“Going Out of Business” Sales

Baltimore City Code art. 2, subtit. 6

in effect

Baltimore City Code, Article 2, § 6-1 Definitions.

§ 6-1. Definitions. (a) In general. The following words and terms, when used in this subtitle, shall have the following meanings unless the context clearly requires a different meaning. (b) {Repealed} (c) License. “License” shall mean a license issued under the authority of this subtitle to conduct a sale in accordance with the provisions of this subtitle. (d) Licensee. “Licensee” shall mean a person to whom a license has been issued. (e) Licensor. “Licensor” shall mean the Director of the Department of Consumer Protection and Business Licensing of Baltimore City. (f) Going Out of Business Sale. (1) “Going Out of Business Sale” shall mean and include any sale which is publicly advertised to be a termination of business by the owner or operator of said business, his agent or agents, or a cessation of the operation of said business, or a cessation of the operation of said business under its then known name, or a transfer to a new name. (2) “Going Out of Business Sale” shall include specifically, although not exclusively: (i) “Quitting Business Sale”, “Benefit of Creditors Sale”, “Building Coming Down Sale”, “Benefit of Trustees Sale”, “Creditors Committee Sale”, “Creditors Sale”, “Forced Out Sale”, “Assignee Sale”, “Forced Out of Business Sale”, “Insolvent Sale”, “Liquidation Sale”, “Loss of Lease Sale”, “Mortgage Sale”, “Outselling Sale”, “Selling Out Sale”, “We Quit Sale”, “We Give Up Sale”, “Fixtures for Sale”, “Retiring Our Name Sale”, “Changing Our Name Sale”, and any other advertising or designation by any other expression or characterization closely similar to any of the foregoing and calculated to convey substantially the same meaning; (ii) all sales accompanied by notices or advertising indicating that the premises are available for purchase or lease, or are otherwise to be vacated; (iii) all sales advertised in any manner calculated to convey to the public the information or belief that, upon the disposal of the goods to be placed on sale, the business being conducted at any location will cease, or be discontinued, or otherwise to be vacated or transferred, surrendered or handed over to a successor in business or conducted under a new name; and (iv) any sale advertised or represented as anticipatory of, or to avoid the termination, liquidation, revision, wind-up, discontinuance, conclusion, dissolution, or abandonment of the business conducted at any location. (g) Advertise. (1) “Advertise” shall mean to publish, circulate, disseminate, or place before the public in any way or through any media whatever, for the purpose of the sale of goods, wares, and merchandise. (2) “Advertise” shall specifically, although not exclusively, include advertising by outside or inside signs, including neon or other electrical signs, advertising by radio, telephone, television, newspaper, magazine, book, notice, circular, pamphlet, letter, handbill, poster, placard card, price tag or card, label, or any other way similar or dissimilar to the foregoing. (Ord. 25-013 Section 1; Ord. 22-125; Ord. 76-020; Ord. 66-1326; Ord. 51-058.)

Baltimore City Code, Article 2, § 6-2 Prohibited activities.

§ 6-2. Prohibited activities. (a) Conducting sale without license. It shall be unlawful for any person to conduct a “Going Out of Business Sale” of the type defined herein without first having obtained a license for said sale from the licensor defined in this subtitle. (b) Advertising sale without license. It shall be unlawful for any person to advertise a “Going Out of Business Sale” before a license therefor has been applied for and granted by the licensor. (c) Sale for longer period than permitted. It shall be unlawful for any licensee to conduct, or permit, any “Going Out of Business Sale” as defined in this subtitle for a longer period or periods of time than provided for hereinafter in this subtitle. (d) Goods not previously in stock. It shall be unlawful for any licensee to sell or offer for sale any goods, wares or merchandise not in stock and in possession of the licensee on the date of the filing of the application for a license to conduct a “Going Out of Business Sale”. (Ord. 51-058.)

Baltimore City Code, Article 2, § 6-3 Exemptions.

§ 6-3. Exemptions. This subtitle does not apply to or affect: (1) persons acting pursuant to an order or process of a court of competent jurisdiction; (2) persons acting in accordance with their powers and duties as public officers such as sheriffs and marshals; (3) any publisher of a newspaper, magazine, or any operator of a radio or television broadcasting station who publishes or broadcasts an advertisement in good faith: (i) without knowledge of its false, deceptive, or misleading character; and (ii) without knowledge that the provisions of this subtitle are not being complied with; or (4) any sale by public auction in the City of any gold, silver, silverplated ware, precious stones, watches, clocks, or jewelry, for which a permit has been granted under the laws of the City. (Ord. 04-672; Ord. 51-058.)

Baltimore City Code, Article 2, § 6-4 Persons eligible for license.

