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Business Lawyers Orange County California Bulk Sales Law Part Two
Business Lawyers Orange County California Bulk Sales Law Part Two – A Processed Video Transcription
What is Bulk Sales Law?
Buying a Business – Bulk Sales Law
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 protection 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?
What the Buyer Needs 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.
Gale and Vallance Business Attorneys Orange County California
Watch part one of the video:
Business Lawyer California Bulk Sales Law – Part One
Watch part three of the video:
Business Attorneys Orange County California Bulk Sales Law Part Three
Gale and Vallance Business Lawyers Orange County California helps people start-up small businesses and professionally manage corporations. Visit our website now at Incorporation Attorney.
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.
