Logistics, Inc. provides transportation services to companies throughout Kentucky.The company has several specialized trucks that are used to ship heavy items.The trucks are number 1 through 10.

Product, Inc. manufactures machinery used in electrical generation (big, heavy equipment).Product has two contracts with Logistics, each extending over three years, as follows:

Contract A1001:Logistics commits to picking up shipments within 24 hours, using any of the trucks numbers 1 through 9.Logistics has contracts with other companies and occasionally may include other shipments with those of Product.Although Logistics promises to deliver shipments anywhere in the continental U.S. within 5 days, it cannot confirm the specific day and time of delivery.

Contract A5002:Logistics commits to using truck number 10 to pick up and deliver shipments from Product.Depending on the destination, Logistics commits to delivery within 1 to 3 days.Upon pickup, Logistics provides the day and time of expected delivery (which may vary by a few hours depending on weather and other conditions).Truck number 10 returns to Kentucky empty and may not transport other company's shipments.

Do either (or both) of these contracts constitute a lease arrangement under the new FASB lease standard (the one we studied in class)?Explain what factors guide your conclusion.(Not a long explanation.)