For the purposes of this chapter, certain words and phrases are defined and certain provisions shall be construed as herein set forth, unless it is apparent from the context that a different meaning is intended.
(Added by Ord. 98, adopted 5-26-58)
"Advertise," "advertisement," "advertising," "publish," and "publication" shall mean 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 advertisements, magazine advertisements, handbills, written or printed notices, printed displays, billboard displays, posters, and radio announcements.
(Added by Ord. 98, adopted 5-26-58)
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, or be discontinued or changed; and
All sales advertised to be an "Adjuster's Sale," "Adjustment Sale," "Assignee's Sale," "Bankrupt Sale," "Benefit of Administrator's Sale," "Benefit of Creditors' Sale," "Benefit of Trustees' Sale," "Building Coming Down Sale," "Closing Sale," "Closing-Out Sale," "Creditors' Committee Sale," "Creditors' Sale," "Damaged Goods Sale," "End Sale," "Executors 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 or been closed, discontinued, or liquidated; and
All sales accompanied by notice 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.
(Added by Ord. 98, adopted 5-26-58)
No person shall hereafter publish or conduct any sale of the type herein defined without first obtaining a permit therefor from the Chief of Police in the manner hereinafter provided in this chapter.
(Added by Ord. 98, adopted 5-26-58)
No permit to conduct a sale as defined herein shall be granted except upon written application to the Chief of Police at least five days before the sale is commenced; provided, however, that unless such application is filed at least 30 days prior to the date the sale is to commence, the Chief of Police may delay the date of commencement for such additional period of time as may be necessary to complete the necessary investigation. Said application shall be signed and verified before a person authorized to administer oaths by the person who intends to conduct the sale, or, in the case of a corporation, by an officer and the manager of the store and each application shall set forth and contain the following:
(1) 
Street address and type of building where such sale is to be held;
(2) 
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 and the name of the owner;
(3) 
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;
(4) 
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;
(5) 
An inventory or statement, in such form and in such detail as the Chief of Police may require, setting forth the amount and description of goods, wares and merchandise to be sold at such sale, and, when required by the Chief of Police, the date of acquisition of such goods, wares or merchandise, and the persons from whom obtained and the place from which said goods were last taken.
(6) 
If the sale implies that the business is closing, a statement that the applicant intends to close and remove from the premises and the time when he intends to do so.
The Chief of Police may require that all goods, wares and merchandise listed upon the inventory or statement shall be so described in detail by the manufacturer's name and lot number, the individual number of articles so numbered, colors, sizes and otherwise, that the identity of such goods listed on such inventory can be readily determined. The Chief of Police may require that each item listed on the inventory shall be tagged with a label or tag securely attached thereto, on which there is written or printed a number corresponding with that item on the inventory.
Upon the filing of the application, the Chief of Police may make or cause to be made an examination, audit or investigation of the applicant and his affairs, in relation to the proposed sale.
(Amended by Ord. 210, adopted 8-24-62)
No application for any such permit shall be accepted by the Chief of Police for filing unless accompanied by a filing fee in an amount as established by City Council Resolution. The applicant shall be charged for the investigation of the application, and any investigation during the sale at the actual cost of such investigation. Such costs shall be deducted from the filing fee of the applicant and any amount remaining shall be refunded to the applicant. If the filing fee is insufficient to pay the costs the Chief of Police shall notify the applicant in writing of that fact and shall set forth the estimated additional necessary expense, and the applicant shall then deposit with the Chief of Police such additional amount. If such additional amount is not deposited within five days, the application shall lapse and any further proceedings for a permit must be pursuant to a new application.
(Added by Ord. 98, adopted 5-26-58; amended by Ord. 877, adopted 1-10-89)
No permit shall be issued if any one or more of the following facts or circumstances are found to exist:
(a) 
That applicant was granted a license hereunder for a "close-out" type of sale within two years preceding the date of the filing of the application.
(b) 
That the inventory includes goods, wares and merchandise purchased by the applicant or added to his stock in contemplation of such sale and for the purpose of selling the same at such sale. For the purpose of this subparagraph, any unusual addition to the stock of such goods, wares and merchandise made within 60 days prior to the filing of such application shall be prima facie evidence that such addition was made in contemplation of such sale and for the purpose of selling the same at such sale.
(c) 
The acquisition by applicant of a bankrupt stock of goods or similar merchandise lot from another area within six months of application.
(d) 
That any representation made in the application is false.
(e) 
That the applicant has not operated as a retail merchant at that location for at least one year prior to date of sale.
(f) 
That the inventory is incomplete.
(g) 
That the advertising set forth is false, fraudulent, deceptive or misleading in any respect.
(h) 
That the methods to be used by the applicant in conducting the sale are such as, in the opinion of the Chief of Police, will work a fraud upon the purchasers.
(i) 
The applicant or other persons connected with the sale are morally unfit or have been convicted of a crime involving moral turpitude.
