[Adopted 2-23-1971 by Ord. No. 1971-2 (Ch. 10, Art. III,
of the 1969 Code of Ordinances)]
It is hereby determined and declared that sales to be licensed
and regulated pursuant to the provisions of this article have often
been conducted and advertised in such a manner as to mislead and defraud
the public and otherwise to result in harm to the public interest.
Such fraud and imposition on the public has included, by way of partial
enumeration only: The misrepresentation of the condition or necessity
which is the occasion of such sale; the misrepresentation of the identity
of the person conducting such sale, and the name and style in which
such sale is to be conducted; the misrepresentation that the goods
offered at such sale are selling at sacrifice prices; the misrepresentation
that the operator of the sale is selling merchandise on hand at the
time when the necessity, which is the occasion of such sale, arose,
when in fact they are replenishing their stock with additional merchandise
both prior to the commencement and during the conduct of such sale
so as to foist upon the public such added merchandise as though it
were part of the original stock; and the excessive valuation and misrepresentation
of the quality, former price and ownership of the goods to be sold
at such sale. In order to prevent such fraud and imposition, the public
interest requires the regulation of such sales and duration and conduct
thereof; and the public interest, therefore requires that no such
sale should be conducted without a license or otherwise in accordance
with this article.
As used in this article, the following terms shall have the
meanings indicated:
CLOSING OUT SALE
Includes, but not be limited to, all sales advertised, represented,
or held forth under the designation of "quitting business," "going
out of business," "discontinuance of business," "closing out," "selling
out," "liquidation," "lost our lease," "must vacate," "forced out,"
"removal," "branch store discontinuance sale," "building coming down,"
"end," "final days," "final clearance," "last days," "lease expires,"
"we give up sale," "we quit sale," "warehouse closing sale," "warehouse
removal sale," "reorganization sale," or any other advertising or
designation by any other expression or characterization similar to
any of the foregoing giving notice to the public that the sale will
precede the abandonment of a business location.
DEFUNCT BUSINESS SALE
Includes, but not be limited to, all sales advertised, represented
or held forth under the designation of "adjuster's sale," "administrator's
sale," "assignee's sale," "bankrupt sale," "bankrupt stock sale,"
"benefit of administrator's sale," "benefit of creditor's sale," "benefit
of trustee's sale," "creditor's committee sale," "creditor's sale,"
"executor's sale," "insolvent sale," "mortgage sale," "receiver's
sale," "trustee's sale," or any other advertising or designation by
any other expression or characterization similar to any of the foregoing
conveying the same meaning or giving notice to the public of a sale
resulting from death, business failure, or other adversity.
LICENSEE
Any person granted a license pursuant to the provisions of
this article.
SALE OF GOODS DAMAGED BY FIRE, SMOKE OR WATER
Includes, but not be limited to, all sales advertised, represented
or held forth under the designation of "fire sale," "smoke damage
sale," "water damage sale," "flood damage sale," "insurance sale,"
or any other advertising or designation by any other expression or
characterization similar to any of the foregoing giving notice to
the public that the goods, wares or merchandise offered for sale have
been damaged.
UNUSUAL PURCHASE OR ADDITION
Any purchase of goods, wares or merchandise during the 90
days preceding the application for a license, the total value of which
is at least 25% greater than the purchases made by the applicant for
a like ninety-day period during the year next preceding the year in
which the application is made or the total value of which is at least
25% greater than the purchases made by the applicant for any ninety-day
period if the applicant has been in business for less than one year.
It shall be unlawful for any person to advertise or hold out
by any means that the sale of any goods, wares or merchandise to the
public is a "closing out sale," "a sale of goods damaged by fire,
smoke or water," or a "defunct business sale."
