[HISTORY: Adopted by the City Council of the City of Hackensack 7-17-1950 as Ord. No. 445; amended and revised 10-5-1959 (Ord. No. 717) as Ch. 3, Article III, of the 1959 Revised Ordinances. Sections 54-4, 54-5 and 54-8A and C amended at time of adoption of Code; see Ch. 1, General Provisions, Article I. Other amendments noted where applicable.]
GENERAL REFERENCES
Licenses and permits — See Ch. 107.
Peddling and soliciting — See Ch. 121.
Special sales — See Ch. 138.
A. 
Purpose. The purposes of this chapter are to:
(1) 
Properly control the practice of auction sales.
(2) 
Prevent and discourage undesirable business practices.
(3) 
Protect the public from fraud.
(4) 
Raise revenue.
B. 
Intent. It is hereby declared that the intent of this chapter is to permit auction sales within the territorial limits of the City of Hackensack only where necessary to wind up business quickly and to prohibit auction sales as an established merchandising practice.
As used in this chapter, the following terms shall have the meanings indicated:
AUCTION
A sale or offering for sale to the highest bidder of any goods, wares and merchandise of any description whatsoever.
STOCK ON HAND
All goods, wares and merchandise of any description whatsoever which a merchant ordinarily carries on hand in his business and which was purchased by the said merchant not later than 60 days prior to the date of application for a permit to conduct an auction.
This chapter shall not be applicable to any auction sale conducted by trustees or referees in bankruptcy, executors, administrators, receivers or other public officers acting under judicial process; nor to any sale of real property at auction; nor to any auction sale conducted by a religious, charitable, fraternal, patriotic, civic or political organization; nor to any auction sale by an artist of pictures, sculptures or other works of art made by him; nor to any auction sale of personal effects or household furnishings of any person if the articles have been owned and used by him as such within the city for a period of at least six months prior to such sale thereof.
No person shall act as an auctioneer and no person shall engage in the auction business, in whole or in part, or cause to be held any public auction within the city without first having secured a permit therefor in accordance with the terms of this chapter and the provisions of Chapter 107, Licenses and Permits.
Any person desiring a permit to conduct an auction sale within the territorial limits of the City of Hackensack shall make application therefor in writing, under oath, as required by § 107-6 of Chapter 107, Licenses and Permits. The information supplied shall be as required by § 107-6B and C, and, in addition, the following shall be supplied:
A. 
A schedule setting forth a complete description and inventory of the articles to be offered for sale.
B. 
A certification under oath that said stock on hand as set forth in the schedule does not contain any goods, wares and merchandise purchased within 60 days of the date of the said certification.
C. 
A detailed description of the premises where said articles of goods, wares and merchandise are presently stored and a description of the premises upon which the proposed auction is to be conducted.
D. 
A certification under oath by applicant that said business has been conducted on said premises for at least one year prior to the date of application.
E. 
A certification under oath by the person making the application that:
(1) 
He is authorized to make the application.
(2) 
He is familiar with the books of the business.
(3) 
Said business is actually being carried on at a loss and it is necessary to sell all of the merchandise in order to wind up the said business and close the same down; or it is the true intent of the owner of said business to terminate said business and permanently discontinue same at said address.
F. 
A statement as to the number of days, not exceeding 10, that such auction will be conducted.
Any and all permits shall be issued by the City Manager; provided, however, that the terms and conditions of this chapter and of Chapter 107, Licenses and Permits, are fully complied with.
All permits to conduct auctions within the territorial limits of the City of Hackensack shall be issued only upon the following conditions and provisions:
A. 
That said business has been conducted at said premises for one full year next preceding the date of said application.
B. 
That the true intent and the honest purpose of the owner of said business is to sell all of the stock of said business for the purpose of permanently terminating the business at said address.
C. 
That all merchandise set forth in the schedule attached to said application has been purchased by the said owner in the usual and ordinary conduct of the said business heretofore, and that said goods, wares and merchandise does not include any that was purchased within 60 days from the date of said application.
A. 
All auction permits shall be valid for the specified number of days, up to a maximum of 10 consecutive days, Sundays and legal holidays excepted, from the date the same are issued.
B. 
No auction sales permits shall be issued during the month of December.
C. 
The fee for the issuance of the permit shall be as set forth in Chapter 107, Licenses and Permits, which fee shall be deposited in advance with the City Clerk of the City of Hackensack.
Each applicant shall execute and file with the City Clerk of the City of Hackensack a good and sufficient bond in the sum of $1,000, with two or more sureties thereon who shall be freeholders within the City of Hackensack, or with the surety thereon a surety company authorized to do business in the State of New Jersey, which said bond shall be conditioned upon the faithful observance of all the conditions and provisions of this chapter.
Each permit issued pursuant to and in conformity with this chapter shall be consecutively and numerically numbered, and said permits shall be conspicuously kept on public display at all times upon the premises where the said auction is to be conducted.
No permit shall be granted for any such sale by auction if it appears to the City Manager that the applicant or any agent or affiliate or assignee or other person in his behalf has, within the period of two years prior to the date of said application, conducted a similar sale by auction pursuant to and in conformity with the provisions of this chapter.
A. 
No auctioneer shall accept anything other than a bona fide bid at any auction, and all auction sales shall be conducted so as to dispose of merchandise to the highest bidder unless other terms are properly announced immediately before the sale.
B. 
No auctioneer shall use or employ or permit to be used or employed, and no person shall act at any auction sale as, a "capper," "booster," "shiller" or false or fake bidder. No auctioneer shall sell or offer to sell what is commonly known as a "blind package" or any article or articles which cannot be seen by bidders before bids are made.
C. 
No auction sale shall be permitted except at the regularly established place of business where the regular business of said applicant has been conducted for a period of at least one year prior to the date of application for said permit.
D. 
Wherever such permitted sale by auction shall be conducted, the person to whom the permit has been granted (or the agent in the event of a corporation) shall remain in continuous attendance at all times while such sale by auction is being conducted, and said person or agent shall also be responsible for any violation of this chapter.
E. 
At all such sales by auction, the applicant and all persons participating in the conduct of said sale by auction must truly and correctly represent at all times to the public attending said auction the actual facts in respect to the quality, manufacture and cost of each article put up for sale when said information is requested by a bidder or prospective bidder.
F. 
No auction sale shall be conducted between the hours of 6:00 p.m. and 8:00 a.m., prevailing time.
G. 
Every advertisement of an auction or auction sale to be held in the city shall contain the name of the auctioneer appointed or assigned thereto.
H. 
No licensed auctioneer shall fail to account for or to pay over any moneys belonging to others coming into his possession by virtue of any auction.
I. 
No auctioneer or other person shall sell or attempt to sell at public auction any goods, merchandise or personal property in or upon any street or sidewalk in the city.
J. 
No auctioneer shall engage in what is commonly called "barking," "ballyhooing," "ringing of bell" or the use of any other noise device in order to attract people passing the place where an auction is being conducted.
The City Council reserves the right at all times to suspend or revoke the operation of the permit permitting the auction as provided in Article VII of Chapter 107, Licenses and Permits.