Quoted:
I'm pretty sure that the FAA has implemented rules governing the use of UAVs, which this device seems to be.
As I recall, some of the rules are against flying the UAV:
-greater than a certain distance from the pilot.
-flying over private property that you don't own.
-using the UAV for the purpose of invading someones' privacy, or performing surveillance of them w/o their knowledge.
Hopefully someone else with better knowledge of this will chime in.
The Academy of Model Aeronautics, the national organization for radio control aircraft models, is lobbying for exception for model aircraft, and this copter will probably fall under that.
A cool application of this type of copter is hooking it up to GPS and using it for arial photos, and doing it for MONEY. Unfortunately, this kind of setup has a pretty steep startup cost.
These quad copters can be pretty pricy, so 4K would not be out of line if they are including damage to the copter, of which I did not see in those photos, unless they count the battery. If it "went out of control before being brought down manually", then possibly they were trying to fly it via GPS and it got hit?