IC 25-18-1
Chapter 1. Licensing of Retail Distress Sales
IC 25-18-1-1 Definitions
Sec. 1. For the purpose of this chapter:
"Going out of business sale" is a sale held out, advertised or
otherwise represented to the public in such a manner as to cause the
public reasonably to believe that upon disposal of the stock of goods
on hand the business will cease and be discontinued, including but
not limited to the following sales: Insurance, salvage, closing out,
going out of business, liquidation, bankrupt, receiver's, mortgage,
insolvent, assignee's, executor's, administrator's, trustee's or creditor's
sale of goods, wares or merchandise.
"Removal of business sale" is a sale held out, advertised or
otherwise represented to the public in such a manner as to cause the
public reasonably to believe that the person, firm, limited liability
company, corporation, or association conducting the sale will cease
and discontinue business at the place of sale upon disposal of the
stock of goods on hand and will then move to and resume business
at a new location.
"Fire or other altered goods sale" is a sale held out, advertised or
otherwise represented to the public in such a manner as to cause the
public reasonably to believe that the sale will offer goods damaged
or altered by fire, smoke, water, vandalism or other similar means.
"Selling at retail" is the sale of tangible personal property to
ultimate users or consumers.
"Distress sale" shall mean a going out of business sale, a removal
of business sale or a fire or other altered goods sale or any
combination of the same.
"Goods" shall mean goods, wares, merchandise or other tangible
personal property. (Formerly: Acts 1965, c.271, s.1.) As amended by Acts 1982,
P.L.154, SEC.62; P.L.8-1993, SEC.386.
IC 25-18-1-2 Necessity of license; exceptions
Sec. 2. Unless a license for such sale has been issued and has
become effective in accordance with this chapter, no person, firm,
limited liability company, corporation, or association engaged in the
business of selling goods at retail 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 a going out of business, removal of business, or fire or other
altered goods sale, or that it is a sale of goods that have been
obtained through, as a result of, or by reason of any of the situations
and contingencies named in the definitions of going out of business
sale, removal of business sale and fire or other altered goods sale as
set forth in section 1 of this chapter; however, this chapter 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. (Formerly: Acts 1965, c.271, s.2.) As amended by Acts 1982,
P.L.154, SEC.63; P.L.8-1993, SEC.387.
IC 25-18-1-3 Application for license
Sec. 3. (a) Any person, firm, limited liability company,
corporation, or association required to obtain a license as provided
in section 2 of this chapter shall make to the clerk of the circuit court
for the county in which he proposes to conduct such going out of
business sale, or removal of business sale or fire or other altered
goods sale an application for such license in writing and under oath,
at least ten (10) days prior to the opening date of such sale. Such
application shall be submitted on paper sized eight and one-half (8½)
inches by eleven (11) inches in accordance with the following
general form setting out the following facts and information
regarding such proposed sale:
APPLICATION FOR LICENSE FOR
DISTRESS SALE
DATE OF APPLICATION: _______________
Applicant's Name: ______________________
Place of Proposed Sale: ___________________
Proposed Opening Date of Sale: _______________
Date of Establishment of Business
at Present Location: _____________________
TYPE OF SALE (CHECK):
[] GOING OUT OF BUSINESS SALE
[] REMOVAL OF BUSINESS SALE
[] FIRE OR OTHER ALTERED GOODS SALE
1. Reason for sale:
(A full explanation with regard to the insurance, salvage, removal,
closing out, going out of business, liquidation, bankruptcy,
receivership, mortgage, insolvency, assignment, executor's,
administrator's, trustee's, creditor's, or other necessity which is the
occasion for such sale, or
If the sale is to be conducted as a sale of goods damaged or altered
by fire, smoke, water, vandalism or otherwise, then a statement as to
the time, location, and circumstances of such damage.)
2. Name of owner or owners of goods if other than the applicant:
3. Prior distress sales:
(A statement of the dates and locations of all going out of
business sales, removal of business sales and fire or other altered
goods sales conducted during the three (3) years preceding the
proposed sale by the applicant or by any person, firm, limited
liability company, corporation, or association related or affiliated
with the applicant.)
Oath. Such application shall bear the following oath which shall
be subscribed and sworn to before a notary public: " ____________
(name of affiant), being first duly sworn, upon his oath states that the
matters and facts set forth in this application and in the inventory
filed with this application are true and correct."
For the purpose of determining related or affiliated persons, firms,
corporations, limited liability companies, or associations under this
chapter, the following standards shall apply:
(1) A person shall be deemed related to his spouse and to all
persons related within the third degree of consanguinity to him
or to his spouse.
(2) Persons shall be deemed related to firms, limited liability
companies, corporations, and associations; and firms, limited
liability companies, corporations, and associations shall be
deemed related to persons, if such persons, or persons related to
them, possess more than a ten per cent (10%) ownership interest
in the firm, limited liability company, corporation, or
association.
(3) Firms, limited liability companies, corporations, or
associations shall be deemed related if they have in common a
person, group of related persons, firm, limited liability
company, corporation, or association possessing more than ten
per cent (10%) ownership in each.
(4) The ownership interest for purposes of this chapter shall be
determined as of the dates of any sales hereby required to be
stated.
(b) A full detailed and complete inventory of the goods that are to
be sold shall be filed with the application on the following form
which shall be typewritten or printed legibly and submitted on paper
sized eight and one-half (8 1/2) inches by eleven (11) inches:
INVENTORY FOR DISTRESS SALE
Name of Retailer: __________________________________
Place of Sale ________________________________ Quantity
Description Unit Price Per
Unit Total Amount
(Each type of goods shall be described on a separate line as it was
described on the invoice of purchase by the applicant and the goods
shall be valued at their sale prices.)
(c) All such invoices of purchase by the applicant shall be
retained by the applicant during the sale and for sixty (60) days
following the conclusion of the sale, shall be open to public
examination and shall be admissible in evidence in any court
proceeding under this chapter. It shall be a violation of this chapter
to destroy or otherwise dispose of such invoices during the period of
retention required by this chapter or to destroy or otherwise dispose
of such invoices for purposes of evading the requirements of this
chapter. If there was no invoice for any goods to be sold, or if the
invoice has previously been destroyed, the applicant shall so state,
and shall describe the goods with reasonable specificity according to
the customary description of the type of goods on the invoice of
purchase by a retailer. (Formerly: Acts 1965, c.271, s.3.) As amended by Acts 1982,
P.L.154, SEC.64; P.L.8-1993, SEC.388; P.L.4-1994, SEC.9.
IC 25-18-1-4 Effective period for license
Sec. 4. (a) The clerk of the circuit court shall note on the license
the effective date thereof, which shall be not less than ten (10) days
nor more than fifteen (15) days from the date of the issuance of the
license. At the time of the issuance of the license, the applicant shall
be entitled to select the effective date within such five (5) day period.
