Editor's Note: For State Statute authorizing a municipality to license and regulate forced sales or going-out-of-business sales, see N.J.S. 40:52-1(j) and N.J.S.A. 40:52-2.
[R.O. 1966 § 8:5-1]
This chapter is enacted for the purpose of raising revenue and for the regulation and control of certain kinds of sales of merchandise.
[R.O. 1966 § 8:5-2]
As used in this chapter:
CLOSE-OUT SALE
Shall mean and includes a sale of goods held or to be held in such a manner as to cause the public reasonably to believe that: (1) the sale will offer goods damaged or altered by fire, smoke, water or other means; or (2) upon the disposal of the stocks of goods on hand, the business will cease and be discontinued; or (3) that the person conducting the sale will cease and discontinue the business at the place of sale upon disposal of the stock of goods on hand and will then move and resume business at a new location in the City and will then continue business from other existing locations in the City. Included among such close-out sales, but not by way of limitation, are sales known and commonly referred to as: adjustor's sales; adjustment sales; administrator's sales; alterations sales; assignee's sales'; bankrupt sales; bankrupt stock sales; benefit of administrator's sales; benefit of creditor's sales; benefit of trustee's sales; building coming down sales; closing sales; creditor's committee sales; creditor's sales; end sales; executor's sales; final days sales; fire and other altered goods sales; forced out sales; forced out of business sales; going out of business sales; insolvent's sales; insurance or insurance salvage sales; last days sales; lease expires sales; liquidation sales; loss of lease sales; mortgage sales; receiver's sales; removal of business sales; reorganization sales; selling-out sales; trustee's sales; quitting business sales.
DIRECTOR
Shall mean the Director of Licenses in the Department of Finance and/or his designee.
GOODS
Shall mean and include any goods, wares, merchandise or other property capable of being the object of a sale regulated under this Article.
[R.O. 1966 § 8:5-3]
No person shall advertise, represent, display, sell or offer to sell or conduct any sale held out to be a close-out sale by any means, directly or indirectly, without first obtaining a close-out sale license from the Director as hereinafter provided.
[R.O. 1966 § 8:5-4]
The provisions of this chapter shall not apply to:
a. 
Any sale which is or is to be held under a judicial order, judgment or writ issuing out of any court or to enforce any lawful lien or power of sale whether by judicial process or not; or
b. 
Sheriffs, constables or other public or court officers, or to any other person acting under the direction of any court selling goods in the course of their official duties; or
c. 
Duly licensed auctioneers selling at auction; or
d. 
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.
CROSS REFERENCE: For licensing and regulation of auctioneers, see Section 8:1-1 et seq. of these Revised General Ordinances.
[R.O. 1966 § 8:5-5]
a. 
Any person who desires to conduct a sale regulated by this chapter shall make a written application to the Director setting forth and containing the following information:
1. 
The name and address of the owner of the goods to be sold;
2. 
The name and address of the person from whom the owner purchased the goods to be sold and the price therefor, or, if not purchased, the manner of such acquisition;
3. 
A description of the place where such sale is to be held;
4. 
The nature of the occupancy, whether by lease or sub-lease and the effective date of termination of such occupancy;
5. 
The dates during which the sale is to be conducted;
6. 
A full and complete statement of the facts in regard to the sale, including the reason for the urgent and expedient disposal of goods and the manner in which the sale will be conducted;
7. 
The means to be employed in advertising such sale together with the proposed content of any advertisement;
8. 
A complete, accurate and detailed inventory of the goods to be sold at such sale as disclosed by the applicant's records together with the cost price thereof. The inventory shall be attached to and become a part of the required application. All goods included in such inventory shall have been purchased by the applicant for a license 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 hereunder. Any unusual purchase or addition to the stock of goods of the business within 60 days before the filing of an application shall be deemed to be goods ordered in contemplation of a sale.
b. 
The application and the inventory attached thereto shall be filed by the person seeking the license or by his authorized resident agent. The applicant or such agent shall swear or affirm that the information therein given is full and true and known by him or such agent to be so.
[R.O. 1966 § 8:5-6]
a. 
The Director may, in his discretion, verify the details of an inventory filed for the purpose of obtaining a closing-out sale license, or he may make a check and verify the items of merchandise sold during the sale.
b. 
