Los Altos Municipal Code Ch. 4.08 Going Out of Business Sales

For the purposes of this chapter the following terms, phrases, words, and their derivations shall have the meaning given herein:

A.

"Director" is the finance director of the city.

B.

"Fire and other altered goods sale" is a sale held out in such a manner as to reasonably cause the public to believe that upon the disposal of the stock of goods on hand the business will cease and be discontinued, including, but not limited to, the following sales: Adjuster's; adjustment; alteration; assignee's; bankrupt; benefit of administrator's; benefit of creditors'; benefit of trustee's; building coming down; closing; creditor's committee; creditor's end; executor's; final days; forced out; forced out of business; insolvents' last days; lease expires; liquidation; loss of lease; mortgage sale; receiver's; trustee's; and quitting business.

C.

"Goods" is meant to include any goods, wares, merchandise, or other property capable of being the object of a sale regulated hereunder.

D.

"Removal of business sale" is a sale held out in such a manner as to reasonably cause the public to believe that the person conducting the sale will cease and discontinue business at the place of sale upon disposal of the stock of goods on hand and will then move to and resume business at a new location in the city or will then continue business from other existing locations in the city.

(Prior code § 6-2.01)

A license issued by the director shall be obtained by any person before selling or offering to sell any goods at a sale to be advertised or held out by any means to be one of the following kinds:

A.

Going-out-of-business sale;

B.

Removal of business sale; and

C.

Fire and other altered stock sale.

(Prior code § 6-2.02)

A.

Interval between sales. Any person who has held a sale, as regulated by this chapter, at the location stated in the application, within one year last past from the date of such application shall not be granted a license.

B.

Restricted location. Where a person applying for a license pursuant to this chapter, operates more than one place of business the license issued shall apply only to the one store, or branch specified in the application and no other store or branch shall advertise or represent that it is cooperating with it, or in any way participating in the licensed sale, nor shall the store or branch conducting the licensed sale advertise or represent that any other store or branch is cooperating with it or participating in any way in the licensed sale.

C.

Persons exempted. The provisions of this article shall not apply to or affect the following persons:

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

Persons acting in accordance with their powers and duties as public officials;

Duly licensed auctioneers, selling at auction; or

Any publisher of a newspaper, magazine or other publication, who 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 complied with.

(Prior code § 6-2.03)

A person desiring to conduct a sale regulated by this chapter shall make a written application to the director setting forth and containing the following information:

A.

The true name and address of the owner of the goods to be the object of the sale;

B.

The true name and address of the person from whom he purchased the goods to be sold and the price therefor, and if not purchased, the manner of such acquisition;

C.

The address of the place where such sale is to be held;

D.

The nature of the occupancy, whether by lease or sublease and the effective date of termination of such occupancy;

E.

The dates of the period of time in which the sale is to be conducted;

F.

A full and complete statement of the facts in regard to the sale, including the reason for the urgent and expeditious disposal of goods thereby and the manner in which the sale will be conducted;

G.

The means to be employed in advertising such sale together with the proposed content of any advertisement;

H.

An itemized stock list of inventory of the goods, wares and merchandise to be offered for sale, together with the cost at which the goods, wares and merchandise were obtained by the owner thereof, or person conducting such sale. All goods, wares and merchandise listed upon the inventory herein required 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 such goods with the goods listed on such inventory can be readily determined.

Bona fide orders. All goods included in such inventory shall have been purchased by the applicant for resale on bona fide orders without cancellation privileges and shall not comprise goods purchased on consignment;

Goods purchased for sale hereunder. Such inventory shall not include goods ordered in contemplation of conducting a sale regulated by this chapter. Any unusual purchase, or additions to the stock of goods of the business hereby affected within ninety (90) days before the filing of an application pursuant to this chapter shall be deemed to be of such character.

I.

The place where such stock was purchased or acquired, and if not purchased, the manner of such acquisition; and in the case of stock placed upon the premises within ninety (90) days prior to such sale, the time of acquisition of such stock;

J.

The name of the owner of the goods, wares and merchandise to be offered for sale; and if the sale is to be conducted by a person not the owner of the goods, then the name of the person conducting such sale.

(Prior code § 6-2.04)

Any applicant for a license hereunder shall submit to the director with his application a license fee of one hundred dollars ($100.00), together with a corporate surety bond, payable to the city in the penal sum of one thousand dollars ($1,000.00), conditioned upon compliance with the provisions of this chapter. Any applicant for a renewal license pursuant to this chapter shall submit to the director with his renewal application, a renewal license fee of fifty dollars ($50.00).

(Prior code § 6-2.05)

A license shall be issued hereunder on the following terms:

A.

Licensing period. The license shall authorize the sale described in the application for a period of not more than sixty (60) consecutive days, Sundays and legal holidays excluded, following the issuance thereof.

