La Puente Municipal Code Ch. 5.30 Going-Out-of-Business Sales and Similar Sales

Sections:

• 5.30.010 Permit required.

• 5.30.020 Definitions.

• 5.30.030 Exemptions.

• 5.30.040 Additional information required for application.

• 5.30.050 Additional criteria for issuance or denial of permit.

• 5.30.060 Term of permit.

• 5.30.070 Operating requirements.

• 5.30.080 Additional grounds for modification, revocation or suspension.

* Prior ordinance history: Ord. 508.

No person shall engage in conduct or carry on a going-out-of-business sale without a permit issued pursuant to Chapter 5.08 of this title. If any of the provisions of Chapter 5.08 of this title conflict with the provisions of this Chapter, the provisions of this chapter shall prevail as to all matters and questions arising out of the subject matter of this chapter.

(Ord. 788 § 9 (part), 1999)

For purposes of this chapter, unless it is plainly evident from the context that a different meaning is intended, the following definitions shall apply:

“Advertise” means all methods, whether oral, written, lettered, or printed, used to convey to the public notice of the conduct of a sale, or notice of intention to conduct such sale, which shall include, but not be limited to, oral or written announcements by internet, proclamation, newspaper advertisements, magazine advertisements, handbills, written or printed displays, billboard displays, posters, or radio and television announcements.

“Director” means the community development director or his or her designee.

“Going-out-of-business sale” means any of the following:

(1) Any sale, or any offer to sell, to the public, or any group thereof, goods, wares, or merchandise on order, in transit, or in stock in connection with a declared purpose as set forth by advertising that such sale is anticipatory of or to avoid the termination, liquidation, revision, wind-up, discontinuance, removal, dissolution, or abandonment of the business or that portion of the business conducted at any location;

(2) Any sale 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, interrupted, discontinued, or changed;

(3) Any sale advertised to be an “adjuster’s sale,” an “administrator’s sale,” an “assignee’s sale,” a “bankrupt sale,” a “benefit administrator’s sale,” a “benefit of creditors sale,” a “benefit of trustees’ sale,” a “building coming down sale,” a “closing out sale,” a “creditor’s sale,” a “creditor’s committee sale,” a “damaged goods sale,” an “end sale,” an “executors’ sale,” a “final days sale,” a “fire sale,” a “fixtures for sale,” a “forced out sale,” a “forced out of business sale,” an “insolvent sale,” an “insurance salvage sale,” a “loss of lease sale,” a “mortgage sale,” an “outselling sale,” a “quitting business sale,” a “receiver’s sale,” a “reorganization sale,” a “salvage sale,” a “selling out sale,” a “smoke sale,” a “smoke and water sale,” a “trustee’s sale,” a “wholesale closing out sale,” a “we quit sale,” a “we give up sale,” or any other sale advertised by any similar expression or characterization which is calculated to convey the same meaning;

(4) Any sale advertised in a manner calculated to indicate that the goods, wares, or merchandise to be sold, or any part thereof, has been involved in any business failure or has been derived from a business which has failed, discontinued, or liquidated, or has been closed;

(5) Any sale accompanied by notices or advertising indicating that the premises are available for purchase or lease or are otherwise to be vacated; or

(6) Any sale accompanied by advertising, indicating a business emergency or failure affecting the seller or any previous holder of the goods to be sold.

“Permittee” means any person to whom a permit has been issued to hold a going-out-of- business sale.

“Person” means any individual, firm, business, partnership, corporation, cooperative, company, association, joint stock association, church, religious sect, religious denomination, society, organization, or league and shall include any trustee, receiver, assignee, agent, solicitor, or other similar representative thereof.

(Ord. 788 § 9 (part), 1999)

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

(a) Persons acting pursuant to an order or process of a court of competent jurisdiction;

(b) Persons acting in accordance with their powers and duties as public officials, such as sheriffs and marshals;

(c) Duly licensed auctioneers, selling at auction; and

(d) Any publisher or publication, newspaper, magazine, or other publication which publishes in good faith any advertisement without knowledge of its false, deceptive, or misleading character, or without knowledge that the provisions of this chapter have not been satisfied.