(b) A license issued under this chapter, unless renewed as
provided in section 9 of this chapter, shall expire and shall be null
and void sixty (60) days after the effective date thereof, as noted on
the license, Sundays and holidays excluded. No distress sale for
which a license has been granted shall be continued as a distress sale
after the expiration of the license. (Formerly: Acts 1965, c.271, s.4.) As amended by Acts 1982,
P.L.154, SEC.65.
IC 25-18-1-5 Copy of inventory form; filing
Sec. 5. A copy of the completed inventory form shall be filed with
the clerk of the circuit court and shall be open to public inspection.
Such inventory forms shall be kept on file by the clerk for one (1)
year and thereafter may be destroyed. (Formerly: Acts 1965, c.271, s.5.) As amended by P.L.4-1994,
SEC.10.
IC 25-18-1-6 Issuance of license; license fee; contents of license
Sec. 6. (a) The clerk of the circuit court, upon receiving an
application for a license, shall examine the application to determine
if it is in due form. If the clerk shall be satisfied that the application
is in due form and that the proposed sale is of the character which the
applicant desires to advertise and conduct, the clerk shall issue a
license to the applicant authorizing him to advertise and conduct a
sale of the particular kind mentioned in the application upon the
payment of a fee as provided in IC 33-32-5-2.
(b) Such license may be issued by the clerk in typewritten letter
form or in printed form addressed to the applicant, one (1) copy
being retained by the clerk, and shall set forth the following
information and statements:
DISTRESS SALE LICENSE
In accordance with and subject to IC 25-18-1, (name of applicant)
is hereby licensed to conduct a distress sale for the following
purpose:
Going out of business sale []
Removal of business sale []
Fire or altered goods sale []
This license shall apply only to the sale of goods reported in the
inventory filed with the application for this license, which goods are
to be sold by the licensee at (place of sale _______), in _______,
Indiana. The effective date of this license shall be _______,
_______, and this license shall expire sixty (60) days from said date,
Sundays and holidays excluded.
Dated this ____ day of _________, ______.
____________ CLERK.
(Formerly: Acts 1965, c.271, s.6.) As amended by Acts 1982,
P.L.154, SEC.66; P.L.171-1984, SEC.8; P.L.98-2004, SEC.99.
IC 25-18-1-7 Record of license
Sec. 7. The clerk of the circuit court shall endorse upon each such
application the date of its filing and shall preserve 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, the date
of issuance of the license and the effective date thereof. (Formerly: Acts 1965, c.271, s.7.)
IC 25-18-1-8 Display of license
Sec. 8. A copy of the application, including the inventory, and
license as herein described, shall be posted at a location conspicuous
to the public in the place where such goods are to be sold so that the
public may be informed of the facts in relation to the goods before
purchasing same. (Formerly: Acts 1965, c.271, s.8.)
IC 25-18-1-9 Renewal
Sec. 9. A license may be renewed for an additional thirty (30) days,
Sundays and holidays excluded, if an application for renewal is filed
with the clerk prior to the expiration of such license but not sooner
than ten (10) days in advance of such expiration date; Provided,
however, That a license may be renewed only if more than two
hundred thousand dollars ($200,000) worth of goods were stated on
the inventory originally filed. Upon proper applications the clerk may
issue successive renewal licenses, one such renewal license for each
two hundred thousand dollars ($200,000) worth of goods as stated on
the inventory originally filed. A license shall be renewable only if in
respect to each renewal the clerk finds that facts exist justifying the
license renewal, that the licensee has filed an application for renewal,
that the licensee has submitted with the application for renewal a
revised inventory showing the items listed on the original inventory
remaining unsold and not listing any goods not included in the
original inventory, and that the licensee has paid an additional fee for
the renewal according to the schedule in section 4 based on the
revised inventory filed with the renewal application. The renewal
license shall be of the form prescribed in section 6, except that it
shall expire thirty (30) days from its effective date, Sundays and
holidays excluded, which shall be the expiration date of the prior
license. The application for a renewal license shall be under oath and
shall be of the same form as the application form prescribed in
section 3, except that it shall at the bottom set forth the facts
justifying the renewal. (Formerly: Acts 1965, c.271, s.9.)
IC 25-18-1-10 Addition to stock
Sec. 10. No person, firm, limited liability company, corporation, or
association, in contemplation of conducting any sale regulated by
this chapter, shall order any goods for the purpose of selling and
disposing of the goods at such sale. However, the prohibition of this
section shall not apply to the purchase of goods damaged or altered
by fire, smoke, water, vandalism or other similar means, or goods
purchased from a seller who has discontinued his business. In the
event of any unusual purchase or addition to the stock of goods
within sixty (60) days prior to the filing of the application for license
to conduct such sale, the burden in all civil or criminal litigation shall
fall upon the purchaser to show that such purchases and additions to
the stock were not made in contemplation of such sale or for the
purpose of selling the goods at such sale. (Formerly: Acts 1965, c.271, s.10.) As amended by Acts 1982,
P.L.154, SEC.67; P.L.8-1993, SEC.389.
IC 25-18-1-11 Identification of goods
Sec. 11. The license provided for herein shall be granted, and valid
only for the sale of inventoried goods which are the property of the
licensee. Commingling of additional or other goods with that shown
in the inventory in such a manner as to cause the merchandise
inventoried to lose its identity shall void any such license and be a
violation of this chapter. If the inventoried goods shall be put on sale
with other stock of goods of an established merchant, then the same
shall be considered and deemed to be commingled, unless it is clearly
and sufficiently segregated, marked or identified, and advertised so
that its identity may be readily distinguished from such other stock
of goods and its identity readily ascertained. (Formerly: Acts 1965, c.271, s.11.) As amended by Acts 1982,
P.L.154, SEC.68.
IC 25-18-1-12 Misstatement or omission in license
Sec. 12. Any license issued on the basis of an application or
containing any material misstatement or omission, or an inventory
not in compliance with this chapter shall be void and of no effect.
(Formerly: Acts 1965, c.271, s.12.) As amended by Acts 1982,
P.L.154, SEC.69.
IC 25-18-1-13 Violation of certain act; voiding license
Sec. 13. Any violation of IC 35-43 by a seller in connection with
a sale governed by this chapter also constitutes a violation of this
chapter and automatically voids any license authorizing such a sale. (Formerly: Acts 1965, c.271, s.13.) As amended by Acts 1978, P.L.2,
SEC.2535.
IC 25-18-1-14 Establishment of business to hold distress sale
Sec. 14. No license for a going out of business sale or a removal of
business, as provided in this chapter, shall be issued to any person,
firm, limited liability company, corporation, or association if such
business was established or relocated for the ultimate purpose of
holding such sale. For the purpose of this section, it shall be
presumed by the clerk that any business which has been maintained
at the sale location less than six (6) months was established for such
ultimate purpose. The applicant may in his application rebut such
presumption by establishing to the satisfaction of the clerk facts
showing that such business was not established for the ultimate
purpose of holding such distress sale. (Formerly: Acts 1965, c.271, s.14.) As amended by Acts 1982,
P.L.154, SEC.70; P.L.8-1993, SEC.390.
