Examlex
Rank the following claims of an organization filing Chapter 7 bankruptcy from 1 to 4 based on the following classifications.Each classification may be used more than once.
1.Secured Claims
2.Unsecured Priority Claims
3.Unsecured Nonpriority Claims
4.Stockholders' Claims
________ A.Claims for wages that are less than $10,000 per individual,earned within 90 days of filing petition for bankruptcy.
________ B.Legal fees incurred after petitioning the court for Chapter 7.
________ C.Claim by the accounting firm for the audit fee from the prior year-end audit completed two months prior to the bankruptcy filing.
________ D.Claims for employee benefit plan contributions that are less than $10,000 per individual and relating to services rendered within 180 days of bankruptcy filing.
________ E.Claims with a valid lien against assets of the entity.
________ F.Claim by employee for commissions earned in 90 days prior to filing bankruptcy petition,for the portion in excess of $10,000.
________ G.Administrative expenses of the estate,such as trustee fees.
________ H.Claim by a supplier for goods delivered on account.
________ I.Interest on unsecured claims.
________ J.Taxes owed to a government unit.
Merchant
A person or company engaged in the trade of goods, specifically in the context of consumer protection laws, someone dealing in goods of the kind involved in the transaction.
Reasonable Effort
The degree of diligence and attention expected under certain circumstances, typically what a reasonable person would do.
Nonconforming Goods
Merchandise that does not meet the specifications or requirements as outlined in a contract.
Not a Merchant
Refers to an individual or entity that does not engage in buying, selling, or trading of goods or services in a particular market, and thus may not be held to certain legal standards applicable to merchants.
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