In the Matter of Kmart Corp

question 397

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 of evidence of fraud in dealings by Kmart executives with vendors
• E) none of the other choices

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Definitions:

Sexual Harassment

Unwanted or inappropriate sexual advances or remarks, often in the workplace, that create a hostile or intimidating environment.

Employment Situation

The current status of the job market, including levels of employment, unemployment, and the types of jobs available.

Canadian Human Rights Act

Legislation in Canada that prohibits discrimination on the basis of race, national or ethnic origin, color, religion, age, sex, sexual orientation, gender identity or expression, marital status, family status, genetic characteristics, disability, and conviction for an offense for which a pardon has been granted.

Mental Ability

The capacity of an individual to perform cognitive tasks, solve problems, and adapt to new situations.