Hawthorne Municipal Code Ch. 5.24 Auctions

The following words and phrases, whenever used in this chapter, shall be construed as defined in this section:

"Article"

means and includes any item of personal property, tangible or intangible, of whatsoever kind or nature.

"Auction" or "auction sale"

means an offer to sell or a sale of any property, real or personal, tangible or intangible, by public outcry to the highest bidder.

"Auction booth"

means and includes any booth, stand or space in an auction mart used or intended to be used for the conduct of an auction sale.

"Auction mart"

means and includes any place designed, intended or used for the conduct of two or more auctions simultaneously.

"Jewelry"

includes platinum, gold, silver, plated-ware, precious stones. semiprecious stones, watches, clocks and other articles of jewelry.

(Prior code § 6-1000)

A. Auction Sales Generally. Every person engaging in an auction, as principal, shall pay a license fee of five hundred dollars per year or fifteen dollars per day, except as otherwise provided herein.

B. Auctions at Auction Booths. Every person engaging in an auction, as principal, in an auction mart shall pay a license fee of two hundred dollars per year or twelve dollars per day for each auction booth used for such purpose.

C. Auction Mart. Every person operating an auction mart, whether licensed to engage in auctions therein or not, shall pay a license fee of five hundred dollars per year or fifteen dollars per day; provided, however, that the daily license fee shall accrue only on those days when an auction or auctions are held in such auction mart.

(Prior code § 6-1001)

Each applicant for a license to engage in an auction shall post with the director of licensing and code enforcement, prior to the issuance of any license, a cash or corporate surety bond, in the sum of five thousand dollars, conditioned upon the observance by applicant of all the provisions of this chapter and upon the truth of all the representations made in connection with the application for a license and in the course of any auction sale and as a guarantee that the purchase price of any article purchased will be returned to any purchaser upon return of the articles purchased and upon proof that any false or misleading statement or representation has been made concerning any article sold to said purchaser at said auction sale. Applicants for a license to engage in an auction in an auction mart need not post such bond if the person operating such auction mart has posted a bond as herein required which covers such applicant.

(Prior code § 6-1002.; Ord. 1284 § 1, 1983; Ord. 1903 § 1, 2007)

It is unlawful for any person to sell or offer for sale any jewelry at auction; provided, however, that the provisions of this section shall not 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 pursuant to any law of the state or of the United States, or the lawful order of any court, nor to the sale of unredeemed jewelry by pawnbrokers, loan companies and others in the manner provided by law, nor to the sale or offering for sale of jewelry for the purpose of satisfying a lien, nor to any other sale or offering for sale of jewelry at auction where such method of sale is specifically authorized by law, nor to any person who has been engaged in the business of selling jewelry at retail in the city continuously for a period not less than one year and who disposes of his or her stock on hand for the purpose of closing out his or her business, provided such person obtains a permit to conduct an auction of articles of jewelry as hereinafter provided and complies with the regulations contained in this chapter.

(Prior code § 6-1003)

Applications for a permit to engage in an auction of articles of jewelry shall be under oath, shall be filed with the director of licensing and code enforcement not less than thirty days prior to the proposed auction, and shall contain the following information:

A. All facts regarding the closing out of applicant's business;

B. All facts in regard to conducting the proposed auction and the place of conducting the same, including a full and correct inventory of the articles to be sold, the quality, quantity and grade of each item, the wholesale value thereof, the applicant, the place from which last taken, and all details necessary to fully identify the same;

C. The period of time over which the proposed auction is to continue;

D. Such other information as the city may require.

(Prior code § 6-1004.; Ord. 1284 § 1, 1983; Ord. 1903 § 1, 2007)

Upon receipt of an application for a permit to conduct a jewelry auction, the director of licensing and code enforcement shall refer the same to the chief of police for investigation and report. After receipt of the report of the chief of police, if the city manager is satisfied that applicant is of good moral character, that the jewelry proposed to be sold at auction is a bona fide part of applicant's stock in trade and not secured, purchased or brought into his or her place of business for or in anticipation of said 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, the director of licensing and code enforcement shall issue such permit to the person applying for the same, The city manager, in considering the application and the attending facts, shall exercise a reasonable and sound discretion in granting or denying the permit applied for.

(Prior code § 6-1005.; Ord. 1284 § 1, 1983; Ord. 1903 § 1, 2007)

Permits to conduct auctions of jewelry shall not be granted for periods exceeding thirty days, Sundays and legal holidays excluded; provided, however, that if it shall be made to appear, upon sworn application to the director of licensing and code enforcement at any time during said 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 director of licensing and code enforcement, upon the same terms and conditions as the original permit, granting authority to continue such sale for a further period of thirty days.

(Prior code § 6-1006.; Ord. 1284 § 1, 1983; Ord. 1903 § 1, 2007)

It is unlawful for any person to engage in any auction on Sunday.

(Prior code § 6-1007)

It is unlawful for any person to conduct an auction without filing with the director of licensing and code enforcement a full, correct and verified inventory of all items or all articles to be offered for sale or to be sold at said auction sale. Such inventory shall be delivered to the chief of police.

(Prior code § 6-1008.; Ord. 1284 § 1, 1983; Ord. 1903 § 1, 2007)

It is unlawful for any person to offer for sale by auction or to sell at auction any article to which there is not attached a card or ticket or label containing a true and correct statement plainly written or printed in English specifying the kind and quality of such item and whether new or used, and in the case of precious stones and metals, the percentage of karat or purity thereof. 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 offered for sale or sold by auction as such or as part of an article of jewelry, such written statement shall set forth the true name, weight and quality of such stone or stones. When semiprecious stones are offered for sale or sold by auction as such or as part of an article of jewelry, such written statement shall set forth the true name of said stones. When imitations of precious or semiprecious stones are offered for sale or sold by 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 and clocks are sold, the true names of the manufacturers shall be stated in writing and no parts of the movement or mechanism shall be substituted or contain false and 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 tag or label shall remain securely attached to any such article or 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 and representation of such articles sold.

(Prior code § 6-1009)

Every person engaging in an auction sale shall issue a receipt to each purchaser for any item purchased, clearly identifying such item by reference to the label and acknowledging receipt of money paid or other thing of value received for such purchase price or part thereof.

(Prior code § 6-1010)

It is unlawful for any person, his or her agents or employees engaging in an auction 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 sold or offered for sale during such auction.

(Prior code § 6-1011)

No person engaging in an auction shall use any person as a false bidder for the purpose of increasing the price of any property sold or offered for sale at such auction; nor shall any person act as a bidder, or what is commonly known as a "capper," "booster," or "shiller," or offer to make any false bid to buy or pretend to buy at such auction.

(Prior code § 6-1012)

It is unlawful for any person, after an article has been sold at auction, to pay to the purchaser a secret rebate or secret discount on such purchase.

(Prior code § 6-1013)