Chap. 581.—An ACT to prevent fraud and deception at certain auctions in this
State; to regulate such auctions; to provide for licenses and bonds and to
prescribe penalties. [H B 332]

Approved March 31, 1926.

1. Beit enacted by the general assembly of Virginia, That except
as hereinafter provided, it shall be unlawful for any person, firm or
corporation to sell, dispose of or offer for sale in the State of Virginia,
at public auction, or cause or permit to be sold, disposed of or offered
for sale at public auction in the State of Virginia, any diamonds, or
any other precious or semi-precious stones or imitations _thereof,
watches, clocks, jewelry, gold, silver or plated-ware, china, glassware,
art goods, rugs, tapestries or leather goods, whether the same shall be
their own property or whether they sell the same as agents or em-
ployees of others; provided, however, that this section shall not apply
to judicial sales or sales by any executor, administrator, or trustee
under deed of assignment; nor to sales by or in behalf of licensed pawn-
brokers in the manner prescribed by law, nor to the sale at public
auction of the stock on hand of any person, firm or corporation that
shall for the period of two years next preceding the sale have been
continuously in business in the same city, town or county in the State
of Virginia, as a retail or wholesale merchant dealing in the articles
above mentioned; and provided, further, that where such auction
sales as are allowed under this act shall be held by such merchant, such
sales shall be held continuously from day to day, and shall not con-
tinue longer than thirty days, Sundays and legal holidays excepted;
nor shall the same dealer, either by himself or another, conduct an-
other auction sale in connection with such business for a period of
twelve months from the last date of a former sale. |

2. That before any auction sale of the articles herein before
stated shall be held, such dealer shall first obtain a license from the
commissioner of the revenue of the county or city in which such sale
is to be held, and shall pay a license tax of one hundred dollars per-
mitting such a sale, which shall not be prorated or transferable, which
license shall state the dates and the place at which the sale shall be
held, and shall display such license in a conspicuous place at the place
of sale during the entire period covered by it. Such dealer shall also,
before commencing such sale, file with the commissioner of the reve-
nue of the county or city in which the sale is to be had, a full and true
inventory of all the articles to be sold thereat, and shall attach to such
list an affidavit made by the party desiring to hold such sale, or if a
firm or corporation, by a member of such firm or an agent of such cor-
poration, that said list contains a true statement of all the articles to
be sold, and such sworn inventory shall be filed by said commissioner
of the revenue and kept open for sixty days, subject to the inspection
of any one desiring to inspect same. At the auction held pursuant to
such filing, no article shall be sold other than those included in such
sworn inventory, nor during the continuance of such auction sale shall
any additional goods, wares or merchandise of the same or similar
nature to those being sold, be received upon the premises wherein the
articles being sold are kept, nor where such sale is being held, until
such sale is completed and the time for such sale, under the license
obtained, has expired, nor shall such auction sales be conducted be-
tween the hours of six o’clock in the evening and eight o’clock the
following morning. -

3. That upon securing such license and before commencing such
auction sale covered thereby, the licensee shall make and file with the
treasurer of the county or city in which such sale is to be had, a bond
in the sum of five hundred dollars in some good and solvent surety
company doing business in this State, or other good and sufficient bond
subject to the approval of the treasurer of the county or city wherein
the sale is to be had, said bond conditioned upon the carrying on of
said sale in accordance with the terms of this act. Upon the violation
of any of the terms of this act in the carrying on of such auction sale,
any person, firm or corporation injured by such violation may, as
prescribed by law, sue and recover upon such bond and for the amount
of the injury or loss sustained by reason of such violation to the amount
of such bond. Upon the rendition of a verdict for the plaintiff under
this act, the license under which the sale was had shall become ipso
facto null and void.

