Does the bankruptcy trustee have a right to recover payment


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ETHICS: On November 5, Th e Fred Hawes Organization, Inc., a small subcontractor, opened an account with Basic Distribution Corp., a supplier of construction materials. Hawes promised to pay its bills within 30 days of purchase. Although Hawes purchased a substantial quantity of goods on credit from Basic, it made few payments on the accounts until the following March when it paid Basic over $21,000. On May 14, Hawes fi led a voluntary petition under Chapter.

Does the bankruptcy trustee have a right to recover this payment? Is it fair to Hawes's other creditors if Basic is allowed to keep the $21,000 payment?

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Business Law and Ethics: Does the bankruptcy trustee have a right to recover payment
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