Montebello Municipal Code Ch. 5.36 Fire and Close-Out Sales

For purpose of this chapter, certain words and phrases are defined and certain provisions shall be construed as herein set forth, unless it is apparent from the context that a different meaning is intended.

"Advertise," "Advertisement," "Publish" and "Publication" means 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 herein 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 notice, printed display, billboard display, poster, radio and television announcement.

"Permit" means a permit to conduct such sale or sales as contemplated by this chapter.

"Permittee" means any person, within the meaning of Section 1.04.260, who shall be granted a permit to conduct such sale or sales as contemplated by this chapter.

"Sale" means:

A. 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 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; and

B. 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

C. All sales advertised to be adjuster's sale, adjustment sale, assignee's sale, bankrupt sale, benefit contractor's sale, benefit creditor's sale, benefit of trustee's sale, building coming down sale, closing sale, closing out sale, creditors' committee sale, creditor's sale damaged goods sale, end sale, executors' sale, final days' 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, reorganization sale, salvage sale, selling out sale, smoke sale, smoke and water 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

D. 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

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

F. 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.

(Prior code §§ 6409 and 6409.1—6409.4)

No person shall hereafter publish or conduct any sale of any type herein defined without first obtaining a permit therefor from the license collector and inspector of the city in the manner hereinafter provided in this chapter.

(Prior code § 6409.5)

A. No permit to conduct a sale as defined herein shall be granted except upon written application to the license collector and inspector of the city at least thirty days before the sale is to commence, signed and verified before a person authorized to administer oaths, by the person who intends to conduct sale, or, in the case of a corporation, by an officer and the manager of the store, and each application shall set forth and contain the following:

1. Street address and type of building where such sale is to be held;

2. The nature of the occupancy, whether by ownership, lease or sublease, and if by lease or sublease, the effective date of the termination of such tenancy and the name of the owner, and sublessor, if any;

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

4. 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;

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

6. If the sale implies that the business is closing, a statement that the applicant intends to close and remove from the premises and the time when he intends to close and remove from the premises and the time he intends to do so.

B. The license collector and inspector of the city may require that all goods, wares and merchandise listed upon the inventory or statement shall be so described in detail by the manufacturer's name and lot number, the individual number of articles so numbered, colors, sizes and otherwise, that the quantity of such goods with goods listed on such inventory can be readily determined. The license collector and inspector of the city may require that each item listed on the inventory shall be tagged with a label or tag securely attached thereto, on which there is written or printed a number corresponding with the item on the inventory.

C. Upon filing of the application, the license collector and inspector of the city may make or cause to be made an examination, audit or investigation of the applicant and his affairs, in relation to the proposed sale.

(Prior code § 6409.6)

No application for any such permit shall be accepted by the license collector and inspector of the city for filing unless accompanied by a filing fee in the amount of two hundred fifty dollars. The applicant shall be charged for the investigation of the application, and any investigation during the sale at the actual cost of such investigation. Such costs shall be deducted from the filing fee of the applicant and any amount remaining shall be refunded to the applicant. If the filing fee is insufficient to pay the costs, the license collector and inspector of the city shall notify the applicant in writing of that fact and shall set forth the estimated additional expense, and the applicant shall then deposit with the license collector and inspector of the city such additional amount. If such additional amount is not deposited within five days, the application shall lapse and any further proceedings for a permit must be pursuant to a new application.

(Prior code § 6409.7)

A. No permit shall be issued if any one or more of the following facts or circumstances are found to exist:

1. That applicant was granted a license hereunder for a close-out type of sale within two years preceding the date of filing of the application;

2. That the inventory includes goods, wares and merchandise purchased by the applicant or added to his stock in contemplation of such sale and for the purpose of selling the same at such sale. For the purpose of this subdivision, any unusual addition to the stock of such goods, wares and merchandise made within sixty days prior to the filing of such application shall be prima facie evidence that such addition was made in contemplation of such sale and for the purpose of selling the same at such sale;

3. The acquisition by applicant of a bankrupt stock of goods or similar merchandise lot from another area within six months of application;

4. That any representation made in the application is false;

5. That the applicant has not operated as a retail merchant at that location for at least one year prior to the date of sale;

6. That the inventory is incomplete;

7. That the advertising set forth is false, fraudulent, deceptive or misleading in any respect;

8. That the methods to be used by the applicant in conducting the sale are such as, in the opinion of the license collector and inspector of the city, will work a fraud upon the purchaser;

9. The applicant or other persons connected with the sale are morally unfit or have been convicted of a crime involving moral turpitude.

B. The license collector and inspector of the city may refuse a permit because of insufficiency of the information set forth in the application, but in such event the license collector and inspector of the city shall grant the applicant permission to file an amended application.