The provisions of this article shall not apply to any sale advertised
as an "alteration sale," "remodeling sale," "clearance sale," "surplus
stock liquidation sale," "floor sale," "inventory reduction sale,"
"special purchase sale," or any other advertising or designation by
any other expression or characterization similar to any of the foregoing
giving notice to the public that the sale will not precede the abandonment
of a business location, nor shall this article apply to the following
persons:
A. Persons acting pursuant to an order or process of a court of competent
jurisdiction;
B. Persons who are required to file an accounting with a court of competent
jurisdiction;
C. Persons acting in accordance with their powers and duties as public
officers;
D. Any publisher or employee of a newspaper, magazine, or any operator
or employee of a radio or television broadcasting station, who publishes
or broadcasts any such advertisement in good faith without knowledge
of its false, deceptive and misleading character, or without knowledge
that the provisions of this article have not been complied with.
E. Any duly licensed auctioneer, selling at auction;
F. Any insurance corporation, or any association, firm or corporation,
the controlling interest in which is owned by any insurance corporation
or corporations, which, pursuant to the terms of a policy or policies
of insurance, acquires title in or to any goods, wares or merchandise
damaged by fire, smoke, water or otherwise, and which advertises and
sells such goods, wares and merchandise as salvage.
If the applicant for a license hereunder owns, conducts or operates
more than one store, or a warehouse in connection with such store
or stores, the license issued will apply only to the one store or
warehouse for which it was issued, and no other store, branch or warehouse
may advertise or represent in any way that it is cooperating with
or participating in any way in the licensed sale, nor shall a store
licensed pursuant to this article or any person advertise or represent
that any other store or warehouse is cooperating with or participating
in the licensed sale. The licensed sale conducted by any store of
a chain or group of stores shall be conducted solely at the location
of the store for which the license was issued and no goods, wares
or merchandise shall be brought from any other store and placed on
sale at the store licensed pursuant to this article.
A copy of the application for a license to conduct a sale under
this article, including the inventory filed therewith, shall be posted
in a conspicuous place in the sales room or place where the inventoried
goods, wares or merchandise are to be sold, so that the public may
be informed of the facts relating to such goods, wares and merchandise
before purchasing them. Any advertisement or announcement published
in connection with the sale shall conspicuously show on its face the
number of the license, the date of its expiration, and if applicable,
the location where the business is to be resumed.
A license to conduct a sale issued pursuant to this article
shall be good for no more than a period of 30 consecutive calendar
days and may be renewed for one consecutive period not exceeding 30
consecutive calendar days upon the affidavit of the applicant that
the goods, wares and merchandise listed in the inventory have not
been disposed of and that no new goods, wares and merchandise have
been or will be added to the inventory previously filed pursuant to
this article by purchase, acquisition, on consignment or otherwise.
The application for renewal shall be made not more than 10 days prior
to the date of the expiration of the license and shall contain an
inventory of goods, wares and merchandise remaining on hand at the
time the application for renewal is made, which inventory shall be
prepared and furnished in the same manner and form as the original
inventory. The City Clerk shall receive from the applicant for such
license, upon the filing of an application therefor, a fee of $100,
and upon the renewal thereof, a fee of $50. The applicant shall not
be entitled to a refund of the fee paid if said application is denied
or revoked.
Opening of a business similar to the one for which the sale,
licensed pursuant to this article, was conducted, except the licensed
"sale of goods damaged by fire, smoke or water," by the person, partnership,
association, corporation, or partner of a partnership, officer of
an association or principal stockholder of a corporation, who or which
conducted the sale upon the same premises within a period of one year
of the termination of the sale shall constitute a violation of this
article, and every day in which business is conducted within such
period shall constitute a separate violation of this article.
Any person violating any provision of this article shall be
guilty of a misdemeanor punishable by a fine of $500 or imprisonment
for one year or both, and each day upon which any sale is conducted
in violation of this article shall be a separate violation.
If any clause or provision of this article shall at any time
be declared to be unconstitutional, it is the expressed legislative
intent that no other section or provision hereof be thereby affected.