For the purposes of this chapter, the following definitions shall apply:
"Auction"
means a public sale of property by public outcry to the highest bidder.
"Auctioneer"
includes and comprehends the following:
1. 
Any person who sells or offers to sell by public outcry to the highest bidder, when bids are called for, any real estate or interest therein, or any goods, wares, merchandise, or other personal property, new or used, in any tent, building or structure, or on any of the streets or sidewalks, or in any other place in the City where the general public is permitted to attend and offer bids;
2. 
Any person who advertises as a public auctioneer, or in any manner holds himself or herself out as an auctioneer as defined in subdivision 1 of this definition for public patronage, or shall receive a fee or commission for services as such.
"Auction house"
means a fixed location wherein goods, wares, merchandise or other items of personal property, new or used, are offered for sale at auction as an established auction business.
(Ord. 557 § 3, 2019)
A. 
The following permits are required for the following classes established for licensing auctioneers, auctions and auction houses:
1. 
Class A Permit. Every auctioneer;
2. 
Class B Permit. Every person who sells or offers for sale at auction any goods, wares, merchandise or other personal property, new or used, other than pursuant to Section 4.05.080 at a place other than an auction house;
3. 
Class C Permit. Every person who operates an auction house;
4. 
Class D Permit. Every person who sells or offers for sale at auction jewelry in a bona fide retiring from business disposition of stock on hand pursuant to Section 4.05.080.
B. 
Each applicant for any class of permit is required to obtain a business license and regulatory permit.
(Ord. 557 § 3, 2019)
Each application for a Class A, Class C or Class D permit must be accompanied by evidence of a bond filed with the Secretary of State as required by Title 2.95, Part 4, Division 3 of the Civil Code.
(Ord. 557 § 3, 2019)
The fee for each license and permit shall be due and payable to the issuing officer at the time of application for the license and permit in an amount established by resolution of the City Council.
(Ord. 557 § 3, 2019)
Upon approval of any application, the permit applied for shall be issued. If the permit is a Class B or Class C permit, it will designate the store or other place in the City where the applicant proposes to conduct an auction or auctions. Class A and Class C permits are annual permits.
(Ord. 557 § 3, 2019)
No auction may be conducted by any person other than one holding a Class A permit. Where the sale of any goods, wares, merchandise, or other personal property, new or used, is by auction other than at an auction house, such sale must be held on successive days, Sundays and legal holidays excepted, and must not continue for more than 30 days, provided, that where such goods, wares, merchandise or other personal property, new or used, is the stock on hand of a person, firm, corporation or association which is bona fide disposing of such stock for the purpose of retiring from business, the City Council may upon application grant such additional time for the conduct of such auction as it may deem necessary under the circumstances.
(Ord. 557 § 3, 2019)
A. 
Any person intending to dispose of stock on hand by sale at auction at retail, which sale is to be advertised or publicly announced as a "close-out sale," a "going out of business sale," a "quitting business sale," or similar type of sale, must make a written application, verified under oath, to the treasurer at least 15 days before the intended sale is to begin. The application must specify the following:
1. 
The name and address of the applicant;
2. 
The location and purpose of the sale and its expected duration;
3. 
The name of the auctioneer who will conduct the sale;
4. 
The inventory itemizing in detail the quality, quantity, kind or grade of each item of goods, wares, and other articles to be sold, with the wholesale market thereof; and
5. 
A declaration that the merchandise or property to be sold at auction is a bona fide part of the applicant's stock in trade, that the items listed in the inventory do not exceed by 25% the unit volume of the inventory carried by the applicant 90 days prior to the application and that the items were not secured, purchased, or brought into the place of business for or in anticipation of the sale.
B. 
The inventory set forth in the application must not exceed by 25% the unit volume of the inventory carried by the applicant 90 days prior to application. Any inventory in excess of the foregoing is cause for refusal to issue any permit; provided further, that whenever the stock on hand to be sold at auction as described in this section is a stock of jewelry as described in Section 4.05.080, then application must be made for a Class D permit.
(Ord. 557 § 3, 2019)
It is unlawful for any person to sell, dispose of, or offer for sale, or cause or permit to be sold, disposed of or offered for sale at auction in the City any platinum, gold, silver, plated ware, precious stones, semi-precious stones, watches or other jewelry, new or used, whether the same shall be the property of the person, or the property of another; provided, however, that the foregoing provisions of this section do not apply to the following:
A. 
The sale at auction of the stock on hand of any person that, for the period of one year preceding such sale, has been continuously in business in the City as a retail or wholesale merchant of platinum, gold, silver or plated ware, precious stones or semi-precious stones, watches or other jewelry, new or used, where such person is bona fide disposing of its stock on hand for the purpose of retiring from business.
B. 
The sale at auction of such stock on hand of any person as described in subsection A of this section, where the stock has been purchased by a holder of Class C permit under this chapter.
(Ord. 557 § 3, 2019)
A. 
It is unlawful for any person to offer for sale or sell, either for itself or for another, at auction any of the following articles without a label meeting the requirements of this section. If the article is:
1. 
