Corona Municipal Code Ch. 5.04 Regulation of Close-Out Sales

For the purposes of this chapter, the following terms, phrases, words and their derivations shall have the meanings given herein. When not inconsistent with the context, words used in the present tense include the future, words in the plural number include the singular number, and words in the singular number include the plural number. The word "shall" is always mandatory and not merely directory.

(A) "City" is the City of Corona.

(B) "City License Officer" is the Director of Finance of the City of Corona.

(C) "Fire and other altered goods sale" is a sale held out in such a manner as to reasonably cause the public to believe that the sale will offer goods damaged or altered by fire, smoke, water or other means.

(D) "Going out of business sale" is a sale 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, including but not limited to the following sales: adjuster’s; adjustment; alteration; assignee’s; bankrupt; benefit of administrator’s; benefit of creditors’; benefit of trustee; building coming down; closing; creditor’s committee; creditor’s; end; executor’s; final days; forced out; forced out of business; insolvents’; last days; lease expires; liquidation; loss of lease; mortgage sale; receiver’s; trustee’s; quitting business.

(E) "Goods" is meant to include any material, wares, merchandise or other property capable of being the object of a sale regulated hereunder.

(F) "Person" is any individual, firm, partnership, association, corporation, company or organization of any kind.

(G) "Removal of business sale" is a sale held out in such a manner as to reasonably cause the public to believe that the person conducting the sale will cease and discontinue business at the place of sale upon disposal of the stock of goods on hand and will then move to and resume business at a new location in the city or will then continue business from other existing locations in the city.

(`78 Code, § 5.04.010.) (Ord. 2238 § 1 (part), 1995.)

A close-out sale license issued by the Director of Finance shall be obtained by any person before selling or offering to sell any goods at a sale to be advertised or held out by any means to be a going out of business sale, a removal of business sale or a fire and other altered stock sale.

(`78 Code, § 5.04.020.) (Ord. 2238 § 1 (part), 1995.)

(A) Interval between sales. Any person who has held a sale as regulated hereunder, at the location stated in the application, within one year last past from the date of such application, shall not be granted a license.

(B) Restricted location. Where a person applying for a license hereunder operates more than one place of business, the license issued shall apply only to the one store or branch specified in the application, and no other store or branch shall advertise or represent that it is cooperating with it or in any way participating in the licensed sale, nor shall the store or branch conducting the licensed sale advertise or represent that any other store or branch is cooperating with it or participating in any way in the licensed sale.

(C) Persons exempted. The provisions of this part shall not apply to or affect the following persons:

(1) Persons acting pursuant to an order or process of a court of competent jurisdiction;

(2) Persons acting in accordance with their powers and duties as public officials;

(3) Duly licensed auctioneers selling at auction;

(4) Persons conducting a sale of the type regulated herein on the effective date of this chapter, unless such sale is continued for a period of more than 15 days from and after such effective date, in which event, such person, at the lapse of the 15 day period, shall comply with these provisions;

(5) Any publisher of a newspaper, magazine or other publication who publishes in good faith any advertisement, without knowledge of its false, deceptive or misleading character or without knowledge that the provisions of this chapter have not been complied with.

(`78 Code, § 5.04.030.) (Ord. 2238 § 1 (part), 1995.)

(A) Written information required. A person desiring to conduct a sale regulated by this chapter shall make a written application to the Director of Finance setting forth and containing the following information:

(1) The true name and address of the owner of the goods to be the object of the sale;

(2) A description of the place where such sale is to be held;

(3) The dates of the period of time in which the sale is to be conducted;

(4) A complete and accurate list of the goods to be sold at such sale as disclosed by the applicant’s records.

(a) Bona fide orders. All goods included on such list shall have been purchased by the applicant for resale on bona fide orders without cancellation privileges and shall not comprise goods purchased on consignment.

(b) Goods purchased for sale hereunder. The list shall not include goods ordered in contemplation of conducting a sale regulated hereunder. Any irregular purchase or additions to the stock of goods of the business affected within 30 days before the filing of an application hereunder shall be deemed to be of such character.

(B) License fee. Any applicant for a license hereunder shall submit to the Director of Finance with the application a license fee of $50.

(`78 Code, § 5.04.040.) (Ord. 2238 § 1 (part), 1995.)

A license shall be issued hereunder on the following terms.

(A) Licensing period. The license shall authorize the sale described in the application for a period of not more than 60 consecutive days.

(B) Nature of sale. The license shall authorize only the one type of sale described in the application at the location named therein.

(C) Saleable goods. The license shall authorize only the sale of goods listed with the application.

(D) Valid license. A valid business license must be in effect for the location and goods covered by the close-out sale license.

(E) Non-transferability. Any license herein provided for shall not be assignable or transferable.

(`78 Code, § 5.04.050.) (Ord. 2238 § 1 (part), 1995.)

A licensee hereunder shall do the following:

(A) Adhere to list of goods. Make no additions whatsoever, during the period of the licensed sale, to the stock of goods set forth in the list attached to the application for license;

(B) Advertise truthfully. Refrain from employing any untrue, deceptive or misleading advertising;

(C) Adhere to advertising. Conduct the licensed sale in strict conformity with any advertising or holding out incident thereto;

(D) Keep duplicate application copy. Keep available at the place of sale a duplicate copy of the goods list submitted with the application and shall present such duplicate to inspecting officials upon request;

(E) Segregate non-inventoried goods. Keep any other goods separate and apart from the goods listed as being objects of sale and shall make such distinction clear to the public by placing tags on all inventoried goods in and about the place of sale appraising the public of the status of all such goods.

(`78 Code, § 5.04.060.) (Ord. 2238 § 1 (part), 1995.)