Chapter 5.12
AUCTIONS AND CLOSING OUT SALES
Sections:
5.12.020 Permit – Required – Classifications.
5.12.030 Permit – Application – Requirements generally.
5.12.040 Permit – Application – Class B.
5.12.050 Permit – Application – Class C.
5.12.060 Permit – Application – Investigation required.
5.12.070 Permit – Bond required.
5.12.100 Auction – Goods, wares and merchandise.
5.12.120 Auction – Tagging requirements – Statement of sales required by police.
5.12.130 Auction – Announcement of terms and conditions of sales.
5.12.140 Auction – Invoice and warranties of articles sold.
5.12.150 Auction – Prohibitions.
5.12.160 Closing out sales – Application requirements.
5.12.170 Closing out sales – Limitation on number and duration.
5.12.180 Sales exempt from application of chapter.
5.12.190 Business license requirements.
5.12.010 Definitions.
When used in this chapter:
“Auction” means a public sale of property by public outcry to the highest bidder.
“Auction house” means a fixed place wherein goods, wares, merchandise, or other items of personal property, new or used, are offered for sale at auction as an established auction business.
“Auctioneer” includes and comprehends the following:
1. Any person who shall sell or offer to sell by public outcry to the highest bidder, when bids are called for, any goods, wares, merchandise, or other personal property, new or used, in any tent, building or structure, or on any of the streets or sidewalks, or in any other place in the city, where the general public is permitted to attend and offer bids;
2. Any person who shall advertise himself as a public auctioneer, or in any manner hold himself out as an auctioneer, as defined in subsection (1) of this definition, for public patronage, or shall receive a fee or commission for services as such;
3. Any auctioneer, as defined in subsection (1) of this definition, whose business is limited exclusively to auctioning real estate and whose permanent place of business is within the city. (Ord. 589 § II(13), 1981; Ord. 3, 1954; prior code § 5-101)
5.12.020 Permit – Required – Classifications.
The following permits are required for the following classes established for licensing auctioneers, auctions, and auction houses:
A. Class A permits, every auctioneer;
B. Class B permits, every person, firm, corporation, or association that sells or offers for sale at auction any real estate, or interest therein, or any goods, wares, merchandise, or other personal property, new or used, at any place other than an auction house;
C. Class C permits, any person, firm, corporation, or association that operates an auction house. (Ord. 3, 1954; prior code § 5-102)
5.12.030 Permit – Application – Requirements generally.
Each application for a permit shall be verified under oath and be filed with the city clerk. Each applicant shall specify therein the length of his residence in the city, the location of his last place of business, the name and character of such business, the length of time he was engaged therein, and the names and addresses of three persons residing within the county as references. (Ord. 3, 1954; prior code § 5-103)
5.12.040 Permit – Application – Class B.
In addition to the information specified in SMC 5.12.030, each application for a Class B permit shall also specify the store or place in the city where the applicant proposes to conduct an auction, the owner or owners, and the character of the property to be sold. A separate permit shall be required for each Class B auction. (Ord. 3, 1954; prior code § 5-105)
5.12.050 Permit – Application – Class C.
In addition to the information specified in SMC 5.12.030, each application for a Class C permit shall also specify the location of the place of business in the city where the applicant proposes to conduct an auction house. Each applicant for a Class C permit shall pay the sum of one hundred dollars to the city at the time of making an original application, which sum of one hundred dollars shall be used by the city as compensation for making an investigation of the statements and references contained in the application, and it shall be the duty of the city, after the application and the bond referred to in SMC 5.12.070 have been filed, to make a careful and thorough investigation of the statements and references contained in the application. The payment of the sum of one hundred dollars shall be required only upon the making of an original application by each applicant of a Class C permit and shall not apply to an application for a renewal of the permit. (Ord. 1044 § 2, 2017; Ord. 3, 1954; prior code § 5-106)
