FAA 107 Commercial Applications & Business Operations 3 — Questions and Answers
Question 1: A commercial drone operator is offered a contract to fly over a large outdoor concert with thousands of attendees. Without a waiver, this operation is prohibited because:
- The noise from the drone would violate local ordinances
- Part 107 prohibits flight over open-air assemblies of people without a waiver (Correct answer)
- Concert venues are automatically designated as TFRs
- Drone operations near amplified sound equipment require special permits
Correct answer: Part 107 prohibits flight over open-air assemblies of people without a waiver
Part 107.39 prohibits operating over any open-air assembly of human beings without an FAA waiver.
Question 2: A client wants continuous live video feeds from a drone for a 10-hour outdoor event. Which Part 107 rule will most directly limit this plan?
- Drones cannot fly more than 2 hours per day commercially
- The remote pilot in command must be available at all times and cannot hand off control without cessation (Correct answer)
- Live streaming requires an additional FCC broadcasting license
- Batteries must be replaced every 30 minutes regardless of charge level
Correct answer: The remote pilot in command must be available at all times and cannot hand off control without cessation
The RPIC must maintain operational control and situational awareness at all times; operational hand-offs require careful planning to remain compliant.
Question 3: Which business model would most likely require multiple Part 107 waivers simultaneously for routine operations?
- Real estate aerial photography in suburban Class G airspace
- Beyond visual line of sight pipeline inspection at night over rural areas (Correct answer)
- Roof inspections in uncontrolled airspace during the day
- Mapping a farm field at 200 ft AGL during daytime
Correct answer: Beyond visual line of sight pipeline inspection at night over rural areas
BVLOS flight and nighttime operations each require separate waivers, so combining them requires both simultaneously.
Question 4: A drone photography business wants to expand into package delivery. What regulatory framework applies?
- Standard Part 107 covers all commercial delivery operations
- Package delivery requires an FAA air carrier certificate or Part 135 approval (Correct answer)
- Delivery drones only need local business permits
- Commercial delivery is approved under Part 107 for packages under 55 lbs
Correct answer: Package delivery requires an FAA air carrier certificate or Part 135 approval
Commercial package delivery (e.g., Amazon Prime Air model) requires FAA Air Carrier certification under Part 135, not just Part 107.
Question 5: For liability purposes, a commercial drone operator should carry which type of insurance?
- Standard homeowner's insurance covers commercial drone incidents
- Hull and liability insurance specific to commercial UAS operations (Correct answer)
- Auto insurance that includes aerial vehicle riders
- FAA provides mandatory federal insurance coverage for Part 107 operators
Correct answer: Hull and liability insurance specific to commercial UAS operations
Commercial UAS operators should carry hull (physical damage) and liability insurance designed for drone operations, as standard policies typically exclude them.
Question 6: When should a commercial drone operator file a Report of Accident with the FAA?
- Only if the drone is destroyed beyond repair
- Within 10 days if the accident results in serious injury or property damage over $500 (Correct answer)
- Immediately after any hard landing
- Only if a manned aircraft was involved
Correct answer: Within 10 days if the accident results in serious injury or property damage over $500
Part 107.9 requires accident reports within 10 days when operations result in serious injury to any person or property damage exceeding $500.
Question 7: A commercial operator's drone malfunctions and causes $800 in property damage to a client's vehicle. What is the operator's first regulatory obligation?
- Report the accident to the FAA within 10 days (Correct answer)
- Immediately notify local law enforcement
- Ground all drones until an FAA inspector reviews the aircraft
- File a report only if the client requests it
Correct answer: Report the accident to the FAA within 10 days
An accident causing property damage above the $500 threshold triggers the mandatory 10-day FAA accident reporting requirement under Part 107.9.
FAA 107 Commercial Applications & Business Operations 3
A commercial drone operator is offered a contract to fly over a large outdoor concert with thousands of attendees.
Without a waiver, this operation is prohibited because: