Long Beach Municipal Code Ch. 5.44 Going-Out-of-Business Sales

For the purposes of this Chapter, the following words and phrases shall have the meanings set forth as follows:

A. "Going-out-of-business sale" means the advertising or otherwise using any word or phrase which conveys to the public the idea that a sale is for the purpose of retiring from or closing a business.

(Ord. C-6260 § 1 (part), 1986)

No person shall represent or hold out that any sale of goods is an insurance, bankruptcy, mortgage, insolvency, assignee's, executor's, administrator's, receiver's, trustee's, creditor's, forced, liquidation, removal or closing-out sale, or a sale of goods damaged by fire, smoke, water, or otherwise, or use any other word or phrase which would reasonably convey to the public the belief that said person was retiring from or closing his/her business in the City, unless he/she had first registered with the Director of Financial Management to do so.

(Ord. C-7423 § 8, 1996: Ord. C-6260 § 1 (part), 1986)

This Chapter shall not apply to public or court officers or to any person acting under the direction of State or Federal courts in the course of their official duties.

(Ord. C-6260 § 1 (part), 1986)

A. A going-out-of-business sale as defined in Section 5.44.010 shall be concluded within three (3) months subsequent to registration unless a supplemental permit has been approved and issued by the Director of Financial Management.

B. Any person who has registered to manage, conduct, or carry on a sale, as required by Section 5.44.020, must make written application to the Director of Financial Management when it appears that all of the goods in the original inventory will not be sold during the three (3) months provided. Such supplemental permit may be issued at the reasonable discretion of the Director of Financial Management upon a showing by the applicant of compliance with the provisions of this Chapter and upon the payment of a permit fee established by resolution of the City Council adopted pursuant to Section 5.04.040.

(Ord. C-7423 § 9, 1996: Ord. C-6260 § 1 (part), 1986)

A. The application shall be signed and sworn to by the applicant and shall state all the facts in regard to the sale, the need to extend the sale and the actual length of time required to conclude the sale, which period shall not exceed three (3) months. The applicant shall also furnish a sworn statement in the application that the merchandise which he/she proposes to sell is a bona fide part of his/her stock in trade and that the same has not been secured, purchased, or brought into the applicant's place of business for or in anticipation of the sale.

B. The Director of Financial Management may additionally require that the application be accompanied by an inventory of remaining merchandise, which inventory shall show the actual purchase price, the names of persons from whom the goods were obtained, the date of purchase, the date of delivery of the goods, and all details necessary to fully identify the goods to be sold.

C. The applicant shall also state whether or not the goods to be sold were purchased at a former sale conducted in compliance with Section 5.44.020. No permit shall be issued to any person if it appears that the stock of goods was purchased at a former sale, as set forth in this Section, less than six (6) months prior to the date of the application.

D. When the applicant has complied with the requirements of this Chapter, the Director of Financial Management may, in his/her sound discretion, issue the permit and shall endorse thereon the date the permit will expire. Once issued, a supplemental permit shall continue in effect only so long as the permit fee is paid and the permittee complies with the provisions of this Chapter and all other provisions of law.

E. No person shall make a false statement in such application.

(Ord. C-7423 § 30, 1996)

A. A permit issued under the provisions of this Chapter shall be valid only for the inventoried goods.

B. A permit issued under the provisions of this Chapter shall not be transferable.

(Ord. C-6260 § 1 (part), 1986)

No person having a permit under this Chapter shall add any goods to the inventoried stock and no goods shall be sold except that included in the original inventory.

(Ord. C-6260 § 1 (part), 1986)

No person, whether as an owner, relative of an owner, representative or manager thereof, shall directly or indirectly engage in a similar business in the City at any time within one (1) year from the date of termination of a going out of business sale as specified in Section 5.44.020.

(Ord. C-6260 § 1 (part), 1986)