[HISTORY: Adopted by the Common Council of the City of Middletown as indicated in article histories. Amendments noted where applicable.]
Peddling and soliciting — See Ch. 218.
Article I Closing-Out Sales
As used in this article, the following terms shall have the meanings indicated:
- The Middletown City/Town Clerk.
- CLOSING-OUT SALE
- All sales advertised, represented or held forth under the designation of "going out of business," "selling out," "liquidation," "lost our lease," "forced to vacate," "moving to a new location," or any other designation of like meaning.
- MUNICIPAL LICENSE
- A license issued by the City pursuant to this article.
- Any individual, partnership, voluntary association or corporation.
- STATE LICENSE
- A license issued by the Commissioner of Consumer Protection under C.G.S. § 21-35b, as amended.
No person shall conduct a closing-out sale in the City without first obtaining a state license and a municipal license.
No municipal license will be issued until a state license has been issued for the sale by the State Commissioner of Consumer Protection as provided by the General Statutes.
A municipal license for a closing-out sale shall be obtained from the City/Town Clerk.
No municipal license shall be issued for a closing-out sale until all taxes due to the City by the applicant have been paid.
An application for a municipal license for a closing-out sale shall contain the following information:
The names and business and residence addresses of the persons to be licensed, including, if a partnership, all partners and, if a corporation, all officers and directors thereof.
The names and business and residence addresses of the agent and owner of the merchandise to be sold under the license if the applicant is acting as an agent of the owner.
An inventory containing a complete and accurate list of the merchandise to be sold, including a description and the value of each article. The inventory shall have an affidavit attached and shall state that it is accurate to the best of the knowledge and information of the applicant.
The location (or locations) at which the sale is to be conducted.
The date and hours during which the sale is to be held.
A license fee shall be paid in accordance with the following schedule:
For a period not exceeding 15 days: $50.
For a period not exceeding 30 days: $100.
For a period not exceeding 60 days: $150.
For a period not exceeding 90 days: $200.
Upon such payment and proof of payment of all other license fees, if any, chargeable upon local sales, the City/Town Clerk shall record the state license of such vendor in full, shall endorse thereon the words "local license fees paid" and shall affix thereto his official signature and the date of such endorsement.
If an extension of 60 days or less is granted under the state license beyond a ninety-day period, the licensee shall submit a revised inventory showing the items listed on the original inventory remaining unsold and not listing any goods not included in the original application and inventory to the City/Town Clerk. The payment of an additional license fee of $5 per day for the period of such extension is required.
The license issued by the City/Town Clerk shall remain in force as long as the licensee keeps and exposes for sale such stock of goods, wares or merchandise, but not later than the first day of October following its date of issuance or the date the state license expires, whichever occurs first.
Upon receipt of an affidavit(s) sworn to under oath with any supporting documentation that conditions or practices exist at a closing-out sale which are in violation of any provision of this article or other applicable law, the City/Town Clerk shall forward to the licensee a copy of the affidavit(s) and any supporting documentation and ask for an explanation, which explanation shall be mailed within one business day of receipt of the City/Town Clerk's notice. Unless established otherwise, it shall be presumed that the licensee received the City/Town Clerk's letter and supporting documentation within two business days from the date of mailing.
The licensee shall be advised by the City/Town Clerk of the right to request a hearing within one business day of receipt of the letter. Failure to request a hearing shall be deemed to be a waiver of a hearing by the licensee. If no written explanation is received by the City/Town Clerk or no request for a hearing is made or if the explanation is determined not to be acceptable, the license will be revoked until the licensee complies with the directive of the City/Town Clerk. Said determination of compliance shall be made by the City/Town Clerk.
If a hearing is requested by the licensee, a hearing shall be held within two business days of the request before the City/Town Clerk. After said hearing, the City/Town Clerk shall determine, within two business days, whether the licensee's license should be revoked.
Any person whose license has been revoked by the City/Town Clerk shall immediately cease the closing-out sale.
Each licensee shall post at least two notices at the place of sale, one of which shall be at an entrance, plainly visible to customers, stating that a state license has been obtained for the sale, that a sum of money is on deposit with the State Commissioner of Consumer Protection, the current address and phone number of that office, and that such deposit shall be held by the Commissioner to satisfy claims against the licensee made in connection with the sale as provided by state statute until 60 days after surrender of the state license to the Commissioner.
No goods, wares or merchandise other than those listed in the inventory required to be filed by this article to obtain a municipal license shall be included in any closing-out sale.
No sale shall continue beyond a reasonable date to be specified in the required application, except that an extension may be authorized upon proper showing of need, such extension being contingent on the submitting of a revised inventory showing the items listed on the original inventory remaining unsold and not listing any goods not included in the original application and inventory.
No person shall, in contemplation of a closing-out sale under a municipal license, order any goods, wares or merchandise for the purpose of selling and disposing of the same at such sale, and any unusual purchases and additions to the stock of such goods, wares or merchandise within 60 days prior to the filing of an application for a license to conduct such sale shall be presumptive evidence that such purchases and additions to stock were made in contemplation of such sale.
No person shall, upon conclusion of a closing-out sale, continue that business which has been represented as terminal, under the same name, or under a different name, at the same location.
Nothing in this article shall apply to acts done by the publisher, owner, agent or employee of a newspaper or periodical or radio or television station in the publication or dissemination of any advertisement where such publisher, owner, agent or employee does not have actual knowledge of the false, misleading or deceptive character of the advertisement.
The provisions of this article shall not apply to or affect sales or persons conducting such sales pursuant to an order or process of a court of competent jurisdiction or to any sheriff, constable or other public or court officer or to any other person acting under the license, direction or authority of any state or federal court selling goods, wares or merchandise in the course of his official duties or to "end of the season" sales or to sales limited to closing out a particular brand or line of goods.
Any person who shall advertise, hold, conduct or carry on any sale of goods, wares or merchandise at a closing-out sale as defined in § 241-1 in violation of any of the provisions of this article shall be fined not more than $100 for each day any such violation occurs or continues.