A major purpose of the bulk sales provisions of the Code is to protect the seller's creditors.

Question

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The bulk sales provisions of the Code require the buyer to notify the seller's creditors of the impending sale. This allows the creditors to claim any outstanding debts owed to them by the seller before the seller receives the proceeds of the sale. As a result, the bulk sales provisions protect the seller's creditors by preventing the seller from disposing of his assets without paying off his outstanding debts.

A Major Purpose of the Bulk Sales Provisions of the Code