Fact Pattern 25-1

Multiple Choice

Fact Pattern 25-1
Damian owns a pick-up truck and a motorcycle. He sells the motorcycle to Eden for $10,000. Eden pays for the cycle with a check, knowing that she had insufficient funds in her account to cover the amount. A week later, Damian files a petition in bankruptcy for relief through a liquidation.
-Refer to Fact Pattern 25-1. Regarding the sale of the cycle, the bankruptcy trustee can

A) cancel it as a fraudulent transfer.
B) cancel it as a voidable preference.
C) not cancel it or sue to recover the price because it occurred before Damian filed his petition in bankruptcy.
D) not cancel it, but can sue Eden to recover the price.