Tip Sheet
03/09/2011 10:59
8458550179
TOWN OF PAWLING
PAGE 03/12
'.
GO!NC~ OU'f OF' BUSINEfiS Sl\l,Ef;
TIPS FOR MUNICIPAL CLERKS
*******.***.****.******..*****~******
1. The going out of busine~t s~les 18w provides you with
an opportunity to prc:)tect the pubU,c:; - conr:;uJIlcrs and mcrcha.~ts
a.like _ from mis:r.0pr~f\('!n1;~lt j"on 1 by 9 iv ing ell f().rc~n~ent .:IU Ulor~ ty
'1:.0 municipa.l clel::ks (S 581 [g])'. For E.~:{ampl:, J.f a ~erchant
in your area conducts a sale regulated by th1S la~ ~1tho~t .
first obtaining a license, yoU should sue for an 1nJunctl.on l.n
cooperation with your municipal attorney (~ 593).
2. Clerks should famili~rize themselvnn with Section 581
which defines varioll~ c1esignations of "cln~~ing out salc1..';"
which must be lict?nsed: ~nd S 584 which cOIIl:ains exceptions.
For example, the designations "liquidatiotl" sale or "final
days" require licen~ing wl1i.lc "clearance sillell or "surplus
stock liquidation s~le" do not. A licensB is requir~d
whenever the dcsignat ion 9 i v('!s "nc)t" i.Cf' to t fie' pu))} iG t.h;J t tho
sale will preceq,e th~ abandonment 01 a buslncos location"
(S 581 [a] ) .
3. Section 584 Exempts ~everal classes of persons from
licensing such as those acting UIld(:r ordeJ: (If the 13a,nkruptcy
Court.
4. A license must be i8P.UN] to <' It.'~i l:im(ltc ,'Jpplicant
within 48 hours, exclusive of Saturdays, Sundayo and public
holidays (S 583[e)).
5. License appli.cntioI\s sh<.\J 1. be: c]pn:i('u or n:vok.ed, if
after investigation, you determine it is .:'lppropriate under the
law to do so. Section 587 detDils the gr0unds for denial and
revocation. Among these are situatJ()ns whp.rc the applican1: is
not the true owner of the mnrchand 1(H3 to be sold or where the
applicant has added merchandise not described in the original
application and inventory. Section 586 st~tes certain
circumstances when a license will become void ~nd subject to
revocat.ion.
6. The revocation proc~dure is contained in section
587 (d) a.nd should be c;1rri00 out i.n Goopr>1"'nH.nn with your:
JTl1micipal attorney. Info:r=mntiotl ab()Ul.: v:!.oJ.aU.ons, stich '-is the
failure of a licensee to discontinue the sale upon rec8ipt of
a revocation notice, should be referred +0 the district
attorney for pros~cution under Section Sg~. In addition, you
~ay seek an injunction to restrain any activity declared
1llegal under' Articl~ ?9~F (~ 593).
1 . (
SectJ.on S) numbers refer to specific ~f.~(;tions of Art.icle
29-F of New York Stat~ G~neral BU8int='5s La\t, entitled "qoinq
out of business sales". - -
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7. The clerk retains ~ll fees paid, when a lic(~n!;e is
revoked or the business does not close its doors within 60
days of the receipt of a license. otherwise the applicant is
entitled to a 100% refund. The N.Y.S.T.C.~. supports a bill
which would reduce the refund to 50 % t thcrl!by allowing clerks
to retain at least $250 when a merchant fully complies with
the law (S590).
8. NE:~w York St"t0 GCl10.l:"..ll l\u!>i n{'!'> !. J,nw r ^rt,j,(~ln 7.2-1\
anti tied "Consumer Protection F'rorn Deceptive Acts and
practices" prohibits businesses from engaging in deception,
misrepresentation and/or false advertising. Whenever such
business conduct is suspec~ed please contact the regional
office of the New York State, Departroent of ~aw (Attorney
General) nearest you.
4/91 NYSTCA