HomeMy WebLinkAboutOrdinance 74- 944, Going-out-of-business sales.
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ORDINANCE NO. 944
AN ORDINANCE REGULATING GOING-OUT-OF-BUSINESS SALES, DEFINING
THE SAME, PROVIDING FOR THE LICENSING THEREOF, AND PENALTIES
FOR VIOLATION THEREOF.
BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, AS FOLLOWS,
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TO WIT:
Section I
Definitions
For the purpose of this chapter, the following terms, phrases, words, and their deriva-
tions shall have the meaning given herein. When not inconsistent with the context, words
used in the present tense include the future, words in the plural number include the singular
number, and words in the singular number include the plural number. The word "shall" is
always mandatory and not merely directory.
(1) "City" is the City of Bozeman;
(2) "Director of Finance" is the License Officer of the City of Bozeman;
(3) "Fire and other altered goods sale" is a sale held out in such a manner as to
reasonably cause the public to believe that the sale will offer goods damaged or altered by
fire, smoke, water, or other means;
(4) "Going-Out-of-Business Sale" is a sale held out in such a manner as to reasonably
cause the public to believe that upon the disposal of the stock of goods on hand, the business
will cease and be discontinued, including but not limited to the following sales: Adjuster's;
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Adjustment; Alteration; Assignee; Bankrupt; Benefit of Creditor's; Benefit of Trustees;
Building Coming Down; Closing; Creditor's Committee; Creditor's; End; Executor's; Final Days;
Forced Out; Forced Out of Business; Insolvents'; Last Days; Lease Expires; Liquidation;
Loss of Lease; Mortgage Sale; Receiver's; Trustee's; and Quitting Business;
(5) "Goods" is meant to include any goods, wares, merchandise or other property
capable of being the object of a sale regulated hereunder;
(6) "Person" is any person, firm, partnership, association, corporation, company,
or organization of any kind;
(7) "Relocation of Business Sale" is a sale held out in such a manner as to reasonably
cause the public to believe that the person conducting the sale will cease and discontinue
business at the place of sale upon disposal of the stock of goods on hand and will then
move to and resume business at a new location in the City or will then continue business
from other existing locations in the City.
Section 2
License Required
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A license issued by the Director of Finance shall be obtained by any person before
offering to sell any goods at a sale to be advertised or held out by any means to be one of
the following kind:
(1) Going-Out-Of-Business Sale;
(2) Relocation of Business Sa Ie; and,
(3) Fire and other altered stock sa Ie.
Section 3
Established Business Requisite
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Any person who has not been the owner of a business advertised or described in the
application for a license hereunder for a period of at least 12 months prior to the date
of the proposed sale shall not be granted a license, except that this minimum may be waived
by the Director of Finance with concurrence of the City Manager and following proper applica-
tion of the owner of such business when such application shows that a hardship exists.
Section 4
Exception for Survivors of Businessmen
upon the death of a person doing business in this city, his or her heirs, divisees
of legatees shall have the right to apply at any time for a license hereunder.
Section 5
Interval Between Sales
Any person who has held a sale, as regulated hereunder, at the location stated in the
application within one year past from the date of such application shall not be granted a
license.
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Section 6
Restricted Location
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, nor shall the store or branch conducting
the licensed sale advertise or represent that any other store or branch is cooperating with it
or participating in any way in the licensed sale.
Section 7
Persons Exempted
The provisions of this chapter shall not apply to or affect the following persons:
(I) Persons acting pursuant to an order or process of a court of competent juris-
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diction;
(2) Persons acting in accordance with their powers and duties as public officials;
(3) Duly licensed auctioneer, selling at auction;
(4) Persons conducting a sale of the type regulated herein on the effective date
of this chapter, unless such sale is continued for a period of more than 30 days from and
after such effective date, in which event such person, at the lapse of the said 30 day period,
shall' comply with the provisions of this chapter;
(5) 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.
Section 8
Application Requirements
written Information Required. A person desiring to conduct a sale regulated by
this chapter shall make a written application a minimum of two weeks prior to the date the
sale is to commence to the Director of Finance, setting forth and containing the following
information:
(1) The true name and address of the owner of the goods to be the object of the sale;
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325
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(2) The true name and address of the person from whom he purchased the goods to
be sold and the price therefor, and if not purchased, the manner of such acquisition;
(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 of the period of time in which the sale is to be conducted;
(6) A full and complete statement of the facts in regard to the sale, including
the reason for the urgent and expeditious disposal of goods thereby and the manner in which
the sale will be conducted;
(7) A complete and detailed inventory of the goods to be sold at such sale as
disclosed by the applicant's records. Said inventory shall be attached to and become part
of the required application.
(a) Bona Fide Orders. All goods included in such inventory shall have
been purchased by the applicant for resale on bona fide orders without cancellation
privileges and shall not comprise goods purchased on consignment.
