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707.01 Definitions.
707.02 License required.
707.03 Application for license; information required.
707.04 Investigation of application; grounds for denial.
707.05 Hiring of examiners; penalty for disclosures.
707.06 Issuance of license; conditions; records required.
707.07 Revocation of license.
707.08 License renewal.
707.09 Exceptions.
707.99 Penalty.
CROSS REFERENCES
Theft by deception - see GEN. OFF. 545.05
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 a 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 shall 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," "bankrupt sale," "save us from bankruptcy sale," "insolvent sale," "insurance salvage sale," "mortgage sale," "assignee's sale," "adjuster's sale," "must vacate sale," "quitting business sale," "forced out of business sale," or "removal sale."
(b) "Person" means any individual, partnership, association, firm or corporation.
(Ord. 1845. Passed 8-4-58.)
(a) Any person desiring to conduct a distress merchandise sale shall make written application to the City Administrator at least five days prior to the date on which such sale is to commence, on forms furnished by the City Administrator and verified by the applicant before a person authorized to administer oaths. In cases where, due to circumstances beyond the control of the applicant, other than economic reverses, application cannot be made five days prior to commencement of the sale, the City Administrator shall waive such five-day requirement. Each application shall contain the following information, and such other information as the City Administrator may deem necessary:
(1) The name and address of the owner of the goods, wares or merchandise to be sold;
(2) A description of the place where such sale is to be held;
(3) 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;
(4) A full and complete statement of the facts regarding the distress merchandise sale, including the reason why such sale is being conducted, and the commencement and termination date of such sale;
(5) A complete and detailed inventory of the goods, wares and merchandise to be offered at such sale as disclosed by 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 applicant's most recent federal income tax return adjusted for sales, purchases and mark-downs. Adjustments for sales, purchases and mark-downs shall be shown on a monthly basis to date of application. In addition, there shall be shown as separate items in either form of inventory the retail value of all goods, wares and merchandise that the applicant has on consignment which will be offered for sale and the cost and retail value of all goods, wares and merchandise on back order.
(b) 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 disclosures may be made with the consent of the applicant and the filing of an application and the issuance of a license shall not be considered confidential after public notice has been given of the proposed sale.
(Ord. 1845. Passed 8-4-58; Ord. 2257. Passed 4-18-65.)
(c) Any person who makes any disclosure contrary to the provisions of this section shall be subject to the penalty provided for in Section 707.99.
Upon receipt of an application, the City Administrator shall cause such investigation as he deems necessary to be made of the facts contained therein. No distress merchandise sale license shall be issued if any one or more of the following facts or circumstances are found to exist.
(a) That the applicant was granted more than one license hereunder for a going-out-of-business sale within two years preceding the date of the filing of the application.
(b) That the applicant has heretofore been convicted of a violation of any provision of this chapter or has had a license issued to him pursuant to this chapter which has been revoked within a five year period immediately preceding the date of the filing of the application.
(c) That the inventory includes goods, wares or merchandise purchased by the applicant or added to his stock in contemplation of such sale and for the purpose of selling the same at such sale. For the purpose of this subsection, any unusual addition to the stock of such goods, wares and merchandise made within sixty days prior to the filing of such application shall be prima-facie evidence that such addition was made in contemplation of such sale and for the purpose of selling the same at such sale.
(d) That the applicant, in the ticketing of the goods, wares and merchandise to be offered at the sale, has misrepresented the original retail price or value thereof.
(e) That any representation made in the application is false.
(Ord. 1845. Passed 8-4-58.)
(a) The Board of Control shall, from time to time, enter into contracts with competent, qualified persons for the examination of the inventories and records of applicants for licenses. Such persons shall work under the direction and control of the City Administrator and shall make such examinations of records and inventories as are specified by the City Administrator and authorized by this chapter.
(Ord. 1845. Passed 8-4-58.)
(b) All information obtained by any person, City employee or official through applications or examinations made pursuant to this chapter shall be confidential, and any disclosure thereof, except where such disclosure is necessary in the administration of the provisions of this chapter shall constitute a violation of this section, punishable by the penalty provided for in Section 707.99.
When it appears to the City Administrator that all the statements in the application are true and that the proposed sale is of the character represented therein, and that the application is in full compliance with the terms and conditions of this chapter, the City Administrator shall issue a distress merchandise sale license to the applicant authorizing the applicant to advertise and conduct the sale as described in the application, subject to the following conditions:
(a) The sale shall be held at the place named in the application and by the particular licensee for a period of not more than thirty consecutive calendar days, Sundays and legal holidays excluded, next following the date specified in the license;
(b) Only the goods, wares, and merchandise included in the inventory attached to the application shall be sold at the sale;
(c) Upon the commencement of the sale and for its duration, the license issued hereunder shall be prominently displayed in the place of sale by the licensee;
(d) The licensee shall keep suitable books during the sale, at the location at which the sale is conducted, in which shall be made daily entries showing:
(1) Dollar amount of retail sales.
(2) Dollar amount of mark-downs. (Without limiting the meaning of the term "mark-down", the differences between the retail and wholesale price of goods wholesaled by the licensee shall be considered a mark-down.)
(3) Dollar amount, both retail and cost price, of goods on back order received.
(4) Dollar amount of wholesale sales. Copies of such daily entries shall be sent to the City Administrator weekly and all books of the licensee shall be open for inspection by the City Administrator or their duly authorized representative during business hours.
(Ord. 23-67. Passed 10-2-23.)
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