(Ord. 788 § 9 (part), 1999)

In addition to the information required by Section 5.08.030(a) of this title, each applicant to conduct a going-out-of-business sale shall furnish the following information:

(a) The name and address of the owner of the goods to be sold at the going-out-of-business sale;

(b) A description of the place where the going-out-of-business sale is to be held and the nature of the applicant’s occupancy, whether by lease, sublease, or ownership, and the effective date of the termination of such occupancy;

(c) The dates between which the going-out-of-business sale is to be conducted;

(d) A full and complete statement of the facts regarding the going-out-of-business sale, including the reason for the urgent and expeditious disposal of the goods and the manner in which the going-out-of-business sale will be conducted;

(e) The means to be employed in advertising the going-out- of-business sale and the proposed content of any such advertisement;

(f) An itemized inventory of the stock of goods, wares, and merchandise to be offered for sale, together with the name and address of the suppliers thereof, and the cost thereof. All goods, wares, and merchandise listed upon the inventory shall be described in detail by color, size, manufacturer’s name and lot number, and the individual number of articles in each lot so that the identity of such goods can be readily determined. Each item listed on the inventory shall be tagged with a label or tag securely attached thereto on which there is written or printed a number corresponding with that item on the inventory;

(g) The place where such stock was purchased or acquired and a statement as to whether or not the merchandise to be sold was purchased at a former going-out-of-business sale; and

(h) If stock is brought upon the premises within thirty days prior to such application, the amount and time of acquisition of such stock.

(Ord. 788 § 9 (part), 1999)

The director shall grant the permit only if he or she finds that there is no reason to deny the permit under Section 5.08.060(b) of this title and that all of the following requirements have been met:

(a) The inventory list is complete;

(b) The merchandise is properly labeled or tagged;

(c) The advertising as proposed is not false, fraudulent, deceptive, or misleading in any respect;

(d) The methods to be used in conducting the going-out-of-business sale will not work a fraud upon the purchasers; and

(e) The applicant has been in business at the same location for a period of time in excess of one hundred eighty days prior to filing the application for the going-out-of-business sale.

(Ord. 788 § 9 (part), 1999)

The term of a going-out-of-business sale permit shall not exceed sixty days; provided further, that the permit may be extended for one additional period not exceeding thirty days subject to the following requirements:

(a) Filing a renewal application on the form designated by the director not less than five business days before expiration of the original permit.

(b) Inclusion of a complete list of all unsold stock which was listed on the original application. A renewal permit shall not authorize sale of any stock which was not listed in the original permit application.

(c) The permittee has complied with the provisions of this chapter and terms of the permit since its issuance.

(d) Payment of the renewal permit fee as required by Section 5.08.080 of this title.

(Ord. 788 § 9 (part), 1999)

(a) Records, Inventory and Inspection. The permittee shall:

(1) Grant access to authorized representatives of the city to make an examination or investigation of the business, books, records, accounts, or other papers pertaining to the going- out-of-business sale regulated by the provisions of this chapter;

(2) Keep available at the place of the going-out-of- business sale a duplicate copy of the inventory submitted with the application and present such duplicate copy to authorized city officials upon request;

(3) Keep all other goods separate and apart from the goods listed in the going-out-of- business sale inventory filed with city; and all inventoried goods for the going-out-of-business sale shall be tagged to apprise the public of the status of all such goods; and

(4) At the close of business each day, a revised inventory list of items disposed of during the day shall be made and shall be available at all times to investigating or inspecting city officials.

(b) Location.

(1) A going-out-of-business sale shall not be conducted at the same location by any person who, as owner or successor in interest, except by operation of law, has in any way, either directly or indirectly, conducted a similar sale in the city within a period of one year immediately preceding the date of the proposed going-out-of-business sale.

(2) The going-out-of-business sale permit authorizes only the type of sale described in the application at the location named in such application and authorizes only the sale of goods described in the inventory attached to the application. No additions of stock shall be permitted.

(c) Incidental Nature. A going-out-of-business sale shall be incidental to the termination of a legitimate business and is not permissible for a business which was established for the purpose of conducting such going-out-of-business sale.

(d) Nature of Goods Sold.

(1) All goods, wares, and merchandise to be sold in the going-out-of-business sale shall have been purchased by the applicant for resale on bona fide orders without cancellation privileges and shall not comprise goods purchased on consignment.

(2) Goods, wares, and merchandise to be sold in the going-out-of-business sale shall not include goods ordered in contemplation of conducting a going-out-of-business sale. Any unusual purchase or addition to the stock of goods of the business within the period of thirty days before the filing of an application for a going-out-of-business sale permit and up to the time of the going-out-of-business sale shall be deemed to be goods ordered in contemplation of conducting a going-out-of-business sale.

(e) Other Stores or Businesses. Where a permittee operates more than one place of business, the permit issued shall apply only to the one store or branch specified in the application, and no store or branch shall advertise or represent that it is cooperating with, or in any way participating in, such going-out-of-business sale; nor shall the store or branch conducting the going-out-of-business sale, advertise or represent that any other store or branch is cooperating with, or participating in any way, in such going-out-of-business sale.

(f) Hours. The going-out-of-business sale shall not take place between nine-thirty p.m. and eight a.m. of the following day.

(Ord. 788 § 9 (part), 1999)

In addition to the grounds set forth in Section 5.08.110 of this title, any permit issued pursuant this chapter may be modified, suspended or revoked if the permittee violates any of the provisions of this chapter.

(Ord. 788 § 9 (part), 1999)