26-IV AUCTIONS AND AUCTIONEERS

ARTICLE IV. AUCTIONS AND AUCTIONEERS

DIVISION 1. GENERALLY

26-151—26-175 Reserved.

DIVISION 2. AUCTIONS

Subdivision I. In General

26-176 Definitions.

The following words, terms and phrases, when used in this division, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

Auction sale means the offering for sale or selling of real or personal property to the highest bidder, or offering for sale or selling of real or personal property at a high price and then offering the property at successive lower prices until a buyer is secured.

(Code 1985, § 8-19)

Cross reference—Definitions generally, § 1-2.

26-177 Jewelry and specified articles.

If the auction sale is of platinum, gold, silver, plated ware, precious or semiprecious stones, watches or other jewelry, each article sold shall have securely attached to it a tag or label. The tag shall be plainly written or printed in English and contain a true and correct statement of:

(1) The kind and quality of the metal of which such article is made or with what it is plated;

(2) The true names, weight, quality and color of any precious or semiprecious stone or stones; and

(3) If ascertainable, the true name of the manufacturer of the article.

(Code 1985, § 8-23)

26-178 Prohibited activities.

The following acts, omissions and practices in connection with auction sales shall be prohibited:

(1) The use of deceit, fraud or misrepresentation in the sale or offering for sale of any property;

(2) The substitution of another article for that bid upon by the prospective purchaser;

(3) The use of false bidders, cappers, boosters, puffers or shillers;

(4) The use of bells, buzzers, ballyhoo, loudspeakers or any variety of mechanical or vocal sound directed outside of the sales building;

(5) The use of any false or misleading advertising matter;

(6) A sale by a person other than the licensed auctioneer;

(7) Making any false statement as to the previous history or character of the property being offered for sale; and

(8) Offering property for sale which has once been struck off to the highest bidder.

(Code 1985, § 8-27)

26-179 Use of public places prohibited.

No auction sale shall be conducted on any street, sidewalk or other public place.

(Code 1985, § 8-28)

26-180 Exceptions to division.

The provisions of this division shall not apply to sheriffs, constables or other public or court officers, or to any person acting under the license, direction or authority of any state or federal court, selling property in the course of their official duties or to any person selling property under and by virtue of any state or federal statute.

(Code 1985, § 8-29)

26-181—26-210 Reserved.

Subdivision II. License

26-211 Required.

No auction sale of real or personal property shall take place in any building within the corporate limits of the city unless an auction license has been obtained from the city council for each and every building in which an auction is to be held.

(Code 1985, § 8-20)

26-212 Application; contents.

(a) Any person desiring to sell, dispose of or offer for sale any real or personal property at auction shall, at least 30 days prior to any single proposed auction sale, or at least 30 days prior to the opening and commencement of any auction business on a continuing or any other basis, file with the administrator a duly verified written application.

(b) The application required by this section shall state the following facts:

(1) The name, residence and post office address of the applicant, and if a firm or corporation, the name and post office addresses of the members of the firm or officers of the corporation, as the case may be;

(2) The address at which the auction sale will be conducted;

(3) The name, residence and post office address of the auctioneer who will conduct such sale;

(4) If it is proposed to conduct a sale under a single sale auction license of property on hand at the time of application, then the applicant shall submit with his application a detailed inventory of all property to be offered for sale, including an identifying number for each item and an aggregate valuation thereof;

(5) If it is proposed to conduct an auction sale on any other basis than a single sale of property on hand at the time of application, then the applicant shall submit a statement covering the kind and nature of property to be offered for sale and a fair estimate of the average value of property to remain on hand for sale from day to day;

(6) Whether the sale will be with or without reserve;

(7) That all taxes which have become a lien on such property have been paid;

(8) The number of days the sale is to continue;

(9) The hours of the sale each day;

(10) That no property other than that listed will be sold or offered for sale at such auction sale;

(11) That the applicant expressly agrees that the proper city officials and agents for governmental regulatory agencies may enter upon and inspect any portion of the licensed premises at all times that sales are being conducted and at all other reasonable times to enforce compliance with applicable statutes, ordinances, rules and regulations; and

(12) That the applicant expressly agrees not to discriminate against any person in the enjoyment of his civil rights because of religion, race, color or national origin.

