The bulk sales acts in place in some provinces are designed to do which of the following?
A) To enable commercial debtors to sell their products at a reduced price in order to pay back their creditors in a more timely way
B) To prevent merchants from selling all or almost all of their business's assets before a creditor can take action to stop them
C) To give priority to creditors who are owed money in respect of inventory sold to the debtor within the last 30 days
D) To provide relief to commercial purchasers when a ship's cargo is destroyed
E) To set minimum statutory standards for goods sold by description in large, unpackaged quantities

Question

Quizplus · Accepted Answer

The bulk sales acts in place in some provinces are designed to prevent merchants from selling all or almost all of their business's assets before a creditor can take action to stop them. This is done to avoid the situation where creditors are left without any means of recovering their debts if a debtor sells everything they own and disappears without paying. The acts usually require merchants to give notice of their intention to sell, and provide for a waiting period during which creditors can register their claims and take steps to prevent the sale if necessary.

The Bulk Sales Acts in Place in Some Provinces Are