General Information About Auctions:

·  Before bidding, find out what methods of payment the business accepts. Make sure you read, and be certain that you understand the terms and conditions of sale and any special conditions that apply to certain goods.

·  Auction sales business must tell the public before the sale starts that some of the goods are subject to a reserve bid.

·  An employee of an auction sales business conducting the auction is allowed to bid on items but only if he/she intends to buy those items they have bid on.

·  An auctioneer must announce the way in which the sale of an item is completed. It could be by the fall of a hammer or the word  “SOLD”.

·  Once the auctioneer indicates the item is sold, you are responsible to pay for the item. Bid carefully. Normally no refunds or exchanges are allowed at an auction. Under contract law, the sales agreement is binding on both parties.

·  Once an unreserved item has been offered for sale and a bid has been made, the auctioneer cannot withdraw that item from the sale.

·  Check to see if you will be charged a “Buyer’s Premium” as part of the total cost of the item you purchased.

·  You have to pay taxes on most auctioned items unless you have a valid state tax exempt certificate on file with the auction company.

·  When you consign your goods for sale by an auction company you are entering into a contractual agreement. The business agrees to take your goods and sell them; you agree to pay for the service. Fees may vary between auction sales businesses.

·  If you want to get an amount close to the price you want for your goods you can talk to the auction sales business about setting a reserve bid.

·  Unless your goods are offered as reserve bid items, a minimum selling price cannot be guaranteed no matter what you are promised. The goods must be sold to the highest bidder once bidding has begun.

·  It is unlawful for you, a friend, family member or your agent to bid on your goods in order to drive the price up.

·  All terms and conditions of your consignment agreement should be in writing. Include details of pricing arrangements; the commission rate; the administration charges for things like storage, insurance, cleaning and repair. Ask if you will be charged a fee for goods that do not sell. Keep a description of your consigned goods and a copy of the contract for future reference.

·  When your goods are sold, the auction sales business must deposit all money received into a trust account. Within 21 days of the sale, the business must pay you the selling price less the agreed upon costs and any amounts owed to lien holders. The business must send you and any lien holders an itemized statement showing the amount received for the goods.

With this information in-hand and with some experience at auctions, you will soon be comfortable buying and selling merchandise at auctions. GOOD LUCK!