In a finance lease involving a lessor, a lessee, and a supplier, what are the lessee's obligations if the leased equipment turns out to be defective?
Explanation
This question explores the unique obligations of a lessee in a finance lease under UCC Article 2A. Unlike typical contracts, the lessee's duty to pay the lessor (the financier) is not excused if the goods are defective; the lessee's remedy is against the third-party supplier.
Other questions
In a commercial transaction involving the sale of goods, what happens when a common law contract rule conflicts with a state statutory law based on the Uniform Commercial Code (UCC)?
According to the Uniform Commercial Code (UCC), what defines a 'sale'?
To be classified as 'goods' under Article 2 of the UCC, what two characteristics must an item of property possess?
Under the UCC, when is a contract for the sale of minerals, such as oil and gas, considered a contract for the sale of goods?
When a contract involves a combination of goods and services, what test do courts generally use to determine if the contract is governed by the UCC?
Which of the following describes a person who is considered a 'merchant' under Article 2 of the UCC?
What is the total amount of lease payments that defines a lease as a 'consumer lease' under Article 2A of the UCC?
If a sales contract does not specify a price, how will a court determine the price under the UCC?
Under the UCC, what is the maximum length of time a merchant's firm offer can be held irrevocable without consideration?
What is the legal effect when a seller, in response to an order for goods, makes a prompt shipment of nonconforming goods without notifying the buyer that it is an accommodation?
In a contract between merchants under the UCC, when do additional terms in an acceptance NOT become part of the contract?
What does the UCC require for an agreement modifying a contract for the sale of goods to be binding?
Under the UCC's Statute of Frauds, a sales contract for goods must be in writing to be enforceable if the price of the goods is at what amount?
Which of the following is an exception to the UCC's Statute of Frauds, making an oral contract enforceable?