Before a license is issued, the applicant shall execute and deliver to the City Manager a bond with good and sufficient surety to be approved by the Director of Law in the sum of one thousand dollars ($1,000), which bond shall be conditioned to indemnify or reimburse any purchaser of goods, wares or merchandise in a sum equal to at least the amount of any payment the purchaser may have been induced to make through misrepresentation as to the kind, quality or value of the goods, wares or merchandise, whether the misrepresentation was made at the time of making the sale, or through any advertisement printed or circulated with reference to the stock of goods, wares or merchandise.