Section 114.01 Definition
A "distress sale" is an offer to sell to consumers, or the sale
to consumers of, goods which the seller states or implies has been occasioned
by termination or discontinuance of all or part of the seller's business,
termination of the seller's lease, fire or other disaster, bankruptcy, the
seller's financial hardship, or any similar cause. A "distress sale" does not
include a sale conducted by a licensed auctioneer or by a public official
selling goods under the direction or authority of any court.
Section 114.02 Prohibited Representations
The misrepresentation, expressly or by implication, of any fact
relating to a distress sale, including, but not limited to, the following
constitutes an unfair and deceptive act or practice in commerce:
(a) The cause or basis of the sale.
(b) The former price, savings, quality or
ownership of the goods to be sold at the sale.
(c) The identity of the person or entity
conducting the sale.
Section 114.03 Other Prohibited Conduct
The following conduct in connection with a distress sale
constitutes an unfair and deceptive act or practice in commerce:
(a) Advertising the sale with the words
"going out of business," "closing out," "shutting doors forever," "bankruptcy
sale," "foreclosure," or similar words unless the seller is closing all of its
operations in this state.
(b)
Selling an item at a distress sale which the seller ordered with the intention
of selling the item at the sale. For the purpose of this provision, it is
presumed that any item ordered after a distress sale has begun, or less than 60
days prior to the start of the sale, has been ordered with the intention of
selling the item at the sale.
(c)
Continuing a distress sale more than 45 days from the beginning date of the
sale unless the fact that the sale has continued more than 45 days is expressly
disclosed to the public in any advertisement or other promotional
material.
(d) Within one year of
advertising or conducting a distress sale, reopening or resuming the same
business in this state under the same or any new name if the ownership and/or
control of the business remains substantially the same, unless the seller
establishes that there has been a change in circumstances from the time of the
distress sale justifying reopening or resuming the business.
Section 114.04 Required
disclosures
The failure to include in any advertisement for a distress sale
the following disclosures in a clear and conspicuous fashion constitutes an
unfair and deceptive act or practice in commerce:
(a) The beginning and ending dates of the
sale.
(b) If the seller has
employed an agent to conduct the sale, the name and business address of the
agent. Statutory Authority:
9 V.S.A.
ยง
2453(c)
