East Palo Alto Municipal Code Art. I General Regulations

For the purpose of this chapter, the following words and terms shall be deemed to mean and be construed as follows:

"Advertise, advertisement, advertising, publish, publication" means 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, handbill, written or printed notice, printed display, billboard display, poster and radio announcement.

"Auction house" means any business or establishment which is established for the purpose of conducting auction sales, and which has a fixed and permanent place of business.

"Auction sale" means a sale of property by public outcry to the highest bidder.

"Auctioneer" means any person who shall, by public outcry, sell or offer to sell to the highest bidder, or any person who shall arrange for the disposal at public offering to the highest bidder, when bids are called for, either in person or by duly employed and licensed auctioneers, any goods, wares, merchandise, fruits, stocks, bonds and other securities, or other personal property, in any building or on any of the streets or sidewalks, or in any other place in the city, where any and all persons who choose are permitted to attend and offer bids, or any person who shall advertise as a public auctioneer, or in any other manner hold himself out as such for public patronage, or shall receive fees as a commission for services as such.

"Fire or closing out sale" means any sale of, or any offer to sell, to the public or any group thereof, any goods, wares, 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;

All sales advertised in any manner calculated to convey to the public the belief that upon the disposal of the goods to be placed on sale, the business or that portion thereof being conducted at any location will cease, be removed, be interrupted, discontinued or changed;

All sales advertised in a manner to indicate that the goods, wares or merchandise to be sold, or any part thereof, have been involved in any business failure, or have been derived from a business which has failed, been closed, discontinued or liquidated;

All sales advertised to be "Adjuster's Sale," "Adjustment Sale," "Assignee's Sale," "Bankrupt Sale," "Benefit of Administrator's Sale," "Benefit of Trustee's Sale," "Building Coming Down Sale," "Closing Sale," "Closing Out Sale," "Creditors' Committee Sale," "Creditors Sale," "Damaged Goods Sale," "End Sale," "Executor's Sale," "Final Days Sale," "Fire Sale," "Forced Out Sale," "Forced Out of Business Sale," "Insolvent Sale," "Insurance Salvage Sale," "Liquidation Sale," "Loss of Lease Sale," "Mortgage Sale," "Outselling Sale," "Receiver's Sale," "Removal Sale," "Reorganization Sale," "Salvage Sale," "Selling Out Sale," "Smoke Sale," "Smoke and Water Sale," "Trustee's Sale," "Quitting Business Sale," "Wholesale Closing Out Sale," "We Quit Sale," "We Give Up Sale," "Fixtures for Sale," or advertised by any other expression or characterization closely similar to any of the foregoing and calculated to convey the same meaning;

All sales accompanied by advertising indicating a business emergency or failure affecting the seller or any previous holder of goods to be disposed of and all sales advertised to be "Auction Sales" or advertised by any other expressions or characterization closely similar to such phrase and calculated to convey the same meaning;

The term "Fire Sale" or "Closing Out Sale" shall include a sale in which a seller announces a price at which he will sell one or more articles of merchandise and then, if no sale occurs, increasingly adds additional articles of merchandise to those originally offered, with or without varying the previously announced price, until a buyer is finally induced to buy the accumulated articles at a fixed price, or a sale in which the seller announces an article at varying prices until a price is announced at which a buyer buys such article or articles of merchandise.

"Person" means any natural person, joint venture, joint stock company, partnership, association, club, company, corporation, business trust, organization, or the manager, agent, servant, officer or employee of any of them.

"Property" means personal property.

(Prior code § 8-2.101)

No person shall hereafter publish or conduct any fire or closing out sale as defined in this chapter without first obtaining a license therefor from the city council in the manner hereinafter provided in this chapter.

(Prior code § 8-2.102)

No person shall arrange or advertise for the disposal at public offering to the highest bidder, or sell or offer to sell at public auction within the city, or in any other manner carry on the business of selling or soliciting for sale at public auction, any property, whether the same shall be his own property or the property of others, without first complying with the provisions of this chapter relating to auction sales and auctioneers, and obtaining a license as a public auctioneer as provided in this chapter.

(Prior code § 8-2.103)

No license to conduct a fire or closing out sale, or license for auctioneer, as such terms are defined in this chapter, shall be granted except upon written application, signed and verified before a person authorized to administer oaths, by the person who intends to conduct such sale or person who intends to act as an auctioneer at an auction sale. Such application shall contain the information as hereinafter required for fire and closing out sales or auctioneers.

If the applicant is a firm, the application shall state the residence addresses of the members of such firm. If the applicant is a corporation, the application shall state the residence addresses of the president, the secretary and the managing director, if any, of such corporation.

Such application shall be filed with the city tax collector, together with any fees or bonds required by this chapter. Within five days after receipt of the application the tax collector shall transmit the application to the chief of police or other officer appointed by him/her, who shall conduct such investigation as he/she deems necessary to determine whether the statements contained in the application are true, and whether the application should be granted. After such examination, the chief of police shall endorse thereon his recommendation for approval or denial of the application and transmit the application to the city council.

The city council shall review the application and recommendations of the chief of police. If the application has been approved by the chief of police, the city council shall grant such license, unless applicant does not have sufficiently good character and reputation to render it in the interests of the public that a license be granted. The city council shall not deny a license until the city council first notifies the applicant in writing of its intention to deny the license. The city council shall provide an opportunity for a hearing for the applicant as to whether the license should be granted or denied if the applicant, in writing, within ten days after receipt of notice of intention to deny the license, requests such hearing.

If the license is granted, the city council shall transmit the application to the tax collector with the city council's approval thereon, and the tax collector shall issue the license applied for, if license fees and any bonds required by this chapter have been delivered to him.

(Prior code § 8-2.104)

A license granted to any person pursuant to this chapter is not transferable to any other person.

(Prior code § 8-2.105)

Every person having a license under the provisions of this chapter shall keep such license posted and exhibited in some conspicuous part of the premises wherein the fire, closing out or auction sale is being held. Every person having a license under the provisions of this chapter shall produce and exhibit the same whenever requested to do so by any officer authorized to issue, inspect or collect licenses.

(Prior code § 8-2.106)

The city council shall have the power to revoke at any time any fire or closing out sale license or auctioneer's license granted in accordance with this chapter, whenever any such fire, closing out or auction sale is being conducted in violation of any of the provisions of this chapter, or in such a manner as to deceive or defraud the public.

No license shall be revoked until a written complaint has been made and a copy thereof has been filed with the city council, setting forth in ordinary and concise language the charge made against the licensee. Such complaint shall be verified by the oath of the person making the charge, such verification being in the form prescribed by the Code of Civil Procedure for verified pleadings in civil actions. Upon receipt of the complaint, the council shall set a day for hearing on revocation of the permit, and at least ten days prior to the hearing shall cause a copy of the complaint and notice of hearing to be served upon the permittee either personally or by mail at the address where licensee is conducting or intending to conduct such sale. When the license of any person is revoked for any cause, no new or other license shall be granted to the same person within six months after such revocation.

(Prior code § 8-2.107)

The provisions of this chapter shall not apply to or affect the following persons:

A. Persons acting pursuant to an order or process of court of a competent jurisdiction; or

B. Persons acting in accordance with their powers and duties as public officers, such as sheriffs, marshals and public administrators.

(Prior code § 8-2.108)