Yancey v. Lamar-Rankin Drug Co.

1. Under the “sale-in-bulk” act (Civil Code, § 3226), the following transactions are declared to be fraudulent and void as against creditors of the vendor, when the provisions of the act are not complied with: (1) Every sale or transfer of a stock of goods, wares, or merchandise in bulk, (2) or of substantially the entire business theretofore conducted by the vendor of such a stock, (3) or every sale or transfer of such a stock out of the usual or ordinary course of business or trade of the vendor.

2. The act is in derogation of the common law, and of the right to alienate property without…