Article 2A

Question 1

what does article 2A apply to?

Answer 1

all leasing transactions including short term, long term, business and consumer leases

Question 2

definition of a lease

Answer 2

a transfer of the right to possession and use go foods for a term in return for consideration, but a sale, including a sale on approval or a sale or return, or retention or creation of a security interest is not a lease. Includes subleases

Question 3

is a lease agreement the same as a lease contract?

Answer 3

no

lease agreement = what the parties agreed to
lease contract = when the agreement becomes a legal obligation

Question 4

which UCC section is used in determining whether a transaction is a disguised sale or a true lease?

Answer 4

UCC 1-203

Question 5

what does nominal mean?

Answer 5

a really good deal when the option to purchase becomes available

Question 6

under what light to you examine the 1-203 factors when determining whether the transaction is a disguised sale or a true lease?

Answer 6

in light of the reasonable expectations the parties had at the time they entered in to the contract

Question 7

what is the fundamental idea supporting a lease?

Answer 7

something of value returns to the lessor at the end of the lease

Question 8

if a transaction is a disguised sale, which article applies?

Answer 8

article 9

Question 9

if a transaction is a true lease, which article applies?

Answer 9

article 2A

Question 10

if a transaction is a true lease, when can the lessor get the goods back?

Answer 10

if the lessee does not pay

Question 11

if a transaction is a true lease, does a lessor have to have a filing to get the goods back if the lessee does not pay

Answer 11

no, no filing is required and article 2A governs