Caren sells her one-year-old sports car to her mother for $100. The next week, Caren files for bankruptcy under Chapter 7. Regarding the sale of the car, the trustee may:
　　a.Cancel it as a voidable preference.
　　b.Not cancel it, but can sue Karen's mother for return of the $100.
　　c.Not cancel it because it is a sale, not a gift.
　　d.Cancel it as a fraudulent transfer.
　　Answer：D
　　Choice "D" is correct. Transfers made within two years of the filing date with an intent to hinder, delay, or defraud creditors or any transfer where the debtor received less than equivalent value while the debtor was insolvent are fraudulent transfers and may be set aside by the trustee. A one year old car typically is worth far more than $100, and because Karen filed for bankruptcy the next week, she likely was insolvent when she made the transfer.
　　Choice "a" is incorrect. A voidable preference is a transfer made to benefit one creditor over other creditors on account of an antecedent debt. Karen's mother was not a creditor (i.e., no antecedent debt was involved).
　　Choice "c" is incorrect. Although the transfer was a sale, the trustee can set a sale aside if the debtor did not receive equivalent value from the sale.
　　Choice "b" is incorrect. This choice makes no sense, as Karen's mother presumably paid Karen $100 and did receive money to "return". In any case, the trustee is empowered to set aside the transfer and obtain a court order to gain the property back from Karen's mother.