Answer: The lamps were not identified to the contract
Explanation: Insolvency occurs when a financially indebted corporation or organization can no longer meet up with his financial dues to his creditors. Financial meltdown, manager disarray and other issues may result in organizations not being able to meet up with loan or debt paymenta which could ultimately result in Insolvency.
In the scenario above, Bell corps will not be able to recover the lamps because, prior to the Insolvency, Glow manufacturing did not identify Bells contract to their inventory. Therfore even though Bells made a prepayment, Glows failure to identify separate preexisting contracts in its inventory will lead to Bells inability to recover the lamps.