CLOSING-OUT SALES; DISTRESSED-MERCHANDISE SALES

Columbus City Codes tit. 5, ch. 535

in effect

Columbus City Codes § 535.01 Definitions.

535.01 - Definitions. Unless a different meaning is clearly indicated by the context in which the word is used, for purposes of this chapter, the following words are defined and shall have the meaning ascribed to them as hereafter set forth: (a) "Section" means the License Section. (b) "Closing-out sale" means any offer to sell to the public, or sale to the public, of goods, wares or merchandise upon the implied or direct holding out or representation that such sale is in anticipation of the ceasing, discontinuance and termination of a business at its present location. (c) "Distressed-merchandise sale" means any offer to sell to the public, or sale to the public, of goods, wares or merchandise upon the implied or direct holding out or representation that such sale is being conducted under any one, or combination, of the following circumstances, whether or not such sale is in anticipation of the cessation of business: (1) That such goods, wares or merchandise were acquired from a person who has terminated business or is in the process of terminating business. (2) That such goods, wares or merchandise were acquired from another store of the person conducting the sale at which the person has terminated business or is in the process of terminating business. (d) "Goods" means any goods, wares, merchandise or other property capable of being the object of a closing-out sale or a distressed-merchandise sale. (e) "Shall" is always mandatory and never directory. (f) "Director" shall mean the Director of the Department of Building and Zoning Services, or their designee. (Ord. 517-77; Ord. No. 2019-2021, § 1, 7-26-2021; Ord. No. 0768-2024, § 3, 3-18-2024)

Columbus City Codes § 535.02 Columbus sale commission.

535.02 - Columbus sale commission. There is created the Columbus sale commission to be composed of three persons appointed by the mayor with the advice and consent of council, to serve, without compensation for a term of three years, and who shall have such duties and powers as set forth in this chapter, and as may from time to time be prescribed by ordinance. The commission shall select one of its members to act as chairperson at its first meeting subsequent to July first of each year. The license section shall be secretary to the commission and may attend all meetings of the commission, keep a record thereof, enter into the discussion of any matter being considered by the commission, and perform such duties relative to closing-out sales and distressed-merchandise sales as may be authorized by the commission. The mayor shall appoint three (3) electors as members of the commission; one to serve until July 1, 1958; one to serve until July 1, 1959; and one to serve until July 1, 1960. Thereafter, the appointed members of the commission shall serve three (3) year terms and until their successors are appointed and qualified. (Ord. 517-77; Ord. No. 2019-2021, § 1, 7-26-2021; Ord. No. 0768-2024, § 3, 3-18-2024)

Columbus City Codes § 535.03 License required.

535.03 - License required. (a) No person shall advertise or conduct a closing-out sale or sell or offer to sell any goods at a sale advertised or represented by any means to be a closing-out sale without first obtaining a license to conduct a closing-out sale from the license section, nor continue a closing-out sale after the expiration of such license. (b) No person shall advertise or conduct a distressed-merchandise sale or sell or offer to sell any goods at a sale advertised or represented by any means to be a distressed-merchandise sale without first obtaining a license to conduct a distressed-merchandise sale from the license section, nor continue a distressed-merchandise sale after the expiration of such license, provided that this division (b) shall not apply to any person conducting a sale pursuant to a closing-out sale license issued under this chapter. (Ord. 517-77; Ord. No. 0768-2024, § 3, 3-18-2024)

Columbus City Codes § 535.04 Application for closing-out sale.

535.04 - Application for closing-out sale. Any person desiring to conduct a closing-out sale shall make written application to the license section on any such form as may be prescribed by the Columbus sale commission. Such application shall be verified by the applicant before a person authorized to administer oaths and shall contain the following information and such other information as the Columbus sale commission may deem necessary: (a) The name and address of the owner of the goods to be the object of the sale and the name and address of the operator of such sale, if other than the owner. (b) The name and address of the persons from whom the goods were purchased or acquired and the terms, conditions and date of such purchase or acquisition. (c) A description of the place where such sale is to be held. (d) The nature of the occupancy of the place where such sale is to be held, whether by lease or otherwise, and the effective date of termination of such occupancy. (e) A full and complete statement of the facts regarding the proposed closing-out sale, including the reason why such sale is to be conducted, and the dates of commencement and termination of such sale. (f) The means to be employed in advertising and publicizing such sale including the content of any proposed advertisement or publicity. (g) A complete and detailed inventory of the goods on hand or on order and not yet received to be sold at such sale as disclosed by the applicant's records which inventory shall include only goods purchased by the applicant for resale on bona fide orders without cancellation privileges and shall not include goods purchased on consignment or goods ordered in contemplation of conducting such sale. Any unusual purchase or additions to the stock of goods within the thirty (30) days prior to the filing of the application shall be prima facie evidence that such purchase or addition was made in contemplation of such sale and for the purpose of selling the sale at such sale. No person or official shall disclose the contents of such inventory, except as may be necessary in the administration and enforcement of this chapter. (h) A statement of the total retail value of the inventory submitted in accordance with division (g). (i) An itemized listing of any goods on hand at the premises of the sale which are not to be included in the sale including any goods on order but not yet received. (j) A detailed explanation of the disposition to be made of the business and the premises upon the termination of the sale. (Ord. 517-77; Ord. No. 0768-2024, § 3, 3-18-2024)

