Chapter 5.24
JEWELRY AUCTIONS
Sections:
5.24.040 Permit – Application – Fee – Investigation.
5.24.080 Labeling requirements.
5.24.090 Inventory requirements.
5.24.100 False statements or misrepresentations prohibited.
5.24.110 False bidding prohibited.
5.24.120 Certain noises, searchlights prohibited.
5.24.010 Definitions.
The following words and phrases when used in this chapter shall have the meaning 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 jewelry as defined in this section 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.
B. “Jewelry” means and includes platinum, gold, silver, plated ware, precious stones, semi-precious stones, watches, clocks and other articles of jewelry. (Ord. 761 M.C. § 1, 1952).
5.24.020 Applicability.
Nothing contained in this chapter shall apply to any public officer or officer of any 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 the lawful order of any court, nor to the sale or offering for sale of unredeemed pledges or chattels in the manner provided by law, by pawnbrokers, loan companies or others, the sale or offering for sale for the purpose of satisfying a lien, or any other sale or offering for sale at auction where the same is specifically authorized or provided by law. (Ord. 761 M.C. § 13, 1952).
5.24.030 Permit – Required.
It is unlawful for any person, firm or corporation to sell, offer for sale or advertise for sale at public auction in the city any jewelry as defined in this chapter; provided, however, that any person, firm or corporation who has been engaged in the business of selling jewelry at retail in the city continuously for a period of not less than one year may obtain a permit as provided in this chapter to conduct a public auction of such articles for the purpose of disposing of his stock on hand and of closing out his business. Any such person, firm or corporation so obtaining such permit shall be subject to all the regulations and restrictions contained in this chapter. (Ord. 761 M.C. § 2, 1952).
5.24.040 Permit – Application – Fee – Investigation.
A. The applicant for a permit to conduct a public auction of jewelry shall make application therefor not less than 30 days previous to the intended auction to the license collector of the city, and at the time of such application shall pay a minimum filing fee of $25.00; provided, that if the net inventory exceeds the sum of $5,000, then in that event, the fee shall be $25.00 plus $5.00 for each $1,000 or fraction thereof of net inventory exceeding $5,000. Such application shall be in writing on forms provided by the license collector and under oath, showing all the facts in regard to the closing out of applicant’s business, and showing all the facts in regard to conducting the sale at public auction and the place of conducting the same, including an inventory of the goods, wares and merchandise to be sold at said proposed sale, the quality, quantity and grade of each item, the wholesale value thereof, and a statement of the names of the persons from whom the jewelry to be sold were obtained, the date of the delivery of such jewelry to the person applying for the permit, and the place from which such jewelry was last taken and all details necessary to fully identify the jewelry, together with such other information as may be required by the license collector. Such application shall specify the proposed period of time over which such proposed sales at public auction shall continue, which period shall not exceed 30 days, Sundays and legal holidays excluded; provided, that if it is made to appear upon sworn application to the license collector at any time during said period of 30 days, that all the jewelry described and inventoried in the original application has not been sold, accompanied by a statement or inventory of what remains thereof, a permit supplemental to that provided for may be issued by the license collector upon the same terms and conditions as the original permit, granting authority to continue such sale for a further period of 30 days.
B. Upon receipt of such application the license collector shall refer the same to the chief of police for investigation and report.
C. After receipt of the report of the chief of police, if the license collector is satisfied that applicant and the person who is to conduct the proposed auction sale are of good moral character, that the jewelry proposed to be sold at public auction is a bona fide part of applicant’s stock in trade and not secured, purchased or brought into his place of business for or in anticipation of the proposed sale, that neither applicant nor any of its officers, directors or members have violated this chapter, and that the advertising and conducting of such sale will not be injurious to the peace, health, safety or welfare of the people of the city, he may issue a revocable permit to the person, firm or corporation applying for the same to advertise and conduct a sale at public auction, upon the applicant’s filing the bond provided for in this chapter.
D. The making of any abnormal purchase by the applicant within a period of six months prior to the application for a permit under this chapter shall prima facie be deemed made for the purpose of disposing of the same at such proposed public auction and shall be just cause for denial of the permit.
E. The license collector in considering the application and the attending facts shall exercise a reasonable and sound discretion in granting or denying the permit applied for. (Ord. 761 M.C. § 3, 1952).
5.24.050 Bond required.
A. No permit shall be granted until the applicant has filed with the license collector a surety bond in the sum of $2,500, conditioned for the faithful performance of all the provisions of this chapter and all other applicable ordinances of the city and laws of the state pertaining to auctions and closing-out sales, and shall also indemnify any purchaser at a public auction who suffers any loss by reason of any misrepresentation or deception made or practiced by 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.
