Auction dispute

LAA

Well-known Member
There's a guy trying to get out of a sale because he says his own auctioneer is not licensed in his state and therefore the sale is null and void. A
piece of equipment was bought in an online auction, it went fairly cheap, the real reason is due to the time of year, the equipment in question
would have done better selling in the fall of the year rather than spring/summer. Anyway, the machine owner never said anything about wanting
to cancel the sale before payment and the money was wired, when attempt to pick up, he would not answer phone calls, after contacting the
auctioneer we got hold of the owner, that is when he said he wanted to cancel the sale because the auctioneer that he engaged to sell his item
was not licensed in his state. While it is true that the item at auction was located in a different state than the auctioneers business the online
listing clearly states "seller information" and gives an address which includes a state, then under "machine location" it gives the town and state
where the machine is physically located. The owner of the machine sent me a link to his state auction law which says if the auction "originates"
in his state then the auctioneer must be licensed in that state, pretty vague in my opinion. I will let him keep the item and take my money back
plus wiring fees because it is definitely not worth the time and trouble to argue but I would still like to know if there is any merit to his claim for
future reference.
 
It would seem to be a straightforward matter of contract law: Is the sales contract between you and the auctioneer, or between you and the seller? Assuming it's between you and the seller, whether or not his auctioneer is licensed is irrelevant.

There's an interesting discussion of auction contract law in this blog post: <a href="https://mikebrandlyauctioneer.wordpress.com/2009/12/29/the-three-3-types-of-auction-contracts/">https://mikebrandlyauctioneer.wordpress.com/2009/12/29/the-three-3-types-of-auction-contracts/</a> "When auctioneers bid call, they enter into, typically, oral contracts with the high bidder(s) and then, finally upon ?Sold!? they enter into a different contract with the ultimate high bidder ? the buyer. These contracts are actually between the seller and the high bidder, and then seller and buyer; the auctioneer acts as an agent for the seller."

If, indeed, the auctioneer is unlicensed, the seller has a valid claim that the auctioneer misrepresented himself. He could sue the auctioneer and maybe get his commission back, but that wouldn't invalidate any of the actual sales, since they are all contracts between buyer and seller. For example, if you sold a house through a real estate agent and later found the agent to be unlicensed, the sale is still valid because it's a contract between you and the buyer. The real estate agent is not a party to the actual sales contract.

Also, if the buyer actually allowed the other buyers at the auction to take delivery of their purchases, that would wreck his case that the auction wasn't done legally and all sales should be invalidated. He can't pick and choose which sales to renege on; it's all or nothing.
 
The auction did NOT originate in his state, the location of the equipment was in his state. He just didn't want to sell it that cheap and didn't put a reserve on it prior to the auction. It sold and you have every legal right to it. But as you say it isn't worth the hassle to fight it. Just my thoughts an old Auctioneer in the state of Ohio Keith Molden
 
You're right every state has a different set of auction rules and regulations.I go to auctions regularly in 5 different states and all have some difference in the laws on auctions.
In the end its usually not worth the hassle to get involved in a dispute like the one described,even though in some states once the buyer gives their number and the clerk records it its treated
like a legal contract and both sides are bound to deliver their end of the deal.I've been to auctions in NC on large items the buyer was required to sign the clerks ticket they
wrote down the selling price on to verify the sale.
 
If I am understanding you correctly, is the following interpretation accurate? It really does not matter where the physical location of the equipment happens to be because the auction "originates" in the place where the listing is made, the bids are accepted and the money is paid after purchase? I paid the actual auctioneer in his home state, he then deducted his commission and paid the original owner in that guys home state. Thanks.
 
Good information in the link, it does make sense that the sale/contract is between the actual buyer and actual owner/seller. When this first came up I asked the guy if he would have felt the same way about it if I had been the one trying to weasel out of the purchase by claiming his Auctioneer was not qualified, he could not answer.
 
Sellers remorse. It's funny when you see guys get upset this time of year when their snow blower sells for nothing and for some reason they're surprised....
 
Many states have surprisingly similar rules when it comes to online, timed auctions and many don't regulate those auctions at all.
 
The law will not touch this type of dispute, they will simply tell you that it is a civil matter,
and they are right.
 
Seems a well worded letter from a competent attorney to the seller and the auctioneer could probably clear this up real quick. Whether the auctioneer is right or wrong the auctioneer profession isn't to thrilled about folks that list stuff and don't follow through with the results of the sale. The auctioneer probably got their commission, but they are also astute enough to realize if it happens to many times folks are going to stop using internet auctions, I mean why bother if the seller gets to decide after the fact if the item was really sold?
 
I agree he can't pick and choose. If anyone had picked up items from the auction then he can't stop you from recovering it. In Texas you can file for a Property Ownership Determination Hearing. Where you file depends on the value of the item, mostly in J.P. court. A good friend is a constable here; he serves the summons for them all the time. It cost about $90 to file in J.P. court.
My .02
 

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