§ 14-279. Fraudulent sales.

(a)

Definitions.

(1)

A "going out of business sale" means any sale, whether described by such name or by any other name (such as, but not limited to, "closing out sale", "liquidation sale", "lost our lease sale", "forced to vacate sale"), held in such a manner as to induce a belief that upon disposal of the stock of goods on hand, the business will cease and be discontinued at the premises where the sale is conducted.

(2)

"Goods" includes all goods, wares, merchandise and other personal property, excepting choses in action and money.

(3)

"Person" includes a person, firm, corporation, partnership, association or two or more persons having a joint or common interest.

(4)

A "removal sale" means any sale held in such a manner as to induce a belief that upon disposal of the stock of goods on hand, the business will cease and be discontinued at the premises where the sale is conducted, and thereafter will be moved to and occupy another location.

(b)

License required; fee. No person shall directly or indirectly advertise or cause to be advertised, represent or cause to be represented, or hold out to the public in any manner that any sale of goods is an insurance, salvage, removal, going out of business, insolvent's, assignee's or creditor's sale of goods, or that it is a sale of goods which have been damaged by fire, smoke, water or otherwise, unless such person shall first have obtained a license to conduct such sale. No license shall be required for those sales exempt under section 3 of the Fraudulent Sales Act.

The fee for a license shall be $75.00 and no license shall be issued except upon payment of this fee.

(c)

Transfer. No license issued under this section shall be transferred or converted.

(d)

Application for license. Applicants for licenses shall be made to the village clerk in writing and shall state the name of the applicant, the location to be used, dates of sale, contents and inventory, and all such other information as may be requested on the application form as amended from time to time.

(e)

Duration of license. A license to conduct a sale issued under this chapter shall be valid for a period not to exceed 30 days from the start of such sale. Such license may be renewed once for a period not to exceed 30 days upon affidavit of the licensee that the goods listed in the inventory have not been disposed of and that no new goods have been or will be added to the inventory previously filed. The application for renewal of the license shall be made not more than 14 days prior to the time of the expiration of the license and shall contain a new inventory of the goods remaining on hand at the time the application for renewal is made, which new inventory shall be prepared and furnished in the same manner and form as the original inventory. No renewal shall be granted if any goods have been added to the inventory since the date of the issuance of the license. A fee of $75.00 shall accompany the request for renewal of the license.

(f)

Posting and advertisement. A copy of the application for a license to conduct a sale including the inventory filed therewith, shall be posted in a conspicuous place in the salesroom or place where the goods are to be sold. A duplicate copy of the license shall be attached to the front door of the premises where the sale is conducted in such a manner that it be clearly visible from the street.

Any advertisement or announcement published in connection with the sale shall conspicuously state on its face the number of the license and the date of its expiration.

(g)

Change in inventory. There shall be no substitution for or addition to goods described in the inventory filed or any change in the time or place for a sale conducted. In the case of a sale of damaged goods, the goods to be sold shall be clearly marked or identified as damaged as required by section 10 of the Fraudulent Sales Act. No goods may be purchased in contemplation of a sale, as provided in section 10 of the Fraudulent Sales Act.

(h)

Penalty . Any person, including both the applicant and an individual filing on behalf of an applicant, who shall procure from the village clerk a license to conduct a sale under the description of one of the names set forth in subsection (a) herein which name shall be a misrepresentation of the true description or character of such sale or of the kind or condition of goods to be sold under such license, or any such person violating any of the other provisions of this section may be fined not less than $250.00 nor more than $750.00. Each false statement of fact in an application or inventory required to be filed hereunder shall constitute a separate offense under this section. In addition to the imposition of a fine for a violation, this section shall be enforced in accordance with section 10.5 and 11 of the Fraudulent Sales Act.

(Ord. No. 15-07-14, § 2, 7-14-2015)

Editor's note

Ord. No. 15-07-14, § 2, adopted July 14, 2015, set out provisions intended for use as § 14-278. Inasmuch as there were already provisions so designated, the provisions have been redesignated as § 14-279 at the editor's discretion.