Chapter 5.08 AUCTIONEER

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, and any such auctioneer’s license granted hereunder shall not be assignable or transferable. It is declared the legislative intent that auction sales as herein defined 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. 229 § 1, 1955).

5.08.020 License – Fee.

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 $5.00 per day, payable in advance, and furnish the bond as hereinafter required. Each separate location shall have a separate license. (Ord. 229 § 2, 1955).

5.08.030 License – Types.

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 licensee shall pay the sum of $25.00 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 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 quarterly license, and for which the licensee shall pay the sum of $300.00 per quarter, or fraction thereof, 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 personal property at auction. (Ord. 229 § 3, 1955).

5.08.040 License – Bond.

Each applicant for a license to conduct an auction shall post with the office of the city clerk prior to the issuance of such license a cash or surety company or other bond satisfactory to the office of the chief of police in the sum of $5,000, conditioned upon observance by applicant of all the provisions of this chapter and upon the truth of all of 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 any 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 the auction place of business. (Ord. 229 § 4, 1955).

5.08.050 Official observer required.

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 office of the city clerk. The applicant shall pay to the official observer the sum of $10.00 per day, in advance, for each and every day such auction is held. (Ord. 229 § 5, 1955).

5.08.060 Exceptions.

Nothing herein contained shall apply to any public officer or officer of a court who in pursuance of his duty as such officer conducts within the city an auction sale pursuant to any law of the state of California, 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. 229 § 6, 1955).

5.08.070 Truthful representation warrant required.

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 the personal property, or concerning the auction sale by the auctioneer, or by any person, firm or corporation conducting, managing or carrying on the auction sale. (Ord. 229 § 7, 1955).

5.08.080 Misrepresentation 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 the sale. (Ord. 229 § 8, 1955).

5.08.090 False bidder unlawful.

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 the auction. (Ord. 229 § 9, 1955).

5.08.100 By-bidding unlawful.

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 sales by any deceit or misrepresentation in the making of bids or offers for the purchase of any personal property held of offered therein for sale. (Ord. 229 § 10, 1955).

5.08.110 Bell ringing unlawful.

It is unlawful for any auctioneer, person, firm or corporation to ring a bell or cause or permit the same to be rung in or about the front of the premises where there is conducted an auction sale, before, after, or during such sale. (Ord. 229 § 11, 1955).

5.08.120 Music to attract the public unlawful.

It is unlawful for any person, firm or corporation to solicit or permit the soliciting by music, singing or loud noises to be made or done for the purpose of attracting the public to or of an auction sale. (Ord. 229 § 12, 1955).

5.08.130 Sale during month of December unlawful.

It is unlawful for any person, firm or corporation to conduct or permit an auction sale during the month of December of any year. (Ord. 229 § 13, 1955).

5.08.140 Hours of business.

It is unlawful for any person, firm or corporation to conduct or open any place of business for auction sale between the hours of 6:00 p.m. of any day and 8:00 a.m. of the following day, on Sundays or legal holidays. (Ord. 229 § 14, 1955).

5.08.150 License – Issuance restrictions.

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. 229 § 15, 1955).

5.08.160 License – Violators – Issuance restrictions.

No license shall be issued to any person who has been convicted of violating any of the provisions relating to auction sales for a period of five years after such conviction. (Ord. 229 § 16, 1955).

5.08.170 Personal property – Tag or label required.

It is unlawful for any licensee licensed hereunder 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; the tag or label shall remain securely attached thereto and 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 the written statement is not a true and correct description and representation of such articles sold. (Ord. 229 § 17, 1955).

5.08.180 Jewelry – Identification requirements.

When the 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 the articles are plated or overlaid, then the tag or label shall contain a true statement of the kind of plate. When precious stones are for sale or sold by auction as such or part of an article of jewelry, such written statement shall set forth the true name, weight and quality of such stone or stones. When semiprecious stones are offered for sale or sold by auction as such or as part of an article of jewelry, such written statement shall set forth the true name of said 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, the imitations shall be described or defined as synthetic or imitations of such stones as they purport to represent. 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 the effect. Used and rebuilt watches must be so indicated. 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 true and correct description and representation of such articles sold. (Ord. 229 § 18, 1955).

5.08.190 License – Application.

An applicant for a license for an auction sale shall file an application therefor with the office of the city clerk not later than 30 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. 229 § 19, 1955).

5.08.200 Additions unlawful.

During the 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 30 days prior to the date the applicant filed application for license. Under no circumstances shall the inventory offered for sale at auction exceed by 50 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 50 percent the average inventory carried for the period of time applicant has been in business. 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 the inventory. (Ord. 229 § 20, 1955).

5.08.210 Percentage of personal property sold.

It is unlawful to sell or offer for sale at auction personal property which exceeds by 50 percent the average inventory carried by the person, firm or corporation during the preceding five-year period. Any abnormal purchases during one year prior to the application for license for an auction sale shall be cause for refusal to issue license therefor. (Ord. 229 § 21, 1955).

5.08.220 False statements unlawful.

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. 229 § 22, 1955).

5.08.230 Continuous attendance required.

The person to whom the license has been granted shall remain in continuous attendance at all times while such sale by auction is being conducted, and shall be responsible for any violation of the provisions of the foregoing sections. (Ord. 229 § 23, 1955).

5.08.240 Charitable organizations.

The provisions of this chapter shall not be deemed or construed to apply to any church, service club, veterans’ organization, civic or other charitable organization which is maintained and conducted within the city wherein the proceeds from the sale or auction are used for religious, civic, charitable or benevolent purposes within the city. Any such organization must make application to the city, without the payment of any fees, and the city council, at its sole discretion, shall determine whether or not the organization meets the qualifications above set forth. In the event that a determination by the council is made that the applicant meets the qualifications, a permit for the conducting of the auction sale shall be granted and the institution or organization need not pay any fees or be subject to the restrictions above set forth. (Ord. 229 § 26, 1955).