Chapter 5.26
CLOSING OUT SALES

Sections:

5.26.010    Definitions.

5.26.020    License required.

5.26.030    Use of certain words without license prohibited.

5.26.040    Application for license.

5.26.050    Bond.

5.26.060    Term of license.

5.26.070    Renewal.

5.26.080    Requisites to issuance of license.

5.26.090    Commingling of goods.

5.26.100    Purchase with intent to commingle.

5.26.110    Additional goods.

5.26.120    License fee.

5.26.130    Revocation of license.

5.26.140    Inspection of premises.

5.26.150    Severability.

5.26.010 Definitions.

(a)    “Distress goods, wares or merchandise sale,” as used in this chapter, includes 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 and merchandise advertised as damaged by fire, smoke, water or otherwise; or a sale of goods, wares and merchandise, advertised as obtained by, through, as a result of, or by reason of, any of the above named situations or contingencies.

(b)    “Removal sale,” as used in this chapter, means 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.

(c)    “Closing out sale,” as used in this chapter, means 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. (Ord. 114 § 1, 1960).

5.26.020 License required.

Except as to sales under judicial process, it shall be unlawful for any person to hold any sale defined in YMC 5.26.010, or to advertise, represent or hold out that any sale of goods, wares or merchandise is a sale of distress goods, wares or merchandise or is a removal 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 chapter. The license required under this chapter is separate from and in addition to the business license issued under Chapter 5.52 YMC, which may also be required when applicable. (Ord. 2020-006 § 4, 2020: Ord. 114 § 2, 1960).

5.26.030 Use of certain words without license prohibited.

Except as to sales under judicial process, 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,” “administrators,” or words of similar import to denote the type or kind of sale, unless same is a bona fide distress 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 chapter. (Ord. 114 § 3, 1960).

5.26.040 Application for license.

In addition to the general application form to be filed with the code administration manager as provided in this chapter, 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 contemplated sale, the reasons for such sale, and an inventory showing actual purchase price, names of persons from whom the goods were obtained, date of delivery to the applicant, and all details 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, and it shall not be necessary to show the name of the person from whom those goods were obtained. (Ord. 93-74 § 3, 1993: Ord. 114 § 4, 1960).

5.26.050 Bond.

An applicant for a distress goods, wares or merchandise sale shall tender with the application, a bond in the sum of one thousand dollars conditioned upon observance of this chapter and for the indemnification of any purchaser at such sale who suffers a loss by reason of misrepresentation. (Ord. 114 § 5, 1960).

5.26.060 Term of license.

All licenses issued for the sale of distressed goods shall be valid for a period of two months only, unless renewed as hereinafter provided. (Ord. 114 § 6, 1960).

5.26.070 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, accompanied 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 the daily license fee is paid and the licensee shall comply with the provisions of this chapter. 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 presented by the original applicant or by any other person. (Ord. 114 § 7, 1960).

5.26.080 Requisites to issuance of license.

No license shall be issued for distress goods, wares or merchandise, removal or closing out sale unless it shall appear that the applicant 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 thirty days prior to the date of such application, or unless the character of other or similar designated sales 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 is in a voluntary or involuntary bankrupt condition or unless he is removing his inventoried stock to a new location. (Ord. 114 § 8, 1960).

5.26.090 Commingling of 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 distress goods, 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. (Ord. 114 § 9, 1960).

5.26.100 Purchase with intent to commingle.

No person seeking a license shall secure goods, wares or merchandise prior to the application for a license for the purpose of commingling with the distress stock, and any unusual purchase or addition to stocks within sixty 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 twenty percent, in dollar volume, any purchase within sixty-day period in the preceding two years before the sale. (Ord. 114 § 10, 1960).

5.26.110 Additional goods.

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 constitute a separate offense under this chapter. (Ord. 114 § 11, 1960).

5.26.120 License fee.

The license fee for each sale of distress merchandise under this chapter shall be and is hereby fixed in the sum of fifty-five dollars, plus five dollars for each one thousand dollars or fraction thereof of the value of inventory submitted with the application for license. (Ord. 1880 § 11, 1975: Ord. 1195 § 16, 1969: Ord. 114 § 12, 1960).

5.26.130 Revocation of license.

The city manager may revoke the license of any person found guilty of violating this chapter and no new license shall be issued to such person within one year. (Ord. 114 § 13, 1960).

5.26.140 Inspection of premises.

All premises used for a licensed distress goods, wares and merchandise sale as hereinbefore set forth shall at all times be open to inspection by any employee of the city required to enforce this chapter in order to ascertain whether any infraction of the provisions of this chapter has taken place or is taking place therein. (Ord. 114 § 14, 1960).

5.26.150 Severability.

If any section, subsection, subdivision, sentence, clause or phrase of this chapter, is for any reason held to be unconstitutional or void or unlawful, such decision shall not affect the validity of the remaining portions of this chapter. (Ord. 114 § 15, 1960).