IC 25-18-1-15 Goods previously inventoried for distress sale
Sec. 15. Nothing in this chapter contained shall be construed as
authorization for the issuance of a license to a person, firm, limited
liability company, corporation, or association if the goods to be sold
or any part of them were goods inventoried in an application for a
license under this chapter, which license was issued within the
preceding year. (Formerly: Acts 1965, c.271, s.15.) As amended by Acts 1982,
P.L.154, SEC.71; P.L.8-1993, SEC.391.
IC 25-18-1-16 Limitations on issuance of license; three-year period
Sec. 16. (a) No license for a going out of business or a removal of
business sale shall be issued in respect to a proposed sale to be held
by the applicant if the applicant or any person, firm, limited liability
company, corporation, or association related to the applicant has
conducted a going out of business sale or removal of business sale at
the proposed sale location within the last preceding three (3) years.
(b) No license for a going out of business or a removal of business
sale shall be issued to any applicant if such applicant or any related
person, firm, limited liability company, corporation, or association
has conducted a going out of business or removal of business sale
within the last preceding three (3) years unless the business for
which such license is sought has been conducted for more than one
(1) year by the applicant or a related person, firm, limited liability
company, corporation, or association at the location of the proposed
sale.
(c) Any license obtained in violation of this section shall be void
and of no force and effect. (Formerly: Acts 1965, c.271, s.16.) As amended by P.L.8-1993,
SEC.392.
IC 25-18-1-17 Maintenance of records during sale
Sec. 17. Any licensee under this chapter shall keep suitable sales
records and books during the sale, at the location at which such sale
is conducted. Such records and books shall be open for inspection by
the clerk of the circuit court or the prosecutor for the county in which
the sale is conducted or the duly authorized representative of either
of them. (Formerly: Acts 1965, c.271, s.17.) As amended by Acts 1982,
P.L.154, SEC.72.
IC 25-18-1-18 Compliance with chapter; duties of clerk of court
Sec. 18. It shall be the duty of the clerk of the circuit court to see
that the provisions of this chapter are strictly complied with and to
report for prosecution all cases of violation of, or refusal or neglect
to comply with, such provisions. It shall be unlawful for any person,
firm, limited liability company, corporation, or association to whom
a license has been granted under this chapter to refuse to furnish said
clerk on demand or to any person designated by him for that purpose,
all the facts connected with the sale for which such license was
granted or any other information which he may require in the
enforcement of this chapter. (Formerly: Acts 1965, c.271, s.18.) As amended by Acts 1982,
P.L.154, SEC.73; P.L.8-1993, SEC.393.
IC 25-18-1-19 Misrepresentation
Sec. 19. A person who, in procuring from the clerk a license to
conduct a sale under this act, knowingly misrepresents the true
description or character of the sale, or the kind or condition of goods
to be sold, or who otherwise knowingly violates this chapter,
commits a Class A misdemeanor. (Formerly: Acts 1965, c.271, s.19.) As amended by Acts 1978, P.L.2,
SEC.2536.
IC 25-18-1-20
Repealed
(Repealed by Acts 1978, P.L.2, SEC.2570.) IC 25-18-1-21 Right to injunction or treble damages
Sec. 21. Any person injured by any violation of this chapter may
sue for such injury in the courts of any county in which the defendant
sells at retail, and obtain either injunctive relief against any sale
conducted in violation of this chapter or recover threefold the
damages sustained, or both, and such damages shall include a
reasonable attorney's fee. The fact of injury to the plaintiff but not
the amount thereof shall be conclusively presumed if it is established
that a violation has taken place and that the plaintiff and defendant
each were engaged in selling at retail within the same county at the
time of the claimed violation, and that the violation of this chapter
related to a sale conducted by the defendant in such county. (Formerly: Acts 1965, c.271, s.21.) As amended by Acts 1982,
P.L.154, SEC.74.
IC 25-18-1-22 Duties of prosecuting attorney
Sec. 22. It shall be the duty of the prosecuting attorney of any
county to prosecute any violation of this chapter. The prosecuting
attorney of any county may in the alternative seek injunctive relief
against any sale being carried on in violation of this chapter in a civil
action in any circuit or superior court of the county in which the
defendant is conducting such sale. The prosecuting attorney may
request and the court may, in its discretion, after a hearing, issue a
preliminary injunction, pending the determination of such civil
action, against continued representations to the public by the seller,
that the sale is a going out of business sale, removal of business sale,
or fire or other altered goods sale. (Formerly: Acts 1965, c.271, s.22.) As amended by Acts 1982,
P.L.154, SEC.75.
IC 25-18-1
Chapter 1. Licensing of Retail Distress Sales
IC 25-18-1-1 Definitions
Sec. 1. For the purpose of this chapter:
"Going out of business sale" is a sale held out, advertised or
otherwise represented to the public in such a manner as to cause the
public reasonably to believe that upon disposal of the stock of goods
on hand the business will cease and be discontinued, including but
not limited to the following sales: Insurance, salvage, closing out,
going out of business, liquidation, bankrupt, receiver's, mortgage,
insolvent, assignee's, executor's, administrator's, trustee's or creditor's
sale of goods, wares or merchandise.
"Removal of business sale" is a sale held out, advertised or
otherwise represented to the public in such a manner as to cause the
public reasonably to believe that the person, firm, limited liability
company, corporation, or association conducting the sale will cease
and discontinue business at the place of sale upon disposal of the
stock of goods on hand and will then move to and resume business
at a new location.
"Fire or other altered goods sale" is a sale held out, advertised or
otherwise represented to the public in such a manner as to cause the
public reasonably to believe that the sale will offer goods damaged
or altered by fire, smoke, water, vandalism or other similar means.
"Selling at retail" is the sale of tangible personal property to
ultimate users or consumers.
"Distress sale" shall mean a going out of business sale, a removal
of business sale or a fire or other altered goods sale or any
combination of the same.
"Goods" shall mean goods, wares, merchandise or other tangible
personal property. (Formerly: Acts 1965, c.271, s.1.) As amended by Acts 1982,
P.L.154, SEC.62; P.L.8-1993, SEC.386.
IC 25-18-1-2 Necessity of license; exceptions
Sec. 2. Unless a license for such sale has been issued and has
become effective in accordance with this chapter, no person, firm,
limited liability company, corporation, or association engaged in the
business of selling goods at retail 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 a going out of business, removal of business, or fire or other
altered goods sale, or that it is a sale of goods that have been
obtained through, as a result of, or by reason of any of the situations
and contingencies named in the definitions of going out of business
sale, removal of business sale and fire or other altered goods sale as
set forth in section 1 of this chapter; however, this chapter 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. (Formerly: Acts 1965, c.271, s.2.) As amended by Acts 1982,
P.L.154, SEC.63; P.L.8-1993, SEC.387.
