HomeMy WebLinkAbout~Master - Relating to Auction Sales, Repealing Ordinance 481, 736, 775 i
ORDINANCE NO. 823
AN ORDINANCE RELATING TO AUCTION SALES AND PUBLIC SALES OF
MERCHANDISE OF A SPECIAL CHARACTER. SUCH AS AUCTIONS, BANKRUPT
SALES, FIRE SALES, CLOSING OUT SALES, AND THE LIX, PROVIDING FOA
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, 481, 775 AND ALL OTHER ORDINANCES OR PARTS
OF ORDINANCES IN CONFLICT HEREWITH. f
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BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF AMES, IOWA:
Section 1. Definitions. The following words and terms as used in this
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ed to mean and to be construed as follows:
ordinance respectively, shall be deem
Section 1. 1. Auction Sale. "Auction sale" shall mean the offering for
sale or selling of new or used personal property to the highest bidder or offexi.ng!
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. Merchandise. "Merchandise" shall mean both new and used
personal property. I
Section 1. 3. Jewelry Auction. "Jewelry auction" shall include all sales''
by auction of new and used gold, silver, plated ware, precious or semi-preciou$
stones, watches, clocks, or any other jewelry.
Section 1. 4. 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 fo th
by advertising, on the part of the seller that such sale is a jewelry auction or is
anticipatory to the termination, closing, liquidation, revision, windup, discon-
tinuance, conclusion, or abandonment of the business in connection with such sae.
It shall also include any sale advertised, either specifically or in substance, to
be a jewelry auction, "fire sale", "smoke and water damage sale10, "adjustment'
sale", creditor's sale", trustee's sale", "bankrup' sale", "save us from bank-
' ruptcy sale", "insolvent sale", "insurance salvage sale", "mortgage sale",
"assignees sale , adjustors sale , receivers sale". loss-of-lease sale", i
"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. 5. Publish. The words "publish", ';'publishing", "advertise-
n-ents", "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, i
by circular, by pamphlet, by written notice, by printed notice, by printed displ�y,
by billboard display, by poster, by radio announcement, by radio program,
by recordings any and all means including oral, written or printed.
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Section 1. 6. License. The word "license" shall mean a license issued
pursuant to this ordinance.
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Section 1. 7. Licensee. The word "licensee" shall mean any person
i to whom a license has been issued pursuant to this ordinance.
Section 1. 8. City Council. The word "city council" shall mean the city
council of the City of Ames, Iowa.
Section 1. 9. Inspector. The word "inspector" shall mean the city
manager of the City of Ames, Iowa or his authorized representative.
Section 1. 10. Auction Hou se. The word "auction house" shall mean any'111
place where used or second hand goods, wares, and chattels of any kind are
regularly sold at auction, provided said auction house is duly licensed under
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the provisions of sections 16, 17, and 18 of this ordinance.
Section 2. Regulation of Sales. No person shall hereafter publish or
conduct any sale of the type herein defined in section 1. 4, without a license
therefor.
Section 3. Powers and Duties of the City Council. The city council is
hereby authorized and empowered to supervise or regulate auction sales or special
sales defined in this ordinance, and to issue appropriate license or licenses
therefor, upon proper application.
Section 4. Application for License. Application for such a license shall
be made to the city council in writing and signed by the applicant. The applica-
tion shall contain the following information:
(a) The name, residence address, and business address of the applicant
(b) A description of the place where such sale or auction is to be held.
(c) The nature of the occupancy, whether by ownership, lease or sublea e.
(d) The effective date of termination of such occupancy.
(e) The names and addresses of the persons who will conduct such sale
or auction.
(f) The means to be employed in publishi4g such sale together with the
proposed language to be used in any advertisement.
(g) An itemized list of the goods, wares and merchandise to be offered
for sale with an estimate of the value thereof.
(h) The place where such merchandise was purchased and acquired and
the date of delivery thereof to the applicant.
(i) Whether the applicant has conducted or caused to be held any sales
by auction within a period of three (3) years prior to said application.
Section 5. Investigation. Upon receipt of such application and the
payment of the fee hereinafter prescribed, the city council shall cause an inves
tigation to be made by the city manager of the statements and representations sot
forth in the application, and after receiving a report by the city manager, they
may, if reasonably satisfied that the provisions of this ordinance will be
complied with and the auction or sale will be properly conducted and in a
suitable location, instruct the city clerk upon 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 or sale.
