Wisconsin Statutes 411.103 – Definitions and index of definitions
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Terms Used In Wisconsin Statutes 411.103
- Acquire: when used in connection with a grant of power to any person, includes the acquisition by purchase, grant, gift or bequest. See Wisconsin Statutes 990.01
- Contract: A legal written agreement that becomes binding when signed.
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- Following: when used by way of reference to any statute section, means the section next following that in which the reference is made. See Wisconsin Statutes 990.01
- Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
- in writing: includes any representation of words, letters, symbols or figures. See Wisconsin Statutes 990.01
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Person: includes all partnerships, associations and bodies politic or corporate. See Wisconsin Statutes 990.01
- Property: includes real and personal property. See Wisconsin Statutes 990.01
(1) In this chapter, unless the context requires otherwise:
(a) “Buyer in ordinary course of business” means a person who, in good faith and without knowledge that the sale to him or her is in violation of the ownership rights or security interest or leasehold interest of a 3rd 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, such as a machine, or a set of articles, such as a suite of furniture or a line of machinery, or a quantity, such 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 $25,000.
(f) “Fault” means wrongful act, omission, breach or default.
(g) “Finance lease” means a lease with respect to which all of the following occur:
1. The lessor does not select, manufacture or supply the goods.
2. The lessor acquires the goods or the right to possession and use of the goods in connection with the lease.
3. 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 3rd 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.
d. If the lease is not a consumer lease, the lessor, before the lessee signs the lease contract, informs the lessee in writing 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, that the lessee is entitled under this chapter to the promises and warranties, including those of a 3rd 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 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 as defined in s. 411.309 (1) (d). “Goods” also includes the unborn young of animals. “Goods” does not include money, documents, instruments, accounts, chattel paper or general intangibles and does not include minerals or the like, including oil and gas, before extraction.
(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 stating “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 a retention or creation of a security interest is not a lease. Unless the context clearly indicates otherwise, “lease” 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, “lease agreement” 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, “lease contract” 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, “lessee” 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 or her is in violation of the ownership rights or security interest or leasehold interest of a 3rd 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, “lessor” 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. “Lien” 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 when 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 when 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:
(a) “Accessions” – s. 411.310 (1).
(b) “Construction mortgage” – s. 411.309 (1) (a).
(c) “Encumbrance” – s. 411.309 (1) (b).
(d) “Fixture filing” – s. 411.309 (1) (c).
(e) “Fixtures” – s. 411.309 (1) (d).
(f) “Purchase money lease” – s. 411.309 (1) (e).
(3) The following definitions in other chapters apply to this chapter:
(a) “Account” – s. 409.102 (1) (ag).
(b) “Between merchants” – s. 402.104 (1).
(c) “Buyer” – s. 402.103 (1) (a).
(d) “Chattel paper” – s. 409.102 (1) (cm).
(e) “Consumer goods” – s. 409.102 (1) (fm).
(f) “Document” – s. 409.102 (1) (hg).
(g) “Entrusting” – s. 402.403 (3).
(h) “General intangible” – s. 409.102 (1) (kg).
(i) “Good faith” – s. 402.103 (1) (b).
(j) “Instrument” – s. 409.102 (1) (Lm).
(k) “Merchant” – s. 402.104 (3).
(L) “Mortgage” – s. 409.102 (1) (nm).
(m) “Pursuant to commitment” – s. 409.102 (1) (qs).
(n) “Receipt” – s. 402.103 (1) (c).
(o) “Sale” – s. 402.106 (6).
(p) “Sale on approval” – s. 402.326 (1) (a).
(q) “Sale or return” – s. 402.326 (1) (b).
(r) “Seller” – s. 402.103 (1) (d).
(4) In addition, ch. 401 contains general definitions and principles of construction and interpretation applicable throughout this chapter.