Question: Ying leased a machine to haul large logs in her lumbering business. The lease required Ying to keep the machine in good repair and fully

Ying leased a machine to haul large logs in her lumbering business. The lease required Ying to keep the machine in good repair and fully insured, and to return it at the end of the lease in its original condition, subject to “normal wear and tear.” The machine never worked very well. Ying ran up large repair bills and began to suspect the machine was not heavy enough for the needs of her business. When she contacted the leasing company, she was reminded that the lessor had made no promises about performance of the equipment. Ying is thinking about stopping her lease payments and insurance premiums and leasing a heavier machine from another dealer. She needs that heavier machine to maintain profitable levels of production. What factors should she consider? What would you advise her to do?

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