743.06 BOND REQUIRED.

   (a) Every applicant under this chapter shall execute and file with the Mayor a good and sufficient bond in the sum of two thousand five hundred dollars ($2,500) or five percent (5%) of the wholesale value of the inventory as set forth in the application, whichever is greater, with two or more sureties thereon who shall be freeholders within the City, or with the surety thereon a surety company authorized to do business in the State. The bond shall be to the approval of the Law Director, and shall be conditioned upon faithful observance of all the conditions of this chapter and shall also indemnify the purchaser at the public auction, going-out-of-business sale or distress merchandise sale, who suffers any loss by reason of misrepresentation in the sale. The bond shall continue in effect for one year on all claims secured by it.

   (b) The licensee shall notify the Mayor of any suit filed as a result of the operations hereby licensed. Any purchaser, claiming he was damaged by misrepresentation in the auction sale, going-out-of-business sale or distress merchandise sale, may maintain an action at law against the licensee making the misrepresentations, and may join as party defendant the surety or sureties on such bond. (1967 Code §115.22)