Merced Municipal Code Ch. 5.24 Liquidation Sales

For the purpose of this chapter, the following words shall have the meanings respectively ascribed to them in this section:

A. "Liquidation sale" means the sale, or an offer to sell, to the public, goods, wares and merchandise of any and all kinds and descriptions, in connection with a declared purpose as set forth by advertising on the part of the seller that such sale is anticipatory to the determination, closing, liquidation, wind-up, discontinuance, conclusion or abandonment of the business in connection with such sale, including, but not limited to, sales advertised to be "retirement sale," "forced out of business sale," "removal sale," "lass of lease sale," "bankrupt sale," "fire sale," "sale of bankrupt stock," "liquidation sale" and any and all sales advertised in such manner as to reasonably convey to the public that upon the disposal of the stock of goods on hand, the business will cease and be discontinued. Without limiting the generality of the term "liquidation sale" such sale shall include a sale in which, instead of the bidders making increasingly higher bids for an article or articles of merchandise, the seller announces a price at which he will sell one or more articles of merchandise and then, if no sale occurs, increasingly adds additional articles of merchandise to those originally offered, with or without varying the previously announced price, until a buyer is finally induced to buy the accumulated articles at the price fixed.

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

C. "Publish, publishing, advertise, advertisement and advertising" means any and all means of conveying to the public notice of sale or notice of intention to conduct a sale, either by word of mouth, by newspaper advertising, by radio advertising, by magazine advertising, by handbills, by written notice, by printed notice and any and all means including oral, written or printed.

(Ord. 1582 § 2 (part), 1985).

It is unlawful for any person to publish or conduct a liquidation sale without first obtaining a permit therefor from the finance officer in the manner provided in this chapter.

(Ord. 1582 § 2 (part), 1985).

It is unlawful for any person to apply for a permit or for a liquidation sale, or advertise a liquidation sale, or conduct a liquidation sale with the intent not to cease and discontinue the business upon disposal of the stock of goods on hand.

(Ord. 1582 § 2 (part), 1985).

Application for a permit to conduct a sale as required by Section 5.24.020 shall be made to the finance officer at least thirty (30) days prior to the date of the sale, upon forms to be supplied to the applicant for that purpose. The application shall contain a statement subscribed to under oath or affirmation by the person, or, if the applicant is a firm or corporation, a member of the firm or officer of the corporation, applying for a permit to conduct such sale, which statement shall contain:

A. Generally, the name and address of the applicant; a description, by sheet location, of the place where such sale is to be held; the length of time of its expected duration; and, the dates between which it is proposed to be conducted;

B. The name of any person who will conduct the sale, and whether any items of stack in fade have been added in expectation of such sale, and if so, a description of such items and when so added;

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

D. The means to be employed in publishing the sale, together with the proposed language content in any advertisement;

E. Inventory of Goods. An inventory of goods, wares and merchandise, item by item, to be sold at such sale, whether the article is new, used or rebuilt, the date of acquisition of such goods, wares or merchandise, and the persons from whom obtained and the place from which such goads were last taken. Each item must be numbered separately in the inventory and the number in the inventory must correspond to a number physically attached to such item.

(Ord. 1582 § 2 (part), 1985).

Upon filing an original application for a permit to conduct a sale, the applicant shall pay to the finance officer a deposit fee in the sum of fifty dollars ($50.00), and in addition thereto, such other business license fee as may be at that time or thereafter become applicable.

(Ord. 1582 § 2 (part), 1985).

A. Upon receipt of the application and deposit, under the two preceding sections, the finance officer shall cause an investigation to ascertain the truthfulness of the sworn statement submitted by the applicant, and to determine whether the items described in the inventory are a bona fide part of the applicant's stock in trade. The applicant shall be charged the sum of ten dollars for each hour required to make such investigation. Such amount shall be deducted from the deposit made by the applicant and the amount that remains in the hands of the finance officer after such deduction shall be repaid to the applicant.

B. If the deposit fee of fifty dollars ($50.00) is insufficient to pay the cost of making the investigation, the finance officer shall notify the applicant in writing of that fact and set forth the additional necessary expense for completing such investigation and the applicant shall deposit with the finance officer such additional amount. If such additional amount is not deposited within five (5) days after the receipt of such notice, the application shall lapse and any further proceedings for a permit must be pursuant to a new application.

(Ord. 1582 § 2 (part), 1985).

If the finance officer determines that a permit may be issued to the applicant, he shall indicate the days for which such permit shall be issued and shall then issue the permit.

(Ord. 1582 § 2 (part), 1985).

Every permit issued under this chapter shall give the name of the person to whom it is issued, the name of the person who will conduct the sale, the dates of the sale and the place where such sale may be conducted.

(Ord. 1582 § 2 (part), 1985).

It is unlawful for any person conducting a liquidation sale to sell or offer for sale at such liquidation sale any item of such stock to which there is not attached a tag, card, ticket or label containing a number referring to and corresponding with the number in the inventory as set forth in Section 5.24.030. Such tag, card, ticket or label shall remain securely attached to such article and shall be delivered to the purchaser as a true and correct description by such reference of the article sold, and shall be prima facie evidence of intent to defraud in case such description referred to is not a true and correct description and representation of such article sold.

(Ord. 1582 § 2 (part), 1985).

Upon commencement and throughout the duration of any liquidation sale, the permit issued shall be prominently displayed near the entrance to the premises. The duplicate original of the application and stock list pursuant to which such permit was issued shall also be posted.

(Ord. 1582 § 2 (part), 1985).

Suitable books and records shall be kept by the permittee and shall at all times be available for inspection by the finance officer or his designee.

(Ord. 1582 § 2 (part), 1985).

At the close of business each day, at a liquidation sale under this article, the stock list attached to the application shall be revised, and those items disposed of during such day shall be removed or stricken thereon, and no goods added to such list.

(Ord. 1582 § 2 (part), 1985).

The provisions of this chapter shall not apply to nor affect sales conducted by sheriffs, constables or other public or court officials, or to any person acting under the direction or authority of any court, state or federal, selling goods, wares and merchandise in the course of his official duties.

(Ord. l582 § 2 (part), 1985).