05-23-1938 VCM Special
VILLAGE OF ELK RIVER COUNCIL MEETING
May 23, 1938
The special meeting of the Village Council was held Monday May 23, 1938 at 7:30 o’clock P.M.
Members present:
Frank Nickerson, Pres.; G.A. Bailey, Wm Patenaude, Geo Cornelius, Trustees;
Wm H Greupner, Clerk.
The purpose of this meeting was to look over the ordinance in regards to second hand automobile
dealers. A motion was made by Wm Patenaude seconded by G.A. Bailey to pass the following
ordinance.
Ordinance No. 38
An ordinance regulating and licensing dealers in second hand automobiles within the Village of Elk
River and providing penalties for the violation of the provisions thereof.
The Council of the Village of Elk River do ordain.
Section 1 – Definitions – The following terms are hereby defined as used in this ordinance
(a) “Dealer in Second-hand Automobiles” is any person who is engaged in the business for
buying, selling, trading or bargaining for, either as principal or agent of second-hand
automobiles within said Village, and who is not a dealer in new automobiles, having an
established place of business in the Village of Elk River. Wherein or wherefrom he buys,
sells, or disposes of second hand automobiles only as in incident to the business of buying,
selling and disposing of new automobiles.
(b) “Second hand Automobiles” is any motor vehicle or motor vehicles trailers which has been
previously owned by other than a manufacturer of, or a dealer in new automobiles and used
upon the highways of the State of Minnesota or elsewhere, and thereafter offered for sale.
(c) “Person” The term “persons” shall include also any individual, corporation, partnership
syndicate, pool or other organization or combination of persons whatsoever
(d) “Used Car Lot” Any lot, piece, or parcel of ground not under roof upon which are stored or
located second hand automobiles held offered or to be offered for sales, trade or exchange,
is a used car lot.
Section 2 – Licenses Required. No dealer in second hand automobiles shall sell or offer for sale in
any manner any second hand automobile or attempt to do any such business in this village, without
first having obtained a license from the Village Council to do so.
Section 3. Application for license. Application for such license shall be made to the Village Council
and shall show: (1) the name of the applicant and all persons associated with him in the business or
having any interest therein: (2) the place where such business is to be conducted; (3) the present
place of business of the applicant: (4) the places of residence of and the business engaged in, by the
applicant for the five years last past; (5) the name of two or more responsible persons, who are
residents of Minnesota, having knowledge of the applicants business and whereabouts during said
five years, and whose favorable recommendations as to the integrity and business ability of the
applicant shall accompany said application; (6) whether or not the applicant shall or any person
associated with him or having any interest in his business has been convicted of a felony or gross
misdemeanor, and if so, for what crime, the date of conviction, and the court wherein convicted.
Blank applications shall be issued by the Village Clerk on payment of ($1.00) One dollar, which
amount shall be credited upon the license fee, if the license be granted. Every application shall be
accompanied by a report of the Village Marshall with respect to the applicant’s morals. Character
and a report of the Village Engineer who shall inspect the proposed location of such business. Such
applications shall be presented to the Village Council at the next regular meeting thereof following
the investigations and reports of the Village Marshall and Village Engineer so required. The license
shall be issued by the Village Clerk upon the approval of the Village Council of said Village, upon
the payment of the fee hereinafter prescribed.
Section 4. License Fees. Fees for licenses under this ordinance shall be: per year $500.00.
Section 5. Bond. Each applicant for all license here-under shall, before the insurance of said license,
file with the Village Clerk a good and sufficient bond upon a form to be approved by the Village
Attorney. Executed by the applicant as principal and by a surety company authorized to do business
within the State of Minnesota as surety. Said bond shall the conditioned for a used car dealer license,
for the benefit of all persons dealing with such licensees in his, its or their pursuit and operation of
business under such license, and particularly to protect such persons against fraud,
misrepresentation, and any other damage. Such bonds shall be in the amount of Five Thousand
Dollars ($5000.00)
Section 6. Duration of License. Each license shall be valid only for the period specified therein, and
no licenses shall be extended beyond 30” day of each year.
Section – License. Not transferable. Licenses here-under shall be nontransferable. No refunds shall
be made on unused portions of licenses except upon resolution of the Village Council.
Section 8. License to be posted. All licenses issued hereunder shall be posted in the place of business
of the licensee and shall be shown to any officer or citizen who demands to see the same.
