Congratulations! You Have Just Been Named as a Judge in Your

question 4

Essay

Congratulations! You have just been named as a judge in your state's general trial court. Your first case involves a complicated environmental statute. What methods might you use to interpret and apply the statute to your case?

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Definitions:

Tax-Oriented Lease

A lease structured in such a way that the lessor can claim tax benefits, such as depreciation and tax credits.

Financial Lease

A type of lease where the lessee pays for an asset over a period of time, and at the end of the lease term the asset typically becomes the lessee's property.

Lessor

The entity in a lease agreement that possesses the asset and allows the lessee to utilize the asset in return for payments of rent.

Break-Even Lease Payment

The break-even lease payment is the lease payment at which the cost of leasing equals the cost of owning, neither gaining nor losing financially over the term of the lease.