Columbus City Codes § 535.05 Application for distressed-merchandise sale.

535.05 - Application for distressed-merchandise sale. Any person desiring to conduct a distressed-merchandise sale shall make written application to the license section on any such form as may be prescribed by the Columbus sale commission. Such application shall be verified by the applicant before a person authorized to administer oaths and shall contain the following information and such other information as the Columbus sale commission may deem necessary: (a) The name and address of the owner of the goods to be the object of the sale and the name and address of the operator of such sale, if other than the owner. (b) The name and address of the persons from whom the goods were purchased or acquired and the terms, conditions, and date of such purchase or acquisition. (c) A description of the place where such sale is to be held. (d) A full and complete statement of the facts regarding the proposed distressed-merchandise sale, including the reason why such sale is to be conducted and an explanation of the conditions of the goods to be sold, and the dates of commencement and termination of such sale. (e) The means to be employed in advertising and publicizing such sale including the content of any proposed advertisement or publicity. (f) A complete and detailed inventory of the goods on hand or on order and not yet received to be sold at such sale as disclosed by the applicant's records. (g) A statement of the total retail value of the inventory submitted in accordance with division (f). (Ord. 517-77; Ord. No. 0768-2024, § 3, 3-18-2024)

Columbus City Codes § 535.06 License fees.

535.06 - License fees. Each applicant for a closing-out sale license or a distressed-merchandise sale license shall submit to the section of licenses with the application for such license, a license fee in an amount equal to three tenths ( 3/10) of one (1) per cent of the inventory value of the goods to be sold at the sale, but in no event shall the license fee be less than thirty dollars ($30.00). Any person submitting an application for a renewal of a closing-out sale license shall submit with such application a renewal license fee of fifty dollars ($50.00). (Ord. 517-77; Ord. 868-03 § 1 (part); Ord. No. 2019-2021, § 1, 7-26-2021)

Columbus City Codes § 535.07 Investigation of applicant.

535.07 - Investigation of applicant. Upon the filing of an application for a closing-out license or a distressed-merchandise sale license, the license section may cause an investigation to be made of the facts contained therein and of the conduct of such sale to effectuate the purposes of this chapter. Upon completion of the investigation, the license section shall submit such application and the result of the investigation to the Columbus sale commission. The commission may cause such additional investigation to be made as it deems necessary. In the making of such investigation both the license section and the chairperson of the commission may compel the attendance of witnesses and administer oaths in connection with the taking of testimony in regard thereto. If it appears to the commission that all the statements in the application are true, that the proposed sale is of the character represented therein, that the application and the proposed sale is in full compliance with this chapter, and that the required license fee has been paid, the commission shall approve the issuance of the requested license to the applicant. After the approval of the issuance of either a closing-out sale license or a distressed-merchandise sale license, the license section shall forthwith issue such license to the applicant. (Ord. 517-77; Ord. No. 2019-2021, § 1, 7-26-2021; Ord. No. 0768-2024, § 3, 3-18-2024)

Columbus City Codes § 535.08 Refusal of license.

