CHAPTER 15.
GOING-OUT-OF-BUSINESS AND SIMILAR SALES.

§15-1    Definitions.

§15-2    Applicability of Chapter.

§15-3    License -- required.

§15-4    Same -- application.

§15-5    Same -- fee.

§15-6    Same -- restrictions on issuance.

§15-7    Same -- terms and conditions.

§15-8    Inventory restrictions.

§15-9    Duties and responsibilities of licensees.

Sec. 15-1. Definitions.

For the purposes of this Chapter, the following words and phrases shall have the meanings respectively ascribed to them by this Section:

Fire and other altered good sale. A sale held out in such a manner as to reasonably cause the public to believe that the sale will offer goods damaged or altered by fire, smoke, water or other means.

Going-out-of-business sale. A sale held out in such a manner as to reasonably cause the public to believe that upon the disposal of the stock of goods on hand the business will cease and be discontinued, including but not limited to the following sales:

Adjuster’s

Adjustment

Alteration

Assignee’s

Bankrupt

Benefit of administrator’s

Benefit of creditor’s

Benefit of trustees

Building coming down

Closing

Creditor’s committee

Creditor’s

End

Executor’s

Final days

Forced out

Forced out of business

Insolvent’s

Last days

Lease expires

Liquidation

Loss of lease

Mortgage

Receiver’s

Trustee’s

Quitting business

Any sale advertised as disposing of all or substantially all of the goods and wares of a business shall be rebuttably presumed to be for the purpose of going out of business.

Goods. Any goods, wares, merchandise or other property capable of being the object of a sale regulated in this Chapter.

Removal of business sale. A sale held out in such a manner as to reasonably cause the public to believe that the person conducting the sale will cease and discontinue business at the place of sale upon disposal of the stock of goods on hand and will then move to and resume business at a new location in the City or will then continue business from other existing locations in the City.

Sec. 15-2 Applicability of Chapter.

(a)    The provisions of this Chapter are intended to augment and be in addition to the provisions of Chapter 19 of this Code. Where this Chapter imposes a greater restriction upon persons, premises, business or practices than is imposed by Chapter 19, this Chapter shall control.

(b)    The provisions of this Chapter shall not apply to or affect the following persons:

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 officials.

3.Duly licensed auctioneers, selling at auction.

4.Any publisher of a newspaper, magazine or other publication who publishes in good faith any advertisement, without knowledge of its false, deceptive or misleading character, or without knowledge that the provisions of this Chapter have not been complied with.

Sec. 15-3 License -- Required.

A license issued by the Finance Director shall be obtained by any person before selling or offering to sell any goods at a sale to be advertised or held out by any means to be one of the following kinds:

(a)    Going-out-of-business sale.

(b)    Removal of business sale.

(c)    Fire and other altered stock sale.

Sec. 15-4 Same -- application.

A person desiring to conduct a sale regulated by this Chapter shall make a written application to the Finance Director setting forth and containing the following information:

(a)    The true name and address of the owner of the goods to be the object of the sale.

(b)    The true name and address of the person from whom he purchased the goods to be sold and the price therefor, and if not purchased, the manner of such acquisition.

(c)    A description of the place where such sale is to be held.

(d)    The nature of the occupancy, whether by lease or sublease, and the effective date of termination of such occupancy.

(e)    The dates of the period of time in which the sale is to be conducted.

(f)    A full and complete statement of the facts in regard to the sale, including the reason for the urgent and expeditious disposal of goods thereby and the manner in which the sale will be conducted.

(g)    The means to be employed in advertising such sale together with the proposed content of any advertisement.

(h)    A complete and detailed inventory of the goods to be sold at such sale as disclosed by the applicant records. Such inventory shall be attached to and become a part of the required application.

Sec. 15-5 Same -- fee.

Any applicant for a license under this Chapter shall submit with his application therefore fees for the following periods:

(a)    On initial application, for a period of 30 days.

(b)    On application for renewal, for a period not to exceed 30 days.

(c)    For renewal beyond 60 days, but not to exceed 90 days.

Fee amounts for the above application and renewal periods shall be set by resolution.

Sec. 15-6 Same -- restrictions on issuance.

(a)    Any person who has held a sale regulated by this Chapter at the location stated in the application for a license therefor within one year last past from the date of such application shall not be granted a license.

(b)    Any person who has not been the owner of a business advertised or described in the application for a license under this Chapter for a period of at least 12 months prior to the date of the proposed sale shall not be granted a license.

(c)    Upon the death of a person doing business in this City, his heirs, devisees or legatees shall have the right to apply at any time for a license under this Chapter.

(d)    Where a person applying for a license under this Chapter operates more than one place of business, the license issued shall apply only to the one store or branch specified in the application and no other store or branch shall advertise or represent that it is cooperating with it, or in any way participating in the licensed sale, nor shall the store or branch conducting the licensed sale advertise or represent that any other store or branch is cooperating with it participating in any way in the licensed sale.

Sec. 15-7 Same -- terms and conditions.

A license under this Chapter shall be issued on the following terms:

(a)    Initial license. The license shall authorize the sale described in the application for a period of 30 consecutive days, Sundays and legal holidays excluded following the issuance thereof.

(b)    Renewal. The Finance Director may, on application as provided in this Chapter, renew a license for an additional period of 30 consecutive days, Sundays and holidays excluded. The Finance Director may renew such license for any number of days not to exceed 30 days at the expiration of the first renewal. In no event may any sale continue for a period in excess of 90 consecutive days, excluding Sundays and holidays, from the date of initial issuance of the license.

The application for renewal shall contain a revised inventory showing the items listed on the original inventory and not listing any goods not included in the inventory filed with the original application.

(c)    Nature of sale. The license shall authorize only the one type of sale described in the application at the location named therein.

(d)    Saleable goods. The license shall authorize only the sale of goods described in the inventory attached to the application.

(e)    Surrender of general license. Upon being issued a license for a going-out-of-business sale, the licensee shall surrender to the Finance Director all other business licenses he may hold at that time applicable to the location and goods covered by the application for a license under this Chapter.

(f)    Nontransferability. No license shall be assignable or transferable.

Sec. 15-8 Inventory of Restrictions.

All goods included in the inventory for a sale under this Chapter shall have been purchased by the licensee for resale on bona fide orders without cancellation privileges and shall not comprise goods purchased on consignment.

Such inventory shall not include goods ordered in contemplation of conducting a sale regulated under this Chapter.

Any unusual purchase, or additions, to the stock of goods of the business within ten days before the filing of an application for such license shall be deemed to be of such character.

Sec. 15-9 Duties and Responsibilities of Licensees.

A licensee under this Chapter shall adhere to the following requirements:

(a)    No additions whatsoever shall be made during the period of the licensed sale to the stock of goods set forth in the inventory attached to the application for such license.

(b)    He shall refrain from employing any untrue, deceptive or misleading advertising.

(c)    The licensed sale shall be conducted in strict conformity with any advertising or holding out incident thereto.

(d)    He shall keep available at the place of sale a duplicate copy of the inventory submitted with the application and shall present such duplicate to inspecting officials upon request.

(e)    He shall keep any other goods separate and apart from the goods listed in the filed inventory as being objects of sale and shall make such distinction clear to the public by placing tags on all inventoried goods in and about the place of sale apprising the public of the status of all such goods. No noninventoried goods may be sold or offered for sale at or during such sale.