A merchant who in the ordinary course of business deals in quantities of grain exceeding 50 metric tonnes would not find these transactions falling within the jurisdiction of the Bulk Sales Act.

Question

Quizplus · Accepted Answer

The Bulk Sales Act typically applies to the sale of more than half of a merchant's inventory and is designed to protect creditors by preventing business owners from making large sales of inventory outside the ordinary course of business. A merchant dealing in large quantities of grain as part of their ordinary business operations would not be making an extraordinary bulk sale, but rather conducting regular business transactions, thus not falling under the jurisdiction of the Bulk Sales Act.

A Merchant Who in the Ordinary Course of Business Deals