[HISTORY: Adopted by the Village Board of the Village of
Hobart as indicated in article histories. Amendments noted where applicable.]
GENERAL REFERENCES
Direct sellers — See Ch. 142.
[Adopted as § 3.819 of the 2000 Code]
No person shall conduct a "closing out" sale of merchandise
in the Village except as hereinafter provided.
Every person shall obtain a Village "closing-out sale license"
before retailing or advertising for retail any merchandise represented
to be merchandise of a bankrupt, insolvent, assignee, liquidator,
adjuster, administrator, trustee, executor, receiver, wholesaler,
jobber, manufacturer, or of any business that is in liquidation, that
is closing out, closing or disposing of its stock or a particular
part or department thereof, that has lost its lease or has been or
is being forced out of business, that is disposing of stock on hand
because of damage by fire, water, smoke or other cause, or that for
any reason is forced to dispose of stock on hand. This license shall
be obtained in advance if the advertisement or representation, expressed
or implied, tends to lead people to believe that this sale is a selling
out or closing out sale.
Every person requiring a "closing-out sale license" shall make
an application in writing to the Village Clerk-Treasurer on the form
provided by the Clerk-Treasurer and attach thereto an inventory containing
a complete and accurate list of the stock of merchandise on hand to
be sold at such sale and an affidavit by the applicant or his duly
authorized agent that the inventory is true and correct to the knowledge
of the person making such affidavit. The affidavit shall include the
names and addresses of the principals, such as the partners, officers
and directors and the principal stockholders and owners of the business,
and of the inventoried merchandise.
A.
The inventory shall contain the cost price of the articles listed
therein, together with the date of purchases and the identity of the
seller. If the merchandise was purchased for a lump sum or other circumstances
make the listing of the cost price for each article impracticable,
the inventory shall state the lump sum paid for such merchandise and
the circumstances of the purchase.
B.
The application shall also specify the name and address of the applicant
and, if an agent, the person for whom he is acting as an agent, the
place at which the sale is to be conducted and the period of time
the proposed sale is to take place. The license shall specify the
period for which it is granted, which shall not exceed 60 successive
days, Sundays and legal holidays excepted, from the date of the license.
A.
The period of time that a sale may be conducted may be extended by
the Village Clerk-Treasurer if, at any time during the term of the
license, a written application for such extension, duly verified by
affidavit of the applicant, is filed by the licensee with the Village
Clerk-Treasurer.
B.
This application shall state the amount of merchandise listed in
the original inventory which has been sold and the amount which still
remains for sale and shall state the time for which an extension is
requested.
C.
No extension shall be granted if any merchandise has been added to
the stock listed in the inventory since the date of the license. The
applicant shall satisfy the Village Clerk-Treasurer by affidavit,
or as otherwise directed by him, that no merchandise has been added
to the stock since the date of issuance of the license.
D.
The Village Clerk-Treasurer may grant or deny the application. If
granted, the period of the extension shall be determined by the Village
Clerk-Treasurer, but shall not exceed 30 days from the expiration
of the original license. If the extension is granted, it shall be
issued by the Village Clerk-Treasurer upon the payment of an additional
license per-day fee, in an amount as set from time to time by resolution
of the Village Board, for the time during which it is granted.[1]
It shall be unlawful to sell, offer or expose for sale at any sale for which a license is required by this chapter any merchandise not listed in the inventory required by § 233-3 herein. Any merchant may, however, in the regular course of business, conduct a "closing out" sale of merchandise and at the same time sell other merchandise, if the merchandise for the sale of which a license is required shall be distinguished by a tag or otherwise so that the "closing out" merchandise is readily ascertainable to prospective purchasers. The merchant shall not label or tag other merchandise in a manner to indicate, or lead a prospective purchaser to believe that such merchandise is of the class or classes for which a license is required. Each article sold in violation of the provisions hereof shall constitute a separate offense, and any false or misleading statement in the required inventory, application or extension application shall constitute a violation of this chapter.
The Village Clerk-Treasurer shall verify the details of the
inventory filed in connection with an application for this license
and shall also verify the items of merchandise sold during any sale
under this chapter. No licensee shall refuse to furnish on demand
to the Village Clerk-Treasurer, or any person designated by him for
that purpose, all the facts connected with the stock on hand or any
other information that he may reasonably require in order to make
a thorough investigation of all phases of the sale, so far as they
relate to the rights of the public.
The fee for such licenses shall be as set from time to time
by the Village Board, based on length of license and price of the
inventory.
This chapter shall not apply to sales by public officers or
sales under judicial process.
