CLFP EXAM - Leasing Law UPDATED ACTUAL
Questions and CORRECT Answers 2026/2027
What is Statutory Law? - ANSWERIncludes 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? - ANSWERConsists 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? - ANSWEREncompasses 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? - ANSWERGeneral 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? - ANSWERRefers 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? - ANSWERlanguage
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
Questions and CORRECT Answers 2026/2027
What is Statutory Law? - ANSWERIncludes 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? - ANSWERConsists 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? - ANSWEREncompasses 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? - ANSWERGeneral 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? - ANSWERRefers 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? - ANSWERlanguage
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
