Richmond Municipal Code Ch. 7.24 Close-Out Sales

The purpose of this chapter is to safeguard the public and encourage competition by prohibiting unfair, dishonest, deceptive, destructive, fraudulent, and discriminatory practices by which fair and honest competition is destroyed or prevented and by which members of the public are injured.

This chapter shall be liberally construed so that its beneficial purposes may be served.

Whenever used in this chapter, the following terms shall mean:

(a) "Sale". The sale or an offer to sell to the public goods, wares and merchandise of any and all kinds and descriptions on hand and in stock 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, revision, wind-up, discontinuance, conclusion or abandonment of the business in connection with such sale. It shall also include any sale advertised to be a "fire sale," "adjustment sale," "creditor's sale," "trustee's sale," "liquidation sale," "reorganization sale," "alteration sale," "executor's sale," "administrator's sale," "insolvent sale," "insurance salvage sale," "mortgage sale," "assignee's sale," "adjustor's sale," "receiver's sale," "loss-of-lease sale," "wholesaler's closeout sale," "creditor's committee sale," "forced-out-of-business sale," "removal 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.

(b) "Publish," "publishing," "advertisement," "advertising." Any and all means of conveying to the public notice of sale or notice of intention to conduct a sale, whether by word of mouth, by newspaper advertisement, by magazine advertisement, by handbill, by written notice, by printed notice, by printed display, by billboard display, by poster, by radio, or television announcement and any and all means including oral, written or printed.

The Chief of Police is authorized to supervise and regulate sales as defined in Section 7.24.030 of this chapter.

It shall be unlawful for any person to publish or conduct any sale of the type herein defined without a license therefor.

Every application for a license required by this chapter shall be made to the Assessor and Tax Collector in writing and shall be verified under oath.

Such application must contain:

(a) A description of the place where such sale is to be held.

(b) The nature of the occupancy, whether by lease, sublease, and the effective date of termination of such occupancy.

(c) The means to be employed in publishing such sale, together with the proposed content of any advertisement.

(d) An itemized list 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.

(e) The place where such stock was purchased or acquired and, if not purchased, the manner of such acquisition; and the time such property has been in possession of the owner in a fixed place of business and offered for sale in the City of Richmond.

(f) 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.

(g) Any additional information as the Chief of Police may require.

Upon the filing of such application and after investigation by the Chief of Police and determination that the provisions of this chapter have been complied with, the Assessor and Tax Collector shall issue such license for a period not to exceed 30 days. If the Chief of Police determines that the provisions of this chapter have not been complied with, the application must be denied.

Upon satisfactory proof by the licensee that the stock itemized in the original application has not been disposed of the Assessor and Tax Collector may renew such license for an additional 30-day period.

Such proof shall be furnished on a form supplied by the Assessor and Tax Collector. It shall contain an itemized list of stock on hand and shall be verified under oath.

The Chief of Police shall cause such proof to be examined and investigated and if satisfied as to the truth of the statements therein contained, the Assessor and Tax Collector may issue a renewal license for a period of not to exceed 30 days; provided, however, that a maximum of three such renewals may be granted for any such sale for the same location within one year from the issuance of the original license.

The Chief of Police may make such rules and regulations for the conduct and advertisement of such sales as, in his opinion, will serve to prevent deception and to protect the public.

Upon filing an application for an original or a renewal license to advertise or conduct such sale, the applicant shall pay to the Assessor and Tax Collector a fee in accordance with Chapter 7.04 of this article or any amendment or revision thereof hereafter ordained. If any such application be disapproved, such payment shall be forfeited to the City of Richmond to defray the cost of investigating the statements contained in such application.

(Amended by Ordinance No. 10-03 N.S.)

Upon commencement of any such sale, the license therefor shall be conspicuously displayed near the entrance to the premises.

A duplicate original of the application and stock list pursuant to which such license was granted shall be available at all times to the Chief of Police or to his inspectors, and the licensee shall permit such inspectors to examine all merchandise on the premises for comparison with such stock list.

At the close of business each day the stock list attached to such application 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 Chief of Police shall be kept by the licensee and shall be available at all times to the inspectors of the Police Department.

No goods, wares or merchandise shall be permitted to be offered for sale except at a fixed place of business within the City of Richmond and unless such goods have been continuously in the possession of the same owner at such fixed place of business for more than 60 days immediately prior to such sale and unless such goods have been listed in the inventory filed with the application for the license.

All advertising shall be descriptive of the nature of such sale as stated in the application therefor. The language in such advertising shall be identical with the advertising content as indicated in the application.

It shall be unlawful to indicate in such advertising, either directly or indirectly, that such sale is held with the approval of the Chief of Police.

Such advertising shall contain a statement in the following words and no others: "Sale held pursuant to License No._____ of the City of Richmond," and in such blank spaces the license number and the requisite dates shall be indicated.

The following persons shall be exempt from the provisions of this chapter:

(a) Persons acting pursuant to an order of the process of a court of competent jurisdiction, provided, however, that no exemptions shall be allowed for a sale conducted pursuant to Part 9 of the Corporations Code of the State of California.

(b) Sheriffs and marshals acting in accordance with their powers and duties as public officers.

(c) Duly licensed auctioneers, selling at auction.

(Source: Ordinance No. 1450; amended by Ordinance No. 5 N.S.)