Chapter 6.05 — CONTROLLED SALES

As used in this chapter:

Controlled sale means sale of goods or merchandise of any kind which is held out or represented to be an insurance sale, bankrupt sale, liquidation sale, insolvent sale, a removal or closing-out sale, or a sale of damaged goods or merchandise of any kind, or a sale of goods or merchandise from the stock of a bankrupted receiver, trustee, or insurance company. (1991 code § 6-15.1)

No person may advertise a controlled sale or hold a controlled sale without a permit from the city to do so.

(1991 code § 6-15.2)

• A. Required. A person desiring to advertise or conduct a controlled sale shall apply to the city manager for a permit to do so.

• B. Contents. A person desiring a permit shall file an application on a form prescribed by the city manager. In addition to other information, the application shall contain:

  1. All facts concerning this sale, including an inventory of the goods or merchandise to be sold;

  2. A statement of the names of persons from whom the goods and merchandise were obtained, together with the date of delivery to the applicant and other details necessary to identify the goods and merchandise to be sold;

  3. The duration of this sale.

(1991 code § 6-15.3)

At the time of filing an application, the applicant shall pay a fee based upon the schedule established by city council resolution. (1991 code § 6-15.4)

When a person files an application for a permit to advertise and hold a controlled sale, the city manager may refer it for investigation and report. In conducting the investigation, the city may examine the business, books, records and accounts of the applicant. (1991 code § 6-15.5)

The city manager may issue the permit if he or she finds that:

• A. The proposed controlled sale is of the character reported by the applicant;

• B. The applicant is of good moral character;

• C. The applicant and each of the applicant's officers, directors, or firm members have not violated this chapter;

• D. The advertising and the conducting of the sale will not be injurious to the public health, safety and welfare.

(1991 code § 6-15.6)

• A. The permit is valid only for the sale of goods or merchandise described in the application and for the location and duration specified in the permit.

• B. The applicant may not add goods or merchandise to his or her inventory after filing the application.

(1991 code § 6-15.7)

The city manager may revoke a permit without notice if he or she finds that the applicant has made a false statement in his or her application or has violated any term or condition of the permit or any provision of this chapter. (1991 code § 6-15.8)

No person may advertise or conduct a controlled sale for a period longer than 30 days. However, during the period of the controlled sale, the applicant may request an extension of the period of the controlled sale. The applicant requesting an extension of the period shall file a statement of the inventory remaining. If the city manager finds that all of the goods or merchandise described in the original application have not been sold, the city manager may extend the period of sale for an additional 30 days.

(1991 code § 6-15.9)

It is unlawful for a person holding a permit to:

• A. Remove the goods or merchandise described in an application from the place of sale;

• B. Order or add additional goods or merchandise not described in the original application. (1991 code § 6-15.10)