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HomeMy WebLinkAboutOrdinance 74- 944, Going-out-of-business sales. . 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, I 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; I 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 I 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 ORDINANCE NO. 944 323 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. I 324 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- I 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; I ORDINANCE NO. 944 325 I (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. I 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. I 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 ORDINANCE NO. 944 326 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. I Section 14 Saleable Goods The license shall authorize only the sale of goods described in the inventory attached to the application. I 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. I 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 I 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 , 19 ." and in such blank spaces shall be indicated the license number and the date of issuance of the license. Section 18 Penalties I 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: I ~ /. 6' ce:>;J-::~,r::/ '. ,J' ~<,~~;:'d' Clerk of the City Co1Inwf5sion ) State of Montana County of Gallatin City of Bozeman ss 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. ORDINANCE NO. 944 327 328 )/ ,/ (';y /< l./.,,:.<.?:-! .t:'~/ /'" r-#t.:;!.t(".~>~ ERNA V. HARDtNG _/ Clerk of the City Commission I IN WITNESS WHEREOF I hereunto set my hand and affix the corporate seal of my office this 21st day of June, 1974. I I ORDINANCE NO. 944