HomeMy WebLinkAboutOrdinances - No. 364ORDINANCE NO. 364
AN ORDINARCE REGULATING THE BUSINESS OF DEALING IN USED MOTOR
VEHICLES; DEFINING USED AUTOIdOBILE DEALER AND USD MOTOR VEHICLE ANI)
ESTABLISHING PROCEDURE: FOR PROCUREX'IENT OF PZRMITS To ENGAGE IN SAID BUSINESS;
FIXING THE AMOUNT OF BOND THEREFORE AhFD PROVIDING PENALTIES FOR THE
VIOUTION THEREOF.
THE CITY COUNCIL OF THE CITY OF MDI DOES ORDAIN AS FOLLOW:
Section 1. Definitions: For the purpose of this ordinance, a
used automobile dealer is defined to be any person, firm, or corporation
engaged in, or conducting or managing, or carrying on the business of buying
or taking in trade for the purpose of resale, or offering for sale or
consigning to be sold, or otherwise in dealing in used motor vehicles as
the term nimtor vehicle* is defined in the California Vehicle Code, Section
31, as amended; provided, however, that no insurance company, finance
company, transportation company or other persons coming into possession of
automobiles in the regular course of business, who shall sell such motor
vehicles to licensed used automobile dealers, exclusively, shall be deemed
a used autpobile dealer.
I
Any person, firm, or corporation selling more than two used motor
vehicles in any calendar year shall be deemed a used automobile dealer and
the burden of providing that such seller is not in fact operating as a used
automobile dealer shall be placed upon such sellero
A used motor vehicle is a motor vehicle which has been once sold
or registered for use on the highways, or one that has been operated by any
person for a distance in excess of twice the distance necessary to transport
the same from the place of business of the local distributor of such motor
vehicle to the place of business of the dealer. A motor vehicle used for
demonstration purposes is a used motor vehicle within the meaning of this
ordinancea
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CHIEF OF POLICE - Wherever the Chief of Police is mentioned in this
ordinance, this designation shall include any other administrative officer of
the City of Lodi designated from time to time by ordinance or resolution of
The City Council charged with the duty of issuing permits and/or licenses to
conduct business or follow any occupation in this City.
Section 2. It shall be unlawful for any person to engage in the
business of used automobile dealer, as the same is defined in this ordinance,
without first having received a permit in writing so to do from the Chief of
Police of the City of Lodi. Any such permit shall be effective until revoked.
Any person desiring to file an application for a used car dealer
may do so by filing a verified application upon forms provided for such and
shall, among other things, contain the following:
1. The name, age and residence of the applicant, or if the
applicant be a corporation, or partnership, the names of all
its officers or partners, together with their respective
addresses and all persons interested in said business, except-
ing stockholders of such corporation.
2. The place where applicant intends to carry on said business
and the trade name, if any, under which said business is to be
conducted. If applicant intends to operate under a fictitious
name, proof must be shown of having complied with the provisions
of Section 2466 of the Civil Code relating to the use of
fictitious names.
3. A statement as to whether or not the applicant has ever engaged
in a similar business prior to this application and whether or
not a permit for such has ever been suspended or revoked.
b. A statement that the applicant is of good moral character and
supporting evidence, or at least three references, to give proof
of such statemento
Together with such other data as may be required by the Chief of
police.
retained as compensation for the investigation and publication of the notice
herein provided for.
Such application shall be accompanied by a fee of $125.00 to be
That upon receipt of the application and the fee provided therefor,
the Chief of Police shall cause notice of such application to be published
once a week for two successive weeks in the official newspaper of the City
prior to the time before which said application may be approved, and that
such notice shall be substantially in the following form, to wit:
"NOTICE OF APPLICATION FOR PERMIT AS USED CAR DEALER
Notice is hereby given that
application to the Chief of Police of the City of Lodi for
a permit to do business as a used car dealer in the City of
Lodi.
to why such a permit should not be granted to the applicant
are notified to present such reasons in writing to the Chief
has made
All persons having any knowledge or information as
day of J19 J of Police on or before the
the date on which said matter will be determined.
particulars concerning this matter may be obtained from the
application on file with the Chief of Police.
