Asked by Michael Doyle on Mar 10, 2024

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The bulk sales portion (Article 6) of the Code  requires buyers in a bulk sale to provide notice to the seller's creditors and to maintain a list of the seller's creditors and a schedule of property obtained in a bulk sale for six months after the bulk sale takes place.

Bulk Sales

A transaction in which a business sells a significant portion of its inventory to a single buyer, often as a part of liquidation.

Article 6

A specific provision within a legal document or constitution; the context varies depending on the document (e.g., U.S. Constitution's Article 6 establishes federal laws as the supreme law of the land).

Creditors

Individuals or organizations to whom money is owed.

  • Explain the roles of security interests and consignment under the UCC.
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RK
Ryker KennepohlMar 10, 2024
Final Answer :
True
Explanation :
Article 6 of the Uniform Commercial Code (UCC) deals with bulk sales and outlines requirements for buyers in a bulk sale, including providing notice to the seller's creditors and maintaining a list of the seller's creditors and a schedule of property obtained in the bulk sale for a specified period, which is typically six months. This is designed to protect the interests of the seller's creditors.