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Which of the Following Was the Result in In Re

Question 52

Multiple Choice

Which of the following was the result in In re Hydro-Action Inc.,the bankruptcy case in the text involving whether a claimant was entitled to a lien upon a conveyor belt system that it installed?


A) The court found that a lien was foreclosed because the claimant did not qualify as a mechanic, artisan, or materialman.
B) The court found that a lien was foreclosed because the transaction did not involve the manufacturing or repairing of an "article" or "building" as required under applicable law.
C) The court found that a lien was foreclosed because the bankruptcy trustee had priority.
D) The court found that a lien was available because the claimant qualified as a materialman engaged in manufacturing an article for the debtor thereby satisfying applicable law.
E) The court found that a lien was available because under principles of equity, it would be unjust to deny the claimant a recovery.

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