7/25/2019 Sales Laws

1/5

December 1, 1932

ACT NO. 3952

AN ACT TO REGULATE THE SALE, TRANSFER, MORTGAGE

OR ASSIGNMENT OF GOODS, WARES, MERCHANDISE,

PROVISIONS OR MATERIALS, IN BUL, AND PRESCRIBING

PENALTIES FOR THE VIOLATION OF THE PROVISIONS

THEREOF

SECTION 1.This Act shall be known as "The Bulk Sales aw."

SECTION 2.An! sale t#ans$e# %o#t&a&e o# assi&n%ent o$ a stock o$&oo's wa#es %e#chan'ise (#o)isions o# %ate#ials othe#wise than inthe o#'ina#! cou#se o$ t#a'e an' the #e&ula# (#osecution o$ thebusiness o$ the )en'o# %o#t&a&o# t#ans$e#o# o# assi&no# o# an! salet#ans$e# %o#t&a&e o# assi&n%ent o$ all o# substantiall! all o$ thebusiness o# t#a'e the#eto$o#e con'ucte' b! the )en'o# %o#t&a&o#t#ans$e#o# o# assi&no# o# o$ all o# substantiall! all o$ the *+tu#es an'e,ui(%ent use' in an' about the business o$ the )en'o# %o#t&a&o#t#ans$e#o# o# assi&no# shall be 'ee%e' to be a sale an' t#ans$e# inbulk in conte%(lation o$ this Act- #o)i'e' howe)e# That i$ such)en'o# %o#t&a&o# t#ans$e#o# o# assi&no# (#o'uces an' 'eli)e#s aw#itten wai)e# o$ the (#o)isions o$ this Act $#o% his c#e'ito#s as shownb! )e#i*e' state%ents then an' in that case the (#o)isions o$ thissection shall not a((l!. CAScI/

SECTION 3.It shall be the 'ut! o$ e)e#! (e#son who shall sell%o#t&a&e t#ans$e# o# assi&n an! stock o$ &oo's wa#es %e#chan'ise(#o)isions o# %ate#ials in bulk $o# cash o# on c#e'it be$o#e #ecei)in&$#o% the )en'ee %o#t&a&ee o# his o# its a&ent o# #e(#esentati)e an!(a#t o$ the (u#chase (#ice the#eo$ o# an! (#o%isso#! note%e%o#an'u% o# othe# e)i'ence the#e$o# to 'eli)e# to such )en'ee%o#t&a&ee o# a&ent o# i$ the )en'ee %o#t&a&ee o# a&ent be aco#(o#ation then to the (#esi'ent )ice0(#esi'ent t#easu#e# sec#eta#!

o# %ana&e# o$ sai' co#(o#ation o# i$ such )en'ee o# %o#t&a&ee be a(a#tne#shi( *#% then to a %e%be# the#eo$ a w#itten state%ent swo#nto substantiall! as he#eina$te# (#o)i'e' o$ the na%es an' a''#esses o$all c#e'ito#s to who% sai' )en'o# o# %o#t&a&o# %a! be in'ebte'to&ethe# with the a%ount o$ in'ebte'ness 'ue o# owin& o# to beco%e'ue o# owin& b! sai' )en'o# o# %o#t&a&o# to each o$ sai' c#e'ito#swhich state%ent shall be )e#i*e' b! an oath to the $ollowin& eect-

/IIINE ISANS

4OINCE O4 CIT6 O7 8888888888888888ss

Be$o#e %e the un'e#si&ne' autho#it!

(e#sonall! a((ea#e' 88888888888888888888)en'o# %o#t&a&o# a&ent o# #e(#esentati)e asthe case %a! be bea#in& ce'ula No.

88888888888888 issue' at 8888888888888888 on the8888 'a! o$ 888888888 who b! %e bein& *#st'ul! swo#n u(on his oath 'e(oses an' statesthat the $o#e&oin& state%ent contains the

na%es o$ all o$ the c#e'ito#s o$ 8888888888888888888888 )en'o# o# %o#t&a&o#to&ethe# with thei# a''#esses an' that thea%ount set o((osite each o$ sai' #es(ecti)ena%es is the a%ount now 'ue an' owin& an'which shall beco%e 'ue an' owin& b!

88888888888888888888888888 )en'o# o#%o#t&a&o# to such c#e'ito#s an' that the#ea#e no c#e'ito#s hol'in& clai%s 'ue o# whichshall beco%e 'ue $o# o# on account o$ &oo'swa#es %e#chan'ise (#o)isions o# %ate#ials(u#chase' u(on c#e'it o# on account o$ %one!bo##owe' to ca##! on the business o$ which

sai' &oo's wa#es %e#chan'ise (#o)isions o#%ate#ials a#e a (a#t othe# than as set $o#th insai' state%ent.