(Code 1985, § 8-21)

26-213 Sale without reserve.

Where the license applied for is to be issued under section 26-215(1), the sale shall be conducted without reserve in the manner provided in section 2328 of Act No. 174 of the Public Acts of Michigan of 1962 (MCL 440.1101 et seq.), as amended. In a sale without reserve a minimum bid may be required, and if no bid is received within a reasonable time, the item may be withdrawn from the sale.

(Code 1985, § 8-22)

26-214 Auction bond.

At the time of filing an application for an auction license, the applicant shall execute and file with the administrator a surety bond written by a surety company, licensed to do business in the state, in an amount of not less than the value of the property, in the case of a sale of property on hand at the time of application under a single sale auction license, or the average value of the property to remain on hand for sale from day to day, in the case of sale on any other basis, as shown by the inventory filed, or such value as determined by the city assessor, whichever is the larger. In no case shall the auction bond be less than $1,000.00 nor more than $50,000.00. The auction bond shall be made out to the city for the use and benefit of any purchaser of property at such auction who might have a cause of action of any nature arising from or out of such sale against the auctioneer or applicant, or both. The bond shall be further conditioned on the payment by the applicant:

(1) Of all taxes that may be payable or due from the applicant to or collectible by the city or that may be due to the state or any department or division thereof;

(2) Of any fines that may be assessed by any court against the applicant or auctioneer for violations of this article; and

(3) The satisfaction of all causes of action commenced within one year from the date of any auction sale and arising therefrom.

The aggregate liability of the surety for all such taxes, fines and causes of action shall, in no event, exceed the sum of the bond. In such bond, the applicant and surety shall appoint the administrator as agent of the applicant and sureties for the service of process. In the event of such service, the agent on whom such service is made shall, within three days after service, mail, by registered mail, a true copy of the process served upon him to each party for whom he is served, addressed to the last known address of such party. Failure to so mail such copy shall not, however, affect the court’s jurisdiction. The auction bond shall also contain the consent of the applicant and surety that the circuit court of the county, or District Court No. 50 in the city, shall have jurisdiction of all actions within their respective jurisdictions, against the applicant, surety or both, arising out of any such sale. The city, any affected school district, the state, or any subdivision thereof or any person having a cause of action against the applicant arising out of the auction sale of property may join the applicant and the surety on such bond in the same action, or may in such action sue either such applicant or surety alone.

(Code 1985, § 8-24)

26-215 Term of license.

Auction licenses shall be issued only on the following basis and to cover the following periods:

(1) Annual auction license. As provided for in section 26-38

(2) Single sale auction license. A sale of one or more days to be concluded within ten consecutive days from the first sales day, the first sales day to be commenced within 30 days from the date of approval of the application for license. Not more than one such license shall be issued to the same person within the same calendar year.

(Code 1985, § 8-25)

26-216 Revocation or denial, grounds.

The city council may refuse an application for issuance or renewal of an auction license or may revoke an auction license if it determines that:

(1) The applicant is a minor.

(2) The application of the applicant or license holder contains any false, fraudulent or misleading material statement.

(3) The applicant or license holder has made any false, fraudulent or misleading material statement in the course of conducting an auction sale or in offering property for sale at auction.

(4) The applicant or license holder has perpetrated a fraud on any person, whether or not such fraud was perpetrated in the conduct of an auction.

(5) The applicant or license holder has violated any of the statutes of the state relating to auctions or has violated any of the provisions of this article.

(6) The applicant has been convicted of a crime or misdemeanor involving any form of larceny, embezzlement, deceit, fraud or breach of fiduciary responsibility.

(7) The applicant or license holder has conducted an auction sale of, or offered for sale at auction, any real or personal property in an unlawful manner or in such a manner as to constitute a breach of the peace or detriment to the health, safety and welfare of the public.

(8) The applicant or license holder has failed to comply with the applicable provisions of this article.

(Code 1985, § 8-26)

26-217—26-250 Reserved.

DIVISION 3. AUCTIONEERS

Subdivision I. In General

26-251 Auctioneer defined.

