An Ordinary Contract Between the Debtor and His Creditors Whereby

question 58

Multiple Choice

An ordinary contract between the debtor and his creditors whereby the creditors receive pro rata a part of their claims and the debtor is discharged from the balance of the claims is:

• A) a non-statutory composition.
• B) a statutory assignment.
• C) an equity receivership.
• D) an automatic stay.

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Definitions:

Binding Rent-Control

A type of rent regulation where the set price ceilings are below the market equilibrium rent, leading to shortages and reduced quality of rental housing.

Transaction Costs

Expenses incurred in the process of making an economic exchange, including search, information, bargaining, decision, policing, and enforcement costs.

Allocation

The process of distributing resources or goods among various uses or people in a systematic way.

Market For Butter

The venue or environment where buyers and sellers interact to trade butter, determined by factors like price, quality, and availability.