IC 25-18-1-3 Application for license
Sec. 3. (a) Any person, firm, limited liability company,
corporation, or association required to obtain a license as provided
in section 2 of this chapter shall make to the clerk of the circuit court
for the county in which he proposes to conduct such going out of
business sale, or removal of business sale or fire or other altered
goods sale an application for such license in writing and under oath,
at least ten (10) days prior to the opening date of such sale. Such
application shall be submitted on paper sized eight and one-half (8½)
inches by eleven (11) inches in accordance with the following
general form setting out the following facts and information
regarding such proposed sale:
APPLICATION FOR LICENSE FOR
DISTRESS SALE
DATE OF APPLICATION: _______________
Applicant's Name: ______________________
Place of Proposed Sale: ___________________
Proposed Opening Date of Sale: _______________
Date of Establishment of Business
at Present Location: _____________________
TYPE OF SALE (CHECK):
[] GOING OUT OF BUSINESS SALE
[] REMOVAL OF BUSINESS SALE
[] FIRE OR OTHER ALTERED GOODS SALE
1. Reason for sale:
(A full explanation with regard to the insurance, salvage, removal,
closing out, going out of business, liquidation, bankruptcy,
receivership, mortgage, insolvency, assignment, executor's,
administrator's, trustee's, creditor's, or other necessity which is the
occasion for such sale, or
If the sale is to be conducted as a sale of goods damaged or altered
by fire, smoke, water, vandalism or otherwise, then a statement as to
the time, location, and circumstances of such damage.)
2. Name of owner or owners of goods if other than the applicant:
3. Prior distress sales:
(A statement of the dates and locations of all going out of
business sales, removal of business sales and fire or other altered
goods sales conducted during the three (3) years preceding the
proposed sale by the applicant or by any person, firm, limited
liability company, corporation, or association related or affiliated
with the applicant.)
Oath. Such application shall bear the following oath which shall
be subscribed and sworn to before a notary public: " ____________
(name of affiant), being first duly sworn, upon his oath states that the
matters and facts set forth in this application and in the inventory
filed with this application are true and correct."
For the purpose of determining related or affiliated persons, firms,
corporations, limited liability companies, or associations under this
chapter, the following standards shall apply:
(1) A person shall be deemed related to his spouse and to all
persons related within the third degree of consanguinity to him
or to his spouse.
(2) Persons shall be deemed related to firms, limited liability
companies, corporations, and associations; and firms, limited
liability companies, corporations, and associations shall be
deemed related to persons, if such persons, or persons related to
them, possess more than a ten per cent (10%) ownership interest
in the firm, limited liability company, corporation, or
association.
(3) Firms, limited liability companies, corporations, or
associations shall be deemed related if they have in common a
person, group of related persons, firm, limited liability
company, corporation, or association possessing more than ten
per cent (10%) ownership in each.
(4) The ownership interest for purposes of this chapter shall be
determined as of the dates of any sales hereby required to be
stated.
(b) A full detailed and complete inventory of the goods that are to
be sold shall be filed with the application on the following form
which shall be typewritten or printed legibly and submitted on paper
sized eight and one-half (8 1/2) inches by eleven (11) inches:
INVENTORY FOR DISTRESS SALE
Name of Retailer: __________________________________
Place of Sale ________________________________ Quantity
Description Unit Price Per
Unit Total Amount
(Each type of goods shall be described on a separate line as it was
described on the invoice of purchase by the applicant and the goods
shall be valued at their sale prices.)
(c) All such invoices of purchase by the applicant shall be
retained by the applicant during the sale and for sixty (60) days
following the conclusion of the sale, shall be open to public
examination and shall be admissible in evidence in any court
proceeding under this chapter. It shall be a violation of this chapter
to destroy or otherwise dispose of such invoices during the period of
retention required by this chapter or to destroy or otherwise dispose
of such invoices for purposes of evading the requirements of this
chapter. If there was no invoice for any goods to be sold, or if the
invoice has previously been destroyed, the applicant shall so state,
and shall describe the goods with reasonable specificity according to
the customary description of the type of goods on the invoice of
purchase by a retailer. (Formerly: Acts 1965, c.271, s.3.) As amended by Acts 1982,
P.L.154, SEC.64; P.L.8-1993, SEC.388; P.L.4-1994, SEC.9.
IC 25-18-1-4 Effective period for license
Sec. 4. (a) The clerk of the circuit court shall note on the license
the effective date thereof, which shall be not less than ten (10) days
nor more than fifteen (15) days from the date of the issuance of the
license. At the time of the issuance of the license, the applicant shall
be entitled to select the effective date within such five (5) day period.
(b) A license issued under this chapter, unless renewed as
provided in section 9 of this chapter, shall expire and shall be null
and void sixty (60) days after the effective date thereof, as noted on
the license, Sundays and holidays excluded. No distress sale for
which a license has been granted shall be continued as a distress sale
after the expiration of the license. (Formerly: Acts 1965, c.271, s.4.) As amended by Acts 1982,
P.L.154, SEC.65.
IC 25-18-1-5 Copy of inventory form; filing
Sec. 5. A copy of the completed inventory form shall be filed with
the clerk of the circuit court and shall be open to public inspection.
Such inventory forms shall be kept on file by the clerk for one (1)
year and thereafter may be destroyed. (Formerly: Acts 1965, c.271, s.5.) As amended by P.L.4-1994,
SEC.10.
IC 25-18-1-6 Issuance of license; license fee; contents of license
Sec. 6. (a) The clerk of the circuit court, upon receiving an
application for a license, shall examine the application to determine
if it is in due form. If the clerk shall be satisfied that the application
is in due form and that the proposed sale is of the character which the
applicant desires to advertise and conduct, the clerk shall issue a
license to the applicant authorizing him to advertise and conduct a
sale of the particular kind mentioned in the application upon the
payment of a fee as provided in IC 33-32-5-2.
(b) Such license may be issued by the clerk in typewritten letter
form or in printed form addressed to the applicant, one (1) copy
being retained by the clerk, and shall set forth the following
information and statements:
DISTRESS SALE LICENSE
In accordance with and subject to IC 25-18-1, (name of applicant)
is hereby licensed to conduct a distress sale for the following
purpose:
Going out of business sale []
Removal of business sale []
Fire or altered goods sale []
This license shall apply only to the sale of goods reported in the
inventory filed with the application for this license, which goods are
to be sold by the licensee at (place of sale _______), in _______,
Indiana. The effective date of this license shall be _______,
_______, and this license shall expire sixty (60) days from said date,
Sundays and holidays excluded.
Dated this ____ day of _________, ______.
____________ CLERK.
(Formerly: Acts 1965, c.271, s.6.) As amended by Acts 1982,
P.L.154, SEC.66; P.L.171-1984, SEC.8; P.L.98-2004, SEC.99.
IC 25-18-1-7 Record of license
Sec. 7. The clerk of the circuit court shall endorse upon each such
application the date of its filing and shall preserve 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, the date
of issuance of the license and the effective date thereof. (Formerly: Acts 1965, c.271, s.7.)
