Coachella Municipal Code Ch. 5.08 Auctions and Auctioneers

The following definitions shall apply in the interpretation and enforcement of this chapter:

"Auction" means the offering for sale or selling of personal property to the highest bidder; or offering for sale or selling of such property by the method known as "down hill selling." By "down hill selling" is meant the first offering of an article at a higher price and then offering the same at successive lower prices until a bidder is secured.

"Auctioneer" is a person who offers for sale at an auction sale any personal or real property.

"Selling at auction" includes a sale in which, instead of the bidders making increasingly higher bids for an article or articles of merchandise, the seller or auctioneer announces a price at which he or she will sell one or more articles of merchandise and then, if no sale occurs, increasingly adds additional articles of merchandise to those originally offered, with or without varying the previously announced price, until a buyer is finally induced to buy the accumulated articles at the price fixed.

The words "auctioneer" or "auction" shall not include any person making any sale or any sale made by virtue of or pursuant to provisions of any law of the United States or the state of California or pursuant to the provisions of any order made by any court of the United States or the state of California or by virtue of any mortgage or a deed of trust or other lien. The word "person," when used in this chapter, shall include the plural and shall also include "firm" or "corporation."

(Prior code § 13-125)

No person shall conduct any auction in the city without having first obtained a license, as provided in this chapter, to do so.

(Prior code § 13-126)

Application for such license shall be made to the finance director and such application shall give the name of the person who shall conduct such auction, the place where such auction is to be conducted, a general description of the goods which it is proposed to sell at such auction, and names of two residents of the city who may be referred to concerning the moral character of such application.

(Prior code § 13-127)

A license to act as an auctioneer pursuant to the provisions hereof shall be granted by the finance director upon compliance with Section 5.08.030 hereof and the following condition: The depositing with the finance director of a penal bond in the sum of one thousand dollars ($1,000.00), with surety or sureties to be approved by the finance director, conditioned that upon the failure to comply with any of the conditions or provisions set forth in this chapter such auctioneer or his or her sureties will pay any fine which may be imposed upon such auctioneer for such violation; and further conditioned that such auctioneer or his or her sureties will pay to any person aggrieved by any act of such auctioneer in violation of any term or terms hereof any amount which a court of competent jurisdiction may determine that such person is entitled to because of such violation.

(Prior code § 13-128)

The provisions of Section 5.08.040 shall not apply to any license now in force authorizing the holder to do business as an auctioneer, but upon the termination of such license the future conduct of such auctioneer shall be governed by such section. All other sections hereof shall apply to all auction sales held or made after the effective date of the ordinance from which this chapter derived.

(Prior code § 13-129)

A. Misrepresentation as to Quality. No auctioneer of personal property shall knowingly or negligently misrepresent the quality of any article offered for sale at any auction and for a violation thereof may be punished as provided in this chapter.

B. Substitution of Articles. No auctioneer of personal property who shall offer for sale at public auction any article shall thereafter substitute any article in lieu of that offered after the same has been purchased.

C. Misrepresentation as to Ownership. No auctioneer of personal property shall, with intention to induce a person to purchase same, make any false representation or statement as to the ownership, character or quality of or pretended owner of such property.

D. Misrepresentation as to Source. No auctioneer shall falsely represent or pretend that any goods, wares or merchandise which are offered for sale at auction are in whole or part a bankrupt, insolvent or damaged stock of goods or goods saved from fire or of any character or history other than the true character and history of the goods.

E. General Requirements. Any auctioneer who shall sell or offer for sale at public auction in the city, any stock of merchandise which such auctioneer in any manner or by any means represents as being a whole or part of goods belonging or kept in the business of another shall, before offering such goods for sale at public auction, file with the finance director, ten (10) days before the opening of any auction, a verified inventory of this stock of merchandise, which such verification shall state that the inventory as filed is, in all respects, true and that no goods not thus inventoried will be sold. No goods other than the goods listed in such inventory may be sold at such auction. Such inventory shall be kept by the finance director as a part of his or her records and shall be open for inspection to the public.

F. Auctioneer's Record Book. Every auctioneer must keep a record book in which must be entered each sale, the amount paid and date of each sale, which book shall be open at all times for inspection by any member of the police department of the city.

G. Auctioneer's Civil Liability. Any person or persons aggrieved or damaged by any act of an auctioneer in the city in violation of or contrary to the provisions hereof shall have an action against such auctioneer and/or his or her bondsmen upon his or her official bond.

H. Revocation of License. Upon the violation of any of the terms or conditions set forth in this chapter, the city council may, after hearing, revoke any license granted hereunder. A conviction under subsections A through D of this section, inclusive, hereof shall automatically revoke the license of the person convicted.

I. Renewal of Revoked License. No person shall be granted a license hereunder whose license has been revoked during the six months next preceding the date of the filing of such application, except with the consent of the city council.

(Prior code § 13-130)

A. Auctions Restricted. No auction of jewelry shall be held unless the person, firm or corporation offering such stock for sale at public auction has been continuously in business in the city as a retail or wholesale merchant of jewelry for at least one year before the date on which the auction shall open, and only where such merchant is bona fide disposing of his or her stock for the purpose of retiring from business.

B. Jewelry Defined. The term "jewelry," as used in this chapter, means diamonds and other precious and semiprecious stones, pearls, cultured pearls, synthetic stones, and any limitations of any of these articles, articles for personal wear and adornment of any character whatsoever commonly and commercially known as "jewelry," watches, clocks, silverware, gold ware, and precious metal ware of the platinum group, and wares plated with any of the precious metals.

C. Exceptions. The provisions of subsections A and B of this section shall not apply to judicial sales or sales by executors or administrators, nor to sales by or on behalf of a licensed pawnbroker of unredeemed pledges in the manner provided by law. Provided that, if a person is engaged in a combined jewelry and pawnbroker business, that portion of the business which is a "jewelry business," as distinguished from the business of the pawnbroker, shall be subject to the provisions hereof.

(Prior code § 13-131)

All auctions provided in this chapter shall be held on successive business days when once commenced, and shall not continue for more than thirty (30) days from the commencement of such auction.

(Prior code § 13-132)

All auction sales of diamonds, watches, clocks, jewelry, silverware, oriental rugs and bric-a-brac must be held between sunrise and sunset, but auctions of all other goods may be held at any time.

(Prior code § 13-133)

The provisions set forth in this chapter shall have no application to any auction or sale conducted by any charity, church or lodge or other association or corporation not organized for profit.

(Prior code § 13-134)

The provisions set forth in this chapter shall have no application to any auction conducted by a person operating a business of a type described in Sections 5.04.390 and 5.04.400 of this title, or by an individual who is regularly employed in that business by such a person, if all of the following conditions are met:

A. The goods which are to be sold at the auction are of the same type or variety of goods which have been sold in the ordinary course of that business;

B. The goods which are to be sold at the auction are the property of the auctioneer or the person who is the employer of the auctioneer;

C. The auction is to be conducted on the business premises of the owner of the goods where such goods have been regularly sold;

D. The goods to be sold are either unused goods, returned goods which had been sold by the same person and were unused at the time of the original sale, or goods which have been traded or exchanged for unused goods;

E. The license fees required under Section 5.04.050 have been paid, and the operator of the business has a valid business license at the time of the auction. This section shall not be construed to exempt any person from the requirements of Sections 5.04.170 and 5.04.190 through 5.04.220 of this title.

(Prior code § 13-135)