If the lease is a finance lease and the supplier is a merchant,the risk of loss passes to the ________ on the receipt of the goods.

Question

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In a finance lease, the lessee is considered the owner of the leased asset for the duration of the lease agreement. Therefore, the risk of loss typically passes to the lessee upon receipt of the goods. The lessor or financer may still have some residual interest in the asset, but they do not assume the risk of loss in this scenario. The supplier may have transferred ownership of the goods to the lessee or lessor, depending on the terms of the lease agreement, but they are not responsible for the risk of loss once the goods have been delivered.

If the Lease Is a Finance Lease and the Supplier