Further
Dated this day of , 19
.................................... 0.
Chief of Police of the City of Lodi.1'
After receipt of an application for a used car dealerts license,
the Chief of Police shall cause notice thereof to be published as above
provided and shall investigate the character and the business of the appli-
cant, the location at which such applicant proposes to engage in business
as specified in said application, the character of the applicant and his
reasons for engaging in said business, and shall, after the expiration of
90 days, endorse his approval or disapproval on said application, and if
approved, said application shall be presented to the City Clerk, together
with a permit, who shall issue a license to the applicant.
rl
The Chief of police may refer any such application to the City
Council which shall hear such application at its next regular meeting, and
which may continue such hearing from time to the, and which may order the
Chief of Police to grant or deny such application.
Ten days after the filing of such application, and upon the payment
of such application fee, and filing of such bond, and payment of the general
license fee for the period of the balance of the then current year, the Chief
of Police may grant to the applicant a temporary permit to operate as a used
car dealer, which temporary permit may be revoked at any time by the Chief
of Police, and which temporary permit shall terminate immediately and
automatically upon the granting or denial of such application.
In no event shall any part of the application fee or license fee
be returned to the applicant,
That no permit, other than those hereinabove or hereinafter provided
for, shall be granted by the Chief of Police prior to the expiration of 90
days after the filing of an application; provided, however, that should the
Chief of Police fail or refuse to act upon said application after the
expiration of 100 days from the date of the filing of said application, then,
and in that event, said applicant may deem the same to have been denied and
appeal to the City Council for a hearing upon said applicationo
It is provided, however, that any person, firm, or corporation
having a license in this City at the present time as an automobile dealer
or any firm, person, or corporation who now has or may hereafter obtain a
franchise or agency in Lodi for the sale of new automobiles or new trucks
from the manufacturers of said automobiles or trucks, may be issued a permit
under this Section immediately upon filing the application herein specified,
paying the regular license fee as specified in the General License Ordinance
and filing the bond provided for in Section 4 of this ordinance,,
Section 3, Every used Automobile DeaXer shall pay to the City of
Lodi a license fee as specified in the General License Ordinance,
Section 4. If the Chief of Police approves of the application he
shall issue a permit to the applicant upon his filing a bond executed to the
City of Lodi by applicant and a surety corporation duly authorized so to do,
to be approved by the City Attorney, and no license or permit shall be
granted to any person until a bond has been given in form as provided in this
Section.
be five thousand dollars ($s,OOO.OO), and must be conditioned to be paid to
Said bond must be joint and several and the penalty thereof must
the said City of Lodi or any person, firm, or corporation for any direct
loss suffered by dishonesty on the part of the principal in the substitution
of a motor vehicle other than the one selected by the purchaser, failure
through dishonesty to deliver a clear title to those legally entitled thereto,
for any misappropriation of moneys or property belonging to a purchaser
being made in payment of a motor vehicle sold by the principal, for any loss
due to an alteration of a motor vehicle sold on the part of the! principal SQ
as to deceive the purchaser as to the year model of any motor vehicle sold.
Said bond shall not be void upon the first recovery but may be sued and
recovered upon from time to time by any person, firm or corporation aggrieved,
until the whole penalty is exhausted.
The aggregate liability of the surety for any and all claims which
may arise under such bond shall in no event exceed the amount of the penalty
of such bond, regardless as to the length of time it shall remain in force
or the number of renewal licenses issued thereunder,,
corporation who sustains an injury covered by this bond may, in addition to
any other remedy that he may have, bring an action in his own name upon the
bond for the recovery of any damages sustained by him; provided however, that
no such action may be brought and maintained after the expiration of one (1)
year from and after the time of the alleged dishonest act complained of may
have occurred.