88888888888888888888888

Subsc#ibe' an' swo#n to be$o#e %e this 888888'a! o$ 8888888 19 888 at 888888888888888.

SECTION :.;hene)e# an! (e#son shall sell %o#t&a&e t#ans$e# o#assi&n an! stock o$ &oo's wa#es %e#chan'ise (#o)isions o# %ate#ialsin bulk $o# cash o# on c#e'it an' shall #ecei)e an! (a#t o$ the (u#chase(#ice o# an! (#o%isso#! note o# othe# e)i'ence o$ in'ebte'ness $o#sai' (u#chase (#ice o# a')ance u(on %o#t&a&e without ha)in& *#st'eli)e#e' to the )en'ee o# %o#t&a&ee o# to his o# its a&ent o##e(#esentati)e the swo#n state%ent (#o)i'e' $o# in section th#eehe#eo$ an' without a((l!in& the (u#chase o# %o#t&a&e %one! o$ thesai' (#o(e#t! to the (#o0#ata (a!%ent o$ the bona *'e clai% o# clai%so$ the c#e'ito#s o$ the )en'o# o# %o#t&a&o# as shown u(on such swo#nstate%ent he shall be 'ee%e' to ha)e )iolate' this Act an' an! suchsale t#ans$e# o# %o#t&a&e shall be $#au'ulent an' )oi'. EI/SC

SECTION 5.It shall be the 'ut! o$ e)e#! )en'o# t#ans$e#o# %o#t&a&o#o# assi&no# at least ten 'a!s be$o#e the sale t#ans$e# o# e+ecution o$ a%o#t&a&e u(on an! stock o$ &oo's wa#es %e#chan'ise (#o)isions o#%ate#ials in bulk to %ake a $ull 'etaile' in)ento#! the#eo$ an' to

7/25/2019 Sales Laws

2/5

(#ese#)e the sa%e showin& the ,uantit! an' so $a# as is (ossible withthe e+e#cise o$ #easonable 'ili&ence the cost (#ice to the )en'o#t#ans$e#o# %o#t&a&o# o# assi&no# o$ each a#ticle to be inclu'e' in thesale t#ans$e# o# %o#t&a&e an' noti$! e)e#! c#e'ito# whose na%e an'a''#ess is set $o#th in the )e#i*e' state%ent o$ the )en'o# t#ans$e#o#%o#t&a&o# o# assi&no# at least ten 'a!s be$o#e t#ans$e##in& (ossessionthe#eo$ (e#sonall! o# b! #e&iste#e' %ail o$ the (#ice te#%s an'

con'itions o$ the sale t#ans$e# %o#t&a&e o# assi&n%ent.

SECTION .Nothin& in this Act containe' shall a((l! to e+ecuto#sa'%inist#ato#s #ecei)e#s assi&nees in insol)enc! o# (ublic o?ce#sactin& un'e# @u'icial (#ocess.

SECTION 9.The swo#n state%ent containin& the na%es an' a''#esseso$ all c#e'ito#s o$ the )en'o# o# %o#t&a&o# (#o)i'e' $o# in section th#eeo$ this Act shall be #e&iste#e' in the e#cantile 4e&ist#! o$ the Bu#eauo$ Co%%e#ce an' In'ust#!. 7o# the #e&ist#ation o$ each such swo#nstate%ent a $ee o$ two (esos shall be cha#&e' to the )en'o# o#%o#t&a&o# o$ the stock o$ &oo's wa#es %e#chan'ise (#o)isions o#

%ate#ials in bulk. SEITC

SECTION 1.The (#o)isions o$ this Act shall be a'%iniste#e' b! thei#ecto# o$ the Bu#eau o$ Co%%e#ce an' In'ust#! who is he#eb!e%(owe#e' with the a((#o)al o$ the e(a#t%ent /ea' to (#esc#ibean' a'o(t $#o% ti%e to ti%e such #ules an' #e&ulations as %a! be'ee%e' necessa#! $o# the (#o(e# an' e?cient en$o#ce%ent o$ the(#o)isions o$ this Act.

SECTION 11.An! (e#son )iolatin& an! (#o)ision o$ this Act shall u(oncon)iction the#eo$ be (unishe' b! i%(#ison%ent $o# not less than si+%onths no# %o#e than *)e !ea#s o# *ne' in an! su% not e+cee'in&

*)e thousan' (esos o# b! both such i%(#ison%ent an' *ne in the'isc#etion o$ the cou#t. aSTECI

SECTION 12.This Act shall take eect on its a((#o)al.

