Monrovia Municipal Code Ch. 5.44 Closing Out Sales

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

ADVERTISE, ADVERTISEMENT, ADVERTISING, PUBLISH, PUBLICATION. 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 such sale, including but not limited to oral or written announcements by proclamation or outcry, newspaper advertisement, magazine advertisement, handbill, written or printed display, billboard display, poster and radio announcement.

CLOSING OUT SALE.

(1) 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 such sale is anticipatory of 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; and

(2) 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

(3) All sales advertised to be “Adjuster's Sale,” “Adjustment 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 Out Sale,” “Creditor's Committee Sale,” “Creditor's Sale,” “Damaged Goods Sale,” “End Sale,” “Executor's Sale,” “Final Days Sale,” “Fire Sale,” “Forced Out Sale,” “Forced Out of Business Sale,” “Insolvent Sale,” “Insurance Salvage Sale,” “Liquidation Sale,” “Loss of Lease Sale,” “Mortgage Sale,” “Outselling Sale,” “Receiver's Sale,” “Reorganization 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,” “Fixture 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

(4) 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

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

(6) All sales accompanied by advertising indicating a business emergency or failure affecting the seller of any previous holder of the goods to be disposed of.

FAKE SALE.

(1) The sale of goods, wares or merchandise at auction or otherwise to agents or other persons purchasing the same for or on behalf of the owner or other person interested in the selling thereof;

(2) The sale or offering for sale of any goods, wares or merchandise transported or brought into the city, and not constituting the original legitimate stock of goods, wares and merchandise of a place of business within said city, as the original and legitimate stock of goods, wares and merchandise of such place of business, at a bankrupt, insurance, mortgage, insolvency, assignee's, receiver's, trustee's, creditor's, executor's or administrator's sale, or a forced removal sale, or closing out sale, or the sale of goods damaged by fire, smoke, water or otherwise. Nothing in this chapter shall be deemed to prevent, nor shall it be considered unlawful to sell the original stock of goods, wares and merchandise of any place of business at a bankrupt, insurance, mortgage, insolvency, assignee's, receiver's, trustee's, creditor's, or administrator's forced removal or closing out sale, but the bringing of new stock into any such place of business or the adding of new stock to such original stock of goods, wares and merchandise and selling or offering to sell such new stock or added stock of such goods, wares and merchandise at said place of business at any of the sales above described in this section, is hereby declared be unlawful and is a fake sale within the meaning thereof;

(3) The sale of any goods, wares of merchandise misrepresented as to quantity or quality or otherwise.

PERMIT. A permit issued pursuant to this chapter.

PERMITTEE. Any person to whom a permit has been issued pursuant to this chapter.

(`83 Code, § 5.44.010) (Ord. 82-54 §§ 1, 2, 1982)

It shall be unlawful for any person to conduct, make or advertise any fake sale of goods, wares or merchandise in the city.

(`83 Code, § 5.44.020)

(A) Provisions supplement general business license regulations. The provisions of this chapter are intended to augment and be in addition to the provisions of Chapters 5.04, 5.08 and 5.12 of this code providing for a business license tax. Whenever the provisions of this chapter impose a greater restriction upon persons, premises, business or practices than is imposed by the general business license regulations, the provisions of this chapter shall control.

(B) Interval between sales. Any person who has held a sale, as regulated under 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.

(C) Restricted location. Where a person applying for a license under 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 any way in the licensed sale.

(D) Persons exempted. The provisions of this chapter shall not apply to or affect the following persons:

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

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

(3) Duly licensed auctioneers, selling at auction;

(4) 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 the chapter have not been complied with.

(`83 Code, § 5.44.030)

It shall be unlawful for any person to advertise or conduct a closing out sale as defined in this chapter without first obtaining a permit therefor from the License Officer of the city in the manner provided in this chapter.

(`83 Code, § 5.44.040)

A person desiring to conduct a sale regulated by this chapter shall make a written application to the License Officer 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 or she 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 was obtained by the owner thereof, or person conducting such sale. All goods, wares and merchandise listed upon the inventory required in this chapter 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:

(1) 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;

(2) Goods purchased for sale under this chapter. Such inventory shall not include goods ordered in contemplation of conducting a sale regulated under this chapter. Any unusual purchase, or additions to the stock of goods of the business hereby affected by this chapter within 30 days before the filing of any application under 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 30 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.

(`83 Code, § 5.44.050)

(A) Investigation of applicant and his affairs. Upon the filing of the application the License Officer 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.

(B) Issuance or denial of application. If the License Officer 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 License Officer, will work a fraud upon the purchasers, the License Officer shall issue to the applicant a permit to conduct such sale in accordance with the provisions of this chapter; otherwise, the License Officer shall deny the application and refuse such permit.

(C) Refusal of permit on insufficiency of application. The License Officer may refuse a permit because of the insufficiency of the information set forth in the application, but in such event the License Officer shall grant the applicant permission to file an amended application.

(`83 Code, § 5.44.060)

Any applicant for a license under this chapter shall submit to the License Officer with his application a license fee in the amount as may be established by Chapters 5.04, 5.08 and 5.12, together with a corporate surety bond, payable to the city in the penal sum of $1,000, conditioned upon compliance with the provisions of this chapter.

(`83 Code, § 5.44.070)

A license shall be issued under this chapter on the following terms:

(A) Licensing period and renewal. The license shall authorize the sale described in the application for a period of not more than 60 consecutive days; provided, however, that the License Officer may, upon application therefor, accompanied by such renewal fee as may be required by Chapters 5.04, 5.08 and 5.12, renew said permit for a period of not to exceed 30 days. Such 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. Upon receipt of such application for renewal the License Officer shall cause an investigation to be made at once, and if satisfied of the truth of the statements therein contained, shall grant such renewal.

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

(C) Saleable goods. The license shall authorize only the sale of goods described in the inventory attached to the application.

(D) Nontransferability. Any license provided for in this chapter shall not be assignable or transferable.

(`83 Code, § 5.44.080)

A licensee under 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) Keep duplicate inventory. Keep available at the place of sale a duplicate copy of the inventory submitted with the application and shall present such duplicate to inspecting officials upon request;

(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 apprizing 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 License Officer shall be kept by the permittee and shall be available at all times to the License Officer, his or her agents, or representatives, including any police officer assigned to assist in the enforcement of this chapter.

(`83 Code, § 5.44.090)

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.

(`83 Code, § 5.44.100)

The License Officer or his or her agent or representative, including any police officer assigned to assist in the enforcement of this chapter, 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.

(`83 Code, § 5.44.110)

The License Officer 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:

(A) The holder of any such permit has made any material misstatement in the application for such permit.

(B) He or she has been guilty of any fraudulent practice, or practices, in the conduct of the sale authorized by such permit.

(C) 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 such inventory.

(D) He or she has added, caused to be added, or permitted to be added to any goods, wares or merchandise not described in the original inventory.

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

(`83 Code, § 5.44.120)

Any person refused a permit for a closing out sale or whose permit has been revoked or suspended under the provisions of this chapter may appeal such decision of the License Officer to the Planning Commission in accordance with the provisions of this code. The decision of the Planning Commission after such hearing shall be final and no new permit or application therefor shall be granted for a period of six months from the decision of the Planning Commission unless the Planning Commission on its own initiative shall waive such six-month limitation.

(`83 Code, § 5.44.130)