Sales and Leases

Question 1

whether a creditor can repossess property that a debtor leases is based on…

Answer 1

when the creditor’s lien attaches

- creditor whose security interest attaches after the creation of a lease interest may not repossess the leased property

Question 2

what will allow a lessee’s creditors to seize leased property

Answer 2

lease is a disguised sale

Question 3

according to UCC § 2A, when is creating a sublease grounds for default on the prime lease

Answer 3

when the sublease is a material violation of the prime lease K

Question 4

lessee defaults on a lease (of goods) with lessor. lessor repossesses the goods and leases the good to another person. what is included in the damages

Answer 4

the unpaid rent from default to the start of the new lease (re-lease ends the period of damage)

Question 5

when can a lessee refuse to pay a lessor on a nonconsumer finance lease

Answer 5

if the goods are not accepted

Question 6

most compelling reason for the court to grant attorney’s fees to a lessor in a consumer lease (of goods) action

Answer 6

consumer knowingly filed a baseless action

Question 7

when is a lease term allowing acceleration of the entire lease obligation at the will of the lessor enforceable

Answer 7

when made in good faith

Question 8

UCC § 2A governs what kind of transaction

Answer 8

the lease of goods (temporarily transfers the rights of use and possession of a good in exchange for valuable consideration)

Question 9

a lease becomes a disguised sale on credit when the lease agreement exhibits…

Answer 9

certain characteristics of sale
- lessee must not have the right to terminate the obligation to pay
- lease must either cover the entire economic life of the goods or transfer ownership to lessee
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