bulk sales acts

Definition of "bulk sales acts"
  1. Laws, often encompassed in the Uniform Commercial Code, that require a business seller to publish notice of the sale, inform all creditors, and establish an escrow of the sales proceeds for a short time, during which creditors may file a claim. These rules are designed to prevent a business owner from secretly selling inventory and disappearing without paying existing creditors
How to use "bulk sales acts" in a sentence
  1. Under the bulk sales acts, the owner had to notify all creditors before selling their restaurant's inventory.
  2. The bulk sales acts required the retailer to set up an escrow of the sales proceeds, allowing creditors to claim within a certain period.
  3. Compliance with the bulk sales acts ensured the business owner couldn't run away without paying his debts after selling his stock.

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