La Quinta Municipal Code Ch. 5.60 Liquidation-Type Sales

For the purpose of this chapter only, the following words and terms shall be deemed to mean and be construed as follows:

"Advertise," "advertisement," "advertising," "publish," and "publication," mean any and all means, whether oral, written, lettered or printed, used for conveying to the public notice of the conduct of a sale as defined in this section, or notice of intention to conduct the sale, including, but not limited to, oral or written announcements by proclamation or outcry, newspaper advertisement, magazine advertisement, handbill, written or printed notice, printed display, billboard display, poster, e-mail, twitter, internet and other electronic media, television and radio announcement.

"Inspector" means an inspector or investigator appointed by the city manager, or means any city police officer.

"Permit" means a permit issued pursuant to this chapter.

"Permittee" means a person to whom a permit has been issued pursuant to this chapter.

"Sale" means any sale of, 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 the sale is anticipatory to or to avoid the termination, liquidation, revision, windup, discontinuance, removal, dissolution or abandonment of the business or that portion of the business conducted at any location:

1. Stopping of Business. All sales 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, be interrupted, discontinued or changed; and

2. Names Used for Sales. All sales advertised to be "adjuster's sale," "assignee's sale," "bankrupt sale," "benefit of administrator's sale," "benefit of creditors sale," "benefit of trustee's sale," "building coming down sale," "closing sale," "closing out sale," "creditor's committee sale," "creditors' sale," "damaged goods sale," "end sale," "execution sale," "final days sale," "fire sale," "forced out sale," "forced out of business sale," "insolvent sale," "insurance salvage sale," "last days sale," "lease expires sale," "lease expiring sale," "liquidation sale," "loss of lease sale," "mortgage sale," "outselling sale," "receiver's sale," "removal sale," "recognition sale," "salvage sale," "selling out sale," "smoke sale," "smoke and water sale," "trustee's sale," "quitting business sale," "wholesale closing out sale," "we quit sale," "we give up sale," "fixtures for sale," or advertised by any other expression or characterization closely similar to any of the foregoing and calculated to convey the same meaning; and

3. Business Failure. All sales advertised in a manner calculated to indicate that the goods, wares or merchandise to be sold, or any part thereof, have been involved in any business failure or have been derived from a business which has failed, been closed, discontinued or liquidated; and

4. Vacation of Premises. All sales accompanied by notice or advertising indicating that the premises are available for purchase or lease or are otherwise to be vacated; and

5. Business Emergency or Failure. All sales accompanied by advertising indicating a business emergency or failure affecting the seller or any previous holder of the goods to be disposed of.

(Ord. 526 § 13, 2015; Ord. 10 § 1, 1982)

No person, firm or corporation shall hereafter publish or conduct any sale of the type defined in this chapter without first having obtained a permit from the city manager in the manner provided in this chapter.

(Ord. 526 § 13, 2015; Ord. 10 § 1, 1982)

Each permit issued under the provisions of this chapter shall have printed, written or stamped on the face thereof the following:

"This permit is granted by the city manager of the city of La Quinta and accepted by the permittee upon the condition that the said permittee comply with and abide by all the provisions of Chapter 5.60 of the La Quinta Municipal Code."

(Ord. 526 § 13, 2015; Ord. 10 § 1, 1982)

At the time of the delivery of the permit, the statement must be signed by the permittee in the presence of an employee of the city who shall sign as a witness.

(Ord. 526 § 13, 2015; Ord. 10 § 1, 1982)

Any permit issued under the provisions of this chapter shall authorize the one (1) type of sale named in the application, at the place named therein, for a period of not more than sixty (60) calendar days, and shall permit the sale of goods only which are set out in the application, all of which goods throughout the duration of the sale must be definitely separated from any other goods displayed at or within the store or place of business; and all advertising signs or notices referred to, or calling attention to the sale, must be confined to the display or displays of goods involved in the sale.

(Ord. 526 § 13, 2015; Ord. 10 § 1, 1982)

No permit to conduct a sale as defined in this chapter shall be granted except upon written application to the city manager, filed and verified before a person authorized to administer oaths, by the person who intends to conduct the sale, and each application shall set forth and contain the following information:

A. Location. Description by street location and kind of building, of the location at which the sale is to be held;

B. Occupancy—Tenancy. The nature of the occupancy, whether by ownership, lease or sublease, and if by lease or sublease, the effective date of the termination of the tenancy;

C. Advertising. A copy of all advertisements proposed to be used in connection with the sale, and a statement of the means or methods of advertising to be used in advertising the sale;

D. Reason for Sale. The facts in regard to the insurance, bankruptcy, insolvency, assignment, mortgage, foreclosure, administration, receivership, trusteeship, removal, executorship removal, or other cause advertised to be the reason for the proposed sale;

E. Inventory. An inventory or statement, in such form and in such detail as the city manager may require, setting forth the amount and description of goods, wares or merchandise to be sold at the sale and, when required by the city manager, the date of acquisition of the goods, wares or merchandise and the persons from whom obtained, and the place from which the goods were last taken.

