Grand Terrace Municipal Code Ch. 5.24 Distress Sales

It is unlawful for any person, without first obtaining from the City clerk a license to be designated as a "distress sale license," to advertise or conduct any sale of goods at retail, which sale is represented by that person or any agent of his as:

A. A sale of goods damaged by fire, water or other casualty; or

B. A sale for liquidation or closing out of a business or moving of the place of business; or

C. A sale of assets of the estate of a bankrupt, insolvent or deceased person or, in the hands of an assignee, adjuster, trustee, executor, administrator, guardian, receiver or other fiduciary, unless the person conducting such sale possesses a valid appointment by a court of competent jurisdiction appointing the person to a position entitling the person, either by its terms or by operation of law, to conduct such sale of the assets actually sold and offered for sale; or

D. A sale of jobbers, manufacturers or wholesalers; or

E. A sale of salvaged goods; or

F. Any other sale which is by representation of advertisement intended to lead, or does actually reasonably lead, or has a reasonable tendency to lead the public to believe that the person conducting such sale is selling out the goods for less than the current or going retail price thereof in the City, by reason of damage, economic or legal distress, or similar temporary circumstances.

(Ord. 102 § 10, 1986; Ord. 1 § 1 (part), 1978: county code § 42.031)

All sales described in Section 5.24.010 shall be known as "distress sales."

(Ord. 1 § 1(part), 1978: county code § 42.032)

A distress sales license shall be issued only upon application including or accompanied by the following requirements:

A. The name and residence address of the person to whom the license is to be issued, hereinafter designated as the applicant, and the name and residence address of the legal owner of the stock to be sold;

B. Request for issuance of a distress sale license, and a designation of the proper subsection or subsections of Section 5.24.010 which applies or apply to the proposed sale;

C. An inventory of the stock on hand in triplicate;

D. A complete list, and proof of the correctness thereof, of all goods not yet on hand which will or may be offered at the proposed distress sale, and proof that the same already belong to applicant, or have previously been ordered, or that the applicant is legally bonded to purchase (or dispose of) the same;

E. The business address or addresses at which the proposed distress sale is to occur;

F. The business name under which the proposed distress sale is to occur;

G. The length of time that the applicant has conducted the business or used the business name under which the proposed distress sale will occur, and the same as applied to the present address;

H. Whether the stock on hand or to come was ordered for the purpose of the proposed distress sale;

I. The proposed beginning and ending dates of the proposed distress sale;

J. The location of the records of such proposed distress sale;

K. Any other information which the applicant wishes to offer;

L. A certificate under penalty of perjury or an affidavit attesting to the correctness of the information, inventory and list required in this Section.

(Ord. 1 § 1 (part), 1978: county code § 42.033)

The distress sale license shall not be issued if:

A. The business has not been in existence at the address for more than six months last past, in cases where the proposed distress sale falls under subsections B or F of Section 5.24.010;

B. The stock or any portion thereof proposed to be sold was acquired or contracted for, for the purpose of the proposed distress sale, if the same falls under subsections B or F of Section 5.24.010;

C. The applicant fails to declare under penalty of perjury that goods proposed to be sold under subsections A, C, D or E of Section 5.24.010 are actually of the description therein designated, such as damaged under subsection A, sold under circumstances described in subsection C, or by persons described in subsection D, or salvaged under subsection E;

D. The applicant has conducted any distress sale during the previous six months, whether of the same or a different category, and whether under the same or a different business or firm name, and whether alone or in partnership with the same or different persons, and if any person is the owner of the majority of stock in a corporation applying or which has applied for or been granted any sort of distress sale license, the owner shall be deemed the applicant for purposes of subsections D, E or F of this Section;

E. The applicant has obtained a previous distress sale license when not actually entitled thereto, or has obtained such a license and has exceeded the terms thereof, or has conducted a distress sale without a proper required license; or

F. The applicant or legal owner has been convicted of grand theft or fraud in the state of California, or of any crime in another state which would be grand theft or fraud if committed in the state of California.

(Ord. 1 § 1(part), 1978: county code § 42.034)

The license shall permit the distress sale of the type therein designated for a period of thirty days, which period shall be designated by beginning and ending date in the license; and if the license fails to specify the year, it shall apply only to the first month and day as described following the date on which the license is issued.

(Ord. 1 § 1(part), 1978: county code § 42.035)

In cases of special hardship, as determined by the chief of police, extensions may be granted allowing the permit to remain in effect for additional time, not to exceed a total of ninety days from the proposed beginning date of the sale as described in the original permit.

(Ord. 1 § 1(part), 1978: county code § 42.036)

The application for any permit mentioned in this Chapter may require such additional information as will enable the issuing authority to determine any facts needed by it as foundation for any action it is authorized in this Chapter, expressly or by implication, to take.

(Ord. 1 § 1(part), 1978: county code § 42.037)

Wherever in this Chapter the applicant is required to give his oath or declaration under penalty of perjury, this may be done by an agent if the applicant is a corporation. Any body politic shall be excluded from these provisions.

(Ord. 1 § 1(part), 1978: county code § 42.038)

The inventory required by Section 5.24.030 shall contain a complete and accurate list of the stock of goods, wares and merchandise to be sold at such sale for which a license is required by this Chapter, together with the wholesale price thereof, which inventory or list shall be signed by the person seeking the license or by a resident agent thereunto authorized and by affidavit at the foot thereof he or such agent shall swear or affirm that the information therein given is full and true and known by him or such agent to be so.

(Ord. 1 § 1 (part), 1978: county code § 42.039)

It is unlawful for any person to do any of the acts set forth in Section 5.24.010, although such person has a valid current distress sale license, unless such distress sale is conducted in strict and exact conformance to the description and terms of the sale, as described in the application for any such license, except that, where the terms of the permit differ from the terms of the application therefor, it is unlawful to conduct such distress sale contrary to any term of the license.

(Ord. 1 § 1(part), 1978: county code § 42.0310)

It is unlawful to sell, offer or expose for sale at any such sale, or to list on such inventory, any goods, wares or merchandise which are not the regular stock of the store or other place, the business of which is to be closed out by such sale, or to make any replenishment or addition as to such stock for the purpose of such sale, except those items listed as provided in Section 5.24.030(D), or during the time thereof, or to fail, neglect or refuse to keep accurate records of the articles or things sold, from which records the license-issuing authority may ascertain the kind and quantity of goods sold, and it is unlawful to fail to make and keep all records of the distress sale available for inspection at any reasonable business hour by a representative of the City.

(Ord. 102 § 11, 1986; Ord. 1 § 1(part), 1978: county code § 42.0311)