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No person shall advertise or conduct a distress merchandise sale without first having obtained a license to do so in accordance with the provisions of this chapter.
(1997 Code, § 112.02) (Ord. 403, passed 6-6-1961) Penalty, see § 112.99
(A) Any person desiring to conduct a distress merchandise sale shall make a written application to the Fiscal Officer at least five days prior to the date on which such sale is to commence, on forms furnished by the Fiscal Officer and verified by the applicant before a person authorized to administer oaths. In cases where due to circumstances beyond the control of the applicant, other than economic reverses, application cannot be made five days prior to commencement of the sale, the Fiscal Officer shall waive the five days requirement.
(B) Each application shall contain the following information, and such other information the Fiscal Officer may deem necessary:
(1) The name and address of the owner of the goods, wares or merchandise to be sold;
(2) A description of the place where such sale is to be held;
(3) The nature of the occupancy of the place where such sale is to be held, whether by lease or otherwise, and the effective date of termination of such occupancy;
(4) A full and complete statement of the facts regarding the distress merchandise sale, including the reason why such sale is being conducted, the manner in which such sale will be conducted, and the commencement and termination date of such sale; and
(5) A complete and detailed inventory of the goods, wares and merchandise to be offered at such sale as disclosed by applicant’s records or a statement of both the cost and retail value of the inventory of goods, wares and merchandise to be offered at such sale based on the physical inventory used for applicant’s most recent federal income tax return adjusted for sales, purchases and mark-downs. Adjustments for sales, purchases and mark-downs shall be shown on a monthly basis to the date of the application. In addition, there shall be shown as separate items in either form of inventory the retail value of all goods, wares and merchandise the applicant has on consignment which will be offered for sale and the cost and retail value of all goods, wares and merchandise on back order.
(C) The filing of an application for a license, the contents of such application and the issuance of a license shall be confidential information and no disclosure thereof shall be made except such as may be necessary in the administration of the provisions of this chapter. However, any disclosure may be made with the consent of the applicant and the filing of an application and the issuance of a license shall not be considered confidential after public notice has been given of the proposed sale. Disclosures made contrary to the provisions of this section shall be subject to the penalty provided in § 112.99.
(1997 Code, § 112.03) (Ord. 403, passed 6-6-1961) Penalty, see § 112.99
The fee for a license issued pursuant to this chapter shall be $25 or 0.25% of the cost inventory value of the goods, wares and merchandise to be sold, at such sale, whichever is the greatest amount.
(1997 Code, § 112.04) (Ord. 403, passed 6-6-1961) Penalty, see § 112.99
No license shall be issued for a distress merchandise sale unless there is filed with the Fiscal Officer a bond conditioned upon the faithful observance of all the provisions of this chapter and the indemnifying of any purchaser at such sale who suffers any loss by reason of any misrepresentation made in connection with such sale, and authorizing actions thereunder by the village for the violation of any provision of this chapter, and by any purchaser at such sale for damage or loss suffered by him or her by reason of any misrepresentation made in connection with such sale. The amount of the bond shall be determined as follows: 10% of the first $100,000 of the inventory cost of all the goods, wares and merchandise to be offered at sale; 5% on the next $400,000 and 2% on the balance. The bond shall be approved as to form by the Solicitor and as to sufficiency by the Fiscal Officer.
(1997 Code, § 112.05) (Ord. 403, passed 6-6-1961)
(A) Upon receipt of any application, the Fiscal Officer shall cause such investigation as is deemed necessary to be made of the facts contained therein. No license shall be issued if any one or more of the following facts or circumstances are found to exist:
(1) That the applicant was granted more than one license hereunder for a going-out-of-business sale within two years preceding the date of the filing of the application;
(2) That the applicant has heretofore been convicted of violation of this chapter or has had a license issued to him or her pursuant to this chapter revoked within a five-year period immediately preceding the date of the filing of the application;
(3) That the inventory includes goods, wares or merchandise purchased by the applicant or added to his or her stock in contemplation of such sale and for the purpose of selling the same at such sale. For the purpose of this division (A), any unusual addition to the stock of such goods, wares and merchandise made within 60 days prior to the filing of such application shall be prima facie evidence that such addition was made in contemplation of such sale and for the purpose of selling the same at such sale;
(4) That applicant in the ticketing of the goods, wares and merchandise to be offered has misrepresented the original retail price or value thereof; and
(5) That any representation made in the application is false.
(B) The Chief of Police shall, from time to time, enter into contracts with competent, qualified persons for the examination of the inventories and records of applicants for licenses. Such persons shall work under the direction and control of the Fiscal Officer and shall make such examination of records and inventories as are specified by the Fiscal Officer and authorized by this chapter. All information obtained by such persons or any village employed officials through applications or examinations made pursuant to this chapter shall be confidential, any disclosure thereof, except where such disclosure is necessary in the administration of the provisions of this chapter shall constitute a misdemeanor punishable as provided in § 112.99.
(1997 Code, § 112.06) (Ord. 403, passed 6-6-1961) Penalty, see § 112.99
(A) When it appears to the Fiscal Officer that all the statements in the application are true and that the proposed sale is of the character represented therein, that the application is in full compliance with the terms and conditions of this chapter, and that the required license fee has been paid and the required bond filed, the Fiscal Officer shall issue a license to the applicant authorizing the applicant to advertise and conduct the sale as described in the application, subject to the following conditions:
(1) The sale shall be held at the place named in the application and by the particular licensee for a period of not more than 30 consecutive calendar days, Sundays and legal holidays excluded, next following the date specified in the license;
(2) Only the goods, wares and merchandise included in the inventory attached to the application shall be sold at such sale;
(3) Upon the commencement of the sale and for its duration, the license issued hereunder shall be prominently displayed in the place of sale by the licensee;
(4) The licensee shall keep suitable books during the sale, at the location at which such sale is conducted, in which shall be made daily entries showing:
(a) Dollar amount of retail sales;
(b) Dollar amount of mark-downs (Without limiting the meaning of the term mark-down, the difference between retail and wholesale price of goods wholesaled by the licensee shall be considered a mark-down.);
(c) Dollar amount, both retail and cost price, of goods on back order received; and
(d) Dollar amount of wholesale sales.
(B) Copies of such daily entries shall be sent to the Fiscal Officer weekly and all books of the licensee shall be open for inspection by the Fiscal Officer or his or her duly authorized representatives during business hours.
(1997 Code, § 112.07) (Ord. 403, passed 6-6-1961)
The Fiscal Officer shall revoke any license issued pursuant to the provisions of this chapter if he or she shall find that the licensee has:
(A) Violated the provisions of this chapter;
(B) Made any material misstatement in his or her application;
(C) Failed to include in the inventory required by the provisions of this chapter all the goods, wares and merchandise being offered for sale;
(D) Offered or permitted to be offered at such sale any goods, wares or merchandise not included in the inventory attached to the application;
(E) Failed to keep suitable records of such sale; or
(F) Made or permitted to be made any false or misleading statements or representations in advertising such sale, or in displaying, ticketing or pricing goods, wares or merchandise offered for sale.
(1997 Code, § 112.08) (Ord. 403, passed 6-6-1961)
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