HomeMy WebLinkAbout~Master - Relating to Auction Sales, Repealing Ordinance 736 i
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TEMPORARY ORD. NO. 17 Permanent Ord. No. 775
AN ORDINANCE RELATING TO AUCTION SALES AND PUBLIC SALES OR
i MERCHANDISE OF A SPECIAL CHARACTER, SUCH AS BANKRUPT SALES,.
FIRE SALES, CLOSING-OUT SALES, AND THE LIKE, PROVIDING FOR THE
LICENSING OF THE SAME, AND FIXING A PERMIT FEE THEREFORE:
' PRESCRIBING RULES AND REGULATIONS FOR THE CONDUCT OF THE SAME,!
PROVIDING FOR A PENALTY FOR VIOLATION THEREOF, AND REPEALING
ORDINANCE NUMBER 736 AND ALL OTHER ORDINANCES OR PARTS OF
ORDINANCES IN CONFLICT HEREWITH.
BE IT ORDAINED BY THE CITY COUNOIL OF THE CITY OF AMES, IOWA:
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Section 1. Definitions. The following words and terms as used in this i
ordinance respectively, shall be deemed tome��n and be construed as follows:
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Section 1. 1. Auction Sale. "Auction sale" shall mean the offering for
sale or selling of personal property to the highest bidder or offering for sale or
selling of personal property at a high price and then offering the same at
successive lower prices until a buyer is secured.
Section 1. 2. New Merchandise. "New merchandise" shall mean all
merchandise not previously sold at retail. Wherever the word "merchandise"
is used in this ordinance it shall also mean and include new merchandise.
I Section 1. 3. Sales. The word "sale" shall mean the sale or an offer to
sell to the public, of goods, wares and merchandise of any and all kinds and
descriptions on hand and in stock in connection with declared purpose, as set
forth by advertising, on the part of the seller that such sale is anticipatory to
the termination, closing, liquidation, revision, windup, discontinuance, con-
clusion or abandonment ofthe business in connection Ath such sale. It shall
also include any sale advertised, either specifically or in substance, to be a
"fire sale", "smoke and water damage sale", "adjustment sale", "creditor's
sale "trustee's sale'', bankrupt sale save us from bankruptcy sale",
" " '� " "
,tinsol<aent sale", ''insurance salvage sale mortgage sale", assignees sale",
adjustors sale receivers sale loss-of--lease sale", forced-out--of.-
business sale", "removal 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,
Section 1. 4. Publish. The words "publish", "publishing", "advertisements",
"advertising", shall include any and all means of conveying to the public notice
of sale or notice of intention to conduct a sale, whether by word of mouth, by
newspaper advertisement, by magazine advertisement, by handbill, by circular,
by pamphlet, by written notice, by printed notice, by printed display, by bill-board
display, by poster, by radio announcement, by radio program, by recordings
any and all means including oral, written or printed.
Section 1. 5. License. The word "license" shall mean a license issued
pursuant to this ordinance.
Section 1. 6, Licensee. The word 'licensee" shall mean any person to
whom a license has been issued pursuant to this ordinance.
Section 1. 7. City Council. The word ''city council" shall mean the city
council of the City of Ames, Iowa.
Section 1. 8. Inspector. The word "inspector" shall mean the city manage•
of the City of Ames, Iowa, or his authorized representative.
Section 1. 9. Auction House. The word "auction house" shall mean any
place where goods, wares, merchandise and chattels of any kind are regularly
sold at auction, provided said auction house is duly licensed under the provisions
of sections 16, 17, and 18 of this ordinance.
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Section 2, Regulation of Sales. No person shall hereafter publish or
conduct any sale of the type herein defined without a license therefor.
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Section 3. Powers and Duties of the City Council. The city council is
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the Neby authorized and empowered to supervise or regulate auction sales or
special sales defined in section 1 of this ordinance, and to issue appropriate '
license or licenses therefor, upon proper application.
Section 4. Applicatian for License. !application for such a license shall be
made to the city council in writing and ver ified by the applicant. Such application
shall contain a description of the place where such sale is to be held, the nature
of the occupancy, whether by ownership, lease or sublease, and the effective
date of termination of such occupancy, the means to be employed in publishing
such sale, together with the proposed language contained in any advertisements.
Such application shall further contain, as part thereof, an itemized list of the j
goods, wares and merchandise to be offered for sale with an estimate of the value!
thereof, why such goods, wares andmerchandise are to be sold under such
descriptive name o- title , and in what manner such name is truthfully descriptive
of such sale, the place where such stock was purchased or acquired, and if not
purchased, the manner of such acquisition and when acquired, and also, the date
of delivery thereof to the applicant.
