Turlock Municipal Code Art. 5 Close-out And Similar Sales: Regulations

For the purposes of this article, unless otherwise apparent from the context, certain words and phrases used in this article are defined as follows:

(a)

"Sale"

shall mean any sale in the City at retail of goods, wares, or merchandise which sale is, or is represented as, a bankrupt, insolvent, assignee, adjuster's, trustee's, executor's, administrator's, receiver's, wholesaler's, jobber's, manufacturer's closing-out a business, liquidation, retirement, forced out of business, removal, loss of lease, fire or water damage sale, or any other sale which is by representation or advertisement intended to lead the public to believe that the person conducting such sale is selling out or closing out the goods, wares, or merchandise of any business for less than the current or going retail price thereof, or that, upon the disposal of the stock of goods on hand, the business will cease or be discontinued.

(b)

"Advertise"

shall mean any and all means of conveying to the public notice of sale or notice of intention to conduct a sale, either by word of mouth, newspaper advertising, radio or television advertising, magazine advertising, handbills, written notice, or printed notice, and any and all means, including oral, written, or printed.

(c)

"Permit"

shall mean a permit issued pursuant to the provisions of this article.

(d)

"Permittee"

shall mean any person to whom a permit has been issued pursuant to the provisions of this article.

(e)

"Person"

shall mean and include any person, partnership, unincorporated association, corporation, or other legal entity.

No person shall advertise or conduct any sale of the type defined in subsection (a) of Section 3-1-501 of this article without having a valid permit therefor from the Finance Office in the manner provided in this article. No more than one permit shall be issued to any person within a twelve (12) month period, and no such permit shall be issued for less than thirty (30) days nor more than ninety (90) days.

(903-CS, Amended, 06/27/1996)

An application for a permit to conduct a sale, as defined in subsection (a) of Section 3-1-501 of this article, shall be made to the Finance Office and shall contain a statement subscribed to under oath or affirmation by the person, member of the firm, or officer of the corporation applying for a permit to conduct such sale, which statement shall contain:

(a) The name and address of the applicant; a description, by street location, of the place where such sale is to be held; the length of time of its expected duration; and the dates between which it is proposed to be conducted;

(b) The name of the auctioneer, if any, who will conduct the sale;

(c) The nature of the occupancy, whether by ownership, lease, or sublease, and the effective date of termination of such occupancy;

(d) The means to be employed in advertising such sale, together with the proposed language content in any advertisement; and

(e) An inventory of the goods, wares, and merchandise, item by item, to be sold at such sale, the wholesale value or cost to the applicant of each item and the quality and grade thereof, whether the article is new, used, or rebuilt, the date of acquisition of such goods, wares, or merchandise, and the persons from whom obtained and the place from which such goods were last taken. Each item shall be numbered separately in the inventory, and the number in the inventory shall correspond to a number physically attached to such item.

(903-CS, Amended, 06/27/1996)

Upon filing an original application for a permit to conduct a sale, as defined in subsection (a) of Section 3-1-501 of this article, the applicant shall pay to the City Clerk a deposit fee in the sum of Fifty and no/100ths ($50.00) Dollars and, in addition thereto, such other business license fee as may be at that time or thereafter become applicable.

Upon receipt of such application and deposit, the City Clerk shall refer such application to the City Manager, who shall make such investigation thereof as he deems appropriate. The City Manager may, at any time, cause the inventory submitted to be checked with the actual items in the applicant's place of business and may cause an investigation to be made to ascertain the truthfulness of the sworn statement submitted by the applicant and to determine whether the items described in the inventory are a bona fide part of the applicant's stock in trade. The applicant shall be charged a fee established by resolution of the City Council for each day or fraction thereof required to make such investigation and shall make such payment on demand.

(903-CS, Amended, 06/27/1996)

If the City Manager shall determine that a permit may be issued to the applicant, the City Manager shall notify the Finance Office of the days for which such permit shall be issued, and the Finance Office shall then issue the permit. Such permit shall give the name of the person to whom it is issued, the name of the auctioneer, if any, who will conduct the sale, and the dates between which, and the place where, such sale may be conducted.

(903-CS, Amended, 06/27/1996)

(a) Under no circumstances shall the inventory offered for sale at auction or sale, as defined in subsection (a) of Section 3-1-501 of this article exceed by thirty (30%) percent the average inventory carried at the same location over the preceding five (5) year period by the business being closed out. If the business being closed out has been in business and at the same location less than five (5) years, the inventory shall not exceed by thirty (30%) percent the average inventory carried for the period of time such business has been in business. Any abnormal purchases during the year prior to the application for the permit shall be cause for refusal to issue the permit.

(b) No stock held on consignment shall be offered for sale at auction.

(c) No person shall advertise, sell, or offer or expose for sale at any such sale any goods, wares, or merchandise not listed on such inventory.

(d) No person shall advertise, sell, or offer or expose for sale at any such sale any goods, wares, or merchandise which is not the regular stock of the store or other place, the business of which is to is closed out by such sale, or make any replenishments or additions to such stock for the purpose of such sale or during the time thereof.

Upon commencement and throughout the duration of any sale as defined in subsection (a) of Section 3-1-501 of this article, the permit issued shall be prominently displayed near the entrance to the premises. The duplicate original of the application and stock list pursuant to which such permit was issued shall also be posted.

Suitable books and records shall be kept by the permittee and shall, at all times, be available for inspection.

At the close of business each day the stock list attached to the application shall be revised, and those items disposed of during such day shall be removed or stricken thereon, and no goods shall be added to such list.

The provisions of this article shall not apply to nor affect sales conducted by sheriffs, constables, or other public or court officials or to any other person acting under the direction or authority of any court, State or Federal, selling goods, wares, and merchandise in the course of his official duties.

No sale defined in subsection (a) of Section 3-1-501 of this article shall be conducted at any time except between the hours of 9.00 a.m.and 6.00 p.m. on any day, except Sundays and holidays. A permit shall not be issued to conduct a sale during the period of time from the first day of December to and including December 25 of any year, and it shall be unlawful for any person to conduct, or cause to be conducted, any such sale during such period of time.

Any permit may be denied or revoked on any of the following grounds:

(a) Any violation of, or failure to comply with, the provisions of this article;

(b) Failure to have a valid and current City business license;

(c) Any misleading advertising or misleading business conduct in connection with such sale;

(d) Failure to pay the inventory investigation charge upon demand;

(e) Failure to permit the City Manager, or his agent, to enter upon and inspect the goods, wares, and merchandise and the premises where the sale is conducted; or

(f) Violation of, or failure to comply with, any other law, ordinance, or regulation of the City or of any Federal, State, or local Government applicable to such sale or the applicant's conduct of business.

If the City Manager determines that a permit granted pursuant to the provisions of this article should be denied or revoked. Written notice of such decision shall be given, and such notice shall state the grounds for denial or revocation. Posting of such notice at the premises where the sale is to be held, or delivery to any responsible person at such premises, or actual receipt by the applicant shall be deemed adequate notice.

(866-CS, Amended, 02/09/1995)

The decision of the City Manager to grant, deny, or revoke the permit may be appealed as provided by Title 1, Chapter 4 of this Code.

(866-CS, Enacted, 02/09/1995)