Robert Badger Operated a Hardware Business as a Sole Proprietorship

question 47

Essay

Robert Badger operated a hardware business as a sole proprietorship and owed $200 000 to creditors.On June 1,1998,he transferred $20 000 of inventory to Smith Supplies Inc.to pay in full the indebtedness he owed that company.At the time he was not paying his debts as they became due.Instead he paid some money towards accounts when pressed,or he negotiated with them to give him more time to pay.On July 15,he transferred a truck used in the business for one dollar to his cousin.On July 2h,a creditor obtained a default judgment and the sheriff seized goods on July 28 in relation to that judgment.The goods were later sold in a judicial sale.On July 29,he purchased on credit $15 000 worth of new inventory.On August 14,a creditor petitioned him into bankruptcy.List each incident where there is an act of bankruptcy.Discuss Robert's situation in relation to the provisions of the Bankruptcy and Insolvency Act.

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Definitions:

Breach Of Contract

The failure of one party to fulfill any of its agreed terms and conditions without a lawful excuse.

Independent Contractors

Individuals or businesses that provide goods or services to another entity under terms specified in a contract, but are not considered employees.

Job Classification

The categorization of positions within an organization based on duties, responsibilities, and the level of authority.

Better Benefits

Enhanced advantages or perks provided to employees, beyond statutory requirements, aimed at improving their work-life balance and job satisfaction.