Jared needs a fancy sports car.Jared only wants to use the car for three months.Jared goes to the bank and requests a loan for the sports car.Instead of giving Jared a loan for the car,the bank tells Jared,"we (the Bank)will purchase the car and you can use it for three months,so long as you pay us $4,000 a month." The Bank purchases the sports car from the manufacturer and then lets Jared use the car,so long as he makes $4,000 each month.Under the UCC,what type of sale or lease is this?
A) an ordinary sale
B) a finance sale
C) a finance lease
D) an ordinary lease
E) a manufacturer sale and lease

Question

Quizplus · Accepted Answer

This is a finance lease because the bank is purchasing the car and allowing Jared to use it for a period of time while he makes installment payments. The bank is effectively leasing the car to Jared with an option to purchase at the end of the lease.

Jared Needs a Fancy Sports Car