Petaluma Municipal Code Ch. 6.12 AUCTIONS1

1 Editor’s Note: For regulations governing jewelry auction sales, see Chapter 6.24 of this code.

The following words and phrases when used in this chapter shall have the meanings hereinafter speciRed, unless

a diUerent meaning clearly appears from the context:

A. "Auction, public auction and auction sale" means and includes a sale or oUering for sale of any goods, wares

or merchandise 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 oUer bids. 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 of merchandise, the seller or auctioneer announces a price at which

he will sell an article of merchandise and then, if no sale occurs, increasingly adds additional articles of

merchandise to that originally oUered with or without varying the previously announced price, until the buyer

Rnally is induced to buy the accumulated articles at the Rxed price. 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 of merchandise, the seller or auctioneer announces a price at which he will sell one or more articles

of merchandise and then, if no sale occurs, decreases the price of that oUer until a buyer is Rnally induced to buy

the article oUered for sale;

B. "Public auction room" means the premises designated in the application Rled with the chief of police by any

person desiring to engage in the calling of auctioneer when and after the permit has been granted by the chief of

police, and during the time the premises are used for conducting legal auction sales under and pursuant to the

permit issued.

(Ord. 353 NCS §§1.0-1.4; prior code §5.1.)

It is unlawful for any person to sell, or attempt to sell, by auction or to advertise for sale by auction, any goods,

wares or merchandise and falsely represent or pretend the same to be, in whole or in part, a bankrupt or insolvent

stock, or damaged goods, or goods saved from Rre, or to make any false statements as to the previous history,

ownership, quality or character of such goods, wares and merchandise, or for any person to oUer for sale at

auction any article and induce its purchase by any bidder and afterwards to substitute any article in lieu of that

oUered to and pictured by the bidder, except with the bidder’s knowledge and consent. (Ord. 353 NCS §4.0; prior

code §5.2.)

It is unlawful for any person to falsely act as bidder in the capacity of what is properly known as a "capper,"

"booster" or "shiller" merely for the purpose of increasing the amount of the bids at any auction sale or place for

conducting public auctions, or to oUer or make any false bid, or pretend to buy any article sold or oUered for sale

at any public auction. (Ord. 353 NCS §4.0; prior code §5.3.)

It is unlawful for any person to sell or oUer for sale, or expose for sale by public auction, any personal property at

any place other than in a public auction room as speciRed in the application for a permit to conduct such auction.

(Ord. 353 NCS §5.0; prior code §5.4.)

It is unlawful for any person conducting an auction sale, or employee, 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 such premises where the same may be

heard on the public street or sidewalk in front of the premises when there is conducted an auction sale, before,

after or during the sale, for the purpose of attracting the public to such auction sale. (Ord. 353 NCS § 12.0; prior

code §5.5.)

It is unlawful for any person conducting an auction sale, or employee, to use a searchlight or similar light, or to

solicit or to permit the soliciting by music, singing or loud or unusual noises for the purpose of attracting the

public to an auction sale. (Ord. 353 NCS § 12.0; prior code §5.5.)

The provisions of this chapter shall not apply to vehicles, automobiles, machinery, farm products, including poultry

and livestock, and such bulky articles as have been usually sold in or near warehouses, or in the public streets or

on the wharves, nor to any sales made under the direction of any court or pursuant to any law or judicial

proceeding nor to any sale by executors or administrators. (Ord. 353 NCS §2.1; prior code §5.6.)

It is unlawful for any person to engage in the calling of auctioneer, or to hold, conduct, carry on or maintain any

auction room or place for holding public auction sales, or to advertise or hold himself out to the public as an

auctioneer or to conduct, carry on or maintain any sale of goods by public auction in the city, unless there exists a

valid permit therefor, granted and existing in compliance with the provisions of Sections 6.12.080 through

6.12.150 and unless the license fees required by Chapters 6.04, 6.08, 6.28 and 6.36 or any other ordinance of the

city shall have been paid by the person holding such permit. (Ord. 353 NCS §2.0; prior code §5.7.)

