Want to know:

Chang Equipment was negotiating a one-year loan of $50,000 at 10% interest from Nightflyer Finance, putting up equipment worth $120,000 as collateral. Nightflyer wished to avoid the complexities of debtor-cred-itor law. Creatively, the parties crafted the following transaction. Chang Equipment agreed to sell the equipment to Nightflyer for $50,000, although Chang Equipment retained use of the equipment. In one year, Chang has the option to buy the equipment back for $55,000. If it does not buy the equipment back, Nightflyer gets the equipment. Does Article 9 apply to the transaction?a. Yes. The transaction, in substance if not form, is a secured loan.b. No. The transaction is a sale of equipment with an option to buy back, with no debt or collateral.c. No. The transaction is a true lease.d. No. Article 9 applies only to consumer transactions.

Get a detailed, AI-powered explanation for this question and thousands more on StudyFetch.