(b) Goods Purchased for Sale Hereunder. Such inventory shall not include
goods ordered in contemplation of conducting a sale regulated hereunder. Any
unusual purchase or additions to the stock of goods of the business hereby affected
within 90 days before the filing of an application hereunder shall be deemed to be
of such character.
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Section 9
License Fee
Any applicant for a license hereunder shall submit to the Director of Finance with his
application for a license a fee of $50.00. There shall not be an additional license charge
for any renewal granted under the provisions of Section 12.
Section 10
Effect of License
A license shall be issued hereunder on the following terms:
(1) When recommended to the City Manager by the Director of Finance, but only after
the City Manager has fully examined the application and investigated all circumstances of
the proposed sale;
(2) When reconnnended and passed by the City Commission after an appeal shall have
been made to the City Commission following an adverse recommendation by the City Manager and
the denial of a license by the City Manager;
(3) When ordered ~ a court of competent jurisdiction following the denial of a
license by the City Commission.
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Section 11
Licensing Period
The license shall authorize the sale described in the application for a period of not
more than 30 consecutive days, Sundays and legal holidays included, following the issuance
thereof.
Section 12
Renewal Procedure
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The License Officer shall renew a license for two periods of time only, each such period
to be in addition to the 30 days permitted in the original license, and total renewal time
not to exceed 60 consecutive days, Sundays and holidays included. But each such request for
renewal shall be referred to the City Commission for their approval or disapproval, and the
same procedures shall govern all renewal licenses that apply to the original licenses, and
the following criteria shall be considered:
(1) That facts exist justifying the license renewal;
(2) That the licensee has filed an application for renewal;
(3) That 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.
(a) 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 he an application for renewal, whether presented by
the original applicant, or by any other person.
Section 13
Nature of Sale
The license shall authorize only the one type of sale described in the application at
the location named therein.
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Section 14
Saleable Goods
The license shall authorize only the sale of goods described in the inventory attached
to the application.
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Sect ion 15
Non-Transferability
Any license herein provided for shall not be assignable or transferable.
Section 16
Duties of Licensee
A licensee shall:
(1) Adhere to Inventory. 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;
(2) Advertise Properly. Refrain from employing any untrue, deceptive, or misleading
advertising;
(3) Adhere to Advertising. Conduct the licensed sale in strict conformity with
any advertising or holding out incident thereto;
(4) Keep Duplicate Inventory. Keep available at the place of sale a duplicate
copy of the inventory submitted with the application and shall present such duplicate to
inspecting officials upon request;
(5) Segregate Non-inventoried Goods. 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 an about the
place of sale apprising the public of the status of all such goods.
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ORDINANCE NO. 944
Section 17
Display of License; Examination Permitted
On commencement of any sale as hereinbefore defined, the license issued by the Director
of Finance shall be prominently displayed near the entrance to the premises. A duplicate
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original of the application and stock list pursuant to which the license was issued shall at
all times be on the premises and available to the Director of Finance and the licensee shall permit
the Director of Finance to examine all merchandise on the premises at any time during the
period of the sale for comparison with such stock list. All advertisements and advertising
and the language contained therein shall be in accordance with the purpose of the sale as
stated in the application pursuant to which the license was issued and the wording of such
advertisements shall not vary from the wording as indicated in the application. Such advertis-
ing shall in no manner or form whatsoever, either directly or indirectly, indicate that such
sale is held with the approval of the City. Such advertising shall contain a statement in
these words and no others:
"Sale held pursuant to License No.
of the City of Bozeman on the day of
issued by the Director of Finance
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and in such blank spaces shall be indicated the license number and the date of issuance
of the license.
Section 18
Penalties
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Any person violating the provisions of this chapter shall, upon conviction thereof,
be fined not less than $100.00 nor more than $300.00, or imprisoned in the City Jail for
not more than 90 days, or both. Each day's violation shall constitute a separate offense.
Section 19
Severability
If any provisions of this chapter or the application thereof to any person or circumstances
is invalid, such invalidity shall not affect the other provisions or applications of the
chapter which can be given effect without the invalid provision or application, and to this
end the provisions of this chapter are declared to be severable.
PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman this
17th day of April, 1974.
Mayor
ATTEST:
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6' ce:>;J-::~,r::/ '. ,J' ~<,~~;:'d'
Clerk of the City Co1Inwf5sion
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State of Montana
County of Gallatin
City of Bozeman
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I, Erna V. Harding, Clerk of the Commission of the City of Bozeman, do hereby
certify that the foregoing Ordinance No. 944 was published by title and number in the
Bozeman Daily Chronicle, a newspaper of general circulation printed and published in Bozeman
in the issue of the 21st day of April 1974, and due proof of such publication is on file
in my office.
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328
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l./.,,:.<.?:-! .t:'~/ /'" r-#t.:;!.t(".~>~
ERNA V. HARDtNG _/
Clerk of the City Commission
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IN WITNESS WHEREOF I hereunto set my hand and affix the corporate seal of my
office this 21st day of June, 1974.
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ORDINANCE NO. 944