Livingston Municipal Code Ch. 6 Auctions

For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.

PERMIT. A permit issued pursuant to this chapter.

PERMITTEE. Any person to whom a permit has been issued pursuant to this chapter.

PUBLISH, PUBLISHING, ADVERTISE, ADVERTISEMENT and ADVERTISING. Any and all means of conveying to the public notice of sale or notice of intention to conduct a sale, either by word of mouth, by newspaper advertising, by radio advertising, by magazine advertising, by handbills, by written notice, by printed notice and any and all means including oral, written or printed.

SALE. The sale, or an offer to sell, by public auction or otherwise, to the public, goods, wares and merchandise of any and all kinds and descriptions. Such SALE shall include a sale in connection with a declared purpose as set forth by advertising on the part of the seller that such sale is anticipatory to the determination, closing liquidation, wind up discontinuance, conclusion or abandonment of the business in connection with such sale, including, but not limited to, sales advertised to be “retirement sale”, “forced out of business sale”, “removal sale”, “loss of lease sale”, “bankrupt sale”, “fire sale”, “sale of bankrupt stock”, “liquidation sale” and any and all sales advertised in such manner as to reasonably convey to the public that, upon the disposal of the stock of goods on hand, the business will cease and be discontinued. Without limiting the generality of the term “sale by public auction”, such SALE shall include 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.

(Ord. 284, passed 6-13-1985)

No person shall publish or conduct any sale without first obtaining a permit therefor from the City Clerk in the manner provided in this chapter.

(Ord. 284, passed 6-13-1985)

Application for a permit to conduct a sale as required by § 3-6-2 shall be made to the City Clerk at least 60 days prior to the date of the sale, upon forms to be supplied to the applicant for that purpose. The application shall contain a statement subscribed to under oath or affirmation by the person, or, if the applicant is a firm or corporation, a member of the firm or officer of the corporation, applying for a permit to conduct such sale, which statement shall contain:

(A) General information. Generally, the name and address of the applicant; a description, by street location of the place where such sale is to be held; the length of time of its expected duration; and, the dates between which it is proposed to be conducted;

(B) Name of auctioneer. The name of the auctioneer, if any, who will conduct the sale, and whether any items of stock in trade have been added in expectation of such sale, and if so, a description of such items and when so added;

(C) Nature of occupancy. The nature of the occupancy, whether by ownership, lease or sublease and the effective date of termination of the occupancy;

(D) Advertising. The means to be employed in publishing the sale, together with the proposed language content in any advertisement; and

(E) Inventory of goods. An inventory of goods, wares and merchandise, item by item, to be sold at such sale, the wholesale value or cost to the applicant of each item and the quality and grade thereof, whether the article is new, used or rebuilt, the date of acquisition of such goods, wares or merchandise, and the persons from whom obtained and the place from which such goods were last taken. Each item must be numbered separately in the inventory and the number in the inventory must correspond to a number physically attached to such item.

(Ord. 284, passed 6-13-1985)

Upon filing an original application for a permit to conduct a sale, the applicant shall pay to the City Clerk a deposit fee in the sum of $50, and in addition thereto, such other business license fee as may be at that time or thereafter become applicable.

(Ord. 284, passed 6-13-1985)

(A) Upon receipt of the application and deposit, under §§ 3-6-3 and 3-6-4, the City Clerk shall refer such application to the City Manager, who shall cause an investigation thereof to be made. The City Manager shall cause each item of the inventory submitted to be checked with the actual item in the applicant’s place of business, and shall cause an investigation to be made to ascertain the truthfulness of the sworn statement submitted by the applicant, and to determine whether the items described in the inventory are a bona fide part of the applicant’s stock in trade. The applicant shall be charged the sum of $20 for each day, or fraction thereof, required to make such investigation. Such amount shall be deducted from the deposit made by the applicant with the City Clerk and the amount that remains in the hands of the City Clerk after such deduction shall be repaid to the applicant.

(B) If the deposit fee of $50 is insufficient to pay the cost of making the investigation, the City Manager shall notify the applicant in writing of that fact and shall set forth the estimated additional necessary expense for completing such investigation and the applicant shall deposit with the City Clerk such additional amount. If such additional amount is not deposited within five days after the receipt of such notice, the application shall lapse and any further proceedings for a permit must be pursuant to a new application.

(Ord. 284, passed 6-13-1985)

If the City Manager determines that a permit may be issued to the applicant, he or she shall notify the City Clerk of the days for which such permit shall be issued and the City Clerk shall then issue the permit.

(Ord. 284, passed 6-13-1985)

Every permit issued under this chapter shall give the name of the person to whom it is issued, the name of the auctioneer who will conduct the sale, the dates of the sale and the place where such sale may be conducted.

(Ord. 284, passed 6-13-1985)

The City Manager shall be represented at every sale under this chapter and shall cause each item offered for sale or sold to be checked with the inventory filed by the applicant with the City Clerk and shall cause to be entered on such inventory the date of the sale of each item and the price at which the same is sold. The person obtaining such permit shall pay daily in advance to the City Clerk an amount equal to the actual or prorated daily compensation paid or to be paid by the city to the person representing the City Manager at such sale, not exceeding the sum of $20 per day.

(Ord. 284, passed 6-13-1985)

It is unlawful for any person conducting a public auction or sale of the stock in trade of a wholesale or retail merchant to sell or offer for sale at such auction or sale any item of such stock to which there is not attached a tag, card, ticket or label containing a number referenced in the inventory as set forth in § 3-6-3 of this chapter. Such tag, card, ticket or label shall remain securely attached to such article and shall be delivered to the purchaser as a true and correct description by such reference of the article sold, and shall be prima facie evidence of intent to defraud in case such description referred to is not a true and correct description and representation of such article sold.

(Ord. 284, passed 6-13-1985)

Under no circumstances shall the inventory for sale at any public auction or sale include any goods or items which have not been on the premises for at least 90 days immediately preceding the filing of the application.

(Ord. 284, passed 6-13-1985)

No stock held on consignment shall be offered for sale at any public auction or sale.

(Ord. 284, passed 6-13-1985)

Upon commencement and throughout the duration of any sale, the permit issued shall be prominently displayed near the entrance to the premises. The duplicate original of the application and stock list pursuant to which such permit was issued shall also be posted.

(Ord. 284, passed 6-13-1985)

Suitable books and records shall be kept by the permittee and shall at all times be available for inspection.

(Ord. 284, passed 6-13-1985)

At the close of business each day, at a sale under this chapter, the stock list attached to the application shall be revised, and those items disposed of during such day shall be removed or stricken thereon, and no goods added to such list.

(Ord. 284, passed 6-13-1985)

The provisions of this chapter shall not apply to nor affect sales conducted by sheriffs, constables or other public or court officials, or to any person acting under the direction or authority of any court, state or federal, selling goods, wares and merchandise in the course of his or her official duties. Upon application therefor to the City Council, and upon good cause being shown, the City Council may waive any or all of the provisions of this chapter as to any sale and may impose other or different reasonable conditions for the issuance of a permit for conduct of such sale.

(Ord. 284, passed 6-13-1985)

No sale for which a permit has been issued under this chapter shall be conducted at any time, except between the hours of 9:00 a.m. and 6:00 p.m., on any day. No sale shall be conducted on Sundays and holidays. A permit shall not be issued to any person to conduct a sale during the period of time from December 1 to and including December 25 of any year. It is unlawful for any person to conduct, or cause to be conducted, any such sale during such period of time.

(Ord. 284, passed 6-13-1985)