CLFP EXAM - Leasing Law 2024 Questions & Answers
| 100% Correct | Verified
What is Statutory Law? - Includes law enacted by legislative bodies such as state legislatures and US
Congress. The Uniform Commercial Code or "UCC" is a body of the state statutory law.
What is Regulatory Law? - C...
CLFP EXAM - Leasing Law 2024 Questions & Answers | 100% Correct | Verified What is Statutory Law? - ✔✔Includes law enacted by legislative bodies such as state legislatures and US Congress. The Uniform Commercial Code or "UCC" is a body of the state statutory law. What is Regulatory Law? - ✔✔Consists of regulations adopted by public bodies. Examples of regulatory law are regulations issued by the Internal Revenue Service (IRS) or the Securities Exchange Commission (SEC). Generally regulatory laws are not binding up the courts in the manner or statutory laws, but may be subject to broader interpretation What is Federal Law? - ✔✔Encompasses laws adopted by the US Congress such as the IRS and Bankruptcy Code. Although federal case precedent may be important in interpreting these and other statutory laws, federal common law generally has little application to equipment leasing and fi nance transactions What is State Law? - ✔✔General more relevant to the day to day leasing operations. State law include the UCC and cases interpreting it. Particular sate statutory tax laws are also important in leasing consideration What is Conflicts of Law? - ✔✔Refers to inconsistencies in laws from state to state. Because state laws are not uniform, the concept of "conflict of laws" often comes into play. This is the concept under which a court chooses to apply the law of one state over another. For example,, th e usury law of a given sate my hold a lease unenforceable, while the law of another state will allow it to be enforced as written What is "choice of law" provision? - ✔✔language added to lease documents in which the lease states that the law of a particular state will be applied in any dispute regarding the lease. Generally speaking the courts uphold the choice of law if the overall transaction bear some "reasonable" rela tion" to the states law is chosen What is Contract Law? - ✔✔Generally a matter of state law. Although certain statues are important to contract enforcement, case law plays a major role in each state. Requirements for a "valid enforceable contract" include "an offer and acceptance evidencing a mutual agreement on principal terms and consideration, or something of value, given or promised by each party." What is Capacity? - ✔✔Each party must be legally able to enter into a contract. What is Legality? - ✔✔A requirement often used to prohibit enforcements of secured financings that exceed the legal usury limit, but also available to prohibit leases of equipment used in illegal activity, such as gambling where it is not permitted by applicable law What is Statute of Frauds? - ✔✔Provides that certain types of contracts are not enforceable unless in writing. Example under UCC, a lease contract with payments in excess of $1,000 are not enforceable unless written. What is Bundle of Rights Concept? - ✔✔the parties have identified specific rights listed in the contract each of which is legally enforceable. It is not uncommon for each party's rights to conflict in some respect with others - thus legal analysis/litigation results Where is the legal definition of a lease found? - ✔✔UCC Article 1 -201. Article 2A for true lease. Article 9 for secured loan When is the first a transaction create a security interest? - ✔✔If the consideration the lessee is to pay the lessor for the right to possession and use of the goods is an obligation for the term of the lease not subject to termination by the lessee 1.) the term of the lease is equal to or greater than the remaining economic life of the goods 2) the lessee is bound to renew for economic life or own the property 3.) the lessee has the option to renew the lease for no or nominal consideration upon compliance with the lease 4.) the lessee has the option to own the goods for no or nominal consideration upon compliance of the lease
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