Which of the Following Statements Is True About Leases

question 26

Multiple Choice

Which of the following statements is true about leases?

• A)It is a transfer of the ownership of goods from one merchant to another.
• B)It is a transfer of the rights to possess and use the goods belonging to another.
• C)Article 2 of the UCC deals exclusively with leases of goods.
• D)It is governed by the same principles of common law that predominantly govern service contracts.

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Definitions:

Tension

A state of mental or emotional strain, stress, or conflict that can also refer to the physical stretching of an object or material.

Decision

The act or process of making choices or selecting an option from a range of possibilities, often after a period of deliberation.

Framing Effect

The tendency for people’s choices to be affected by how a choice is presented, or framed, such as whether it is worded in terms of potential losses or gains.

Potential Losses

Possible negative outcomes or detriments that could occur as a result of specific actions, decisions, or events.