5.12.060 Permit – Application – Investigation required.
Investigations required by SMC 5.12.050 and 5.12.160 shall be made by the chief of police at the request of the city clerk and no permit shall be issued by the city clerk until the chief of police has completed his investigation and reported that the statements in the application comply with the provisions of this chapter. (Ord. 3, 1954; prior code § 5-119)
5.12.070 Permit – Bond required.
Each application for a Class A or Class B permit under this chapter must be accompanied by a bond in the principal sum of two thousand five hundred dollars, the form of which shall be approved by the city attorney, with one or more sureties thereon, to be approved by the city clerk. The condition of each bond must be substantially such that the principal therein named will faithfully conform to each and all ordinances of the city and each and all of the laws of the state, whether then in force or which may hereafter be adopted, relating to the auctions or the business of auctioneers, or the prevention of fraudulent practices in general. The bond shall provide that the principal and the surety or sureties named in the bond and their heirs, executors, administrators, successors and assigns shall be jointly and severally bound unto the city and unto any and every person aggrieved or damaged by breach of the condition of the bond, and said bond shall provide that the bond shall not be void upon the first recovery, but may be sued and recovered upon from time to time, by the city or by any person aggrieved or damaged, in his own name, until the whole penalty is exhausted and the life of the obligation of such bond shall be made such that it will continue for such length of time as such permit remains in force and effect. In the event a person holds a permit in more than one class as provided in this chapter, the posting of one bond shall be deemed sufficient to cover all classes of auction permits held by such person. (Ord. 3, 1954; prior code § 5-107)
5.12.080 Permit – Issuance.
Upon the approval of any application referred to in SMC 5.12.030 through 5.12.050, the permit shall be issued. If the permit is a Class B or Class C permit, it shall designate the store or other place in the city where the applicant proposes to conduct an auction or auctions. Class A or Class C permits shall be annual permits. (Ord. 3, 1954; prior code § 5-108)
5.12.090 Permit – Fees.
The annual fee for a Class A permit is the sum of one hundred dollars. The fee for each Class B permit is twenty-five dollars per day. The annual fee for Class C permit is one hundred dollars. The annual permit fees shall be due on January 1st and delinquent on February 1st. (Ord. 3, 1954; prior code § 5-117)
5.12.100 Auction – Goods, wares and merchandise.
No auction shall be conducted by any person other than one holding a Class A permit. Where the sale of any goods, wares or merchandise or other personal property, new or used, is by auction other than at an auction house, such sale shall be held on successive days, Sundays and legal holidays excepted, and shall not continue for more than thirty days; provided, that where such goods, wares, merchandise, or other personal property, new or used, is the stock on hand of a person, firm, corporation or association which is bona fide, disposing of such stock for the purpose of retiring from business, the city council may upon application grant such additional time for the conduct of such auction as it may deem necessary under the circumstances. (Ord. 3, 1954; prior code § 5-109)
5.12.110 Auction – Jewelry.
A. It is unlawful for any person, firm, corporation or association to sell, dispose of, or offer for sale, or cause or permit to be sold, disposed of or offered for sale, at auction in the city limits of the city, any platinum, gold, silver, plated ware, precious stones, semiprecious stones, watches or other jewelry, new or used, whether the same shall be the property of the person, firm, corporation or association, or the property of another; provided, however, that the foregoing provisions of this section shall not apply to the following:
1. The sale at auction of the stock on hand of any person, firm, corporation or association that, for the period of one year next preceding such sale, shall have been continuously in business in the city as a retail or wholesale merchant of platinum, gold, silver, or plated ware, precious stones, semiprecious stones, watches, or other jewelry, new or used, where such person, firm, corporation, association is bona fide, disposing of its stock on hand for the purpose of retiring from business;
2. The sale at auction of such stock on hand of any person, firm, corporation or association as described in subsection (A)(1) of this section, where the stock has been purchased by a holder of a Class C permit under this chapter.
