733.01 Going-out-of-business sale defined.
733.02 License required.
733.03 License application information; renewal.
733.04 License fees.
733.05 Bond required; effective period; notification of suit.
733.06 Limitations on license issuance.
733.07 Inventory limitation.
733.08 Revocation or suspension of license.
733.09 Licensee attendance required.
733.10 Regulations.
733.99 Penalty.
CROSS REFERENCES
Sales on sidewalks - see GEN. OFF. 559.05
Ten day notice of closing of business - see B.R. & T. 771.02
As used in this Chapter, “going-out-of-business sale” means and includes a removal, loss, termination, loss or expiration of lease, closing out, liquidation, creditor's, damaged goods, forced or distress stock sale, or any other term which shall reasonably lead the public to believe that the owner or offerer of such goods, wares or merchandise, either by choice or necessity, will no longer continue to engage in business at the same location. This section shall not be deemed to apply to any person who sells, offers for sale or announces or advertises for sale goods, wares or merchandise at a reduction in price, when such reduction in price is made in the normal course of business operations, nor to any person executing a process or order of a court of competent jurisdiction, nor to a creditor's sale conducted by a licensed auctioneer which does not exceed one day's duration.
(Ord. 93-1976. Passed 4-19-76.)
Each applicant for a license required by Section 705.02 shall make an application therefor to the Mayor not later than thirty days prior to the advertising or offering for sale of any goods, wares or merchandise. Such application shall be on forms provided by the Mayor which shall include, in addition to the name and address of the applicant, the name and address of the person in whose behalf such sale will be conducted if such is other than the applicant, the date when the sale will commence and the complete inventory, including the quality, kind, character and wholesale market value of the goods, wares or merchandise to be offered for sale.
The information shall be prepared in the following manner:
(a) A listing of all goods, wares or merchandise which have been in stock fifteen days or longer prior to the date of such application;
(b) A listing of all goods, wares or merchandise received in stock within fifteen days immediately prior to the date of such application.
(c) A listing of all goods, wares or merchandise which have been or will be offered and placed in stock during the pendency of such sale;
(d) Such other information relative to the business as may be deemed necessary by the Mayor.
If the inventory itemized in the original application is not disposed of within the required time, the Mayor may, as hereinafter provided, renew such license. The fee for such renewal shall be determined by the wholesale value of the inventory itemized in an application for license renewal, which form shall be provided by the Mayor.
(Ord. 93-1976. Passed 4-19-76.)
Each application for a going-out-of-business sale license or license renewal for any thirty-day period or part thereof shall be accompanied by the following fee:
(a) Twenty-five dollars ($25.00) if the wholesale value of the inventory itemized in the application for a license or the renewal thereof is not in excess of five thousand dollars ($5,000);
(b) Fifty dollars ($50.00) if the wholesale value of the inventory itemized in the application for a license or the renewal thereof is more than five thousand dollars ($5,000) but not in excess of ten thousand dollars ($10,000);
(c) One hundred dollars ($100.00) if the wholesale value of the inventory itemized in the application for a license or the renewal thereof is more than ten thousand dollars ($10,000) but not in excess of twenty-five thousand dollars ($25,000);
(d) Two hundred dollars ($200.00) if the wholesale value of the inventory itemized in the application for a license or the renewal thereof is in excess of twenty-five thousand dollars ($25,000) plus one-half of one percent of the portion of wholesale value of inventory itemized in the application for a license or the renewal thereof which exceeds fifty thousand dollars ($50,000).
Each applicant for a going-out-of-business license shall execute and file with the Mayor a good and sufficient bond in the sum equivalent to one-fourth the wholesale value of the inventory itemized in the application for a license or renewal thereof, not less in any event than five thousand dollars ($5,000) with two or more sureties thereon who shall be freeholders within the City, or with the surety thereon a surety company authorized to do business in the State. The bond shall be subject to the approval of the Law Director and shall be conditioned upon faithful observance of all the conditions of this chapter and shall also indemnify any purchaser who suffers any loss by reason of misrepresentations in a sale licensed hereunder.
The bond shall continue in effect for a period of one year. The licensee shall notify the Mayor of any suit filed as a result of the operations hereby licensed. Any purchaser claiming to have been damaged by misrepresentation in the sale may maintain an action at law against the licensee making such misrepresentations and may join as party defendant the surety or sureties on such bond as herein provided.
No going-out-of-business sale shall be licensed or permitted for a period of more than thirty days, Sundays and legal holidays excepted. The thirty days shall be consecutive exclusive of Sundays and legal holidays, provided that if the licensee does not sell the quantity of merchandise listed in the application for a license, he or she may make application for extension of such license to the Mayor, and if, upon investigation, the Mayor is satisfied as to the truth of the statements contained in the application for renewal, he or she shall issue a renewal license for a period of not more than thirty days. A maximum of one such renewal may be granted except when the cause is justified to the satisfaction of the Mayor, and then additional thirty-day renewals may be granted until all the disposable inventory listed in the original application for a license is sold.
No license shall be issued to any person to conduct a sale at the same location where the applicant has terminated a prior sale licensed hereunder within a period of eighteen months subsequent to the termination of such prior sale; nor shall a license be issued to a purchaser of stock at a sale licensed hereunder for a period of eighteen months subsequent to such purchase if the purchaser continues to conduct business under the same firm name as that used by the seller of such stock without having adopted a reasonable means of advertising the change in ownership to the public; nor, where no bona fide change in ownership has taken place and the purchase was a sham transaction intended to deceive the public. No license shall be issued to any person who has not been, for a period of 120 days next preceding such sale, continuously engaged in the City in the business of selling goods, wares or merchandise at retail at the same location.
No person who has been convicted of violating any of the provisions pertaining to a sale licensed hereunder shall be issued a license to conduct such a sale or be employed in any manner in the conduct of such a sale for a period of two years subsequent to such conviction.
(Ord. 93-1976. Passed 4-19-76.)
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