Loading...
ARTICLE E. DISTRESS SALES
SECTION:
3-4E-1: Definitions
3-4E-2: Exemptions From Article
3-4E-3: Licensing Authority
3-4E-4: License Required
3-4E-5: Application For License
3-4E-6: Conditions Of License
3-4E-7: License Fees
3-4E-8: Prohibited Acts And Conditions
3-4E-9: Revocation Of License
3-4E-10: Violation; Penalty
As used in this article, the following terms shall have the meanings ascribed to them:
CLOSING-OUT SALE: The sale or an offer to sell at retail to the public, goods, wares and merchandise of any and all kinds and descriptions on hand and in stock in connection with a declared purpose, as set forth by advertising, on the part of the seller, that the sale is anticipatory to the termination, closing, liquidation, revision, wind-up, discontinuance, moving, conclusion or abandonment of the business in connection with the sale; it shall also include any sale advertised, either specifically or in substance, to be an "adjustment sale", "creditor's sale", "trustee's sale", "bankrupt sale", "insolvent sale", "insurance salvage sale", "mortgage sale", "assignee sale", "adjustor's sale", "receiver's sale", "loss of lease sale", "forced out of business sale", "going out of business sale", "removal sale", and any and all sales advertised in such a manner as to reasonably convey to the public that upon the disposal of the stock of goods on hand, the business will cease and be discontinued at its existing location.
LICENSE: A license issued pursuant to this article.
LICENSEE: Any person to whom a license has been issued pursuant to this article.
PUBLISH, PUBLISHING, ADVERTISEMENT, ADVERTISING: Any and all means of conveying to the public notice of a sale or notice of an intention to conduct a sale, whether by word of mouth, by newspaper advertisement, by magazine advertisement, by handbill, by circular, by pamphlet, by written notice, by printed notice, by printed display, by billboard display, by poster, by radio announcement, by radio program, by recordings, or any and all means, including oral, written or printed.
RESIDENT MERCHANT: A merchant who has maintained an established place of retail business within the city for the sale at retail of goods, similar to those to be sold at the sale described in this section, for a continuous period of one year or more directly preceding the opening date of the sale.
TRANSIENT MERCHANT: Any merchant doing or contemplating doing business in the city, and who is not a "resident merchant", as defined in this section. (Rev. Ord. 1952, Comp. 1941, p. P-33)
The provisions of this article shall not apply to or effect the following persons or sales:
A. Persons acting pursuant to an order or process of a court of competent jurisdiction.
B. Persons acting in accordance with their powers and duties as public officers, such as sheriffs, bailiffs or marshals.
C. Duly licensed auctioneers, selling at auctions.
D. Executors, guardians, assignees of insolvent debtors, bankrupts, or other persons required by law to sell said property. (Rev. Ord. 1952, Comp. 1941, p. P-33)
The city council is hereby authorized and empowered to supervise or regulate closing-out sales, and to issue appropriate licenses therefor upon the proper application for a license, and to provide for the investigation of applications therefor and for the issuance of licenses thereon by the necessary officer. (Rev. Ord. 1952, Comp. 1941, p. P-33)
A. First License: Application for a license shall be made in writing to the city clerk on a form to be approved by the city council, and shall be verified by the applicant. Upon receipt of the application and payment of the fee prescribed by this article, the city council shall cause the application to be examined and investigated. The application shall contain the following information:
1. A description of the place where the closing-out sale is to be held.
2. The nature of the occupancy of the premises, whether by ownership, lease or sublease.
3. The effective date of the termination of the occupancy.
4. The means to be employed in publishing the sale.
5. The proposed language to be used in the advertisements to indicate the nature of the sale.
6. A statement of the intention of the applicant for the license in holding the sale.
7. A statement in what manner the descriptive name for the sale is, in fact, descriptive of the sale.
8. A statement as to whether or not any merchandise of any kind, quantity or description has been purchased by or delivered to the applicant for the purpose of being included in the sale.
9. A statement that applicant agrees not to purchase or accept delivery of any merchandise, goods or wares of any kind, nature or description to be sold at the sale after the date of the application.
B. Renewal License: Any licensee who desires a renewal license pursuant to this article shall make application for the renewal license in writing to the city clerk on a form to be approved by the city council, and which shall be verified by the licensee. The application shall contain the following information:
1. A description of the place where the closing-out sale is to be held.
2. The nature of the occupancy of the premises, whether by ownership, lease or sublease.
3. The effective date of termination of the occupancy.
4. The means to be employed in publishing the sale.
5. The proposed language to be used in the advertisements to indicate the nature of the sale.
6. A statement of the intention of the applicant in holding the sale.
7. A statement in what manner the descriptive name is, in fact, descriptive of such sale.
8. A statement as to whether or not any merchandise of any kind, quantity or description has been purchased by or delivered to the applicant for the purpose of being included in the sale.
9. A statement that the applicant agrees not to purchase or accept delivery of any merchandise, goods or wares of any kind, nature or description to be sold at the sale after the date of the application.
10. The approximate proportion of the original inventory on hand at the time of commencing the sale that still remains on hand and unsold. (Rev. Ord. 1952, Comp. 1941, p. P-33)
A. Surety Bond Prerequisite: Before a license shall be issued by the city council, the applicant for the license shall execute and deliver to the city a bond in the penal sum of one thousand dollars ($1,000.00) signed by the applicant, and also signed by a surety company duly authorized to transact business in the state, which bond shall be conditioned upon the faithful observance of the provisions of this article, and also conditioned to reimburse and indemnify any purchaser at the closing-out sale held by the applicant for any loss incurred or damage sustained by the purchaser by reason of misrepresentation or fraud in the sale of any such goods, wares or merchandise.
B. Required Findings: If, upon investigation, the facts as represented by the application for the license are found to conform to the representations on the application; if the reason given for the sale is satisfactory; if there appears to have been no stockpiling of merchandise for sale; there has been no fraud or deception in the application; and the advertisements proposed to be used truly represent the facts and are not fraudulent or misleading to the public, the city council may issue a license permitting the publication and conduct of the sale.
C. Term Of License:
1. A license shall be valid for a period not exceeding sixty (60) days, except that upon satisfactory proof by the licensee that the stock on hand at the time of the original application has not been disposed of, upon proper application, the city council shall cause the same to be examined and investigated; and if it is satisfied as to the truth of the statements contained in the renewal application, the city council may issue a renewal license for one or more consecutive periods of thirty (30) days duration upon payment of the renewal fees therefor.
2. Upon the termination of the closing-out sale, no license shall be issued to the licensee applicant for the period of one year from the closing-out sale.
D. License And Stock List Displayed: Upon commencement of closing-out sale, the license shall be permanently displayed near the entrance to the premises. A duplicate original of the application for the license, and the stock list pursuant to which a license was issued, shall at all times be available to the city council or to the inspector, and the licensee shall permit the inspector to examine all merchandise on the premises for comparison with the stock list at any and all times during the period of the sale.
E. Advertisements: All advertisements or advertising, and the language contained therein, shall be in accordance with the purpose of the sale as stated in the application pursuant to which the license was issued, and the wording of the advertisement shall not vary from the wording as indicated in the application. The advertising shall contain a statement in these words: "Sale held pursuant to License No. of the City of Waterloo, Iowa, granted the day of 20 ;" and in such blank spaces shall be indicated the license number and the requisite dates.
F. Books And Records: Books and records of the sale shall be kept by the licensee and shall at all times be available to the inspector. (Rev. Ord. 1952, Comp. 1941, p. P-33)
Loading...