Chap. 554.—An ACT to prevent merchants engaged in buying and selling mer-
chandise, while indebted, from selling their entire stock of merchandise in bulk
or selling the major portion thereof otherwise than in the ordinary course of
trade, and to repeal an act of the general assembly entitled “an act to prevent
the fraudulent sale, in bulk, of merchandise, or any portion thereof, otherwise
than in the ordinary course of trade,” approved May 20, 1903.

Approved January 2, 1904.

1. Be it enacted by the general assembly of Virginia, That it shal] be
unlawful for any merchant engaged in the buying and selling of mer-
chandise while he is indebted to any person, to sell his entire stock of
merchandise, in bulk, or to sell the major portion thereof otherwise than
in the ordinary course of trade, in the regular and usual prosecution of
the seller’s business, and with the intention of ceasing to conduct said
business, in the same manner and at the same place as he has hereto-
fore conducted the same, without first making a full and complete inven-
tory of the merchandise so proposed to be sold, in which inventory the
values shall be extended at the ruling wholesale price thereof; and with-
out further making a full, true, and correct schedule of all persons to
whom he is indebted, stating therein the postoffice address of each of
said creditors, and the amount owing to each of them; to which inven-
tory and schedule there shall be attached the oath of the seller that the
same is true and correct; or if the seller shall assert that he is not in-
debted to any person, he shall make affidavit to that effect and deliver the
same to the purchaser, with the inventory, as hereinafter provided. The
seller shall deliver said inventory and schedule to the proposed pur-
chaser, and shall retain exact copies thereof in his own possession ; the
seller and the purchaser shall each preserve such inventory, schedule, and
affidavit for the period of six months after such sale and purchase, and
the same shall be open to the inspection of the creditors of the seller.
Ten days before such sale shall be consummated, and before the pur-
chaser take possession of the merchandise so proposed to be sold, the seller
and proposed purchaser shall join in giving written or printed notice of
the proposed sale and purchase of such merchandise to each of the credi-
tors named in such schedule; such notice may be delivered in person to
such creditors, or transmitted to them by registered letter through the
United States mails by being deposited in the United States pox-
cffice at the place where the seller has heretofore conducted busi-
nese, or nearest thereto, properly addressed to the respective credi-
tors at the postoffice address given in such schedule, with proper
postage affixed; such notice shall state the aggregate value of the mer-
chandise proposed to be sold as shown by such inventory, the considera-
tion to be paid therefor, and the time and manner of making such pay-
ment. If said seller shall fail to make such inventory of such merchan-
dise, or if such inventory shall fail to state the true value of said good:
as above required, or if said seller shall fail to make such true schedule
of creditors as hereinafter provided, and the purchaser shall have knowl-
edge of that fact, or in event the seller shall assert that there are no debts
against him, if the purchaser shall fail to require the affidavit above pro
vided, or if the seller and purchaser shall fail to give each of said credi-
tors named in said schedule the notice above required in the manner
above provided, or if such notice shall not correctly state the amount of
such merchandise proposed to be sold, and the consideratjon to be paid
therefor, and the time and manmer of making the same, then and in
either of such events such sale shall prima facie be presumed to be fraud-
ulent and void as against the creditors of such seller, and the merchan-
dise in the hands of the purchaser, or any part thereof, if it shall be
found in his hands, shall be liable to such creditors; and in event the
same, or any part thereof, shall be withdrawn by said purchaser, then the
purchaser himself personally shall also be liable to said creditors of such
seller to the extent of the value of the merchandise so received by him
and thus withdrawn.

2. That whenever a notice, as provided in section number one of this
act, is sent by registered mail the creditor or person to whom the notice
is mailed shall be presumed conclusively to have received the notice, and
the time of the notice shall be dated from the time of the mailing and
registration, or actual service of said notice.

3. That except as expressly provided in the preceding sections, noth-
ing therein contained, nor any act thereunder, shall change or affect the
present rules of evidence or the present presumption of law.

4. Be it further enacted by the general assembly, That an act of the
general assembly entitled “an act to prevent the fraudulent sale in bulk
of merchandise, or any portion thereof, otherwise than in the ordinary
course of trade,” approved May twentieth, nineteen hundred and three,
be, and the same is hereby, repealed.

5. This act shall be in force from and after its passage.