(Ord. 526 § 13, 2015; Ord. 10 § 1, 1982)

The city manager may require that all goods, wares and merchandise listed upon the inventory or statement shall be so described in detail by manufacturer's name and lot number, the individual number of articles so numbered, colors, sizes and otherwise, that the identity of the goods with the goods listed on the inventory can be readily determined.

(Ord. 526 § 13, 2015; Ord. 10 § 1, 1982)

No application for any permit pursuant to the provisions of this chapter shall be accepted by or on behalf of the city manager unless the application is accompanied by a filing fee in such amount as has been prescribed by resolution of the city council to defray the expense of investigation and processing, no part of which fee shall be refunded whether the application is granted or denied.

(Ord. 526 § 13, 2015; Ord. 10 § 1, 1982)

Upon the filing of the application with the city manager, the city manager may make or cause to be made an examination, audit, or investigation of the applicant and his or her affairs, in relation to the proposed sale.

(Ord. 526 § 13, 2015; Ord. 10 § 1, 1982)

If the city manager finds that the statements in the application are true, that the inventory is complete, that the advertising set forth is not false, fraudulent, deceptive or misleading in any respect, and that the methods to be used by the applicant in conducting the sale are not such as, in the opinion of the city manager, will work a fraud upon the purchasers, the city manager shall issue to the applicant a permit to conduct the sale in accordance with the provisions of this chapter; otherwise the city manager shall deny the application and refuse the permit.

(Ord. 526 § 13, 2015; Ord. 10 § 1, 1982)

The city manager may refuse a permit because of the insufficiency of the information set forth in the application.

(Ord. 526 § 13, 2015; Ord. 10 § 1, 1982)

In case of refusal, the city manager shall grant the applicant permission to file an amended application.

(Ord. 526 § 13, 2015; Ord. 10 § 1, 1982)

No application shall be denied unless an opportunity for hearing has been given the applicant before the city manager pursuant to Sections 2.08.180 through 2.08.230 of this code.

(Ord. 526 § 13, 2015; Ord. 10 § 1, 1982)

The city manager may, upon verified application therefor, renew the permit for a period of not to exceed thirty (30) days, upon the payment of a renewal fee in such amount as has been prescribed by resolution of the city council, to defray the expense of investigation and processing.

(Ord. 526 § 13, 2015; Ord. 10 § 1, 1982)

The verified application for renewal shall set forth a complete list of goods listed in the original application and remaining unsold, and shall not contain any goods, wares or merchandise not named in the original application.

(Ord. 526 § 13, 2015; Ord. 10 § 1, 1982)

Upon receipt of the application for renewal, the city manager shall cause an investigation to be made within five (5) business days from the date of filing with the city manager the application for renewal, and if satisfied of the truth of the statements therein contained, the city manager shall grant the renewal, which shall be endorsed and signed as provided for the original permit.

(Ord. 526 § 13, 2015; Ord. 10 § 1, 1982)

The city manager may renew any original permit in the manner provided in this chapter, not to exceed two (2) times, upon payment of a fee for each such renewal, in such amount as has been prescribed by resolution of the city council, to defray the expense of investigation and processing.

(Ord. 526 § 13, 2015; Ord. 10 § 1, 1982)

The city manager shall not issue permits or renewals which will allow the conduct of any sale or sales of any kind or kinds named in Section 5.60.010 at any one (1) location for more than one hundred twenty (120) calendar days in any one (1) twelve (12)-month period.

(Ord. 526 § 13, 2015; Ord. 10 § 1, 1982)

The city manager shall have the power to revoke at any time any permit granted in accordance with this chapter whenever any such sale or special sale is being conducted in violation of any of the provisions of this chapter or in such manner as to deceive or defraud the public, or if:

A. Further Grounds—Misstatement in Application. The holder of any such permit has made any material misstatement in the application for the permit;

B. Fraud in Conduct of Sale. He or she has been guilty of any fraudulent practice, or practices, in the conduct of the sale authorized by the permit;

C. Omissions in Inventory. He or she has failed to include in the inventory required by the provisions of this chapter the goods, wares or merchandise required to be contained in the inventory;

D. Addition of Goods. He or she has added, caused to be added, or permitted to be added any goods, wares or merchandise not described in the original inventory; or

E. Improper Advertising. He or she has violated any of the provisions of this chapter or of the laws pertaining to advertising.

