Commercial Law – General Regulatory Provisions

Closing Out Sales

SECTION 6-14-11.1

§ 6-14-11.1. Purchase of stock or inventory following a sale.

(a) It shall be unlawful for any person who purchases from another the remaining stock or inventory or a portion of the stock or inventory remaining from a "closing-out sale"; "going-out-of-business sale"; "discontinuance-of-business sale"; "selling out"; "liquidation"; "lost our lease"; "must vacate"; "forced out"; "removal"; or other designation of like meaning; or a sale of goods, wares, and merchandise damaged by fire, smoke, water, or otherwise; or who purchases stock or inventory from a person who no longer sells similar merchandise at the same location; to engage in the following conduct:

(1) To advertise that the stock previously belonging to the original person or business is being offered for sale unless it is clearly stated what portion of the total merchandise as a percentage of the total dollar value of the entire inventory being offered for sale is the goods that were purchased from the original person or business.

(2) To offer for sale stock previously belonging to the original person or business along with additional merchandise unless items belonging to the original person or business are clearly labeled as such.

(b) Any person who shall violate the provisions of this section shall be deemed guilty of a misdemeanor, and shall, upon conviction, be fined in the sum of not less than fifty dollars ($50.00) nor more than five hundred dollars ($500), or shall be imprisoned for not less than ten (10) days nor more than six (6) months, or both, within the discretion of the court. In lieu of, or in addition to the penalty previously provided in this subsection, the court may order the defendant to pay to the court a sum not to exceed five hundred dollars ($500) for the purpose of paying for an advertisement, prepared by the department of the attorney general, for placement in Rhode Island newspapers, pointing out the violation(s) of this section as presented in the false advertising, provided that the advertisement shall not indicate the name or address of the person convicted under the provisions of this section.

History of Section.
(P.L. 1980, ch. 101, § 1; P.L. 2014, ch. 528, § 13.)