G-749 - 05/11/2004 - FINES - OrdinancesORDINANCE 2004 -BS- SALES- RR -EX1 -G -749
PAMPHLET
FRONT OF PAMPHLET
AN ORDINANCE AMENDING TITLE 4 ( "BUSINESS LICENSE
REGULATIONS ") TO INCLUDE A NEW CHAPTER 9 ( "FRAUDULENT SALES ")
IN THE VILLAGE CODE OF THE VILLAGE OF OAK BROOK
PUBLISHED IN PAMPHLET FORM THIS 12th DAY OF May , 2004, BY ORDER OF THE
CORPORATE AUTHORITIES OF THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES,
ILLINOIS. —,
illage Clerk
ORDINANCE 2004 -BS- SALES- RR -EX1 -G -749
AN ORDINANCE AMENDING TITLE 4 ( "BUSINESS AND LICENSE
REGULATIONS ") TO INCLUDE A NEW CHAPTER 9 ( "FRAUDULENT SALES")
IN THE VILLAGE CODE OF THE VILLAGE OF OAK BROOK
WHEREAS, the Village Clerk has recommended an amendment to Title 4 ( "Business and License
Regulations ") to include a new Chapter 9 ( "Fraudulent Sales ") in the Village Code of the Village of Oak
Brook ( "Village "), and
WHEREAS, the Community Development Department has requested that the Village Clerk
include licensing of Going Out of Business Sales within the Village to prevent the occurrence of fraudulent
sales within the Village; and
WHEREAS, the State of Illinois previously has enacted the "Fraudulent Sales Act" (P A. 86 -1324,
815 ILCS 350/) requiring a license for "Going Out of Business Sales ", and
WHEREAS, the President and Board of Trustees of the Village deem it advisable and in the best
interest and in furtherance of the general welfare of the citizens of the Village that the Village Code be
amended by including said Fraudulent Sales Act into the Village Code;
NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF
THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, ILLINOIS as follows -
Section 1 r Title 4 of the Village Code is hereby amended to include a new Chapter 9, attached
hereto and made a part hereof as Exhibit A.
Section 2: This Ordinance shall be in full force and effect from and after its passage, approval
and publication as required by law
Section 3- All ordinances or parts thereof in conflict with the provisions of this ordinance are
hereby repealed to the extent of such conflict
Ayes.
Nays
APPROVED THIS 11th day of May, 2004
Villa President
PASSED THIS 11th day of May, 2004
Trustees Aktipis, Caleel, Craig, Korin, Yusuf and Zannis
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EXHIBIT A
Chapter 9
FRAUDULENT SALES
SECTION-
4 -9-
1: Definitions
4 -9-
2- License Required
4 -9-
3- License Application
4 -9-
4 License
4 -9-
5 Village Clerk Records
4 -9-
6 Unlawful Acts
4 -9-
7 Time of Sale
4 -9-
8 Advertisement
4 -9-
9 Change in Inventory
4 -9 -10 Penalty
4 -9 -1 - DEFINITIONS: The following words and phrases shall have the meanings respectively ascribed to
them by this Section
GOING OUT OF BUSINESS SALE Any sale, whether described by such name or by any other name
(such as, but not limited to, "closing out sale ", "liquidation sale ",
"lost our lease sale ", "forced to vacate sale "), held in such a
manner as to induce a belief that upon disposal of the stock of
goods on hand, the business will cease and be discontinued at
the premises where the sale is conducted
GOODS Includes all goods, wares, merchandise and other personal
property, excepting choses in action and money
PERSON- Includes a person, firm, corporation, partnership, association or
two (2) or more persons having a point or common interest
REMOVAL SALE- Any sale held in such a manner as to induce a belief that upon
disposal of the stock of goods on hand, the business will cease
and be discontinued at the premises where the sale is
conducted, and thereafter will be moved to and occupy another
location.
4 -9 -2 LICENSE REQUIRED:
No person shall directly or indirectly advertise or cause to be advertised, represent or cause to be
represented, or hold out to the public in any manner that any sale of goods is an insurance, salvage,
removal, going out of business, insolvent's, assigner's, or creditor's sale of goods, or that it is a sale of
goods which have been damaged by fire, smoke, water or otherwise within the Village of Oak Brook,
unless such person shall first have obtained a license to conduct such sale under one of such descriptive
names, from the Village Clerk of the Village of Oak Brook, provided however, that this shall not apply to
any sales directly ordered by any court or referee in bankruptcy, or to any person acting under the
direction and supervision of state or federal courts in the course of their official duties, provided further,
that this shall not apply to any sales by a person regularly engaged in insurance or salvage sales of
goods, or sale of goods which have been damaged by fire, smoke, water or otherwise, who acquired the
goods for the account of others as a result of fire or other casualty
4 -9 -3 LICENSE APPLICATION.