535.08 - Refusal of license. (a) No closing-out sale license shall be issued if the commission finds any one or more of the following facts or circumstances to exist: (1) That the inventory contains goods not purchased by the applicant for resale on bona fide orders without cancellation privileges. (2) That the inventory contains goods purchased by the applicant on consignment. (3) That the applicant either directly or indirectly within three years prior to the date of application conducted a sale in connection with which the applicant advertised or represented that the entire business conducted at the location designated in the application was to be closed out or terminated and such business was not closed out or terminated. (4) That the applicant was granted a license hereunder within one year preceding the date of application for a closing-out sale at the same location. (5) That the applicant has within five years preceding the date of application been convicted of a violation of the provisions of this chapter or has had a license issued pursuant to such sections revoked for good cause. (6) That the inventory of the goods to be sold at such sale contains goods purchased or added to the stock in contemplation of such sale and for the purpose of selling same at such sale. (7) That the applicant has not been in business at the location described in the application for at least one year prior to the date of application unless the applicant is the beneficiary, devisee, or legatee of a former owner of the business or unless it is determined by the Columbus sale commission that this requirement would work an extreme hardship upon the applicant. (8) That the applicant in the ticketing of goods for the sale has misrepresented the original retail price or value thereof. (9) That any representation made in the application is false. (10) That the applicant has sold the business or contemplated selling the business to another person who will continue the business at the same location upon the termination of the sale. (b) No distressed-merchandise sale license shall be issued if the commission finds any one or more of the following facts or circumstances to exist: (1) That the applicant has within five years preceding the date of application been convicted of a violation of the provisions of this chapter or has had a license issued pursuant to this chapter revoked for good cause. (2) That the applicant has not been in business at the location described in the application for at least one year prior to the date of application unless the applicant is the beneficiary, devisee, or legatee of a former owner of the business or unless it is determined by the Columbus sale commission that this requirement would work an extreme hardship upon the applicant. (3) That the applicant in the ticketing of goods for the sale has misrepresented the original retail price or value thereof. (4) That any representation made in the application is false. (Sec. 13.8; Ord. 391-58; Ord. No. 2019-2021, § 1, 7-26-2021)

Columbus City Codes § 535.09 Conditions of license.

535.09 - Conditions of license. A closing-out sale license issued hereunder shall authorize the applicant to conduct a closing-out sale at the location described therein for a period of thirty days. A distressed-merchandise sale license shall authorize the applicant to conduct a distressed-merchandise sale at the location described therein for a period of thirty days. Both such licenses shall be subject to the following conditions: (a) The sale shall be held only at the place named in the application and only by the licensee for a period of not more than thirty consecutive days (Sundays and legal holidays excluded unless the sale is conducted on such days), which period shall commence not more than ten days after the issuance of the license. If an applicant desires to conduct a sale at more than one location, a separate license must be obtained for each location. (b) Only the goods described in the inventory filed with the application shall be sold at the sale. (c) The license issued hereunder shall be prominently displayed throughout the duration of such sale. (d) The licensee shall keep suitable books during the sale, at the location of the sale, in which shall be made daily entries showing: (1) The dollar amount of retail sales. (2) The dollar amount of mark-downs, (without limiting the meaning of the term "mark-down," the difference between retail and wholesale price of goods wholesaled by licensee shall be considered a markdown). (3) The dollar amount of wholesale sales. Copies of such daily entries shall be sent to the auditor weekly, and all books of the licensee shall be open for inspection by the auditor or a representative during business hours. (Sec. 13.9; Ord. 391-58; Ord. No. 2019-2021, § 1, 7-26-2021)

Columbus City Codes § 535.10 License revocation.

535.10 - License revocation. The license section shall revoke any license whether a closing-out sale license or distressed-merchandise sale license, issued pursuant to this chapter if the license section finds that the licensee has: (a) Violated any of the provisions of this chapter; (b) Made any material misrepresentation in the application; (c) Failed to include in the inventory filed with the application all the goods being offered for sale; (d) Offered or permitted to be offered at said sale any goods not included in the inventory filed with the application; (e) Failed to keep suitable records of said sale; or (f) Made or permitted to be made any false or misleading statements or representations in displaying, ticketing or pricing goods offered at such sale, or in advertising such sale. (Ord. 517-77; Ord. No. 2019-2021, § 1, 7-26-2021; Ord. No. 0768-2024, § 3, 3-18-2024)

Columbus City Codes § 535.11 License renewal.

535.11 - License renewal. The license section may upon application therefor and payment of the requisite fee, renew a closing-out sale license issued under this chapter for an additional period of twenty days if the licensee upon the termination of such sale intends to discontinue business in the city and if the licensee has not sold substantially all the goods listed in the inventory filed with the original application. Such facts shall be sworn to by the applicant in the appropriate place on the application for renewal of the license. An application for renewal of a license shall be accompanied by an inventory listing all the goods listed in the inventory filed with the original application remaining unsold. Only such goods as were listed in the original inventory and listed in the inventory filed with the renewal application may be sold during the renewal period. (Ord. 517-77; Ord. No. 0768-2024, § 3, 3-18-2024)

Columbus City Codes § 535.12 Prohibited practices during and after closing-out sales.

