CHAPTER 131

CLOSING OUT SALES

131.01    DEFINITIONS. Unless the context clearly indicates a different meaning, the terms defined in this section have the meanings herein ascribed to them:

1. “Closing out sale” means 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 such sale is anticipatory to the termination, closing, liquidation, revision, windup, discontinuance, moving, conclusion or abandonment of the business in connection with such sale. It also includes any sale advertised, either specifically or in substance to be an “adjustment sale,” a “creditor’s sale,” “trustee’s sale,” “bankrupt sale,” an “insolvent sale,” “insurance salvage sale,” a “mortgage sale,” an “assignee sale,” “adjuster’s sale,” a “receiver’s sale,” “loss of lease sale,” “forced out of business sale,” “going out of business sale” or “removal sale” and any and all sales advertised in such 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 locations.

2. “Inspector” means the person so designated by the Council.

3. “License” means a license issued under this chapter.

4. “Licensee” means any person to whom a license has been issued under this chapter.

5. “Publish,” “publishing,” “advertisement” and “advertising” include any and all means of conveying to the public notice of sale or notice of intention to conduct a sale, whether by word of mouth, newspaper advertisement, magazine advertisement, handbill, circular, pamphlet, written notice, printed notice, printed display, billboard display, poster, radio announcement, radio program, recordings or any and all means including oral, written or printed.

131.02    LICENSE REQUIRED. No person may publish or conduct any sale of the types defined in Section 131.01 without a license therefor, duly issued in accordance with the provisions of this chapter.

131.03    EXEMPTIONS. The provisions of this chapter do not apply to or affect the following persons or sales:

1. Persons acting pursuant to an order or process of a court of competent jurisdiction;

2. Persons acting in accordance with their powers and duties as public officers, such as sheriffs, bailiffs or marshals;

3. Executors, guardians, assignees of insolvent debtors, bankrupts or other persons required by law to sell such property.

131.04    APPLICATION FOR LICENSE. Application for the license required by this chapter shall be made in writing to the Clerk, and shall be verified by the applicant. Such application shall contain the following information:

1. A description of the place where the sale is to be held;

2. The nature of the occupancy, 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 advertisement to indicate the nature of the sale;

6. A statement of the intention of the applicant in holding the sale;

7. A statement of the manner in which the descriptive name is truthfully 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 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. A statement of the total inventory cost price of all the items to be offered for sale.

131.05    EXAMINATION; INVESTIGATION. Upon receipt of an application for a license and payment of the fee prescribed in this chapter, the Clerk shall cause the application to be examined and investigated.

131.06    ISSUANCE OF LICENSE. If, upon investigation, the facts as represented by the application for a license are found to conform to the representations thereof, the reason given for the sale is satisfactory, there appears to have been no stockpiling of merchandise for such closing out sale, there has been no fraud or deception in the application, and the advertisements proposed to be used truly represent such facts and are not fraudulent or misleading to the public, the Clerk may issue a license permitting the publication and conduct of such closing out sale.

131.07    DURATION OF LICENSE; RENEWAL. The license required by this chapter shall be 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 Clerk shall cause the same to be examined and investigated, and if satisfied as to the truth of the statements therein contained, the Clerk may issue a renewal license for one or more consecutive periods of thirty days’ duration upon payment of the prescribed renewal fees therefor. Upon the termination of such sale, no such license may be issued to the applicant for a period of one year from such termination sale.

131.08    APPLICATION FOR RENEWAL OF LICENSE. Any licensee who desires a renewal license shall make application for such renewal license in writing to the Clerk. Such application shall be verified by the licensee.

131.09    VIOLATION; REVOCATION OF LICENSE. If at any time during the progress of any closing out sale the Clerk determines that any of the provisions of this chapter are being violated by the licensee, the Clerk may immediately revoke the license granted under this chapter.

131.10    FALSE STATEMENTS IN APPLICATION. If at any time during the progress of any closing out sale, the Clerk determines that any of the statements made in the application for a license were untrue, the Clerk may immediately revoke the license granted under this chapter.

131.11    SALES AFTER REVOCATION. It is unlawful for any person to continue a closing out sale after the license for such sale has been revoked, until a new license has been issued in accordance with this chapter.

131.12    BOND REQUIRED. Before a license to conduct a closing out sale is issued by the Clerk, the applicant shall execute and deliver to the City a bond in the penal sum of one thousand dollars ($1,000.00) for the period of one year beginning with the starting date of the license period. The bond must be signed by the applicant and also signed by a surety company duly authorized to transact business in the State. Such bond shall be conditioned upon the faithful observance of the provisions of this chapter, and also conditioned to reimburse and indemnify any purchaser at any such sale, for any loss incurred or damage sustained by such purchaser by reason of misrepresentation or fraud in the sale of any such goods, wares or merchandise.

131.13    LICENSE FEE. Upon filing an original application or a renewal application for a license to advertise and conduct a closing out sale, the applicant shall pay a license fee as established by resolution of the Council.

131.14    LICENSE DISPLAY. Upon commencement of any closing out sale, the license issued by the Clerk shall be permanently displayed near the entrance to the premises.

131.15    DUPLICATE APPLICATION. A duplicate of the original of the application for a license to conduct a closing out sale and the stock list pursuant to which such license was issued shall at all times be available to the Clerk or to the inspector, and the licensee shall permit the inspector to examine all merchandise in the premises for comparison with such stock list at any and all times during the period of such sale.

131.16    FALSE, MISLEADING ADVERTISING. It is unlawful for a licensee to advertise or cause to be advertised goods, wares or merchandise for a closing out sale which do not conform to the representations of the advertisement. No licensee may publish, or cause to be published, advertising falsely representing the reason for such sale.

131.17    ADDING STOCK TO MERCHANDISE. It is unlawful for any person publishing or conducting a closing out sale to purchase or add any goods to the stock of goods offered for sale, either during the sale or during the effective period of the license or to sell any goods at such sale except those on hand at the time of applying for such license.

131.18    ENFORCEMENT; DUTIES OF CLERK. The Clerk shall supervise and regulate closing out sales defined in Section 131.01 and issue appropriate licenses upon the proper application therefor. The Clerk shall provide for the investigation of applications and for the issuance of licenses required by this chapter by the necessary officers.

131.19    PENALTY. Any person violating any of the provisions of this chapter shall, upon conviction, be subject to the penalties set forth in Section 1.14 of this Code of Ordinances.