Any applicant for such a license shall file an application in writing and under oath with the Village Clerk
setting out the following facts and information regarding such a proposed sale.
A The name and address of the applicant for the license, who must be the owner of the goods
to be sold, and in addition, if the applicant is a partnership, corporation, firm or association,
the name and position of the individual filing such application.
B The name and style in which such sale is to be conducted and the address where such sale
is to be conducted
C The dates and period of time during which the sale is to be conducted
D The name and address of the person or persons who will be in charge of and
responsible for the conduct of such sale
E A full explanation with regard to the condition or necessity which is the occasion for such
sale, including a statement of the descriptive name of the sale and the reasons why such
name is truthfully descriptive of the sale If the application is for a license to conduct a going
out of business sale, it shall also contain a statement that the business will be discontinued at
the premises where the sale is to be conducted upon termination of the sale If the
application is for a license to conduct a removal sale, it shall also contain a statement that the
business will be discontinued at the premises where the sale is to be conducted upon
termination of the sale, in addition to the location of the premises to which the business is to
be moved. If the application is for a license to conduct a sale of goods damaged by fire,
smoke, water or otherwise, it shall also contain a statement as to the time, location and cause
of such damage.
F A full, detailed and complete inventory of the goods that are to be sold, which
inventory shall.
(i) itemize the goods to be sold and contain sufficient information concerning each item,
including make and brand name, if any, to clearly identify it,
(ii) list separately any goods which were purchased during a sixty (60) day period
immediately prior to the date of making application for the license, and
(iii) show the cost price of each item in the inventory together with the name and address
of the seller of the item to the applicant, the date of the purchase, the date of the
delivery of each item to the applicant and the total value of the inventory at cost.
G A statement that no goods will be added to the inventory after the application is made or
during the sale and that the inventory contains no goods received on consignment.
H. A statement that the applicant has in the past maintained a place of business within the
Village of Oak Brook for not less than four (4) months prior to the time of making application
for such license However, this subparagraph shall not apply to any applicant who acquired a
right, title or interest in the goods as
(i) An heir, legatee or surviving Joint tenant, or
(ii) An executor, administrator, trustee, or guardian, or
(iii) Pursuant to an order or process of a court of competent jurisdiction
I The application for license shall be subscribed and sworn to under oath by the applicant and
shall, directly above the space reserved for the signature of the applicant, contain the
following legend in at least 10 point bold type "Warning to applicant This application must be
fully and accurately completed False or misleading statements may subject applicant to the
penalties of perjury in addition to other penalties provided by law."
4 -9 -4 LICENSE:
The Village Clerk, upon receipt of an application giving fully and completely the information under oath as
required above and upon receipt of the fee hereinafter provided for, shall issue a license to the applicant
therefor authorizing such applicant to advertise, represent, and to sell the particular goods so inventoried
at the time and place stated in the application and in accordance with these provisions The license shall
be issued in duplicate and shall bear a number and date of its expiration. A license issued under this
Ordinance shall be granted and valid only for the sale of the inventories goods which are the property of
the licensee Such license shall apply only to the premises specified in the application, and it may not be
transferred or assigned. If a licensee is engaged in business in other locations, advertising or offering of
goods on behalf of such locations shall not represent or imply any participation in or cooperation with the
sale on the premises specified in the license, nor shall any advertising or any other offering of goods on
behalf of the premises where the licensed sale is being conducted represent or imply any participation in
or cooperation with such sale at other locations. No license shall be issued to any person.
A To conduct a sale in the trade name or style of a person in whose goods the applicant for the
license has acquired a right or title thereto within six (6) months prior to the time of making
application for such a license,
B To continue a sale in the name of a licensee under this Ordinance in whose goods such person
acquired a right or title while such a sale is in progress; or
C. To conduct a sale, other than an insurance sale, a salvage sale or a sale of damaged goods, on
the same premises within one year from the conclusion of a prior sale of the nature covered by
this section
The previous sentence, including subparts A, B and C., thereof, shall not apply to any person who
acquired a right, title or interest in goods as an heir, legatee or pursuant to an order or process of a court
of competent Jurisdiction.
4 -9 -5 VILLAGE CLERK RECORDS.
