Preferences. Fred Currey purchased cattle from Itano Farms, Inc As payment for the cattle, Currey gave Itano Farms worthless checks in the amount of 50,250. Currey was later convicted of passing bad checks, and the state criminal court ordered him to pay Itano Farms restitution in the amount of 50,250. About four months after this court order, Currey and his wife filed for Chapter 7 bankruptcy protection. During the ninety days prior to the filing of the petition, Currey had made three restitution payments to Itano, totaling 14,821. The Curreys sought to recover these payments as preferences. What should the court decide? Explain.
Question 2
Emile owns Emile's Used Car Emporium. Several people work for him at the Emporium. When Emile is gone, he leaves one of his best salespersons, Meg, in charge. Over the years, Emile has given Meg the authority to contract with vendors, negotiate sales, and conclude car sales contracts in his name. One August, Emile takes a long vacation, leaving Meg in charge. While he is gone a hurricane hits Florida where the Emporium is located, causing severe damage. Because Emile is floating down the Amazon, Meg cannot reach him for instructions. She decides that rather than leave the place in shambles, she will hire people to repair the Emporium. Meg hires a carpenter to rebuild a wall that was blown down by the storm. Phil, the carpenter, is busy at work on his scaffold when Meg's Scottish terrier Adam, who she keeps with her at work, plows into the scaffolding while chasing a cat. Phil is knocked off the scaffold and falls ten feet to the ground, suffering a broken leg. As Meg's principal, Emile is required to:
a. cooperate with her
b. pay her for her services
c. indemnify her for any legal liabilities she incurs during the course of her work d. reimburse her for reasonable expenses
e. do all of the other choices