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Section 5. Investigation. Upon receipt of such application and the payment
of the fee hereinafter prescribed, the city council shall cause an investigation
to be made by the city manager of the statements and representations set forth
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in the application, and after receiving a report by the city manager, they my,
if reasonably satisfied that the provisions of this ordinance will be completewith
and the auction or sale will be properly conducted and in a suitable location,
instruct the city clerliupon receipt of the license fee and the filing of a proper
bond as set forth herein, to issue a license therefor permitting the publication
and conduct of such auction orsale.
Section 6. Place or Location. The city council reserves the right to deny;
the application if the place or location where the auction sale is to be held is in
violation of the city zoning ordinance, or is in a traffic congested area, or if no
adequate means for parking have been provided for or if deemed to disturb the
peace and quiet of the neighborhood or for any other reason.
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Section 7. Fraudulent or Misleading Advertising. It shall be unlawful for
a licensee to advertise or cause to be advertised, goods, wares or merchandise
for a sale, as herein defined, which do not conform to the representations of the
advertisement. It shall be unlawful for any person conducting such a sale to add
any goods to the inventoried stock thereof, or to sell any goods, except those in
the original inventoried stock thereof, or to sell any goods, except those in the origi-
nal inventory while representing the same by advertising, inference or otherwise,
as being a part of the goods advertised for sale, as herein authorized.
Section 8. Period of License. Such license shall be for a period not exceed-
ing thirty (30) days, except that upon satisfactory proof by the licensee that the
stock itemized in the original application has not been disposed of, upon proper
application, the city council may renew such license for additional thirty(30) day
periods upon payment of the prescribed renewal fee. Said renewal application
shall contain an itemized list of the original stock on hand, and shall be verified
by the applicant. The city council shall cause the same to be examined and
investigated, and if satisfied as tothe truth of the statements therein contained,
the city council may issue a renewal license for the period of thirty(30) days.
Section 9. Weekly reports. At the conclusion of each week of such auction
sale or sales or the continuation thereof, permittee shall report to the city
inspector, the approximate proportion of the original inventory of the goods sold'
and if available, shall furnish him with a revised inventory thereof in appr oximaie
detail.
Section 10. Bond required. Before a license shall be issued by the city
council under such application, the applicant shall execute and deliver to the
City of Ames, a bond in the penal sum of one thousand dollars ($1, 000. 00) signed
by such applicant, and also signed by a surety company duly authorized to
transact business in the State of Iowa, which bond shall be conditioned upon the
faithful observance of the provisions of this ordinance, and also conditioned
to reimburse and indemnify any purchaser at any such sale, as provided for
herein, duly held by such licensee for any loss incurred or damage sustained by
such purchaser by reason of misrepresentation or fraud in the sale of any such
goods, wares or merchandise. In such bond the applicant and the surety shall
appoint the mayor of the City of Ames, Iowa, the agent of the applicant and the
surety for the service of le gal process. The city council may waive the bond
requirement if it is deemed advisable for the particular type of auction sale or
sales to be conducted.
Section 11. License Fees Upon Filing. Upon filing an original application
or a renewal application for a license to advertise and conduct an auction sale or
i special sale, as hereinbefore defined, the applicant shall pay, if the stock of
goods on hand inventories at five thousand dollars ($5, 000. 00) or less, a license
fee in the sum of ten dollars ($10. 00), if the stock of goods inventories in excess
of five thousand dollars ($5, 000. 00), up to and including fifteen thousand dollars
($15, 000. 00) the applicant shall pay a fee in the sum of thirty dollars ($30. 00).
If any application or renewal application be disapproved, one-half of said payment
shall be forfeited to the city council as and for the cost of invEPtigating the
statements in such application or renewal application. i
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Section 12. enforcement. Upon commencement of any sale, as hereinbefo�e
defined, the license issued by the city council shall be prominently displayed neap{
the entrance to the premises. A duplicate original of the application and stock
list, pursuant to which such license was issued, shall, at all times, be available i
to the city council or to the inspector and the licenses shall permit such inspecto�
to examine all merchandise in the premises for comparison with such stock list.
at any and all times during the period of such sale. All advertisements or
advertising, and the language contained therein, shall be in accordance with the
purpose of the s ale as sta'-ed in the application pursuant to which a license was
is sued.
Section 13. Advertisements. Each advertisement shall contain a statement
in these words:
Such sale held pursuant to permit number of the city council,
granted the day of _ _, 19 , and in such blank spaces,
shall be indicated the perrrntnumber and the requisite dates.
Section 14. Books and Records. Books and records of the sale shall be
kept by the licensee, and shall at all times be available to the inspector. I
Section 15. Exemptions. The provisions of this ordinance shall not apply
to or affect the following persons:
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(a) Persons acting pursuant to an order or process of a court of competent)
jurisdiction.
