[1]
The provisions of the chapter are exempted from the operations of the business and occupation tax, Chapter 5.05 LMC.
It is unlawful for any person, except when acting under and by virtue of legal process, and except when conducting an actual bona fide "going out of business" public auction sale, to sell or offer for sale at public auction within the city, any gold, silver, plated ware, precious stones, watches, clocks or jewelry, without first having a license so to do from the city as hereinafter provided.
(Ord. 202 § 1, 1928)
(1) 
A sale, or offering for sale to the highest bidder of any gold, silver, plated ware, precious stones, watches, clocks or jewelry in any building, or in any of the streets, alleys or public places of the city where any and all persons who choose are permitted to attend and offer bids, shall be deemed to constitute a "public auction" within the meaning of this chapter.
(2) 
"Fill in"
as used in this chapter means such other gold, silver, plated ware, precious stones, watches, clocks or jewelry as may be added to the "stock on hand" as defined in subsection (5) of this section intended for sale at public auction.
(3) 
"Going out of business"
means the actual permanent retirement from the carrying on of such business in the city.
(4) 
"Person"
as used in this chapter means individuals, firms and corporations.
(5) 
"Stock on hand"
as used in this chapter means such gold, silver, plated ware, precious stones, watches, clocks or jewelry as merchants engaged in the sale of such articles ordinarily and usually carry for sale throughout the year.
(Ord. 202 § 7, 1928)
(1) 
Any person desiring to hold an auction sale of any of the articles mentioned in LMC § 5.16.010 shall make application therefor to the city clerk.
(2) 
The application shall state the name and address of the applicant, place where the sale is to be conducted, the name and address of the person, firm or corporation applying for the same, and shall have attached to it an inventory of the stock on hand, setting out the quantity, quality, kind or grade of each item, and the wholesale market value thereof.
(3) 
The application shall be accompanied with a fee of $30.00 for each day the auction is to be conducted, with a bond in the sum of $2,500 running to the city, executed by the applicant as principal, with a surety company authorized to do business in the state as surety, and shall be conditioned for the faithful observance of all of the provisions of this chapter, and shall also undertake to indemnify any purchaser at such auction sale who may be adjudged in any court of competent jurisdiction to have suffered by reason of misrepresentation at such sale.
(Ord. 202 § 2, 1928; Ord. 1543 § 1, 1972)
No license shall be issued for the sale or offering for sale at public auction of the stock on hand of any person who shall not have been for the period of six months next preceding the date of such application continuously engaged in the city in the business of a wholesale or retail merchant of gold, silver, plated ware, precious stones, watches, clocks or jewelry; nor shall any license be granted to any person who shall within the preceding 12 months have conducted another auction sale of the character provided for in this chapter. All auctions shall be held continuously on successive days, Sundays and legal holidays excepted, and shall not last for more than 60 auction days.
(Ord. 202 § 3, 1928)
(1) 
In addition to the "stock on hand" as defined in LMC § 5.16.020(5), such licensee may sell at public auction additional gold, silver, plated ware, precious stones, watches, clocks or jewelry defined as "fill in" in LMC § 5.16.020(2); provided the wholesale market value of such "fill in" goods shall not exceed in value 50 percent of the wholesale market value of the stock on hand, set forth in the inventory filed with the application for the license.
(2) 
Before any "fill in" is sold or offered for sale there shall be filed with the city clerk a statement setting out the quality, quantity, kind or grade of each item, together with the wholesale market value thereof, and no such "fill in" shall be sold until the city council shall have first granted its written permission therefor.
(Ord. 202 § 4, 1928)
It is unlawful to sell or offer for sale at such auction any "fill in" article unless in each and every advertisement of whatsoever kind with reference to said auction there be contained a clear and unequivocal statement of the fact that the goods and merchandise therein described as "fill in" have been added to the stock on hand, together with a statement of the total wholesale value thereof, such statement shall be in type or writing of equal prominence with each and every other statement contained in said advertisement. No person acting as auctioneer at such sale shall sell or offer for sale any article described as "fill in" without first stating the fact in a clear and audible tone of voice to all persons present at the auction.
(Ord. 202 § 6, 1928)
It is unlawful for any licensee, his agents or employees to misrepresent any article offered for sale at such auction or make any misstatements that are false in any particular, or that have a tendency to mislead purchasers.
(Ord. 202 § 5, 1928)
The city council may revoke any license granted hereunder for the violation of the provisions hereof, and no person whose license shall have been revoked by the city council shall be entitled to another license before the expiration of one year from the date of the revocation.
(Ord. 202 § 9, 1952)