[HISTORY: Adopted by the Village Board of the Village of Hobart as indicated in article histories. Amendments noted where applicable.]
Direct sellers — See Ch. 142.
[Adopted as § 3.819 of the 2000 Code]
No person shall conduct a "closing out" sale of merchandise in the Village except as hereinafter provided.
Every person shall obtain a Village "closing-out sale license" before retailing or advertising for retail any merchandise represented to be merchandise of a bankrupt, insolvent, assignee, liquidator, adjuster, administrator, trustee, executor, receiver, wholesaler, jobber, manufacturer, or of any business that is in liquidation, that is closing out, closing or disposing of its stock or a particular part or department thereof, that has lost its lease or has been or is being forced out of business, that is disposing of stock on hand because of damage by fire, water, smoke or other cause, or that for any reason is forced to dispose of stock on hand. This license shall be obtained in advance if the advertisement or representation, expressed or implied, tends to lead people to believe that this sale is a selling out or closing out sale.
Every person requiring a "closing-out sale license" shall make an application in writing to the Village Clerk-Treasurer on the form provided by the Clerk-Treasurer and attach thereto an inventory containing a complete and accurate list of the stock of merchandise on hand to be sold at such sale and an affidavit by the applicant or his duly authorized agent that the inventory is true and correct to the knowledge of the person making such affidavit. The affidavit shall include the names and addresses of the principals, such as the partners, officers and directors and the principal stockholders and owners of the business, and of the inventoried merchandise.
The inventory shall contain the cost price of the articles listed therein, together with the date of purchases and the identity of the seller. If the merchandise was purchased for a lump sum or other circumstances make the listing of the cost price for each article impracticable, the inventory shall state the lump sum paid for such merchandise and the circumstances of the purchase.
The application shall also specify the name and address of the applicant and, if an agent, the person for whom he is acting as an agent, the place at which the sale is to be conducted and the period of time the proposed sale is to take place. The license shall specify the period for which it is granted, which shall not exceed 60 successive days, Sundays and legal holidays excepted, from the date of the license.
The period of time that a sale may be conducted may be extended by the Village Clerk-Treasurer if, at any time during the term of the license, a written application for such extension, duly verified by affidavit of the applicant, is filed by the licensee with the Village Clerk-Treasurer.
This application shall state the amount of merchandise listed in the original inventory which has been sold and the amount which still remains for sale and shall state the time for which an extension is requested.
No extension shall be granted if any merchandise has been added to the stock listed in the inventory since the date of the license. The applicant shall satisfy the Village Clerk-Treasurer by affidavit, or as otherwise directed by him, that no merchandise has been added to the stock since the date of issuance of the license.
The Village Clerk-Treasurer may grant or deny the application. If granted, the period of the extension shall be determined by the Village Clerk-Treasurer, but shall not exceed 30 days from the expiration of the original license. If the extension is granted, it shall be issued by the Village Clerk-Treasurer upon the payment of an additional license per-day fee, in an amount as set from time to time by resolution of the Village Board, for the time during which it is granted.
It shall be unlawful to sell, offer or expose for sale at any sale for which a license is required by this chapter any merchandise not listed in the inventory required by § 233-3 herein. Any merchant may, however, in the regular course of business, conduct a "closing out" sale of merchandise and at the same time sell other merchandise, if the merchandise for the sale of which a license is required shall be distinguished by a tag or otherwise so that the "closing out" merchandise is readily ascertainable to prospective purchasers. The merchant shall not label or tag other merchandise in a manner to indicate, or lead a prospective purchaser to believe that such merchandise is of the class or classes for which a license is required. Each article sold in violation of the provisions hereof shall constitute a separate offense, and any false or misleading statement in the required inventory, application or extension application shall constitute a violation of this chapter.
The Village Clerk-Treasurer shall verify the details of the inventory filed in connection with an application for this license and shall also verify the items of merchandise sold during any sale under this chapter. No licensee shall refuse to furnish on demand to the Village Clerk-Treasurer, or any person designated by him for that purpose, all the facts connected with the stock on hand or any other information that he may reasonably require in order to make a thorough investigation of all phases of the sale, so far as they relate to the rights of the public.
The fee for such licenses shall be as set from time to time by the Village Board, based on length of license and price of the inventory.
This chapter shall not apply to sales by public officers or sales under judicial process.