San Mateo Municipal Code Ch. 5.69 Closing Out Sales

For the statutory provisions regarding unfair trade practices with regard to regulated sales see Cal. Bus. & P.C.A. § 170050.

No person shall advertise, represent or hold out that any sale of goods, wares, or merchandise, or a sale of any department of goods, wares and merchandise, is an insurance, bankruptcy, liquidation, mortgage, insolvent's, assignee's, executors, administrator's, receiver's, or trustee's, or any closing out sale, or removal, or a sale of goods, wares, or merchandise damaged by fire, smoke or water, or a sale of goods from the stock of a bankrupt, receiver, trustee, insurance company, receivership, or trusteeship, and no person shall advertise, represent or hold out that any sale of goods, wares or merchandise, is anticipatory to, or to avoid the termination, closing, liquidating, revision, winding up, discontinuance, conclusion or abandonment of the business in connection with such sale, and no person shall advertise or make any representation in any such manner as reasonably to convey to the public the belief that upon the disposal of any such stock of goods on hand the business will cease and be discontinued, including, but not limited to, sales advertised, held out or represented as adjuster's sale, adjustment sale, administrator's sale, alteration sale, assignee's sale, bankrupt sale, benefit of administrator's sale, benefit of trustee's sale, building coming down sale, closing sale, closing out sale, damaged goods sale, end sale, executor's sale, final days' sale, fire sale, forced out sale, forced out of business sale, insolvent sale, last days' sale, lease expires sale, liquidation sale, loss of lease sale, mortgage sale, receiver's sale, removal sale, reorganization sale, salvage sale, smoke sale, smoke and water sale, trustee's sale, quitting business sale, wholesale cleaning out sale, and also including, but not limited to, sales the advertisement of which contains the word "creditor" or "creditors" unless he or she first obtains a permit to conduct such a sale from the Tax Collector.Any sale mentioned in this section will be referred to in this chapter as regulated sale.

prior code § 39.48

The Chief of Police, or any other City official designated by the City Manager, shall, at all times, have the power, and it shall be his or her duty, to make examination and investigation of the business and books, records and accounts, and other documents pertaining thereto, of any person conducting or theretofore permitted or authorized to conduct, regulated sales.

Prior code § 39.49

(a) In addition to the information required in Chapter 5.15, the application for a regulated sale permit shall also set forth:

(1) The location of the proposed sale;

(2) Nature of occupancy, showing length of term of lease, if any;

(3) Reason for proposed sale;

(4) Dates upon, or during which, proposed sale is to be conducted;

(5) The number and date of a valid business tax certificate issued by the City to applicant;

(6) Any other facts or statements required by the license collector.

Fingerprints of applicant shall not be required.

(b) Such application shall be accompanied by the following:

(1) A full, true and correct inventory or statement itemizing in detail the amount and description of the goods, wares, merchandise, and personal property to be sold at such sale, together with the proposed selling price of each item;

(2) The required permit fee in an amount equal to one-tenth of one percent of the total selling price of the goods as shown upon the inventory, but not less than $10.00.

(c) The permit shall authorize the conduct for the respective sales therein permitted upon the days listed in the application.

(d) In the event that the Tax Collector has determined that any unusual purchases or additions to the stock of goods, wares or merchandise, for which said application has been filed, have been made within 60 days prior to filing such application, the Tax Collector shall refuse to issue the permit provided for in this section.

prior code § 39.50

Except as otherwise in this section provided, all regulated sales made pursuant to the permit provided for in Section 5.69.030 must be made within the period of 30 calendar days including and following the first day of sale specified in the permit. If the sale is not completed within the said 30 calendar-day period, the permit holder shall have the privilege of renewing the said permit for an additional period of 30 calendar days immediately following said first 30-day period upon the payment of an additional fee, which shall be one-half of the original fee paid for such regulated sale permit; provided, that application for renewal shall be made to the Tax Collector and the permit fee deposited with him or her prior to the expiration of the first 30 calendar-day period; further provided that no permit shall be renewed so that any regulated sale under this code shall continue for a period of more than 60 calendar days.No permit for conducting a regulated sale shall be issued to the same applicant, or for any portion of the same stock of goods, or for use upon any portion of the same premises, within 90 days after expiration of the period covered by a prior regulated sale permit.

