A. License Required: It shall be unlawful for any person, firm or corporation to advertise or conduct any sale of goods, wares or merchandise, at retail, which is represented as a bankrupt, insolvent, assignee, adjusters, trustees, executors, administrators, receivers, wholesalers, jobbers, manufacturers, liquidators, closing stock, fire or water damage, closing out, going out of business, or any other sale which is by representation or advertisement intended to lead the public to believe that the person, firm or corporation conducting such sale will not continue in the same business after all of the goods, wares or merchandise offered for sale have been sold, without first filing with the chief of police the inventory hereinafter provided for, and obtaining from the city administrator a license to conduct such a sale, to be known as a going out of business sale license. Such licenses shall be issued by the city administrator upon production of:
1. A receipt from the city administrator showing payment of the proper license fees as hereinafter provided; and
2. An acknowledgment from the chief of police that a satisfactory inventory has been filed. (Ord. 619, eff. 10-14-1958)
B. (Rep. by Ord. 124, 2nd Series, eff. 9-10-1984)
C. Inventory:
1. The inventory required in subsection A of this section to be filed with the chief of police shall contain:
a. A listing of all goods, wares and merchandise which have been in stock for a period of fifteen (15) days or longer prior to the filing of the inventory, together with the wholesale price thereof.
b. A listing of all goods, wares and merchandise received in stock within the fifteen (15) days immediately preceding the filing of the inventory, together with the wholesale price thereof.
c. A list of all goods, wares and merchandise which have been ordered and will be placed in stock during the sale, together with the wholesale price thereof.
d. A statement of the method by which the applicant for the license or the true owner of the goods, wares and merchandise if a different person, acquired title to the same.
e. A statement of the reason for the urgent and expeditious disposal thereof by means of a going out of business sale. The wholesale prices of goods, ware and merchandise listed in the foregoing inventory shall be held confidential and shall not be disclosed to any city employee or other person not directly involved in the licensing process.
2. The inventory shall be signed by the person seeking the license, or by his or its authorized resident agent, and such inventory shall be accompanied by the oath of the person seeking the license, or by his or its authorized resident agent, that the statements contained in the inventory are true and correct. A copy of the inventory without wholesale prices shall be posted by the licensee in a conspicuous place in his or its business establishment. It shall be unlawful to sell, offer or expose for sale at any such going out of business sale, any goods, wares or merchandise which are not included in the inventory submitted. It shall be unlawful for any person, firm, or corporation conducting a licensed going out of business sale to add any goods, wares or merchandise to the stock during the continuance of the sale except goods, wares or merchandise inventoried as on order. Each act of selling, offering or exposing for sale of any goods, wares or merchandise not included in the inventory submitted, shall constitute a separate offense under this section. The person, firm or corporation conducting a going out of business sale under a license granted pursuant to the terms of this section shall keep an accurate record of the goods, wares and merchandise sold, from which record the chief of police may determine the kind and quantity sold.
D. Investigation Of Extraordinary Or Large Inventory: At any time when it appears to the chief of police from the inventory submitted by an applicant for a going out of business sale license that an extraordinarily or unusually large amount of goods, wares or merchandise are on order in comparison with goods on hand, the chief of police shall not acknowledge to the city administrator that a satisfactory inventory has been received, as provided in subsection A of this section, but shall, in lieu thereof, deliver the inventory submitted to the city administrator with the instruction that the said inventory be submitted to the council for approval prior to the issuance of a license. The city administrator shall forthwith deliver the said inventory to the chairperson of the license committee of the council. The license committee shall forthwith contact the applicant for a going out of business sale license and shall determine whether the goods, wares or merchandise on order substantially exceed the normal and usual amount of "on order" goods, wares and merchandise of this particular business at the particular time of the year when the going out of business sale license is applied for, and whether a substantial portion of the goods, wares or merchandise on order has been ordered especially for the going out of business sale to be conducted. In the event the license committee determines that a substantial portion of the goods, wares or merchandise on order exceeds normal and usual business requirements and has been ordered especially for the going out of business sale to be conducted, the license committee shall recommend to the council that the inventory be disapproved and the city administrator be instructed to reject the application for a going out of business sale license. Otherwise, the license committee shall recommend to the council that the inventory be approved and that the city administrator be instructed to issue the going out of business sale license applied for.
E. Regulation Of Sale: The chief of police may, in his discretion, verify the details of the inventory filed for the purpose of obtaining a going out of business sale license, and he may check and verify the items of goods, wares and merchandise sold during such sale. It shall be unlawful for any person, firm or corporation to whom a going out of business sale license has been issued to fail or refuse to give to the chief of police or any person designated by him any facts or records necessary for a proper check or verification of the inventory filed or goods, wares and merchandise sold during the going out of business sale.
F. Not Applicable To Certain Sales: The provisions of this section shall not apply to the advertisement or conduct of sales by sheriffs, constables, marshals or other public or court officers in performance of their official duties as such, or to trustees in bankruptcy, or any other person or persons acting under the direction or authority of any court, state or federal, selling merchandise in the course of their official duties.
G. Food Items Exempt: The provisions of this section shall not apply to perishable items of food sold by any person, firm or corporation during a going out of business sale otherwise properly licensed under the terms of this section.
H. Revocation Of License: The council may suspend or revoke any going out of business sale license for any violation of the provisions of this section. (Ord. 619, eff. 10-14-1958)
I. Extension Of License: If at any time during the period for which a going out of business sale license has been issued, a sworn application is filed with the city administrator indicating that all of the goods, wares or merchandise listed in the original inventory have not been sold, and that the licensee has in good faith attempted to sell or otherwise dispose of all the goods, wares or merchandise listed in the original inventory during the period for which the going out of business sale license has been originally issued, together with an inventory of the goods, wares or merchandise which remain, the council may extend the license for an additional period not to exceed thirty (30) days and upon payment of an additional license fee, the license shall continue in effect as authorized. (Ord. 124, 2nd Series, eff. 9-24-1984)
J. Consignment Sales: No going out of business sale license shall be issued to any applicant who shall list in the inventory submitted pursuant to subsections A and B of this section, goods, wares or merchandise "on order" on a consignment sale basis or other similar basis where the title to goods, wares or merchandise is in a person other than the applicant for a going out of business sale license, and the goods, wares or merchandise may be returned to such other person, if not sold, without loss to the applicant.
K. Existing Sales: The provisions of this section shall not apply to going out of business sales already in progress on the date this section becomes effective.
L. Penalty: Any person, firm or corporation violating any of the provisions of this section, upon conviction thereof, shall be punished by a fine of not more than one hundred dollars ($100.00) or by imprisonment for a period not exceeding ninety (90) days. (Ord. 619, eff. 10-14-1958)