Chapter 7.15
FIRE AND GOING-OUT-OF-BUSINESS SALES
Sections:
7.15.030 Provisions supplemental to general licensing chapter.
7.15.040 Established business requisite – Exception.
7.15.050 Interval between sales.
7.15.090 Application requirements – Fees.
7.15.130 Surrender of general license.
7.15.010 Definitions.
For the purposes of this chapter, the following terms, phrases, words, and their derivations shall have the meaning given in this section.
A. “City” is the city of Millbrae.
B. “Collector” is the director of finance of the city of Millbrae.
C. “Fire and other altered goods sale” is a sale held in such a manner as to reasonably cause the public to believe that the sale will offer goods damaged or altered by fire, smoke, water or other means.
D. “Going-out-of-business sale” is a sale held out in such a manner as to reasonably cause the public to believe that upon the disposal of the stock of goods on hand the business will cease and be discontinued, including but not limited to the following sales: adjuster’s; adjustment; alteration; assignee’s; bankrupt; benefit of administrators; benefit of creditors; benefit of trustees; building coming down; closing; creditor’s committee; creditor’s; end; executor’s; final days; forced out; forced out of business; insolvents’; last days; lease expires; liquidation; loss of lease; mortgage sale; receiver’s; trustee’s; quitting business.
E. “Goods” is meant to include any goods, wares, merchandise or other property capable of being the object of a sale regulated under this chapter.
F. “Person” is any person, firm, partnership, association, corporation, company or organization of any kind.
G. “Removal of business sale” is a sale held out in such a manner as to reasonably cause the public to believe that the person conducting the sale will cease and discontinue business at the place of sale upon disposal of the stock of goods on hand and will then move to and resume business at a new location in the city or will then continue business from other existing locations in the city. (Ord. 123, § 1, Amended by Ord. 354, § 12 and Ord. 453, § 3; 1976 Code § 7-3.01; 1966 Code § 5250).
7.15.020 License required.
A license issued by the collector shall be obtained by any person before selling or offering to sell any goods at a sale to be advertised or held out by any means to be one of the following kinds:
A. Going-out-of-business sale;
B. Removal of business sale; and
C. Fire and other altered stock sale. (Ord. 123, § 2, Amended by Ord. 354, § 13; 1976 Code § 7-3.02; 1966 Code § 5251).
7.15.030 Provisions supplemental to general licensing chapter.
The provisions of this chapter are intended to augment and be in addition to the provisions of Chapter 7.05 MMC. Where this chapter imposes a greater restriction upon persons, premises, businesses, or practices than is imposed by Chapter 7.05 MMC, this chapter shall control. (Ord. 123, § 3; 1976 Code § 7-3.03; 1966 Code § 5252).
7.15.040 Established business requisite – Exception.
A. Any person who has not been the owner of a business advertised or described in the application for a license under this chapter for a period of at least six months prior to the date of the proposed sale shall not be granted a license.
B. Exception for Survivors. Upon the death of a person doing business in this city, his or her heirs, devisees or legatees shall have the right to apply at any time for a license under this chapter. (Ord. 123, § 3; 1976 Code § 7-3.04; 1966 Code § 5253).
7.15.050 Interval between sales.
Any person who has held a sale, as regulated under this chapter, at the location stated in the application within one year last past from the date of such application, shall not be granted a license. (Ord. 123, § 3; 1976 Code § 7-3.05; 1966 Code § 5254).
7.15.060 Restricted location.
Where a person applying for a license under this chapter operates more than one place of business, the license issued shall apply only to the one store or branch specified in the application and no other store or branch shall advertise or represent that it is cooperating with it, or in any way participating in the licensed sale, nor shall the store or branch conducting the licensed sale advertise or represent that any other store or branch is cooperating with it or participating in any way in the sale. (Ord. 123, § 3; 1976 Code § 7-3.06; 1966 Code § 5255).
7.15.070 Persons exempted.
The provisions of this chapter shall not apply to or affect the following persons:
A. Persons acting pursuant to an order or process of a court of competent jurisdiction;
B. Persons acting in accordance with their powers and duties as public officials;
C. Duly licensed auctioneers selling at auction;
D. Any publisher of a newspaper, magazine or other publication who publishes in good faith any advertisement, without knowledge of its false, deceptive or misleading character, or without knowledge that the provisions of this chapter have not been complied with. (Ord. 123, § 3; 1976 Code § 7-3.07; 1966 Code § 5256).
7.15.080 Sales exempted.
The provisions of this chapter shall not affect or apply to the following sales:
The sale of any goods, wares, merchandise or property belonging to any governmental agencies, or pursuant to the authority of any process of any court or bona fide sale of the assets of any estate of a deceased person, or where any goods are being sold by any charitable, fraternal or church organization under the name of “rummage sale” or a similar name conveying the same meaning and purpose. (Ord. 123, § 3; 1976 Code § 7-3.08; 1966 Code § 5256).
