[HISTORY: Adopted by the City Council of the City of Paterson 12-18-1979 by Ord. No. 79-111 as Ch. 9, Art. 6, of the 1979 Revised General Ordinances of Paterson. Amendments noted where applicable.]
GENERAL REFERENCES
Auctions and auctioneers — See Ch. 125.
Bazaars — See Ch. 129.
Garage sales and flea markets — See Ch. 249.
Peddling and soliciting — See Ch. 367.
Secondhand dealers — See Ch. 399.
As used in this chapter, the following terms shall have the meanings indicated:
ADVERTISE, ADVERTISEMENT, ADVERTISING
Includes any and all means of conveying to the public notice of a sale or notice of intention to conduct a sale, and specifically, although not exclusively, includes advertising by outside or inside signs, including billboards, neon or other electrical signs, advertising by radio, television, telephone, newspaper, magazine, book, notice, circular, pamphlet, letter, handbill, poster, placard, card and any and all other means, including oral, written or printed.
CLOSE-OUT SALE
Includes the sale or an offer to sell to the public goods on hand and in stock, in connection with a declared purpose as set forth by advertising that such sale is anticipatory to the termination, closing, liquidation, division, windup, dissolution, conclusion or abandonment of the business in connection with such sale. "Close-out sale" shall also include any sale advertised to be a fire sale, smoke sale, water damage sale or any and all sales advertised in such manner as reasonably to convey to the public that damaged or soiled goods are offered for sale. "Close-out sale" shall also include any sale advertised to be a removal sale, going-out-of-business sale, loss of lease sale or any type of sale so advertised as reasonably to convey to the public that upon the disposal of the stock of goods on hand the person conducting the sale will cease and discontinue business at the place of sale.
GOODS
Includes any goods regulated under this chapter.
The following persons shall be exempt from the provisions of this chapter:
A. 
Persons acting pursuant to an order or process of a court of competent jurisdiction.
B. 
Persons acting in accordance with their powers and duties as public officials.
C. 
Duly licensed auctioneers selling at auction.
No person shall advertise or conduct any close-out sale without first obtaining a close-out sale license, as hereinafter provided in this chapter.
A. 
Any person who desires to conduct a sale regulated by this chapter shall make a written application, under oath, addressed to the Council and filed with the Licensing Division on forms approved by the Council.
B. 
The application shall set forth and contain the following information:
(1) 
The name and address of the owner of the goods to be sold.
(2) 
The applicant's business name and address and the nature of the applicant's interest in said business.
(3) 
A description of the place where such sale is to be held.
(4) 
The nature of the occupancy, whether by lease or sublease, and the effective date of termination of such occupancy.
(5) 
The dates during which the sale is to be conducted.
(6) 
The means to be employed in advertising such sale, together with the proposed content of any advertisement.
(7) 
A full and complete statement of the facts in regard to the sale, including the reason for the urgent and expeditious disposal of goods and the manner in which the sale will be conducted.
(8) 
A complete and detailed inventory of the goods to be sold as required by the provisions of § 395-5 hereof. Said inventory shall be attached to and become a part of the application.
A. 
The inventory shall contain:
(1) 
A description of each article of goods (e.g., by serial number, distinctive markings, size, weight or other description) in such a manner as to be readily identifiable.
(2) 
The quantities thereof.
(3) 
The names and addresses of the person or persons from whom the applicant purchased or otherwise acquired articles of goods within six months prior to the filing of the application.
B. 
All goods included in such inventory shall have been purchased or acquired by the owner thereof for resale on bona fide orders without cancellation privileges and shall not comprise goods purchased or acquired on consignment. Such inventory shall not include goods ordered in contemplation of conducting a sale regulated hereunder and for the purpose of selling said goods at such sale. Any unusual purchase or additions to the stock of goods and of the business within 60 days before the filing of an application shall be deemed to be goods ordered in contemplation of such sale and for the purpose of selling said goods at such sale.
Upon receipt of an application for a license with the required fee, the Licensing Division shall set forth a date on which the Council will hold a public hearing on the application and shall so notify the applicant, in writing, of the date, time and place of such hearing.
A. 
Following the notice of hearing, the applicant shall forthwith cause to be published a notice of his application to obtain a license for a closing-out sale. Said notice shall be published for two consecutive weeks, once a week, prior to the hearing in a daily newspaper published and circulated in the City.
B. 
The notice shall contain the name and address of the owner of the goods to be sold; the object of the sale; the type of sale to be conducted; the general nature of the goods to be sold; and the date, time and place of the public hearing.
C. 
An affidavit of the proof of such publication shall be filed with the Licensing Division prior to consideration of the application by the Council at the public hearing.
As a condition precedent to the granting of a license under this chapter, the applicant shall enter into and deliver to the Licensing Division a bond in favor of the City in the sum of $500 with two responsible freeholders as sureties or, in lieu thereof, a bond of a surety company, authorized to do business under the laws of the State of New Jersey, which bond shall first be approved by the Corporation Counsel as to form and sufficiency. The bond shall be forfeited upon a showing that the applicant has willfully misrepresented any material fact required in the application.
[Amended 10-9-2018 by Ord. No. 18-045]
A. 
The applicant for a license under this chapter shall submit to the Licensing Division a license fee of $250 with his or her application.
