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NEW QUESTION: 1
Milton Edwards leased an automobile from First National Bank. The lease contained a provision whereby Milton would be liable for the automobile at the end of the lease based on its fair market value. At the end of the lease, the bank notified Milton that the value of the automobile, based on industry publications, was $10,500 and required him to pay that amount to obtain ownership of the property. Milton objected and requested that the car be individually appraised.What must the bank do?
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B. Nothing; an estimate of the value based on industry standards is sufficient
C. Hire an independent appraiser to appraise the automobile (both parties agree to be bound by the appraisal)
D. Use the average of the car value as determined by a third party appraiser Milton hires with the original bank appraisal
Answer: A
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B. 04
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