The Chief of Police may refuse a permit because of insufficiency of the information set forth in the application, but in such event the Chief of Police shall grant the applicant permission to file an amended application.
No application, however, shall be denied unless an opportunity for a hearing has been given the applicant. Notice of the hearing shall be effected by personal delivery of the notice to the applicant or by depositing in the United States mail such notice, addressed to the applicant at his address given in the application.
(Added by Ord. 98, adopted 5-26-58)
Each permit issued under the provisions of this chapter shall have printed, written or stamped on the face thereof the following:
"This permit is granted by the Chief of Police and accepted by the permittee, its officers, agents, and employees, upon the condition that such permittee comply with and abide by all the provisions of Chapter 7 of Article VI of the Downey Municipal Code" with a line thereunder for signature by the permittee and a witness.
At the time of the delivery of said permit such statement must be signed by the permittee, or an officer or manager, in the presence of the Chief of Police or one of his deputies.
(Added by Ord. 98, adopted 5-26-58)
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 30 calendar days, and shall permit the sale of goods only which are set out in said 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, or goods involved in the sale.
(Added by Ord. 98, adopted 5-26-58)
The Chief of Police, upon receipt of a verified application therefor, may renew said permit for a period of not to exceed 30 days. If the original filing fee is insufficient to pay the costs of the renewal investigation, the Chief of Police shall notify the applicant in writing of that fact and shall notify the applicant of the additional fee required to be deposited. The applicant shall deposit with the Chief of Police such additional amount. Such verified petition or 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 and the receipt of the additional filing fee, if required, the Chief of Police shall cause an investigation to be made at once, and if satisfied of the truth of the statements therein contained, the Chief of Police shall grant such renewal, which shall be endorsed and signed as provided for the original permit.
(Amended by Ord. 210, adopted 8-24-62)
A permit 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.
Each sale of goods, wares or merchandise as were not inventoried and described in said original application shall constitute a separate offense under this chapter.
The Chief of Police further is empowered to make such rules and regulations for the conduct and advertisement of such sale or special sale as in his opinion will serve to prevent deception and to protect the public.
(Added by Ord. 98, adopted 5-26-58)
The Chief of Police shall have the power to revoke at any time any permit granted in accordance with this chapter whenever any such sale or special sale is being conducted in violation of any of the provisions of this chapter or in such manner as to deceive or defraud the public, or if the holder of any such permit:
(1) 
Has made any material misstatement in the application for such permit;
(2) 
Has been guilty of any fraudulent practice, or practices, in the conduct of the sale authorized by such permit;
(3) 
Has failed to include in the inventory required by the provisions of this chapter the goods, wares or merchandise required to be contained in such inventory;
(4) 
Has added, caused to be added, or permitted to be added any goods, wares or merchandise not described in the original inventory;
(5) 
Has violated any of the provisions of this chapter or of the laws pertaining to advertising.
No permit shall be revoked by any cause above enumerated, until a written complaint has first been filed with the Chief of Police 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 hearings shall be done by depositing the same in the United States mail, addressed to the applicant at his address given in the application. Such notice and copy of the complaint shall be served or given to the permittee at least five and not more than 10 days prior to the date set for said hearing. At any such hearing the permittee shall be given an opportunity to be heard and defend himself, and he may call witnesses in this behalf. After conducting such hearing, the Chief of Police may suspend or revoke the permit. If the violations which form the basis of such complaint continue after notification to the permittee, the Chief of Police may suspend the permit until the hearing to consider the revocation of the permit. Such suspension shall be effective immediately upon giving notice thereof to the person in charge at the location of the sale. During such suspension, no person shall conduct any sale of the type herein defined.
(Added by Ord. 98, adopted 5-26-58)
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 permit 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.
(Added by Ord. 98, adopted 5-26-58)
Upon commencement and throughout the duration of any sale, as herein defined, the permit issued by the Chief of Police 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 said Chief of Police or to his 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.
(Added by Ord. 98, adopted 5-26-58)
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.
(Added by Ord. 98, adopted 5-26-58)
The provisions of this chapter shall not apply to or affect 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.
(Added by Ord. 98, adopted 5-26-58)
If the applicant operates a similar business at more than one location, any sale, as defined herein, shall include only such goods, wares and merchandise as are usually carried in stock at the location of the sale.
(Added by Ord. 98, adopted 5-26-58)
No sale, as defined herein, of jewelry shall be conducted unless there is present at the location of the sale an inspector appointed by the Chief of Police. The applicant shall pay the actual cost of keeping an inspector present at such sale. In addition to the filing fee, the applicant for a permit which includes the sale of jewelry shall deposit with the Chief of Police, before the sale begins, a sum equal to the estimated cost of the inspector during the course of the sale.
(Added by Ord. 98, adopted 5-26-58)
During the course of any type closing out sale, no orders shall be taken for purchase of items not listed in the inventory submitted with the application.
(Added by Ord. 98, adopted 5-26-58)