Bell Municipal Code Ch. 5.20 Bankruptcy, Fire and Close-Out Sales

For the purpose of this chapter, certain words and phrases shall be defined as follows, unless it is apparent from the context that a different meaning is intended.

"Advertise," "advertisement," "advertising," "publish" and "publication"

mean any and all means, whether oral, written, lettered or printed, used for conveying to the public notice of the conduct of a sale, as defined in this section, or notice of intention to conduct such sale, including but not limited to oral or written announcements by proclamation or outcry, newspaper advertisement, magazine advertisement, handbill, written or printed notice, printed display, billboard display, poster, radio and television announcement.

"Permit"

means a permit to conduct such sale as contemplated by this chapter.

"Permittee"

means any person who shall be granted a permit to conduct such sale as contemplated by this chapter.

"Sale"

means any sale or any offer to sell, to members of the general public, goods, wares or merchandise on order, in transit or in stock, in connection with a declared purpose, as set forth by advertising, that such sale is anticipatory to or to avoid the termination, liquidation, revision, windup, discontinuance, removal, dissolution or abandonment of the business or that portion of the business conducted at any location.

(Prior code § 4130)

No person shall hereafter advertise or conduct any sale without first obtaining a permit therefor from the chief administrative officer, in the manner hereinafter provided in this chapter.

(Prior code § 4131)

No permit to conduct a sale as defined in this chapter shall be granted except upon written application to the chief administrative officer at least 30 days before the sale is to commence, signed and verified, by the person who intends to conduct the sale, or, in the case of a corporation, by an officer thereof. Each application shall set forth and contain the following:

A. Street address and type of building where such sale is to be held;

B. 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;

C. A copy of all advertising proposed to be used in connection with such sale, and a statement of the means or methods of advertising to be used in advertising such sale;

D. The facts in regard to the insurance, bankruptcy, insolvency, assignment, mortgage foreclosure, administration, receivership, trusteeship, removal, executorship removal, or other cause advertised to be the reason for the proposed sale;

E. An inventory or statement, in such form and in such detail as the chief administrative officer may require, setting forth the amount and description of goods, wares and merchandise to be sold at such sale, the date of acquisition of such goods, wares or merchandise, and the persons from whom obtained and the place from which such goods were last taken;

F. If the sale implies that the business is closing, a statement that the applicant intends to close and remove from the premises and the time when he or she intends to do so.

(Prior code § 4132)

No application for any such permit shall be accepted by the chief administrative officer for filing unless accompanied by a filing and processing fee in the amount of $250. The filing and processing fee may be waived in the discretion of the city council for good cause shown to exist by the applicant.

(Prior code § 4133)

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

A. That applicant was granted a license hereunder for a "close-out" type of sale relating to the same or a similar business located in the city within two years preceding the date of the filing of the application;

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

C. That 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. That the inventory is incomplete;

F. That 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 chief administrative officer and/or city attorney, such as will work a fraud upon purchasers.

(Prior code § 4134)

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 such 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, or calling attention to the sale, must be confined to the display, or displays, of goods involved in the sale. The chief administrative officer is empowered to condition the issuance of any permit in such manner as, in his or her opinion, will serve to carry out the provisions of this chapter.

(Prior code § 4135)

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 Division I of this title, 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.

(Prior code § 4136)