Idaho State Statutes - Idaho Attorney Directory

(1) In this chapter
unless the context otherwise requires:
(a) "Buyer in ordinary course of business" means a person who in good
faith and without knowledge that the sale to him is in violation of the
ownership rights or security interest or leasehold interest of a third
party in the goods, buys in ordinary course from a person in the business
of selling goods of that kind but does not include a pawnbroker. "Buying"
may be for cash or by exchange of other property or on secured or
unsecured credit and includes acquiring goods or documents of title under
a preexisting contract for sale but does not include a transfer in bulk or
as security for or in total or partial satisfaction of a money debt.
(b) "Cancellation" occurs when either party puts an end to the lease
contract for default by the other party.
(c) "Commercial unit" means such a unit of goods as by commercial usage
is a single whole for purposes of lease and division of which materially
impairs its character or value on the market or in use. A commercial unit
may be a single article, as a machine, or a set of articles, as a suite of
furniture or a line of machinery, or a quantity, as a gross or carload, or
any other unit treated in use or in the relevant market as a single whole.
(d) "Conforming" goods or performance under a lease contract means goods
or performance that is in accordance with the obligations under the lease
contract.
(e) "Consumer lease" means a lease that a lessor regularly engaged in the
business of leasing or selling makes to a lessee who is an individual and
who takes under the lease primarily for a personal, family or household
purpose, if the total payments to be made under the lease contract,
excluding payments for options to renew or buy, do not exceed twenty-five
thousand dollars ($25,000).
(f) "Fault" means wrongful act, omission, breach or default.
(g) "Finance lease" means a lease with respect to which:
(i) The lessor does not select, manufacture, or supply the goods;
(ii) The lessor acquires the goods or the right to possession and
use of the goods in connection with the lease; and
(iii) One of the following occurs:
(A) The lessee receives a copy of the contract by which the
lessor acquired the goods or the right to possession and use of
the goods before signing the lease contract;
(B) The lessee's approval of the contract by which the lessor
acquired the goods or the right to possession and use of the
goods is a condition to effectiveness of the lease contract;
(C) The lessee, before signing the lease contract, receives an
accurate and complete statement designating the promises and
warranties, and any disclaimers of warranties, limitations or
modifications of remedies, or liquidated damages, including
those of a third party, such as the manufacturer of the goods,
provided to the lessor by the person supplying the goods in
connection with or as part of the contract by which the lessor
acquired the goods or the right to possession and use of the
goods; or
(D) If the lease is not a consumer lease, the lessor, before
the lessee signs the lease contract, informs the lessee in
writing:
a. Of the identity of the person supplying the goods to
the lessor, unless the lessee has selected that person and
directed the lessor to acquire the goods or the right to
possession and use of the goods from that person;
b. That the lessee is entitled under this chapter to the
promises and warranties, including those of any third
party, provided to the lessor by the person supplying the
goods in connection with or as part of the contract by
which the lessor acquired the goods or the right to
possession and use of the goods; and
c. That the lessee may communicate with the person
supplying the goods to the lessor and receive an accurate
and complete statement of those promises and warranties,
including any disclaimers and limitations of them or of
remedies.
(h) "Goods" means all things that are movable at the time of
identification to the lease contract, or are fixtures (section 28-12-309),
but the term does not include money, documents, instruments, accounts,
chattel paper, general intangibles, or minerals or the like, including oil
and gas, before extraction. The term also includes the unborn young of
animals.
(i) "Installment lease contract" means a lease contract that authorizes
or requires the delivery of goods in separate lots to be separately
accepted, even though the lease contract contains a clause "each delivery
is a separate lease" or its equivalent.
(j) "Lease" means a transfer of the right to possession and use of goods
for a term in return for consideration, but a sale, including a sale on
approval or a sale or return, or retention or creation of a security
interest is not a lease. Unless the context clearly indicates otherwise,
the term includes a sublease.
(k) "Lease agreement" means the bargain, with respect to the lease, of
the lessor and the lessee in fact as found in their language or by
implication from other circumstances including course of dealing or usage
of trade or course of performance as provided in this chapter. Unless the
context clearly indicates otherwise, the term includes a sublease
agreement.
