Delano Municipal Code Ch. 6.16 Jewelry Auctions

The following words and phrases have the meaning hereinafter specified, unless a different meaning clearly appears from the context:

A. "Auction," "public auction," and "auction sale" mean and include a sale of offering for sale of any jewelry as hereinabove defined 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" includes platinum, gold, silver, plated ware, precious stones, semi-precious stones, watches, clocks and other articles of jewelry;

C. Whenever terms "permittee," "applicant," or "auctioneer" are used, they mean not only the person who has respectively applied for a permit, been granted a permit, or is conducting an auction under such a permit, but also the agents, officers, employees or members of the firm of such person;

D. "Sell" means sell, offer for sale or advertise for sale in the city;

E. "Sold" means same in past tense.

(1959 Code §3665).

It is unlawful for any person to sell, at public auction, any jewelry as hereinabove defined; provided, however, that any person who has been engaged in the business of selling such jewelry at retail in the city continuously for a period of not less than one year, may obtain a permit as hereinafter provided, 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 so obtaining such permit shall be subject to all the regulations and restrictions contained herein.

(1959 Code §3666).

The applicant for a permit to conduct a public auction of jewelry shall make application therefor not less than thirty days previous to the intended auction to the manager and at the time of such application shall pay a minimum filing fee of twenty-five dollars; provided, that if the net inventory exceeds the sum of five thousand dollars then, in that event, the fee shall be twenty-five dollars plus five dollars for each one thousand dollars or fraction thereof of net inventory exceeding five thousand dollars. Such application shall be in writing on forms provided by the manager 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 the 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 so 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 manager. Such application shall specify the proposed period of time over which such proposed sales at public auction shall continue, which period shall not exceed thirty days, Sundays and legal holidays excluded. Provided, that if it is made to appear upon sworn application to the manager at any time during the period of thirty 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 said manager upon the same terms and conditions as the original permit, granting authority to continue such sale for a further period of thirty days.

Upon receipt of such application, the manager shall refer the same to the chief of police for investigation and report.

(1959 Code §3667).

After receipt of the report of the chief of police, if the manager shall be 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 hereinafter provided for.

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.

The manager in considering the application and the attending facts shall exercise a reasonable and sound discretion in granting or denying the permit applied for.

(1959 Code §3668).

No such permit shall be granted until the applicant has filed with the manager a surety bond in the sum of two thousand five hundred dollars 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 of California pertaining to auctions and closing-out sales, and shall also indemnify any purchaser at the public auction who suffers any loss by reason of any misrepresentations 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.

Such bonds shall contain the further provisions that it inures 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 the bond, and that any person or persons named in the bond, and the surety or sureties upon the bond, and that the bond may be sued and recovered upon in several actions until the whole penalty is exhausted.

(1959 Code §3669).

Whenever the manager finds that the holder of a permit under this chapter 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 such 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 forty-eight hours previous notice in writing by personal service upon him or upon the auctioneer conducting the auction, or by mail addressed to him at his place of business in the city or the place where the auction is being conducted as shown on his application. It is unlawful for any person to conduct an auction sale as herein defined after his permit to do so has been revoked.

(1959 Code §3670).

Should any applicant or applicants be dissatisfied with the action of the manager not to grant a permit or for the revocation of a permit, then the applicant may make written objection to the council setting up the grounds of dissatisfaction. Upon the receipt of such objection, the council shall set the matter for hearing at its next regular meeting giving written notice thereof to the applicant. Upon such hearing the council may sustain, suspend or overrule the decision of the manager and its decision shall be final and conclusive. Pending the hearing before the council, the decision of the manager shall remain in full force and effect and any reversal thereof by the council shall not be retroactive but shall take effect as of the date of the council's decision.

(1959 Code §3671).

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 of 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 names of the stones. When imitations of precious or semiprecious stones are offered for sale or sold at auction, as such as or as part of an article of jewelry, the 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 name 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 and 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.

(1959 Code §3672).

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 manager with the application for a permit hereunder.

(1959 Code §3673).

It is unlawful for any permittee, his agent, 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.

(1959 Code §3674).

It is unlawful for any auctioneer or for any person 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.

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 an auction sale.

(1959 Code §3675).

A. It is unlawful for any auctioneer conducting an auction sale, or 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 the premises where the same may be heard on the public street or sidewalk, in front of the 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 conducting an auction sale, or his agents, servants or employees, to use a searchlight or similar light or 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.

(1959 Code §3676).

It is unlawful for any person to conduct any auction sale between the hours of six p.m. of any day and eight a.m. of the following day.

(1959 Code §3677).

Nothing in this chapter contained shall apply to any public officer or officer of any court, who in pursuance of his duty as such officer, conducts within the city an auction sale pursuant to any law of the State of California 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.

(1959 Code §3678).

Any person desiring to hold a closing-out sale in the city must obtain a closing-out sale license. Application for such license shall be made to the manager in writing, which application shall set forth:

A. The location of the proposed sale;

B. The nature of the occupancy;

C. The reason for the proposed sale;

D. A full, true and correct inventory or statement setting forth the amount and description of the goods, wares, merchandise and personal property to be sold at such sale;

E. The dates upon or during which the proposed sale is to be conducted; and

F. Be accompanied by the required license fee as established in the following schedule:

Schedule. If the applicant has been operating the business to be closed out under a valid city business license for:

1. A period of six months or less prior to the date the application is filed, one hundred ten dollars,

2. More than six months but less than two years, twenty-seven dollars and fifty cents,

3. More than two years, five dollars and fifty cents.

The licenses issued for the respective fees hereinabove set forth in this schedule shall authorize the conducting of the respective sales therein licensed upon the days mentioned in the application. It is provided, however, that all sales made under such license must be made within the period of thirty consecutive days including and following the first day of sale specified in the license. If the sale is not completed within the thirty-day period, the licensee shall have the right to renew the license for an additional period of thirty days immediately following the first period upon payment of an additional fee which shall be equal to one-half of the original fee paid for such closing-out sale license; but the manager shall not issue any such license for a longer period than a combined total of sixty days.

(1959 Code §3679).

Any person violating any of the provisions of this chapter is guilty of a misdemeanor, punishable as provided in Chapter 1.16.

(1959 Code §3680).