B. Such bond shall contain the further provisions that it insures to the benefits of any and all persons who may be damaged by reason of any failure on the part of the person or persons named therein to comply with the provisions of said bond, and that any person or persons so damaged may maintain an action thereon against the person or persons named in said bond, and the surety or sureties upon said bond, and that said bond may be sued and recovered upon in several actions until the whole penalty is exhausted. (Ord. 761 M.C. § 4, 1952).
5.24.060 Permit – Revocation.
Whenever the license collector finds that the holder of a permit hereunder has violated any of the conditions or provisions of this chapter or any other ordinance or law pertaining to his operations, or that the permit was obtained by misrepresentations, that he has failed to maintain the bond required by this chapter, or that the auction is being conducted in a manner which will be injurious to the peace, health, safety or welfare of the people of the city, he may revoke the permit upon giving the holder thereof 48 hours’ previous notice in writing by personal service upon him or upon the auctioneer conducting said auction, or by mail addressed to him at his place of business in the city or the place where said auction is being conducted as shown on his application. It is unlawful for any person, firm or corporation to conduct an auction sale as herein defined after his permit to do so has been revoked. (Ord. 761 M.C. § 5, 1952).
5.24.070 Appeal.
Any applicant or applicants dissatisfied with the action of the license collector not to grant a permit or for the revocation of a permit may appeal to the city council in accordance with Chapter 1.44 BMC. Upon such hearing the city council may sustain, suspend or overrule the decision of the license collector and its decision shall be final and conclusive. Pending the hearing before the council, the decision of the license collector shall remain in full force and effect and any reversal thereof by the city council shall not be retroactive but shall take effect as of the date of the council’s decision. (Ord. 07-31 § 1; Ord. 761 M.C. § 6, 1952).
5.24.080 Labeling requirements.
It is unlawful for the holder of a permit hereunder or for his agents, servants or employees to sell or offer for sale at auction any jewelry to which there is not attached a card or label containing a true and correct statement plainly written or printed in the English language specifying the kind and quality of metal of which such article is made or composed, or the percentage or karat or purity of such metals. If such articles are plated or overlain, then such tag or label shall contain a true statement of the kind of plate. When precious stones are sold or offered for sale at auction, as such or as part of an article of jewelry, such statement shall set forth the true name of said stones. When imitations of precious or semiprecious stones are offered for sale or sold at auction as such or as part of an article of jewelry, said imitations shall be described or defined as synthetic or imitations of such stones as they purport to represent. When watches or clocks are sold or offered for sale at public auction 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 or 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 shall be so indicated. Such card, tag or label shall remain securely attached to any such article of 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 or representation of such article sold. (Ord. 761 M.C. § 7, 1952).
5.24.090 Inventory requirements.
No article of jewelry shall be sold or offered for sale or advertised for sale at public auction which is an addition to the stock on hand of the holder of a permit hereunder or which is not included in the inventory filed with the license collector with the application for a permit hereunder. (Ord. 761 M.C. § 8, 1952).
5.24.100 False statements or misrepresentations prohibited.
It is unlawful for any permittee, his agents, servants, 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 of jewelry sold or offered for sale at public auction. (Ord. 761 M.C. § 9, 1952).
5.24.110 False bidding prohibited.
A. It is unlawful for any auctioneer or for any person, firm or corporation conducting a sale of jewelry at public auction to use any person as a false bidder for the purpose of increasing the price of any article offered for sale at such auction.
B. It is unlawful for any person to make or offer a false bid or any other than a bona fide bid at a public auction or to act as a by-bidder or what is commonly known as a “capper,” “booster” or “shiller” at any auction, or falsely to pretend to buy any jewelry at any auction sale. (Ord. 761 M.C. § 10, 1952).
5.24.120 Certain noises, searchlights prohibited.
A. It is unlawful for any auctioneer, person, firm or corporation conducting an auction sale, or its agents, servants or employees 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 said premises where the same may be heard on the public street or sidewalk in front of said premises where there is conducted an auction sale, before, after or during such sale for the purpose of attracting the public to such auction sale.
B. It is unlawful for any auctioneer, person, firm or any corporation conducting an auction sale, or its agents, servants or employees, or to use a searchlight or similar light to solicit or permit the soliciting by music, singing or loud or unusual noises to be made or done for the purpose of attracting the public to an auction sale. (Ord. 761 M.C. § 11, 1952).
5.24.130 Hours designated.
It is unlawful for any person, firm or corporation to conduct or allow, permit or suffer to be conducted, any auction sale between the hours of 6:00 p.m. on any day and 8:00 a.m. of the following day. (Ord. 761 M.C. § 12, 1952).
5.24.140 Violation.
Each separate sale or offering for sale of jewelry at auction in violation of this chapter shall constitute a separate offense. (Ord. 03-9 § 9; Ord. 761 M.C. § 16, 1952).