In order to secure a permit to conduct an auction in the city, the applicant for the permit required by Section

6.12.080 must be a citizen of the United States, and shall have been a resident of and legally engaged in business

in this state for two years immediately preceding the date of Rling the application for a permit. (Ord. 353 NCS §3.1;

prior code §5.8.)

Upon receipt of an application for a permit to conduct a public auction as described in Section 6.12.080, the city

clerk shall refer the same to the chief of police for investigation and report. Thereupon, the chief of police shall

cause an investigation to be made of the moral character and reputation of the applicant and the person who is to

conduct the sale. If the investigation by the chief of police discloses that neither applicant nor any of its oTcers,

directors or members have violated the provisions of this chapter, he shall report to the city clerk that such an

application should be issued; otherwise he shall report that the application be revoked. (Ord. 353 NCS §7.0; prior

code §5.9.)

No person shall engage in the calling of an auctioneer in the city, unless, in addition to the permit required by

Section 6.12.080, he shall have Rled with the city clerk a bond conditioned for the faithful performance of his

duties, and of all the provisions of this chapter and all other applicable ordinances of the city, which bond shall be in the principal amount of Rve thousand dollars, payable to the city, and shall be signed by two or more sureties,

each of whom must be worth the sum, or by a surety company. The bond shall be approved by the city manager

and the city attorney. For every violation of any of the provisions of this chapter pertaining to the calling of

auctioneer, or to auctions, in addition to such penalty as may be otherwise provided for such violation, such

auctioneer shall forfeit to the city the sum of two hundred Rfty dollars, which amount shall be recoverable upon

the bond. (Ord. 353 NCS §3.2; prior code §5.10.)

The bond required in Section 6.12.110 shall indemnify any purchaser at the public auction held by the holder of

such a permit, who suUers any loss by reason of any misrepresentations or deception made or practiced by the

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.

The bond shall contain the further provision that it insures to the beneRt of any and all persons who may be

damaged by reason of any failure on the part of the person made therein to comply with the provisions of the

bond, and that any person so damaged may maintain an action thereon against the person named in the bond,

and the surety upon the bond, and that the bond may be sued and recovered upon in several actions until the

whole penalty is exhausted. (Ord. 353 NCS §3.2; prior code §5.11.)

In the event the chief of police Rles an unfavorable report of his investigation of an application for a permit as

required by Section 6.12.080, or the city clerk denies same, the applicant shall have the right to Rle a written

appeal to the city council within ten days after notice of the denial. Thereafter the council shall set such appeal for

hearing before it, and hear the appeal within twenty days after the notice of appeal. Notice of the hearing shall be

published once in the oTcial newspaper not less than Rve days before the hearing, and a copy thereof mailed to

the applicant at the address shown on the application. After the hearing, the council may grant the application for

a permit, or if it Rnds that the conduct of an auction at the location as shown on the application, or for any other

reason, would be contrary to this chapter or any ordinance of the city, or would constitute a public nuisance, the

application may be denied. The decision of the city council shall be Rnal. (Ord. 353 NCS §7.1; prior code §5.12.)

Any permit granted under Sections 6.12.080 through 6.12.150 may be suspended or revoked by the chief of police

when it appears to the chief that the business or calling of the person to whom the permit was granted is

conducted in a disorderly or improper manner, or in violation of any law of the state or of any ordinance of the

city, or that the place where such business or calling is being conducted or maintained is not a proper or suitable

place in which to conduct the business or calling. (Ord. 353 NCS §9.0; prior code §5.13.)

Complaints to suspend or revoke permits granted by the chief of police must be in writing, signed by the person

making the complaint and Rled with the chief of police, and a copy thereof, certiRed by the chief of police, must be

served upon the party complained against, or upon the person in charge of the place of business at least forty-

eight hours before the time set for the hearing of the complaint. Upon the suspension or revocation of the permit,

the license issued thereon shall immediately terminate or be suspended during such time as the chief of police

shall determine. The holder of a suspended or revoked permit shall have the same right of appeal to the city

council pursuant to the same procedure provided for in Section 6.12.130 in the case of denial of an original

application for a permit. (Ord. 353 NCS §9.0; prior code §5.14.)