A((#o)e'- ece%be# 1 1932

7/25/2019 Sales Laws

3/5

M!rc" #, 2$$$

4EBIC ACT NO. >=

7/25/2019 Sales Laws

4/5

hun'#e' thousan' S 'olla#s SG25. but less thanSe)en %illion *)e hun'#e' thousan' S 'olla#sSG=5. %a! be wholl! owne' b! $o#ei&ne#s e+ce(t $o#the *#st two 2 !ea#s a$te# the eecti)it! o$ this Act whe#ein$o#ei&n (a#tici(ation shall be li%ite' to not %o#e than si+t!(e#cent

7/25/2019 Sales Laws

5/5

(e#cent 3H o$ the a&e&ate cost o$ the stock in)ento#! o$$o#ei&n #etaile#s $allin& un'e# Cate&o#ies B an' C an' ten (e#cent1H $o# Cate&o#! shall be %a'e in the hili((ines.

SECTION 1.#ohibite' Acti)ities o$ Juali*e' 7o#ei&n4etaile#s. D Juali*e' $o#ei&n #etaile#s shall not be allowe' toen&a&e in ce#tain #etailin& acti)ities outsi'e thei# acc#e'ite'sto#es th#ou&h the use o$ %obile o# #ollin& sto#es o# ca#ts the useo$ sales #e(#esentati)es 'oo#0to0'oo# sellin& #estau#ants an' sa#i0sa#i sto#es an' such othe# si%ila# #etailin& acti)ities- #o)i'e'

That a 'etaile' list o$ (#ohibite' acti)ities shall he#ea$te# be$o#%ulate' b! the TI.

SECTION 11.I%(le%entin& A&enc!F 4ules an'4e&ulations. D The %onito#in& an' #e&ulation o$ $o#ei&n sole(#o(#ieto#shi(s (a#tne#shi(s associations o# co#(o#ationsallowe' to en&a&e in #etail t#a'e shall be the #es(onsibilit! o$ theTI. This shall inclu'e #esolution o$ conKicts.

The TI in coo#'ination with the SEC the NEA an'the BS shall $o#%ulate an' issue the i%(le%entin& #ules an'#e&ulations necessa#! to i%(le%ent this Act within ninet! 9'a!s a$te# its a((#o)al. C'(#

SECTION 12.enalt! Clause. D An! (e#son who shall be$oun' &uilt! o$ )iolation o$ an! (#o)ision o$ this Act shall be(unishe' b! i%(#ison%ent o$ not less than si+ !ea#s an' a *ne o$ not lessthan One %illion (esos 1. but not %o#e than Twent!

%illion (esos 2.. In the case o$ associations(a#tne#shi(s o# co#(o#ations the (enalt! shall be i%(ose' u(onits (a#tne#s (#esi'ent 'i#ecto#s %ana&e# an' othe# o?ce#s#es(onsible $o# the )iolation. I$ the oen'e# is not a citien o$ thehili((ines he shall be 'e(o#te' i%%e'iatel! a$te# se#)ice o$sentence. I$ the 7ili(ino oen'e# is a (ublic o?ce# o# e%(lo!eehe shall in a''ition to the (enalt! (#esc#ibe' he#ein sue#

'is%issal an' (e#%anent 'is,uali*cation $#o% (ublic o?ce.SECTION 13.4e(ealin& Clause. D 4e(ublic Act No.

11> as a%en'e' is he#eb! #e(eale'. 4e(ublic Act No. 31> asa%en'e' an' all othe# laws e+ecuti)e o#'e#s #ules an'#e&ulations o# (a#ts the#eo$ inconsistent with this Act a#e #e(eale'o# %o'i*e' acco#'in&l!.

SECTION 1:.Se(a#abilit! Clause. D I$ an! (#o)isions o$this Act shall be hel' unconstitutional the othe# (#o)isions notothe#wise aecte' the#eb! shall #e%ain in $o#ce an' eect.

SECTION 15.Eecti)it!. D This Act shall take eect

*$teen 15 'a!s a$te# its a((#o)al an' (ublication in at least two2 news(a(e#s o$ &ene#al ci#culation in the hili((ines. c'asia

A((#o)e'- a#ch = 2

ublishe' in The anila Ti%es an' ala!a on a#ch 1 2.ublishe' in the O?cial Laette ol. 9< No. 2: (a&e 3