Renewal procedure. The director shall renew a license for one period of time only, such period to be in addition to the sixty (60) days permitted in the original license and not to exceed thirty (30) consecutive days, Sundays and holidays excluded, when he finds:.

a.

That facts exist justifying the license renewal;

b.

That the licensee has filed an application for renewal;

c.

That the licensee has submitted with the application for renewal a revised inventory showing the items listed on the original inventory remaining unsold and not listing any goods not included in the original application and inventory.

i.

For the purpose of this subsection, any application for a license under the provisions of this chapter covering any goods previously inventoried as required by Section 4.08.040 shall be deemed to be an application for renewal, whether presented by the original applicant, or by any other person.

B.

Nature of sale. The license shall authorize only the one type of sale described in the application at the location named therein;

C.

Salable goods. The license shall authorize only the sale of goods described in the inventory attached to the application;

D.

Non-transferability. Any license by this chapter provided for shall not be assignable or transferable.

(Prior code § 6-2.06)

All persons licensed pursuant to this chapter shall:

A.

Adhere to inventory. Make no additions whatsoever, during the period of the licensed sale, to the stock of goods set forth in the inventory attached to the application for license;

B.

Advertise properly. Refrain from employing any untrue, deceptive or misleading advertising;

C.

Adhere to advertising. Conduct the licensed sale in strict conformity with any advertising or holding out incident thereto;

D.

Duplicate inventory. Keep available at the place of sale a duplicate copy of the inventory submitted with the application and present such duplicate to inspection officials upon requests;

E.

Segregate non-inventoried goods. Keep any other goods separate and apart from the goods listed in the filed inventory as being objects of sale and shall make such distinction clear to the public by placing tags on all inventoried goods in and about the place of sale apprising the public of the status of all such goods;

F.

Revised daily inventory. At the close of business each day the stock inventory shall be revised and items on such list disposed of during such day shall be noted thereon. Suitable books and records as prescribed by the director shall be kept by the permittee and shall be available at all times to the inspectors of the director.

(Prior code § 6-2.07)

No goods, wares or merchandise shall be permitted to be offered for sale at the place of business where such sale is to be conducted other than those items listed in the inventory filed with the application for the permit.

(Prior code § 6-2.08)

No sale as defined in this chapter which is in progress at the time this chapter becomes effective shall be continued more than thirty (30) days thereafter without complying with all of the requirements of this chapter.

(Prior code § 6-2.09)

In addition to other remedies, the city attorney, in the name of and on behalf of the city, may institute appropriate action or proceedings in any court of competent jurisdiction to restrain or abate violations of the provisions of this chapter.

(Prior code § 6-2.10)

The director shall at all times have the power to make an examination or investigation of the business and the books, records, and accounts, and other papers pertaining thereto, of any person theretofore permitted or authorized to conduct a sale regulated by the provisions of this chapter.

(Prior code § 6-2.11)

The director shall have the power to revoke at any time any permit granted in accordance with the provisions of 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 a manner as to deceive or defraud the public, or if the holder of any such permit:

A.

Has made any material misstatement in the application for such permit;

B.

Has been guilty of any fraudulent practice in the conduct of the sale authorized by such permit;

C.

Has failed to include in the inventory required by the provisions of this chapter the goods, wares, or merchandise required to be contained in such inventory;

D.

Has added, caused to be added, or permitted to be added any goods, wares, or merchandise not described in the original inventory; and

E.

Has violated any of the provisions of this chapter or the laws pertaining to advertising.

(Prior code § 6-2.12)

When an application for a permit to conduct a sale anticipatory to the actual and complete liquidation and termination of an entire business at one particular location is filed by a person who has conducted the same business at the location in the city for a period of at least two years immediately preceding the date of the application, and if the finance director is satisfied that otherwise all the conditions and requirements of this chapter are or will be complied with in accordance with the provisions of this section, the finance director may accept such application for filing when accompanied by a filing fee in the amount of ten dollars ($10.00), no part of which shall be refundable. If such permit is granted, it shall authorize the one type of sale specified at the place named in the application for a period of not more than sixty (60) calendar days and shall permit the sale of goods only which are set out in such application; provided, however, the

finance director may, upon a verified application therefor, renew such permit for a period of not to exceed thirty (30) calendar days upon the payment of a renewal fee in the amount of five dollars ($5.00). Such verified petition for renewal shall set forth a complete list of the goods listed in the original application and remaining unsold and shall not contain any goods, wares, or merchandise not named in such original application. Upon receipt of such application for renewal, the finance director shall cause an investigation to be made at once, and, if satisfied of the truth of the statements therein contained, the finance director may grant such renewal, which shall be endorsed and signed as provided for the original permit. The finance director may so renew any such original permit not to exceed one time upon the payment of the sum of five dollars ($5.00) for such renewal; provided, however, the finance director may not issue permits or renewals which will allow the conduct of any sale of any kind named in this chapter at any one location for more than ninety (90) calendar days in any one twelve (12) month period.

(Prior code § 6-2.13)