Chapter 1809. To prevent the fraudulent sale of merchandise in the District of Columbia
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CHAP. 1809.— An Act To prevent the fraudulent sale of merchandise in the District of Columbia. April 28, 1904.[[H. R. 5067](/us/bill/33/hr/5067).][[Public, No. 241](/us/pl/33/241).] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled*, That it shall be theDistrict of Columbia.Sale of merchandise in bulk. duty of every person who shall bargain for or purchase any stock of goods, wares, or merchandise in bulk, for cash or credit, within the District of Columbia, to demand and receive from the vendor thereof, and if the vendor be a corporation then from a managing officer or agent thereof, at least five days before tile consummation of such bar-gain or purchase and at least five days before paying or delivering to the vendor any part of the purchase price or consideration therefor, or any promissory note or other evidence of indebtedness therefor, a written statement, under oath, containing the names and addresses ofAffidavit required from vendor as to indebtedness prior to. all of the creditors of said vendor, together with the amount of indebtedness due or owing, or to heroine due, or owing, by said vendor to each of such creditors, and if there be no such creditors, a written statement, under oath, to that effect; and it shall be the duty of such vendor to furnish such, statement at least five days Wore any sale or transfer by him of any stock of goods, wares, or merchandise in bulk.
Sec. 2. That after having received from the vendor the writtenNotice of purchase to creditors. statement, under oath, mentioned in section one, the vendor shall, at least five days before the consummation of such bargain or purchase, and at least five days before paying or delivering to the vendor any part of the purchase price or consideration therefor, or any promissory note or other evidence of indebtedness for the same, in good faith notify or cause to be notified, personally or by wire or by registered letter, each of the creditors of the vendor named in said statement of the proposed purchase by him of such stock of goods, wares, or merchandise; and whenever any person shall purchase anyIn absence notice sale to be deemed fraudulent and void. stock of goods, wares, or merchandise in bulk, or shall pay the purchase price or any part thereof, or execute or deliver to the vendor thereof or to his order, or to any person for his use, any promissory note or other evidence of indebtedness for said stock, or any part thereof, without having first demanded and received from his vendor the statement, under oath, as provided in section one, and without also having notified or caused to be notified all of the creditors of the vendor named in such statement, as in this section prescribed, such purchase, sale, or transfer shall, as to any and all creditors of the vendor, be conclusively presumed fraudulent and void.
Sec. 3. That any sale or transfer of a stock of goods, wares, orSale in bulk, etc., defined. merchandise out of the usual or ordinary course of the business or trade of the vendor, or whenever thereby substantially the entire-business or trade theretofore conducted by the vendor shall be sold or conveyed, or attempted to he sold or conveyed, to one or more per-sons, shall be deemed a sale or transfer in bulk, in contemplation of this Act. Sec. 4. That nothing contained in this Act shall apply to sales madeSales by executors, etc. by executors, administrators, receivers, or any public officer conducts ing a sale in his official capacity. 556 Sec. 5.
Rules of evidence, etc., not affected.That except as expressly provided in this Act, nothing therein contained, nor any Act thereunder shall change or affect the present rules of evidence or the present presumptions of law. Sec. 6. Repeal.That all Acts and parts of Acts inconsistent herewith be, and the same is hereby, repealed. Approved, April 28, 1904.