In Ransom V

question 61

Multiple Choice

In Ransom v.FIA Card Services,Ransom filed for Chapter 13 bankruptcy protection and listed among his living expenses the standard amount allowed in the Bankruptcy Code for car ownership costs.Ransom owned his car outright and had no car payment.FIA challenged the car deduction.The court held that Ransom could

• A) take the deduction because he met the means test.
• B) take the deduction because the statutory language was ambiguous.
• C) not take the deduction because it was limited to debtors who were required to make loan or lease payments on a car.
• D) take the deduction because denying it would send a message to debtors to take out car loans rather than pay them off.

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Definitions:

Ultimatum Game

A game in economic experiments where one player proposes how to divide a sum of money with another player who can accept or reject the proposition.

Dictator Game

A behavioral experiment where one participant, the "dictator," determines how to split an amount of money between themselves and another participant.

Neoclassical Economic

A perspective in economics that examines how the allocation of resources, production, and income dispersal in markets are influenced by supply and demand mechanisms.

Self-Interest

The motivation of individuals to pursue their own objectives and benefits.