Section 9. Licensee Revocable. License issued hereunder may for good cause be revoked, without
notice, by the Village Council whenever in its opinion the good order of the Village or the welfare of
its citizens requires it provided that in the event of such revocation the licensee shall be entitled to a
hearing before the Village Council if such hearing is demanded by him in writing and presented to
the Village Clerk within ten days after the date of the revocation of said license. Such hearing
thereon shall be conducted at the following regular meeting of the Village Council, which shall be
the sole judge of whether or not the revocation shall stand.
Section 10. Condition of Sales. No dealer in second hand automobiles shall be permitted to see or
offer for sale, or offer for trade or exchange in any manner any second hand motor vehicle
consigned to him by another dealer, partner, or any source outside of the Village of Elk River, nor
shall any used car dealer offer for sale or exchange any second hand vehicle which has not been
regularly registered within the State of Minnesota for at least 30 days prior to the date it is offered
for sale or exchange within the limits of the Village of Elk River.
Section 11. Guards and Fences. Every used car lot shall be enclosed with a substantial fence of
wood or heavy wire at least six feet in height and so constructed as to securely enclose such lot by
means of suitable gates and locks thereon. Such fence shall be inspected and if found to be
substantial and adequate, approved by the Village Engineer.
Section 12. Advertising. No licensee shall use advertising of any nature which is not accurate in all of
its material, particulars or which misrepresents merchandise including its age, use, quality, origin or
credit terms or values and no licensee shall use advertising or selling methods which tend to or
actually deceives or misleads the public.
Section 13. Reports. Each licensee hereunder shall make and file with the Village Marshall of said
Village within thirty six hours after bringing any second hand automobile or used car within the
Village of Elk River for the sale or exchange a verified report giving the license, motor and serial
number the make and model of such used car or cars, the name and residence of the person from
whom the same was acquired and the place wherein the same was acquired by the licensee. Upon
making any sale, exchange, or disposition of any such second hand automobile or used car, the
licensee shall within the period of thirty-six hours thereafter, make written verified report to said
Village Marshall covering such sale or disposition thereof setting forth the full description of said
used car or cars as herein required with respect to the bringing in of second hand automobiles or
used cars.
Section 14. The terms and requirements of this ordinance shall extend to any and all dealers in
second hand motor vehicles, as herein defined, except as otherwise provided in Section 17 hereof
even though they or either of them secure of obtain a dealership or agency for the handling, sale or
exchange of new motor vehicles, until the sale offering for sale or halting of said new motor vehicles
in said Village of Elk River shall have been continuously conducted by said individual or individuals
for the period of ninety days after acquisition of said dealership or agency for the handling of new
motor vehicles; provided that second hand automobiles or motor vehicles actually taken and
acquired in connection with and as a result of the sale or disposition of said new car or motor
vehicle, may be sold, exchanged or disposed of by said new car dealer or agent within said period of
ninety days.
Section 15. Penalty. Any person violating any provision hereof shall be quality of a misdemeanor
punishable by a fine of not less than twenty-five ($25.00) dollars and not more than one hundred
($100.00) dollars or imprisonment in the village jail for not less than ten (10) days and not more than
ninety (90) days.
Section 16. Provisions Separable. If any foregoing section or provision of this ordinance shall be
adjusted unconstitutional or invalid for any reason such adjudication shall not effect the validity of
this ordinance as a whole or if any section or provision thereof which is not specifically adjudged
unconstitutional or invalid.
Section 17. The provisions of this ordinance shall not apply to any individual, partnership or
corporation who or which as heretofore been, or shall hereafter have been continuously engaged in
the business of buying, selling, trading, or dealing in second hand or used automobiles within the
Village of Elk River, Minnesota, for a period of three or more years, whether duly licensed or not,
and has during such period maintained an established place of business for such purpose and no
change in the membership of a partnership not subject to this ordinance by reasons of this section
affected either by the withdrawal or the admission of members, shall subject the surviving member
or new partnership carrying on said business to the provision hereof.
Section 18. This ordinance shall take effect and be in force from and after its passage and
publication
Passed May 23, 1938
Attest Frank M Nickerson, Pres
Wm H Greupner, Clerk
No further business meeting adjourned.
Wm. H. Greupner Fr. M Nickerson
Clerk Pres