Brief Summary
In Detroit the auctioneer bond has a very specific job. If a buyer returns jewelry, a watch, gold, silver or optical goods within five days because it was not what you represented, and the purchase price is not refunded, Detroit City Code makes your bondsmen liable for it. The $1,000 bond is what the city needs on file before it will issue the license.
The City of Detroit requires a $1,000 surety bond from auctioneers, with the City of Detroit as obligee. Section 40-1-4 of the Detroit City Code gives buyers of watches, clocks, jewelry, precious stones, gold, silver and optical goods at auction five days to return items that were not of the quality represented, and makes the auctioneer's bondsmen liable for refunding the price. Under Section 28-1-14 a city business license issues only after proof of any required surety bond. Confirm the current bond form and filing steps with the city before the bond is issued.
We can help with all Michigan bonds!
Detailed Information About the Michigan Auctioneer ($1,000) Bond:
What the bond actually covers
Chapter 40, Article I of the Detroit City Code governs auctions and auctioneers. Section 40-1-4 gives a purchaser at an auction sale of any watch, clock, jewelry, precious stones, gold or gold-plated ware, silver or silver-plated ware, or optical goods the right to return the item to the auctioneer within five days of the sale if it is not of the quality represented. The auctioneer must refund the purchase price, and the code states that the bondsmen of such auctioneer shall be liable for the return to the purchaser of the purchase price.
That is why the bond matters even at $1,000. A buyer who is owed a refund can look to the surety, and the surety will then seek repayment from the auctioneer.
Rules that come with it
Section 40-1-5 requires the auctioneer to post a copy of Section 40-1-4 in a conspicuous place. The City Clerk prepares the posting at no cost. Section 40-1-3 restricts public auction sales of watches, clocks, jewelry, precious metals and similar goods in the city, with limited exceptions. Sections 40-1-6 through 40-1-9 prohibit boosting, capping, substitution of articles and false representations about goods, including claims that goods are bankrupt stock or saved from fire.
Getting the license issued
Chapter 28, Article I covers city business licenses. Section 28-1-14 says a license is issued after the required departmental approvals and proof of any insurance or surety bond the code requires for that business, and that no license is issued or renewed for an applicant who owes the city assessments, fees or taxes. Section 28-1-9 sets a one year term for a business license unless the code or City Council provides otherwise.
Before you buy
The bond names the City of Detroit as obligee in the amount of $1,000. Confirm the current bond form and filing steps with the city's Business License Center in the Buildings, Safety Engineering, and Environmental Department before the bond is issued, so the form you file is the one the city expects.
+1 815-826-6324 (815-8-BondAI) 
phil@AmericasSuretyBonds.com
