Ontario's Bulk Sales Act poses a challenge to
investors who want to acquire an Ontario business investor who is
considering the acquisition of a business based in Ontario, Canada,
and the attorneys who are advising such an investor, need to be
aware of the application of Ontario's Bulk Sales Act,
R.S.O. 1990, c. B.14 (BSA).
Bulk sales legislation, including the BSA, has its roots in
English law and historically was common in many jurisdictions in
North America. Today, Ontario is one of the few remaining
jurisdictions in North America, and the only jurisdiction in
Canada, which still has bulk sales legislation in force. Several
jurisdictions in the US, including California, Georgia, Maryland,
Virginia and the District of Columbia, continue to have bulk sales
legislation in force, and additional jurisdictions in the US, while
no longer having in force bulk sales legislation of general
application, have bulk sale notification provisions embedded in
their taxing statutes.
