§ 6-8. Investigation; denial of license.

(a) Licensor may investigate.

Upon receipt of the application, the licensor may, in his discretion make or cause to be made an examination, audit, or investigation of the applicant and all of the facts contained in said application in relation to the proposed sale.

(b) Grounds for denial.

(1) The application shall be denied or refused if the licensor finds any 1 or more of the following facts or circumstances to exist:

(i) that the inventory contains goods, wares, or merchandise not purchased by the applicant for resale on bona fide orders without cancellation privileges;

(ii) that the inventory contains goods, wares, or merchandise purchased by the applicant on consignment;

(iii) that the applicant, either directly or indirectly, and within 1 year prior to the date of the filing of the application, has conducted a sale in connection with which he advertised or represented that the entire business conducted at the particular location was to be closed out or terminated;

(iv) that the applicant was granted a prior license hereunder within 1 year preceding the date of the filing of the application, where such prior license was based upon an application setting forth that the entire business conducted at a particular location was to be closed out or terminated;

(v) that the applicant has theretofore been convicted of a violation of this subtitle;

(vi) that the goods, wares, or merchandise as described in the inventory were transferred or assigned to the applicant prior to the date of the filing of the application and that the transfer or assignment was not made for a valuable and adequate consideration; or

(vii) that the inventory contains goods, wares, or merchandise purchased by the applicant or added to the applicant's stock in contemplation of the sale and for the purpose of selling them at the sale.

(2) For purposes of item (vii), any unusual purchase or additions to the stock of such goods, wares, and merchandise made within 60 days prior to the date of the filing of such application shall be presumptive evidence that such purchase or additions were made in contemplation of such sale and for the purpose of selling the same at such sale.