In the Matter of Kmart Corp

question 15

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 the decision of the bankruptcy judge was:

• A) within the scope of judgment allowed in an effort to keep a business functioning
• B) proper because the critical vendors were the secured creditors with preference
• C) proper so long as the proceeds of future sales were dedicated to non-critical vendors
• D) improper because it violated the payment schedule required in the Bankruptcy Code
• E) none of the other choices

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Definitions:

Fossilized Elephants

Prehistoric elephants that have been preserved in petrified form, providing insights into the evolutionary history of Elephants.

Living Things

Organisms that exhibit the characteristics of life, including growth, reproduction, functional activity, and continual change preceding death.

Jean-Baptiste Lamarck

An early 19th-century French biologist who proposed the theory of inheritance of acquired characteristics as a mechanism for evolutionary change.

Evolution

The change in the heritable characteristics of biological populations over successive generations.