The Village Clerk shall endorse upon each such application the date of its filing and shall preserve it, and
the inventory attached to it, as a public record of his office, and shall make a notation of it in a book to be
kept for that purpose, properly indexed, showing the name of the applicant, the date of the application,
the descriptive name of the proposed sale, the place where such sale is to be conducted, its duration, the
date of the license issued thereon, and the total value of the goods thus to be sold A copy of the
inventory shall be available for public inspection in the office of the Village Clerk
4 -9 -6 UNLAWFUL ACTS
It shall be unlawful for any person to advertise, or otherwise to represent, for sale, or to sell, any goods at
a bankruptcy, executor's, administrator's, receiver's or trustee's sale, except pursuant to, and in
compliance with, federal or state statutory authority or Judicial process, or as an assignee's or insolvent's
sale except when there is a bona fide assignment for the benefit of creditors.
4 -9 -7- TIME OF SALE:
A license to conduct a sale issued pursuant to this Ordinance shall not be issued or valid for a period
more than sixty (60) days from the start of such date, and such sale may be conducted only during the
period set forth in such license; provided, however, that such license may be renewed once only for a
period not to exceed thirty (30) days upon affidavit of the licensee that the goods listed in the inventory
have not been disposed of and that no new goods have been or will be added to the inventory previously
filed pursuant to this section by purchase, acquisition on consignment or otherwise The application for
renewal of the license shall be made not more than fourteen (14) days prior to the time of the expiration of
the license and shall contain a new inventory of the goods remaining on hand at the time the application
for renewal is made, which new inventory shall be prepared and furnished in the same manner and form
as the original inventory No renewal shall be granted if any goods have been added to the stock listed in
the inventory since the date of the issuance of the license A fee of $75 00 shall accompany an
application for a license and for the renewal of a license
4 -9 -8. ADVERTISEMENT:
A copy of the application for a license to conduct a sale under this Ordinance, including the inventory filed
therewith, shall be posted in a conspicuous place in the sales room or place where the inventoried goods
are to be sold, so that the public may be informed of the facts relating to the goods before purchasing
same, provided, however, that such copy not show the purchase price of the goods The duplicate copy
of a license issued hereunder shall be attached to the front door of the premises where the sale is
conducted in such a manner that it be clearly visible from the street Any advertisement or announcement
published in connection with the sale shall conspicuously show on its face the number of the license and
the date of its expiration.
4 -9 -9 CHANGE IN INVENTORY.
Any substitution for or addition to goods described in an inventory filed pursuant to this section or any
change in the time or place for a sale conducted pursuant to this section shall be unlawful and shall void
any license issued to conduct a sale pursuant to this Ordinance and such license shall cease to apply to
such sale. In the case of a sale of goods damaged by fire, smoke, water or otherwise, or in the case of an
insurance sale or a salvage sale, the goods to be sold at such sale shall be clearly and distinctly
segregated, marked or identified, and advertised, if at all, so that both on display and in advertising such
goods may be readily distinguished from other stocks, and their identity readily ascertained Any
commingling of such goods with other stocks of the licensee in such a manner as to cause the goods to
lose their separate identity, either on display or in advertising, shall be unlawful and shall void any license
issued to conduct such a sale pursuant to this Ordinance and such license shall cease to apply to such
sale.
No person in contemplation of conducting any going out of business, removal, assignee's or creditor's
sale, or during the continuance of such a sale, shall order or purchase any goods for the purpose of
selling them at such sale, and any unusual purchase, or additions to the stock of such goods within sixty
(60) days before the filing of such application for a license to conduct such a sale, shall be presumptive
evidence that such purchases or additions were made in contemplation of such sale and for the purpose
of selling them at such sale.
4 -9 -10 PENALTY
A Any person, including both the applicant and an individual filing on behalf of an applicant, who
shall procure from the Village Clerk a license to conduct a sale under the description of one of the
names set out in Section 3 hereof which name shall be a misrepresentation of the true description
or character of such sale or of the kind or condition of goods to be sold under such license, or any
such person violating any of the other provisions of this Ordinance shall be treated as an
infraction, and shall, upon conviction, be punishable as set forth in Section 1 -3 -1 of this Code
Each false statement of fact in an application or inventory required to be filed hereunder shall
constitute a separate offense under this Ordinance Each day that a violation continues shall
constitute a separate offense
B In addition to any criminal enforcement, the Village or any individual may pursue any available
civil remedies deemed appropriate and necessary
ORDINANCE 2004 -BS- SALES- RR -EX1 -G -749
PAMPHLET
BACK OF PAMPHLET
AN ORDINANCE AMENDING TITLE 4 ( "BUSINESS LICENSE
REGULATIONS ") TO INCLUDE A NEW CHAPTER 9 ( "FRAUDULENT SALES ")
IN THE VILLAGE CODE OF THE VILLAGE OF OAK BROOK
PUBLISHED IN PAMPHLET FORM BY ORDER OF THE CORPORATE AUTHORITIES OF THE
VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, ILLINOIS.