In a finance lease,when does the risk of loss pass from the supplier to lessee,if the supplier is a merchant?
A) when the parties sign the lease contract
B) when the lessee make the first lease payment
C) when the lessor receives the first lease payment
D) when the supplier ships the goods
E) when the lessee receives the goods

Question

Quizplus · Accepted Answer

In a finance lease, the risk of loss passes from the supplier to the lessee at the time the lessee receives the goods. Therefore, the correct answer is E - when the lessee receives the goods.

In a Finance Lease,when Does the Risk of Loss Pass