Vallejo Municipal Code Ch. 5.20 Distress Merchandise Sales

The following terms shall have the meanings ascribed unless the context clearly indicates a different meaning:

A. "Distress merchandise sale" means any offer to sell to the public, or sale to the public, of goods, wares, or merchandise on the implied or direct representation that such sale is in anticipation of or resulting from the termination of applicant's business at its present or any other location or that the sale is being held other than in the ordinary course of business. Without limiting the generality of the above, distress merchandise sales include any sale advertised either specifically or in substance to a "liquidation sale," "adjustment sale," "creditor's sale," "trustee's sale," "bankrupt sale," "save us from bankruptcy sale," "insolvent sale," "insurance salvage sale," "mortgage sale," "assignee's sale," "adjuster's tee," "must vacate sale," "quitting business sale," "receiver's sale," "loss of lease sale," "forced out of business sale," or "removal sale."

B. "Person" means any individual, partnership, association, firm or corporation.

(Ord. 191 N.C. § 1, 1955.)

It is unlawful for any person to advertise or conduct a distress merchandise sale without first having obtained a license to do so in accordance with the provisions of this chapter.

(Ord. 191 N.C. § 2, 1955.)

Any person desiring to conduct a distress merchandise sale shall make written application to the city treasurer at least fifteen days prior to the date on which the sale is to commence, on blanks furnished by the city treasurer and verified by the applicant before a person authorized to administer oaths. Each application shall contain the following information and such other information as the city treasurer may deem necessary:

A. The name and address of the owner of the goods, wares or merchandise to be sold;

B. The address of the place where such sale is to be held;

C. The nature of the occupancy of the place where such sale is to be held, whether by lease or otherwise, and the effective date of termination of such occupancy;

D. A full and complete statement of the facts regarding the distress merchandise sale, including the reason why such sale is being conducted, the manner in which such sale will be conducted, and the commencement and termination date of such sale;

E. The means to be employed in advertising such sale, together with the content of any proposed initial advertising copy;

F. An inventory by classes of the goods, wares and merchandise to be sold at such sale, showing the number of items in each class and the total cost of each classification.

(Ord. 191 N.C. § 3, 1955.)

Upon receipt of the application, the city treasurer shall cause an investigation to be made of all the facts contained therein. No license shall be issued if any one or more of the following facts or circumstances are found to exist:

A. That the inventory contains goods, wares or merchandise not purchased by the applicant for resale on bona fide orders without cancellation privileges;

B. That the inventory contains goods, wares or merchandise purchased by the applicant on consignment;

C. That the applicant either directly or indirectly and within five years prior to the date of filing of the application, conducted a sale in connection with which he falsely advertised or represented that the entire business conducted at the location designated in the application was to be closed out or terminated;

D. That the applicant was granted a license hereunder within two years preceding the date of the filing of the application;

E. That the applicant has heretofore been convicted of a violation of this chapter or has had a license issued to him pursuant to this chapter revoked within a five year period immediately preceding the date of the present application for a license;

F. That the inventory contains goods, wares or merchandise purchased by the applicant or added to this 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 for 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 for these of selling the same at such sale;

G. That the applicant has not been in business at the location described in the application for at lest six months prior to the date of the filing of the application;

H. That any representation made in the application is not true or any advertisement proposed to be used in connection with the sale is misleading.

(Ord. 191 N.C. § 4, 1955.)

When it appears to the city treasurer that all the statements in the application are true and that the proposed sale is of the character represented therein, that the application is in full compliance with the terms and conditions of this chapter, and that the required license fee has been paid, the city treasurer shall issue a license to the applicant authorizing said applicant to advertise and conduct the sale as described in the application, subject to the following conditions:

A. The sale shall be held at the place named in the application and by the particular licensee for a period of not more than forty-five consecutive calendar days (Sundays and legal holidays excluded), next following the date of the issuance of the license; this license shall not be transferable;

B. Only the goods, wares and merchandise described in the inventory attached to the application shall be sold at the sale;

C. Upon the commencement of the sale and for its duration, the license issued hereunder shall be prominently displayed in the place of sale by the licensee;

D. The licensee shall keep suitable books during the sale, at the location at which the sale is conducted, in which shall be made daily entries showing total dollar volume of each day's business. Said books shall be open for inspection by the city treasurer and his duly authorized representatives.

(Ord. 191 N.C. § 5,1955.)

The city treasurer shall revoke any license issued pursuant to the provisions of this chapter if he finds that the licensee has violated any provision of this chapter, has made any material misstatement in his application, has failed to include in the inventory required by the provisions of this chapter all the goods, wares and merchandise being offered for sale, has added or permitted to be added to the sale any goods, wares or merchandise not described in the original application and inventory, or has failed to keep suitable records of such sale, or has used any false or misleading advertising during the course of such sale.

(Ord. 191 N.C. § 6, 1955.)

The city treasurer shall, upon application therefor, renew a license issued under the provisions of this chapter for a period of forty-five days (Sundays and legal holidays excluded), if the licensee has not sold all the goods listed in the inventory submitted with the original application. Such renewal shall not be granted until the applicant has filed with the city treasurer a revised inventory showing the items listed on the original inventory remaining unsold. The fee for the renewal of a license shall be fifty dollars.

(Ord. 191 N.C. § 7, 1955.)

The fee for licenses issued pursuant to this chapter shall be twenty-five dollars.

(Ord. 191 N.C. § 8, 1955.)