Chapter 5.20
CLOSING OUT SALES AND FORCED SALES
Sections:
5.20.020 Restrictions on closing out sales and forced sales.
5.20.030 Exceptions to chapter requirements.
5.20.010 Definitions.
(A) “Closing out sale” means any sale of goods, wares, merchandise or stock in trade, at retail, that is represented as a bankrupt, insolvent, assignee’s, adjuster’s, trustee’s, executor’s, administrator’s, receiver’s, wholesaler’s, jobber’s, manufacturer’s, closing out, liquidation, closing stock, fire or water damage, or any other sale which is by representation or advertisement intended to lead the public to believe that the person conducting such sale is selling out or closing the entire stock of goods, wares, merchandise or stock in trade of any business for less than the current or going retail price thereof.
(B) “Forced sale” means any sale of goods, wares, merchandise or stock in trade, at retail, which is by representation or advertisement intended to lead the public to believe that the person conducting such sale is forced to sell out a substantial portion of their goods, wares, merchandise or stock in trade of any business for less than the current or going retail price thereof. [Ord. 5290 § 16, 2019; Ord. 1449, 1969; prior code § 9.20.010].
5.20.020 Restrictions on closing out sales and forced sales.
(A) It shall be unlawful to sell, offer or expose for sale any goods, wares, merchandise or stock in trade, or fixtures or furnishings which are not the regular stock or fixtures or furnishings of the store or other place, the business of which is to be closed out by such sales, or the stock of which is required to be sold at a forced sale.
(B) It shall be unlawful to make any replenishments or additions to the goods, wares, merchandise or stock in trade of the business for the purpose of such a closing out sale or forced sale.
(C) It shall be unlawful for any person to fail, neglect or refuse to keep accurate records of the articles or things sold at a closing out sale or forced sale, from which records may be ascertained the kind and quantity or number of articles or things sold.
(D) It shall be unlawful for any person to conduct or continue a closing out sale or forced sale for more than 90 consecutive calendar days.
(E) It shall be unlawful for any person to conduct an additional forced sale within one year from the date of completion of a previous forced sale.
(F) It shall be unlawful for any person to continue a business in operation after the expiration of 90 calendar days from the date of commencement of a closing out sale for that business.
(G) It shall be unlawful for any person to engage in a business similar in nature to that business closed out by a closing out sale within six months after the closure of such business. [Ord. 5290 § 16, 2019; Ord. 3407 § 2, 1983; Ord. 1449, 1969; prior code § 9.20.030].
5.20.030 Exceptions to chapter requirements.
The provisions set forth in this chapter shall not apply to trustees in bankruptcy, executors, administrators, or receivers or public officers acting under judicial process. [Ord. 1449, 1969; prior code § 9.20.070].
5.20.040 Violation—Penalty.
A violation of any of the provisions of this chapter shall be a misdemeanor and punishable as provided by this code. [Ord. 5290 § 16, 2019; Ord. 3620 § 12, 1985; Ord. 1449, 1969; prior code § 9.20.080].