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ORDINANCE NO. IY/
AN ORDINANCE OF THE CITY OF ARROYO GRANDE, REGULATING
FIRE AND CLOSING OUT SALES IN THE CITY OF ARROYO GRANDE,
REPEALING ALL ORDINA~(S IN CONFLICT HEREWITH, DECLARING
THIS ORDINANCE TO BE AN EMERGENCY ORDINANCE TO BECOME
EFFECTIVE IMMEDIATELY, AND PROVIDING PENALTIES FOR THE
VIOLATION HEREOF.
SECTION ONE. Definitions.
For the purpose of this ordinance only, the following words and
terms shall be deemed to mean and be construed as follows:
(1) "Sale." Any sale of or any offer to sell, to the public, or
any group thereof, goods, wares or merchandise on order, intransft or
in stock, in connection with a declared purpose as set forth by adver-
tising 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 con-
ducted at any location; and
All sales advertising in any manner caleulated 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 I
changed; and !
All sales advertised to be "Adjuster's Sale," "Adjustment Sale," ~
"Assignee's Sale," "Bankrupt Sale," "Benefit of Administrator's Sale,"
"Benefit of Creditors' Sale," "Benefit of Trustees' Sale," "Building I
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,"
"Lf qui dat ion Sa 1 e," "Loss of Lease Sal e," "Mortgage S.l e," "Out se 11 i ng
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 1
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Out Sale," "We Quit Sale,1I "We Give Up Sale," "Fixtures for Sale," or
advertised by any other expression or characteriz~tion 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 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 emer~
gencyor failure affecting the seller or any previous holder of the
goods to be disposed of.
(2) "Advertise," "Advertisement," "Advertising,1I "Publish,"
IIPublication," shall mean any and all means, whether oral, written, I
lettered or printed, used for conveying to the public notice of the I
conduct of a sale as defined herein, or notice of intention to con-
duct such sale, including but not limited to oral or written announce-
ments by proclamation or outcry, newspaper advertisement, magazine
advertisement, handbill, written or printed notice, printed display, I
billboard display, poster, radio announc~ent or television.
(3) IIPermitll shall mean a permit issued pursuant to this ordin-
ance.
(4) IIPermittee" shall mean any person to whom a permit has been
issued pursuant to this ordinance. ~
(5) IIClerkll shall mean the City Clerk of the City of Arroyo !
Grande.
SECTION TWO. Permit Required. i
No person or persons, company or corporation shall hereafter pub-
lish or conduct any sale of the type herein defined without first ob-
taining a permit therefor from the Clerk in the manner hereinafter
provided in this ordinance.
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SECTION THREE. Application For and Granting of Permit.
No permit to conduct a sale as defined herein shall be granted
except upon written applicatfon to the Clerk at least fifteen (15)
days before the sale is to commence, signed and verified before a
person authorized to administer oaths, by the person who intends to
t,he
conduct/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:
( I ) 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 ter-
mination of such tenancy and the name of the owner;
(3) A copy of all advertisements proposed to be used in connec-
tion with such sale, and a statement of the means or methods of ad-
vertising to be used in advertising such sale;
(4) The facts in regard to the insurance, bankruptcy, insolvency,
assignment, mortgage foreclosure, administration, receivership, trust-
eeship, 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 Clerk may require, setting forth the amount and description of
goods, wares and merchandise to be sold at such sale, and, when re-
quired by the Cle~, date of acquisition of such goods, wares or merchan-
dise, 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 so to do.
The Clerk 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
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so numbered, colors, sizes and otherwise, that the identity of such
goods with the goods listed on such inventory can be readily determined.
The Clerk 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 inven-
tory.
Upon the filing of the application, the Clerk may make or cause to
be made an examination, audit or investigation of the applicant and his
affairs, in relation to the proposed sale.
No permit shall be issued if anyone or more of the following facts
or circumstances are found to exist,
(a) That applicant either alone, or in association with others
was granted a license hereunder for a "close-out" type of sale within
one (I) year preceding the date of the filing of the application.
(b) That the inventory includes goods, wares and merchandise pur-
chased 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 sub-paragraph, any unusual addition to the stock of
such goods, wares and merchandise made within sixty (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 (6) 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 (I) 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 Clerk, will work a fraud
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upon the purchasers.
