Sec. 27-26. Auction sales by retailers, wholesalers or manufacturers.
(a) It shall be unlawful for any retail merchant, wholesale merchant or manufacturer to sell, dispose of or offer for sale at public auction, or cause or permit to be sold, disposed of or offered for sale at public auction, any merchandise, product or commodity whatsoever, whether the same be their property, or whether they sell the same as agents or employees of others; provided, however, that this section shall not apply to sales by trustees or receivers of a retailer, wholesaler or manufacturer who is actually going out of business, or where said sale by said trustee or receiver is a bona fide sale to subject the property sold for the benefit of the creditors of said retailer, wholesaler or manufacturer; nor to sales in judicial proceedings or sales on behalf of licensed pawnbrokers of unredeemed pledges in the manner provided by law; nor to sales of household or kitchen furniture or other personal property which has been in use, except that where any merchant, local or nonresident, shall purchase or take on consignment any used or secondhand articles for the purpose of reselling the same, the sale thereof at public auction in the city is expressly prohibited under the terms of this section; nor to the sale of the stock on hand of any person who shall have held a merchant's license for a period of one year next preceding such sale, and have been continuously in business in the city as a retail or wholesale merchant or manufacturer and who is going out of business in said city; and provided, further, that such sale at public auction of the stock on hand of such merchant or manufacturer shall be held on successive days, Sundays and legal holidays excepted, and shall not continue for more than thirty (30) days in all, and provided further:
(1) That the merchandise shall be sold at public auction for cash only;
(2) That the merchant shall publicly and conspicuously advertise on the front of the storehouse or building in which the said auction sale is held the fact that the said merchant is going out of business;
(3) That at the auction sale no merchandise shall be offered except what has been a bona fide part of the stock of merchandise of said merchant for more than sixty (60) days next preceding the commencement of the said auction sale; and
(4) That the merchant, before the commencement of said auction sale, shall file with the commissioner of the revenue of the city an inventory of the said merchandise to be offered at such auction sale, with the cost price to the said merchant of each article shown thereon and with an affidavit thereto attached made by the said merchant, or his duly authorized representative, to the effect that the said inventory is true and correct, that said merchant is going out of business, and that the merchandise to be offered at such auction sale is listed on said inventory and has been a bona fide part of the said merchant's stock of merchandise for more than sixty (60) days next preceding the commencement of the said auction sale;
(5) That it shall be unlawful for any person to sell, dispose of or offer for sale at public auction, or cause or permit to be sold, disposed of or offered for sale at public auction, any merchandise whatsoever, whether the same be his property or whether he sells the same as agent or employee of others, between the hours of 6:00 p.m. and 8:00 a.m., or at any time except in a well-lighted place so that each article offered for sale may be plainly seen by all parties bidding thereon, and all announcements made relating to the character, make or value of the article offered must be true and be made in a voice loud enough to be distinctly heard by all parties bidding thereon.
(b) Any person violating any of the provisions of this section shall be deemed guilty of a class 2 misdemeanor, and each article sold or offered for sale shall constitute a separate offense under this section. (Tax Code 1941, § 27)
Last updated date: 10/23/2006 4:15:21 PM