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bulk sale
(redirected from Bulk sales act)

   Also found in: Legal, Wikipedia 0.01 sec.
bulk sale

Transfer of all or substantially all the assets of a business. Some states have bulk sales laws requiring notice to creditors before any such sales,so that a debtor may not liquidate all assets, pocket the money,and leave creditors holding the bag.



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A purchaser of stock in a bulk sale who fails to comply with the Ontario Bulk Sales Act, will only be required to account for the proceeds of the sale where the proceeds were not fully distributed to creditors and the creditor seeking relief has received less than it would have had there been full compliance with the Act.
 
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