Section 6. Place or Location. The city counc_il 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,
i 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.
Section 7. Fraudulent or Misleading Advertising. It shall be unlawful
(I for a licensee to advertise or cause to be advertised, goods, wares or
f 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 original 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
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exceeding thirty (30) days, except that upon satisfactory proof by the licensee
IIthat the stock itemized in the original application has not been disposed of, upon
proper application and investigation, the city councilmay renew such license for
additional thirty(30) days 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 signed by the applicant.
Section 9. Weekly Reports. At the conclusion of each week of such
auction sale or sales or the continuation thereof, permitttee 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
approximate 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`
Clerk of the City of Ame s, a bond in the penal sum of one thousand dollars ($1, 00 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 of 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 legal 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 applicati
or a renewal application for a license to advertise and conduct an auction sale or
special sale, as hereinbefore defined, the applicant shall pay, if the stock of goo s
on hand inventories at five thousand dollars ($5, 000. 00) or less, a license fee in
i 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 paymen
shall be forfeited to the City of Ames as and for the cost of investigating the
statements in such application or renewal application.
Section 12. Enforcement. Upon commencement of any sale, as herein-
before defined, the license issued by the city council shall be prominently !
displayed near the entrance to the premises. A duplicate original of the applica
tion and stock list, pursuant to which such license was issued, shall, at all i
times, be available to the city council or to the inspector and the licenses shall
permit such inspector to examine all merchandise in the premises for comparisop
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 sale as stated in the application pursuant
to which a license was issued.
Section 13. Advertisements. Each advertisement shall contain a statem nt
in these words:
Such sale held pursuant to permit number of the citycouncil,
granted the day of , 19 , and in such blank spaces, shall
be indicated the permit number 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.
Section 15. Exemptions. The provisions of this ordinance shall not
apply to or affect the following persons:
(a) Persons acting pursuant to an order or process of a court of
i competent jurisdiction.
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(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/or other persons required bylaw to sell said property.
(e) Auction sales in a licensed auction house as defined herein.
Section 16. Auction House - License Required. An auction house may b
licensed as herein provided for a period not to exceed six (6) months upon
approval of the license application as herein provided 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
inf ormation:
(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 Cityof Ames.
(c) The location of available off street parking 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 mayapprove 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 Airtion 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 Ames; or
(d) That the applicant has been convicted of any crime or misdemeanor
involving moral turpitude; or
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(e) That the applicant or license holder has conducted an auction of,
or offered for sale at auction, any personal property, goods, wares, or
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 gneral
welfare of the public.
Section 20. Unconstitutionality. If any section, subsection, clause,
sentence or p rase of this ordinance is for any reason held to be unconstitution4
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or invalid, such decision shall not affect the validity of the remaining portions
of this 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,
sentene`es, clauses or phrases be declared unconstitutional or invalid.
Section 21. Violations. Any person who shall violate, neglect or refuse
to 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 impr % sonment not exceeding thirty (30) days.
Section 22. Repeal. Ordinance number 736, 481, 775 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.
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Passed this 22nd day of November, 1955.
J. W. Prather, CityClerk J. P. Lawlor, Mayor
Moved by Smith and seconded by Judge that Ordinance No. 823 be passed on its
first reading.
Voting Aye: Griffith, Judge, Smith, Bolton and Bliss
Ii Voting Nay: None
Absent: De Hart
Moved by Bliss and seconded by Smith that the rules governing the passage of
ordinances be suspended, the second and third readings omitted and Ordinance
No. 823 be placed on its final passage.
Voting Aye: Griffith, Judge, Smith, Bolton and Bliss
Voting Nay: None
Absent: De Hart
Moved by Judge and seconded by Smith that Ordinane No. 823 do now pass.
Voting Aye: Griffith, Judge, Smith, Boltonand Bliss
Voting Nay: None
Absent: De Hart
Mayor Pro Tem Griffith declared ordinance No. 823 duly adopted.
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I, J. W. Prather, City Clerk of the Cityof Ames, Iowa, do hereby certify that
the above and foregoing Ordinance No. 823 was duly and properlypassed at a
meeting of the City Council on the 22nd&y of November, 1955 and published by
codifying on the v day of 19
1 J. W. Prather, CityClerk
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