Local Air Ltd. operated a charter airline service that specialized in flying small groups to…

Local Air Ltd. operated a charter airline service that
specialized in flying small groups to specified locations. Their fleet
consisted of three small eight passenger twin-engine aircraft. While on a
charter to a nearby city, one of its aircraft developed a problem with one of
its engines, and the pilot, on the authorization of the company, took it to an
aircraft repair facility located at the airport. A second aircraft was
dispatched to retrieve the passengers and the pilot when it appeared that the
repair would require parts that had to be ordered from the aircraft
manufacturer. The parts
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Local Air Ltd. operated a charter airline service that
specialized in flying small groups to specified locations. Their fleet
consisted of three small eight passenger twin-engine aircraft. While on a
charter to a nearby city, one of its aircraft developed a problem with one of
its engines, and the pilot, on the authorization of the company, took it to an
aircraft repair facility located at the airport. A second aircraft was
dispatched to retrieve the passengers and the pilot when it appeared that the
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 government air worthiness directive was received by the repair
facility that required aircraft owners to make an engine modification in order
to receive an airworthiness certificate. In response to the directive, the
repair facility made the modifications to both of the engines, then signed off
that the aircraft was now airworthy. The repair facility informed Local Air
Ltd. of the work done and invoiced Local Air Ltd. for the repair that amounted
to $9,825. 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 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
aircraft unless the repair account for the aircraft was paid in full. Advise
the parties. What are the issues in terms of the law? Speculate as to the
outcome.

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