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:

Demographic Differences

Variations among individuals and groups based on factors like age, race, gender, income level, and education.

Discrimination

The unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.

Invisible Barrier

An unseen obstacle that prevents individuals or groups from advancing beyond a certain point in professional or social contexts, often due to implicit biases or systemic structures.

Career Advancement

The process of moving up in one's career, often characterized by increased responsibility, higher pay, and more significant challenges.