B. No sale at auction of platinum, gold, silver, plated ware, precious stones, semiprecious stones, watches or other jewelry, new or used, shall be held between six p.m. and eight a.m. (Ord. 3, 1954; prior code § 5-111)
5.12.120 Auction – Tagging requirements – Statement of sales required by police.
A. It is unlawful for any person, firm, corporation or association to offer for sale or sell, either for itself or for another, at auction any article of platinum, gold, silver, plated ware, precious stones, semiprecious stones, watches or other jewelry, new or used, unless there is securely attached to the article so offered for sale, or sold, a tag, card, or label upon which shall be plainly written or printed in English a true and correct statement of the kind and quality of the material or materials of which the article is composed; and, in case such article is an article of metal jewelry, such statement shall contain a true and correct statement of the kind and quality and/or weight of the metal of which the article is made or composed and the percentage or carat of purity of such metal or article; and, in case such article is plated or overlaid, then such statement shall contain a true statement of the kind and the percentage of purity of such plate, and the kind of metal or material covered; and, in case such article is a precious stone or semiprecious stone, such statement shall contain the true name, weight, quality, color and fineness of the stone; and, in case such article is a watch, such statement shall contain the true name of the manufacturer thereof; and, in case any used movement or substitute part of movement of any watch is offered for sale in a new case, such fact shall be set forth in the statement; and, in the event that any auction sale has been advertised as offering such articles from a designated or named estate or source, then the tag or label on the article shall state the designated or named estate or source from which that particular article was obtained; and no such article so sold or offered for sale shall bear any false, misleading name, description or entry thereon; and it shall be deemed prima facie evidence of intent to defraud or violate the provisions of this chapter where such article so sold or offered for sale fails to compare with the description indicated on the tag, card, or label as hereinbefore provided. Such tag, card or label shall remain securely attached to any such article so sold or offered for sale, and shall be delivered to the purchaser by the person, firm, corporation or association so selling the same as a correct description and representation of the article so sold. In case there are more than one of the same kind of article to be sold, then such tag, card or label shall indicate the chronological number of the respective articles of the same class so sold.
B. The auctioneer conducting the sale must at the end of every twenty-four hours deliver or mail to the chief of police of the city an itemized statement of all sales of such articles made by him during the preceding twenty-four-hour period. This itemized statement shall be subscribed by the auctioneer conducting the sale and any false statement submitted by the auctioneer to the chief of police shall be deemed sufficient cause for the suspension or revocation of his license. (Ord. 3, 1954; prior code § 5-112)
5.12.130 Auction – Announcement of terms and conditions of sales.
It shall be the duty of every auctioneer each day at the beginning of an auction in the city to fully state the terms and conditions upon which the sale or sales will be made, and such buyer must settle for any article so purchased within a specified period of time after the purchase not to exceed twenty-four hours. (Ord. 3, 1954; prior code § 5-113)
5.12.140 Auction – Invoice and warranties of articles sold.
It shall be the duty of the person, firm, corporation or association whose merchandise is being sold at auction to give each and every purchaser of an article, the selling price of which amounts to the sum of one dollar or more, an invoice, containing a full description of the article, the selling price thereof, together with a statement giving each and every warranty under which the article was sold. Duplicate copies of the invoice shall be kept for one year by such person, firm, corporation or association. (Ord. 3, 1954; prior code § 5-114)
