§ 255.


Every transient merchant as defined in Section 251 of this Article that is required to obtain a license under Section 250 of this Article shall file with the Tax Collector a bond in the sum of $5,000 before any license shall be issued, which shall run to the City and County of San Francisco and to any person, firm or corporation who shall sustain any injury or loss covered by the bond. Such bond shall be executed by the applicant as principal, and by a corporation or association which is licensed by the Insurance Commissioner of this State to transact the business of fidelity and surety insurance, as surety.

The bond shall be conditioned that the applicant shall comply fully with all the provisions of the ordinances of the City and County and laws of the State of California regulating and concerning the sales of goods, wares and merchandise and will pay all judgments rendered against said applicant for any violation of said ordinances or statutes, or any of them, together with all judgments and costs that may be recovered against applicant by any person or persons for damage growing out of any misrepresentation or deception practiced on any person transacting such business with such applicant, whether said misrepresentations or deceptions were made or practiced by the owners or by their agents, servants or employees, either at the time of making the sale or through any advertisement of any character whatsoever printed or circulated with reference to the goods, wares and merchandise sold, or any part thereof.

The City and County may bring an action upon the bond for the recovery of any damage sustained by it, and also any person, firm or corporation who sustains any injury or loss covered by the bond may, in addition to any other remedy that he may have, bring an action in his own name upon 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 and after the date the alleged act complained or occurred.

The aggregate liability of the surety for any and all claims which may arise under such bond shall in no event exceed the amount of the penalty of such bond regardless of the length of time it shall remain in force or the number of renewal licenses issued thereunder.


(Added by Ord. 226-61, App. 8/7/61; amended by Ord. 99-00, File No. 000437, App. 5/26/2000)


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