Which of the Following Fits Within One of the Exceptions

question 1

Multiple Choice

Which of the following fits within one of the exceptions to the Bankruptcy Act's preference provision?

• A) A perfected Article 9 security interest.
• B) A transfer to an insider of the debtor.
• C) A transfer made in the ordinary course of the debtor's business.
• D) A consumer's transfer of less than $2.000 to a creditor who has sold her consumer goods.

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Definitions:

UPA

Uniform Partnership Act, a standardized set of laws to govern the formation, operation, and dissolution of partnership businesses in the United States.

Liability

A legal responsibility or obligation, often involving the requirement to compensate for loss or damage.

Withdrawal

Withdrawal involves the act of removing oneself or ceasing to participate in an activity, agreement, or other commitments.

Partnership

A sanctioned form of business where partners collectively manage the enterprise and split the financial gains.