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Pemulis Auto offers to sell Lloyd, an Uber driver, a Somme Sedan for a down payment of $1,000, along with 36 monthly payments of $400. Lev likes those terms, but would prefer a lease, on the theory that he could deduct the lease payments as a business expense. So Pemulis Auto offers a Lease Agreement, under which Llovd ("Lessee") pays down $1,000 and is obliged to make 36 monthly lease payments of $400 to Pemulis ("Lessor"), and then will have an option to purchase the car for $1. The Lease Agreement further provides that if Lev fails to make the paynents, Pemulis Auto may repossess the car. Lev signs and hands over $1,000. Pemulis Auto signs the papers to have the car registered in Lloyd's name and reminds him to get insurance on the car. Is the transaction subject to Article 9?a. No. It is a lease, not a secured loan. consignment. sale of accounts, or agricultural lien.b. Yes. In substance. the transaction is a sale of the car on credit. with the car serving as collateral.c. No. Article 9 does not apply to cars, which are regulated by Lemon laws and the like.d. No. Article 9 does not apply to true leases, and the parties have draftedan agreement using only lease terminology.

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