Bulk Sales Act
Definition - What does Bulk Sales Act mean?
Bulk sales acts are state laws that are in line with the U.S. federal Uniform Commercial Code (UCC), which states what measures a company must take before legally being allowed to close down. The rules are in place so that businesses do not close down while leaving suppliers and creditors out of pocket.
Justipedia explains Bulk Sales Act
Under a bulk sale act, it is a legal requirement for any business that is closing to take out an advertisement in the local newspaper at least 30 days prior to closing its doors, so that any suppliers or creditors of the business can be made aware of the closing in time for them to recoup any outstanding sums.
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