(l) "Lease contract" means the total legal obligation that results from
the lease agreement as affected by this chapter and any other applicable
rules of law. Unless the context clearly indicates otherwise, the term
includes a sublease contract.
(m) "Leasehold interest" means the interest of the lessor or the lessee
under a lease contract.
(n) "Lessee" means a person who acquires the right to possession and use
of goods under a lease. Unless the context clearly indicates otherwise,
the term includes a sublessee.
(o) "Lessee in ordinary course of business" means a person who in good
faith and without knowledge that the lease to him is in violation of the
ownership rights or security interest or leasehold interest of a third
party in the goods leases in ordinary course from a person in the business
of selling or leasing goods of that kind but does not include a
pawnbroker. "Leasing" may be for cash or by exchange of other property or
on secured or unsecured credit and includes acquiring goods or documents
of title under a preexisting lease contract but does not include a
transfer in bulk or as security for or in total or partial satisfaction of
a money debt.
(p) "Lessor" means a person who transfers the right to possession and use
of goods under a lease. Unless the context clearly indicates otherwise,
the term includes a sublessor.
(q) "Lessor's residual interest" means the lessor's interest in the goods
after expiration, termination or cancellation of the lease contract.
(r) "Lien" means a charge against or interest in goods to secure payment
of a debt or performance of an obligation, but the term does not include a
security interest.
(s) "Lot" means a parcel or a single article that is the subject matter
of a separate lease or delivery, whether or not it is sufficient to
perform the lease contract.
(t) "Merchant lessee" means a lessee that is a merchant with respect to
goods of the kind subject to the lease.
(u) "Present value" means the amount as of a date certain of one (1) or
more sums payable in the future, discounted to the date certain. The
discount is determined by the interest rate specified by the parties if
the rate was not manifestly unreasonable at the time the transaction was
entered into; otherwise, the discount is determined by a commercially
reasonable rate that takes into account the facts and circumstances of
each case at the time the transaction was entered into.
(v) "Purchase" includes taking by sale, lease, mortgage, security
interest, pledge, gift or any other voluntary transaction creating an
interest in goods.
(w) "Sublease" means a lease of goods the right to possession and use of
which was acquired by the lessor as a lessee under an existing lease.
(x) "Supplier" means a person from whom a lessor buys or leases goods to
be leased under a finance lease.
(y) "Supply contract" means a contract under which a lessor buys or
leases goods to be leased.
(z) "Termination" occurs when either party pursuant to a power created by
agreement or law puts an end to the lease contract otherwise than for
default.
(2) Other definitions applying to this chapter and the sections in which
they appear are:
"Accessions." Section 28-12-310(1).
"Construction mortgage." Section 28-12-309(1)(d).
"Encumbrance." Section 28-12-309(1)(e).
"Fixtures." Section 28-12-309(1)(a).
"Fixture filing." Section 28-12-309(1)(b).
"Purchase money lease." Section 28-12-309(1)(c).
(3) The following definitions in other chapters apply to this chapter:
"Account." Section 28-9-102(a)(2).
"Between merchants." Section 28-2-104(3).
"Buyer." Section 28-2-103(1)(a).
"Chattel paper." Section 28-9-102(a)(11).
"Consumer goods." Section 28-9-102(a)(23).
"Document." Section 28-9-102(a)(30).
"Entrusting." Section 28-2-403(3).
"General intangible." Section 28-9-102(a)(42).
"Good faith." Section 28-1-201(b)(20).
"Instrument." Section 28-9-102(a)(47).
"Merchant." Section 28-2-104(1).
"Mortgage." Section 28-9-102(a)(55).
"Pursuant to commitment." Section 28-9-102(a)(68).
"Receipt." Section 28-2-103(1)(c).
"Sale." Section 28-2-106(1).
"Sale on approval." Section 28-2-326.
"Sale or return." Section 28-2-326.
"Seller." Section 28-2-103(1)(d).
(4) In addition, chapter 1, title 28, contains general definitions and
principles of construction and interpretation applicable throughout this
chapter.

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