Hanford Municipal Code Ch. 5.36 Going Out of Business and Related Sales

It is unlawful for any person to advertise, represent or hold out that any sale of goods, wares and merchandise is an insurance, bankruptcy, liquidation, mortgage, insolvent's, assignee's, executor's, administrator's, receivers', removal or closing-out sale, or any particular department of such stock of goods, under the guise of discontinuing business or discontinuing that particular department, or a sale of goods, wares and merchandise damaged by fire, smoke, water or otherwise, or a sale of goods from the stock of a bankrupt, receiver, trustee, insurance company, receivership or trusteeship, or to conduct such a sale unless he shall have first obtained a permit to conduct such a sale from the director of finance.

(Prior code § 5-10.01)

The applicant for such a permit shall make application therefor to the director of finance and, at the time of such application, shall pay a minimum filing fee in the amount of $25. If the net inventory exceeds the sum of $5,000, the filing fee shall be an additional $25. Such application shall be in writing and under oath, showing all the facts in regard to the insurance, bankruptcy, liquidation, mortgaging, insolvency, assignment, administration, receivership, trusteeship or removal by reason of which such sale is to be conducted, or in regard to the closing out of his stock of goods, wares or merchandise damaged by fire, smoke, water or otherwise, and showing all the facts in regard to the sale which he proposes to conduct and the place and manner of conducting the same, including an inventory of the goods, wares and merchandise to be sold at such sale, and a statement of the names of the persons from whom the goods, wares and merchandise so to be sold were obtained, the date of the delivery of such goods, wares and merchandise to the person applying for the license, the place form which such goods, wares and merchandise were last taken, and all details necessary to fully identify the goods, wares and merchandise so to be sold. Such application shall specify the proposed period of time over which such sale shall continue, which period shall not exceed 60 days.

(Prior code § 5-10.02)

The director of finance shall endorse upon such application the date of its filing and shall preserve the same as a record of his office.

(Prior code § 5-10.03)

Any person making a false statement in such application shall be deemed guilty of an infraction.

(Prior code § 5-10.04; Ord. 96-18 § 32, 1996)

Such permit shall be valid only for the sale of the goods, wares and merchandise inventoried and described in the application for such permit, in the manner and at the time and place mentioned and set forth in such application and any removal of such goods, wares and merchandise so inventoried and described in such application from the place of sale mentioned in such application shall cause such goods, wares and merchandise to lose their identity as an insurance, bankrupt, liquidation, mortgage, insolvent's, assignee's, executor's, administrator's, receiver's or trustee's stock or goods, wares and merchandise damaged by fire, smoke or water or otherwise and no permit shall thereafter be issued for the conduct of a sale of any of such goods, wares or merchandise so removed from the place set forth and described in such application or at any other place.

(Prior code § 5-10.05)

No person contemplating the insurance, bankrupt, liquidation, mortgage, insolvent's, assignee's, executor's, administrator's, receiver's or trustee's, removal or closing-out sale or a sale of goods, wares or merchandise damaged by fire, smoke, water or otherwise or a sale of goods from the stock of a bankrupt, receiver, trustee, insurance company, receivership or trusteeship shall order any goods, wares or merchandise for the purpose of selling and disposing of the same at such sale.

(Prior code § 5-10.06)

It is unlawful for any person carrying on or conducting an insurance, bankrupt, liquidation, mortgage, insolvent's, assignee's, executor's, administrator's, receiver's or trustee's, removal or closing-out sale, or a sale of goods, wares or merchandise damaged by fire, smoke, water or otherwise or a sale of goods from the stock of a bankrupt, receiver, trustee, insurance company, receivership or trusteeship to add, during the continuance of such sale, any goods, wares or merchandise, for the purpose of selling the same, to the stock of goods, wares or merchandise described and inventoried in his original application for such permit and no goods, wares or merchandise shall be sold at or during such sale excepting the goods, wares or merchandise described and inventoried in such original application. Each and every addition of goods, wares or merchandise, for the purpose of sale, to such stock of goods, wares or merchandise described and inventoried in such application and each sale of such goods, wares or merchandise as was not inventoried and described in such application, shall constitute a separate offense.

(Prior code § 5-10.07)

Any person who shall advertise, represent or hold out any sale of goods, wares or merchandise to be an insurance, bankrupt, liquidation, mortgage, insolvent's, assignee's, executor administrator's, receiver's or trustee's removal or closing-out sale or a sale of goods, wares or merchandise damaged by fire, water, smoke or otherwise or a sale of goods from the stock of a bankrupt, receiver, trustee, insurance company, receivership or trusteeship without first complying with the provisions of this chapter shall be deemed guilty of an infraction.

(Prior code § 5-10.08; Ord. 96-18 § 33, 1996)

If it shall be made to appear, upon sworn application to the director of finance, at any time during the period of 60 days of the sale that all of the goods, wares and merchandise described and inventoried in the original application have not been sold, a supplemental permit may be issued without additional fee by the director of finance, upon the same terms and conditions as the original permit, granting authority to continue such sale for a further period of 60 days. Such application shall be accompanied by a statement or inventory of the merchandise remaining to be sold.

(Prior code § 5-10.09)

It is unlawful for any person to conduct, make or advertise any fake sale of goods, wares or merchandise in the city. Any person who shall conduct, make or advertise any fake sale of goods, wares or merchandise contrary to the provisions of this section shall be deemed guilty of an infraction.

For the purposes of this section, a "fake sale" is defined to be any one of the following:

A. The sale of goods, wares or merchandise at auction or otherwise to agents or other persons purchasing the same for or on behalf of the owner or another person interested in the selling thereof;

B. The offering for sale of goods, wares or merchandise of a different quality or brand or bearing a different trademark from the merchandise previously advertised for sale;

C. The sale of goods, wares or merchandise misrepresented as to quantity, quality or otherwise.

(Prior code § 5-10.10; Ord. 96-18 § 34, 1996)

The director of finance shall at all times have the power, and it shall be his duty, to make an examination or investigation of the business and the books, records, accounts and other papers pertaining thereto, of any company or individual permitted or authorized to conduct a sale pursuant to the provisions of this chapter.

(Prior code § 5-10.11)

The provisions of this chapter shall not apply to sheriffs, constables or other public or court officers or to any other person, acting upon the license, direction or authority of any state or federal court, selling goods, wares or merchandise in the course of his official duties and pursuant to the provisions of a statute authorizing such sale.

(Prior code § 5-10.12)

Any person who shall hold, conduct or carry on any sale of goods, wares or merchandise as an insurance, bankrupt, mortgage, insolvent's, assignee's, executor's, administrator's, receiver's or trustee's, removal or closing-out sale or sale of goods, wares or merchandise damaged by fire, water or otherwise or a sale of goods from the stock of a bankrupt, receiver, trustee, insurance company, receivership or trusteeship contrary to the provisions of this chapter or whose advertising, statement, representation or assertion is false or untrue in any respect or which, by the exercise of reasonable care, should be known to be false or untrue, deceptive or misleading or who shall violate any of the provisions of this chapter shall be deemed guilty of an infraction.

(Prior code § 5-10.13; Ord. 96-18 § 35, 1996)