(1) That person knows that the FSTD does not have an FAA-approved sponsor; and
(2) The use of the FSTD by that person is nonetheless claimed for purposes of meeting any requirement of this chapter or that person knows or should have known that the person's acts or omissions would cause another person to mistakenly credit use of the FSTD for purposes of meeting any requirement of this chapter.
(b) A situation in which paragraph (a) of this section would not apply to a person would be when each of the following conditions are met:
(1) The person sold or leased the FSTD and merely represented to the purchaser or lessee that the FSTD is in a condition in which it should be able to obtain FAA approval and qualification under this part;
(2) The person does not falsely claim to be the FAA-approved sponsor for the FSTD;
(3) The person does not falsely make representations that someone else is the FAA-approved sponsor of the FSTD at a time when that other person is not the FAA-approved sponsor of the FSTD; and
(4) The person's acts or omissions do not cause another person to detrimentally rely on such acts or omissions for the mistaken conclusion that the FSTD is FAA-approved and qualified under this part at the time the FSTD is sold or leased.