Any person, firm or
Section 5. Every used automobile dealer must have, in addition to
his City License, a State License, and the number assigned by the Motor
Vehicle Department of the State of California to such dealer under his
State License, must be posted and filed with the Chief of Police prior to
issuance of a permit, and in the event the State Motor Vehicle Department
refuses to issue to any dealer a State License, the'chief of Police must
revoke and refuse to issue the City permit, it being mandatory that a State
dealer's license is and will be necessary to retain a City permit.
Section 6. Anyone who now holds, or may hereafter hold, a permit
as a used automobile dealer, and who discontinues business for a period
exceeding ninety (90) days, will automatically relinquish all right or
interest in said permit and the same shall automatically be revoked by the
Chief of Police.
Section 7. The permit of each person, firm or corporation licensed
as a used automobile dealer under the provisions of this ordinance shall be
prominently displayed in the place of business of such dealer. There must
also be displayed in a conspicuous place on the front building line of the
places of business, the name of the firm, person, or corporation to whom the
permit has been issued, such name to be in letters not less than six (6)
inches in height, and for the same to be legible for fifty (SO) feet.
Section 8. Every person, firm, or corporation operating under the
provisions of this ordinance shall be held strictly responsible for the
conduct of his, their, or its employees in so far as the sales of used
automobiles or motor vehicles are concerned; it shall be his, their or its
duty to see that no used automobile or motor vehicle is sold by any person
or persons in or upon his, their or its premises or location, or locations,
unless such person or persons have a permit as provided for in this ordinance,
or is an employee of a person holding such permit,
Any violation or violations of this section shall be deemed
sufficient grounds to suspend or revoke the permit of any person, firm or
corporation so operating or allowing or permitting anyone to sell used cars
from their premises, unless the person so selling was either the agent or
employee of the person holding a permit, or unless said person, or persons,
so selling has a permit of his, their or its own; and it shall be mandatory
upon any permittee under this ordinance to determine whether or not the
person, or persons, so allowed or permitted to sell cars, from any used
automobile lot or premises operated by the said permittee, has an unrevoked
permit to engage in the used automobile business, or is an employee of such
permittee.
Section 9. It shall be unlawful for any person, firm or corporation
to engage in, conduct, manage or carry on the business of used automobile
dealer within the City of Lodi, who, or which, does not first receive therefor
a permit as herein provided and who, or which, does not have a fixed and
determined place of business for the conduct of such business of used
automobile dealer, at which place of business, he, they or it displays the
vehicles offered for sale.
Section 10: In the event that any person, firm or corporation
holding a permit as a used automobile dealer, as herein defined, shall violate,
or cause or permit to be violated, any provisions of any other ordinance, or
of any law relating to orregulating such automobile business or any law
regulating the business of dealer in motor vehicles to which such used
automobile dealer shall be subject, or shall conduct or carry on such business
in an unlawful manner, shall cause or permit such business so to be conducted,
or carried on, or shall fail to pay within thirty (30) days after the same
shall have become final, any judgment entered against him arising out of the
misrepresentation of any motor vehicle, or out of any fraud committed in
connection with the sale of any motor vehicle, or shall be guilty of any
other conduct, aether the same or of a different character than hereinabove
specified, which constitutes fraud or dishonest dealing, it shall be the
duty of the Chief of Police, in addition to the other penalties provided by
this ordinance, to suspend or revoke the permit issued for conducting or
carrying on such business.
issued a permit under the provisions of this ordinance and the same shall be
revoked by said Chief of Police, no permit shall be granted to such person,
firm or corporation to conduct or carry on such business within six (6)
In the event any person, firm or corporation is
months after date of such revocation.
revoked until a hearing shall have been had by the Chief of Police relating
No permit shall be suspended or
to such suspension or revocation.
writing to the permittee and served at least five (5) days prior to the date
of the hearing thereon; such service to be upon the holder of such permit,
or his manager, or his agent, which notice shall state the ground of
complaint against the holder of such permit, or against the business carried
on by him, them or it, and also shall state the time when and the place
where such hearing will be held.
holder of such permit by delivering the sme to such person, firm, or corpora-
tion, the manager or agent thereof, or to any person in charge of the place
of business or such holder.
notice shall be served at his,their, or its place of residence. In the
event the holder of such permit cannot be found and the service of such
notice cannot be made upon him, them or it, in the manner herein provided,
then a copy of such notice shall be mailed, postage fully prepaid, addressed
to each holder, or such permittee, at his, their or its place of business or
Notice of such hearing shall be given in
Said notice shall be served upon the
If such holder has no place of business, said
residence, as set forth on said permit, at least five (5) days prior to the
date of such hearing.
