Who does the Bulk Transfer Act protect
Protects the interests of the buyer as well as those of the sellers creditors in the sale of a business.
The Bulk Transfer Act (BTA) is a law that provides protection to creditors of sellers who engage in bulk sales which are defined as sales that are not made in the ordinary course of business. The BTA protects the creditors from potential loss caused by such sales.
Specifically, the BTA is designed to protect the interests of creditors who are not aware of the bulk sales by requiring that the sellers of goods give notice of their intention to conduct the sale. This gives the creditors time to claim any amount owed to them by the seller before the goods are transferred to the buyer.
In general, the BTA protects the interests of unsecured creditors. It requires the seller to provide notice to creditors of a proposed bulk sale. This notice gives creditors an opportunity to contest the sale by submitting claims or challenging the seller’s authority to sell the goods.
In addition to protecting creditors, the BTA also provides some protection to buyers. If the seller provides notice to the buyer that they are complying with the BTA requirements, then the buyer is protected from any claims that may arise after the goods are transferred to them.