prior code § 39.53

Ord. 1984-5 §§ 120, 121

The permit provided for in Section 5.69.030 shall be valid only for a sale of the goods, wares, and merchandise inventoried and described in the application for such permit, in the manner and at the time and place set forth in such application. Any removal of such goods, wares, or merchandise, so inventoried and described, from the place of sale described in such application, shall cause such goods, wares and merchandise to lose their identity for the purpose of such regulated sale, and no permit shall thereafter be issued for the conduct of a sale of such goods, wares, or merchandise so removed from the place described in such application, under the provisions of Section 5.69.030, at any other place, or places.

prior code § 39.54

No person in contemplation of the conduct of a regulated sale under a permit as provided in Section 5.69.030 shall add any goods, wares, or merchandise to the inventory filed with the application provided for in said section for the purpose of selling or disposing of the same at such sale.

prior code § 39.55

It is unlawful for any person conducting a regulated sale under this chapter under any permit granted pursuant to Section 5.69.030 to add, during the continuance of any such regulated sale, any goods, wares, or merchandise described and inventoried in his or her original application, and no goods, wares, or merchandise shall be sold at or during such sale, excepting the goods, wares, or merchandise described in the inventory accompanying the application and each and every addition of goods, wares, or merchandise for the purpose of sale, to the stock of goods, wares, or merchandise described in said inventory, and each sale of such goods, wares, or merchandise as were not described in such inventory, constitutes a separate offense hereunder.

prior code § 39.56

The permit issued under Section 5.69.030 to any person who holds, conducts, or carries on any sale of goods, wares, or merchandise, contrary to the provisions of this chapter, or whose advertising, statement, representation, or assertion is false or untrue in any respect, or which by the exercise of reasonable care should be known to be false or untrue, deceptive, or misleading, or which violates any of the provisions of this chapter, shall be forthwith suspended by the Tax Collector on his or her determining that this section has been violated, and such person is guilty of a public offense. In the event the order for such suspension is reversed on appeal the time during which any sale is suspended pursuant to such suspension, shall not be counted in calculating the number of days during which the permit for such sale shall be effective.

prior code § 39.57

No permit fee need be paid, and the provisions of Sections 5.69.010 through 5.69.100 shall not be applicable to the selling at auction or public sale of any goods, wares, merchandise or property belonging to the United States of America, or the State, the County, or the City, or any other governmental agency, or to any sale conducted under or by virtue of, or pursuant to the authority of, any process issued out of, or by any duly constituted City, County, State, or Federal Court, authority, or body, or to the bona fide sale of the household goods, livestock or farm implements of the owner thereof at the domicile of such owner, or any assets of the estate of a decedent, or incompetent, or the sale of the owner thereof of real property upon which his or her home, dwelling, or business estate of a decedent, or incompetent, or the sale by the owner thereof of real property upon which his or her home, dwelling, or business is located, or of household furniture, fixtures or articles owned by him or her and located within, or upon the real property upon which his or her home or dwelling is situated, or to the sale of any livestock at auction when conducted on the premises included within any racing enclosure which has been licensed under the provision of any California Horse Racing Act.

prior code § 39.61

No license, permit, or certificate granted and in effect pursuant to any provision of this code, other than those applying to regulated sales, shall be effective for a regulated sale, without first obtaining a permit for a regulated sale pursuant to this chapter.

prior code § 39.62

Nothing contained in Sections 5.69.010 through 5.69.150 shall be determined to apply to the publisher of a newspaper, magazine, or other publication who publishes any advertisement in good faith without the knowledge of its falseness, deceptiveness, or misleading character, or without knowledge that the provisions of said sections, or any portions thereof, have not been complied with.

Prior code § 39.63