Social Studies, 27.07.2021 16:40 yolo3745
A medical supply company made transfers of property to a state hospital after the company was insolvent. Subsequently, the company filed for bankruptcy in federal bankruptcy court. The bankruptcy trustee, acting pursuant to the federal Bankruptcy Act, sought to recover those transfers. The state hospital, refusing to comply with the trustee's request, asserted that, as a state entity, it was immune from suit by a private individual, despite a provision in the Bankruptcy Act that abrogated state immunity with respect to such transfers.
Can the trustee force the state to turn over the transferred property?
A. Yes, because Congress was acting pursuant to the Bankruptcy Clause of Article I, Section 8, Clause 4, in subjecting the state to the Bankruptcy Act.
B. Yes, because the action was brought in federal court.
C. No, because the Eleventh Amendment protects a state entity from suit by a private individual for damages in federal court.
D. No, because Congress lacks the power to abrogate state immunity.
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