Hemet Municipal Code Art. V Going Out of Business Sales

It is unlawful for any person to advertise, represent or hold out that any sale of goods, wares or merchandise is a bankruptcy, mortgage, insolvent's, assignee's, executor's, administrator's, receiver's, trustee's or any removal or closing out sale, or a sale of goods, wares or merchandise damaged by fire, smoke or water, or a sale of goods from the stock of a bankrupt, receiver, trustee, receivership or trusteeship, or to advertise, represent or hold out that any sale of goods, wares or merchandise is anticipatory to or to avoid the termination, closing, liquidating, revision, windup, discontinuance, conclusion or abandonment of the business in connection with such sale, or to advertise or make any representation in any manner as reasonably to convey to the public the belief that upon the disposal of the stock of goods on hand the business will cease and be discontinued, including but not limited to sales advertised, held out or represented as an adjusters sale, adjustment sale, administrator's sale, alteration 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, damaged goods sale, end sale, executor's sale, final days sale, fire sale, forced out sale, forced out of business sale, insolvent sale, last days sale, lease expires sale, liquidation sale, loss of lease sale, mortgage sale, receiver's sale, removal sale, reorganization sale, salvage sale, smoke sale, smoke and water sale, trustee's sale, quitting business sale, or wholesale cleaning out sale, and also including but not limited to sales the advertisement of which contains the word "creditor" or "creditors," unless he shall have first made application for and received a permit to conduct such sale from the chief of police of the city.

(Ord. No. 556; Code 1984, § 6400)

(a) Any person desiring a permit as required by section 18-151 shall make an application therefor to the chief of police of the city, and shall at the time of filing such application pay a filing fee, in the amount established by the city council from time to time, to the city clerk, tax and license collector.

(b) Such application shall conform to the following requirements:

(1) It must be in writing and under oath.

(2) It must contain the names of all parties connected with or interested in such sale.

(3) It must state all the facts in regard to the bankruptcy, mortgage, 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 the stock of goods, wares or merchandise or any particular line or part thereof, with a statement as to the reason for such closing out, or in regard to the injury caused to such goods, wares or merchandise by fire, smoke or water, and showing all the facts in regard to the proposed sale.

(4) It must contain a complete, accurate and detailed inventory fully identifying and describing the goods, wares or merchandise to be sold at such sale, including the following information:

a. A statement of the name and address of the persons from whom the goods, wares or merchandise so to be sold were obtained.

b. The date of delivery of such goods, wares or merchandise to the applicant, the place from which deliveries were made, and the name of the party making the delivery.

(5) It must state the place and manner in which such sale is to be conducted, the kind of sale it will be represented to be, and the manner in which it will be advertised.

(Ord. No. 556; Code 1984, § 6401)

(a) If the chief of police is satisfied that the proposed sale is of the character which the applicant for a permit under this article desires to conduct and advertise, and that neither the applicant nor any of its officers, directors or owners have violated this article or any other license ordinance of the city, the chief of police shall issue a permit to the person applying for the permit, authorizing him to advertise and conduct a sale of the particular kind mentioned in the application, according to the requirements of this article, for a period not to exceed 60 days; provided, however, that the applicant may thereafter obtain a supplemental permit as provided in this article.

(b) A permit supplemental to that originally issued shall be issued to the applicant by the chief of police for an additional period of not to exceed 60 days upon the same terms and conditions as such original permit and upon the payment of the fee prescribed therefor, provided it shall be made to appear upon a written application under oath that all the goods, wares and merchandise described in the original inventory have not been sold. Such application shall be accompanied by a complete inventory of such goods, wares and merchandise that have not been sold.

(c) No permit shall be issued pursuant to the provisions of this article if any of the goods, wares or merchandise in the inventory have been removed from the place of sale mentioned in the application after having been previously inventoried as required in this article, and any removal of such goods, wares or merchandise shall cause such goods, wares or merchandise to lose their identity as bankrupt, mortgaged, insolvent's, assignee's, executor's, administrator's, receiver's or trustee's stock of goods, wares and merchandise, or a stock of goods, wares and merchandise damaged by fire, smoke or water, and no permit shall thereafter be issued under this article for the conducting of a sale of any such goods, wares or merchandise so removed.

(d) No permit shall be issued to any person for a closing out sale unless such person has been in business at the same location for a period of time in excess of 90 days, nor shall such permit be issued to any person who has held such a sale at the same location within one year preceding the date of application.

