Burbank Municipal Code Art. 16 Liquidation Sales

3-4-1601: DEFINITION:

As used in this article, unless the context otherwise clearly indicates, “liquidation sale” shall mean any sale of or any offer to sell to the public or to any group or member thereof, goods on order, in transit or in stock in connection with a declared purpose as set forth by advertising of any character, that such sale is anticipatory of or to avoid the termination, liquidation, revision, windup, discontinuance, removal, conclusion, dissolution or abandonment of the business or that portion of the business conducted at any location or any department of the business; and all sales advertised in any manner calculated to convey to the public the information or belief that upon the disposal of the goods to be placed on sale, the business, or any department thereof, or that portion thereof being conducted at any location will cease, be removed, discontinued or changed; and all sales advertised in any manner to be adjustor’s sales, adjustment sales, assignee’s sales, bankrupt sales, benefit of administrator’s sales, benefit of creditor’s sales, benefit of trustee’s sales, building coming down sales, closing out sales, creditor’s committee sales, damaged goods sales, end sales, executor’s sales, final days sales, fire sales, forced out sales, forced out of business sales, forced sales, insolvent sales, salvage sales, liquidation sales, loss of lease sales, mortgage sales, outgoing sales, removal sales, reorganization sales, receiver’s sales, selling out sales, smoke sales, smoke damaged sales, smoke and water sales, trustee’s sales, quitting business sales, wholesale closing out sales, “we quit” sales, “we give up” sales, “fixtures for sale” sales, distress sales, or any sale advertised by any other expression or characterization closely similar to any of the foregoing and calculated to convey substantially the same meaning; and all sales advertised in a manner calculated to indicate that the goods to be sold, or any part thereof, have been involved in any business which has failed, been closed out, discontinued or liquidated; and all sales accompanied by notices or advertising indicating that the premises are available for purchase or lease or are otherwise to be vacated; and all sales accompanied by advertising indicating a business emergency or failure affecting the seller or any previous holder of the goods proposed to be disposed of; but shall not include auctions regulated by Article 12 of this chapter. [Formerly numbered Section 8-127; renumbered by Ord. No. 3058, eff. 2/21/87; Amended by Ord. No. 3623, eff. 6/28/03.]

3-4-1602: LICENSE FEE:

Every person engaging in a liquidation sale shall pay an annual license fee in the amount set forth in the Burbank Fee Resolution. [Formerly numbered Section 8-128; renumbered by Ord. No. 3058, eff. 2/21/87; Amended by Ord. No. 3623, eff. 6/28/03.]

3-4-1603: PERMIT:

No person shall engage in a liquidation sale without a permit so to do from the Community Development Department. [Formerly numbered Section 8-129; renumbered by Ord. No. 3058, eff. 2/21/87; Amended by Ord. No. 3828, eff. 8/24/12; 3623, 2194.]

3-4-1604: APPLICATION FOR PERMIT:

Applications for liquidation sale permits shall be under oath, shall be filed with the Community Development Department not less that thirty (30) days prior to the proposed liquidation sale, and shall contain, in addition to the information required by Section 3-6-202 of this title:

A. All facts regarding the nature and purpose of the liquidation sale;

B. A complete inventory of the goods proposed to be sold, in sufficient detail to identify each item shown thereon by label, date of purchase and date of delivery or person from whom obtained; the inventory shall also show which items were purchased or received during the period of thirty (30) days immediately preceding the date of the application for permit and shall show each item ordered but not yet delivered and the purchase price of each such item, from whom ordered, and the expected date of delivery;

C. The period of time over which the proposed liquidation sale is to continue; and

D. Such other information as the City may require. [Formerly numbered Section 8-130; renumbered by Ord. No. 3058, eff. 2/21/87; Amended by Ord. No. 3828, eff. 8/24/12; 2194.]

3-4-1605: INVESTIGATION:

Upon receipt of an application for a permit to engage in a liquidation sale, the Community Development Department shall refer the same to the Chief of Police for investigation and report. [Formerly numbered Section 8-131; renumbered by Ord. No. 3058, eff. 2/21/87; Amended by Ord. No. 3828, eff. 8/24/12; 2194.]

3-4-1606: LIMITATION ON GRANTING PERMIT:

No permit shall be granted to engage in liquidation sale:

A. If more than ten percent (10%) of the goods proposed to be sold in such sale shall have been purchased or shall have been received by the applicant during the period of thirty (30) days immediately preceding the application for a permit; provided, however, that this provision shall not apply if the business being liquidated is of such nature that an inventory turnover of more than ten percent (10%) per thirty (30) days is normal for such business; or

B. If the applicant has had such a permit revoked within the six (6) preceding months. [Formerly numbered Section 8-132; renumbered by Ord. No. 3058, eff. 2/21/87; 2844.]

3-4-1607: DURATION OF PERMIT:

Permits to engage in liquidation sales shall not be granted for periods exceeding thirty (30) days, including Sundays and holidays, provided, however, that if it shall be made to appear, upon sworn application to the Community Development Department at any time during said period of thirty (30) days, that all the goods described and inventoried in the original application have not been sold, accompanied by an inventory or statement of what remains thereof, a permit supplemental to that provided for may be issued by the Community Development Department, upon the same terms and conditions as the original permit, granting authority to continue such sale for a further period of thirty (30) days. [Formerly numbered Section 8-133; renumbered by Ord. No. 3058, eff. 2/21/87; Amended by Ord. No. 3828, eff. 8/24/12; 2194.]

3-4-1608: SCOPE OF PERMIT:

Permits to engage in liquidation sales, if granted, shall be valid only for the sale of those items listed in the inventory accompanying the application therefor. [Formerly numbered Section 8-134; renumbered by Ord. No. 3058, eff. 2/21/87.]

3-4-1609: GROUNDS FOR REVOCATION OF PERMIT:

In addition to the grounds for revocation contained in Section 2-1-1521 of this code, any permit to engage in a liquidation sale may be revoked if the permittee:

A. Receives any additional goods during such sale not shown upon the inventory; or

B. Is guilty of unfair practice or unfair dealing in the conduct of such sale, or is perpetrating a fraud upon the public. [Formerly numbered Section 8-135; renumbered by Ord. No. 3058, eff. 2/21/87.]

3-4-1610: FALSE STATEMENT IN APPLICATION:

No person shall make a false statement in the application for a license and permit under the provisions of this article. [Formerly numbered Section 8-136; renumbered by Ord. No. 3058, eff. 2/21/87.]

3-4-1611: FALSE ADVERTISING:

No person shall advertise, represent, or otherwise disseminate to the public any information, whether oral or written, concerning liquidation sales which is false or misleading. [Formerly numbered Section 8- 137; renumbered by Ord. No. 3058, eff. 2/21/87.]

3-4-1612: EXEMPTION:

This article shall not apply to any officer of the court, Constable, or Sheriff, or to any person acting under the direction or order of any court provided by law in this State. [Formerly numbered Section 8-138; renumbered by Ord. No. 3058, eff. 2/21/87.]