bulk sales law
- A regulation preventing business owners from hastily selling all or most business assets to avoid paying creditors; requires written and sometimes public notice to creditors before such a sale. Many states have discarded it due to the Fraudulent Transfer Act's provisions
- Under the bulk sales law, the restaurant owner had to alert creditors before selling his equipment.
- One startup had to comply with the bulk sales law before liquidating its inventory.
- Due to the protective measures in the bulk sales law, the creditors were notified of the store's full clearance sale.