Calexico Municipal Code Ch. 5.28 Auctions

In this chapter, the following words shall have the following meanings:

"Auctioneer" includes and comprehends any person who, by public outcry, sells or offers to sell to the highest bidder any of the property described in this chapter, or any person who arranges for the disposal at public offering to the highest bidder, when bids are called for, either in person or by duly employed and licensed auctioneers, any goods, wares, merchandise, fruits, stocks, bonds and other securities, livestock or other personal property, or any real estate or interest therein in any building or in any of the streets or sidewalks or in any other place in the city where any and all persons who choose are permitted to attend and offer bids, or any person who advertises as a public auctioneer, or in any other manner holds himself out as such for public patronage, or receives fees as a commission for services as such.

"Auction sale" means a sale of property by public outcry to the highest bidder; and all such sales in the city shall be conducted only by a person or persons licensed pursuant to this chapter.

(Prior code §§ 2600—2602)

The following classifications are established for the occupation or business of auctioneer and/or auction house, together with general requirements as stated in this section:

A. Class A. Every person who sells or offers for sale at public auction as an auctioneer as defined in subsection A of Section 5.28.010 shall have a class A license.

B. Class B.

1. Every person who sells or offers for sale at public auction any real estate, livestock, new or secondhand goods, wares or merchandise in any place other than an auction house shall have a class B license.

2. In addition thereto, each auctioneer shall have a class A license as provided in subsection A of this section.

3. Where the application is for a class B license, it shall also specify the store or place in the city where the applicant proposes to conduct an auction sale or sales, the owner or owners and the character of the property to be sold.

C. Class C.

1. Every person or group of persons, operating an auction house shall have a class C license.

2. In addition thereto, each auctioneer shall have a class A license as provided in subsection A of this section.

3. The applicant for a class C license shall specify the location of the place of business in the city where the applicant proposes to conduct the auction house.

D. Auction House Defined. Under this section, "auction house" means a place of business wherein goods, wares or merchandise are offered for sale at auction as an established auction business at a certain location.

(Prior code § 2603)

No person shall arrange or advertise for the disposal at public offering to the highest bidder, or sell or offer for sale at public auction within the city or in any other manner carry on the business of selling or soliciting for sale at public auction any of the property described in subsection A of Section 5.28.010, whether the same is his own property or the property of others, without first complying with the provisions of this section and Sections 5.28.030 through 5.28.050 and obtaining a permit as a public auctioneer as provided in this chapter.

(Prior code § 2610)

A. Citizenship and Residency. No permit shall be granted to a person as a public auctioneer unless he is a citizen of the United States, or has duly declared his intention of becoming a citizen of the United States, and has been a resident of the county of Imperial for at least one year preceding the filing of such application.

B. Qualifications. The applicant shall also furnish sufficient and satisfactory proof of good moral character and such other qualifications as the council may require.

C. Application. He shall file with the council a verified application setting forth the facts mentioned in Sections 5.28.030 through 5.28.050.

D. Exemptions. The provisions of Section 5.28.020 and this section shall not apply to judicial sales or sales made by executors or administrators.

(Prior code §§ 2611—2614)

Any person desiring to dispose of, by public auction, any of the property described in subsection A of Section 5.28.010 shall make a verified written application to the city clerk and incorporate in said application the following facts:

A. The name and address of the applicant;

B. The length of time the applicant has been engaged in business in the county of Imperial;

C. How long the applicant has been a resident of the city;

D. The time and place of any auction sale the applicant may have conducted in the city or elsewhere within one year prior to the date of the application;

E. Whether the applicant has ever before made application for an auctioneer's license and has been refused, or whether or not the applicant has ever been licensed as an auctioneer or auction cryer and said license revoked;

F. Whether the applicant is a citizen of the United States or has duly declared his intention of becoming a citizen;

G. An oath or affirmation as to the truth of the statements made in said application.

(Prior code § 2615)

A. Filing. There shall be filed in behalf and on the part of the applicant with the clerk at the time of filing his application, or at such time thereafter as the council may allow, a bond executed to the city by a surety company duly authorized to do so, to be approved by the council.

B. Prerequisite to License. No license shall be granted to any auctioneer until a bond has been given as provided for in Sections 5.28.020 through 5.28.070.