§ 6-4. Persons eligible for license. (a) Owner of on-going business. Any person who has owned a wholesale, jobbing, pawn shop, manufacturing, or retail business for 6 months prior to the date set for the proposed sale is eligible to make an application for a “Going Out of Business Sale” license. (b) Purchaser of goods or business. Any person who purchases goods, wares, or merchandise, or a business from another may apply for a license to conduct a “Going Out of Business Sale” at any time after the expiration of 6 months from the date of the aforesaid purchase. (c) Successors to deceased owner. Provided further, that if an owner of a business dies, his or her heirs, devisees, or legatees may apply at anytime for a “Going Out of Business Sale” license. (Ord. 51-058.)

Baltimore City Code, Article 2, § 6-5 Persons not eligible for license.

§ 6-5. Persons not eligible for license. (a) In general. Any person who has not been the owner of the business advertised or described in the application for a “Going Out of Business Sale” license for a period of at least 6 months prior to the date of the proposed “Going Out of Business Sale” or has held a “Going Out of Business Sale” within 1 year last past at the particular location, shall not be granted a “Going Out of Business Sale” license. (b) Successors to deceased owner. Except, however, the heirs, devisees, or legatees of a deceased owner of a business may obtain a license at any time. (Ord. 51-058.)

Baltimore City Code, Article 2, § 6-6 License for branch stores.

§ 6-6. License for branch stores. (a) Others may not participate. If the applicant for a “Gong Out of Business Sale” license owns, conducts, or operates more than 1 store or branch store and only 1 store or branch store is to go out of business and cease operations: (1) the license issued will apply only to the 1 store or branch for which it was applied for and issued; (2) no other store or branch may advertise or represent in any way that it is cooperating with or participating in any way in the licensed “Going Out of Business Sale”; and (3) neither the licensed store nor any person may advertise or represent that any other store or branch is cooperating with or participating in the licensed “Going Out of Business Sale”. (b) Location and inventory restrictions. The “Going Out of Business Sale” conducted by any store or branch of a chain or group of stores: (1) shall be conducted solely at the location of the branch or store for which the license was obtained, and (2) no goods, wares, or merchandise shall be brought from any other branch or store and placed on sale at the branch or store licensed to conduct a “Going Out of Business Sale”. (Ord. 51-058.)

Baltimore City Code, Article 2, § 6-7 Application for license.

§ 6-7. Application for license. (a) In general. Any person desiring to conduct a “Going Out of Business Sale”, as defined in this subtitle, shall make a written application to the licensor, signed and verified by the applicant before a person authorized to administer oaths. (b) Required information. Each application shall contain the following information: (1) the true name and address of the owner of the goods, wares, and merchandise to be the object of the sale; (2) a description by street location, address, and type of building of the location at which such sale is to be held; (3) the name of the occupant of the location in question and whether by ownership, lease, or sublease; (4) if by lease or sublease: (i) the effective date of the termination of such tenancy; and (ii) the name and business address of the lessor or sublessor; (5) a full and complete statement of the facts in regard to the “Going Out of Business Sale”, including: (i) the reason why the sale is to be conducted; (ii) the manner in which the sale will be conducted; and (iii) the date or period of time in which the sale is to be conducted; (6) a complete and detailed inventory of the goods, wares, and merchandise to be sold at such sale as disclosed by applicant’s records. (c) Nature of inventory. (1) All goods, wares, or merchandise included in such inventory: (i) shall have been purchased by the applicant for resale on bona fide orders without cancellation privileges; and (ii) shall not comprise goods, wares, or merchandise purchased on consignment. (2) This inventory shall become a part of the application for a license to conduct a “Going Out of Business Sale”. (Ord. 04-672; Ord. 51-058.)

Baltimore City Code, Article 2, § 6-8 Investigation; denial of license.

§ 6-8. Investigation; denial of license. (a) Licensor may investigate. Upon receipt of the application, the licensor may, in his 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. (b) Grounds for denial. (1) The application shall be denied or refused if the licensor finds any 1 or more of the following facts or circumstances to exist: (i) that the inventory contains goods, wares, or merchandise not purchased by the applicant for resale on bona fide orders without cancellation privileges; (ii) that the inventory contains goods, wares, or merchandise purchased by the applicant on consignment; (iii) that the applicant, either directly or indirectly, and within 1 year prior to the date of the filing of the application, has conducted a sale in connection with which he advertised or represented that the entire business conducted at the particular location was to be closed out or terminated; (iv) that the applicant was granted a prior license hereunder within 1 year preceding the date of the filing of the application, where such prior license was based upon an application setting forth that the entire business conducted at a particular location was to be closed out or terminated; (v) that the applicant has theretofore been convicted of a violation of this subtitle; (vi) that the goods, wares, or merchandise as described in the inventory were transferred or assigned to the applicant prior to the date of the filing of the application and that the transfer or assignment was not made for a valuable and adequate consideration; or (vii) that the inventory contains goods, wares, or merchandise purchased by the applicant or added to the applicant’s stock in contemplation of the sale and for the purpose of selling them at the sale. (2) For purposes of item (vii), any unusual purchase or additions to the stock of such goods, wares, and merchandise made within 60 days prior to the date of the filing of such application shall be presumptive evidence that such purchase or additions were made in contemplation of such sale and for the purpose of selling the same at such sale. (Ord. 04-672; Ord. 51-068.)

