CLFP EXAM - LEASING LAW
QUESTIONS WITH 100% CORRECT
ANSWERS { GRADED A+}
What is Statutory Law? - ✔✔Includes law enacted by legislative bodies
such as state legislatures and US Congress. The Uniform Commercial
Code or "UCC" is a body of the state statutory law.
What is Regulatory Law? - ✔✔Consists of regulations adopted by
public bodies. Examples of regulatory law are regulations issued by the
Internal Revenue Service (IRS) or the Securities Exchange Commission
(SEC). Generally regulatory laws are not binding up the courts in the
manner or statutory laws, but may be subject to broader interpretation
What is Federal Law? - ✔✔Encompasses laws adopted by the US
Congress such as the IRS and Bankruptcy Code. Although federal case
,precedent may be important in interpreting these and other statutory
laws, federal common law generally has little application to equipment
leasing and finance transactions
What is State Law? - ✔✔General more relevant to the day to day
leasing operations. State law include the UCC and cases interpreting it.
Particular sate statutory tax laws are also important in leasing
consideration
What is Conflicts of Law? - ✔✔Refers to inconsistencies in laws from
state to state. Because state laws are not uniform, the concept of
"conflict of laws" often comes into play. This is the concept under which
a court chooses to apply the law of one state over another. For example,,
the usury law of a given sate my hold a lease unenforceable, while the
law of another state will allow it to be enforced as written
What is "choice of law" provision? - ✔✔language added to lease
documents in which the lease states that the law of a particular state will
be applied in any dispute regarding the lease. Generally speaking the
, courts uphold the choice of law if the overall transaction bear some
"reasonable" relation" to the states law is chosen
What is Contract Law? - ✔✔Generally a matter of state law. Although
certain statues are important to contract enforcement, case law plays a
major role in each state.
Requirements for a "valid enforceable contract" include "an offer and
acceptance evidencing a mutual agreement on principal terms and
consideration, or something of value, given or promised by each party."
What is Capacity? - ✔✔Each party must be legally able to enter into a
contract.
What is Legality? - ✔✔A requirement often used to prohibit
enforcements of secured financings that exceed the legal usury limit, but
also available to prohibit leases of equipment used in illegal activity,
such as gambling where it is not permitted by applicable law
QUESTIONS WITH 100% CORRECT
ANSWERS { GRADED A+}
What is Statutory Law? - ✔✔Includes law enacted by legislative bodies
such as state legislatures and US Congress. The Uniform Commercial
Code or "UCC" is a body of the state statutory law.
What is Regulatory Law? - ✔✔Consists of regulations adopted by
public bodies. Examples of regulatory law are regulations issued by the
Internal Revenue Service (IRS) or the Securities Exchange Commission
(SEC). Generally regulatory laws are not binding up the courts in the
manner or statutory laws, but may be subject to broader interpretation
What is Federal Law? - ✔✔Encompasses laws adopted by the US
Congress such as the IRS and Bankruptcy Code. Although federal case
,precedent may be important in interpreting these and other statutory
laws, federal common law generally has little application to equipment
leasing and finance transactions
What is State Law? - ✔✔General more relevant to the day to day
leasing operations. State law include the UCC and cases interpreting it.
Particular sate statutory tax laws are also important in leasing
consideration
What is Conflicts of Law? - ✔✔Refers to inconsistencies in laws from
state to state. Because state laws are not uniform, the concept of
"conflict of laws" often comes into play. This is the concept under which
a court chooses to apply the law of one state over another. For example,,
the usury law of a given sate my hold a lease unenforceable, while the
law of another state will allow it to be enforced as written
What is "choice of law" provision? - ✔✔language added to lease
documents in which the lease states that the law of a particular state will
be applied in any dispute regarding the lease. Generally speaking the
, courts uphold the choice of law if the overall transaction bear some
"reasonable" relation" to the states law is chosen
What is Contract Law? - ✔✔Generally a matter of state law. Although
certain statues are important to contract enforcement, case law plays a
major role in each state.
Requirements for a "valid enforceable contract" include "an offer and
acceptance evidencing a mutual agreement on principal terms and
consideration, or something of value, given or promised by each party."
What is Capacity? - ✔✔Each party must be legally able to enter into a
contract.
What is Legality? - ✔✔A requirement often used to prohibit
enforcements of secured financings that exceed the legal usury limit, but
also available to prohibit leases of equipment used in illegal activity,
such as gambling where it is not permitted by applicable law
