Adrian Tabin Corp. v. Climax Boutique, Inc.

The novel issue posed by this appeal is whether a purchaser at a bulk sale, who receives an affidavit of “no creditors ” is nevertheless under a duty to make careful inquiry as to the possible existence of creditors, of whom he has no actual knowledge. The plaintiff, a creditor of the seller, was not notified of the sale and hence seeks an adjudication that, as to it, the sale is void.

Defendant L. D. J. Dress, Inc. (hereafter referred to as “ the seller ”) operated a dress shop in Jamaica, Queens. The seller was indebted to the plaintiff, a garment supplier, at the time it sold its business…