§ 1201. PERMIT FROM CHIEF OF POLICE - PROCEDURE - BOND.

Before receiving or acting upon any application for the granting of a permit to merchandise by means of public outcry any of the personal property described in Section 1200, the Chief of Police shall require:

First, the payment of an application fee.

Second, an application filed by the applicant, showing that the said applicant it to conduct his merchandising by public outcry activities at a fixed address. Said application for a permit must be signed by the applicant. If the applicant is a partnership, it must be signed by all members of the partnership; if application is a corporation, it must be signed by a duly authorized officer on behalf of the corporation. Where the applicant is a corporation or a partnership, the application must contain the names and addresses of all the corporation officers, or the partners, as the case may be. The said application shall be verified by the applicant. If the applicant is a partnership, the application shall be verified by a partner; if the applicant is a corporation, it shall be verified by one of its officers.

Third, the application shall be published one day a week for four consecutive weeks in a newspaper of general circulation in the City and County of San Francisco. The applicant shall cause to be posted a notice of intention to merchandise any or all of the articles mentioned in Section 1200 by means of public outcry on the premises for which application for a permit is sought for a period of 30 days prior to issuance of any said permit. The notice shall be posted in two conspicuous places on said premises so as to be visible from the sidewalk for a distance of at least 50 feet therefrom.

Fourth, every applicant at the time of making said application, and every person, firm or corporation who has heretofore been engaged and hereafter engages in merchandising by public outcry any or all personal property mentioned in Section 1200, shall file, within 30 days hereafter, and thereafter maintain, a bond in the sum of $10,000, which said bond shall run to the City and County of San Francisco and to any person, firm or corporation who shall sustain any injury covered by said bond. Such bond shall be executed by the person, firm or corporation seeking the permit hereunder as principal and by a corporation which is licensed by the Insurance Commissioner of this State to transact the business of fidelity and surety insurance as surety, or in lieu of said surety corporation bond, applicant may deposit either in cash or United States government bonds of the current market value in the sum of $10,000. The bond shall be conditioned that the principal will indemnify any and all persons, firms or corporations for any loss suffered by the misrepresentations of the principal as to the quality or worth of the goods offered for sale, lack of title to any of the said goods, breach of warranty of the merchantability or quality of any of the goods sold, or for falsely representing that the goods sold were part of stock in trade damaged by fire or the closing out of stock in trade of applicant or some other person, firm or corporation. Said bond shall, furthermore, be conditioned that said obligor herein will conform to and abide by the provisions of the San Francisco Municipal Code regulating merchandising by public outcry. Said bond shall not be void on the first recovery, but may be sued and recovered on from time to time by any persons aggrieved until the whole penalty is exhausted. Such bond shall remain in full force and effect until the permit of the principal is revoked or until the bond is canceled by the surety. The surety may cancel said bond and be relieved of further liability for causes of action arising thereafter by giving 15 days' written notice to the Chief of Police of the City and County of San Francisco and to the obligor at his last known place of business. The total aggregate liability on said bond shall be limited to $10,000. Any person, firm or corporation who sustains an injury covered by said bond may, in addition to any other remedy that he may have, bring an action in his own name on the bond for the recovery of any damage sustained by him; provided, however, that no such action may be brought and maintained after the expiration of one year from the time of the occurrence of any such alleged dishonest act or any breach of condition of said bond.

Fifth, such application shall be accompanied by the signature of three resident freeholders, certifying to the good moral character and reputation of the applicant and of the person or persons making said application. At the time of filing such application, the applicant and all persons directly or indirectly interested in the permit if granted, including the members of any firm or copartner and the officers of any corporation, shall be fingerprinted by the Police Department, and if any such person shall be found to have a prior criminal record of committing any felony, theft, obtaining money or property by false pretense, embezzlement or violating any of the provisions of this Article or any other law regulating merchandising by public outcry, the application for such permit shall be denied.

(Amended by Ord. 555-81, App. 11/12/81)