TE
Answered
a. What is a bulk transfer?
b. What is the purpose of bulk sales law?
c. What is the effect of a failure to comply with the provisions in Article 6 in those states that still follow this Article?
On Jun 08, 2024
a. A bulk transfer is a merchant's transfer, not in the ordinary course of the transferor's business, of a major part of his materials, supplies, merchandise, or other inventory at once.
b. The central purpose of bulk sales law is to deter two common forms of commercial fraud. One occurs when the merchant, owing debts, sells out his stock in trade to a friend for a low price, pays his creditors less than he owes them, and hopes to come back into business in the future. A second form of commercial fraud is when the merchant, owing debts, sells out his stock in trade to anyone for any price, pockets the proceeds, and disappears without paying his creditors.
c. The effect of a failure to comply with the requirements of Article 6 of the Code is that the goods in the possession of the transferee continue to be subject to the claims of unpaid creditors of the transferor.
TE
Answered
Do you think the lessons from capital market history will hold for each year in the future? That is, as an example, if you buy small stocks will your investment always outperform Treasury bills?
On May 10, 2024
The student should realize that we are working with averages, so they should not expect riskier assets to always outperform less risky assets. The student should explain somewhere in their answer that this gets to the heart of what risk is. That is, the reason you expect to earn a higher return over the long haul is that your variability in price from year to year can be significant.