Chapter 5.20
CLOSING-OUT SALES
Sections:
5.20.040 Permit – Application – Contents.
5.20.050 Permit – Issuance conditions.
5.20.090 Business license surrender required.
5.20.100 Violation – Misdemeanor and nuisance declaration.
5.20.010 Definitions.
The following words and phrases when used in this chapter shall have the meanings hereinafter ascribed to them:
A. “Close-out sale” means any sale, offer to sell or advertising for sale to the public or any part thereof of goods, wares or merchandise when such sale is anticipatory of the termination, liquidation, revision, wind-up, discontinuance, removal, relocation, dissolution, closing or abandonment of a business conducted at any location, including any sale or offer to sell or advertising for sale to the public or any part thereof of goods, wares or merchandise in stock which have been involved in any business failure or have been derived from any business which has been adjudicated bankrupt, has been closed, discontinued, liquidated or placed in receivership.
B. “Fire sale” means any sale, offer to sell or advertising for sale to the public or any part thereof of goods, wares or merchandise in stock which has been damaged or altered as the result of contact with or exposure to fire, smoke or water. (1964 Code § 9.1.)
5.20.020 Permit – Required.
It is unlawful for any person to advertise or conduct a close-out sale or fire sale, as defined in CMC 5.20.010, without first obtaining a permit therefor from the license collector of the city in the manner hereinafter provided. (1964 Code § 9.2.)
5.20.030 Exemptions.
The provisions of this chapter shall not apply to or affect the following persons:
A. Persons acting in their official capacities as public officials;
B. Persons acting pursuant to process issued by a court of competent jurisdiction;
C. Any publisher of a newspaper, magazine or other periodical or publication who publishes in good faith any advertisement without knowledge of its false, deceptive or misleading character or without knowledge that compliance has not been had with the provisions of this chapter. (1964 Code § 9.3.)
5.20.040 Permit – Application – Contents.
Any person desiring to advertise and conduct a sale regulated by this chapter shall make a written application therefor, under oath, accompanied by a fee in an amount that may be set from time to time by resolution of the city council to the city license collector at least 15 days prior to the commencement of such sale. The application shall contain the following information:
A. Street address and type of building where such sale is to be held;
B. The nature of the occupancy, whether by ownership, lease or sublease, and if by lease or sublease, the effective date of the termination of such tenancy and the name of the owner and sublessor, if any;
C. A copy of all advertisements proposed to be used in connection with such sale and a statement of the means or methods of advertising to be used in advertising such sale;
D. The facts in regard to the insurance, bankruptcy, insolvency, assignment, mortgage foreclosure, administration, receivership, trusteeship, removal, executorship removal or other cause advertised to be the reason for the proposed sale;
E. If the same implies that the business is closing, a statement that the applicant intends to close and remove from the premises and the time he intends to do so;
F. If the applicant has goods, wares or merchandise on order prior to 30 days preceding the date of application, proof of order must be attached. (Ord. 09-1975 § 1, 2009; 1964 Code § 9.4.)
5.20.050 Permit – Issuance conditions.
A. The license collector shall not issue the permit if any of the following are found to exist:
1. That the applicant was granted a permit hereunder for a close-out sale within one year preceding the date of filing of the application;
2. That the applicant was granted a permit hereunder for a fire sale as a result of the same fire or catastrophe;
3. That either subsections (A)(1) or (A)(2) of this section are true with respect to a business substantially in the same ownership as that applied for at the same premises;
4. That any representation made in the application is false;
5. That the applicant has not operated as a retail merchant at that location for at least 90 days prior to date of sale;
6. That the advertising set forth is false, fraudulent, deceptive or misleading in any respect;
7. That the methods to be used by the applicant in conducting the sale are such as will work a fraud upon the purchaser.
B. The license collector may refuse a permit because of insufficiency of the information set forth in the application, but in such event the license collector shall grant the applicant permission to file an amended application. (1964 Code § 9.5.)
5.20.060 Permit – Conditions.
All permits granted under this chapter shall be conditional as follows:
A. That such permit shall be valid only for a period of 60 days from the date of issuance;
B. That such sale shall be held in strict conformity to any advertising or holding out relating thereto;
C. All advertising shall include:
1. The permit number issued to applicant;
2. The final date of such permitted sale;
D. That only goods, wares or merchandise may be sold which are physically located on the licensed premises on the date of application for the permit or on order prior to 30 days preceding the date of application for the permit to qualify as not being ordered in anticipation of such sale. (1964 Code § 9.6.)
5.20.070 Permit – Revocation.
The city license collector or the chief of police shall have the power to revoke at any time any permit granted under this chapter whenever any such sale is being conducted in violation of any of the provisions of this chapter, or in such a manner as to deceive or defraud the public, or if:
A. The holder of any such permit has been guilty of any fraudulent practice in the conduct of the sale authorized by such permit;
B. The holder of any such permit has added or caused or permitted to be added goods, wares or merchandise not physically located on the licensed premises at the date of application or on order prior to 30 days preceding the date of application for the permit, and has offered such additions for sale under such permit;
C. The holder of any such permit has violated any of the provisions contained in this chapter or any conditions of his permit. (1964 Code § 9.7.)
5.20.080 Decision appeal.
Any administrative decision made pursuant to this chapter by the license collector or chief of police may be appealed in writing within five days thereafter to the city council which may affirm, modify or reverse the same. Until the city council decides, however, the administrative decision shall remain in effect. If no appeal is taken to the city council within five days, the administrative decision shall be final. (1964 Code § 9.8.)
5.20.090 Business license surrender required.
Prior to issuance of a close-out sale permit under this chapter, the permittee shall surrender to the city license collector without refund all other business licenses he may then hold applicable to the location and goods covered by such permit. (1964 Code § 9.9.)
5.20.100 Violation – Misdemeanor and nuisance declaration.
The violation of this chapter or any provision hereof is a misdemeanor, and the conduct or advertising of any sale regulated under this chapter without a valid permit is a public nuisance subject to abatement under law. (1964 Code § 9.10.)