La Mesa Municipal Code Ch. 6.14 Closing Out Sales

Whenever used in this chapter, "closing out sale" means any offer to sell to the public, or sale to the public, of goods, wares or merchandise upon the implied or expressed representation that such sale is in anticipation of the ceasing, discontinuance, or termination of a business, or that such sale is other than in the ordinary course of business. Without limiting the generality of the above, a closing out sale includes any sale advertised or represented, either specifically or in substance, to be: adjustor's sale, administrator's sale, bankrupt sale, creditor's sale, close out sale, executor's sale, end of business sale, final sale, forced out of business sale, insolvent sale, inventory liquidation sale, inventory close out sale, inventory disposal, last days sale, lease expires sale, liquidation sale, lost lease sale, must vacate sale, quitting business sale, receivers sale, selling out sale, stock disposal, stock sell out, stock liquidation sale, termination sale, windup sale, or any other term tending to convey to the public that upon the disposal of the stock of goods on hand the business will cease and be discontinued.

(Ord. 1433 § 1 (part), 1964)

No person shall advertise or conduct a closing out sale or sell or offer for sale any goods, wares or merchandise at a sale represented to be a closing out sale without first obtaining a license to conduct such closing out sale. If said sale is to be conducted at a public auction, then in addition to the provisions of this chapter, the provisions of other applicable sections of the La Mesa Municipal Code shall apply.

(Ord. 1433 § 1 (part); July 14, 1964)

* For additional requirements for closing out sales conducted as public auctions — See Section 6.12.190 through Section 6.12.210 of this code.

Application for license required by this chapter shall be filed with the finance director by the person conducting the closing out sale at least fifteen days prior to the commencement thereof. Said application for license shall be in writing, signed and verified under oath, by the person who intends to conduct such sale, and each application shall set forth and contain the following information:

(a) Description and street location of the place at which such sale is to be held;

(b) The nature of the occupancy, whether by ownership or lease or sublease and if by lease or sublease, the effective date of termination of such tenancy;

(c) The means to be employed in publishing such sale, together with the proposed contents of such advertising;

(d) The facts in regard to the insolvency, bankruptcy, assignment, receivership or other cause for the dissolution of the business;

(e) A general description of the goods, wares, and merchandise to be sold at such sale. No consignment goods may be included in the sale unless said consigned goods have been in the applicant's possession for at least thirty days prior to the filing of the application as required by this chapter;

(f) In the event that said sale will be conducted at public auction, the name of the auctioneer who shall conduct said auction sale.

(Ord. 1433 § 1 (part); July 14, 1964)

The director of finance shall notify the chief of police of the filing of the application and the chief of police may make, or cause to be made, an examination or investigation of the statements put forth in such application, or of the applicant and his affairs, in relation to the proposed closing out sale. If the chief of police finds that the statements in the application are true, that the advertising to be used is not false, deceptive or misleading in any respect, and that the proposed methods of conducting the sale are not such as, in the opinion of the chief of police, would work a fraud or misrepresentation on the purchaser, then the chief of police shall approve said application and the director of finance shall issue a license to conduct such a sale in accordance with the provisions of this chapter; otherwise the chief of police shall disapprove the application. No application for such license shall be accepted by the director of finance unless accompanied by a filing fee as established by city council resolution, no part of which shall be refundable. Provided that whenever the foods, wares or merchandise is to be sold at public auction and is a stock of jewelry, then in that event the application required herein shall be accompanied by a sum as established by city council resolution. At the time of delivery of such license, the licensee shall sign the following agreement, to be witnessed by the Director of Finance or his deputy: The above license is accepted by the undersigned upon the condition that licensee agrees to comply with, and abide by, all of the provisions of the La Mesa Municipal Code pertaining to closing out sales.

(Ord. 2164; September 7, 1978: Ord. 2459 § 2; August 11, 1987)

Any license issued under the provisions of this chapter shall authorize the conduct and advertising of the one type of sale named therein, and at location specified therein, for a period of not more than one hundred eighty calendar days. Provided, however, that the finance director may, upon a verified application therefor, renew said license for a period of not to exceed thirty days, upon the payment of a renewal fee of twenty-five dollars. If a sale is to be conducted at two or more locations separate licenses must be obtained for each location at which said sale takes place. The conditions prescribed as precedent to the issuance of a license for one location shall be the same conditions to be satisfied for any and all licenses issued for more than one location. If sale of merchandise is to be conducted at the warehouse location, a separate license shall be required. No person who has not been the owner of record of a business for which such license is sought for a period of at least six months, shall be granted a license.

(Ord. 1433 § 1 (part); July 14, 1964)

Any license issued under the provisions of this chapter shall be valid only for the advertising and conducting of sale of the goods, wares and merchandise described in the original application therefor, and during the particular time, and at the particular location stated therein and by the particular application therefor, and any renewal, replenishment or substitution of such goods, wares or merchandise or change of time or place of such sale, or change of person conducting such sale shall be unlawful and shall render such license void. Each and every sale of goods, wares or merchandise as was not included in the original application shall constitute a separate offense under this chapter.

(Ord. 1433 § 1 (part); July 14, 1964)

Suitable records of daily sales shall be kept by licensee and shall be made available on request of the chief of police or appointed investigators. The chief of police or appointed investigators shall at all times have access to such records and shall be permitted to examine all merchandise on the premises for comparison with such records.

(Ord. 1433 § 1 (part); July 14, 1964)

The provisions of this chapter shall not apply in the case of:

(a) Sales conducted by order or process of a court of competent jurisdiction;

(b) Sales conducted by public officers such as marshals and sheriffs in accordance with their powers and duties;

(c) Sales made under an assignment for the benefit of creditors generally; provided that facts of such termination and liquidation be clearly set forth in the public announcement of such sale.

(Ord. 1433 § 1 (part); July 14, 1964)

It shall be unlawful for any person to violate any provision of this chapter. A violation of any of the provisions or failing to comply with any mandatory requirements of this chapter shall constitute an infraction and shall be subject to the provisions of the general penalty clause as set out in Section 1.01.080 of the code of the city of La Mesa.

(Ord. 1433 § 1 (part); July 14, 1964: Ord. 2638 § 2; November 23, 1993)