Special Report on
Unfair Preference Claims
Unfair Preference Claims - Trends
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The employment policy of the United States over the course of the twentieth century and into the twenty-first evolved to emphasize greater inclusion of all people seeking employment. The American workforce has grown dramatically and has diversified to include more women and minorities. These changes began with the massive entry of women and African Americans into the workforce during World War II. The number of minorities in the labor force will continue to increase in the twenty-first century primarily because of immigration and also because of federal policies that encourage minority hiring and promotions. The number of older ...
The crux of both cases was whether the Commissioner had an available defence to an unfair preference claim under section 588FG(2) of the Act. (The Commissioner has a defence if, amongst other matters, he can prove he had no reasonable grounds to suspect that the paying company was insolvent and that a reasonable person in the Commissioner's circumstances would likewise have had no reasonable grounds for so suspecting.) In Cussen, the liquidator unsucessfully argued that a reasonable person would have suspected the paying company was insolvent. He effectively conceeded that the ... Read More
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