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Business Lawyer California Bulk Sales Law – Part One
Business Lawyer California Bulk Sales Law – Part One (A Processed Video Transcription)
Good morning. My name is Andrew Gale, business lawyer California at Gale and Vallance, and I was working on a project last week with a client who is interested in buying the assets of another business that he’d come across. He thought it was a fantastic deal for him. He was going to be able to buy the entire inventory and some of the fixtures of this business and get it at a great price.
Business Lawyer California
So what he wanted to know was there something that he should be aware of or something that he should do to protect himself because he had a little bit of concern that it seemed like it might be too good to be true kind of a deal or he might be worried a little bit about the creditors of the seller’s business perhaps chasing after him for taking all of the inventory. So the answer is yes, there is something that he could do. In the state of California, there is a law called the California Bulk Sales Law.
Bulk Sales Law – Does it Apply to You?
Basically what it does is protect creditors in exactly that situation. If the seller has some inventory and it’s not in the ordinary course of their business and they’re going to sell more than 50 percent of the inventory and they will frequently look at their fair market value what happens is the Bulk Sales Law will come into place. One other thing is that the value of the inventory is more than $10,000 and less than $5 million which was the situation where my client was in. Since the law applied to him, he needed to know what he needed to do and what the ramifications were if he didn’t comply with the bulk sales law.
Watch part two of the video here http://www.youtube.com/watch?v=3bfn_MtiKKs or contact Gale and Vallance Incorporation Attorney and Business Lawyer California for inquiries.
Andrew Gale – Incorporation Attorney
Attorney at Law Offices 1820 West Orangewood Avenue, Suite 104a, Orange, CA 92868 Office: +1 (714) 634-4838. I provide legal advice, counseling and related services to entrepreneurs including the formation and management of their corporations and estate plans.
My Law Office is based in Orange County California and I have practiced law for 30 years. I have given advice to more than 1000 small business owners on the best ways to set up a company, what types of business entities (corporations, limited liability companies, partnerships) are best suited for them and their small business, how to legally run the business to protect their assets and how to successfully transfer the business to family or key employees through the proper use of estate planning and trusts.
