Chap. 304.—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.

1. Be it enacted by the general assembly of Virginia, as follows:
That it shall be unlawful for any merchant engaged in the buying and
selling of merchandise while he is indebted to any person to sel] his en-
tire 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 heretofore conducted the same, without first making a full and com-
plete inventory of the merchandise so proposed to be sold, in which inven-
tory the values shall be extended at the ruling wholesale price thereof ;
and without further making a full, true, and correct schedule of all per-
sons 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
inventory 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 purchaser
shall 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 postoffice at
the place where the seller has heretofore conducted business, or nearest
thereto, properly addressed to the respective creditors at the postoffice
address given in such schedule, with proper postage affixed; such notice
shall state the aggregate value of the merchandise proposed to be sold as
shown by such inventory, the consideration to be paid therefor and the
time and manner of making such payment. If said seller shall fail to
make such inventory of such merchandise, or if such inventory shall fail
to state the true value of said goods as above required, or if said seller
shal] fail to make such true schedule of creditors as hereinafter provided,
and the purchaser shall have knowledge 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 provided, or if the seller and purchaser
shall fail to give each of said creditors 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 consideration to be paid therefor, and the time and manner of making
the same, then, and in either of such events such sale shall prima facie
be presumed to be fradulent and void as against the creditors of such
seller, and the merchandise 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 merchan-
dise 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, nothing
therein contained, nor any act thereunder, shall change or affect the pres-
ent rules of evidence or the present presumption of law.

4. This act shall be in force from its passage.