CITY OF

HERMOSA BEACH

MUNICIPAL CODE ON-LINE

BUSINESS LICENSES AND REGULATIONS

Chapter 5.32

CLOSING-OUT SALES AND SIMILAR SALES

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	5.32.010	Definitions.
	5.32.020	Permit required.
	5.32.030	Application for permits --Information and inventory to be shown.
	5.32.040	Investigation of applicant for permit.
	5.32.050	Issuance or denial of permit.
	5.32.060	Hearing upon denial of issuance of permit.
	5.32.070	Permit fee.
	5.32.080	Scope of permit --Renewals.
	5.32.090	Sales at location described in permit only--Purchase of goods during sale prohibited.
	5.32.100	Revocation of permit --Generally.
	5.32.110	Revocation of permit --Complaint.
	5.32.120	Loss of identity of goods.
	5.32.130	Display of permit --Duplicate of application and stock list to be kept available for inspection.
	5.32.140	Records to be kept --Revision of stock list.
	5.32.150	Exemptions from chapter.

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5.32. 010 Definitions.

For the purposes of this chapter the following words and phrases shall have the meanings respectively ascribed to them by this section:

"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 and radio or television announcement.

"Inspector" means an inspector appointed by or authorized by the city council.

"Permit" means a permit issued pursuant to this section.

"Permittee" means any person to whom a permit has been issued pursuant to this section.

"Sale" means any sale of, or any offer to sell, to the public, or any group thereof, 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; and

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, be interrupted, discontinued or changed; and

All sales advertised to be "adjuster's sale," "adjustment sale," "assignee's sale," "bankrupt sale," "benefit of trustee's sale," "benefit of administrator's sale," "benefit of creditor's sale," "building coming down sale," "closing sale," "closing out sale," "creditors' committee sale," "damaged goods sale," "end sale," "executor's sale," "final days sale," "fire sale," "forced out sale," "forced out of business sale," "insolvent sale," "insurance salvage sale," "last days sale," "lease expires sale," "lease expiring sale," "liquidation sale," "loss of lease sale," "mortgage sale," "outselling sale," "receiver's sale," "removal sale," "reorganization sale," "salvage sale," "selling out sale," "smoke sale," "smoke and water sale," "trustee's sale," "quitting business sale," "wholesale closing out sale," "we quit sale," "we give up sale," "fixtures for sale," or advertised by any other expression or characterization closely similar to any of the foregoing and calculated to convey the same meaning; and

All sales advertised in a manner calculated to indicate that the goods, wares or merchandise to be sold, or any part thereof, have been involved in any business failure or have been derived from a business which has failed, been closed, discontinued or liquidated; and

All sales accompanied by notices or advertising indicating that the premises are available for purchase or lease or are otherwise to be vacated; and

All sales accompanied by advertising indicating a business emergency or failure affecting the seller or any previous holder of the goods to be disposed of. (Prior code § 9-1)

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5.32. 020 Permit required.

No person shall hereafter publish or conduct any sale of the type here defined without first obtaining a permit therefor from the city council. (Prior code § 9-2)

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5.32. 030 Application for permits--Information and inventory to be shown.

No permit to conduct a sale as defined herein shall be granted except upon written application to the city council, signed and verified before a person authorized to administer oaths, by the person who intends to conduct such sale, and each application shall set forth and contain the following information:

A. Description, by street location and kind of building of the location at which 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;

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, administration, 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 council may require, setting forth the amount and description of goods, wares and merchandise to be sold at such sale, and, when required by the city council, 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.

The city council may require that all goods, wares and merchandise listed upon the inventory or statement shall be so described in detail by manufacturer's name and lot number, the individual number of articles so numbered, colors, sizes and otherwise, that the identity of such goods with the goods listed on such inventory can be readily determined. (Prior code § 9-3)

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5.32. 040 Investigation of applicant for permit.

Upon the filing of the application for a permit, the city council may make or cause to be made an examination, audit or investigation of the applicant and his affairs, in relation to the proposed sale. (Prior code § 9-4)

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5.32. 050 Issuance or denial of permit.

If the city council finds that the statements in the application are true, that the inventory is complete, that the advertising set forth is not false, fraudulent, deceptive or misleading in any respect, and that the methods to be used by the applicant in conducting the sale are not such as, in the opinion of the city council will work a fraud upon the purchasers, the city council shall issue to the applicant a permit to conduct such sale in accordance with the provisions of this chapter, otherwise the city council shall deny the application and refuse the permit. The city council may refuse a permit because of the insufficiency of the information set forth in the application, but in such event the city council shall grant the applicant permission to file an amended application. (Prior code § 9-5)

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5.32. 060 Hearing upon denial of issuance of permit.

No application, however, shall be denied unless an opportunity for a hearing has been given the applicant by a ten days' notice in writing, personally served on applicant or mailed to applicant's place of business as set forth in the application in the manner prescribed by the Code of Civil Procedure for service or civil pleadings after complaint is served. (Prior code § 9-6)

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5.32. 070 Permit fee.