IC 25-18-1-8 Display of license
Sec. 8. A copy of the application, including the inventory, and
license as herein described, shall be posted at a location conspicuous
to the public in the place where such goods are to be sold so that the
public may be informed of the facts in relation to the goods before
purchasing same. (Formerly: Acts 1965, c.271, s.8.)
IC 25-18-1-9 Renewal
Sec. 9. A license may be renewed for an additional thirty (30) days,
Sundays and holidays excluded, if an application for renewal is filed
with the clerk prior to the expiration of such license but not sooner
than ten (10) days in advance of such expiration date; Provided,
however, That a license may be renewed only if more than two
hundred thousand dollars ($200,000) worth of goods were stated on
the inventory originally filed. Upon proper applications the clerk may
issue successive renewal licenses, one such renewal license for each
two hundred thousand dollars ($200,000) worth of goods as stated on
the inventory originally filed. A license shall be renewable only if in
respect to each renewal the clerk finds that facts exist justifying the
license renewal, that the licensee has filed an application for renewal,
that the licensee has submitted with the application for renewal a
revised inventory showing the items listed on the original inventory
remaining unsold and not listing any goods not included in the
original inventory, and that the licensee has paid an additional fee for
the renewal according to the schedule in section 4 based on the
revised inventory filed with the renewal application. The renewal
license shall be of the form prescribed in section 6, except that it
shall expire thirty (30) days from its effective date, Sundays and
holidays excluded, which shall be the expiration date of the prior
license. The application for a renewal license shall be under oath and
shall be of the same form as the application form prescribed in
section 3, except that it shall at the bottom set forth the facts
justifying the renewal. (Formerly: Acts 1965, c.271, s.9.)
IC 25-18-1-10 Addition to stock
Sec. 10. No person, firm, limited liability company, corporation, or
association, in contemplation of conducting any sale regulated by
this chapter, shall order any goods for the purpose of selling and
disposing of the goods at such sale. However, the prohibition of this
section shall not apply to the purchase of goods damaged or altered
by fire, smoke, water, vandalism or other similar means, or goods
purchased from a seller who has discontinued his business. In the
event of any unusual purchase or addition to the stock of goods
within sixty (60) days prior to the filing of the application for license
to conduct such sale, the burden in all civil or criminal litigation shall
fall upon the purchaser to show that such purchases and additions to
the stock were not made in contemplation of such sale or for the
purpose of selling the goods at such sale. (Formerly: Acts 1965, c.271, s.10.) As amended by Acts 1982,
P.L.154, SEC.67; P.L.8-1993, SEC.389.
IC 25-18-1-11 Identification of goods
Sec. 11. The license provided for herein shall be granted, and valid
only for the sale of inventoried goods which are the property of the
licensee. Commingling of additional or other goods with that shown
in the inventory in such a manner as to cause the merchandise
inventoried to lose its identity shall void any such license and be a
violation of this chapter. If the inventoried goods shall be put on sale
with other stock of goods of an established merchant, then the same
shall be considered and deemed to be commingled, unless it is clearly
and sufficiently segregated, marked or identified, and advertised so
that its identity may be readily distinguished from such other stock
of goods and its identity readily ascertained. (Formerly: Acts 1965, c.271, s.11.) As amended by Acts 1982,
P.L.154, SEC.68.
IC 25-18-1-12 Misstatement or omission in license
Sec. 12. Any license issued on the basis of an application or
containing any material misstatement or omission, or an inventory
not in compliance with this chapter shall be void and of no effect.
(Formerly: Acts 1965, c.271, s.12.) As amended by Acts 1982,
P.L.154, SEC.69.
IC 25-18-1-13 Violation of certain act; voiding license
Sec. 13. Any violation of IC 35-43 by a seller in connection with
a sale governed by this chapter also constitutes a violation of this
chapter and automatically voids any license authorizing such a sale. (Formerly: Acts 1965, c.271, s.13.) As amended by Acts 1978, P.L.2,
SEC.2535.
IC 25-18-1-14 Establishment of business to hold distress sale
Sec. 14. No license for a going out of business sale or a removal of
business, as provided in this chapter, shall be issued to any person,
firm, limited liability company, corporation, or association if such
business was established or relocated for the ultimate purpose of
holding such sale. For the purpose of this section, it shall be
presumed by the clerk that any business which has been maintained
at the sale location less than six (6) months was established for such
ultimate purpose. The applicant may in his application rebut such
presumption by establishing to the satisfaction of the clerk facts
showing that such business was not established for the ultimate
purpose of holding such distress sale. (Formerly: Acts 1965, c.271, s.14.) As amended by Acts 1982,
P.L.154, SEC.70; P.L.8-1993, SEC.390.
IC 25-18-1-15 Goods previously inventoried for distress sale
Sec. 15. Nothing in this chapter contained shall be construed as
authorization for the issuance of a license to a person, firm, limited
liability company, corporation, or association if the goods to be sold
or any part of them were goods inventoried in an application for a
license under this chapter, which license was issued within the
preceding year. (Formerly: Acts 1965, c.271, s.15.) As amended by Acts 1982,
P.L.154, SEC.71; P.L.8-1993, SEC.391.
IC 25-18-1-16 Limitations on issuance of license; three-year period
Sec. 16. (a) No license for a going out of business or a removal of
business sale shall be issued in respect to a proposed sale to be held
by the applicant if the applicant or any person, firm, limited liability
company, corporation, or association related to the applicant has
conducted a going out of business sale or removal of business sale at
the proposed sale location within the last preceding three (3) years.
(b) No license for a going out of business or a removal of business
sale shall be issued to any applicant if such applicant or any related
person, firm, limited liability company, corporation, or association
has conducted a going out of business or removal of business sale
within the last preceding three (3) years unless the business for
which such license is sought has been conducted for more than one
(1) year by the applicant or a related person, firm, limited liability
company, corporation, or association at the location of the proposed
sale.
(c) Any license obtained in violation of this section shall be void
and of no force and effect. (Formerly: Acts 1965, c.271, s.16.) As amended by P.L.8-1993,
SEC.392.
IC 25-18-1-17 Maintenance of records during sale
Sec. 17. Any licensee under this chapter shall keep suitable sales
records and books during the sale, at the location at which such sale
is conducted. Such records and books shall be open for inspection by
the clerk of the circuit court or the prosecutor for the county in which
the sale is conducted or the duly authorized representative of either
of them. (Formerly: Acts 1965, c.271, s.17.) As amended by Acts 1982,
P.L.154, SEC.72.
IC 25-18-1-18 Compliance with chapter; duties of clerk of court
Sec. 18. It shall be the duty of the clerk of the circuit court to see
that the provisions of this chapter are strictly complied with and to
report for prosecution all cases of violation of, or refusal or neglect
to comply with, such provisions. It shall be unlawful for any person,
firm, limited liability company, corporation, or association to whom
a license has been granted under this chapter to refuse to furnish said
clerk on demand or to any person designated by him for that purpose,
all the facts connected with the sale for which such license was
granted or any other information which he may require in the
enforcement of this chapter. (Formerly: Acts 1965, c.271, s.18.) As amended by Acts 1982,
P.L.154, SEC.73; P.L.8-1993, SEC.393.
