Which of the following statements is FALSE?
A) If the lease is deemed to be a true lease, the firm is assumed to have effective ownership of the asset and the asset is protected against seizure.
B) Although the legal ownership of the asset resides with the lessor, in a nontax lease the lessee receives the depreciation deductions.
C) The treatment of leased property in bankruptcy will depend on whether the lease is classified as a security interest or a true lease by the bankruptcy judge.
D) In a nontax lease, the interest portion of the lease payment is interest income for the lessor.
Answer: A
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Which of the following is true of disposition of collateral?
A) Disposition of collateral must be a public proceeding. B) The debtor is entitled to receive any surplus collateral that remains after disposition. C) The debtor need not be notified of the disposition as the creditor has complete claim on the collateral. D) Disposition of collateral occurs when the default is by the creditor.
The judge will decide which jury instructions to give based on:
a. the legal and factual arguments. b. the overall appropriateness of the instruction. c. whether sufficient evidence was presented during the trial. d. recommended or pattern jury instructions for the jurisdiction. e. All of the above