No person to whom a close-out sale license has been issued shall fail or refuse to give the Director, or any other person designated by him for that purpose, all the facts connected with the stock on hand or the proper information of goods sold, or any other information that he may require in order to make a thorough investigation of all phases connected with the sale.
[R.O. 1966 § 8:5-7]
Any person who has not owned the business described in the license application for a period of at least one year prior to the date of the proposed sale shall not be granted a license. This requirement shall not apply to the personal representatives, heirs, devicees or legatees of any person who dies while in business in the City.
CROSS REFERENCE: Transient merchants and itinerant vendors are licensed and regulated by Section 8:15-1 et seq. of these Revised General Ordinances.
[R.O. 1966 § 8:5-8]
a. 
Upon approval by the Director, a license shall be issued to the applicant providing the prescribed license fee shall have been paid.
b. 
The license shall authorize the sale described in the application for a period of 10, 20 or 30 days, at the option of the applicant, but in no event shall the license be issued for a period of more than 30 days.
[R.O. 1966 § 8:5-9]
The license referred to herein shall be conspicuously displayed at all times at the place designated in the application for such license.
[R.O. 1966; R.O. 1966 C.S. 8:5-10; Ord. 6 PSF-D, 8-3-2016 § 4]
The fee for licenses issued under this Chapter shall be as follows:
a. 
For a period not exceeding 10 days: $200.
b. 
For a period not exceeding 20 days: $400.
c. 
For a period not exceeding 30 days: $600.
The license fee shall be payable upon the presentation of the application and shall be returned less the sum of $10 in the event such license is not granted.
[R.O. 1966 § 8:5-11]
a. 
The license shall authorize only the sale of goods described in the inventory attached to the application, and only at the location named in the license.
b. 
The license shall not authorize any person except the designated licensee to engage in business under such license.
[R.O. 1966 § 8:5-12]
Any person who has held a close-out sale regulated under this chapter at the location stated in the application, within one year past from the date of such application, shall not be granted such a license.
[R.O. 1966 § 8:5-13]
Any license issued under this chapter shall not be assignable or transferable from person to person unless the transferee shall comply with all the provisions of this chapter applicable to an original application and license, and unless the transfer is approved by the Director and payment of a transfer fee in the sum of 10% of the original license fee is made.
[R.O. 1966 § 8:5-14]
No person shall:
a. 
Sell, offer or expose for sale at any such sale, or list on such inventory, any goods, wares or merchandise which are not the regular stock of the store or other place, the business of which is to be closed out by such sale; or
b. 
Make any replenishments or additions to such sock for the purposes of such sale, or during the time thereof; or
c. 
Fail, neglect or refuse to keep accurate records of the articles or things sold, from which records the Director may ascertain the kind and quantity or number sold.
[R.O. 1966 § 8:5-15]
Pending a hearing, a license may be suspended for not more than two weeks by the Director upon probable cause being shown that the license should be revoked. The Director shall have the power to make such investigations as he may deem necessary in carrying out the provisions of this chapter in relation to suspension or revocation of licenses.
[R.O. 1966 § 8:5-16]
A license issued under this chapter may be revoked by the Director for the violation of the terms of the license or falsification in applying for the license, or when, in the opinion of the Director, the business so licensed is conducted in a manner contrary to law or to public morals or to the public health or to the safety of the life or limb of the public. Before a license is revoked, the licensee shall be accorded a hearing before the Director upon at least two days' notice, in writing.
[R.O. 1966 § 8:5-17]
Nothing in this chapter contained shall be construed to relieve any person from complying with the health and sanitation regulations and provisions of these Revised General Ordinances relating to the manufacture, sale, distribution or handling of food, food products or merchandise.
CROSS REFERENCE: For provisions concerning food, drugs and cosmetics, see Title XIII of these Revised General Ordinances. For miscellaneous health and sanitation provisions, see Title XVI of these Revised General Ordinances.
[R.O. 1966 § 8:5-18]
Any person who violates any provision of this chapter shall, upon conviction thereof, be punished by a fine not exceeding $500 or by imprisonment for a term not exceeding 90 days, or both. A separate offense shall be deemed committed on each day during or on which a violation occurs or continues.