IC 25-18-1-19 Misrepresentation
Sec. 19. A person who, in procuring from the clerk a license to
conduct a sale under this act, knowingly misrepresents the true
description or character of the sale, or the kind or condition of goods
to be sold, or who otherwise knowingly violates this chapter,
commits a Class A misdemeanor. (Formerly: Acts 1965, c.271, s.19.) As amended by Acts 1978, P.L.2,
SEC.2536.
IC 25-18-1-20
Repealed
(Repealed by Acts 1978, P.L.2, SEC.2570.) IC 25-18-1-21 Right to injunction or treble damages
Sec. 21. Any person injured by any violation of this chapter may
sue for such injury in the courts of any county in which the defendant
sells at retail, and obtain either injunctive relief against any sale
conducted in violation of this chapter or recover threefold the
damages sustained, or both, and such damages shall include a
reasonable attorney's fee. The fact of injury to the plaintiff but not
the amount thereof shall be conclusively presumed if it is established
that a violation has taken place and that the plaintiff and defendant
each were engaged in selling at retail within the same county at the
time of the claimed violation, and that the violation of this chapter
related to a sale conducted by the defendant in such county. (Formerly: Acts 1965, c.271, s.21.) As amended by Acts 1982,
P.L.154, SEC.74.
IC 25-18-1-22 Duties of prosecuting attorney
Sec. 22. It shall be the duty of the prosecuting attorney of any
county to prosecute any violation of this chapter. The prosecuting
attorney of any county may in the alternative seek injunctive relief
against any sale being carried on in violation of this chapter in a civil
action in any circuit or superior court of the county in which the
defendant is conducting such sale. The prosecuting attorney may
request and the court may, in its discretion, after a hearing, issue a
preliminary injunction, pending the determination of such civil
action, against continued representations to the public by the seller,
that the sale is a going out of business sale, removal of business sale,
or fire or other altered goods sale. (Formerly: Acts 1965, c.271, s.22.) As amended by Acts 1982,
P.L.154, SEC.75.
IC 25-18-1
Chapter 1. Licensing of Retail Distress Sales
IC 25-18-1-1 Definitions
Sec. 1. For the purpose of this chapter:
"Going out of business sale" is a sale held out, advertised or
otherwise represented to the public in such a manner as to cause the
public reasonably to believe that upon disposal of the stock of goods
on hand the business will cease and be discontinued, including but
not limited to the following sales: Insurance, salvage, closing out,
going out of business, liquidation, bankrupt, receiver's, mortgage,
insolvent, assignee's, executor's, administrator's, trustee's or creditor's
sale of goods, wares or merchandise.
"Removal of business sale" is a sale held out, advertised or
otherwise represented to the public in such a manner as to cause the
public reasonably to believe that the person, firm, limited liability
company, corporation, or association conducting the sale will cease
and discontinue business at the place of sale upon disposal of the
stock of goods on hand and will then move to and resume business
at a new location.
"Fire or other altered goods sale" is a sale held out, advertised or
otherwise represented to the public in such a manner as to cause the
public reasonably to believe that the sale will offer goods damaged
or altered by fire, smoke, water, vandalism or other similar means.
"Selling at retail" is the sale of tangible personal property to
ultimate users or consumers.
"Distress sale" shall mean a going out of business sale, a removal
of business sale or a fire or other altered goods sale or any
combination of the same.
"Goods" shall mean goods, wares, merchandise or other tangible
personal property. (Formerly: Acts 1965, c.271, s.1.) As amended by Acts 1982,
P.L.154, SEC.62; P.L.8-1993, SEC.386.
IC 25-18-1-2 Necessity of license; exceptions
Sec. 2. Unless a license for such sale has been issued and has
become effective in accordance with this chapter, no person, firm,
limited liability company, corporation, or association engaged in the
business of selling goods at retail 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 a going out of business, removal of business, or fire or other
altered goods sale, or that it is a sale of goods that have been
obtained through, as a result of, or by reason of any of the situations
and contingencies named in the definitions of going out of business
sale, removal of business sale and fire or other altered goods sale as
set forth in section 1 of this chapter; however, this chapter 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. (Formerly: Acts 1965, c.271, s.2.) As amended by Acts 1982,
P.L.154, SEC.63; P.L.8-1993, SEC.387.
IC 25-18-1-3 Application for license
Sec. 3. (a) Any person, firm, limited liability company,
corporation, or association required to obtain a license as provided
in section 2 of this chapter shall make to the clerk of the circuit court
for the county in which he proposes to conduct such going out of
business sale, or removal of business sale or fire or other altered
goods sale an application for such license in writing and under oath,
at least ten (10) days prior to the opening date of such sale. Such
application shall be submitted on paper sized eight and one-half (8½)
inches by eleven (11) inches in accordance with the following
general form setting out the following facts and information
regarding such proposed sale:
APPLICATION FOR LICENSE FOR
DISTRESS SALE
DATE OF APPLICATION: _______________
Applicant's Name: ______________________
Place of Proposed Sale: ___________________
Proposed Opening Date of Sale: _______________
Date of Establishment of Business
at Present Location: _____________________
TYPE OF SALE (CHECK):
[] GOING OUT OF BUSINESS SALE
[] REMOVAL OF BUSINESS SALE
[] FIRE OR OTHER ALTERED GOODS SALE
1. Reason for sale:
(A full explanation with regard to the insurance, salvage, removal,
closing out, going out of business, liquidation, bankruptcy,
receivership, mortgage, insolvency, assignment, executor's,
administrator's, trustee's, creditor's, or other necessity which is the
occasion for such sale, or
If the sale is to be conducted as a sale of goods damaged or altered
by fire, smoke, water, vandalism or otherwise, then a statement as to
the time, location, and circumstances of such damage.)
2. Name of owner or owners of goods if other than the applicant:
3. Prior distress sales:
(A statement of the dates and locations of all going out of
business sales, removal of business sales and fire or other altered
goods sales conducted during the three (3) years preceding the
proposed sale by the applicant or by any person, firm, limited
liability company, corporation, or association related or affiliated
with the applicant.)
Oath. Such application shall bear the following oath which shall
be subscribed and sworn to before a notary public: " ____________
(name of affiant), being first duly sworn, upon his oath states that the
matters and facts set forth in this application and in the inventory
filed with this application are true and correct."
For the purpose of determining related or affiliated persons, firms,
corporations, limited liability companies, or associations under this
chapter, the following standards shall apply:
(1) A person shall be deemed related to his spouse and to all
persons related within the third degree of consanguinity to him
or to his spouse.
