A bulk sale is a sale of goods by a business which engages in selling items out of inventory, often in liquidating or selling a business, and is governed by Article 6 of the Uniform Commercial Code (UCC) which deals with bulk sales. Article 6 has been adopted at least in part in all states. If the parties do not comply with the notification process for a bulk sale, creditors of the seller may obtain a declaration that the sale was invalid against the creditors and the creditors may take possession of the goods or obtain judgment for any proceeds the buyer received from a subsequent sale.
UCC Section 6-104 specifies the duties of the bulk sales buyer, including determining the identity of the seller, and preparation of a list of claimants and a schedule of distribution. These duties are imposed on the buyer in order to give claimants the opportunity to learn of the bulk sale before the seller has been paid and disappeared with the money.
The North Carolina Provision in Bulk Sales Agreement Regarding Information to be Supplied by Seller is a crucial component of business transactions involving the sale of assets or property in bulk. This provision outlines the specific information that the seller is required to disclose to the buyer before the sale is finalized. By providing this information, the seller ensures transparency and protects the buyer from any potential hidden liabilities or unknown factors. Keywords: North Carolina, Provision, Bulk Sales Agreement, Information, Seller. There are two main types of North Carolina Provision in Bulk Sales Agreement Regarding Information to be Supplied by Seller: 1. General Information Provision: Under this provision, the seller is obliged to provide a detailed account of the business operations involved in the sale, including financial statements, tax returns, profit and loss statements, balance sheets, and records of inventory and accounts payable/receivable. Additionally, the seller must disclose any pending litigation, claims, or disputes, as well as any existing contracts or agreements related to the business being sold. This provision ensures that the buyer has a complete understanding of the financial health, assets, and potential risks associated with the purchase. 2. Employee Information Provision: In North Carolina, a provision regarding employee information is typically included in the bulk sales agreement. This provision requires the seller to disclose details about the employees who will be affected by the sale. The seller must provide a list of all current employees, their job titles, dates of employment, salary or wage information, benefits, and any employment agreements or contracts. This provision allows the buyer to evaluate the existing workforce, its costs, potential labor disputes, and other related considerations. It is important to note that these provisions may vary based on the specific circumstances of each bulk sale transaction in North Carolina. However, the primary goal is to ensure full disclosure of pertinent information to protect both the buyer and the seller's interests, promoting a fair and transparent business transaction.
