Doc Holliday
En-Route
Setting aside for a moment the morality of whether a 3rd party should step in to the transaction or not, suppose the engine did grenade and the new owner did die in the ensuing accident. Could the cause of the failure be traced back to the prop strike? And would the seller be liable for it? If so, what would be the penalty?
I would actually disagree.
A simple teardown inspection would reveal that sudden stoppage had occurred in the engines life cycle if it was extensive enough. Would you be able to conclusively prove that the engine failure was a result of that? Maybe - Maybe not.
Using the situation posted by asicer, you would have a difficult time tearing down an engine that “grenaded” and determining that a previous prop strike was the culprit.
But asicer asked about a penalty, which I took is someone seeking legal relief. Litigating something like this would be extremely difficult, and very expensive.