[Amended 12-2-2003 by Ord. No. 03-079; 11-9-2010 by Ord. No. 10-058]
B. 
An applicant for a renewal license shall submit to the Licensing Division a renewal license fee of $250 with his renewal application.
[Amended 12-2-2003 by Ord. No. 03-079; 11-9-2010 by Ord. No. 10-058]
C. 
If the application for a license is disapproved by the Council, 50% of the license fee or renewal license fee paid shall be retained by the Licensing Division to defray the cost of investigating the statements in the application, and the balance of the fee shall be returned to the applicant.
No license shall be issued to:
A. 
Any person who, either directly or indirectly and within one year prior to the date of the application, has conducted a sale licensed under this chapter.
B. 
Conduct a sale under this chapter where a similar sale has been held at the same premises within a period of one year from the date of the expiration of the previous license.
C. 
Any person who has not owned the business advertised or described in the application for a period of at least six months prior to the date of the filing of the application, except where:
(1) 
A person who was the owner of the business in the City dies; or
(2) 
The goods, owned by the applicant, have been damaged, destroyed or affected by fire, smoke or water at a time when the goods were physically located in the City.
A. 
After investigation of the application and the public hearing, the Council shall determine whether or not such license shall be granted. If approved, the license shall be issued by the Licensing Division.
B. 
The license granted by the Council shall authorize the sale described in the application for a period of not more than 30 days following the issuance thereof.
A. 
The Council may renew a license for one period of time only, such period not to exceed 30 days, provided that the goods described in the original inventory have not been disposed of and that the provisions of Subsection B hereof have been complied with.
B. 
No less than seven days prior to the expiration of the initial license, the licensee shall submit an application for renewal, in writing and under oath, and attach thereto as a part thereof a revised inventory showing items listed on the original inventory remaining unsold. No goods not shown on the original inventory shall be included.
A. 
The license granted shall authorize the licensee to conduct the sale only on the premises specified in the license.
B. 
If the licensee operates more than one place of business:
(1) 
The license issued shall apply to the one store or branch specified in the application.
(2) 
Such store or branch conducting the licensed sale shall not advertise or represent that any other store or branch is cooperating with it or participating in any way in the licensed sale; nor shall such other store or branch advertise or represent that it is cooperating or participating in any way in the licensed sale.
(3) 
No goods shall be brought from any other store or branch and placed on sale at the store or branch authorized to conduct the licensed sale.
A. 
All advertising shall be descriptive of the nature of the sale as stated in the application therefor. The language in such advertising shall be identical with the advertising content as set forth in the application.
B. 
It shall be unlawful to indicate in any advertising, either directly or indirectly, that the sale is held with the approval of the Council. It shall be lawful, however, for such advertising to contain a statement in the following words and no others:
"Sale held pursuant to License No. ____ of the City Council granted the ____ day of ________________, 19___" and in such blank spaces the license number and applicable date shall be indicated.
C. 
No advertising shall contain any assertion, representation or statement of fact which is untrue, deceptive or misleading.
A. 
A duplicate copy of the filed application, together with a duplicate copy of the filed inventory of the goods, shall be kept at the premises where the sale is being held and shall be available at all times to inspection by the inspectors of the Licensing Division and any person who shall be duly authorized, in writing, for that purpose by the Council. The licensee shall also permit such inspector, investigator or person duly authorized in writing to examine all of the goods on the premises for comparison with said inventory.
B. 
At the close of business each day during the sale, the licensee shall revise the inventory of the goods by indicating thereon the items which have been disposed of during that day.
A. 
The Council may make such rules and regulations, not in conflict with the provisions of this chapter, for the administration and enforcement of this chapter as, in its opinion, will serve to prevent deception and to protect the public.
B. 
The Council may, at any time during the sale, suspend the license and stop said sale upon a prima facie showing that said sale is being conducted in violation of any of the provisions of this chapter. Thereafter, and upon the giving of written notice of suspension, said sale shall not continue unless permission so to do is authorized by the Council following a hearing, upon due notice, as provided in § 395-19.
The licensee shall:
A. 
Make no additions, during the period of the licensed sale, to the stock of goods set forth in the inventory attached to the license application.
B. 
Conduct the licensed sale in strict conformity with any advertising or representation incident thereto.
C. 
Not sell or offer for sale any goods not in the stock listed as a part of the inventory submitted with the application.
D. 
Be limited to the sale of goods described in the inventory submitted with the application.
In addition to the penalty provided in § 395-20, any license may be revoked by the Council, after due notice and hearing, for violation of any of the provisions of this chapter or if the licensee has made any material misstatement in his application. A license may be suspended pending such hearing, as provided in § 395-17B, provided that, within 15 days of written notice of suspension given to the licensee, the licensee shall be granted a hearing before the Council, after which the Council shall determine whether to set aside the suspension or revoke the license. The notice of suspension shall fix the date and time and place of hearing.
[Amended 12-19-1995 by Ord. No. 95-068]
Any person who violates any provision of this chapter shall, upon conviction thereof, be subject to a fine not exceeding $1,000, by imprisonment not exceeding 90 days or by a period of community service for not more than 90 days, or any combination thereof. A separate offense shall be deemed committed on each day during or on which a violation occurs or continues.