Each applicant for a license to conduct an auction under this chapter shall post with the city clerk, prior to the issuance of such license, a cash, or surety company, or other bond satisfactory to the city clerk, in the sum of five thousand dollars, conditioned upon observance by the applicant of all the provisions of this chapter and upon the truth of all of the representations made in connection with the application for such license and in the course of any auction sale, and as a guarantee that the purchase price of any article purchased will be returned to any purchaser upon the proof that any false or misleading statement or representation has been made concerning any personal property sold or offered for sale at any auction sale, or in such auction place of business. (Prior code § 3-7)