No application for any permit shall be accepted by the city council for filing unless accompanied by a filing fee in the amount of fifty dollars ($50.00) no part of which shall be refundable. (Prior code § 9-7)

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5.32. 080 Scope of permit--Renewals.

Any permit issued under the provisions of this chapter shall authorize the one type of sale named in the application, at the place named therein, for a period of not more than sixty (60) calendar days, and shall permit the sale of goods only which are set out 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, of goods involved in the sale; provided, however, that the city council may, upon a verified application therefor, renew the permit for a period of not to exceed thirty (30) days, upon the payment of a renewal fee in the amount of twenty-five ($25.00) dollars. Such verified petition for renewal shall set forth a complete list of goods listed in the original application and remaining unsold, and shall not contain any goods, wares or merchandise not named in such original application. Upon receipt of such application for renewal the city council shall cause an investigation to be made at once, and if satisfied of the truth of the statements therein contained, the city council shall grant such renewal, which shall be endorsed and signed as provided for the original permit. The city council may renew any original permit in the manner above provided not to exceed two times, upon the payment of the sum of twenty-five ($25.00) dollars for each such renewal; provided, however, that the city council may not issue permits or renewals which will allow the conduct of any sale, or sales, of any kind, or kinds, named in this section, at any one location for more than one hundred twenty (20) calendar days in any one twelve (12) month period. (Prior code § 9-8)

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5.32. 090 Sales at location described in permit only--Purchase of goods during sale prohibited.

A permit required by this chapter shall be valid only for the advertising, representation and sale of the particular goods, wares or merchandise described in the original application therefor, and at the particular time, and particular place stated therein, and by the particular applicant, and any renewal, replenishment or substitution of such goods, wares or merchandise, or change of such time or place for such sale, or change of person conducting the sale, shall be unlawful and shall render such permit void. No person in contemplation of conducting any such sale or special sale, or during the continuance of such a sale, shall order any goods, wares or merchandise for the purpose of selling them at such sale, and any unusual purchase, or additions to the stock of such goods, wares or merchandise, within sixty (60) days before the filing of such application for a license to conduct such a sale shall be presumptive evidence that such purchase or additions were made in contemplation of such sale and for the purpose of selling them at such sale. (Prior code § 9-9)

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5.32. 100 Revocation of permit--Generally.

The city council shall have the power to revoke at any time any permit granted in accordance with this section whenever any such sale or special sale is being conducted in violation of any of the provisions of this section or in such manner as to deceive or defraud the public, or if

A. The holder of any such permit has made any material misstatement in the application for such permit;

B. He has been guilty of any fraudulent practice, or practices, in the conduct of the sale authorized by such permit;

C. He has failed to include in the inventory required by the provisions of this section the goods, wares or merchandise required to be contained in such inventory;

D. He has added, caused to be added, or permitted to be added any goods, wares or merchandise not described in the original inventory;

E. He has violated any of the provisions of this section or of the laws pertaining to advertising. (Prior code § 9-10)

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5.32. 110 Revocation of permit--Complaint.

No permit shall be revoked for any cause enumerated in the preceding section, until a written complaint has first been filed with the city council setting forth in ordinary, concise language the charge made against the permittee. Such complaint shall be verified by the oath of the person making the charge, such verification to be in the form prescribed by the Code of Civil Procedure for verified pleadings in civil actions. Service of such complaint and notice of hearing shall be in the form and manner prescribed by the Code of Civil Procedure for service of complaints and notices. (Prior code § 9-11)

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5.32. 120 Loss of identity of goods.

Any removal of any goods, wares or merchandise inventoried and described in the original application form from the place of sale mentioned in such application shall cause such goods to lose their identity as the stock of any of the sales defined herein, and no permits thereafter will be issued for the conducting of a sale of any such goods, wares or merchandise in such manner as to identify them with the store, store name, store owner or location referred to in the original application. (Prior code § 9-12)

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5.32. 130 Display of permit--Duplicate of application and stock list to be kept available for inspection.

Upon commencement and throughout the duration of any sale, as herein defined, the permit issued by the city council shall be prominently displayed near the entrance to the premises. A duplicate original of the application and stock list pursuant to which such permit was issued, shall at all times be available to the city council or to its inspector and investigators, and the permittee shall permit such inspector and investigators to examine all merchandise in the premises for comparison with such stock list. (Prior code § 9-13)

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5.32. 140 Records to be kept--Revision of stock list.

Suitable books and records shall be kept by the permittee and shall at all times be available to the inspector and investigators. 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 so marked thereon. (Prior code § 9-14)

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5.32. 150 Exemptions from chapter.

The provisions of this chapter shall not apply to or affect the following persons:

A. Persons acting pursuant to an order or process of a court of competent jurisdiction;

B. Persons acting in accordance with their powers and duties as public officers such as sheriffs and marshals;

C. Any publisher of a newspaper, magazine or other publication, who publishes any such advertisement in good faith, without knowledge of its false, deceptive or misleading character, or without knowledge that the provisions of this section have not been complied with. (Prior code § 9-15)

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