The bulk transfer law is designed to prevent a merchant from defrauding his or her creditors by selling the assets of a business and neglecting to pay any amounts owed the creditors.
The law requires notice so that creditors may take whatever legal steps are necessary to protect their interests. For a description of the required notices to creditors and the manner of giving them, consult Sections 6104 - 6107 of the Uniform Commercial Code
Businesses subject to this law are those whose principal activity is the sale of merchandise, including those that manufacture what they sell. Expressly included are the businesses of a baker, restaurant owner, garage owner, or cleaner and dyer. Unless otherwise limited by law, all bulk transfers of goods within California are subject to this law.