The 'reasonable person in the person's circumstances' test in s588FG(2)(b)(ii) of the Corporations Act is an objective 'reasonable business person' test that does not require attribution of the particular creditor's acumen, perspicacity or resources. The information base for the test is limited to information actually known to the creditor at the time of the alleged preference payment; it does not extend to information that would have been obtained had reasonable inquiries been made. However, a failure to make inquiries may be relevant to the good faith requirement in s588FG(2)(a).
The full text is available to signed-in members, including the 23 later cases that cite this judgment.
3 of the 23 citing cases carry a classified treatment. How each court treated it is available to signed-in members.