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LSDefine

Simple English definitions for legal terms

bulk sales acts

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A quick definition of bulk sales acts:

Bulk sales acts are laws that require a business owner who is selling their inventory to notify their creditors and set up an account where the funds from the sale will be held for a short period of time. This is to make sure that the business owner cannot sell their inventory and disappear without paying their debts.

A more thorough explanation:

Definition: Bulk sales acts are state laws that require a seller of a business, including their inventory, to take certain steps to protect the interests of their creditors. These steps include publishing notice of the sale, giving written notice to all creditors, and setting up an escrow account for the funds from the sale. The purpose of these laws is to prevent a seller from selling their inventory and disappearing without paying their creditors.

For example, let's say that John owns a small grocery store and wants to sell it to Mary. Before the sale can take place, John must follow the bulk sales acts in his state. He must publish a notice of the sale in a local newspaper, give written notice to all of his creditors, and set up an escrow account for the funds from the sale. This gives John's creditors a chance to make a claim on the funds before he can use them to pay off other debts or disappear.

Another example would be if Sarah owns a clothing store and wants to sell it to her sister. Even though they are family, Sarah still needs to follow the bulk sales acts in her state. She must publish a notice of the sale, give written notice to all of her creditors, and set up an escrow account for the funds from the sale. This ensures that Sarah's creditors have a chance to make a claim on the funds before she can use them to pay off other debts or disappear.

These examples illustrate how bulk sales acts work to protect the interests of a seller's creditors. By requiring the seller to take certain steps before selling their business, these laws ensure that creditors have a chance to make a claim on the funds from the sale before the seller can use them to pay off other debts or disappear.

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medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
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