729.13 PRACTICES PROHIBITED DURING AND AFTER CLOSING-OUT SALES.

   (a)    No person issued a closing-out sale license shall, during a closing-out sale:

      (1)    Add any goods to the stock described in his inventory filed with his original application;

      (2)    Sell, offer for sale or permit to be offered for sale any goods not listed in the inventory with the representation, expressed or implied, that such goods are being sold or offered for sale at a closing-out sale;

      (3)    Fail to keep any goods not listed in the inventory, separate and apart from the goods listed in the inventory, or fail to make such distinction clear to the public by appropriate tags placed on all inventoried goods in and about the sale apprising the public of the status of all such goods;

      (4)    Fail to tag prominently all goods being offered for sale at a closing-out sale indicating both the true retail price of the goods and the price at which the goods are being offered for sale;

      (5)    Misrepresent or permit to be misrepresented, the true retail price of any goods being offered for sale.

   (b)    No person shall after the termination of a closing-out sale or the revocation of a closing-out sale license, continue or permit to be continued the same business at the same location by any of the following:

      (1)    The licensee or partner of the licensee under this chapter;

      (2)    Any person related to the licensee by blood or marriage;

      (3)    Any stockholder of a corporate licensee;

      (4)    Any subsidiary or parent corporation of a corporate licensee;

      (5)    Any corporation in which the licensee or any person related by blood or marriage to the licensee owns or controls twenty-five percent or more of the stock;

      (6)    Any corporation in which stockholders of the corporate licensee or persons related by blood or marriage to the stockholders own or control an aggregate of twenty-five percent or more of the stock.

   (c)    The Auditor shall have authority to permit the resumption of the same business notwithstanding the provisions of this section when upon application by the licensee hereunder, the licensee satisfies the Auditor that the closing-out sale conducted hereunder and the resumption of the same business after such closing-out sale ceased, was based upon a bona fide change of circumstances beyond the control of the licensee and free of any fraud or misrepresentation.

(Ord. 6-75. Passed 3-18-75.)