Chapter 5.08
BANKRUPTCY, CLOSING-OUT, FIRE AND GARAGE SALES
Sections:
5.08.020 Sale permit – Required.
5.08.030 Sale permit – Application.
5.08.040 Applicant’s pledge as to conduct of sale.
5.08.050 Place of sale – Business address – Bond.
5.08.060 Time and duration of sale – Extensions.
5.08.070 Prerequisite to sale permit issuance.
5.08.090 Business occupation tax permit.
5.08.100 Sale permit – Issuance.
5.08.110 Sale permit – Revocation.
5.08.120 Violations – Penalties – Alternative remedies.
5.08.010 Definitions.
For the purpose of this chapter, the following terms shall mean:
“Bankruptcy sale” means a sale conducted where actual bankruptcy proceedings have been filed with the federal court, either voluntary or involuntary, and the stock and fixtures of the business are sold through the bankruptcy proceedings.
“Closing-out sale” means a sale conducted in the process of terminating a business activity, for the purpose of or aiding in the disposition of the entire stock or merchandise of such business.
“Fire sale” means a sale conducted for the purpose of disposing of damaged merchandise, whether such damage was the result of fire, water or any of the elements or caused in the course of shipping, handling or manufacturing.
“Garage sale” means a sale conducted by one or more persons, of primarily personal belongings, and which takes place on the residential premises of one of the owners. (Ord. 79-8 § 1(1) – (4))
5.08.020 Sale permit – Required.
Except as to sales under judicial process, it is unlawful for any person to sell, dispose of or offer for sale in the city, by means of or under the title of bankruptcy sales, liquidating, closing-out, removal, quitting business, fire or garage sales or similarly designated title, whether the same is his property or whether he sells or offers the same for sale as agent, actor or employee of another, unless and until the person desiring to hold such sale obtains a permit therefor. (Ord. 79-8 § 1)
5.08.030 Sale permit – Application.
Any person desiring to hold a bankruptcy sale, closing-out sale, fire sale or garage sale, as defined in LCMC 5.08.010, shall file with the city manager or designate, prior to the opening day of such sale, a written application showing the following information:
A. The name or names of the legal owners of the merchandise to be disposed of at such sale;
B. The name or names of those in legal possession of such merchandise;
C. The name or names of those who will actually dispose of such merchandise at such sale. (Ord. 79-8 § 2)
5.08.040 Applicant’s pledge as to conduct of sale.
A. In submitting the application provided for in LCMC 5.08.030, the applicant shall make a statement declaring that the deceptive-advance, reduction method of attracting purchasers will not be resorted to in connection with such sale or the advertising thereof as follows:
1. The applicant, as an inducement to the securing of such permit, does pledge and obligate himself, or the corporation, firm, association or individuals represented by the applicant, to refrain from marking up or quoting or advertising articles of merchandise at a price above the average or ordinary retail market price of such articles, or at the same time, or at any time, marking down or quoting or advertising the price on such articles in comparison with such marked-up, quoted or advertised prices, or with any prices except the customary or usual prices at which such articles are usually sold or offered for sale.
2. An affirmative statement shall be made that such bankruptcy sale, closing-out sale, quitting business, removal or similarly designated sale is to be conducted in good faith as a result of a bankrupt condition of the applicant, or that the applicant is quitting business at the end of such period of sale, or that such applicant is removing his entire stock of merchandise from his present location to a new and different location in the city, or has actually suffered fire loss to such merchandise within 30 days prior to such date.
3. No new stock shall be added except stock purchased or contracted by the original owner, or in transit, and an itemized statement of such stock shall be filed with the city recorder.
B. This section shall not apply to garage sales. (Ord. 79-8 § 3)
5.08.050 Place of sale – Business address – Bond.
A. A statement of the street and number where the sale is to be conducted and of the present, immediately past, and future business addresses of such applicant must be filed with the city manager. The applicant must tender with the application a bond in the sum of $1,000, conditioned upon the observance of this chapter and for the indemnification of any purchaser at such sale applying for loss suffered by reason of misrepresentation.
B. This section shall not apply to garage sales. (Ord. 79-8 § 4)
5.08.060 Time and duration of sale – Extensions.
A. All sales, except garage sales as defined in LCMC 5.08.010, shall be held on successive days, Sundays and legal holidays excepted, and shall not continue for more than 30 days in all from the commencement of such sale. Extension shall be granted if need is shown.
B. Garage sales shall only be allowed twice each calendar year for a maximum of 14 days including Saturdays, Sundays and holidays. (Ord. 79-8 § 5)
5.08.070 Prerequisite to sale permit issuance.
No permit shall be issued for a sale as defined in LCMC 5.08.010 unless it appears that the applicant is in good faith disposing of his stock for the purpose of retiring from business, or unless he is in a voluntary or involuntary bankrupt condition, or unless he is removing his inventoried stock to a new location, or unless he has suffered a fire loss of a substantial amount within 30 days prior to the date of such application, or unless the character of other or similarly designated sales is based upon the foundation of facts or events which his announcement to the public regarding such sales is to put forth as an inducement for patronage, or in case of a garage sale, is a good-faith effort to dispose of personal property which is surplus to the owners thereof. (Ord. 79-8 § 6)
5.08.080 Type of merchandise.
The kind or type of merchandise referred to in this chapter shall be defined as “all articles usually or customarily sold by the retail merchant to the public in the ordinary course of trade.” (Ord. 79-8 § 7)
5.08.090 Business occupation tax permit.
A. Any business entity, as that term is defined in Chapter 5.04 LCMC, that has a current business occupation tax permit, and that applies for a permit under the provisions of this chapter, shall not be required to pay any tax for the issuance of the permit required herein.
B. Any business entity required to have a permit to conduct a sale described in this chapter shall be required to apply for and pay the applicable business occupation tax permit required pursuant to Chapter 5.04 LCMC, if it does not already have said occupation tax permit.
C. All sales described in this chapter, except garage sales, shall be required to conduct the sale within an enclosed building as required under Chapter 5.04 LCMC.
D. There shall be no tax or permit fee charged for garage sales. (Ord. 79-8 § 9)
5.08.100 Sale permit – Issuance.
A. The permit described in this chapter shall be issued to anyone who complies with all applicable laws and regulations as determined by the city manager or designate.
B. However, any applicant owing the city any moneys, and who is delinquent with regard to such moneys, shall not be issued the permit until arrangements have been made with the city to pay such moneys. (Ord. 79-8 § 10)
5.08.110 Sale permit – Revocation.
The city manager shall revoke the permit of any person violating this chapter. (Ord. 79-8 § 8)
5.08.120 Violations – Penalties – Alternative remedies.
A. Violations. Each day that any person conducts any sale in violation of this chapter shall be deemed a separate offense.
B. Penalties. Any person or business entity conducting a sale, other than a garage sale, in violation of this chapter, shall be subject, upon conviction, to a fine of not more than $250.00. Any person conducting a garage sale in violation of this chapter shall be subject, upon conviction, to a fine of not more than $50.00.
C. Alternative Remedies. The city may, as an alternative to other remedies that are legally available for enforcing this chapter, institute injunctive, abatement or other appropriate proceedings to prevent, enjoin, abate or remove a sale that is operating in violation of this chapter. (Ord. 82-22 § 4; Ord. 79-8 § 11)