bulk sales law

Definition of "bulk sales law"
  1. 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
How to use "bulk sales law" in a sentence
  1. Under the bulk sales law, the restaurant owner had to alert creditors before selling his equipment.
  2. One startup had to comply with the bulk sales law before liquidating its inventory.
  3. Due to the protective measures in the bulk sales law, the creditors were notified of the store's full clearance sale.

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