(Ord. No. 556; Code 1984, § 6402)

The chief of police may require a hearing, upon five days' written notice to the applicant for a permit under this article stating the time, place and purpose of such hearing, for the purpose of determining whether any unusual purchases and additions to the stock of such goods, wares or merchandise have been made within 60 days prior to the filing of the application for a permit to conduct such sale mentioned in section 18-151. If, after hearing, it is determined by the chief of police that any such purchases or additions have been so made during such period, the chief of police shall refuse to issue a permit therefor.

(Ord. No. 556; Code 1984, § 6403)

The chief of police, when application is made as provided for in section 18-152, shall endorse upon such application the date of its filing and shall preserve the application as a record, and shall make an abstract of the facts set forth in such application in a book kept for that purpose, properly indexed, containing the name of the person asking for such permit, the nature of the proposed sale, the place where such sale is to be conducted, its duration, the inventory value of the goods, wares and merchandise to be sold, and a general statement as to where the goods, wares and merchandise came from, and shall make in such book a notation as to the issuance or refusal of the permit applied for, together with the date of the permit, and shall endorse on such application the date the permit therein applied for is granted or refused, and such application and abstract shall be prima facie evidence of all statements therein contained.

(Ord. No. 556; Code 1984, § 6404)

It is unlawful for any person carrying on or conducting a bankrupt, mortgage, insolvent, assignee's, executor's, administrator's, receiver's or trustee's, or any removal or closing out sale, or sale of goods, wares or merchandise damaged by fire, smoke or water, or sale of goods from the stock of a bankrupt, receiver, trustee, receivership or trusteeship, under a permit as provided in section 18-151, to add, during the continuance of such sale, any goods, wares or merchandise, for the purpose of selling the goods, wares or merchandise, to the stock of goods, wares or merchandise described and inventoried in his original application for such permit. 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 were not inventoried and described in such application, shall constitute a separate offense.

(Ord. No. 556; Code 1984, § 6405)

The chief of police shall at all times have the power to make an examination or investigation of the business to which a permit has been issued under this article, and the books, records and accounts, and other papers pertaining thereto, of any company or individual theretofore permitted or authorized to conduct such sales.

(Ord. No. 556; Code 1984, § 6406)

Every permit issued under this article shall be subject to revocation at any time in the manner provided in this section. Whenever it appears to the legislative body of the city that there are reasonable grounds for such action, an order to show cause why such permit should not be revoked shall be given the holder thereof. Such order shall contain a brief statement of the reasons therefor, and shall fix a time and place when such permittee may appear and be heard, with witnesses, in his own behalf. Such order may be delivered to such permittee personally or may be left in a conspicuous place at or with the person in charge of the place of business, if any, where the privileges of the permit are or shall be exercised. At the time and place fixed in such order, or at any time to which the matter may be continued, the legislative body shall hear and pass upon all matters within the scope of such order, and if after such hearing such legislative body is satisfied that proper notice has been given and that such permittee has violated any ordinance of the city or statute of the state, or of the United States, or that such permittee is not a fit person to be trusted with the privileges granted by such permit, whether the conduct upon which such finding is based constitutes a public offense punishable in the courts or not, the legislative body may, by order made on motion, suspend or revoke such permit, and during the period of suspension, or after such revocation, as the case may be, such permit shall be void and without force or effect. In making any such order, the legislative body may authorize the refund of all or any portions of the fee paid therefor. After any such permit has been revoked, neither the holder thereof nor any person acting for him directly or indirectly shall be entitled to another permit to carry on the same or any similar sale in the city unless the application for such permit shall be specifically approved by the legislative body.

(Ord. No. 556; Code 1984, § 6407)

The provisions of this article shall not apply to sheriffs, constables, executors, administrators, receivers, trustees under court or private trusts or other public or court officers, or to any other person acting upon the license, direction or authority of any court, selling goods, wares or merchandise in the course of their official duties.

(Ord. No. 556; Code 1984, § 6408)

(a) Any person making a false statement in the application for a permit under this article, or any person who holds, conducts or carries on or advertises, represents or holds out any sale of goods, wares or merchandise to be a bankrupt, mortgage, insolvent, assignee's, executor's, administrator's, receiver's or trustee's, or removal or closing out sale, or a sale of goods, wares or merchandise damaged by fire, smoke or water, or a sale of goods from the stock of a bankrupt, receiver, trustee, receivership or trusteeship, without first having complied with the provisions of this article, or who otherwise violates any of the provisions of this article, shall be deemed guilty of a misdemeanor, and shall upon conviction thereof be punished as provided in section 1-8.

(b) Nothing contained in this article shall be deemed to apply to any publisher of a newspaper, magazine or other publication who publishes such advertisement in good faith, without knowledge that the provisions of this article have not been complied with.

(Ord. No. 556; Code 1984, § 6409)