As used in this article, "auctioneer" means any person who sells goods at an auction.

(Code 1985, § 8-30)

26-252 Use of public places prohibited.

No person or auctioneer shall conduct auction sales on any street, sidewalk or other public place.

(Code 1985, § 8-37)

26-253 Exceptions to division.

The provisions of this division shall not apply to sheriffs, constables or other public or court officers, or to any person acting under the license, direction or authority of any state or federal court, selling property in the course of their official duties, or to any person selling property under and by virtue of any state or federal statute.

(Code 1985, § 8-38)

26-254—26-280 Reserved.

Subdivision II. License

26-281 Required.

No person shall act as an auctioneer at any auction sale of real or personal property within the corporate limits of the city unless such auctioneer has an auctioneer’s license issued in accordance with all the provisions, regulations and requirements set forth in this division.

(Code 1985, § 8-31)

26-282 Application; contents.

Any person desiring to obtain a license as an auctioneer in the city shall first file with the administrator an application in writing. The application shall contain the following information:

(1) The name of the applicant, his residence, post office address and business place, if any;

(2) The place or places where he intends to conduct such sales;

(3) Whether or not he is to be self-employed for the purpose of selling his own property;

(4) If he is to be employed by others on a continual basis, the name and address of his general employer;

(5) A statement as to whether or not the applicant holds, or has held, an auctioneer’s license from any state, municipality, governing body or licensing authority; a list of such licenses and a statement of the time, place and by whom issued; a statement as to whether a state, municipality, governing body or licensing authority has ever refused to issue or to renew an auctioneer’s license to the applicant, together with a full and accurate statement as to the reasons for any such refusal; and a statement as to whether any state, municipality, governing body or licensing authority has ever revoked an auctioneer’s license held by the applicant, together with a full and accurate statement as to the reasons for any such revocation;

(6) A photograph of the applicant taken within 60 days immediately prior to the date of the filing of the application. The picture shall be two inches by two inches, showing the head and shoulders of the applicant in a clear and distinguishing manner; the administrator may waive this requirement with respect to an application for renewal of an auctioneer’s license by an individual holding an unexpired auctioneer’s license issued under this division who has, in a previous application under this division, complied with this requirement; and

(7) The fingerprints of the applicant and certifications by three citizens and residents of the city as to the applicant’s good moral character and business responsibility, or in lieu of such certifications, any other available evidence as to the good moral character and business responsibility of the applicant as will enable the investigator to properly evaluate such moral character and business responsibility. The administrator may waive this requirement with respect to an application for renewal of an auctioneer’s license by any individual holding an unexpired auctioneer’s license issued under this division who has, in a previous application under this division, complied with this requirement.

(Code 1985, § 8-32)

26-283 Additional information.

Before granting an auctioneer’s license, the city council may require such further information as it may deem necessary in order to pass upon the reputation and character of the applicant.

(Code 1985, § 8-33)

26-284 Bond; conditions.

(a) At the time of filing an application for an auctioneer’s license, the applicant shall file with the administrator a surety bond written by a surety company licensed to do business in the state. The bond shall be made out to the city in the amount of $2,500.00 and shall be approved by the mayor or the city attorney.

(b) The bond required for an auctioneer’s license shall be conditioned that the applicant, if issued such license, will:

(1) Comply fully with all the provisions of the ordinances of the city and the statutes of the state regulating and concerning auctions and auctioneers.

(2) Render true and strict accounts of all his sales to any person employing him to make the auction.

(3) Not practice any fraud or deceit upon bidders or purchasers of property from him at any auction sale or suffer or permit any person in his employ to practice any such fraud or deceit.

(4) Pay all damages which may be sustained by any person by reason of any fraud, deceit, negligence, or other wrongful act on the part of the licensee, his agent or employees in the conduct of any auction or in the exercise of the calling of an auction.

(Code 1985, § 8-34)

26-285 License term.

All auctioneer’s licenses shall expire December 31 following date of issuance.

(Code 1985, § 8-35)

26-286 Revocation or denial, grounds.

The city council may refuse an application for issuance or renewal of an auctioneer’s license or may revoke an auctioneer’s license if it determines that: