CHAPTER 6.12
AUCTIONS1
6.12.010 Definitions.
The following words and phrases when used in this chapter shall have the meanings hereinafter specified, unless a different meaning clearly appears from the context:
A. "Auction, public auction and auction sale" means and includes a sale or offering for sale of any goods, wares or merchandise to the highest bidder, in any building, or in or on any street or alley, private premises or in any other place where any and all persons who choose are permitted to attend and offer bids. Without limiting the generality of the term "sale by public auction," such sale shall include a sale in which, instead of the bidders making increasingly higher bids for an article of merchandise, the seller or auctioneer announces a price at which he will sell an article of merchandise and then, if no sale occurs, increasingly adds additional articles of merchandise to that originally offered with or without varying the previously announced price, until the buyer finally is induced to buy the accumulated articles at the fixed price. Without limiting the generality of the term "sale by public auction," such sale shall include a sale in which, instead of the bidders making increasingly higher bids for an article of merchandise, the seller or auctioneer announces a price at which he will sell one or more articles of merchandise and then, if no sale occurs, decreases the price of that offer until a buyer is finally induced to buy the article offered for sale;
B. "Public auction room" means the premises designated in the application filed with the chief of police by any person desiring to engage in the calling of auctioneer when and after the permit has been granted by the chief of police, and during the time the premises are used for conducting legal auction sales under and pursuant to the permit issued.
(Ord. 353 NCS §§1.0-1.4: prior code §5.1 (part).)
6.12.020 False representation and substituted goods.
It is unlawful for any person to sell, or attempt to sell, by auction or to advertise for sale by auction, any goods, wares or merchandise and falsely represent or pretend the same to be, in whole or in part, a bankrupt or insolvent stock, or damaged goods, or goods saved from fire, or to make any false statements as to the previous history, ownership, quality or character of such goods, wares and merchandise, or for any person to offer for sale at auction any article and induce its purchase by any bidder and afterwards to substitute any article in lieu of that offered to and pictured by the bidder, except with the bidder’s knowledge and consent. (Ord. 353 NCS §4.0: prior code §5.2.)
6.12.030 False bids prohibited.
It is unlawful for any person to falsely act as bidder in the capacity of what is properly known as a "capper," "booster" or "shiller" merely for the purpose of increasing the amount of the bids at any auction sale or place for conducting public auctions, or to offer or make any false bid, or pretend to buy any article sold or offered for sale at any public auction. (Ord. 353 NCS §4.0: prior code §5.3.)
6.12.040 Holding in public auction rooms required.
It is unlawful for any person to sell or offer for sale, or expose for sale by public auction, any personal property at any place other than in a public auction room as specified in the application for a permit to conduct such auction. (Ord. 353 NCS §5.0: prior code §5.4.)
6.12.050 Attracting attention to sales by use of bells or unusual noise.
It is unlawful for any person conducting an auction sale, or employee, to ring a bell or cause or permit the same to be rung in or about the front of the premises, or in any place on or near such premises where the same may be heard on the public street or sidewalk in front of the premises when there is conducted an auction sale, before, after or during the sale, for the purpose of attracting the public to such auction sale. (Ord. 353 NCS § 12.0: prior code §5.5 (part).)
6.12.060 Use of searchlight, music, singing or other noise.
It is unlawful for any person conducting an auction sale, or employee, to use a searchlight or similar light, or to solicit or to permit the soliciting by music, singing or loud or unusual noises for the purpose of attracting the public to an auction sale. (Ord. 353 NCS § 12.0: prior code §5.5 (part).)
6.12.070 Exemptions.
The provisions of this chapter shall not apply to vehicles, automobiles, machinery, farm products, including poultry and livestock, and such bulky articles as have been usually sold in or near warehouses, or in the public streets or on the wharves, nor to any sales made under the direction of any court or pursuant to any law or judicial proceeding nor to any sale by executors or administrators. (Ord. 353 NCS §2.1: prior code §5.6.)
6.12.080 Auction permit required.
It is unlawful for any person to engage in the calling of auctioneer, or to hold, conduct, carry on or maintain any auction room or place for holding public auction sales, or to advertise or hold himself out to the public as an auctioneer or to conduct, carry on or maintain any sale of goods by public auction in the city, unless there exists a valid permit therefor, granted and existing in compliance with the provisions of Sections 6.12.080 through 6.12.150 and unless the license fees required by Chapters 6.04, 6.08, 6.28 and 6.36 or any other ordinance of the city shall have been paid by the person holding such permit. (Ord. 353 NCS §2.0: prior code §5.7.)
6.12.090 Qualifications of applicant.
In order to secure a permit to conduct an auction in the city, the applicant for the permit required by Section 6.12.080 must be a citizen of the United States, and shall have been a resident of and legally engaged in business in this state for two years immediately preceding the date of filing the application for a permit. (Ord. 353 NCS §3.1: prior code §5.8.)
6.12.100 Investigation of applicant.
Upon receipt of an application for a permit to conduct a public auction as described in Section 6.12.080, the city clerk shall refer the same to the chief of police for investigation and report. Thereupon, the chief of police shall cause an investigation to be made of the moral character and reputation of the applicant and the person who is to conduct the sale. If the investigation by the chief of police discloses that neither applicant nor any of its officers, directors or members have violated the provisions of this chapter, he shall report to the city clerk that such an application should be issued; otherwise he shall report that the application be revoked. (Ord. 353 NCS §7.0: prior code §5.9.).
6.12.110 Bond required.
No person shall engage in the calling of an auctioneer in the city, unless, in addition to the permit required by Section 6.12.080, he shall have filed with the city clerk a bond conditioned for the faithful performance of his duties, and of all the provisions of this chapter and all other applicable ordinances of the city, which bond shall be in the principal amount of five thousand dollars, payable to the city, and shall be signed by two or more sureties, each of whom must be worth the sum, or by a surety company. The bond shall be approved by the city manager and the city attorney. For every violation of any of the provisions of this chapter pertaining to the calling of auctioneer, or to auctions, in addition to such penalty as may be otherwise provided for such violation, such auctioneer shall forfeit to the city the sum of two hundred fifty dollars, which amount shall be recoverable upon the bond. (Ord. 353 NCS §3.2: prior code §5.10.)
6.12.120 Bond — Indemnity provisions.
The bond required in Section 6.12.110 shall indemnify any purchaser at the public auction held by the holder of such a permit, who suffers any loss by reason of any misrepresentations or deception made or practiced by the applicant, his agents, servants or employees either at the time of making the sale or through any advertisement of any character whatsoever printed or circulated by the principal, his agents, servants or employees.
The bond shall contain the further provision that it insures to the benefit of any and all persons who may be damaged by reason of any failure on the part of the person made therein to comply with the provisions of the bond, and that any person so damaged may maintain an action thereon against the person named in the bond, and the surety upon the bond, and that the bond may be sued and recovered upon in several actions until the whole penalty is exhausted. (Ord. 353 NCS §3.2: prior code §5.11.)
6.12.130 Permit denial — Appeal.
In the event the chief of police files an unfavorable report of his investigation of an application for a permit as required by Section 6.12.080, or the city clerk denies same, the applicant shall have the right to file a written appeal to the city council within ten days after notice of the denial. Thereafter the council shall set such appeal for hearing before it, and hear the appeal within twenty days after the notice of appeal. Notice of the hearing shall be published once in the official newspaper not less than five days before the hearing, and a copy thereof mailed to the applicant at the address shown on the application. After the hearing, the council may grant the application for a permit, or if it finds that the conduct of an auction at the location as shown on the application, or for any other reason, would be contrary to this chapter or any ordinance of the city, or would constitute a public nuisance, the application may be denied. The decision of the city council shall be final. (Ord. 353 NCS §7.1: prior code §5.12.)
6.12.140 Suspension and revocation of permit generally.
Any permit granted under Sections 6.12.080 through 6.12.150 may be suspended or revoked by the chief of police when it appears to the chief that the business or calling of the person to whom the permit was granted is conducted in a disorderly or improper manner, or in violation of any law of the state or of any ordinance of the city, or that the place where such business or calling is being conducted or maintained is not a proper or suitable place in which to conduct the business or calling. (Ord. 353 NCS §9.0: prior code §5.13.)
6.12.150 Filing of complaints.
Complaints to suspend or revoke permits granted by the chief of police must be in writing, signed by the person making the complaint and filed with the chief of police, and a copy thereof, certified by the chief of police, must be served upon the party complained against, or upon the person in charge of the place of business at least forty-eight hours before the time set for the hearing of the complaint. Upon the suspension or revocation of the permit, the license issued thereon shall immediately terminate or be suspended during such time as the chief of police shall determine. The holder of a suspended or revoked permit shall have the same right of appeal to the city council pursuant to the same procedure provided for in Section 6.12.130 in the case of denial of an original application for a permit. (Ord. 353 NCS §9.0: prior code §5.14.)
Editor’s Note: For regulations governing jewelry auction sales, see Chapter 6.24 of this code.