Arizona Jewelry Auction License

Arizona Revised Statutes Annotated
Title 44. Trade and Commerce
Chapter 11. Regulations Concerning Particular Businesses
Article 5. Jewelry Auctions (Refs & Annos)

§ 44-1671. Definitions

In this article, unless the context otherwise requires:
1. “Auction” means the sale of jewelry at either private or public sale, upon oral or written bids, to the highest bidder, and includes all such sales by whatever name called.
2. “Jewelry” includes gold, platinum, silver, gold-filled or plated ware, diamonds and other precious or semiprecious stones whether mounted or unmounted, cultured pearls, watches, clocks, and goods, wares and merchandise commonly classified as jewelry and commonly offered for sale in jewelry stores.

§ 44-1672. License required; exemptions

It is unlawful to sell, offer for sale, or attempt to sell at auction any jewelry without a license as provided in this article, except as exempted by § 44-1685.

§ 44-1673. Application for license; contents

A. Not less than thirty days nor more than sixty days prior to the date of a proposed auction, any person desiring to sell at auction any jewelry shall apply to the board of supervisors of the county in which the auction is to be conducted for a license to conduct the auction. The application shall contain:
1. The name, residence, address and business address of applicant.
2. The purpose for which the auction is to be held.
3. The type and location of business, if any, engaged in by the applicant during the two years immediately preceding the date of application.
4. Whether the proposed auction is to be held at the applicant's existing regularly established place of business.
5. Whether applicant will personally participate at the auction.
6. Whether any addition to the stock to be sold at auction has been made within sixty days prior to the auction.
7. The name, address and occupational history for the two years immediately preceding the date of application of any person who will participate in conducting the auction.
B. The application shall also contain a statement whether applicant has conducted any auction of jewelry within a period of five years prior to the date of application, and, if so, a statement when and where such auction was held. The application shall further indicate that no person will be employed in any manner in the conduct of the auction who has been convicted of any violation of this article within the six-year period immediately preceding the date of application.

§ 44-1674. Inventory

The application shall have attached thereto a detailed inventory listing each article to be auctioned, together with an inventory number for each article to be auctioned, and a detailed itemization of the quantity, quality, kind or class of each article to be sold and the wholesale cost or invoice price thereof.

§ 44-1675. Verification

The applicant shall verify under oath or affirmation that all the data and statements in the application and inventory are true and correct.

§ 44-1676. Fee and bond

A. In addition to the inventory, the applicant shall submit, together with the application, a fee of two hundred dollars, and shall file with the county board of supervisors a bond in a form approved by the board, executed by a surety company authorized to do business in this state, in an amount equal to one-half of the cost value of the articles inventoried for sale, said bond to be approved by the board of supervisors.
B. The bond shall run to the state of Arizona and shall be conditioned that it is for the use or benefit of the person who may be damaged by the violation of any provision of this article by the licensee, his employees or agents, or who may have the cause of action against said licensee, his employees or agents by reason of any matters arising out of the conduct of the auction. Any such person shall have, in addition to any other right of action which he may have, a right of action on the bond for all damages not exceeding one thousand dollars, and the aggregate liability of the surety upon the bond for all claims which may arise thereunder shall not exceed the sum specified in the bond.

§ 44-1677. Issuance of license

The board of supervisors shall issue a license to conduct an auction of jewelry if it finds the application, inventory, fee and bond are in order, and further finds that the applicant has not been convicted of violating any provision of this article within a period of six years immediately preceding the date of application. The license shall be issued for a period of not more than thirty consecutive days, legal holidays excepted.

§ 44-1678. Numbering of inventoried articles; subsequent inventory; intent to defraud

A. No article shall be sold at the auction for which the license was obtained unless there is securely attached to the article sold a tag, card or label bearing accurate reference to the written inventory prescribed in § 44-1674, upon which shall be plainly written or printed a true statement of the kind, quality and weight of the metal of which the article is made or composed and the percentage or karat or purity of such metal. If the article is plated or overlaid, then the label shall contain a true statement of the kind of plate and percentage of purity thereof, and the kind of metal or material covered. If the article is a precious or semiprecious stone, the statement shall contain the true name, weight, quality and fineness thereof. If the article is a watch or clock, the statement shall contain the true name of the manufacturer thereof. If a second-hand or old movement or substitute part or movement of any watch or clock is offered for sale in a new case, such fact shall be set forth in the attached statement, and no such article so sold or offered for sale shall bear any false or misleading name, description or entry thereon.
B. The tag, card or label shall remain securely attached to any article sold or offered for sale, and shall be delivered to the purchaser by the person selling the same as a correct description or representation of the article sold. If there is more than one of the same kind of article to be sold, then the tag, card or label shall indicate the chronological number of the respective articles of the same class sold.
C. No article shall be sold at the auction for which the license was obtained unless it was listed in the inventory accompanying the application, except that such articles may be sold if listed on a supplementary inventory subsequently approved by a majority of the board of supervisors of the county in which the auction is held.
D. It shall be presumptive evidence of intent to defraud or to violate the provisions of this article where goods, wares, merchandise or articles sold or offered for sale under the provisions of this article fail to agree with the description contained on the tag, card or label provided for in this section.

§ 44-1679. Articles stocked within sixty days prior to application

No article shall be listed in the inventory and any supplement thereto or sold at the auction which was purchased or stocked by the applicant within sixty days immediately preceding the date of application.

§ 44-1680. Representation of articles

At an auction held under the provisions of this article, the licensee and his employees and agents shall represent to the public the true manufacture, quality and kind of articles to be sold. Upon request of any person, a copy of the inventory shall be shown.

 44-1681. Return of purchases; display of notice

The licensee shall cause to be displayed in a prominent place on the premises where the auction is being conducted a notice that all merchandise may be returned, if it is at the time in the same condition as when purchased, for the amount paid, if returned within forty-eight hours from the time of purchase and if the merchandise sold fails to agree with the description contained on the tag, card or label. The notice shall be of sufficient size as to be readily discernible by the bidders.

§ 44-1682. Suspension, restoration of licenses; appeal

The board of supervisors may suspend and restore licenses as they may deem necessary or reasonable to insure compliance with the provisions of this article. Appeal from a decision of the board of supervisors may be made by the licensee or any aggrieved person within ten days from date of filing of the decision of the board of supervisors, to the superior court of the county in which the license was issued. The appeal may be taken by the issuance of an order to show cause directed to the board of supervisors, or by any other appropriate legal remedy afforded by law.

§ 44-1683. Licensee's responsibility

The licensee shall be responsible for compliance with the provisions of this article whether he is present at or absent from the auction.

§ 44-1684. Sale of articles described falsely

No article shall be sold at auction which has been falsely described or concerning which any false statement has been made by the licensee or his employee or agent.

§ 44-1685. Application of article; exemptions
Currentness
A. This article shall not apply to any sale of second-hand jewelry, judicial sales or government sales, sales by an executor, administrator, guardian, receiver, or trustee in bankruptcy authorized by any court of competent jurisdiction, or any other sale authorized by law.
B. A license issued under the provisions of this article shall be in addition to any license required by the ordinance of any city or town in which the auction is to be conducted.

§ 44-1686. Violation; classification

Violation of any provision of this article is a class 2 misdemeanor.

Ariz. Rev. Stat. Ann. §§ 44-1671-86