Chapter 5.20
DISTRESSED GOODS SALE
Sections:
5.20.050 License – Application inventory – Renewal.
5.20.060 License – Application – Filing.
5.20.070 License – Application – False statements unlawful.
5.20.080 Sale of noninventoried goods prohibited.
5.20.090 Effect of commingling additional goods with inventoried stock.
5.20.100 Purchase of goods for purpose of commingling with distressed stock – Effect.
5.20.110 Temporary merchant – Fee.
5.20.120 Temporary merchant – License issuance – Daily fee.
5.20.140 Advertising medium – Display of license to be required.
5.20.010 Purpose.
It appears to the city council that fraud has been and is being practiced upon the public in connection with the advertising and conducting of the types of sales in this chapter regulated and licensed, and there is a need for the exercise of the police power to prevent such practice. (Ord. 1362 § 1, 1967; Ord. 247 § 1, 1932).
5.20.020 Definitions.
As used in this chapter:
(1) “Closing out sale” means any sale advertised or otherwise 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;
(2) “Distressed goods, wares or merchandise” includes all goods, wares and merchandise advertised as an insurance, bankruptcy, mortgage, insolvency, assignee’s, personal representative’s, receiver’s or trustee’s sale, or a sale of goods, wares and merchandise advertised as damaged by fire, smoke, water or otherwise, or a sale of goods, wares and merchandise advertised as obtained by, through, as a result of or by reason of any of the above named situations or contingencies;
(3) “Person” includes any person, firm or corporation in the city, except a temporary merchant as hereinafter defined. The manager of any firm or corporation shall be deemed responsible for the obtaining of such license as well as such person, firm or corporation;
(4) “Removal sale” means any sale advertised or otherwise 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 at that business location. (Ord. 1362 § 1, 1967; Ord. 247 §§ 3, 4, 1932).
5.20.030 License – Required.
No person shall advertise, represent or hold out that any sale of goods, wares or merchandise is a sale of distressed goods, wares or merchandise, removal or closing out sale in the city unless he shall have first obtained a license to conduct such sales from the clerk of the city. (Ord. 247 § 2, 1932).
5.20.040 License – Fees.
The license fee for any such sale shall be the sum of $100.00 plus $5.00 for each $1,000, or fraction thereof, of the submitted inventory, for a period of three months. (Ord. 1362 § 1, 1967; Ord. 247 § 5, 1932).
5.20.050 License – Application inventory – Renewal.
(1) A written application shall be made for each such license which shall be accompanied by a complete inventory of all goods, wares and merchandise to be sold and the applicant’s purchase price of each item or group of items, of the same class and quality, to be sold. The application shall also specify the period of time during which the sale is to be held. This time shall not exceed three months, but if at any time during said three months a sworn application is filed with the city council making it appear that all the goods in the original inventory have not been sold, accompanied by an inventory of what remains, a supplemental license shall be issued by the city clerk upon compliance by the applicant with the requirements of the original license and upon the payment of an additional license fee of $25.00 per day, which license shall continue in effect only as long as the daily license fee shall be paid and applicant complies with the other provisions of this chapter.
(2) Any application for a license under the provisions of this chapter covering any goods, wares or merchandise previously inventoried and licensed shall be deemed to be an application for a renewal under subsection (1) of this section, whether presented by the original applicant or by any other person. (Ord. 1362 § 1, 1967; Ord. 247 § 6, 1932).
5.20.060 License – Application – Filing.
The clerk shall file such applications and shall endorse on each application the date a license is granted or refused. (Ord. 247 § 7, 1932).
5.20.070 License – Application – False statements unlawful.
It is unlawful to make a false statement in any such application, or for the purpose of securing a license hereunder. (Ord. 247 § 8, 1932).
5.20.080 Sale of noninventoried goods prohibited.
No person operating under such a license shall add any goods to the inventoried stock and no goods shall be sold except that included in the original inventory. Each sale of goods not so inventoried shall constitute a separate offense under this chapter. (Ord. 247 § 11, 1932).
5.20.090 Effect of commingling additional goods with inventoried stock.
The license shall be valid only for the inventoried goods. Commingling of additional merchandise with that inventoried shall be grounds for immediate revocation of the license by the city clerk. (Ord. 1362 § 1, 1967; Ord. 247 § 9, 1932).
5.20.100 Purchase of goods for purpose of commingling with distressed stock – Effect.
No person seeking a license shall secure goods, wares or merchandise prior to the application for a license for the purpose of commingling with the distressed stock, and any unusual purchase or addition to stocks within 60 days prior to application for a license shall be presumptive evidence that any such purchase or addition was made for the purpose of commingling at such sale. (Ord. 247 § 10, 1932).
5.20.110 Temporary merchant – Fee.
Any person, firm or corporation who brings into the city a stock of goods, wares, or merchandise, described in LMC 5.20.040 as “distressed goods, wares, or merchandise” to be sold or disposed of at special sale or sales, or at an auction sale or sales, shall be for the purpose of this chapter known as a “temporary merchant” and before selling or offering to sell any of such merchandise shall pay a license fee of $50.00 per day as provided in LMC 5.20.120. (Ord. 247 § 11, 1932).
5.20.120 Temporary merchant – License issuance – Daily fee.
Any such person, firm or corporation known as a temporary merchant desiring to carry on such a business shall deposit the license fee for one day with the city treasurer, and take his receipt therefor, and if approved by the city council, the clerk shall be directed to issue him a license, and the said party so licensed shall, before making any sale, on each and every day thereafter pay to the city treasurer the sum of $50.00, and a failure to make such payment before making any sale shall revoke such license. (Ord. 247 § 13, 1932).
5.20.130 Exemptions.
This chapter shall not apply to public or court officers or to any person acting under the direction of state or federal courts in the course of their official duties. (Ord. 247 § 14, 1932).
5.20.140 Advertising medium – Display of license to be required.
It is unlawful for any person to accept advertising pertaining to any sale regulated by this chapter without requiring the advertiser to exhibit to the person accepting such advertising the license required by this chapter. (Ord. 1362 § 2, 1967).