HomeMy WebLinkAboutOrdinance 25-1988 . � ..1. ,
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ORDINANCE N0 . 25_g�
AN ORDINANCE REGULATING GOING OUT OF BUSINESS SALES IN THE
CITY OF BROOKINGS .
BE IT ORD�IINFD BY THE GOVERNING BODY OF THE CIT.Y OF
BROOKINGS , SOUTH DAKOTA, AS FOLI.OWS , TO-WIT:
Section 1 . Definitions .
The following words and terms when used in this article
shall have t}ie following meanings unless tlie context clearly
requires a different meaning :
Advertise . Any and all means of conveying to the public,
notice of sale or notice of intention to conduct a sale whether
by word of mouth, by newspaper advertisement , by maga�ine adver-
tisement , by handbill , by written notice , by printed notice, by
printed display, by billboard display, by poster , '�y radio or
television announcement and any and all means , including oral ,
written or printed .
Gcing out of busi.ness sale . Any sale �tihich is publicly
advertis�e�. to e a term nation of business sale and shall
include specifically, although r,c�t exclusively, "quitting busi -
ness sale, " "ben�fit of creditor� sale, " "assignecs ' sale, "
"forced out of h+�siness sale, " ir�solvent sale, " we quit sale, "
"we give up sale , " and any other advertising or designation by
any ottier expression or characterization similar to any of the
foregoing anci calculated to con��ev substantially the same
meaning , all sales accompanied by� notices or advertising indi-
cating tliat t}le premises are available for possessiori o.r lease
or are otherr�ise to be vacated , a�. l sales advertised in any
manner calculated to convey to tlie pt�blic the information or
belief that upon the disposal of the goods to be placed on sale,
the business being conducted at such location will cease or be
discontinued , any sale advertised or represented as anticipatory
of, or to avoid the termination, discontinuancc, conclusions ,
dissolution or abandonment of the business conducted at any
location unc3er same name .
Section 2 . Certain sales excepted .
The provisions of ttiis article shall not apply to sales
conducted by the following persons :
(a ) Persons acting pursuant to an order or process of
a court of competent jurisciiction;
, (b ) Perscrls acting in accordance with their powers and
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duties as p�.iblic officials ;
(c ) Auctioneers duly licensed pursuant to this Code,
selling at auctions .
Section 3 . License required.
No person shall advertise or conduct or cause to be adver-
tised or conducted, any going out of business sale without first
having obtained a license for said sale; and it shall be unlaw-
ful for any person to advertise or conduct or cause to be adver-
tised or conducted any such sale without complying with all of
the provisions of this article.
Section 4 . Application for license.
Any person desiring to conduct a going out of business
sale, shall make a written application to the City Commission.
Such application shall be verified by the aifidavit of such
owner/applicant before a person authorized to administer oaths ,
and each s�xch application shall set forth and contain the
following information:
(a) The true n.i;rie and address of the owner of the
goods , wares , and merchandise to be the object
of the sale and a description of tlle place or
places k�here the goods , wares , and merchandise
are located ;
(b) A description of the Place ��here the sale is to
be held ;
(c ) The nature of the occupancy, whether by lease
or sublease and the effective date of the ter-
mination of the occupancy;
(d) A full and complete statement of the facts in
regard to the going out of business sale and
the reason for the urgent and expeditious dis-
posal thereof and the manner in which the sale
will be conducted and the dates during which
the sale is to be conductea;
(e) No person shall make any false statement in the
application required by this article or in any
advertisement or notice of any sales of goods,
wares or merchandise.
Section 5 . License fees .
On filing an original ��pplication for a license to adver-
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tise and conduct a going out of business sale, the applicant
shall pay to the city auditor such fee as may be determined by
Resolution of the City Commission. If any application be
disapproved , such payment sha11 be forfeited to the city as and
for the cost of investigating the statements contained in such
application.
Section 6 . Investigation of applicant .
Upon receipt vf the application for a license required by
this article, the city commission may in their discretion make
or cause to be made an examination, audit or investigation of
the applicant and all of the facts contained in said application
in relation to the proposed sale. This shall be acted upon at
the following city commission meeting .
Section 7 . Denial .
The license required by this article shall be denied or
refused by the city commission if any one ( 1 ) or more of the
following facts or circumstances are found to exist .