535.12 - Prohibited practices during and after closing-out sales. (a) No person issued a closing-out sale license shall, during a closing-out sale: (1) Add any goods to the stock described in the inventory with the original application. (2) Sell, offer for sale, or permit to be offered for sale, any goods not listed in the inventory, with the representation, expressed or implied that such goods are being sold or offered for sale, at a closing-out sale. (3) Fail to keep any goods not listed in the inventory, separate and apart from the goods listed in the inventory, or fail to make such distinction clear to the public by appropriate tags, placed on all inventoried goods in and about the sale apprising the public of the status of all such goods. (4) Fail to tag prominently all goods being offered for sale at a closing-out sale indicating both the true retail price of the goods and the price at which the goods are being offered for sale. (5) Misrepresent or permit to be misrepresented, the true retail price of any goods being offered for sale. (b) No person shall, after the termination of a closing-out sale or the revocation of a closing-out sale license, continue or permit to be continued the same business at the same location by any of the following: (1) The licensee or partner of the licensee under this chapter; (2) Any person related to the licensee by blood or marriage; (3) Any stockholder of a corporate licensee; (4) Any subsidiary or parent corporation of a corporate licensee; (5) Any corporation in which the licensee or any person related by blood or marriage to the licensee owns or controls twenty-five (25) per cent or more of the stock; (6) Any corporation in which stockholders of the corporate licensee or persons related by blood or marriage to the stockholders own or control an aggregate of twenty-five (25) per cent or more of the stock. (c) The Columbus sale commission shall have authority to permit the resumption of the same business, notwithstanding the provisions of this section, when, upon application by the licensee hereunder, the licensee satisfies the commission that the closing-out sale conducted hereunder and the resumption of the same business after such closing-out sale ceased, was based upon a bona fide change of circumstances beyond the control of the licensee and free of any fraud or misrepresentation. (Ord. 1579-61; Ord. No. 2019-2021, § 1, 7-26-2021)

Columbus City Codes § 535.13 Prohibited activities during distressed-merchandise sales.

535.13 - Prohibited activities during distressed-merchandise sales. No person issued a distressed-merchandise sale license shall during a distressed-merchandise sale: (a) Add any goods to the stock described in the inventory filed with the original application. (b) Sell, offer for sale, or permit to be sold or offered for sale, any goods not listed in the inventory with the representation express or implied that such goods are being sold or offered for sale at a distressed-merchandise sale. (c) Fail to keep any goods not listed in said inventory separate and apart from the goods listed in the inventory or fail to make such distinction clear to the public by appropriate tags placed on all inventoried goods in and about the place of sale apprising the public of the status of all such goods. (d) Fall to tag prominently all goods being offered for sale at a distressed-merchandise sale indicating both the true original retail price of said goods and the price at which the goods are being offered for sale. (e) Misrepresent or permit to be misrepresented the true original retail price of any goods being offered for sale. (f) Violate any of the provisions of this chapter or C.C.C. chapter 2939. (Ord. 517-77; Ord. No. 2019-2021, § 1, 7-26-2021; Ord. No. 0768-2024, § 3, 3-18-2024)

Columbus City Codes § 535.14 Exceptions.

535.14 - Exceptions. This chapter shall not apply to any sale conducted by a government agency, any sale conducted by an executor or administrator pursuant to an expressed order or process of a court of competent jurisdiction, or to any isolated sale conducted by a duly licensed auctioneer selling at auction, unless the auction sale is conducted for more than two days in any sixty day period. (Sec. 13.14; Ord. 391-58.)

Columbus City Codes § 535.15 Severability clause.

535.15 - Severability clause. If any portion of this chapter, or any section or part of a section is declared to be invalid by a court of competent jurisdiction, such declaration of invalidity shall be limited to that portion, section, or part of a section declared invalid. Any such declaration or invalidity shall not affect or impair the remainder of the chapter, and to this end the objectionable provisions are severable. (Ord. No. 0768-2024, § 3, 3-18-2024)

Source: City of Columbus, City Codes and City Charter (Municode Library, library.municode.com)URL: https://library.municode.com/oh/columbus/codes/code_of_ordinances?nodeId=TIT5BURELICO_CH535CLTSADIRCSAFetched: 10/27/2026