(Ord. 526 § 13, 2015; Ord. 10 § 1, 1982)

No permit shall be revoked for any cause enumerated in Section 5.60.190 until a written complaint has first been filed with the city manager, setting forth in ordinary and concise language the charge made against the permittee.

(Ord. 526 § 13, 2015; Ord. 10 § 1, 1982)

The complaint shall be verified by the oath of the person making the charge, the verification to be made in the form prescribed by the Code of Civil Procedure of the state for verified pleadings in civil actions.

(Ord. 526 § 13, 2015; Ord. 10 § 1, 1982)

Service of the complaint and notice of hearing shall be in the manner provided in Section 1.01.300 of this code.

(Ord. 526 § 13, 2015; Ord. 10 § 1, 1982)

Any permit issued pursuant to the provisions of this chapter shall be valid only for the advertising, representation and sale of the particular goods, wares or merchandise described in the original application therefor, and at the particular time, and particular place stated therein, and by the particular applicant; and any renewal, replenishment or substitution of such goods, wares or merchandise, or change of the time or place for the sale, or change of person conducting the sale, is unlawful and shall render the permit void.

(Ord. 526 § 13, 2015; Ord. 10 § 1, 1982)

No person in contemplation of conducting any such sale or special sale, or during the continuance of such a sale, shall order any goods, wares or merchandise for the purpose of selling them at the sale.

(Ord. 526 § 13, 2015; Ord. 10 § 1, 1982)

Any unusual purchase, or additions to the stock of such goods, wares or merchandise, within sixty (60) days before the filing of the application for a permit to conduct such a sale shall be presumptive evidence that the purchase or additions were made in contemplation of the sale for the purpose of selling them at the sale.

(Ord. 526 § 13, 2015; Ord. 10 § 1, 1982)

Each sale of goods, wares or merchandise as were not inventoried and described in the original application shall constitute a separate offense under this chapter.

(Ord. 526 § 13, 2015; Ord. 10 § 1, 1982)

The city manager may provide such rules and regulations for the conduct and advertisement of the sale or special sale as, in his or her opinion, will serve to prevent deception and to protect the public.

(Ord. 526 § 13, 2015; Ord. 10 § 1, 1982)

Any removal of any goods, wares or merchandise inventoried and described in the original application form from the place of sale mentioned in the application shall cause the goods to lose their identity as the stock of any of the sales defined in this chapter; and no permit thereafter will be issued for the conducting of a sale of any such goods, wares or merchandise in such manner as to identify them with the store, store name, store owner or location referred to in the original application.

(Ord. 526 § 13, 2015; Ord. 10 § 1, 1982)

Upon, coincident and throughout the duration of any sale, as defined in this chapter, the permit issued by the city manager shall be prominently displayed near the entrance to the premises.

(Ord. 526 § 13, 2015; Ord. 10 § 1, 1982)

A duplicate original of the application and stock list pursuant to which the permit was issued shall at all times be available to the city manager, or to his or her inspector and investigators, to examine all merchandise in the premises for comparison with the stock list.

(Ord. 526 § 13, 2015; Ord. 10 § 1, 1982)

Suitable books and records shall be kept by the permittee and shall at all times be available to the inspector and investigators.

(Ord. 526 § 13, 2015; Ord. 10 § 1, 1982)

At the close of business each day the permittee's copy of the stock list attached to the application shall be revised and those items disposed of during the day shall be so marked thereon.

(Ord. 526 § 13, 2015; Ord. 10 § 1, 1982)

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

A. Judicial Sales. Persons acting pursuant to an order or process of a court of competent jurisdiction;

B. Official Sales. Persons acting in accordance with their powers and duties as public officers such as sheriffs and marshals;

C. Auctions. Duly licensed auctioneers, selling at auction;

D. Publisher of Advertising. Any publisher of a newspaper, magazine or other publication, who publishes any such advertisement in good faith, without knowledge of its false, deceptive or misleading character, or without knowledge that the provisions of this chapter have not been complied with;

E. Season, Clearance Sales. End of season sales and clearance sales not included within Section 5.60.010.

(Ord. 526 § 13, 2015; Ord. 10 § 1, 1982)

Any person aggrieved by any decision of the city manager with respect to denial or issuance of any permit, conditions attached thereto, or any other administrative action taken pursuant to the terms of this chapter, may appeal to the city council pursuant to Sections 2.04.100 through 2.04.130 of this code.

(Ord. 526 § 13, 2015; Ord. 10 § 1, 1982)