In the Matter of Kmart Corp

question 203

Multiple Choice

In the Matter of Kmart Corp., where some creditors objected to the bankruptcy judge decision that "critical vendors" were to be paid first so that the store might stay in business, the appeals court held that:

• A) the record showed the prospect or benefit to the other creditors, which is necessary to allow the preferential payment of one class of creditors and so the critical-vendors order could stand
• B) the record did not show the prospect or benefit to the other creditors, which would be necessary to allow the preferential payment of one class of creditors and so the critical-vendors order could not stand
• C) the record did not show the prospect or benefit to the other creditors, which would be necessary to allow the preferential payment of one class of creditors but the critical-vendors order could stand anyway
• D) the record showed the prospect or benefit to the other creditors, which is necessary to allow the preferential payment of one class of creditors, but the critical-vendors order could not stand due to the special circumstances of the case
• E) the creditors who objected were unreliable and so should not be paid

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Definitions:

Throat

The front part of the neck, anatomically known as the pharynx, which houses the esophagus, trachea, and vocal cords.

Motion Parallax

A depth cue in visual perception where objects closer to the observer move faster across the visual field than objects further away, aiding in depth perception.

Neural Response

The activity and reactions of neurons in the brain in response to stimuli.

Eye

A crucial organ of vision enabling the perception of light, shapes, and colors.