(a) That the applicant , either directly or indirectly
aaid within eighteen (18) months prior to the date
of the filing of the application, }�as conducted a
sale in connection with which he advertised or
represented that the entire business conducted at
the particular location H�as to be closed out or
terminated;
(b) That the applicant has heretofore been convicted
of a violation of this article;
(c) That the applicant of his servant , agent or em-
ployee has failed , refused or neglected to fur-
nish on demand to the director of finance, his
designee or such other person as may have been
directed by the city commission to investigate the
application, the facts connected with the stock on
hand or any other information that may reasonably
be required in order to make a thorough investi-
gation of all phases connected tirith said sale so
far as they relate to the rights of the public.
(d) That there are any taxes due and owing upon the
goods , wares or merchandise in the inventory or
that any taxes due under the provisions of state
law have not been paid .
(e) That the applicant ' s business for which a "Going
Out of Business Sale" license has been applied for,
has not been an established business in the City
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of Brookings and has not been doing business under
the laws of South Dakota and the ordinances of
the City of Brookings for a period of at least
eighteeii ( 18) months prior to applicant ' s request
for such a liceilse or by special dispensation by
the City Commission .
Section 8 . Conditions for granting of license.
When it appears to tlle City Commission that all of the state-
ments in the application are true and that such proposed sale is
of the character as represented therein, and that the conduct of
such sale will not be injurious to the peace, health, safety and
welfare of the residents and inhabitants of the city, that the
application is in full compliance with the terms and conditions
of this article and that the required license fee has been paid,
the Commission shall issue a revocable numbered license to the
applicant authorizing said applicant to advertise and conduct
the sale as described in said application, which license shall
be issued on the following terms :
(a) Such license shall authorize the type of sale as
named and described in the application thereof
at the place or places named therein and by the
particular licensee for a period of not more than
ninety (90) consecutive calendar days , following
the issuance of the license;
(b) Upon the commencement of said sale and for its
duration, the license issued hereunder shall be
prominently displayed in the store premises by
the licensee;
(c) Any license granted under t}iese provisions shall
not be assignable or transferable except by ap-
proval of City Commission.
Section 9 . Revocation .
The Commission may revoke any license issued pursuant to
the provisions of this chapter if it finds that the licensee
has :
(a) Violated any of the provisions of this chapter;
(b) Made any material misstatement in the application;
(c) Made or permitteci to be made any false or mis-
leading statements or representations in adver-
tising the sale, or in displaying, ticketing or
pricing, wares or merchandise offered for sale.
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' Section 10 . Renewal of license .
The City Commission mar , upon a siaorn application, renew a
license issued under the provisions of this article . The
license may be renewed once for a period not to exceed thirty
( 30) days upon sworll application of tlle licensee that no new
goods have been or will be added to the inventory for the
balance of the sale. The application for renewal of the license
be at least ten (10) days prior to ti�e time of the expiration of
the license .
Sectior: il_ . Continuation of sale prohibited.
No person shall conduct a going out of business sale as
defined in Section 1 beyond the termination of date specified
for such sale, nor shall any person, upon conclusion of such
sale, continue that business which had been represented as going
out of business under the same name, at the same location, or
elsewhere within the city limits of Brookings ; nor shall any
person, upon conclusion of such sale , continue business contrary
to the designation of such sale .
Section 12 . Exclusiveness of license.
if the applicant for a going out of business sale license
owns , conducts or operates more than one (1 ) store or branch
store and only one (1 ) store or branch store is to go out of
l�usiiiess and ce��st, operations , tlie license issued shall apply
only to the one (1 ) store or branch for which such license was
applied for and issued , aild no other store or branch may adver-
tise or ret�rese�lt in any w�ay that it is cooperating with or par-
ticipating in any licensed going out of business sale, nor shall
the licenseci store or any person advertise or represent that any
store or branch of a chain or grou� of stores shall be conductec.
= ��lely at the location of the 1�rancli or store for which the
license was obtained .
Section 1.3 . That any and all ordinances in conflict here-
with are hereby repealed.
FIRST READING: Qctober 25, 1988
SECOND READING: November 8, 1988
PASSED AND APPROVED: November 8, 1988
ATTEST:
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— Mayor
Finance Offic r