(2) Persons shall be deemed related to firms, limited liability
companies, corporations, and associations; and firms, limited
liability companies, corporations, and associations shall be
deemed related to persons, if such persons, or persons related to
them, possess more than a ten per cent (10%) ownership interest
in the firm, limited liability company, corporation, or
association.
(3) Firms, limited liability companies, corporations, or
associations shall be deemed related if they have in common a
person, group of related persons, firm, limited liability
company, corporation, or association possessing more than ten
per cent (10%) ownership in each.
(4) The ownership interest for purposes of this chapter shall be
determined as of the dates of any sales hereby required to be
stated.
(b) A full detailed and complete inventory of the goods that are to
be sold shall be filed with the application on the following form
which shall be typewritten or printed legibly and submitted on paper
sized eight and one-half (8 1/2) inches by eleven (11) inches:
INVENTORY FOR DISTRESS SALE
Name of Retailer: __________________________________
Place of Sale ________________________________ Quantity
Description Unit Price Per
Unit Total Amount
(Each type of goods shall be described on a separate line as it was
described on the invoice of purchase by the applicant and the goods
shall be valued at their sale prices.)
(c) All such invoices of purchase by the applicant shall be
retained by the applicant during the sale and for sixty (60) days
following the conclusion of the sale, shall be open to public
examination and shall be admissible in evidence in any court
proceeding under this chapter. It shall be a violation of this chapter
to destroy or otherwise dispose of such invoices during the period of
retention required by this chapter or to destroy or otherwise dispose
of such invoices for purposes of evading the requirements of this
chapter. If there was no invoice for any goods to be sold, or if the
invoice has previously been destroyed, the applicant shall so state,
and shall describe the goods with reasonable specificity according to
the customary description of the type of goods on the invoice of
purchase by a retailer. (Formerly: Acts 1965, c.271, s.3.) As amended by Acts 1982,
P.L.154, SEC.64; P.L.8-1993, SEC.388; P.L.4-1994, SEC.9.
IC 25-18-1-4 Effective period for license
Sec. 4. (a) The clerk of the circuit court shall note on the license
the effective date thereof, which shall be not less than ten (10) days
nor more than fifteen (15) days from the date of the issuance of the
license. At the time of the issuance of the license, the applicant shall
be entitled to select the effective date within such five (5) day period.
(b) A license issued under this chapter, unless renewed as
provided in section 9 of this chapter, shall expire and shall be null
and void sixty (60) days after the effective date thereof, as noted on
the license, Sundays and holidays excluded. No distress sale for
which a license has been granted shall be continued as a distress sale
after the expiration of the license. (Formerly: Acts 1965, c.271, s.4.) As amended by Acts 1982,
P.L.154, SEC.65.
IC 25-18-1-5 Copy of inventory form; filing
Sec. 5. A copy of the completed inventory form shall be filed with
the clerk of the circuit court and shall be open to public inspection.
Such inventory forms shall be kept on file by the clerk for one (1)
year and thereafter may be destroyed. (Formerly: Acts 1965, c.271, s.5.) As amended by P.L.4-1994,
SEC.10.
IC 25-18-1-6 Issuance of license; license fee; contents of license
Sec. 6. (a) The clerk of the circuit court, upon receiving an
application for a license, shall examine the application to determine
if it is in due form. If the clerk shall be satisfied that the application
is in due form and that the proposed sale is of the character which the
applicant desires to advertise and conduct, the clerk shall issue a
license to the applicant authorizing him to advertise and conduct a
sale of the particular kind mentioned in the application upon the
payment of a fee as provided in IC 33-32-5-2.
(b) Such license may be issued by the clerk in typewritten letter
form or in printed form addressed to the applicant, one (1) copy
being retained by the clerk, and shall set forth the following
information and statements:
DISTRESS SALE LICENSE
In accordance with and subject to IC 25-18-1, (name of applicant)
is hereby licensed to conduct a distress sale for the following
purpose:
Going out of business sale []
Removal of business sale []
Fire or altered goods sale []
This license shall apply only to the sale of goods reported in the
inventory filed with the application for this license, which goods are
to be sold by the licensee at (place of sale _______), in _______,
Indiana. The effective date of this license shall be _______,
_______, and this license shall expire sixty (60) days from said date,
Sundays and holidays excluded.
Dated this ____ day of _________, ______.
____________ CLERK.
(Formerly: Acts 1965, c.271, s.6.) As amended by Acts 1982,
P.L.154, SEC.66; P.L.171-1984, SEC.8; P.L.98-2004, SEC.99.
IC 25-18-1-7 Record of license
Sec. 7. The clerk of the circuit court shall endorse upon each such
application the date of its filing and shall preserve 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, the date
of issuance of the license and the effective date thereof. (Formerly: Acts 1965, c.271, s.7.)
IC 25-18-1-8 Display of license
Sec. 8. A copy of the application, including the inventory, and
license as herein described, shall be posted at a location conspicuous
to the public in the place where such goods are to be sold so that the
public may be informed of the facts in relation to the goods before
purchasing same. (Formerly: Acts 1965, c.271, s.8.)
IC 25-18-1-9 Renewal
Sec. 9. A license may be renewed for an additional thirty (30) days,
Sundays and holidays excluded, if an application for renewal is filed
with the clerk prior to the expiration of such license but not sooner
than ten (10) days in advance of such expiration date; Provided,
however, That a license may be renewed only if more than two
hundred thousand dollars ($200,000) worth of goods were stated on
the inventory originally filed. Upon proper applications the clerk may
issue successive renewal licenses, one such renewal license for each
two hundred thousand dollars ($200,000) worth of goods as stated on
the inventory originally filed. A license shall be renewable only if in
respect to each renewal the clerk finds that facts exist justifying the
license renewal, that the licensee has filed an application for renewal,
that the licensee has submitted with the application for renewal a
revised inventory showing the items listed on the original inventory
remaining unsold and not listing any goods not included in the
original inventory, and that the licensee has paid an additional fee for
the renewal according to the schedule in section 4 based on the
revised inventory filed with the renewal application. The renewal
license shall be of the form prescribed in section 6, except that it
shall expire thirty (30) days from its effective date, Sundays and
holidays excluded, which shall be the expiration date of the prior
license. The application for a renewal license shall be under oath and
shall be of the same form as the application form prescribed in
section 3, except that it shall at the bottom set forth the facts
justifying the renewal. (Formerly: Acts 1965, c.271, s.9.)
IC 25-18-1-10 Addition to stock
Sec. 10. No person, firm, limited liability company, corporation, or
association, in contemplation of conducting any sale regulated by
this chapter, shall order any goods for the purpose of selling and
disposing of the goods at such sale. However, the prohibition of this
section shall not apply to the purchase of goods damaged or altered
by fire, smoke, water, vandalism or other similar means, or goods
purchased from a seller who has discontinued his business. In the
event of any unusual purchase or addition to the stock of goods
within sixty (60) days prior to the filing of the application for license
to conduct such sale, the burden in all civil or criminal litigation shall
fall upon the purchaser to show that such purchases and additions to
the stock were not made in contemplation of such sale or for the
purpose of selling the goods at such sale. (Formerly: Acts 1965, c.271, s.10.) As amended by Acts 1982,
P.L.154, SEC.67; P.L.8-1993, SEC.389.
