Fact Pattern 30-1A

Fact Pattern 30-1A
Eve sells her motorcycle to her brother Floyd for $1,000. Twelve days later, Eve files for bankruptcy under Chapter 7.
-Refer to Fact Pattern 30-1A. Regarding the sale of the cycle, the trustee may

A) cancel it as a fraudulent transfer.
B) cancel it as a voidable preference.
C) not cancel it because it is a sale, not a gift.
D) not cancel it, but can sue Floyd's estate for the return of the $1,000.

Correct Answer:

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