Platinum, gold, silver, plated ware, precious stone, semi-precious stones, watches or other jewelry, new or used, there must be securely attached to the article a tag, card or label containing a true and correct statement of the kind and quality of the material or materials of which the article is composed;
2. 
Of metal jewelry, such statement must contain a true and correct statement of the kind and quality and/or weight of the metal of which article is made and composed, and the percentage or carat of purity of such metal or article;
3. 
Plated or overlaid then such statement shall contain a true statement of the kind of plate and the percentage of purity of such plate, and the kind of metal or material covered;
4. 
A precious or semi-precious stone, such statement must contain the true name, weight, quality, color and fineness of said stone;
5. 
A watch, such statement must contain the true name of the manufacturer thereof; and in case any used movement or substitute part of movement of any watch be offered for sale in a new case, such fact must be set forth in the statement.
B. 
In the event that any auction sale has been advertised as offering such articles from a designated estate or named source, then, the tag or label on the article must state the designated or named estate or source from which that particular article was obtained.
C. 
No article subject to the labeling requirements of this section may bear any false, misleading name, description or entry. It is deemed prima facie evidence of intent to defraud or violate the provisions of this chapter where such article so sold or offered for sale fails to compare with the description indicated on the tag, card or label, as provided in this section.
D. 
Each tag, card, or label must remain securely attached to any such article sold or offered for sale, and must be delivered to the purchaser by the person selling the same as a correct description and representation of the article so sold.
E. 
In case there are more than one of the same kind of article to be sold, then such tag, card or label must indicate the chronological number of the respective articles of the same class so sold.
F. 
The auctioneer conducting the sale must at the end of every 24 hours, deliver or mail to the Sheriff an itemized statement of all sales of such articles made during the preceding 24 hour period. This itemized statement must be subscribed by the auctioneer conducting the sale and any false statement submitted by said auctioneer to the Sheriff is deemed sufficient cause for the suspension or revocation of a permit.
(Ord. 557 § 3, 2019)
Every auctioneer, each day, at the beginning of an auction in the City must fully state the terms and conditions upon which the sale or sales will be made, and that a buyer must settle for any article so purchased within a specified period of time after the purchase not to exceed 24 hours.
(Ord. 557 § 3, 2019)
It is the duty of the person whose merchandise is being sold at auction to give each and every purchaser of an article that sells for one dollar or more, an invoice containing a full description of the article, the selling price, together with a statement giving each and every warranty under which the article was sold. Duplicate copies of invoices shall be kept for one year by such person.
(Ord. 557 § 3, 2019)
It is made unlawful for any person selling property at auction or conducting or assisting in carrying on or conducting an auction:
A. 
To knowingly and intentionally make any statement which is false in any particular, or which has a tendency to mislead any person present, or to make any misrepresentation whatsoever or at all, as to the quality or quantity or character or present condition or value or cost or general selling price of any property, whether new or used;
B. 
To have or employ or permit any person to be or take part in, or for any person to act as a capper or by-bidder, booster or puffer, or to make any fictitious or fraudulent bid, or bid not made in good faith or not intended to be consummated by a sale;
C. 
To ring any bell or sound any other loud or noisy instrument for the purpose of attracting attention to any auction;
D. 
To offer or attempt to dispose of any property at any auction in blind packages or any property not at the time actually exhibited to public view, or to the view of the person bidding on same, except that property which is described in Sections 2081 and 2081.1 of the Civil Code of the State of California;
E. 
To offer or attempt to dispose of goods, wares, or merchandise at an auction between sunset and sunrise, unless such goods, wares or merchandise have been on display during the daylight hours of the business day preceding such sale;
F. 
To refuse, fail, or neglect to deliver complete and immediate possession to the purchaser of any property upon the payment of the purchase price thereon, in accordance with the terms of the sale;
G. 
To substitute any article in lieu of the article offered to and purchased by the bidder, except with the bidder's knowledge and consent;
H. 
To sell or offer for sale at auction any property whatsoever without first having a valid and unrevoked license or permits therefor, as required by this chapter.
(Ord. 557 § 3, 2019)
Nothing contained in this chapter applies to the following:
A. 
Judicial sales;
B. 
Sales by executors and administrators;
C. 
Sales made upon execution or by virtue of any other process issued by a court;
D. 
Sales made by any public officer in his or her official capacity required to be made under the laws of the United States or the State of California or under the Administrative Code, this code, or any ordinance;
E. 
Sales of livestock and sales of heavy construction equipment;
F. 
Sales of property by any social organization for the purpose of raising funds to promote or further its objects, or for any public purpose whatsoever;
G. 
Sales conducted under the provisions of the Uniform Warehouse Receipts Act;
H. 
Sales made under a nonstatutory assignment for the benefit of creditors generally, which sale shall be conducted by an auctioneer permitted pursuant to this chapter, where the sale is limited to the stock in trade and fixtures on the premises in the City at the time of the assignment and where the sale is held on the premises;
I. 
Sales made by or on behalf of permitted pawnbrokers of unredeemed pledges in the manner provided by law.
(Ord. 557 § 3, 2019)