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HomeMy WebLinkAbout1960-114 411 ORDINANCE NO/ AN ORDINANCE regulating the sale of distressed goods, wares or merchandise removal sales and closing out sales, providing for licensing such sales and providing a penalty for the violation thereof. BE IT ORDAINED BY THE CITY OP YAKIMA: Section 1. Definitions: (a) The term "distress goods, wares, or merchandise sale" as used in this ordinance shall include all goods, wares, and merchandise advertised as an insurance, bankruptcy, mortgage, insolvent assignees, executors, administrators, receivers, or trustees sale of goods, wares and merchandise; or a sale of goods, wares s and merchandise advertised as damaged by fire, smoke water, or otherwise; or a sale of goods, wares, and mer- chandise, advertised as obtained by, through, as a result of • or by reason of any of the above named situations or contin- gencies. (b) The term "removal sale" as used in this ordi- nance ohall mean a sale, advertised, represented, or held out as such, arising from a future actual or contemplated moving of a business from its present location to a new location. (o) The term "closing out sale" as used in tbis ordinance shall mean a sale advertised, represented or held out as such arising from a future, actual or contemplated cessation of business, provided, however, that the closing out of a line or type of merchandise not resulting in a cessation of the entire business shall not be deemed a closing out sale. 111 Section 2. Licenejapired. Except as to ea].es under judicial process, it ehall be unlawful for any person to hold any sale defined in Section 1 hereof, or to advertise, rep- resent or hold out that any sale of goods, wares or merchandise is a sale of distress goods, wares or merchandise or is a re- moval or closing out sale in the City of Yakima unless such person shall have first obtained a license to conduct such sale pursuant to the provisions of this ordinance. Section 3 Use Pf_certainyords without license prohibited. Except as to sales under judicial prooess, it shall be unlawful in the City of Yakima for any person to advertise the sale of any goods, wares or merchandise by using the words "fire", "smoke", "insurance", "bankruptcy", "mortgage", "insolvent", "liquidation", "close out "distress", "removed", "receivers", "trustees", "executors", "adminietrators", or words of similar import to denote the type or kind of sale, unless same is a bonafide dis- tress goods, wares or merchandise sale, or is a removal or closing out sale; and such person has first obtained a license to conduct such sale pursuant to the provisions of this ordinance. Section Is. ALUicaticn for License: In addition to the general application form to be filed with the City Clerk as pro- vided in this ordinance, the applicant for a license for the sale of distressed goods, a removal or closing out sale, shall file a statement showing all the facts in regard to the contem- plated sale, the reasons for such sale, and an inventory showing actual purchase price, names of persons from whom the goods were 411 obtained, date of delivery to the applicant, and all details -2- necessary to fully identify the goods to be sold, and shall specify the period of time during which the sale will continue, not to exceed a period of two months, except as hereinafter provided. As to any goods which were obtained more than three years prior to the date of the application, an estimate of their value shall be shown instead of the actual purchase price, aud it sha:L1 not be necessary to show the name of the person from whom those goods were obtained. Section 5 Bond. An applicant for a distress goods wares, or merchandise sale shall tender with the application, a bond in the sum of One Thousand ($1,000.00) Dollars con- ditioned upon observance of this ordinance and for the indomni- . fioation of any purchaser at such sale who suffers a loss by reason of misreoreeentation. , III Section 6. Term of License. Al]. licenses issued for the sale of distressed goods shall be valid for a period of two months only unless renewed as hereinafter provided. Section 7 Renewal. At any time during the period of the license, application may be made to the City Manager showing that all goods in the original inventory have not been sold, accompani ©d by an inventory of the remaining unsold goods, and if it appears to the City Manager that undue hardship will result unless said license is not extended, he may extend and renew said license on a daily basis upon the payment of an additional license fee of Twenty-five Dollars per day, which license shall continue in effect only so long as said daily . 3 . • license fee is paid and the licensee shall comply with,the pro- 111 • visions of this Ordinance. Any, application for such a license under the provisions of this chapter covering any goods, wares or merchandise previously inventoried and licensed, shall be deemed to be an application for renewal under this section, • whether eresented by the original applicant or by any other person. Section 8. 222u12112121ps4anp9of_1icense0 No license shall be issued for distress goods, wares or merchandise, re- moval or cloeing out sale unless it shall appear that the appli- cant is in good faith, disposing of his stock for the purpose of retiring from business, Or unless he has suffered a fire or similar loss of substantial aMount within 30 days prior to the III date of such application, or unless the character of other or similar designated sale is based upon the foundation of fact or events which his announcement to the public regarding such sale is to be put forth as an inducement for patronage, or Unless he'la in a voluntary or involuntary bankrupt condition or unless he is removing his inventoried stock to a new location. Section 9. erf Goods. The license shall be valid only for the inventoried goods. 'Commingling of additional merchandise with that inventoried shall cause the merchandise inventoried to lose.its identity as distrese goode, and any such license issued shall cease to apply to the sale of such goods. If the inventoried stock shall be offered for sale on the same premises with other stock by the same person, firm or corporation, the same shall be deemed to be commingled. Section 10. Purchases with intent tb commi,71e. No per- son seeking a license shall secure goods, wares or merchandise prior to the application for a license for the purpose of com- mingling with the distress stock, and any unusual purchase or addition to stocks within 60 days prior to application for license shall be prima facie evidence that such purchase or addition was made for the purpose of commingling at such sale. For the purpose of this section, an unusual purchase or addition to stocks shall be considered a purchase or addition to stocks which exceeds by 20%, in dollar volume, any purchase within any 60-day period in the preceding two years before the sale. Section 11. Additional gaols. No person operating under • such a license shall add any goods to the inventoried stock and no goods shall be sold except that included in the original inventory. Each sale of goods not so inventoried shall consti- tute a separate offenee under this ordinance. Section 12. License Fee. The license fee for each sale of distress merchandise under this ordinance shall be and is hereby fixed in the sum of 525.00, plus $2.00 for each 11,000.00 or fraction thereof of the value of inventory submitted with the application of license. Section 13. Revocationof Licenses. The City Manager may revoke the license of any person found guilty of violating this ordinance and no new license shall be issued to such person within one year. 411 - 5 - Section 14. Wsection of premises. All premises used o for a licensed distress goods, wares and merchandise vale as herein before set forth shall at all times be open to inspection byany employee of the city required to enforce this ordinance in order to ascertain whether any infraction of the provisions . of this ordinance have taken place or is taking place therein. Section 15, salzellax. If any section, sub-section, subdivision, sentence, clause or phrase of this ordinance, is for any reason held to be unconstitutional or void or unlawful, such decision shall not affect the validity of the remainiry portions of this ordinance. Section 16. Violatioam_panalties. Any person violating any of the provisions of this ordinance shall be deemed guilty 411 of a misdemeanor and upon conviction thereof shall be punished by a fine of not more than $300.00 or by imprisonment in the city jail for not more than 90 days or by both such fine and imprisonment. Section 17. All ordinances or parts of ordinances in con flict herewith are hereby repealed, Section 18. This ordinance shall be in full force and effect thirty (30) days after its passage, approval and publication© ADOPTED BY THE CITY COUNCIL this LA% day of - 4960. 410 .62e5VACC=tclatvz,brwass...... ATTEST: • er — 6 -