For the purpose of this Chapter, the definitions and interpretation
herein set forth shall be applied to the following words and phrases:
"Quitting business"
means any activity in which a person sells, disposes of,
offers or advertises for sale, any merchandise to the general public
in the City under the title of quitting business, bankrupt, liquidating,
closing-out, removal or fire sale or similarly designated title, whether
or not the merchandise is the property of such person conducting such
activity.
"Merchandise"
means any personal property usually or customarily sold in
the ordinary course of business.
(Ord. 2969 § 1 (part),
1996)
The purpose of this Chapter is to protect the public from businesses
which falsely advertise that such business is selling merchandise
at a reduced price because the business is closing and will no longer
be in operation after said sale.
(Ord. 2969 § 1 (part),
1996)
No person shall advertise or conduct a sale for more than 90
days which in any manner implies the business conducting the sale
is quitting business, going out of business or otherwise discontinuing
its operations, without first obtaining a quitting business sale permit
from the City Recorder as provided in this Chapter. A permit shall
not be required for sales conducted under a judicial process or sales
liquidating only a portion or certain type of inventory normally sold
by the business when the business will continue its operations following
said sale.
(Ord. 2969 § 1 (part),
1996; Ord. 3041 § 1, 1999)
Any person advertising or conducting a quitting business sale
for more than 90 days, shall file with the City Recorder, at least
seven business days prior to the ninetieth (90th) day of such quitting
business sale, a written application showing:
A. The
name and address of the business conducting said sale;
B. A description
of the merchandise being sold at said sale;
C. The
reason said sale is being conducted;
D. The
date the business intends to discontinue its operations and close
the business to the public; and
E. Such
other information as the City Recorder may require.
(Ord. 2969 § 1 (part),
1996; Ord. 3041 § 2, 1999)
In submitting the application provided for in Section
9.18.030, th
e applicant shall make a statement certifying:
A. That
the deceptive-advance-reduction method of attracting purchasers is
not being resorted to in connection with said sale or the advertising
thereof and that the sale is being held in good faith;
B. That
the prices of the merchandise being sold are not being quoted or advertised
at a price above the average or ordinary retail market price of said
merchandise;
C. That
the quitting business sale is being conducted in good faith, that
the business will discontinue its operations and close its doors to
the public following said sale;
D. That
the business will cease all operations within thirty days from the
issuance of the quitting business sale permit unless the sale is extended
pursuant to this Chapter; and
E. That
no new stock shall be added except stock purchased or in transit or
contracted by the original owner;
F. The
name, address and phone number of the person the City may contact
regarding customer complaints or claims during or following said sale.
(Ord. 2969 § 1 (part),
1996; Ord. 3041 § 3, 1999)
The fee for a quitting business sale permit shall be set by
Council Resolution and shall be paid prior to issuance of the permit.
The term of the permit shall be thirty days from the first day of
issuance of such permit.
(Ord. 2969 § 1 (part),
1996; Ord. 3041 § 4, 1999)
A quitting business sale shall not continue for more than thirty
days from the date of issuance of the permit required by this Chapter.
A one-time, thirty-day extension may be granted by the City Recorder
for good cause shown and upon showing that all terms of this Chapter
have been complied with, provided application therefor is filed with
the City Recorder at least seven days prior to the expiration of said
permit.
(Ord. 2969 § 1 (part),
1996; Ord. 3041 § 6, 1999)
Any business issued a permit pursuant to this Chapter shall
continuously, throughout the remainder of the sale, display in public
view the quitting business sale permit issued by the City Recorder.
(Ord. 2969 § 1 (part),
1996; Ord. 3041 § 7, 1999)
A. Denial. The City Recorder shall render a decision on the application within five business days of receiving a complete application. The City Recorder may deny an application for a quitting business sale permit based upon the grounds in Chapter
9.100. In addition to such grounds, no permit shall be issued for a closing-out sale unless it shall appear the applicant is in good faith disposing of all stock for the purpose of retiring from business; is in a voluntary or involuntary bankrupt condition or has suffered a fire loss of substantial amount within thirty days prior to the date of said application.
B. Suspension and Revocation. In addition to the grounds stated in Chapter
9.100, the City Recorder may suspend or revoke the permit of any person whenever the permittee or any person acting by or through the permittee fails to comply with the agreements or pledges made in the application or in any other manner violates the provisions of this Chapter.
C. Appeal. Any appeal from the decision of the City Recorder to deny an application or to suspend or revoke a permit shall comply with and proceed in the manner prescribed in Chapter
9.100.
(Ord. 2969 § 1 (part),
1996; Ord. 3041 § 8, 1999)