Robert Badger Operated a Hardware Business as a Sole Proprietorship

question 33

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 20,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:

Costs

The monetary value associated with the production, acquisition, and maintenance of goods or services.

Product Liability

A legal concept that holds manufacturers, wholesalers, distributors, and retailers accountable for any injuries products cause.

Inspect and Test

The process of examining and evaluating a product or system to ensure it meets specific standards or criteria.

Purchased Components

Components or parts bought from external suppliers for use in the manufacturing process of a product.