If it stays below 500ft, and is controlled by someone with line of sight (who is also the owner of the property, or has consent from the owner) then it is allowed under FAA reg.
Nope, wrong, not if it's being used in commercial application. The FAA regs that exempt model aviation specifically restrict it to non-commercial activities. When you are in open air and are any distance from the ground, you are in FAA airspace.