flight fire on the aircraft at around 8,000 hours. She says Zach hasn't paid her, and that she wants to execute a lien on the helicopter for her work. She also tells you that when she went to install and recharge the fire suppression system that the manufacturer did not have the control and discharge valve in stock and that it was backordered for ten weeks. She tells you that when she informed Zach of the delay, he said that he would "handle it" and showed up at her shop with the valve the next day, complete with a "serviceable" tag. She wondered how he got the valve so fast. You go to the shop and look at the tag - the handwriting looks suspiciously like Zach's handwriting on the sale documents for the helicopter. Unsurprisingly, Zach won't return your calls. Richard has asked you the following questions: 1. Should you report Zach's actions to the FAA? Are you legally required to do so? Why or why not? 2. What claims (in contract) does Richard have against Zach? A simple list for this part of the answer is fine. 3. Zach's ad listed the helicopter as the "Nicest 427 In The World!!!!" Is there a basis for a claim by Richard against Zach on that basis alone? Why or why not? What would the claim be called? 4. Zach's ad listed the total time of the aircraft as 4,123. Assuming that Katie is telling the truth about the actual total time (which is a more than fair assumption), is there a basis for a claim by Richard against Zach on that basis alone? Why or why not? What would the claim be called? 5. Can Katie execute a lien on the aircraft? Why or why not? 6. Assume that the worst is true, and that Zach used his 3D Printing capability to manufacture the part without FAA authority (a Type Certificate, Production Certificate, Supplemental Type Certificate, or Parts Manufacturing Authority). Is Zach subject to governmental liability? If so, what type(s) and what are the potential sanctions? Cite all authority for any sanctions.