7.15.090 Application requirements – Fees.
A. Written Information Required. A person desiring to conduct a sale regulated by this chapter shall make a written application to the collector setting forth and containing the following information:
1. The true name and address of the owner of the goods to be the object of the sale;
2. The true name and address of the person from whom he purchased the goods to be sold and the price therefor, and if not purchased, the manner of such acquisition;
3. A description of the place where such sale is to be held;
4. The nature of the occupancy, whether by lease or sublease and the effective date of termination of such occupancy;
5. The dates of the period of time in which the sale is to be conducted;
6. A full and complete statement of the facts in regard to the sale, including the reason for the urgent and expeditious disposal of goods thereby and the manner in which the sale will be conducted;
7. The means to be employed in advertising such sale, together with the proposed content of any advertisement;
8. A complete and detailed inventory of the goods to be sold at such sale as disclosed by the applicant’s records. Said inventory shall be attached to and become part of the required application. All goods included in such inventory shall have been purchased by the applicant for resale on bona fide orders without cancellation privileges and shall not comprise goods purchased on consignment. Such inventory shall not include goods ordered in contemplation of conducting a sale regulated under this chapter. Any unusual purchase or additions to the stock of goods of the business affected by this chapter within fifteen days before the filing of an application under this chapter shall be deemed to be of such character.
B. License Fee. Any applicant for a license under this chapter shall submit to the collector with his application a license fee, and any applicant for a renewal license by this chapter shall submit to the collector with his renewal application a renewal license fee, the amount of each fee shall be fixed by resolution of the city council. (Ord. 123, § 4, Amended by Ord. 354, §§ 13 and 14; 1976 Code § 7-3.09; 1966 Code § 5257).
7.15.100 Effect of license.
A. General. A license shall be issued under this chapter on the following terms:
1. Licensing Period. The license shall authorize the sale described in the application for a period of not more than thirty consecutive days, Sundays and legal holidays excluded, following the issuance thereof.
B. Renewal Procedure. The collector shall renew a license for one period of time only, such period to be in addition to the thirty days permitted in the original license and not to exceed thirty consecutive days, Sundays and holidays excluded, when he finds:
1. That facts exist justifying the license renewal;
2. That the licensee has filed an application for renewal;
3. That the licensee has submitted with the application for renewal a revised inventory showing the items listed on the original inventory remaining unsold and not listing any goods not included in the original application and inventory.
C. For the purpose of subsection (B)(1) of this section, any application for a license under the provisions of this chapter covering any goods previously inventoried as required under this chapter shall be deemed to be an application for renewal whether presented by the original applicant or by any other person. (Ord. 123, § 5, Amended by Ord. 354, § 13; 1976 Code § 7-3.10; 1966 Code § 5258).
7.15.110 Nature of sale.
The license shall authorize only the one type of sale described in the application at the location named therein. (Ord. 123, § 5; 1976 Code § 7-3.11; 1966 Code § 5259).
7.15.120 Saleable goods.
The license shall authorize only the sale of goods described in the inventory attached to the application. (Ord. 123, § 5; 1976 Code § 7-3.12; 1966 Code § 5260).
7.15.130 Surrender of general license.
Upon being issued a license under this chapter for a going-out-of-business sale, the licensee shall surrender to the collector all other business licenses he may hold at the time applicable to the location and goods covered by the application for a license under this chapter. (Ord. 123, § 5, Amended by Ord. 354, § 13; 1976 Code § 7-3.13; 1966 Code § 5261).
7.15.140 Nontransferability.
Any license provided for in this chapter shall not be assignable or transferable. (Ord. 123, § 5; 1976 Code § 7-3.14; 1966 Code § 5262).
7.15.150 Duties of licensee.
A licensee under this chapter shall:
A. Adhere to Inventory. Make no additions whatsoever, during the period of the licensed sale, to the stock of goods set forth in the inventory attached to the application for license;
B. Advertise Properly. Refrain from employing any untrue, deceptive or misleading advertising;
C. Adhere to Advertising. Conduct the licensed sale in strict conformity with any advertising or holding out incident thereto;
D. Keep Duplicate Inventory. Keep available at the place of sale a duplicate copy of the inventory submitted with the application and shall present such duplicate to inspecting officials upon request;
E. Segregate Noninventoried Goods. Keep any other goods separate and apart from the goods listed in the filed inventory as being objects of sale and shall make such distinction clear to the public by placing tags on all inventoried goods in and about the place of sale apprising the public of the status of all such goods. (Ord. 123, § 6; 1976 Code § 7-3.15; 1966 Code § 5263).