[HISTORY: Adopted by the Borough Council of the Borough of Paramus 5-14-1969 by Ord. No. 608 (Ch. 8, Art. 2, of the 1969 Code). Amendments noted where applicable.]
Display of merchandise — See Ch. 295.
As used in this chapter, the following terms shall have the meanings indicated:
- CLOSE-OUT SALE
- Includes a sale of goods held or to be held in such a manner as to cause the public reasonably to believe that the sale will offer goods damaged or altered by fire, smoke, water or other means; that upon the disposal of the stocks of goods on hand, the business will cease and be discontinued; or 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 Borough and will then continue business from other existing locations in the Borough. 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"; "alteration 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"; and "quitting business sales."
- Includes any goods, wares, merchandise or other property capable of being the object of a sale regulated under this chapter.
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 Borough Clerk as hereinafter provided.
The provisions of this chapter shall not apply to:
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;
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;
Duly licensed auctioneers selling at auction; or
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.
Any person who desires to conduct a sale regulated by this chapter shall make a written application to the Borough Clerk setting forth and containing the following information:
The name and address of the owner of the goods to be sold.
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.
A description of the place where such sale is to be held.
The nature of the occupancy, whether by lease or sublease, and the effective date of termination of such occupancy.
The dates during which the sale is to be conducted.
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.
The means to be employed in advertising such sale, together with the proposed content of any advertisement.
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 10 days before the filing of an application shall be deemed to be goods ordered in contemplation of a sale.
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.
The Borough Clerk may, in his discretion, request the Chief of Police to verify the details of an inventory filed for the purpose of obtaining a close-out sale license, and he may request a check to verify the items of merchandise sold during the sale.
No person to whom a close-out sale license has been issued shall fail or refuse to give the Chief of Police 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.
Any person who has not owned the business described in the license application for a period of at least six months prior to the date of the proposed sale shall not be granted a license. This requirement shall not apply to the personal representatives, heirs, devisees or legatees of any person who dies while in business in the Borough.
The fee for licenses issued under this chapter shall be as follows:
The Borough Clerk shall, subject to approval by the Mayor and Council, renew a license for one period of time only, such period to be in addition to the 30 days permitted in the original license and not to exceed 30 consecutive days, Sundays and holidays excluded, when he finds that:
Facts exist justifying the license renewal.
The licensee has filed an application for renewal.
The licensee has submitted with the application for renewal 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.
For the purposes of this section, any application for a license under the provisions of this chapter covering any goods previously inventoried as required hereunder shall be deemed to be an application for renewal, whether presented by the original applicant or by any other person.
The license referred to herein shall be conspicuously displayed at all times on the window of the premises where the sale is to be held so that it is clearly visible from the exterior of said premises.
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.
The license shall not authorize any person except the designated licensee to engage in business under such license.
Where a person applying for a license hereunder 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. No store or branch conducting the licensed sale shall advertise or represent that any other store or branch is cooperating with it or participating in any way in the licensed sale.
Any license issued under this chapter shall not be assignable or transferable.
[Amended 4-11-1995 by Ord. No. 95-11]
Any person who has held a close-out sale regulated under this chapter at the location stated in the application within two years from the date of such application shall not be granted such a license.
The provisions of this chapter are intended to augment and be in addition to the provisions of other applicable licensing ordinances of the Borough. Where this chapter imposes a greater restriction upon persons, premises, businesses or practices than is imposed by any other licensing ordinance of the Borough, then this chapter shall control.
Upon being issued a license hereunder for a close-out sale, the licensee shall surrender to the Borough Clerk 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.
Every licensee shall:
Make no additions whatsoever during the period of the licensed sale to the stock of goods set forth in the inventory attached to the application for license.
Refrain from employing any untrue, deceptive or misleading advertising.
Conduct the licensed sale in strict conformity with any advertising or holding out incident thereto.
Keep available at the place of sale:
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 person shall 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.
[Amended 11-24-1992 by Ord. No. 92-23; 3-14-2006 by Ord. No. 06-2]
Any person who violates any provision of this chapter shall, upon conviction, be subject to the penalties provided by § 1-15 of this Code. A separate offense shall be deemed committed on each day during or on which a violation occurs or continues.