The Law of Auctions – What No One Tells You

For those unfamiliar with the term, an auction is a public sale with goods sold to a large member of the public assembled together in a single place to participate in the auction. The bid is the price that the auctioneers are offering for the goods, and the people who have assembled to attempt to buy the goods are the bidders. The goods are usually sold to the highest bidder in the crowd. Bidding is a common practice, and people enjoy participating because of the higher chances of paying less for something more valuable.

As a result, you will often see auctions for horses at a horse property or equestrian estate. It’s so popular, but it is worth noting that despite its popularity, there are still many things people still need to learn about auctions. Auction sales are covered under the Sale of Goods Act, and many laws exist.

Sale completion

The sale in an auction only ends once the auctioneer states that it is complete or shows through actions like a falling hammer or other customary actions. You may likely see these at the horse farm you are at. You can continue bidding for the sale, and there is no time limit until the auctioneer says so. No announcement of competition indicates that prospective buyers can continue to bid on the item.

Bidder’s Agreement

When you register to bid for a horse, give the auction house your personal details and your bidder number. Auction houses do this so they can jot down your number when you win a bid and can continue to the next item.

Conditions of a bid have to be made clear beforehand; otherwise, you’re not bound by the terms. Typically conditions are set out in an agreement called the bidder’s agreement. We suggest you read all the terms carefully before signing.

Faulty goods

Under the circumstances upon receiving a faulted item, you have certain rights and claims. These claims come into play when you buy goods for personal or household use, and it is stated in the terms that the seller is a professional trader. This way, you are protected by the “Consumer Guarantees Act.” The Act requires that the goods being sold have to be of acceptable quality. Acceptable quality is tested based on reasonable expectations from a consumer in terms of price paid, good’s condition, age, other additional information, and the nature of the supplier.

However, there are no federal laws that typically address horse auctions. There are some vague laws, but you will find that investigators may not take action even when sick horses have been found at auctions. Therefore, keep in mind that you must ensure the horse’s health when bidding. Remember that auctioneers are covered by the Fair Trading Act, meaning they cannot mislead you about the goods they sell during the auction process.

Not notified

The seller must notify the auction house to claim his right to bid. If he has yet to do so, he cannot show up to the auction to bid on his own item or send another person on his behalf. This will be considered unlawful, and a sale that goes against the rule can be treated as fraudulent by a buyer. The auctioneers are not allowed to accept any bids from the seller or anyone else who’s bidding on the seller’s behalf. This can also be challenged as fraudulent.

Inspection day

Auction houses will hold inspection days so you can visit the horse farm and inspect the horse before bidding. The auction house may provide catalogs with details of the goods they offer. You are even permitted to get it checked by your own trusted experts by bringing them to the auction and having them inspect the horse’s health and quality.

Protection as a seller

You will sign an agreement covering the sale details before putting up your item for auction. Some standard clauses are commission charged and other costs and assurance you need to provide that you are legally entitled to sell the goods.

The auctioneer is bound by the Fair Trading Act, which means they cannot attempt to mislead or misdirect you, and their services are covered by the Consumer Guarantees Act, which means they have to provide services with care and can be held liable for the cost damages while the item is in the auctioneer’s care.

In conclusion

An auction for a horse is only complete once the auctioneer states it or shows it through established actions. If a bidder is not informed about the terms beforehand, they are not bound by any deal or auction terms. Under specific terms, you can claim rights over receiving a sick horse or being misled. You can also challenge the auctioneer when the seller is bidding for their own item, which has yet to be clarified beforehand. Remember that you can inspect the items before bidding on them, so try visiting the auction house on an inspection day set by the auction house. As stated in this article, you also have rights as a seller.

We hope this article proved insightful to you.

References

You can learn more about homes-related auctions through real estate agents Albany CA.

Fair Trading Act: https://www.consumer.org.nz/articles/fair-trading-act

Consumer Guarantees Act:

https://www.consumer.org.nz/articles/consumer-guarantees-act