It shall be unlawful for any person, firm or corporation to advertise or conduct or carry on in the city any sale of goods, wares, or merchandise at retail that is represented as a bankrupt, bankrupt stock, bankrupt price, insolvent, assignee’s, adjuster’s, wholesaler’s, jobber’s, manufacturer’s, closing-out, quitting business, going out of business, liquidation, closing stock, fire, fire damage, smoke, smoke damage, water damage or other similar sale, without first having filed with the city clerk the inventory under oath hereinafter provided for, complying with the provisions of this article and obtaining from the city clerk a license to do so, to be known as a closing-out sale license. The fee for such license shall be and the same is hereby fixed as follows: for a period not exceeding 30 days, $25; for a period not exceeding 60 days, $50; for a period not exceeding 90 days, $75.

(Ord. 3794, Sec. 17)

Regulations relating to the inventory of stock of goods, wares and merchandise to be sold for bankrupt, fire and closing-out sales shall be as follows:

(a)   The inventory required by section 12-301 shall contain a complete and accurate list of the stock of goods, wares and merchandise to be sold as therein provided together with the wholesale price thereof. No goods, wares or merchandise shall be included in the inventory which is not physically present in the place of business described in the application and license at the time of the application for the license.

(b)   Subject to approval by the city manager, an applicant may, in lieu of the inventory, file a statement, under oath, that only the goods, wares and merchandise in the place of business, at the time of the application for the license, will be sold and that no goods, wares and merchandise will be brought in or added to stock, during the period of such sale. The making of a false statement, hereunder, shall be a violation of this section.

(Code 1975, Sec. 12-302)

The inventory referred to in sections 12-301:302 shall be made a part of the application for a license hereunder, which application for a license shall be in writing, and shall, if it is a sale of damaged goods, contain a statement of the injury caused to such goods by fire, smoke, water or otherwise. The application shall also show the place and manner of conducting such sale, and shall also give the names of the person or persons from whom the goods to be sold were purchased, the date of delivery of such goods to the applicant, the place from which such goods were last taken, and all details necessary to fully identify the goods to be said. The application shall be signed by the person seeking to procure the license, or by the proper officer of the corporation, if it be a corporation, and the application shall be sworn to by the proper person signing such application, which oath shall state that the information given therein is full and true, and known by the affiant to be so.

(Code 1975, Sec. 12-303)

Only one license required by section 12-301 shall be issued to anyone person, firm or corporation, within a 12 month period and no such license shall be issued to anyone person, firm or corporation, for a longer period of time than 90 days.

(Code 1975, Sec. 12-304)

It shall be unlawful to advertise, sell or expose for sale as any sale governed by this article, or to list on the inventory required by this article, any goods, wares or merchandise which are not the regular stock of the store or other place, the business of which is to be closed out at such sale, or to make any replenishments or addition to such stock for the purpose of such sale or during the time thereof. No goods, wares or merchandise shall be sold other than those actually included in the inventory.

(Code 1975, Sec. 12-305)

It shall be unlawful for any person, firm or corporation licensed under this article to fail, neglect or refuse to keep accurate records of the goods, wares or merchandise sold at any sale governed by the provisions of this article, from which records the city clerk may ascertain the kind and quantity or number sold. The city clerk may at his or her discretion, verify the details of the inventory or may check or verify items of merchandise sold during the sale.

(Code 1975, 12-306)

It shall be unlawful for any person, firm or corporation licensed under this article to fail or refuse to give the city clerk or any person designated by him or her for that purpose, all the facts connected with the stock of goods, wares and merchandise on hand, or sold, or received, or any other information that he or she may require in order to make a thorough investigation of all phases connected with the sale, and the failure to comply with any provision of this article shall be sufficient grounds for the cancellation of the license issued pursuant to the provisions hereof.

(Code 1975, 12-307)

All sales governed by the provisions of this article shall be conducted in the place of business described in the application and license and in no other place.

(Code 1975, 12-308)

No person in contemplation of conducting any sale set out in this article shall order any goods for the purpose of selling and disposing of the same at any sale, and any unusual purchase in addition to the stock of goods, within 60 days prior to the filing of an application for a license under the provisions of this article shall be presumptive evidence that such purchases and additions were made in contemplation of such sale, and for the purpose of selling such goods, wares and merchandise, so purchased at such sale.

(Code 1975, 12-309)

In addition to the penalties described in section 12-312 of this article, the city may recover by civil action, in any court of competent jurisdiction, the amount of the license tax imposed by section 12-301 of this article, and no property of the debtor or licensee shall be exempt from forced sale under any process of law for such indebtedness, except such exemptions as are allowed by the Constitution of the State of Kansas.

(Code 1975, 12-310)

(a)   The provisions of this article shall not be applicable to trustees in bankruptcy, executors, administrators, receivers, or other public officers acting under judicial process.

(b)   Additionally, this article shall not be applicable to any business which is closing out due to the retirement or illness of the owner, proprietor, a partner or a stockholder therein. No such exemption for illness or retirement shall exist until an affidavit has been filed with the city clerk by such owner, proprietor, partner or stockholder, or on their behalf, setting forth the facts qualifying the business for exemption hereunder. Such affidavit shall be accompanied by a fee of $25. Any business so exempted shall cease its sales within the city no later than 90 days following the date of the filing of such affidavit with the city clerk.

(Ord. 3687, Sec. 1)

Any person, firm or corporation, violating any provision of this article shall, upon conviction thereof, be fined in a sum not to exceed $100 or imprisonment, not exceeding three months, or by both the fine and imprisonment, and that each day of violation shall be deemed a separate offense.

(Code 1975, 12-312)