New Jersey § 12a:2a-103

§ 12a:2a-103.

(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 the person

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 pre-existing 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 are

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 a natural person and who takes under the lease primarily

for a personal, family, or household purpose. (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 (12A:2A-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 the person

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 pre-existing 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 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” 12A:2A-310(1). “Construction mortgage” 12A:2A-309(1)(d). “Encumbrance” 12A:2A-309(1)(e). “Fixtures” 12A:2A-309(1)(a). “Fixture filing” 12A:2A-309(1)(b). “Purchase money lease” 12A:2A-309(1)(c). (3) The following definitions in other Chapters apply to this Chapter: “Account” 12A: 9-102(a)(2). “Between merchants” 12A:2-104(3). “Buyer” 12A:2-103(1)(a). “Chattel paper” 12A:9-102(a)(12)12A:9-102(a)(11). “Consumer goods” 12A:9-102(a)(24)12A:9-102(a)(23). “Document” 12A:9-102(a)(31)12A:9-102(a)(30). “Entrusting” 12A:2-403(3). “General intangible” 12A:9-102(a)(42). “Good faith” 2A:2-103(1)(b). “Instrument” 12A:9-102(a)(47). “Merchant” 12A:2-104(1). “Mortgage” 12A:9-102(a)(55). “Pursuant to commitment” 12A:9-102(a)(68). “Receipt” 12A:2-103(1)(c). “Sale” 12A:2-106(1). “Sale on approval” 12A:2-326. “Sale or return” 12A:2-326. “Seller” 12A:2-103(1)(d). (4) In addition chapter 1 contains general definitions and principles of construction

and interpretation applicable throughout this chapter.