C. Form. In form, said bond must be joint and several, and the penalty thereof must be twenty-five hundred dollars and must be conditioned to be paid to the city or to any person suffering injury by reason of any violation of the provisions of this chapter, and that the principal therein named will faithfully conform to each and all of the rules and regulations prescribed by the city council for the conduct of auction sales and the business of auctioneers, and will faithfully abide by and conform to each ordinance of the city, whether then in force or thereafter adopted.

D. Successive Actions upon Bond. Said bond shall not be void upon the first recovery, but may be sued and recovered upon from time to time by any person aggrieved, in his own name, until the whole penalty is exhausted.

(Prior code § 2616)

A. Designated. Before granting a permit to engage in the business of auctioneer in the city, there shall be paid to the city clerk an application fee in the sum of one hundred dollars for every auctioneer permit. Such fee shall be used for the purposes of investigating the application made by the applicant and shall not be refundable in any event.

B. Relation to Other Fees. Said application fee shall be in addition to any business license fee fixed by any other ordinance of the city for the business of conducting sales at public auction.

(Prior code § 2617)

A. Upon approval of any application referred to in this chapter, there shall be issued to the applicant either a class A license, or a class A and class B license, or a class A and class C license to do business as an auctioneer, as required by the provisions of this chapter and the application filed.

B. If the license is a class B or class C license, it shall always designate the store or other place in the city where the applicant proposes to conduct an auction sale or sales.

(Prior code § 2618)

A permit may be suspended or revoked if the permittee has either:

A. Made any misstatement of a material matter in his application for a permit;

B. Violated or failed to comply with any provisions of this chapter, or in the conduct of such sale has committed or permitted the commission of any fraudulent act or practice in connection with the conduct of such sale;

C. Violated any law or ordinance pertaining to advertising;

D. Violated or failed to comply with any rule adopted by the council.

(Prior code § 2694)

A. Revocation Upon Hearing. Upon the filing of a verified complaint setting forth facts sufficient to constitute grounds for revocation of a permit issued under this chapter, the council may proceed to revoke such permit after an open hearing held upon reasonable notice to the permittee, and opportunity given to the permittee to appear and defend and answer any charges preferred against him.

B. Suspension Pending Hearing. If, from consideration of the facts stated in such complaint, the council finds that continuance of the auction sale pending hearing upon such complaint would result in detriment to the public welfare, such finding shall be recorded in the minutes of the council, and thereupon, the council may suspend such permit pending hearing and decision of the council upon such complaint.

C. Notices. Notice of such suspension shall be sent to the permittee together with notice of the place and date of hearing thereon which shall be not less than five nor more than seven days thereafter.

(Prior code §§ 2692, 2693)

A. Thirty-day Limit. Where the sale of any goods, wares or merchandise is by public auction, such sale shall be held on successive days, Sundays and legal holidays excepted, and shall not continue for more than thirty days in all from the commencement of said sale.

B. Forbidden Months. No class B retail jewelry auction as described in this chapter shall be held in the city during the months of November and December.

C. Additional Time to Sell Merchant's Stock. Where said auction is the stock on hand of a merchant disposing of this stock for the purpose of retiring from business, then, in the event thirty days is an insufficient time to successfully conclude such auction, an application may be made to the council of the city for an additional thirty days' period of time and the council may grant such additional time as it may deem necessary under the circumstances.

(Prior code §§ 2621—2623)

It shall be the duty of every auctioneer each day at the beginning of such auction sale, as defined in subsection B of Section 5.28.010, to fully state the terms and conditions upon which the sale or sales will be made, and that such buyer must settle for the article so purchased within twenty-four hours after the conclusion of said auction sale.

(Prior code § 2661)

A. It shall be the duty of the person whose merchandise is thus being sold at public 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.

B. Duplicate copies of said invoices shall be kept.

(Prior code § 2662)

The permittee shall permit any police officer or duly authorized representative of the council, during regular business hours of the day, to examine any article held for sale by auction, offered for sale or sold at any time before such article is delivered to the purchaser.

