Chapter 5.08
AUCTIONS
Sections:
5.08.010 License required—Purpose.
5.08.020 Exceptions—Public officers or pawnbrokers.
5.08.030 Operator license requirements.
5.08.040 Auctioneer license—Classes and fees.
5.08.060 History of business in city required.
5.08.070 Jewelry sale specifications.
5.08.080 Inventory statement with license application.
5.08.090 Correct representation of merchandise.
5.08.110 Licensee presence required during sale.
5.08.120 Observers during conduct of sales.
5.08.130 Merchandise identification requirements.
5.08.140 Adding to stock during sales.
5.08.150 November and December sales unlawful.
5.08.160 Auctioneer—False statements unlawful.
5.08.170 False statements and misrepresentations.
5.08.180 False bidders prohibited.
5.08.190 False bids or by-bidders prohibited.
5.08.010 License required—Purpose.
A. It is unlawful for any person, firm or corporation to sell or exhibit for sale by way of auction, except under and by virtue of legal process, any personal property without first obtaining the proper license therefor as hereinafter provided in this chapter, and any such auctioneer’s license granted hereunder shall not be assignable or transferable.
B. It is hereby declared the legislative intent that auction sales as defined in this chapter shall be held only to liquidate estates, businesses, and to avoid bankruptcy or the like, and shall not be permitted as established merchandising practice. (Ord. 117 N.S. § 1, 1950)
5.08.020 Exceptions—Public officers or pawnbrokers.
Nothing contained in this chapter shall apply to any public officer or officer of a court who, in pursuance of his duty as such officer, shall conduct within the city an auction sale pursuant to any law of the state, or of the United States of America, or order of court, nor to licensed pawnbrokers or loan companies selling or offering for sale unredeemed pledges or chattels in the manner provided by law, nor to the sale of livestock by auction. (Ord. 117 N.S. § 6, 1950)
5.08.030 Operator license requirements.
Every person, firm or corporation who for two years immediately preceding application has operated, managed or maintained a place of business in the city where goods, wares, merchandise or other personal property have been regularly sold, shall pay an auctioneer’s license fee of twenty dollars per day, payable in advance, and furnish the bond as hereinafter required. Each separate location shall have a separate license. (Ord. 117 N.S. § 2, 1950)
5.08.040 Auctioneer license—Classes and fees.
All other auctioneer’s license fees shall be of two classes, namely:
A. The first class, which shall be a daily license only, and for which the licensees shall pay the sum of one hundred fifty dollars per day in advance, and furnish the bond and official observer as hereinafter required, and such license shall authorize the holder thereof, subject to the provisions of this chapter and other ordinances of the city and laws of the state, to sell or offer for sale personal property at auction;
B. The second class, which shall be a yearly license, and for which the licensee shall pay the sum of one thousand dollars in advance, and furnish the bond and official observer as hereinafter required, and such license shall authorize the holder thereof, subject to the provisions of this chapter and of other ordinances of the city and laws of the state, to sell personal property at auction. (Ord. 117 N.S. § 3, 1950)
5.08.050 Bond requirements.
Each applicant for a license to conduct an auction shall post with the city clerk, prior to the issuance of such license, a cash or surety company or other bond satisfactory to the city clerk, in the sum of five thousand dollars, conditioned upon observance by the applicant of all the provisions of this chapter and upon the truth of all the representations made in connection with the application for a license and in the course of any auction sale, and as a guarantee that the purchase price of an article purchased will be returned to any purchaser upon the proof that any false or misleading statement or representation has been made concerning any personal property sold or offered for sale at any auction sale, or in such auction place of business. (Ord. 117 N.S. § 4, 1950)
5.08.060 History of business in city required.
No license shall be issued for conducting an auction sale to any person, firm or corporation who shall not for the period of two years next preceding such auction sale, have been continuously engaged in the city in the business of selling such merchandise at wholesale or retail. (Ord. 117 N.S. § 13, 1950)
5.08.070 Jewelry sale specifications.
A. When an auction sale relates to jewelry, it is unlawful for any person licensed hereunder to offer for sale by auction any article to which there is not attached a card or ticket or label containing a true and correct statement plainly written or printed in English, specifying the kind and quality of the metal of which such article is made or composed, or the percentage of karat or purity of such metals. If such articles are plated or overlaid, then the tag or label shall contain a true statement of the kind of plate.
B. When precious stones are for sale or sold by auction as such or as part of an article of jewelry, the written statement shall set forth the true name, weight and quality of such stone or stones. When imitations of precious or semiprecious stones are offered for sale or sold by auction as such or as part of an article of jewelry, such imitations shall be described or defined as synthetic or imitations of such stones as they purport to represent.
C. When watches and clocks are sold, the true names of the manufacturers shall be stated in writing, and no parts of the movements or mechanism thereof shall be substituted or contain false and misleading names or trademarks; neither shall secondhand or old movements be offered for sale in new cases without a true statement to that effect. Used and rebuilt watches should be so indicated.
