Marine Expeditions,Inc.,pays Nate's Boats $4,000 to use an oceangoing vessel for a month.For the purposes of the UCC,this is

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The payment made by Marine Expeditions, Inc. to Nate's Boats to use the oceangoing vessel for a month is typical of a lease, where one party (lessee) pays the other party (lessor) for the temporary use of a good. It is not a sale because ownership of the vessel does not transfer to Marine Expeditions, Inc., nor is it a consignment as there is no agreement for Nate's Boats to sell the vessel on behalf of Marine Expeditions, Inc. Finally, it is not a non-taxable event as both parties may have tax implications for the transaction.