Peters Branch International Shoe Co. v. Gunn

Citations

• 121 Miss. 679
• 83 So. 742

Syllabus

<p>1. Fraudulent Conveyance. Sale of stock of goods in violation of hulk sales law is void.</p> <p>A sale of a stock of goods in violation of the Bulk Sales Law is fraudulent and void.</p> <p>2. Creditors May Recover ' Goods Fraudulently Sold in Bulk or Hold the Buyer for Value.</p> <p>Where a stock of goods was sold in violation of the Bulk Sales Law, a creditor, may proceed against the property if it remains in the hands of the purchaser, or waive the tort and sue the purchaser for the value of the goods or he may pursue both remedies.</p> <p>3. Fraudulent Conveyance. Disposal by buyer of goods fraudulently sold in bulk does not affect Ms liability.</p> <p>The fact that the buyer of a stock of goods who had not complied with the Bulk Sales Law had disposed of them before the creditors’ suit was filed, does not affect his liability for he stands in the position of a trustee of the property for the creditors.</p> <p>4. Fraudulent Conveyance. Payment of proceeds of void sale in bulk to other creditors does not relieve buyer.</p> <p>The application by the seller of goods in violation of the Bulk Sales Law, of the proceeds of the sale to the payment of some of his creditors, does not affect the buyer’s liability to a creditor who had not received any of the proceeds.</p> <p>5. Fraudulent Conveyance. Existence of other creditors not made parties does not affect right of complainant creditor.</p> <p>A creditor may recover from the buyer of goods sold in violation of the Bulk Sales Law the full amount of his claim if it is less than the value of the goods, though there may be other creditors, not made ' parties to the suit, whose total claims greatly exceed the value of the goods.</p>