Going Out of Business Sale Law and Legal Definition
A going out of business sale is any offer to sell to the public or a sale to the public of goods, wares, or merchandise on the implied or direct representation that such sale is in anticipation of the termination of a business at its present location or that the sale is being held other than in the ordinary course of business. Going out of business sales may include any sale advertised either specifically or in substance to be any one of the following:
- A sale because the applicant is going out of business;
- A sale because the applicant is liquidating;
- A sale because the applicant is selling 50 percent or more of his stock, his entire stock or selling out to the bare walls;
- A sale because the applicant has lost his lease;
- A sale because the applicant is selling out his interest in the business establishment;
- A sale because everything in the store or establishment must be sold;
- Trustee's sale;
- Bankrupt sale;
- Save us from bankruptcy sale;
- Insolvent sale;
- Assignee's sale;
- Must vacate sale;
- Quitting business sale;
- Receiver's sale;
- Loss of lease sale;
- Forced out of business sale;
- Removal sale;
- Liquidation sale;
- Executor's sale;
- Administrator's sale;
- Warehouse removal sale;
- Branch store discontinuance sale;
- Creditor's committee sale;
- Adjustment sale;
- Defunct business sale; or
- Selling out interest sale.
Some state statutes regulate going out of business sales. The owner of the business may be required to obtain a license and post a security bond to protect creditors and customers before conducting such a sale. A statement verifying the discontinuation of the business may also be required to prevent fraudulent advertising practices.
