On March 22, 2017, Ontario's Bulk Sales Act (BSA)
was repealed by way of Schedule 3 of Ontario's Burden
Reduction Act. This repeal marks the end of bulk sales
legislation in Canada as Ontario was the last Canadian jurisdiction
to have such legislation.
Enacted in 1917, the BSA was intended to protect creditors from
a sale of assets by a business without the creditors first getting
what they are owed. Before its repeal, the parties to an asset
transaction would satisfy the bulk sales legislation requirements
in one of three ways: (a) by complying with the procedures of the
BSA, (b) by obtaining a court order or (c) by waiving compliance
with the BSA. If the bulk sales legislation was not satisfied, the
consequences ranged from the transaction being set aside to the
purchaser being subject to additional costs.