C. No application, however, shall be denied unless an opportunity for a hearing has been given the applicant. Notice of the hearing shall be effected by personal delivery of the notice to the applicant or by depositing in the United States mail such notice, addressed to the applicant at his address given in the application.

(Prior code § 6409.8)

A. 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 License Collector and Inspector of the City of Montebello and accepted by the permittee, its officers, agents, and employees, upon the condition that such permittee comply with and abide by all the provisions of Chapter 5.36 of the Montebello Municipal Code

With a line thereunder for signature by the permittee and a witness.

B. At the time of delivery of the permit, such statement must be signed by the permittee, or his authorized agent, in the presence of the license collector and inspector, or authorized deputy.

(Prior code § 6409.9)

Any permit issued under the provisions of this chapter shall authorize the one type of sale named in the application, at the place named therein, for a period of not more than thirty 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 referring to, or calling attention to the sale, must be confined to the display, or displays, or goods involved in the sale.

(Prior code § 6409.10)

The license collector and inspector of the city, upon a verified application therefor, may renew the permit for a period of not to exceed thirty days upon the payment of a renewal fee in the sum of two hundred fifty dollars, which sum shall be used in the same manner as heretofore prescribed for the filing fee. Such verified petition 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 such original application. Upon receipt of such application for renewal the license collector and inspector of the city shall cause an investigation to be made at once, and if satisfied of the truth of the statements therein contained, the license collector and inspector of the city shall grant such renewal, which shall be endorsed and signed as provided for the original permit.

(Prior code § 6409.11)

A. The license collector and inspector of the city 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 in such manner as to deceive or defraud the public, or if the holder of any such permit:

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

2. Has been guilty of any fraudulent practice, or practices, in the conduct of the sale authorized by such permit;

3. 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;

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

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

B. No permit shall be revoked for any cause previously enumerated, until a written complaint has first been filed with the license collector and inspector of the city setting forth in ordinary, concise language the charge made against the permittee. Such complaint shall be verified by the oath of the person making the charge, such verification to be in the form prescribed by the Code of Civil Procedure for verified pleadings in civil actions. Service of such complaint and notice of hearings shall be done by depositing the same in the United States mail, addressed to the applicant at his address given in the application. Such notice and copy of the complaint shall be served or given to the permittee at least five days and not more than ten days prior to the date set for the hearing. At any such hearing the permittee shall be given an opportunity to be heard and defend himself, and he may call witnesses in his behalf. After conducting such hearing the license collector and inspector of the city may suspend or revoke the permit. If the violations which form the basis of such complaint continue after notification to the permittee, the license collector and inspector of the city may suspend the permit until the hearing to consider the revocation of the permit. Such suspension shall be effective immediately upon giving notice thereof to the person in charge at the location of the sale. During such suspension, no person shall conduct any sale of the type herein defined.

(Prior code § 6409.13)

A. A permit 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 such time or place for such sale, or change of person conducting the sale, shall be unlawful and shall render such permit void. 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 such sale.

B. 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.

C. The license collector and inspector of the city further is empowered to make such rules and regulations for the conduct and advertisement of such sale or special sale as in his opinion will serve to prevent deception and to protect the public.

(Prior code § 6409.12)

Upon commencement and throughout the duration of any sale, as herein defined, the permit issued by the license collector and inspector of the city shall be prominently displayed near the entrance to the premises. A duplicate original of the application and stock list pursuant to which such permit was issued, shall at all times be available to the license collector and inspector of the city or to his inspector and investigators to examine all merchandise in the premises for comparison with such stock list.

(Prior code § 6409.15)

Any removal of any goods, wares or merchandise inventoried and described in the original application from the place of sale mentioned in such application shall cause such goods to lose their identity as the stock of any of the sale defined herein, 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.

(Prior code § 6409.14)

Suitable books and records shall be kept by the permittee and shall at all times be available to the inspector and investigators. At the close of business each day the stock list attached to the application shall be revised and those items disposed of during such day shall be so marked thereon.

(Prior code § 6409.16)

If the applicant operates a similar business at more than one location, any sale, as defined herein, shall include only such goods, wares and merchandise as are usually carried in stock at the location of the sale.

(Prior code § 6409.18)

No sale, as defined herein, of jewelry shall be conducted unless there is present at the location of the sale an inspector appointed by the license collector of the city. The applicant shall pay the actual cost of keeping an inspector present at such sale. In addition to the filing fee, the applicant for a permit which includes the sale of jewelry shall deposit with the license collector and inspector of the city, before the sale begins, a sum equal to the estimated cost of the inspector during the course of the sale.

(Prior code § 6409.19)

During the course of any type of closing out sale, no orders shall be taken for purchase of times not listed in the inventory submitted with the application.

(Prior code § 6409.20)

The provisions of this chapter shall not apply to or affect 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 hereof have not been complied with.

(Prior code § 6409.17)