Which of the following best describes Article 2A?

• A. It governs leases of personal property.
• B. It governs real estate transactions.
• C. It governs corporate taxation.
• D. It governs insurance contracts.

Answer: (A)

Article 2A under the Uniform Commercial Code covers leases of goods, meaning the use of tangible, movable personal property in exchange for payment. It provides rules and framework for how these leases operate, including duties of the lessor and lessee, what happens if a payment is missed, and remedies if there’s a dispute. Real estate transactions aren’t included because they involve real property law and separate statutes. Corporate taxation and insurance contracts likewise fall outside this area, being governed by tax and insurance law, respectively. So the best description is that Article 2A governs leases of personal property.