Chapter 112 — BANKRUPTCY, FIRE AND CLOSING OUT SALES

For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.

ADVERTISE , ADVERTISEMENT , ADVERTISING , PUBLISH , and/or PUBLICATION. Any and all means,

whether oral, written, lettered or printed, used for the purpose of conveying to the public notice of the conduct of a sale, as defined in this section.

PERMIT. A permit to conduct a sale.

PERMITTEE. Any person who shall be granted a permit to conduct a sale.

SALE. Any sale or any offer to sell, to members of the general public, goods, wares or merchandise in stock, in connection with a declared purpose, as set forth by advertising, that the sale is anticipatory to the termination, liquidation, discontinuance, dissolution or abandonment of the business or that portion of the business to which the sale relates.

('83 Code, § 5.16.010)

(A) No person shall hereafter advertise or conduct any sale, without first obtaining a permit therefor from the City Manager, in the manner provided in this chapter.

(B) Notwithstanding any other provision of this code, a violation of this section shall be deemed to be an infraction. ('83 Code, § 5.16.020) Penalty, see § 10.99

(A) No permit to conduct a sale as defined in this chapter shall be granted except upon written application to the City Manager made at least 30 days before the sale is to commence.

• (B) Each application shall set forth and contain the following:

• (1) Street address and type of building where the sale is to be held.

(2) 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.

(3) A copy of all advertisements proposed to be used in connection with the sale, and a statement of the means or methods of advertising to be used in advertising the sale.

• (4) The facts in regard to the termination or winding up of the business to which the sale relates.

(5) An inventory or statement, in such form and in such detail as the City Manager may require, setting forth the amount and description of goods, wares and merchandise to be sold at the sale, and, the date of acquisition of the goods, wares or merchandise, and the persons from whom obtained and the location of the goods. ('83 Code, § 5.16.030)

No application for any permit shall be accepted by the City Manager for filing unless accompanied by a filing and processing fee as set by resolution of the City Council.

('83 Code, § 5.16.040)

No permit shall be issued if any one or more of the following facts or circumstances are found to exist.

• (A) The applicant was granted a license under this chapter for a "close-out" type of sale relating to the same or a similar business within two years preceding the date of the filing of the application.

(B) The inventory includes goods, wares and merchandise purchased by the applicant or added to his stock in contemplation of such sale and for the purpose of selling the merchandise at the sale. For the purpose of this division, any unusual addition to the stock of such goods, wares and merchandise made within 60 days prior to the filing of the application shall be prima facie evidence that the addition was made in contemplation of the sale and for the purpose of selling the addition at the sale.

• (C) The acquisition by applicant of a bankrupt stock of goods or similar merchandise within six months of application.

• (D) That any representation made in the application is false.

• (E) The inventory is incomplete.

• (F) The advertising set forth is false, fraudulent, deceptive or misleading in any respect.

(G) That the methods to be used by the applicant in conducting the sale are, in the opinion of the City Manager, such as will work a fraud upon purchasers.

('83 Code, § 5.16.050)

Any permit issued under the provisions of this chapter shall authorize only the type of sale named in the application, at the place named therein, for a period of not more than 30 calendar days, and shall permit the sale of only goods which are described in the application, all of which goods, throughout the duration of the sale, must be definitely separated from any other goods displayed at, or within the store or place of business, and all advertising, signs or notices referring to, or calling attention to the sale, must be confined to the display, or displays, or goods involved in the sale. The City Manager is empowered to condition the issuance of any permit in such manner as, in his opinion, will serve to carry out the provisions of this chapter. ('83 Code, § 5.16.060)

The provisions of this chapter shall not apply to any person who has been engaged in a business for which a business license is required pursuant to this code, for a period of five years immediately preceding the conduct, by such person, of a sale for which a permit would otherwise be required hereunder. ('83 Code, § 5.16.070)