Rolling Hills Estates Municipal Code Ch. 5.20 Closing-Out Sales

For the purpose of this chapter, certain words and phrases shall be defined as follows, unless it is apparent from the context that a different meaning is intended:

"Advertise," "advertisement," "advertising," "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 as contemplated by this chapter.

"Permittee" means any person who shall be granted a permit to conduct such sale as contemplated by this chapter.

"Sale" means any sale or any offer to sell, to members of the general public, 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.

(Prior code § 780)

No person shall hereafter publish or conduct any sale of the 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 § 781)

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

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

B. 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;

C. 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;

D. The facts in regard to the insurance, bankruptcy, insolvency, assignment, mortgage foreclosure, administrations, receivership, trusteeship, removal, executorship removal, or other cause advertised to be the reason for the proposed sale;

E. An inventory or statement, in such form and in such detail as the city manager may require, setting forth the amount and description of goods, wares and merchandise to be sold at such sale and 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;

F. 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 do so.

(Prior code § 782)

No application for any such permit shall be accepted by the city manager for filing unless accompanied by a filing and processing fee, as set by council resolution. Upon approval of the application, applicant shall also pay a fee for each day of the proposed sale, as set by council resolution, up to a maximum of thirty days as provided in Section 5.20.060.

(Ord. 561 § 1 (part), 1993: prior code § 783)

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

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

B. 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 subsection, 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;

C. The acquisition by applicant of a bankrupt stock of goods or similar merchandise within six months of application;

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

E. That the inventory is incomplete;

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

G. That the methods to be used by the applicant in conducting the sale are, in the opinion of the city manager, such as will work a fraud upon purchasers;

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

(Prior code § 784)

Any permit issued under the provisions of this chapter shall authorize only the 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 only goods which are described 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 § 785)

The city manager is empowered to condition the issuance of any permit in such manner as, in his opinion, will serve to prevent deception and to protect the public.

(Prior code § 786)

A. The city manager 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 or 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. The determination of the city manager shall, in all cases, be final and conclusive.

(Prior code § 787)