[HISTORY: Adopted by the City Council of the City of Paterson 12-18-1979 by Ord. No. 79-111 as Ch. 9, Art. 1, of the 1979 Revised General Ordinances of Paterson. Amendments noted where applicable.]
GENERAL REFERENCES
Bazaars — See Ch. 129.
Garage sales and flea markets — See Ch. 249.
Motor vehicle junk dealers — See Ch. 287.
Peddling and soliciting — See Ch. 367.
Close-out sales — See Ch. 395.
Secondhand dealers — See Ch. 399.
A. 
No person shall act as a public auctioneer and no person shall conduct an auction sale, in whole or in part, or cause any public auction to be held in the City without first applying for and obtaining the appropriate license therefor in accordance with the provisions of this chapter.
B. 
The provisions of this chapter shall not be applicable to sales conducted by sheriffs, constables, sergeants at arms, executors, administrators, assignees of insolvent debtors, trustees in bankruptcy, receivers or public officers acting under judicial process nor to special one-day auction sales as provided for in § 125-10 of this chapter.
A. 
Any person desiring a public auctioneer's license under this chapter shall file an application, in writing and under oath, with the Licensing Division on forms approved by the Council.
B. 
The application shall set forth the following information:
(1) 
The applicant's name, residence address and length of time of continuous bona fide residence in the county immediately prior to making the application, if any.
(2) 
Places where the applicant has resided for a period of three years immediately prior to making the application.
(3) 
Whether the applicant is a citizen of the United States.
(4) 
Whether the applicant has ever been convicted of a crime.
(5) 
The experience the applicant has had as an auctioneer or in the auction business.
C. 
The application shall be accompanied by the following:
(1) 
A photograph, two inches by two inches, of the applicant taken within one year of the application.
(2) 
The license fee prescribed in § 125-7C of this chapter, which fee shall be returned if the license is denied.
A. 
Any person desiring a license to conduct a public auction sale shall file an application, in writing and under oath, with the Licensing Division on forms approved by the Council.
B. 
The application shall set forth the following information:
(1) 
If the applicant is a sole proprietor or partnership, the full name and residence address of the proprietor or of all the partners.
(2) 
If the applicant is a corporation, the date and state of incorporation, corporate name, business address and the name and address of the registered agent.
(3) 
The street address and description of the premises where the auction sale is to be held and the nature of the applicant's occupancy of said premises, whether by lease or sublease, and the effective date of termination of such occupancy.
(4) 
The true name and address of the owner of the goods, wares and merchandise to be offered for sale at the auction.
(5) 
The number of licenses which have been granted to the applicant to conduct auction sales within the City within a period of two years prior to the date of the filing of this application, and whether the applicant has ever had such license denied or revoked.
(6) 
The experience the applicant has had in the auction business.
(7) 
Whether the applicant has ever been convicted of a crime.
C. 
The application shall be accompanied by the following:
(1) 
A complete and detailed inventory of the goods, wares and merchandise to be offered for sale at the auction. Each item on said inventory shall be described in such manner (by serial number, distinctive markings, size, weight or other description) as to be readily identifiable. Said inventory shall be attached to and become a part of the application.
(2) 
The license fee, prescribed in § 125-8C of this chapter; provided, however, that if the application is disapproved by the Council, the Licensing Division shall retain $10 out of the license fee to defray the cost of investigating the statements contained in the application and the balance of the license fee shall be returned to the applicant.
A. 
As a condition precedent to the granting of the license to engage in an auction sale or to act as auctioneer, the applicant shall enter into and deliver to the Licensing Division a bond in favor of the City with two responsible freeholders as sureties or, in lieu thereof, a bond of a surety company authorized to do business under the laws of the State of New Jersey, in the sum of $5,000. Before issuance of the license, the Licensing Division shall approve the sufficiency of the sureties, and the Corporation Counsel shall approve the form of the bond.
[Amended 12-19-1995 by Ord. No. 95-068]
B. 
The surety bond described in the preceding subsection shall be conditioned upon the due observance of all ordinances of the City respecting the conduct and operation of auctioneers and the auction business at any time during the continuance of such business. The bond shall be for the benefit of any person who recovers a judgment against any licensee under this chapter by reason of any damage sustained by such person as a result of having purchased any article or commodity at a public auction sale, conducted or operated by said licensee, due to fraud or deceit practiced in advertising, selling or effecting such purchase or sale. The surety bond shall be for the protection of persons and property and for the preservation of the safety and property of the City and its inhabitants and as may be required by any statute or City ordinance or regulation.
A. 
The Licensing Division shall notify the applicant in writing of the date, time and place of the public hearing before the Council on application for a license to conduct a public auction sale.
B. 
The applicant shall then publish a notice of said application once a week during two consecutive weeks next preceding the date of said hearing in a daily newspaper published and circulated in the City. The notice shall contain the name and address of the owner of the goods, wares and merchandise to be the object of the sale, the general nature of the goods, wares and merchandise to be offered for sale and the date, time and place of the public hearing on such application. An affidavit of publication of said notice shall be filed with the Licensing Division before the date of the public hearing.
A. 
