California Codes, Civil Code - CIV, Division 3 — Obligations, Part 4 — Obligations Arising from Particular Transactions, Title 14 — Lien, Chapter 2b — Automobile Sales Finance Act, Section 2981.5
A contract for the bailment or leasing of a motor vehicle, with or without accessories, which establishes the maximum for which a bailee or lessee could be held liable at the end of the lease or bailment period, or upon an earlier termination, by reference to the value of the vehicle at such time, is not a contract by which the bailee or lessee will become or for no other or for a nominal consideration has the option of becoming the owner of the vehicle, for the purposes of paragraph (2) of subdivision (a) of Section 2981 or any other provision of this chapter.
Notes
Defines a motor-vehicle bailment or lease that measures the bailee’s or lessee’s maximum end-of-term or early-termination liability by the vehicle’s value as not being a contract under which the bailee or lessee becomes, or for no or nominal consideration may become, the vehicle’s owner. The classification applies for the referenced conditional-sale rule and other chapter provisions.
Use as reference
Lexinter.net | California Code, Civil Code - CIV § 2981.5 | https://laws.lexinter.net/codes/california/civil-code/division-3/part-4/title-14/chapter-2b/section-2981-5