4. That by ten o'clock of each morning during the continuance of
any auction sale under this act, the person, firm or corporation holding
same shall file with the commissioner of the revenue of such county or
city, a complete list of the articles sold at such sale on the day prev-
ious, showing the names and addresses of the purchasers and the true
price received for such article sold, and to such record of sales shall be
attached an affidavit that the same is a true and correct statement of
all the sales of such previous day. Such daily reports, under oath,
must also be filed by said commissioner of the revenue and kept open
for the inspection of the public as are all public records in such office.

5. That it shall be unlawful for any person, firm or corporation
conducting such auction to employ or use at such sale any “by-
bidders,”’ “‘capper,’’ ‘“‘booster,”’ nor shall any person act as ‘“‘by-
bidder,” ‘‘capper,’”’ or “booster,” nor shall the auctioneer at such sale
accept, nor pretend to accept, any false, misleading or fictitious bids
for any article offered for sale, but every sale must be bona-fide and
forcash. The auctioneer at such sale shall recognize no bidder for any
article exposed for sale, unless such bidder, in bidding, shall extend his
arm above his head so as to be plainly seen and identified as such
bidder by those present, and each article sold shall be immediately
and publicly delivered to such successful bidder therefor, and the
amount of the bid then and there publicly paid for such article by the
purchaser.

6. That each article exposed for sale at such auction shall have
attached to it a tag, upon which shall be plainly written or printed in
English, a true statement of its character and quality; if a diamond,
the exact weight and quality of the stone; if any other precious stone,
its true weight and description; if the article be of metal, whether pure
and of what degree of fineness; and if plated, the nature of the plating
and the true nature of the metal covered by said plating; if the article
offered for sale be an imitation of a precious stone, gold or silver
1004 ACTS OF ASSEMBLY. [va.

article, the tag must. plainly show that fact; if apparently of leather,
whether real or imitation leather; if a rug or tapestry, whether do-
mestic or imported, all wool or mixed; the purpose of the above pro-
visions being that each purchaser at such sale shall have full and cor-
rect information of the nature and quality of the article being sold.
Tags giving this information shall remain firmly attached to such
article sold, and be delivered with it to the purchaser, and the facts
stated upon such tag shall constitute a warranty that the article so
sold is what it is thereupon represented to be and not otherwise.
When watches or clocks are so sold, such attached tags shall show the
true name of the manufacturer of such watch or clock, and no parts
or movements, mechanism of other watches or clocks, shall be secretly
substituted for those originally forming such watch or clock, nor shall
any false or misleading names or trademarks be used or substituted in
connection with such watches, clocks, or the works thereof, nor shall
any second-hand works be enclosed in any new watch case or clock
case and sold or offered for sale as new, but all such substitutions shall
be shown upon such tag, and such fact plainly stated by the auctioneer
in offering such article for sale. If any second-hand goods or articles
covered by this act shall be offered for sale at this auction, such fact
shall appear upon said tag attached to the article, and also be publicly
stated by the auctioneer conducting such sale.

7. That if at any auction sales held under this act any person,
firm or corporation or their agents conducting the sale, shall falsely
represent that the articles being offered constitute any bankrupt
stock, trustee, assignee, or fire salvage stock, or other stock sold under
peculiar circumstances making such sale necessary or desirable, or
should they make any false or misleading statement touching the
history or condition of such articles to be sold, all such statements
made by such person, firm, corporation or their agents at such sale,
shall be held and deemed to be warranties and binding upon parties
conducting such sales as such.

8. That no person, firm or corporation shall be relieved or ex-
empted from the requirements of this act by reason of associating
temporarily with any licensed merchant, dealer or general auctioneer,
or by conducting such business in connection with or as a part of the
business of or in the name of any such licensed merchant, dealer or
general auctioneer.

9. That any person, firm or corporation and their agents con-
ducting such sale, who shall violate any of the provisions of this act,
shall, upon conviction, be punished as for a misdemeanor, and that
each and every violation thereof shall constitute a separate and dis-
tinct offense and punishable as such.