The Council may, after investigation and subject to the provisions of this chapter, grant an auctioneer's license or a license to conduct an auction sale.
B. 
It may deny the application for any of the following reasons:
(1) 
Location and use of said property covered by the application does not conform to all ordinances of the City and to all laws, rules and regulations of the State of New Jersey or of any body, board or commission thereof which may be applicable thereto.
(2) 
The applicant is not a proper or fit person to be licensed.
(3) 
The location of said public auction will be a hazard to life and property.
(4) 
The operation of a public auction at the location sought will affect the health, morals or safety of the public.
(5) 
The applicant has failed to meet the requirements of this chapter relating to contents of the application or to the terms and conditions for issuance of the license sought.
A. 
After approval of the application by the Council and the filing of the bond required by § 125-4, the Licensing Division shall issue to the individual auctioneer a license to which has been attached the photograph submitted with the application as provided for in § 125-2.
B. 
The term of an auctioneer's license shall be for a period of one year or any remaining portion thereof, commencing with June 1 and ending on June 1 next following issuance thereof.
C. 
The license fee for an auctioneer's license shall be $250.
[Amended 4-5-1983 by Ord. No. 83-015; 12-2-2003 by Ord. No. 03-081; 11-9-2010 by Ord. No. 10-064; 10-9-2018 by Ord. No. 18-045]
D. 
The issued license shall be valid only to the person to whom issued and is nontransferable.
A. 
After approval of the application by the Council and the filing of the bond, required by § 125-4, the Licensing Division shall issue a license authorizing the auction sale.
B. 
The term of the license shall not exceed 15 consecutive days, Sundays and legal holidays excluded.
C. 
The license fee for conducting a public auction sale shall be $220.
[Amended 4-5-1983 by Ord. No. 83-021; 12-2-2003 by Ord. No. 03-081; 11-9-2010 by Ord. No. 10-064]
D. 
The license shall authorize only the sale of the goods, wares and merchandise described in the inventory attached to the application, and only such goods, wares and merchandise shall be offered for sale on the premises during the licensing period.
A. 
Except for special one-day licenses as hereinafter provided, not more than one license to conduct an auction sale shall be granted to any person within any two-year period nor shall such license be granted for the same premises more than once within any two-year period.
B. 
A public auction sale license may not be renewed or extended.
[Amended 4-5-1983 by Ord. No. 83-018; 12-2-2003 by Ord. No. 03-081; 11-9-2010 by Ord. No. 10-064]
The Licensing Division shall issue to auctioneers licensed by the City special one-day permits to conduct an auction sale for one specific day, upon payment of a fee of $110 for the day. No such special permit shall be issued where the occasion of the sale shall run more than two days.
Any license or permit issued under this chapter shall be conspicuously displayed for public inspection at the place of business where the public auction is being conducted.
A. 
The auction sale shall be conducted so as to dispose of merchandise to the highest bidder.
B. 
No auctioneer shall:
(1) 
Accept other than bona fide bids.
(2) 
In describing goods that are being auctioned, make, directly or indirectly, by verbal or written statement or advertisement, any false representations as to the character, quality, condition, value or ownership of said goods.
(3) 
Falsely represent that such goods are, in whole or in part, bankrupt or insolvent stock or damaged goods or goods saved from fire.
(4) 
In any way or manner violate any of the provisions of the laws of the State of New Jersey.
C. 
No person holding an auction sale license shall use or employ any person as an auctioneer unless said person is the holder of a currently issued auctioneer's license under this chapter, except as otherwise provided in § 125-13.
A. 
The auctioneer may employ one helper or assistant in the conduct of any auction sale, provided that the helper has obtained either a helper's permit or a temporary permit. The individual desiring a helper's permit shall file an application with the Licensing Division and pay a fee of $10 upon the filing of said application. Pending action by the Council on such application, the Licensing Division shall forthwith issue a helper's temporary permit operative and valid only for a period of 45 days.
B. 
After investigation, the Council may approve the application for a helper's permit which shall be issued by the Licensing Division and shall be valid for a term of one year, commencing and terminating as in the case of an auctioneer's license provided for in § 125-7B hereof. In the event that a helper's permit is denied, the fee of $10 shall be retained as a helper's temporary permit fee.
A. 
Each auctioneer conducting a sale under a license granted under this chapter shall maintain a daily record of sales. The record shall include the following information for all sales: the identity of each article sold, by the same description as that contained in the inventory attached to the application for a license to conduct an auction sale; and the full name and address of the purchaser and the price paid.
B. 
During the auction sale, the sales record required by Subsection A of this section shall be kept at the place of the auction sale and shall be open to inspection by any member of the Council, Licensing Division, Chief of Police, County Prosecutor or by any person duly authorized, in writing, by any of the foregoing.
After due notice and hearing, any license or permit issued under this chapter shall be subject to suspension or revocation by the Council for the violation of any provision of this chapter or upon conviction of a crime involving moral turpitude.
[Amended 12-19-1995 by Ord. No. 95-068]
Any person who violates any provision of this chapter shall, upon conviction thereof, be subject to a fine not exceeding $1,000, by imprisonment for a term not exceeding 90 days or by a period of community service for not more than 90 days, or any combination thereof.