Baltimore City Code, Article 2, § 6-9 Grant of license; conditions.

§ 6-9. Grant of license; conditions. (a) In general. The licensor shall issue a revocable numbered permit to the applicant, authorizing said applicant to advertise and conduct the sale as described in said application, when it appears to the licensor: (1) that all of the statements in the application are true and that the said proposed sale is of the character as represented therein; (2) that the conduct of such sale will not be injurious to the peace, health, safety, and welfare of the public of the City of Baltimore; (3) that the application is in full compliance with the terms and conditions of this subtitle; and (4) that the required license fee has been paid. (b) Conditions of license. The license shall be issued on the following terms: (1) such license shall authorize the 1 type of sale as named and described in the application therefor at the place named therein and by the particular licensee for a period of not more than 30 consecutive calendar days (Sundays and legal holidays excluded) following the issuance of said license; (2) the sale authorized by said license shall be limited to the sale of goods, wares, and merchandise described in the inventory attached to the application; (3) on commencement of the sale and for its duration the license shall be prominently displayed in the store premises by the licensee; and (4) suitable books and records of the sale shall be kept by the licensee on the store premises for the duration of the sale and shall be open for inspection by the licensor or the licensor’s authorized representative. (c) Violation of conditions prohibited. (1) The violation of any of the conditions of said license as above set forth shall be unlawful and shall render said license void. (2) Each sale of goods, wares, or merchandise not inventoried or described in said application shall constitute a separate offense under this subtitle. (Ord. 04-672; Ord. 51-058.)

Baltimore City Code, Article 2, § 6-10 License fee.

§ 6-10. License fee. The fee for the license to conduct a “Going Out of Business Sale”, as provided in this subtitle, shall be $100, payable to the Director of Finance. (Ord. 90-505; Ord. 77-390; Ord. 51-058.)

Baltimore City Code, Article 2, § 6-11 License renewal.

§ 6-11. License renewal. (a) One-time renewal allowed. The licensor may, upon a verified application therefor, renew a license issued under the provisions of this subtitle for 1 period of time only in addition to the 30 days permitted in the 1st application for license. (b) Limitations; conditions. (1) The renewal period which can be granted by the licensor shall not exceed 30 consecutive days (Sundays and legal holidays excluded). (2) Aforesaid renewal shall not be granted until the applicant has filed with the licensor a revised inventory showing the items listed on the original inventory remaining unsold. (3) And said inventory shall not include any goods, wares, or merchandise not included in the original license application and inventory. (c) Renewal fee. The fee for this renewal of license shall be $50 payable to the Director of Finance. (Ord. 25-013 Section 1; Ord. 77-390; Ord. 51-058.)

Baltimore City Code, Article 2, § 6-12 Location of sale.

§ 6-12. Location of sale. A “Going Out of Business Sale”, as provided for in this subtitle, shall be held only upon the premises where the business to be licensed has been conducted for 1 year last past; except, however, those cases in which the landlord forces the owner or owners of the business to vacate the premises before the “Going Out of Business Sale” can be held, and except sales conducted by the heirs, devisees or legatees of the deceased owner of the business. (Ord. 51-058.)

Baltimore City Code, Article 2, § 6-13 Revocation of license.

§ 6-13. Revocation of license. Upon written complaint being filed with the licensor, or upon the initiative of said licensor, after making an investigation the licensor may revoke any license granted under the provisions of this subtitle (1) if the licensor shall determine that any sale by the licensee is conducted in violation of any of the provisions of this subtitle; (2) if the licensee has made any material misstatement in his application for said license; (3) if the licensee has failed to include in the inventory required by the provisions of this subtitle the goods, wares, or merchandise required to be contained in such inventory; or (4) if the licensee has added or permitted to be added to said sale, any goods, wares, or merchandise not described in the original application and inventory. (Ord. 51-058.)

Baltimore City Code, Article 2, § 6-14 Judicial and appellate review.

§ 6-14. Judicial and appellate review. (a) Judicial review. A person aggrieved by the denial or revocation of a license under this subtitle may seek judicial review of that action by petition to the Circuit Court for Baltimore City in accordance with the Maryland Rules of Procedure. (b) Appellate review. A party to the judicial review may appeal the court’s final judgment to the Court of Special Appeals in accordance with the Maryland Rules of Procedure. (Ord. 19-332; Ord. 04-672; Ord. 51-058.)

Baltimore City Code, Article 2, § 6-15 Penalties.

§ 6-15. Penalties. (a) In general. Any person who violates any provision of this subtitle, upon conviction thereof, shall be punished by a fine of not less than $100 nor more than $500. (b) Each violation a separate offense. Each violation shall be considered a separate offense. (Ord. 51-058.)

Source: City of Baltimore Department of Legislative Reference, City of Baltimore Law Library (codes.baltimorecity.gov; Open Law Library bulk XML)URL: https://codes.baltimorecity.gov/us/md/cities/baltimore/code/2/6Fetched: 10/25/2026