New York General Business Code § 587

Investigation of application; grounds for denial; revocation of license
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§ 587. Investigation of application; grounds for denial; revocation of\nlicense. (a) Upon receipt of the application, the licensing authority of\nthe appropriate city, town or village in which such sale is to be held\nmay make or cause to be made an examination into any or all the facts\ncontained in the application and inventory in relation to the proposed\nsale. A license shall be denied or refused if any one or more of the\nfollowing facts or circumstances is found to exist:\n  (1) That the applicant is not the true owner of the goods, wares and\nmerchandise to be sold.\n  (2) That the applicant has not been the owner of the business\nadvertised or described in the application for a license hereunder for a\nperiod of at least six months prior to the date of the application, or,\nif the applicant be a corporation or association, controlling interest\nin the corporation or association had been transferred within six months\nprior to the date of the application for a license hereunder, except-\n  (i) Where the application is for a license for a "sale of goods\ndamaged by fire, smoke, or water," or a "defunct business sale," and the\ninventory listed in the application contains only those goods, wares or\nmerchandise which were on the premises at the time of the occurrence of\nthe circumstances warranting the granting of a license hereunder;\n  (ii) Upon the death of a person doing business in the state, the\nrepresentatives of his estate, or his or her heirs, distributees,\ndevisees, legatees, or their successors and assignees, shall have the\nright to apply at anytime for a license hereunder;\n  (iii) Where a business is required or compelled to be discontinued\nbecause the premises upon which it is being conducted have been taken by\neminent domain or because the premises must be vacated pursuant to legal\nor judicial proceedings.\n  (3) That in the case of a "closing out sale," the applicant, either as\nowner, partner, member of an association, or principal stockholder of a\ncorporation, was granted a prior license hereunder within one year\npreceding the date of the filing of the application, or the applicant,\nwithin one year prior to the date of filing of the application, has\nconducted a sale in connection with which he advertised or represented\nthat the entire business conducted at the particular location for which\nthe license is sought was to be closed out or terminated.\n  (4) That the inventory contains goods, wares or merchandise not\npurchased by the applicant for resale on bona fide orders without\ncancellation privileges.\n  (5) That the inventory contains goods, wares or merchandise purchased\nby the applicant on consignment, except if the consigned goods, wares or\nmerchandise have been damaged while in the applicant's actual\npossession.\n  (6) That the applicant has within one year prior to the filing of the\napplication been convicted of a violation of this act.\n  (7) That the goods, wares or merchandise as described in the inventory\nwere transferred or assigned to the applicant prior to the date of the\nfiling of the application and that said transfer or assignment was not\nmade for a valuable and adequate consideration.\n  (8) That in the case of a "closing out sale" or a "defunct business\nsale," the inventory contains goods, wares or merchandise purchased by\nthe applicant or added to his stock in contemplation of such sale and\nfor the purpose of selling the same at such sale. Any unusual purchase\nor addition shall be presumptive evidence that such purchase or\nadditions were made in contemplation of such sale and for the purpose of\nselling the same at such sale.\n  (9) That any representation made in the application is knowingly\nfalse.\n  (b) Revocation. The licensing authority shall revoke any license\ngranted under the provisions of this article if, after investigation, it\nshall determine:\n  (1) That any sale by the applicant has been or is being conducted in\nviolation of any provision of 

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