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bulk sales law
bulk sales law definition - business
bulk sales law
State law modeled on the Uniform Commercial Code that imposes certain conditions on the bulk transfer of a firm's assets such that creditors' claims are not devalued without their knowledge. For example, a financially troubled business might attempt to sell a substantial amount of its assets at a bargain price to another firm controlled by the same owner. The bulk sales law generally requires that the business owner inform the creditors and retain funds received from the sale for the creditors' benefit.
The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.
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