(b) ' Persons acting in accordance with their powers and duties as public
officers, such as sheriffs, bailiffs or marshals.
(c) Auction sales by individuals of their own personal property, not
subject to renewal, not contemplated to last more than one day or
to occur more often than once in a calendar year and when such auction
sales are made with or without the service of a licensed auctioneer.
(d) Executors, guardians, assignees of insolvent debtors, bankrupts and/ot
other persons required by law to sell said property.
(e) Auction sales in a licensed auction house, which is defined as any place
of business where goods, wares, merchandise and chattels of any
kind are regularly sold at auction, provided said auction house is duly
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licensed under the provisions of sections 16 and 17 herein.
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Section 16. Auction House - License Required. Ivi auction house may be
licensed as herein provided for a period not to exceed six (6) months upon approval
of the license application as herein provided, the approval of such application
by the city council, and the payment to the city clerk of the license fee of ten
dollars ($10. 00).
Section 17. Application for License for Auction House. Each applicant for
a license for an auction house shall file an application on forms furnished by the
city with the city clerk. Such application shall contain the following information:
(a) The name and address of the auctioneer.
(b) The location of such auction house within the limits of a "D" or "E"
district as defined by the zoning ordinance of the City of Ames.
(c) The location of available off street par dng facilities for fifty (50)
motor vehicles within a distance of three hundred feet (300) from
the proposed auction house.
(d) A certificate from the chief of police approving the moral character
and business responsibility of the auctioneer.
Section 18. Action on License Application. The city council after receiving
such application shall consider the same and may approve or reject it. If
approved the city clerk shall issue such license upon payment of the license fee
and shall keep a record of such license in his office.
Section 19. Revocation of Auction House License. A license for an
"auction house" may be revoked by the city council for any of the following
reasons:
(a) That the applicant or license holder is not an individual of good moral
character and business responsibility; or
(b) That the application of the applicant or license holder contains any
false, fraudulent, or misleading material statement; or
(c) That the applicant or license holder has made any false, fraudulent,
or misleading material statement in the course of conducting an
auction sale of, or in offering for sale at auction, any personal property,
goods, wares, or merchandise in the Cityof Ame s; or
(d) That the applicant has been convicted of any crime or misdemeanor j
involving moral turpitude; or
(e) That the applicant or license holder has conducted an auction of, or
offered for sale at auction, any personal property, goods, wares, or j
merchandise in the City of Ames in an unlawful manner or such a
manner as to constitute a breach of the peace or a menace to the health,
safety, or general welfare of the public.
Section 20. Unconstitutionality. If any section, subsection, clause, sentence
or phrase of this ordinance is for any reason held to be unconstitutional or
invalid, such decision shall not affect the validity of the remaining portions of
tlis ordinance. The council hereby declares that it would have passed this chapter
and each section, subsection, sentence clause or phrase thereof, irrespective of
the fact that any one or more of the sections, subsections, sentences, clauses or
phrases be declared unconstitutional or invalid.
Section 21. Violations. Any person who shall violate, neglect or refuse
Ito comply with any of the provisions of this ordinance, or who shall make a false
statement in any application for a license as herein required, shall, upon conviction
thereof, be punished by a fine of not more than one hundred dollars ($100. 00) or
by imprisonment not exceeding thirty (30) days.
Section 22. Repeal. Ordinance number 736 and all ordinances or parts of
ordinances in conflict herewith are hereby repealed.
Section 23. This ordinance shall be in full force and effect from and after
passage and publication as provided by law.
Passed this 7th day of February, 1955.
T. V . Prather, City Clerk P. Lawlor, Mayor
Moved by ;Smith and seconded by Bliss that Temporary Ordinance No. 17 be passed
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on its first reading.
Voting Aye: Griffith, Judge, :Smith, Bolton and Bliss
Voting Nay: None
Absent: De Hart
Moved by Bliss and seconded by Judge that the rules governing the passage of
ordinances be suspended, the second and third readings omitted and Temporary
Ordinance No. 17 be placed on its final passage.
Voting Aye: Griffith, Judge, Smith, Bolton and Bliss
Voting Nay: None
Absent: De Hart
Moved by Bolton and seconded by Griffith that Temporary Ordinance No. 17 do
now pass.
Voting Aye: Griffith, Judge, Smith, Bolton and Bliss
Voting Nay: None
Absent: De Hart
Mayor Lawlor declared Temporary Ordinance No. 17 duly adopted.
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I, J. W. Prather, City Clerk of the City of Ames, Iowa, do hereby certify that
Ordinance No. 775 was duly and properly adopted by the City Council at a meeting
of the City Council on the 7th day of February, 1955 and published by codifying j
on the a c day of 'u�' 19L
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J. W. rather, CityClerk
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