(A) Each application hereunder shall execute and file with the City Manager a good and sufficient bond of $2,500, except that such bond shall not be required when the wholesale market value of the goods, wares or merchandise to be offered for sale is not in excess of $5,000, with two or more sure ties thereon who shall be freeholders within the city, or with surety thereon a surety company authorized to do business in the state. The bond shall be to the approval of the City Attorney 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 misrepresentation in a sale licensed hereunder.
(B) The bond shall continue in effect for a period of one year. The licensee shall notify the City Manager of any suit filed as a result of the operations 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 on such bond as herein provided.