Frank Sottolano served for 20 years in the U.S. Army, including a 10-year stint as a paralegal with the Office of Judge Advocate General.
Following his service, he took advantage of the G.I. Bill and obtained his J.D. at the Nashville School of Law.
He successfully passed the bar exam and is now a licensed attorney.
Frank has always wanted to perform criminal defense work and decided to open his own firm.
Frank secured an office, purchased a computer, but needed to secure office furniture for himself and his assistant.
Frank went to Nashville Office Interiors and picked out desks, chairs, shelves and even some artwork to hang on the walls.
Money was tight, so Frank entered into an office furniture lease agreement that extended over 36 months.
Crest Capital provided financial backing for the transaction. To secure delivery of the furnishings, Crest Capital required that Frank personally guarantee performance under the agreement.
The agreement expressly stated that it was a finance lease as defined by Article 2A of the UCC and permitted purchase of the equipment upon conclusion of the lease for a mere $200.00.
Unfortunately, Frank’s earlier service in the Army included work in burn-pits in Afghanistan.
He contracted cancer and was forced to close his practice after only 11 months.
He defaulted upon the lease agreement in month 12 and Crest Capital brought action.
Question :
What Article(s) of the UCC should apply in this scenario?
In your answer, use the court’s decision in Carter v. Tokai Financial Services, Inc.
to support your argument.