(Prior code § 2655)

Upon request of any person who has bid upon an article offered for sale, the auctioneer shall allow such bidder a reasonable opportunity to examine such article, and such bidder may thereafter withdraw his bid at any time before the auctioneer declares the article sold.

(Prior code § 2656)

It is unlawful for any person carrying on or conducting or assisting in carrying on or conducting an auction sale to:

A. 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, whether new or secondhand or partly so, of any property offered for disposal by auction sale;

B. 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 at any auction sale of property;

C. Ring any bell or sound any other loud or noisy instrument for the purpose of attracting attention to any auction sale;

D. Offer or attempt to dispose of any property at any auction sale 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, except that property which is described in Sections 3152 and 3153 of the Political Code of the state of California;

E. Offer or attempt to dispose of goods, wares, or merchandise at an auction sale between sunset and sunrise, unless such goods, wares or merchandise have been on display during the daylight business hours of the day preceding such sale;

F. Refuse, fall, or neglect to deliver complete and immediate possession to the purchaser of any property upon the payment of the purchase price thereof at the conclusion of such auction sale;

G. Substitute any article in lieu of the article offered to and purchased by the bidder, except with the bidder's knowledge and consent;

H. Sell or offer for sale at public auction any property whatsoever without having a valid and unrevoked license therefor as required by this chapter.

(Prior code §§ 2670—2678)

Any person intending to dispose of his stock on hand by sale at public auction at retail, which sale is to be advertised as a "closing out sale," a "going out of business sale," or a "quitting business sale," must make a sworn written application to the city council at least fifteen days before the intended sale is to begin, specifying under oath the name and address of the applicant, the location and purpose of the sale, and its expected duration, a statement 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, together with a declaration that the merchandise or property to be sold at public auction sale is a bona fide part of the merchant's stock in trade, and 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 and were not secured, purchased or brought into said place of business for or in anticipation of said sale, and the name of the auctioneer who shall conduct the sale.

(Prior code § 2630)

A. Exceeding Inventory. The inventory accompanying the application as provided in Section 5.28.170 shall not exceed by twenty-five percent of the unit volume of the inventory carried by the applicant ninety days prior to application.

B. Refusal for Excessive Inventory. Any inventory in excess of that stated in subsection A of this section shall be cause for refusal to issue license.

(Prior code § 2631)

Such statement and inventory listing the stock of goods to be sold at auction as required by Section 5.28.170 shall be accompanied by a notarized affidavit by the applicant certifying that the merchandise is as represented by the statement and that sale of any merchandise listed will not be in violation of any law or city ordinance with respect to auctions.

(Prior code § 2632)

During the pendency of auction sales held for the purpose of closing out a stock of goods at retail, no goods shall be added to such stock.

(Prior code § 2641)

Under no circumstances shall the inventory offered for sale at auction exceed by twenty-five percent the unit volume of the inventory carried by the applicant ninety days prior to the application.

(Prior code § 2642)

It is unlawful for any person to sell, dispose of, or offer for sale in the city at public auction, or cause or permit to be sold, disposed of, or offered for sale in the city at public auction, any either new or secondhand platinum, gold, new silver, or new plated ware, precious stones, or semiprecious stones, watches or other jewelry, whether the same is his property or whether he sells the same as the agent or employee of others.

(Prior code § 2651)

A. The provisions of Section 5.28.220 shall not apply to judicial sales or sales made by executors or administrators or sales made by or in behalf of licensed pawnbrokers or unredeemed pledges in manner provided by law; nor to the sale at public auction of the stock on hand of any person or persons who, for the period of one year next preceding such sale, have been continuously in business in the city as a retail or wholesale merchant of platinum, silver, or plated ware, precious stones or semiprecious stones, watches or other jewelry; nor to the sale at public auction of such stock on hand of any person or persons as described in this section where said stock has been purchased by a holder of a class A license under this chapter.

B. No such sale shall be had between sunset and sunrise.

(Prior code § 2652)

A. Form. Any person desiring to sell jewelry at public auction shall file with the city council not less than fifteen days nor more than thirty days before the date when he wishes to start such auction an inventory of all articles which the permittee proposes to sell at such public auction, prepared as follows:

1. Separate Listing. Each item shall be listed separately, except that items which are to be sold as a set, or together, may be listed together as a single item. Any property so listed may not be sold otherwise than together as listed.

