Post your thorough and complete answers to any one of the following scenarios:
Scenario 1
You have been hired as the new assistant manager of a U.S. flying school.
The first day on the job, you learn that the school considers all of its flight instructors to be independent contractors. The instructors teach students assigned to them by the school, according to a schedule managed by the school, in school classrooms and school aircraft, and must precisely follow the school’s lesson plans.
The school does not withhold payroll taxes or maintain workers’ compensation or unemployment compensation insurance on the instructors. When you ask why, the general manager replies: “It’s just simpler that way. Why? Do you see a problem with that?”
Reply thoughtfully and in detail.
Scenario 2
You have been hired as the new assistant manager of a U.S. aircraft repair station.
The first day on the job, you learn that the business considers all of its aircraft repair personnel to be independent contractors. The mechanics work on aircraft assigned to them by the company, according to a schedule set by the company, in company shops, using company tools, under the direct supervision of company superintendents.
The company does not withhold payroll taxes or maintain workers’ compensation or unemployment compensation insurance on the instructors. When you ask why, the general manager replies: “It’s just simpler that way. Why? Do you see a problem with that?”
Reply thoughtfully and in detail.
Scenario 3
Regional Airline Corporation (RAC) is a U.S. regional airline operating a fleet of 70 regional jet aircraft. Escalating fuel costs have wiped out the company’s profits, and management is desperately seeking ways to cut costs.
At a management meeting, one of the corporate executives presents data showing that the Bombardier Q400 turboprop can carry the same passenger load at only slightly less speed with a greatly reduced operating cost. The data shows that the corporation could return to profitability by disposing of its jets and replacing them with turboprops.
- What person or group within the corporation would have the authority to approve this fleet change? Explain.
- What written record, if any, should be made of the decision approving this fleet change?
Scenario 4
You are the director of maintenance for Regional Airline Corporation (RAC), a U.S. regional airline. Knowing that the company is desperately seeking cost savings to allow it to remain competitive, you explore the option of contracting-out the corporation’s major aircraft maintenance to an unrelated company specializing in that kind of work. You find that outsourcing the major maintenance could result in substantial savings to the corporation as compared to the present practice of doing all maintenance in house, with employees of the corporation.
- What person or group within the corporation would have the authority to approve this fleet change? Explain.
- What written record, if any, should be made of the decision approving this fleet change?
Scenario 5
For a nation or union of nations other than the U.S.:
- Identify the available alternative forms of business organization that are most similar to the U.S. corporation, LLC & LLP.
- Provide hyperlinks to references relied on.
- If you choose to answer this Scenario, then also answer either Scenario 3 or 4 as if the company in that scenario was not a U.S. corporation but was organized as the form of business you identified in your answer to this Scenario as most similar to the U.S. corporation.
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