2023 New York Laws › GBS - General Business › Article 29-F - Going Out of Business Sales › 587 - Investigation of Application; Grounds for Denial; Revocation of License.

§ 587. Investigation of application; grounds for denial; revocation of
license. (a) Upon receipt of the application, the licensing authority of
the  appropriate  city, town or village in which such sale is to be held
may make or cause to be made an examination into any or  all  the  facts
contained  in  the application and inventory in relation to the proposed
sale. A license shall be denied or refused if any one  or  more  of  the
following facts or circumstances is found to exist:
(1)  That  the applicant is not the true owner of the goods, wares and
merchandise to be sold.
(2) That the  applicant  has  not  been  the  owner  of  the  business
advertised or described in the application for a license hereunder for a
period  of at least six months prior to the date of the application, or,
if the applicant be a corporation or association,  controlling  interest
in the corporation or association had been transferred within six months
prior to the date of the application for a license hereunder, except-
(i)  Where  the  application  is  for  a  license for a "sale of goods
damaged by fire, smoke, or water," or a "defunct business sale," and the
inventory listed in the application contains only those goods, wares  or
merchandise  which were on the premises at the time of the occurrence of
the circumstances warranting the granting of a license hereunder;
(ii) Upon the death of a person  doing  business  in  the  state,  the
representatives  of  his  estate,  or  his  or  her heirs, distributees,
devisees, legatees, or their successors and assignees,  shall  have  the
right to apply at anytime for a license hereunder;
(iii)  Where  a  business  is required or compelled to be discontinued
because the premises upon which it is being conducted have been taken by
eminent domain or because the premises must be vacated pursuant to legal
or judicial proceedings.
(3) That in the case of a "closing out sale," the applicant, either as
owner, partner, member of an association, or principal stockholder of  a
corporation,  was  granted  a  prior  license  hereunder within one year
preceding the date of the filing of the application, or  the  applicant,
within  one  year  prior  to  the date of 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 for which
the license is sought was to be closed out or terminated.
(4) That the  inventory  contains  goods,  wares  or  merchandise  not
purchased  by  the  applicant  for  resale  on  bona fide orders without
cancellation privileges.
(5) That the inventory contains goods, wares or merchandise  purchased
by the applicant on consignment, except if the consigned goods, wares or
merchandise   have   been   damaged  while  in  the  applicant's  actual
possession.
(6) That the applicant has within one year prior to the filing of  the
application been convicted of a violation of this act.
(7) 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 said transfer or assignment  was  not
made for a valuable and adequate consideration.
(8)  That  in  the case of a "closing out sale" or a "defunct business
sale," the inventory contains goods, wares or merchandise  purchased  by
the  applicant  or  added to his stock in contemplation of such sale and
for the purpose of selling the same at such sale. Any  unusual  purchase
or  addition  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.
(9) That any representation  made  in  the  application  is  knowingly
false.
(b)  Revocation.  The  licensing  authority  shall  revoke any license
granted under the provisions of this article if, after investigation, it
shall determine:
(1)  That  any sale by the applicant has been or is being conducted in
violation of any provision of this article, or;
(2) That the applicant has  made  any  material  misstatement  in  his
application for said license, or;
(3)  That  the  applicant  has  knowingly  failed  to  include  in the
inventory, filed with this application, all goods, wares or  merchandise
required to be contained in such inventory, or;
(4) That the applicant has added or permitted to be added to said sale
or  offered or permitted to be offered at said sale, any goods, wares or
merchandise not described in the original application and inventory, or;
(5) That the applicant  made  or  permitted  to  be  made  any  false,
misleading   or  deceptive  statements,  whether  written  or  oral,  in
advertising said sale, or in displaying, ticketing,  or  pricing  goods,
wares or merchandise offered for sale.
(c)  Any  complaint  filed with the licensing authority concerning any
violation of this article shall be in writing and duly verified  by  the
complainant.
(d)  If  the  licensing authority shall revoke any license pursuant to
the provisions  of  subsection  (b),  it  shall  serve  notice  of  such
revocation upon the licensee within twenty-four hours of the revocation.
Notice  of revocation shall be served on the licensee in the same manner
as a summons as prescribed by the civil practice law  and  rules  or  by
registered  or  certified mail, return receipt requested. The failure of
the licensee to discontinue said sale upon receipt of such notice  shall
constitute a violation of this article.