2. Numbering. Items or sets or groups of items listed shall be separately and consecutively numbered, beginning with the number "one."

3. Other Particulars. Following the name of each article, and upon the same line or immediately beneath it, shall be:

a. A description of the article, giving the name of the manufacturer, if known, the manufacturer's number, if any, the name, size or weight of any precious or semiprecious stones or imitations thereof, the kind of metal, the grade or fineness thereof used in the article, together with such other and further information as shall reasonably tend to inform persons examining the inventory of the nature and quality of the articles listed and to identify the same; and,

b. The wholesale or invoice values thereof.

B. Investigation by Council. Upon receipt of the application for a permit, the council shall investigate the statements made therein and determine whether such statements are true, and whether articles are properly and sufficiently described as required in subsection A of this section and labeled or tagged as required in Section 5.28.250.

C. Amending of Descriptions. If the articles listed upon the inventory are not properly described, the council may permit the applicant to properly describe such articles.

(Prior code § 2653)

A. Required. It is unlawful for any person to offer for sale or sell, either for himself or for another, at public auction, any jewelry unless there is securely attached to the article so offered for sale or sold a tag, card or label bearing accurate reference to the written inventory, upon which shall be plainly written or printed in English a true and correct statement of the kind and/or quality and/or weight of the metal of which said article is made or composed and the percentage or carat of purity of such metal or article.

B. Plating of Stones. In case such article is plated or overlaid, then such statement shall contain a true statement of the kind of plate and the percentage of purity of such plate, and the kind of metal or material covered, and in case such article is a precious or semiprecious stone, such statement shall contain the true name, weight, quality, color and fineness of said stone.

C. Timepieces. In case such article is a watch or clock, the statement shall contain the true name of the manufacturer thereof; and in case any secondhand or old movement or substitute part of movement of any watch or clock is offered for sale in a new case, such fact shall be set forth in said statement.

D. Estate or Source. In the event that any jewelry auction sale has been advertised as offering goods from a designated or named estate or source, then the tag or label on said article shall state the designated or named estate or source from which that particular article was obtained.

E. False Entries. No such article so sold or offered for sale shall bear any false or misleading name, description or entry thereon.

F. Presumption of Fraud. It shall be deemed prima facie evidence of intent to defraud or violate the provisions of this chapter where such goods, wares, merchandise and/or articles so sold or offered for sale fail to compare with the descriptions indicated on the tag, card or label, as provided in this section.

G. Label to Remain Attached. 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 or corporation so selling the same as a correct description and representation of the article so sold.

H. Numbering Similar Articles. In case there is 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.

(Prior code §§ 2654—2654.7)

A. Required. The auctioneer must at the end of every twenty-four hours forward to the chief of police, by mail or otherwise, an itemized account of all sales of jewelry made by him for each twenty-four-hour period.

B. False Statements. This itemized statement shall be subscribed by the auctioneer conducting the same, and any false statement submitted by said auctioneer to the chief of police shall be deemed sufficient cause for the suspension or revocation of his permit to conduct such auction.

(Prior code §§ 2654.8, 2654.9)

The council is authorized to adopt reasonable rules not in conflict with this chapter requiring additional information upon application for permits, additional records and reports on transactions at and conduct at public auctions, or prescribing additional rules governing conduct of public auctions when, after investigation, it finds that such rules are reasonably necessary for the prevention of fraud or the protection of the public welfare.

(Prior code § 2691)

Nothing contained in this chapter shall apply to any sale:

A. Made upon the execution or by virtue of any process issued by a court; or

B. Made by any public officer in his official capacity required to be made under the laws of the United States or the state of California, or under the laws of the city; or

C. Of property by public auction solely for charitable or benevolent purposes, or for any church, fair, festival or bazaar for the purpose of raising funds to promote or further its objects, or for any public purpose whatsoever; or

D. Conducted under the provisions of the Uniform Warehouse Receipts Act; or

E. Made under a nonstatutory assignment for the benefit of creditors generally, which sale shall be conducted by a licensed 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 said assignment and where the sale is held on said premises.

(Prior code §§ 2680—2685)