Business Lawyers Orange County California Bulk Sales Law Part Two

So what is the Bulk Sales Law? Basically Bulk Sales Law says that if you are a buyer and you're going to buy more than 50 percent of someone's inventory or fixtures and it's not what they do or that is not what the seller does in the ordinary course of their business and if the value of the inventory and fixtures you're going to purchase are more than $10,000 and less than $5 million. If you do not want to have any problem with the seller's creditors in the future, then there is an affirmative obligation placed upon you that you've got to go out and you've got to attempt to notify those creditors to say, "I'm buying all of this inventory. I'm buying these fixtures and I want to let you know that I'm doing it so that if you have a claim against the seller you can let me know before I go ahead and give my money over to the seller. Once the buyer has complied with the bulk sales law, the buyer has protections from the law so long as he followed all of the procedures, so long as he did the proper notification. Then if a creditor has a complaint, his complaint is not with the buyer but it's with the seller. So what does the buyer have to do? First, make sure that he falls within the parameters of the law as we discussed earlier: more than $10,000 and less than $5 million, buying at least 50 percent of the inventory and fixtures, and the seller is not in the business of selling that quantity of stuff.