CHAPTER 713
Distress Merchandise Sales
713.01   Definitions.
713.02   License required.
713.03   Application information.
713.04   Bond required.
713.05   Investigation; grounds for denial.
713.06   Hiring of examiners.
713.07   License issuance and conditions.
713.08   Revocation.
713.09   Renewal and fee.
713.10   Initial fee.
713.11   Exceptions.
713.99   Penalty.
CROSS REFERENCES
Advertising supplemented merchandise - see BUS. REG. 705.04
   713.01 DEFINITIONS.
   The following terms shall have the meanings ascribed unless the context clearly indicates a different meaning:
(a)    "Distress merchandise sale" means any offer to sell to the public, or the sale to the public of goods, wares or merchandise on the implied or direct representation that such sale is in anticipation of the termination of a business at its present location or that the sale is being held other than in the ordinary course of business. Without limiting the generality of the above, "distress merchandise sales" include any sale advertised, either specifically or in substance, to be a "fire sale", "smoke and water damage sale", "adjustment sale", "creditor's sale", "trustee's sale", "bankruptcy sale", "save us from bankruptcy sale", "insolvent sale", "insurance salvage sale", "mortgage sale", "assignee's sale", "adjustor's sale", "must vacate sale", "quitting business sale", "receiver's sale", "loss of lease sale", "forced out of business sale" or "removal sale".
(b)    "Person" means any sole proprietor, partnership, association, company, firm or corporation.
(Ord. 178(90-91). Passed 3-7-91.)
   713.02 LICENSE REQUIRED.
   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.
(Ord. 178(90-91). Passed 3-7-91.)
   713.03 APPLICATION INFORMATION.
   Any person desiring to conduct a distress merchandise sale shall make written application to the City, to be filed with the Director of Public Safety and Service at least fifteen days prior to the date on which such sale is to commence, on forms furnished by the Director and signed and sworn to before a notary public and the Director by the highest ranking local principal of the applicant. Each application shall contain the following information and such other information as the Director may deem necessary: 
(a)    The name and address of the owner of the goods, wares or merchandise to be sold;
(b)    A description of the place where such sale is to be held;
(c)    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;
(d)    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;
(e)    A complete and detailed inventory of the goods, wares and merchandise to be offered at such sale as disclosed by the 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 the applicant's most recent Federal income tax return adjusted for sales, purchases and mark-downs shall be shown on a monthly basis to the date of application. In addition, there shall be shown, as separate items in either form of inventory, the cost and retail value of all consignment merchandise intended to be sold with forms attached thereto giving proof that such consignment merchandise was received at least sixty days prior to the filing of the application, or, if not received, that such consignment merchandise was ordered at least sixty days prior to the filing of the application.
   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; 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 Section 713.99(b).
(Ord. 178(90-91). Passed 3-7-91.)
   713.04 BOND REQUIRED.
   No license shall be issued for a distress merchandise sale unless there is filed with the Director of Public Safety and Service 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 City for the violation of any provision of this chapter, and by any purchaser at such sale for damage or loss suffered by him by reason of any misrepresentation made in connection with such sale. The amount of such bond shall be determined as follows: ten percent (10%) of the first one hundred thousand dollars ($100,000) of the inventory cost of all the goods, wares and merchandise to be offered at sale; five percent (5%) on the next four hundred thousand dollars ($400,000) and two percent (2%) on the balance. Such bond shall be approved as to form by the Law Director and as to sufficiency by the City Auditor.
(Ord. 178(90-91). Passed 3-7-91.)
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