D. Such tag or label shall remain securely attached to any such article or merchandise, shall be delivered to the purchaser as a true and correct description and representation of the article sold, and shall be deemed prima facie evidence of intent to defraud in case such written statement is not a true and correct description and representation of such articles sold. (Ord. 117 N.S. § 15, 1950)
5.08.080 Inventory statement with license application.
An applicant for a license for an auction sale shall file an application therefor with the city clerk not later than thirty days prior to the auction sale, to be licensed upon forms prescribed by the city clerk, which shall include, in addition to the name and address of the applicant and the location and time of the proposed auction sale, a sworn statement of the inventory on hand and the personal property to be offered at auction, the quality, quantity, kind or grade of each item, the wholesale market value thereof, and the name of the owner of such personal property proposed to be sold at the auction sale, and such other information as the city clerk shall prescribe. (Ord. 117 N.S. § 16, 1950)
5.08.090 Correct representation of merchandise.
Every auctioneer and every person, firm or corporation selling personal property at auction shall be deemed to warrant that all representations made in the course of such sale are true and correct, and that the purchase price of any articles purchased will be returned to any purchaser upon proof that any false or misleading statement or representation has been made concerning such personal property, or concerning the auction sale by the said auctioneer, or by any person, firm or corporation conducting, managing or carrying on such auction sale. (Ord. 117 N.S. § 7, 1950)
5.08.100 Hours of operation.
It is unlawful for any person, firm or corporation to conduct or open any place of business for auction sale between the hours of six p.m. of any day and eight a.m. of the following day, and on Sundays and on legal holidays. (Ord. 117 N.S. § 12, 1950)
5.08.110 Licensee presence required during sale.
The person to whom the license has been granted shall remain in continuos attendance at all times while such sale by auction is being conducted, and shall be responsible for any violation of the provisions of this chapter. (Ord. 117 N.S. § 19, 1950)
5.08.120 Observers during conduct of sales.
Each applicant for a license to conduct an auction sale shall permit and provide for an official observer, representing the city, to attend at all times during the auction sale for observation and investigation for the purpose of seeing that no personal property is sold except what is included in the inventory filed with the city clerk. The applicant shall pay to the official observer the sum of seven dollars and fifty cents per day, in advance, for each and every day such auction is held. (Ord. 117 N.S. § 5, 1950)
5.08.130 Merchandise identification requirements.
It is unlawful for any licensee licensed under this chapter to offer for sale by auction any personal property to which there is not attached a card or ticket or label containing a true and correct statement, plainly written or printed in English, specifying the kind and quality of such personal property; such tag or label shall remain securely attached thereto and shall be delivered to the purchasers as a true and correct description and representation of the article sold, and shall be deemed prima facie evidence of intent to defraud in case such written statement is not a true and correct description and representation of such articles sold. (Ord. 117 N.S. § 14, 1950)
5.08.140 Adding to stock during sales.
A. During such auction sale, no addition whatsoever shall be made to the stock of personal property set forth in the inventory attached to the application for license, and nothing shall be offered for sale or sold at any such sale by auction which is an addition to the stock of merchandise described in the inventory, or which has been added to the stock of merchandise described in the inventory, or which has been added to the applicant’s stock within a period of thirty days prior to the date the applicant filed application for license.
B. Under no circumstances shall the inventory offered for sale at auction exceed by fifty percent the average inventory carried by the applicant over the preceding five-year period. If the applicant has been in business less than five years, the inventory offered for sale at auction shall not exceed by fifty percent the average inventory carried for the period of time the applicant has been in business.
C. Any abnormal purchases during the year prior to the application for license shall be cause for refusal to issue the license, and it is unlawful for any person, firm or corporation to offer for sale or sell at any auction sale any personal property in addition to the stock listed and described in such inventory. (Ord. 117 N.S. § 17, 1950)
5.08.150 November and December sales unlawful.
It is unlawful for any person, firm or corporation to conduct or permit an auction sale during the months of November and December of any year. (Ord. 117 N.S. § 11, 1950)
5.08.160 Auctioneer—False statements unlawful.
It is unlawful for any auctioneer or any person, firm or corporation conducting, managing or carrying on any auction sale to make any false or misleading statement or representation, either verbally or in writing, concerning any article of personal property sold or proposed to be sold at such auction sale, or concerning such sale. (Ord. 117 N.S. § 8, 1950)
5.08.170 False statements and misrepresentations.
It is unlawful for any licensee, his agents or employees to make any statements which are false in any particular, or which have a tendency to mislead or to make any misrepresentations whatsoever with reference to any article sold or offered for sale during the auction. (Ord. 117 N.S. § 18, 1950)
5.08.180 False bidders prohibited.
It is unlawful for any auctioneer or any person, firm or corporation conducting, managing or carrying on an auction sale to use any person as a false bidder for the purpose of increasing the price of any article offered for sale at such auction. (Ord. 117 MS. § 9, 1950)
5.08.190 False bids or by-bidders prohibited.
It is unlawful for any person to make a false bid, or any other bid than a bona fide bid, at any auction sale, or to act as a by-bidder or what is commonly known as “capper,” “booster” or “shiller,” at any auction or place where personal property is sold, held or offered for sale at auction, or to offer or make false bids on any personal property held or offered for sale at such auction, or pretend to buy any personal property at any auction sale, in order to in any manner stimulate such sale by any deceit or misrepresentation in the making of bids or offers for the purchase of any personal property held or offered therein for sale. (Ord. 117 N.S. § 10, 1950)
5.08.200 Violation—Penalty.
Any violation of this chapter, or any section thereof, shall be punishable by a fine not to exceed the sum of five hundred dollars or by imprisonment not to exceed six months, or by both such fine and imprisonment. (Ord. 117 N.S. § 20, 1950)