5.10 — CLOSING-OUT AND FAKE SALES

For the purposes of this chapter, certain words and terms shall be construed as set forth below:

(a) "Advertise, advertisement or advertising"

• shall mean any and all means, whether verbal or written, used for conveying to the public notice of the conduct of a sale as defined in this section or notice of intention to conduct such sale.

(b) "Closing-out sale"

shall include the following:

• (1) Any sale of or any offer to sell to the public or any group thereof goods, merchandise or wares on order in transit or in stock, in connection with a declared purpose as set forth by advertising that such sale is anticipatory of 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.

• (2) 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, discontinued or changed.

• (3) All sales advertised in a manner calculated to indicate that the goods, merchandise or wares to be sold or any part thereof have been involved in any business failure or have been derived from a business which has failed, sustained damage, been closed, discontinued or liquidated.

• (4) All sales accompanied by notices or advertising indicating that the premises are available for purchase or lease or are otherwise to be vacated.

(c) "Fake sale"

shall mean any one of the following:

• (1) The sale of goods, merchandise or wares at auction or otherwise to agents or other persons purchasing the same for or on behalf of the owner or other person interested in the selling thereof.

• (2) The offering for sale of goods, merchandise or wares of a different quality or brand or bearing a different trademark than the merchandise previously advertised for sale.

• (3) The sale of any goods, merchandise or wares misrepresented as to quantity, quality or otherwise.

  • (4) The sale or offering for sale of any goods, merchandise or wares transported or brought into the City and not constituting the original legitimate stock for such place of business within the city, as the original and legitimate stock of such place of business. Nothing in this section shall be deemed to prevent, nor shall it be considered unlawful to sell original stock of goods, merchandise and wares of any place of business, but the bringing of a new stock into any such place of business or the adding of new stock to such original stock of goods, merchandise or wares and selling or offering to sell such new stock or added stock at such place of business at any such sale is hereby declared unlawful and to be a fake sale within such meaning.

• (Ord. 1719 § 2, 10-27-1998; Formerly § 8-1)

The person operating the closing-out sale shall have the following duties and responsibilities:

• (a) Adhere to Inventory. Make no additions whatsoever during the duration of the sale to the stock of goods set forth in the inventory attached to the application.

• (b) Advertise Properly. Refrain from employing any untrue, deceptive or misleading advertising and conduct the sale in strict conformity with the advertising.

• (c) Keep Duplicate Inventory Records. Keep available at the place of sale a duplicate copy of the inventory submitted with the application and present such duplicate to inspecting officials upon request.

• (d) Segregate Non-Inventoried Goods. Keep any other goods separate and apart from the goods listed in the filed inventory as being objects of sale and make such distinction clear to the public by placing tags on all inventoried goods in and about the place of sale apprising the public of the status of all such goods.

• (e) Revised Daily Inventory. At the close of business each day the stock inventory 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 owner and shall be open at all times to inspection by the Chief of Police or his/her authorized representatives.

• (Ord. 1719 § 2, 10-27-1998; Formerly § 8-2)

The Chief of Police shall at all times have the power to make an examination or investigation of the business and the books, records and accounts and other papers pertaining thereto of any person authorized to conduct a sale regulated by the provisions of this chapter. (Ord. 1719 § 2, 10-27-1998; Formerly § 8-3)

It shall be unlawful for any person conducting a sale referred to in SCCC § 5.10.010(c) to advertise or otherwise represent to the public a reduction in the price of any goods, merchandise or wares offered to the public, whether such price reduction is represented in complete price figure or by percentage of reduction under a previous price where such reduction is not based upon a price customarily charged by other vendors for the articles offered to the public.

(Ord. 1719 § 2, 10-27-1998; Formerly § 8-4)

The following regulations shall apply to sales under this chapter:

• (a) Interval Between Sales. Any person who has held a sale, as regulated under this chapter, at the location stated in the application, shall not be granted another going out of business permit within a period of one year.

• (b) Restricted Location. Where a person operates more than one place of business, the permit issued shall apply only to the location specified in the application and no other store or branch shall advertise or represent that it is cooperating with it or in any way participating in such sale.

• (c) Persons Exempt from Section. The provisions of this section shall not apply to or affect the following persons:

  • (1) Persons acting pursuant to an order issued by a court of competent jurisdiction or pursuant to the provisions of the Uniform Commercial Code .

  • (2) Persons acting in their official capacities as public officials.

  • (3) Auctioneers holding a current business tax certificate issued by the City, selling at an auction.

• (4) Any publisher of a newspaper, magazine or other publication who publishes, in good faith, any advertisement without knowledge of its false, deceptive or misleading character or without knowledge that the provisions of this chapter have not been complied with.

• (Ord. 1719 § 2, 10-27-1998; Formerly § 8-5)