1. Except as otherwise provided in this chapter, before any license is issued, each applicant for a transient merchant license or a blanket license shall file with the city a bond running to the city, in the penal sum therein set forth, executed by applicant as principal, and by a corporate surety upon which service of process may be made in the state of Iowa.  The bond shall be approved by the city attorney and shall be conditioned that the applicant shall comply with the provisions of all of the ordinances of the city, and the statutes of the state of Iowa, regulating and concerning the sale of goods, subscriptions, wares, merchandise or personal property of any nature, including foodstuffs, or for services, including advertising, and will pay all judgments rendered against the applicant for any violation of ordinances or statutes of any of them together, with all judgments and costs that may be recovered against applicant by any person or persons for damage growing out of any misrepresentation or deception practiced on any person transacting such business with applicant, whether said misrepresentation or deceptions were made or practiced by the owners or by their servants, agents, or employees, either at the time of making the sale, or the solicitation of the sale, or through any advertisements of any character whatsoever, printed or circulated with reference to the subject matter of such sale or any part thereof.  Action on the bond may be brought in the name of the city to the use of the aggrieved person.  Such bond shall be further conditioned to indemnify and pay the city for any penalties or costs occasioned by the enforcement of this chapter and shall not be retired until after a lapse of one year from the expiration of each license.

    2. The following persons engaged in the transactions hereinafter set forth shall be exempt from the requirement of posting bond:  transient merchants selling subscriptions, tangible personal property or services, where each sale does not exceed one hundred dollars to any person or to any member of the purchaser’ s immediate family within any consecutive three-month period and where, in addition, no payment, down payment, or deposit whatsoever is required to be made or paid until the property is actually delivered or the services actually performed.

    3. Any person claiming exemption under the provisions of this section shall make request therefor in writing and shall state in said request that the applicant shall not make any sales in violation of the provisions of this section.

    4. All licenses issued where the transient merchant is exempt from the posting of bond under this section shall contain the following language: "No bond has been furnished the City of Sioux City by the holder of the license."

    5. The penal sum of the bond required under the provisions of this chapter is one thousand dollars,

or two times the value of the tangible personal property or service to be sold or offered for sale or the average inventory to be carried by the transient merchant as shown by the application, whichever amount is greater.

    6. The applicant for a blanket license shall in all cases furnish a bond as described in subsection 1. of this section in the penal sum of one thousand dollars.  (Ord. 98/U-6342; 97/U-5556; 85/T-3757)