IC 25-18-1-11 Identification of goods
Sec. 11. The license provided for herein shall be granted, and valid
only for the sale of inventoried goods which are the property of the
licensee. Commingling of additional or other goods with that shown
in the inventory in such a manner as to cause the merchandise
inventoried to lose its identity shall void any such license and be a
violation of this chapter. If the inventoried goods shall be put on sale
with other stock of goods of an established merchant, then the same
shall be considered and deemed to be commingled, unless it is clearly
and sufficiently segregated, marked or identified, and advertised so
that its identity may be readily distinguished from such other stock
of goods and its identity readily ascertained. (Formerly: Acts 1965, c.271, s.11.) As amended by Acts 1982,
P.L.154, SEC.68.
IC 25-18-1-12 Misstatement or omission in license
Sec. 12. Any license issued on the basis of an application or
containing any material misstatement or omission, or an inventory
not in compliance with this chapter shall be void and of no effect.
(Formerly: Acts 1965, c.271, s.12.) As amended by Acts 1982,
P.L.154, SEC.69.
IC 25-18-1-13 Violation of certain act; voiding license
Sec. 13. Any violation of IC 35-43 by a seller in connection with
a sale governed by this chapter also constitutes a violation of this
chapter and automatically voids any license authorizing such a sale. (Formerly: Acts 1965, c.271, s.13.) As amended by Acts 1978, P.L.2,
SEC.2535.
IC 25-18-1-14 Establishment of business to hold distress sale
Sec. 14. No license for a going out of business sale or a removal of
business, as provided in this chapter, shall be issued to any person,
firm, limited liability company, corporation, or association if such
business was established or relocated for the ultimate purpose of
holding such sale. For the purpose of this section, it shall be
presumed by the clerk that any business which has been maintained
at the sale location less than six (6) months was established for such
ultimate purpose. The applicant may in his application rebut such
presumption by establishing to the satisfaction of the clerk facts
showing that such business was not established for the ultimate
purpose of holding such distress sale. (Formerly: Acts 1965, c.271, s.14.) As amended by Acts 1982,
P.L.154, SEC.70; P.L.8-1993, SEC.390.
IC 25-18-1-15 Goods previously inventoried for distress sale
Sec. 15. Nothing in this chapter contained shall be construed as
authorization for the issuance of a license to a person, firm, limited
liability company, corporation, or association if the goods to be sold
or any part of them were goods inventoried in an application for a
license under this chapter, which license was issued within the
preceding year. (Formerly: Acts 1965, c.271, s.15.) As amended by Acts 1982,
P.L.154, SEC.71; P.L.8-1993, SEC.391.
IC 25-18-1-16 Limitations on issuance of license; three-year period
Sec. 16. (a) No license for a going out of business or a removal of
business sale shall be issued in respect to a proposed sale to be held
by the applicant if the applicant or any person, firm, limited liability
company, corporation, or association related to the applicant has
conducted a going out of business sale or removal of business sale at
the proposed sale location within the last preceding three (3) years.
(b) No license for a going out of business or a removal of business
sale shall be issued to any applicant if such applicant or any related
person, firm, limited liability company, corporation, or association
has conducted a going out of business or removal of business sale
within the last preceding three (3) years unless the business for
which such license is sought has been conducted for more than one
(1) year by the applicant or a related person, firm, limited liability
company, corporation, or association at the location of the proposed
sale.
(c) Any license obtained in violation of this section shall be void
and of no force and effect. (Formerly: Acts 1965, c.271, s.16.) As amended by P.L.8-1993,
SEC.392.
IC 25-18-1-17 Maintenance of records during sale
Sec. 17. Any licensee under this chapter shall keep suitable sales
records and books during the sale, at the location at which such sale
is conducted. Such records and books shall be open for inspection by
the clerk of the circuit court or the prosecutor for the county in which
the sale is conducted or the duly authorized representative of either
of them. (Formerly: Acts 1965, c.271, s.17.) As amended by Acts 1982,
P.L.154, SEC.72.
IC 25-18-1-18 Compliance with chapter; duties of clerk of court
Sec. 18. It shall be the duty of the clerk of the circuit court to see
that the provisions of this chapter are strictly complied with and to
report for prosecution all cases of violation of, or refusal or neglect
to comply with, such provisions. It shall be unlawful for any person,
firm, limited liability company, corporation, or association to whom
a license has been granted under this chapter to refuse to furnish said
clerk on demand or to any person designated by him for that purpose,
all the facts connected with the sale for which such license was
granted or any other information which he may require in the
enforcement of this chapter. (Formerly: Acts 1965, c.271, s.18.) As amended by Acts 1982,
P.L.154, SEC.73; P.L.8-1993, SEC.393.
IC 25-18-1-19 Misrepresentation
Sec. 19. A person who, in procuring from the clerk a license to
conduct a sale under this act, knowingly misrepresents the true
description or character of the sale, or the kind or condition of goods
to be sold, or who otherwise knowingly violates this chapter,
commits a Class A misdemeanor. (Formerly: Acts 1965, c.271, s.19.) As amended by Acts 1978, P.L.2,
SEC.2536.
IC 25-18-1-20
Repealed
(Repealed by Acts 1978, P.L.2, SEC.2570.) IC 25-18-1-21 Right to injunction or treble damages
Sec. 21. Any person injured by any violation of this chapter may
sue for such injury in the courts of any county in which the defendant
sells at retail, and obtain either injunctive relief against any sale
conducted in violation of this chapter or recover threefold the
damages sustained, or both, and such damages shall include a
reasonable attorney's fee. The fact of injury to the plaintiff but not
the amount thereof shall be conclusively presumed if it is established
that a violation has taken place and that the plaintiff and defendant
each were engaged in selling at retail within the same county at the
time of the claimed violation, and that the violation of this chapter
related to a sale conducted by the defendant in such county. (Formerly: Acts 1965, c.271, s.21.) As amended by Acts 1982,
P.L.154, SEC.74.
IC 25-18-1-22 Duties of prosecuting attorney
Sec. 22. It shall be the duty of the prosecuting attorney of any
county to prosecute any violation of this chapter. The prosecuting
attorney of any county may in the alternative seek injunctive relief
against any sale being carried on in violation of this chapter in a civil
action in any circuit or superior court of the county in which the
defendant is conducting such sale. The prosecuting attorney may
request and the court may, in its discretion, after a hearing, issue a
preliminary injunction, pending the determination of such civil
action, against continued representations to the public by the seller,
that the sale is a going out of business sale, removal of business sale,
or fire or other altered goods sale. (Formerly: Acts 1965, c.271, s.22.) As amended by Acts 1982,
P.L.154, SEC.75.
