Fact Sheet
AUG-18-2010 09:15 From:TOWN OF PAWLING
845 855 0179
To:845
P.2/9
GOING OUT OF BUSINESS SALES
FACT SHEET FOR LICENSE APPLICANTS
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1. New York State law requires that a license be
obtained before advertising a going out of business aa1e.
This rule applies whenever a merchant leads the public to
believe the sale: (1) will precede the abandonment of a
business location; '(2) results from death, business failure or
other adversity; or (3) involves merchandise damaged by fire,
smoke or water.
2. The law is designed to protect the public from
milrepresentation. Licenses will only be issued to thos~
persons who have legitimate reasons for conducting such sales.
Merchandise cannot be added to that on hand at the time when
the necellity, which i. the occasion of the lale, arose. To
further prevent misrepresentation, the duration of luch sales
i. limited to thirty consecutive calendar days. If, after
thirty days, lome of the merchandise on hand when the sale
commenced remains, one thirty-day renewal period is allowed.
3. An application must be made in writing, under oath, to
the licenSing a,uthority (clerk) of the appropriate city, town
or village in which the sale is to be held. A detailed
inventory of the merchandise to be offered at such sale must
accompany the application.
4. An application to conduct a "closing out sale" or
"defunct business sale" must be filed at least 15 day. before
the sale. An application to sell damaged goods may be made at
any time prior to the sale. An application for renewal shall
be made not more than ten days prior to tha date of the
expiration of the license~
S, A $500 fee ($50 renewal) is required with the
application. One hundred per cent of the fees are returned to
the applicant provided the license is not revoked and the
store 1s closed within sixty days. Within thirty days after
the sale, a statement must be filed with the clerk stating the
total retail value of the unsold merchandise and the ultimate
disposition thereof. Sale records must be kapt open for
inspection by the clerk for one year.
6. A license only applies to the one location for which
it was issued, and no other store, branc~1 or warehouse may
advertise it is participating in the licensed sale.
-OVER-
AUG-18-2010 09:15 From:TOWN OF PAWLING
845 855 0179
To: 845
P.3/9
"
7. Any acver~isernent mus: contain the license number,
expi:ation da~~ anc, i: a~plie~ble, the location where the
business is to be resumed. A copy of the application,
includin9 the inventory which must be filed with it, shall be
posted conspicuously wr.ere the sale is held.
S. Violations of this law are misdemeanors punishable by
a fine of '250 or im~risonment for one year or both, and each
cay upon which any sale is eonducted in violation of the law
shall be a separate violation.
9. For full details, refer to New York State Geno:al
Business Law, Article 29-F.
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4/91 NYSTCA
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