5.12.150 Auction – Prohibitions.
It is unlawful for any person, firm, corporation or association selling property at auction or conducting or assisting in carrying on or conducting an auction:
A. To knowingly and intentionally make any statement which is false in any particular, or which has a tendency to mislead any person present, or to make any misrepresentation whatsoever or at all, as to the quality or quantity or character or present condition or value or cost or general selling price of any property, whether new or used;
B. To have or employ or permit any person to be or take part in, or for any person to act as a capper or by-bidder, booster or puffer, or to make any fictitious or fraudulent bid, or bid not made in good faith or not intended to be consummated by a sale;
C. To offer or attempt to dispose of any property at any auction in blind packages or any property not at the time actually exhibited to public view, or to the view of the person bidding on the same;
D. To offer or attempt to dispose of goods, wares, or merchandise at an auction between six p.m. and eight a.m., unless such goods, wares or merchandise have been on display during the daylight hours of the business day preceding such sale;
E. To refuse, fail, or neglect to deliver complete and immediate possession to the purchaser of any property upon the payment of the purchase price thereon, in accordance with the terms of the sale;
F. To substitute any article in lieu of the article offered to and purchased by the bidder, except with the bidder’s knowledge and consent;
G. To sell or offer for sale at auction any property whatsoever without having a valid and unrevoked permit or permits, as required by this chapter. (Ord. 3, 1954; prior code § 5-115)
5.12.160 Closing out sales – Application requirements.
Any person, firm, corporation or association intending to dispose of its stock on hand by sale at retail or wholesale, whether the sale is to be conducted at auction or otherwise, which sale is to be advertised or publicly announced as a “closing out sale,” a “going out of business sale,” a “quitting business sale,” or a similar type of sale, must make a written application verified under oath to the city clerk at least fifteen days before that intended sale is to begin, which application shall specify the name and address of the applicant, the location and purpose of the sale and its expected duration, the name of the auctioneer, if any, who shall conduct the sale, and inventory itemizing in detail the quality, quantity, kind or grade of each item of goods, wares and other articles to be sold, with the wholesale market value thereof, and shall include a declaration that the merchandise or property to be sold at auction or otherwise is a bona fide part of the applicant’s stock in trade, that the items listed in the inventory do not exceed by twenty-five percent the unit volume of the inventory carried by the applicant ninety days prior to the application. Any inventory in excess of the foregoing shall be cause for refusal to issue any permit; provided further, that whenever the stock on hand to be sold at auction, or otherwise, as described in this section, is a stock of jewelry as described in SMC 5.12.110, then in that event the application required by this section shall be accompanied by the sum of one hundred dollars, which sum shall be used by the city for the purpose of making an investigation of the statements and inventory contained in the application. (Ord. 222, 1961; Ord. 176, 1959; Ord. 3, 1954; prior code § 5-110(a))
5.12.170 Closing out sales – Limitation on number and duration.
All closing out sales or similar sales shall be limited in time to not more than ninety calendar days from the date of issuance of the permit therefor. No person, firm, corporation or association may conduct more than one such sale during any one-year period. For the purposes of this section, any form of organization in which a natural person holds a fifty percent or greater interest shall be deemed to be the same person and shall be limited in the number of sales it may hold. (Ord. 222, 1961; prior code § 5-110(b))
5.12.180 Sales exempt from application of chapter.
Nothing contained in this chapter shall apply to the following:
A. Judicial sales;
B. Sales by executors or administrators;
C. Sales made upon execution or by virtue of any other process issued by a court;
D. Sales made by any public officer in his official capacity required to be made under the laws of the United States or of the state or under the ordinances of the city;
E. Sales of livestock;
F. Sales of property by any social organization for the purpose of raising funds to promote or further its objects, or for any public purpose whatsoever;
G. Sales conducted under the provisions of the Uniform Warehouse Receipts Act;
H. Sales made under a nonstatutory assignment for the benefit of creditors generally, which sale shall be conducted by an auctioneer licensed pursuant to this chapter, where the sale is limited to the stock in trade and fixtures on the premises in the city at the time of the assignment and where the sale is held on the premises;
I. Sales made on behalf of licensed pawnbrokers or unredeemed pledges in the manner provided by law. (Ord. 3, 1954; prior code § 5-116)
5.12.190 Business license requirements.
The requirements of this chapter for permits shall be in addition to and not in lieu of the requirements of business license tax under the provisions of the municipal code of the city. (Ord. 3, 1954; prior code § 5-118)