AFM231 Chapter Notes - Chapter 27: Chapter 27, Security Interest, Secured Creditor
11 Jul 2018
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Document Summary
Businesses fail for many different reasons, even when the economy is strong. A body of law has developed, called bankruptcy and insolvency law, to deal with failed businesses to ensure that all stakeholders are dealt with as fairly as possible. Bankruptcy and insolvency law is a highly technical legal field and here you only will be exposed to the broad principles. In this chapter you will need to understand: bankruptcy to ensure a disciplined distribution of assets to creditors according to their entitlement while not being unduly harsh to debtors, federal law. When you purchase software, you are buying a license to use the software not buy it outright. Many software licenses especially in the commercial setting contain a term that the license to use the software terminates upon bankruptcy. The use of informal arrangements with creditors to avoid entering into bankruptcy.
