Reference no: EM131280486
Air Ruidoso, Ltd., operated a commuter airline and air charter service between Ruidoso, New Mexico, and airports in Albuquerque and El Paso. Executive Aviation Center, Inc., provided services for airlines at the Albuquerque International Airport. When Air Ruidoso failed to pay more than $10,000 that it owed on its account for fuel, oil, and oxygen, Executive Aviation took possession of Air Ruidoso's plane, claiming that it had a lien on the plane.
1. Can Executive Aviation establish an artisan’s lien on the plane? Why or why not?
2. Suppose that Executive Aviation files a lawsuit in court against Air Ruidoso for the $10,000 past-due debt. What two methods discussed in this chapter would allow the court to order the seizure of Air Ruidoso’s plane to satisfy the debt?
3. Suppose that Executive Aviation discovers that Air Ruidoso has sufficient assets in one of its bank accounts to pay the past-due amount. How might Executive Aviation attempt to obtain access to these funds?
4. Suppose that a clause in the contract between Air Ruidoso and Executive Aviation provides that “if the airline becomes insolvent Braden Fasco, the chief executive officer of Air Ruidoso, agrees to cover its outstanding debts.” Is this a suretyship or a guaranty agreement?
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