The Bulk Sales Act, RSA 1980, c B-13, was created to protect the creditors of retailers who sell their stock and disappear before paying off their debts. The Act (as it was at the writing of this report) required that anyone buying an unusually large amount of a retailer’s stock and trade fixtures must first obtain a list of the retailer’s debts, and must pay the retailer’s creditors directly (or obtain their consent), before the purchase can be completed.

This report details the inefficiencies of this scheme, including the large costs it incurs on retailers and purchasers in bulk sales situations, and the Act’s lack of preventative power. After considering the available options, the report suggests that the best approach would be to repeal the Act, as no reasonable improvement could prevent the Act from doing more harm than good.