(0 The applicant or other persons connected with the sale are
morally unfit or have been convicted of a crime involving moral turpi-
tude.
The Clerk may refuse a permft because of the insufficfency of the
information set forth in the application, but in such event the Clerk
shall grant the applicant permission to file an amended application.
No application, however, shall be denied unless an opportunity
for a hearing before the City Councfl 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
app 1 icatl on.
SECTION FOUR. Fee,
No application for any such permit shal1 be accepted by the Clerk
for fi1ing unless accompanied by a filing fee In the amount of Two
Hundred Fifty ($250.00) D011ars. The applicant shall be charged for
the investigation of the app11cant, 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 remalnfng
shall be refunded to the applicant. If the filing fee is insufficient
to pay the costs, the Clerk shall notify the app11cant In writing of
that fact and sha11 set forth the estimated additional necessary ex-
pense, and the applicant sha11 then deposft with the Clerk such addi-
tional amount, If such additional amount Is not deposited within
five (5) days, the app1ication shal1 lapse and any further proceedings
for a permit must be pursuant to a new app1ication.
SECTION FIVE. Statement.
Each permit issued under the provisions of this Section sha11
have printed, written or stamped on the face thereof the fol10wing:
"This permit is granted by the City Clerk 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 Ordinance
No. ISI "
of the City of Arroyo Grande, with a line thereunder
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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 Clerk or one of his deputies.
SECTION SIX. Conditions of Permit.
Any permit issued under the provisions of this ordinance shall
authorize the one type of sale named in the application, at the place
named therein, for a period of not more than thirty (30) calendar
days, and shall permit the sale of goods only which are set out in said
appl ication, all of which goods th,roughout 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 con-
fined to the display, or displays of goods involved in the sale.
Provided, however, that the Clerk may, upon a verified application
therefor, renew said permit for a period of not to exceed 30 days upon
the payment of a renewal fee in the sum of Two Hundred Fifty ($250.00)
Dollars, which sum shall be used in the same manner as heretofore pre-
scribed for the filing fee. 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 mer-
chandise not named in such original application. Upon receipt of such
application for renewal the Clerk shall cause an investigation to be
made at once, and if satisfied of the truth of the statements herein
contained, the Clerk shall grant such renewal, which shall be endorsed
and signed as provided for the original permit.
SECTION SEVEN. Rules and Regulations.
Such permit shall be valid only for the advertising, representation
and sale of the particular goods, wares or merchandise prescribed in the
original application therefor, and at the particular time, and particu-
lar place stated therein, and by the particular applicant, and any
renewal, replenishment or substitution of such goods, wares or merchan-
dise, or change of such time of place for such sale, or change of
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person conductfng the sa1e, shall be unlawful and shall render such
permit void. No person on contemplatfon of conductfng any such sale
or specfalsale, or durtng 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 mr merchandise as were not inventorfed
and descrfbed fn said original appl fcation shall constitute a separate
offense under this sectfon.
The CTerk 1s further empowered to make such rules and regulations
for the conduct and advertfsement of such sale or special sale as fn
his opinion will serve to prevent deception and to protect the public.
SECTION EIGHT. Power to Revoke.
The Clerk shaTl have the power to revoke at any time any permit
granted fn accordance with this seCl:t1on whenever any such sal e or
speciaT sale is being conducted fn vfolation of any of the provisions
of this section or in such manner as to deceive or defraud the publfc,
or if:
( I ) The holder of any such permit has made any mater hill mis-
statement in the application for such permit;
( 2) He has been guilty of any fraudulent practice, or practices,
fn the conduct of the sale authortzedbysuch ,permit;
(3) He has fafTed to include tn the fnventory required by the
provisions of this ordinance the goods, wares or merchandise required
to be contained in such inventory,
(4) He has added, caused to be added, or permitted to be added
any goods, wares 61' merch~dfse not described in the original fnventory;
(S) , He has vfo1ated any of the provisions of this ordfnance or
of the laws pertainfng to advertising.