Police shall have power to suspend or revoke the licenses of a corporation
as to any officer acting under its license, and the license of a co-partnership
Under the provisions of this section, the Chief of
as to any member acting under its license without revoking the license of
such corporation or such co-partnership.
Section 11. It shall be unlawful for any used automobile dealer to
advertise in any newspaper or through any other medium that he, they or it
has for sale any automobile which automobile is not actually for sale at the
premises at the time the advertisement is inserted in the newspaper or medium,
and it shall be unlawful for any person, firm or corporation not to discontinue
the advertisement of any automobile immediately upon the selling of sameo
Within forty-eight (48) horns after any automobile that has been advertised
for sale has been sold or withdrawn from sale, it shall be mandatory for the
used automobile dealer to request withdrawal of any advertisement relative
to such automobile from any newspaper or any other medium in which he, they,
or it may have been advertiseing for the sale of such automobile prior to
actual saleo
Section 12. It shall be unla.dul for any used automobile dealer
to sell any used automobile or motor vehicle from any place other than the
fixed or established place of business, for which the permit has been
granted to him, them or it, to conduct the business of selling used automobiles
or motor vehicles--except that such sales may be made by a licensed used
automobile dealer from the registered place of business of any used automobile
dealer holding a permit hereundere
Section 13. Every used automobile dealer, person, firm, or
corporation, who, or which, engages in, conducts, manages or carries on the
business of used automobile dealer within the City of Lodi, who, or which,
does not have a fixed and determined place of business for the conduct of
such business of used automobile dealer at which place of business he, they
or it, display the vehicles offered for sale, or who violates any other
provisions of this ordinance, shall be deemed guilty of a misdemeanor, and,
upon conviction thereof, shall be punished by a fine of not to exceed Five
Hundred Dollars ($500.,00), or by imprisonment in the City or County Jail
for not more than six (6) months, or by both such fine and imprisonment,
of if a corporation, be punished by a fine of not to exceed One Thousand
Dollars ($1,000,00).
Section lk That any and all ordinances, or parts thereof, in
conflict with the provisions of this ordinance are hereby repealed; but only
such parts of said ordinances as may be in conflict herewitho
Section 15. If any section, subsection, sentence, clause or phrase
of this ordinance is for any reason held to be invalid or unconstitutional by
the decision of any Court of competent jurisdiction, such decision shall not
affect the validity of the remaining portions of the ordinance.
Council of the City of Lodi declares that it would have passed this ordinance
and each section, subsection, clause, sentence and phrase hereof, irrespective
of the fact that any one or more other sections, subsections, sentences,
clauses or phrases be declared invalid or unconstitutionalo
The City
Section 16. This ordinance shall be known and referred to as the
"USED CAR DEAIXEtS' 9RDINANCE.n
I hereby approve the foregoing Ordinance N
of February, 1948.
STATE OF CALIFORNIA,
COUNTY OF SAN JOAQUIN,
CITY OF LODI, SS a
I. J. F. BLAKELY, City Clerk of the City
that the foregoing Ordinance No, 364 was regul
adjourned regular meeting of the City Council o
11th day of February, 1948 and was thereafter, on
Februarg, 1948, passed, adopted and ordered to pr
vote:
AYES: Councilmen,
NOES: Councilmen, NOME
ABSENT: Councihm,
I further certify that Ordinance No, 364
by the Mayor on the date of its passage and
Februarsr 18. 1948,