Kastner Lumber Ltd. supplies lumber to Solti Construction Corp Solti gets into financial difficulty and Kastner pressures it to return the lumber sent but not paid for. One month after returning the lumber, Solti goes bankrupt
Solti's trustee in bankruptcy wants to recover the value of the returned lumber from Kastner. Which of the following is TRUE?
A) Since it was Kastner's lumber, it had the right to its return.
B) The return was a fraudulent preference and the trustee will be successful in its claim.
C) The lumber was returned before the bankruptcy and therefore the trustee has no claim to it.
D) The lumber was owned by Solti, but since it had not paid for it, Kastner had the right to its return.
E) Kastner and Solti were not dealing at arm's length, so the trustee has the right to have the return of the lumber nullified.
B
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