No permft shalT be revoked for any cause above enumerated, untfl
a wrftten compTaint has first been filed with the Clerk settfng forth
in ordinary, concise language the charge made against the permittee.
Such compTaint sha11 be ve'rffied by the oath of the person making the
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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 com-
plaint shall be served or given to the permittee at least five (5)
days and not more than ten (10) days prior to the date set for said
hearing. At any such hearing the permittee shall be given an oppor-
tunity to be heard and defend himself, and he may call witnesses in
his behalf. After conducting such hearing, the Clerk may suspend or
revoke the permit. The permittee shall file written notice of appeal
with the City Council within five (5) days thereafter if permittee
desires to appeal the decision of the Clerk. If the violations which
form the basis of such complaint continue after notification to the
permittee, the Clerk may suspend the permit until the hearing to con-
sider 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.
SECTION NINE. ~ of Identity.
Any removal of any goods, wares or merchandise inventoried and
described in the original application form from the place of sale men-
tioned in such application shall cause such goods to lose their iden-
tity 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.
SECTION TEN;. Enforcement.
Upon commencement and throughout the duration of any sale, as
herein defined, the permit issued by the Clerk 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,
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shall at all times be available to said Clerk, or to his inspector
and investigators, and the permitee shall permit such inspector and
investigators to examine all merchandise in the premises for comparison
with such stock list.
SECTION ELEVEN. Records ~ be Kept
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.
SECTION TWE L VE . Exemptions.
The provisions of this ordinance 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 pro-
visions of this ordinance have not been complied with.
SECTION THIRTEEN. Business With Multiple Locations.
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 actually carried in stock at the 10cation
of the sale.
SECTION FOURTEEN. Taking Orders.
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 appl ication.
SECTION FI FTEEN. Application to Sales Being Conducted at the Time
of the Effective Date of,This Ordinance. Any sale of the type herein-
-- --"- before referred to shall immediately become subject to the terms of
this ordinance upon the effective date of this ordinance. The possess-
ion of any permit or license heretofore issued by the City Councilor
any other governmental agency shall be no defense to any action filed
under the provisions of this ordinance.
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SECTION SIXTEEN. Penalty.
Any person, firm or corporation violating any of the provisions
of this ordinance shall be guilty of a misdemeanor and upon conviction
shall be punished by a fine of Five.Hundred ($500.00) Dollars or by
imprisonment for a period of ninety (90) days or by both such fine and
imprisonment.
SECTION SEVENTEEN. Partial Invalidity, Effect.
If any section, subsection, sentence, clause or phrase of this
ordinance is for any reason held to be invalid such decision or de-
cisions shall not affect the validity of the remaining portions of this
ordinance. The City Council hereby declares that it would have passed
this ordinance and each section, subsection, sentence:, clause and phrase
hereof irrespective of the fact that anyone or more sections, sub-
sections, sentences, clauses or phrases hereof should be declared in-
val id.
SECTION EIGHTEEN. Repeal of Conflicting Ordinances.
Any ordinance in conflict with any of the provisions hereof are to
the extent that they are in conflict herewith repealed.
SECTION NINETEEN. Ordinance to Become Effective Immediately.
There are certain persons, firms and/or corporations intending to in-
dulge in or to conduct the publication of or maintenance of the type
of sales hereinbefore referred to within the City of Arroyo Grande.
The practice of publishing and/or conducting such types of sales in
other cities where no regulation thereof existed has resulted in severe
financial loss to the cities and the residents thereof in many cases.
For the reasons herein set forth the general welfare of the residents
of the City of Arroyo Grande will be preserved by this ordinance becom-
ing effective immediately upon its passage, and therefore this ordin-
ance shall become effective immediately upon its passage and within
fifteen (15) days thereafter it shall be published once with the names
of the Councilmen voting thereon in the Arroyo Grande Herald Recorder.
On motion of Councilman ..p~ , seconded by Councilman
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Jr?A"..J"y , and on the following roll call vote,
to-wit: ~
AYES: --;IYJ1M) f3wj:/ ~ iu, f..#uUr' ,
NOES: ~
ABSENT: '}tAm..u
the foregoing Ordinance was adopted this (p/J. day of March, 1961.
/~t~o/i. I3d
ATTEST:
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j ty er
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