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.