Which of the Following Is True Regarding the Result in the Case

question 28

Multiple Choice

Which of the following is true regarding the result in the case in the text Thrifty Rent-A-Car System v.South Florida Transport,in which the plaintiffs sued the defendant,the operator of a Thrifty franchise,for amounts owed,but the defendant resisted payment on the basis that several hurricanes rendered the business operations commercially impractical?

• A) The court ruled that the bad weather completely excused the defendant's performance.
• B) The court ruled that the parties had to jointly bear the burden of bad weather and that 50% of what the defendant owed would be excused.
• C) The court ruled that the defendant was legally entitled to additional time in which to pay, but that the defendant would be required to pay all amounts owed.
• D) The plaintiffs were entitled to recover because the defendant failed to anticipatorily repudiate the contract.
• E) The plaintiffs were entitled to recover for reasons including that the nonoccurrence of hurricanes was not a basic assumption of the agreement.

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Definitions:

Petition

A formal written request, often signed by several individuals, appealing to authority with respect to a particular cause.

Cram-down Provision

A legal mechanism in bankruptcy proceedings allowing a court to approve a reorganization plan over the objections of some creditors.

Chapter 11

A provision of the United States Bankruptcy Code that allows businesses to reorganize and try to stay afloat while temporarily holding creditors at bay.

Bankruptcy Action

A legal proceeding involving a person or business that is unable to repay outstanding debts, leading to the legal process of liquidating assets to pay creditors.